Parking Meter Project adversely affecting economy-Goolsarran

Feb 19, 2017 News

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Chartered Accountant and former Auditor General, Anand Goolsarran, is of the firm conviction that the controversial parking meter project is adversely affecting the economy. He is also insisting that the project be scrapped forthwith.

He made this, among other comments, during a recent interview.
Referring to statements made in a column he did on the project, Goolsarran stressed that there was simply no meaningful consultation with the key stakeholders, mainly the owners of the various business houses and other commercial entities, in order to secure the necessary buy-in so vitally needed to make the venture a success.
Goolsarran said that compounding the lack of consultations is also mounting concerns about the level of fees charged, resulting in the paid-parking areas being substantially devoid of vehicles during business hours.
Goolsarran reminded that the project essentially resulted in a significant decline in business activity which does not augur well for the overall performance of the economy.
Further, the Chartered Accountant said that there was clearly a lack of transparency in the award of the contract to Smart City Solutions (SCS) since no competitive bidding procedures were followed, as required by Section 231 of the Municipal and District Councils’ Act.
Goolsarran said, “No one denies that the City Council is in dire need of financial resources to undertake its various activities, especially keeping the streets of Georgetown clean and restoring the city to its former glory of the Garden City of the Caribbean.”
However, instead of imposing new taxes, which is what the parking meters are about, Goolsarran suggested that the Council should have first reflected on the existing tax regime and assess the extent to which citizens are fulfilling their responsibilities in terms of their financial obligations to the Council.
The former Auditor General said that only after this is satisfactorily addressed— and there still remains a significant shortfall in revenues vis-à-vis expenditure—should there be any consideration of new taxes.
Given the City Council’s lack of accountability for 11 years, Goolsarran commented that citizens have no assurance that the funds garnered from the operations of the parking meters as well as from other sources of revenue, will be properly accounted for and used in an economical, efficient and effective manner in the furtherance of the activities of the Council.
Furthermore, Goolsarran said that it would be difficult to say at this point if the nation stands to lose more given the contractual arrangements between SCS and the Mayor and City Council.
Goolsarran said, “However, business activity has slowed up considerably, and several small and medium businesses may very well consider closing down. The owners may also consider migrating and take with them financial resources to help them to settle overseas, resulting in capital flight. On a bigger scale, if there is a loss of confidence in the economy, capital flight will assume greater proportions. This will put pressure on the exchange rate.”
On the question of whether the Government can intervene, Goolsarran said that this is certainly a possible.
The former Auditor General said, “There are two ways in which the Government can intervene: through its elected representatives on the City Council; and through the powers vested in the Minister of Communities by the Municipal and District Council Act.”
Goolsarran continued, “It must also be borne in mind that, like all local government bodies, the Georgetown City Council receives substantial funding from the Central Government, especially as regards infrastructure works.”
“Therefore, it is possible for the government to intervene, especially in a situation where the economy is adversely affected by the actions of the City Council. The evidence suggests that the Parking Meter Project is adversely affecting the economy.”
Regarding the way forward, Goolsarran said that all efforts should be geared towards ensuring that the controversial project is scrapped. He said that when it comes to the Project, there should be consultations with key stakeholders first.
The Chartered Accountant said, “One suggestion is to work out an arrangement with the Guyana Revenue Authority to charge motorists an annual fee for use of the City roads and parking at the time of renewal of road licences.”
Assuming that there are 75,000 vehicles that are owned by residents in the perimeter area from Mahaicony to Parika (east to west), and Georgetown to Soesdyke (north to south), and a fee of $10,000 per year is charged, Goolsarran said that the City Council will earn revenue in the sum of $750 million.
Goolsarran said that a lesser amount of, say $5,000, could be charged for motorists outside the perimeter.
In this way, he said that the City Council could earn at least $1 billion per annum, and no expenses are involved.
“I do not believe that the City Council will be able to garner that amount from the Parking Meter Project,” concluded the Chartered Accountant.

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