WPA's cash transfer proposal is “technically unsound” - Opposition Leader

WPA’s cash transfer proposal is “technically unsound” – Opposition Leader

Oct 11, 2019 News

Bharrat Jagdeo, General Secretary of the People’s Progressive Party (PPP), told the press, yesterday, that the Working People Alliance (WPA) proposal is “technically unsound” or unachievable at this time. He was hosting a press conference in his Church Street Office, Georgetown.
Jagdeo explained that oil proceeds are one variable and since the prices fluctuate, any model that entails universal transfer and the basic income approach has to be carefully calibrated. He said that it has to be variable and sustainable in that it should not destroy the rest of the economy.
The PPP Leader claimed, “What WPA wants is to go in the communities and say to people vote APNU because if you do this, next year you’re going to get US$5000 in every household.”
He iterated that the WPA itself said that it is not possible unless 1.5 M barrels of oil are being produced per day.
He explained, “And we are going to start produce 120,000 barrels a day, then why make it a hot issue at this time, when we are not able to do this until a another decade from now?”
He added that Granger had the “right instinct” to study the matter of cash transfers.
Jagdeo questioned where the money will come from if only US$300M will be received per year.
The Opposition Leader stated, “This issue should be discussed, it should be debated.” He added that Clive Thomas’s proposal is wholly unsustainable at this point in time.
He noted, “There is simply no money. [Clive Thomas]’s proposal would lead to the distribution of US$1.1B a year and we are only gonna get US$300M for the next few years.”
It was reported by Kaieteur News on Monday, that the PPP leader is keeping an “open eye” on the issue of cash transfers. He claimed that any method that would reduce poverty, generate jobs, promote admittance of children to school and allow for quality education and healthcare.
Jagdeo elaborated, “The US$5000 per household would cost us in excess of US$1.5B, and we were only going to collect, at maximum or so US$300M per year for the first four years. How can you distribute per year, US$1.5B if you’re only collecting US$300M? That three times more that the amount you collect.”
On October 2, Dr. Karen Cummings, Minister of Foreign Affairs, highlighted that the Coalition Government prefers to invest in the education sector. Therefore, it is not considering the placement of proceeds from oil into the hands of Guyanese.

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