US$9M forked out to clear some debt to rice farmers

Jul 20, 2015 News

– Another US$8M still owed – Finance Minister

With there being no monies in the PetroCaribe Fund to pay rice farmers, the Granger administration was forced to dip into the Consolidated Fund for US$9M to clear off some of the debt owed to them.
Another US$8M still remains outstanding to clear off the total debt.
This is according to Finance Minister Winston Jordan, during an interview he had with Kaieteur News over the weekend. Jordan said when one takes this unforeseen expense into consideration along with the $3.8B bailout that was granted to the Guyana Sugar Corporation (GuySuCo), which is already $90B in debt, “government has been hit with a double whammy.”
The recent payments to the rice sector is also part of the reason the Finance Minister said that this industry along with the sugar sector poses the biggest threat to the APNU+AFC’s 100 day plan and it is already just over 60 days since the Granger administration has been in office.

Finance Minister, Winston Jordan

In a recent interview, Presidential Advisor on Sustainable Development, Dr. Clive Thomas said, too, that the worrying state of the rice and the sugar industry will affect some of the promises the Granger administration made to the Guyanese populace during the 2015 election campaign period.
“But it wouldn’t be their fault and the citizens need to be patient with them,” Dr. Thomas had said.
As for the rice industry, Dr. Thomas said that it is important to note that this sector is facing a dispiriting future. He said one needs to consider Guyana’s dilemma in this regard since the PetroCaribe coffers are empty and new rice markets are still to be found.
Compounding the problem for the rice sector is the fact that the Finance Minister during his recent visit to Venezuela, was told in no uncertain terms that the South American neighbour would no longer be interested in renewing the oil for rice barter under the PetroCaribe deal which will come to an end on November 16, next.
He said that Guyana was told to find new markets for its rice.
Venezuela’s decision regarding the rice deal comes at a time when it is claiming sovereignty over Guyana’s waters.
This claim was made after the significant oil find by the American oil giant, Exxon Mobil just 100 miles off of the Stabroek Block. But Government has made it clear that it will do all that is necessary to ensure that those who depend on the rice industry are not made to suffer from any impending economic shocks.
Dr. Thomas said that with the state of the two traditional revenue earners in mind, there is no doubt that government would be tempted to ensure that they prevent both sectors from any collapse. He emphasized however that in doing so, the “economic” plans of the APNU+AFC government will be affected.
The Presidential Advisor had opined that the state of the economy is perhaps beyond what the government imagined was taking place.
The Finance Minister had said that he agreed with Dr. Thomas’ points. In an interview with Kaieteur News on Sunday afternoon, he said, “The new administration is indeed facing two significant threats to the 100-day plan which includes the reduction in the Berbice Bridge toll and significant salary increases for government workers and for old age pensioners.”
Jordan added, “The transfer of the monies to the sugar industry was indeed large and unanticipated expenditure. But the state of the rice and sugar industry will not affect the implementation of our plan. It will only affect the magnitude of it.”
“For example, the increases promised to the Public Servants will be implemented but it would not be of the magnitude as we had planned for. In many instances, we covered ourselves before assuming office as we had always said that our plan will be dependent on what we found in the Treasury.”
Since the coalition government assumed office, it has been on a hunt for hidden accounts holding millions of taxpayers’ dollars and having them placed into the Consolidated Fund. This will aid them in ascertaining the fiscal position of the country as the Finance Minister prepares the country’s budget which he hopes to lay in the National Assembly by August month end.