Current political climate poisonous to progress – Private Sector Chairman

Jun 28, 2014 News

Chairman of the Private Sector Commission (PSC), Ramesh Persaud expressed on Wednesday that the Commission is not

Ramesh Persaud,
PSC Chairman

only disappointed, but concerned about the disadvantages of the current political climate which he said is “poisonous” to the country’s progress.
Persaud made this pronouncement during the opening ceremony of the Commission’s Annual General Meeting which was held at Pegasus Hotel.
Before coming to such a conclusion, he highlighted some of the work done by the Commission in 2013. But even in the face of its accomplishments, he said that he is unfortunately aware of the effects of the political climate and how it can affect the performance of the private sector.
Nonetheless, the PSC he said, made representations to the Minister of Finance, Dr. Ashni Singh during his 2013 Budget consultations with regard to the reduction in personal income tax and personal property tax and increased government expenditure in specific infrastructure. These included hinterland airstrips and a new Demerara River Crossing.
Persaud said, “We were happy when the Minister announced the lowering of the personal income tax rate from 33 1/3% to 30%, the increase in the ceiling for personal property tax and the introduction of mortgage interest relief for home owners with loans of G$30M and less. This has significantly benefited our employees. The Government also allocated $248M for maintenance and rehabilitation of hinterland airstrips and has started the process of establishing a Public/ Private Partnership for a new Demerara River Crossing.”
As a major partner with the Government to implement the National Competitiveness Strategy, the Private Sector Commission through the National Competitiveness Steering Committee addressed several items during the year. These included: Mergers and acquisitions legislation, development of Port Georgetown, hinterland airstrips, special economic zones, and single window automated processing system and improving Guyana’s ranking on the World Bank doing business index.
The Commission, the Chairman said, is also actively involved in the National Working Group which is responsible for the achievement of the Millennium Development Goals.
“We have representatives working along with several faculties of the University of Guyana, The Board of Industrial Training and the Council for Technical and Vocational Training,” he added.
In June 2013, the Commission collaborated with the Canadian High Commission to sponsor a Guyana Investment Conference. The object of the conference was to focus on the architecture •
necessary to increase both local and foreign direct investment. Persaud said that the major conclusion that came out of this conference was the need to have a sound financial sector that complies with international standards such as those for the Anti-Money Laundering and Countering the Financing of Terrorism Regime to be able to attract investors.
The Commission also raised its voice on several occasions, supporting the need for Local Government Elections. As he neared his conclusion, Persaud reiterated sentiments expressed by Dr. Warren Smith, President of the Caribbean Development Bank at the 44th Annual Board of Governors Meeting.
Dr. Smith, he reminded had said that high energy cost is the major issue affecting the competitiveness of businesses within the Region. He had also recognized Guyana’s potential for the development of Hydro Power.
“On behalf of the private sector, we would like to acknowledge publicly that we agree fully with the sentiments expressed by Dr. Smith and we call on the leaders of Guyana both in Government and the Opposition to work on realizing our Hydro Power potential whether it is Amaila Falls or any other Source.” Also of significance was when he noted that the Private Sector is also “extremely concerned at this time” about the political climate that is prevailing in the country. Persaud concluded that the current political dispensation where there exists a minority Government with a majority Opposition in Parliament is the sole reason for the non-support of the AML/CFT legislation and the rejection of many other developmental and transformational projects that the private sector supported and endorsed.
He added, “The PSC is of the view that under the current political dispensation, a spirit of compromise and negotiation should have or is needed to exist to achieve consensus on major national issues. We are disappointed that not adequate progress has been made in establishing win-win situations on many of the national issues by both the Government and the Opposition.”
“The current political dispensation has its advantages but currently its disadvantages are more prevalent and this is poisonous to the growth of private businesses, job creation and our economy. The private sector is calling on the leadership of our country to seriously consider this fact and work towards reversing this situation,” the PSC Chairman concluded.