2014 Budget…$56.2B of $220B approved on day one of voting

Apr 11, 2014 News

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A total of $56.2 billion of the $220 billion 2014 Budget was approved by the Committee of Supply considering the Estimates on the first day of voting, inclusive of the $6B bailout for the Guyana Sugar Corporation (GuySuCo).
It was not all smooth sailing, however, as the sitting commenced an hour and a half late and was adjourned for another hour to convene behind the scenes discussions to find amicable solutions to the potential

impasses and signaled cuts.
A Partnership for National Unity (APNU)’s Carl Greenidge had proposed a motion calling for the Minister of Finance Dr Ashni Singh to withdraw the Budget and resubmit it in accordance with the Constitution. This was proposed given that allocations such as those for the Judiciary had not been provided for in a lump sum.
When the House eventually commenced its sitting, the Finance Minister signaled to the House that at the appropriate stage he would amend the Budget to allow for the money to be provided for in a lump sum.
It was referred to as a historic day for the Judiciary.
After the relevant members of the government side were grilled by the political opposition for hours on end, allocations for the Ministry of Agriculture to the tune of $23.8B and the Ministry of Education ($32.4B) were approved without any cuts.
First to be questioned over the allocations was Agriculture Minister Dr Leslie Ramsammy.
APNU’s Rupert Roopnaraine was first to bring into focus the $6B subsidy that had been allocated for GuySuCo. He initially sought to find out about the criteria for members of the new board, as the Opposition wanted to be assured that “we are provided with a credible programme to resuscitate the industry”.
“We believe that throughout the industry at all levels of management there requires significant reform…What we are looking for in relation to subsidy is iron-clad assurances.”
According to the Agriculture Minister, the new board is being appointed based on a number of recommendations made, and he assured that there are radical changes being proposed for the board come July.
He said that the President and Cabinet are engaged in talks with various people who have been recommended to be a part of the board and “I want to assure the opposition that we are looking for persons who will bring experience in the industry in business and marketing and mechanization, because these are the issues we have to face.”
APNU’s Joseph Harmon, queried of the Minister what the $6B will be used for specifically, and was told the money would primarily be used for the conversion of thousands of hectares of land to facilitate mechanization as well as the opening up of new lands.
Dr. Ramsammy said too that the money will be used to facilitate the upgrade of a number of estates, including a $500M allocation for the Skeldon Sugar Factory.
The Minister said that there will be an aggressive push for the mechanization given the dwindling labour pool. He noted, however, that the drive will not be done in such a way as to displace any of the existing workers.
He said that given that some of the workers have been leaving the industry in search of higher-paying jobs, the industry with its increased mechanization will be looking to train existing workers to use the machinery, so as to allow for their elevation to higher-paying salary scales.
Questioned on the indebtedness of the industry, the Minster said that when the Budget was prepared there was an $11B deficit, which the $6B would be used to alleviate in some measure, but as long as the turnaround is on track, he is optimistic that the industry would not be seeking another bailout before the end of this year.
The Minister also committed to providing the House with quarterly updates on how the money will be used.
Dr Ramsammy was asked about the undertaking of a forensic audit into the Skeldon Sugar Factory to see if the money invested was well spent. He reminded the House that GuySuco’s accounts are audited each year.
Skeldon sugar factory is expected to produce 18 per cent of the projected 216,000 tonnes of sugar projected to be produced this year.
Meanwhile Dr Ramsammy was also grilled on the allocations to the National Drainage and Irrigation Authority, given the discrepancies raised by the Auditor General.
The Minister said that “we have made significant progress in terms of accounting for expenditure and resources.”
He said that with regards weaknesses that were identified, “we are working directly with the AG’s office so that we can strengthen the department.”
The Minister of Education Priya Manickckand was also questioned about the allocations to her Ministry and after providing satisfactory responses, all were approved by the House.

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