MMA/ADA increased rates to remain – House rules

May 09, 2017 News

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The increase in fees for land and drainage services being offered by the Mahaica, Mahaicony-

Abary-Agriculture Development Authority (MMA/ADA), will remain despite a motion from the opposition for its reversal.
The motion was tabled by People’s Progressive Party/Civic (PPP)’s Member of Parliament, Dharamkumar Seeraj, and came up yesterday after being placed on the agenda since early January this year.
Seeraj, during his presentation, argued that increase for these services does not make “economic sense” positing that the agriculture sector is “going through difficult times”.
The Opposition MP told the house, also, that there were no consultations held for these increases which sparked a series of protests by farmers throughout the Region Five (Mahaica/Berbice) areas.
The latest protest actions took place outside of the Ministry of Agriculture, Regent Street, yesterday morning and outside of the Parliament Buildings later in the afternoon.
According to reports, the increase includes drainage and irrigation fees, from $2,500 to $8,000; land rent for rice farmers from $1,000 to $7,000; rent for cattle pastures from $487 to $2,500; and fees for other pastures from $200 to $1,400.
It was pointed out that in some instances that these increases would have exceeded 600 percent.
Seeraj told the House that policies have to be set in place to support and provide an enabling environment and that these increases were doing the opposite.

Don’t kill the industry

Zeroing on consultations, Opposition MP Anil Nandlall opined that the government should have met with the farmers and come to an ‘arrangement’ since many cannot afford to foot the bills for these services. He accused the government of making a ‘unilateral’ decision.
Many of these farmers are sub-tenants and because of the increase, it will have ‘devastating’ impacts on their profits, he said.
“If the government is hell-bent on an increase, then (they should) work with the farmers, engage them in consultation and work out a regime of increase that they will be able to pay. Don’t kill them, don’t kill the industry. Go back and work through a medium of consultation so that (farmers) they can be able to sustain their operations and their livelihoods.”
If the cost for drainage and irrigation charges is increased, farmers will refuse to cultivate, Nandlall said, as he questioned who will utilise the improved mechanisms “when there will be no farmers”.
The industry is in crisis and the government recognises this yet, fees are being increased. No lifeline is being extended. The government is doing the opposite, he said.

Increases not exorbitant
The Minister of Agriculture, Noel Holder, in response, said that for more than a decade, farmers were required to pay $2,500 per acre annually ($208 per month) notwithstanding the increasing cost of materials and supplies in the provision for drainage and irrigation services offered by the MMA/ADA.
Despite such a low cost for land and drainage and irrigation services provided by the State, some

sections of farmers were still not keeping their end of the agreement, by paying their lease rates as stipulated by the MMA/ADA Act, Holder said.
“The authority in view of the existing drainage and irrigation rates and land rent charges is unable to meet its operating cost.” The Minister said.
He noted that over the years, the MMA/ADA has faced serious challenges in meeting the expenditure required for fuel and spares for machinery, and increases in salaries/wages of the authority’s workers.
Holder said that in 1998, land rental charges were fixed at $1,000 per acre per annum ($83 per month). Shortly thereafter, it was argued at the level of the MMA/ADA Board that the rental for land for pasturage should be reduced. The Board agreed to reduce the land rental charges for pasture to $200 per acre ($17 per month). Holder said these charges have remained for the past 18 years.
Attorney General and Minister of Legal Affairs, Basil Williams, during his contribution to the debate, said that contrary to what the opposition is saying, there is no intention by the administration to “oppress anyone”.
He maintained that fees were not arbitrarily increased but rather derived from keeping with the necessary legislation to keep the MMA/ADA “above water so that it doesn’t sink”.

Motion has no merit
The motion has no merit, Prime Minister, Moses Nagamootoo said. He added that the increases are reasonable and necessary.
He said that any responsible government cannot allow what has happened to Guyana Sugar Corporation (GuySuCo) by the previous administration to visit the MMA/ADA.
He made reference to the massive bailouts that GuySuCo would have received throughout the

years.
Nagamootoo said that it is imperative that the MMA/ADA does not become a “drag on the treasury.”
The Prime Minister said that the increases did not come out of “the blue”. These increases had been planned for in an earlier period in 2007 by a former Minister under the PPP/C administration.
“There was always a plan afoot to have this done because the MMA/ADA could not sustain their services. The MMA/ADA was suffering from defaulters. The agency was faced with a situation that it came close to becoming a bankrupt entity.”
He noted that the law under which the MMA/ADA operates, provides for the increases where appropriate, Nagamootoo said.
He said that the increases are not “overkill” and that the monies will go to the MMA/ADA to upgrade the facilities being utilised by farmers.

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