Rice Factories (Amendment) Act 2009 critical to the industry

Aug 17, 2010 Letters

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Dear Editor
Guyana’s rice industry is one the pillars of its economy. The country exports as much as 70% of its rice produce, which gives us the potential to earn up to US$100 milion annually from exports.
This contributes significantly to Guyana’s GDP and to the alleviation of poverty in Guyana. The rice industry also secures employment for over 150,000 persons directly and indirectly, and uses approximately 200,000 acres of the country’s agricultural lands. In Guyana many rice producers are small subsistence farmers who depend entirely on rice farming for a livelihood.
The self-regulating nature of the free market system is sometimes very unstable. And realising the significance of the rice industry to Guyana’s economy, the government decided to intervene to better manage and regulate the free market system in which the rice industry existed. Consequently, amendments were made to the second and sixth schedule of the Principle Rice Factories (Amendment) Act 2009, passed by the National Assembly on 22nd October, 2009.
With this bill, the Government aims to reduce the risk of instability in the industry and better protect farmers, while simultaneously maintaining the thriving nature of the rice industry. This was attained as a result of heavy intervention and support by Government, through production interventions, better water management, infrastructural improvements and adjusting rice policies and incentives, as well as the removal of VAT.
The President also allotted $400 billion to support all rice producers. New export markets in Cuba, Venezuela, Haiti, and Colombia, were identified and secured.
Through the Guyana Rice Development Board (GRDB), the government provides legal services to farmers for payments.
Ensuring that farmers are always paid is another critical objective of this bill. Before the bill was enacted, farmers had to wait up to 120 days for payments.
This means that they were sometimes still owed five percent of the total paddy purchase.
The amendments made to the bill now ensure that for every transaction, farmers must be completely paid, that is, 100% of every paddy purchased.
The Government also developed, along with the support of the IDB and all key stakeholders, a strategic plan that runs for 10 years up to 2011, to aid this development, and to counteract the challenges encountered by the industry. Chief among these challenges are the global decline in the price of rice, in some cases by 20% in our export markets.
The rice industry continues to play a critical role in Guyana’s economic development, and as such, makes it necessary for Government to work with farmers and the sectors and service providers to ensure the promotion and the enhancement of the industry.
The Rice Factories (Amendment) Act 2009 makes this possible. The issue of farmers being owed over $300 million by the Mahaicony Rice Limited (MRL), as reported in the press, is another clear example of the urgency and importance of the Rice Factories (Amendment) Act 2009.
This bill was amended specifically to prevent and where necessary, resolve such issues.
Nigel Green
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The Marriott Hotel project and taxpayers’ money

Dear Editor,
The Private Sector Commission (PSC), along with its head seem to be devoid of basic economic principles by supporting the Marriott hotel project.
I am inclined to believe that they are more afraid of Doctor Champion than to speak the truth and be rational.
If the members of the PSC who are supporting the Marriott project believe that Marriott is a gold mine opportunity, they should invest their own money in the project and not enter into a partnership with the government using tax payers’ money. Mr. Robert Badal and people like myself have no objection of Marriott, Hilton or Sheraton coming to Guyana but let them use their own private capital and not taxpayers’ money. This is a fact that many people are missing or seem not to understand.
Also the same tax free concessions that would be granted to these foreigners should be granted to existing hotel operators to upgrade their facilities.
The government does not want to name the private partners in this Marriott project because they are the same individuals who lost out in the bidding for the Pegasus.
This is no economic venture but a venture of revenge against the present owner of the Pegasus.
Only recently some of these members of the PSC had complained that the GDF should not be competing with private local aircraft operators in the hinterland transportation business, as it was not fair for government to be involved in business.
The head of the PSC should remember when his organisation was objecting vigorously when a Venezuelan beer bottling plant was to be established in Guyana.
The PSC seems to consist of self serving and selfish “businessmen” who are only concerned about themselves and not the country.
The entire population of Guyana should come out in praise of Robert Badal, the Chief Executive Officer of the Pegasus Hotel for his bravery and his stance against the government for using taxpayers’ money to build a Marriott Hotel that is doomed for failure.
The blind mice opposition we have in Parliament is allowing the government to get away with all types of misfeasance with taxpayers’ money.
It is a clear case that Mr. Robert Badal is not afraid of speaking out as he has nothing to hide.
The tourism industry is a failure in Guyana and will never develop because of problems I mentioned in a previous letter to this newspaper.
It appears that because of the amount of overseas travelling, the President of Guyana has been addicted to hotels and cannot see the big picture of developing Guyana through technology, agriculture and industrial activities.
Balwant Persaud
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Berbice Expo 2010 was a major disappointment

Dear Editor,
I express concern on Berbice Expo 2010. I was away from the 27th of July so I was not able to write this article as a concerned Berbician.Berbice Expo 2010 was a major disappointment for Berbician. I was disappointed to see that the much talked about and the event that all Berbician’s was looking forward to was hampered by rain.
What is more shocking is that the event is part of the Guyana National events promoted by the Ministry of Tourism and that Berbice Expo was held collaboratively between the Ministry of Tourism and the Central Corentyne Chambers of commerce.
None of the two agency mentioned saw it fit to cancel the expo after seeing those condition. Exhibitors didn’t get value for money, but we understand the situation. What we don’t understand is why someone from the Government didn’t see it fit to sit with the Chambers and plan to host the expo at a later date. I have notice that with all other major events hosted in Guyana that the Government collaboratively assisting in, they have never tried to have a say in getting quality events. Is there someone from Office of the President or Ministry of Tourism responsible for these events? How do we want to promote Tourism in Guyana when events are of no quality and standard?
It should not be money making alone, it should be of quality and cater for all ages.
I hope GuyExpo 2010 is not the same. Usually it is not an Expo quality, it sometimes can be equated to a dancehall concert; I only wish that the organisers can be different this year.
Devi Prashad

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