Essequibo Rice Sector beset by a number of problems
Read by Khemraj Ramjattan, Presidential Candidate, AFC Chairman

The Alliance For Change is seriously concerned at recent problems besetting the rice industry on the Essequibo Coast. It goes without saying that the rice industry on the Essequibo Coast is the lifeblood of the Region 2 economy (with approximately 32,000 acres under rice cultivation) and an afflicted rice industry will have far reaching repercussion in the other sectors as well.

Firstly, the inefficiency of the Dawa pump located near the Pomeroon River is a cause for serious concern. This pump which channels water into the Tapakuma Lake and then into the main canal from where rice farmers have access, is not being operated to meet the needs of rice farmers on the coast.

The Chairman and Vice Chairman have both made statements in the past that monies are not available to operate this pump to maximum efficiency and that monies have to be requested from Central Government.

Farmers say that an inadequate supply of water causes the land to dry which is accompanied by the growth of unwanted weeds in the rice field. When it is considered that rice is a crop that is highly dependent on an adequate and timely supply of water, this situation is revealed as grossly untenable. Farmers have said that in years gone by, an efficient system of drainage and irrigation was maintained by rangers who did periodic checks on water levels to ensure that the supply was adequate. Today, whilst there is still the existence of rangers, the efficient system of monitoring has completely broken down. Farmers have said that there were even instances when rangers were implicated in the passing of shoddy drainage work.

The rice yield of the Essequibo coast which is approximately 1 million bags of paddy per crop will definitely see reduced figures at the end of this crop as a result of this unreliable supply of water.

The AFC has discovered that there is a single bulldozer (on the whole of the Essequibo Coast) attached to the Drainage and Irrigation Authority which works and maintains the access dams that farmers depend on heavily. This Bulldozer has been down for the last two months. Rice farmers have said that access roads are very important to rice cultivation and this unavailability of machinery to maintain these is quite unacceptable.

Farmers have said that they are completely at the mercy of the millers when it comes to the pricing of their product. They have said that millers fix prices on supposedly world market trends. However, there is no means of verifying this information. They have posited that the Guyana Rice Development Board must be more involved in this process to ensure that farmers have access to a just and equitable price. Another source of bother for rice farmers in region two is the lengthy period (sometimes up to six months) they sometimes have to wait for payment from the millers.

Farmers have said that they are oppressed by the VAT attached to the cost of spare parts and other implements for tractors, combines and other equipment. They have posited that in the interest of agricultural production, the VAT attached to such spares should be reduced or even zero rated.

The AFC in its Action Plan proposes the following policies for the rice sector for a fuller realization of its potential and greater profitability.

1. Re-gaining the respect within Caricom, UNASUR and other international markets that Guyana can be a reliable supplier of rice;

2. Provide access to low interest capital through the establishment of a State Development Bank which will support the rice farmers and the millers, as well as fishery and livestock farmers;

3. Planting and reproductive material being available to farmers by the authorities. GRDB, NARI and UG will be upgraded to produce higher yielding and better disease-resistant varieties and generic planting material to ensure less dependence on imported pesticides, weedicides and fertilizers;

4. Improve the farm to market dams and roads and overhaul the drainage and irrigation system;

5. Manufacture value added products e.g. rice cereals, rice milk and flakes for the local and international markets.

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AFC Advocates Dependency Tax Break for Parents
Read by Michael Carrington Jr., AFC Executive

The Alliance For Change wishes to reiterate an important component of its taxation policy which resolves to reintroduce allowances into the income tax system for dependents. The AFC believes that such reform of the tax system is needed, in the midst of an ever increasing cost of living, to empower parents to better fulfil their parental mandate. A fixed tax threshold which makes no provision for dependent allowance is divorced from the harsh Guyanese reality which makes the upbringing of children a difficult and uphill task.

The AFC is committed to the establishment of a dependent allowance calculated at half of the income tax threshold which translates to $20,000 per month or $5000 per week per child. Thus, for example, a parent of two children (who must be minors) who earns a gross salary of $80,000 per month would be eligible to access the dependents allowance and thus would pay no income tax. The AFC believes that there is enough economic hardship prevalent in our society to warrant such reform of the tax system.

The AFC recalls that in the March 12, 2009 edition of the Stabroek News, the Commissioner General of the Guyana Revenue Authority took it upon himself to comment on this issue in the letters column. He boosted proudly that between the years 2006 and 2009, there was a 75% increase in the income tax ceiling, which is represented by a movement from $20,000 to a grand total of $35,000. The AFC submits that such posturing can only be made devoid of any knowledge and appreciation of the harsh cost of living reality of Guyana.

Towards this end, in May of 2010, the AFC’s region 4 councillor at the level of the RDC Mr Michael Carrington along with Parliamentarian Everall Franklin wrote both the Women and Gender Commission and The Rights of the Child Commission in which we posited that “The welfare of women and children cannot be separated. Therefore it may be prudent to convene a joint committee comprising of members of these two important commissions to review the tax laws, with a view to enable parents and guardians, who perform the most essential function in any progressive society, i.e. to care for our children.

In that letter, it was contended that a fixed income tax threshold which does not provide any exemption to parents could be deemed discriminatory and unfair as under such arrangement, parents are treated on par with those who are not burdened with such responsibility. Also in that letter, the Women and Gender Commission along with the Rights of the Child Commission were reminded of their respective constitutional mandate to “Promote the empowerment of women” and “Ensure that the rights and interests of children are taken into account at all levels of Government, other public bodies, and private organizations when decisions and policies affecting children are taken”. To date, there has been no response to this correspondence.

The AFC submits that such reform of the tax system could indeed encourage delinquent fathers to 1. accept and take responsibility for their parental mandate and 2. to also marry their “child mother” as is termed in local parlance as the enabling atmosphere would have been created by such review of the tax system. The AFC submits that such review and reform of the tax policy is in consonance with the caring approach of the AFC and is intended to alleviate the economic hardships faced by Guyana large population of the poor.

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WikiLeaks Revelations on Guyana’s Perilous Security Situation
Read by Gerhard Ramsaroop, AFC Executive

The Alliance For Change is seriously alarmed and concerned at the sensational bouts of information being divulged via the WikiLeaks website. Perhaps the most alarming and egregious relate to the information concerning the narco-connection of police chief Henry Greene.

A July 17, 2006 cable, sent by former US Embassy Charge d’Affaires Michael Thomas, noted that then Ambassador Roland Bullen in a meeting with Roger Luncheon indicated that Greene’s name appeared repeatedly in reporting by various US government agencies in connection with criminal activities. Subsequently, the DEA informed Bullen that it had developed “specific, reliable information that documented continuing payoffs by narco-traffickers to Greene.” Thomas also noted that the DEA provided language for him to use in informing President Jagdeo: “US law enforcement has reliable reports from multiple sources that Henry Greene has benefited from, and continues to benefit from, the proceeds of drug trafficking.”

The AFC submits that such shocking information has to be taken in conjunction with the position adopted only some weeks ago by Berbice Commander Steve Merai to the very same effect that the police force is indeed infiltrated by the narco-trade. Such revelations bring to the fore the vulnerability of the Guyanese people to the narco-trade as well as to the dark criminal underworld. This has to be seen as one of the principal failures of the PPP.

The AFC reiterates its position that the Commissioner of Police must summarily resign and that there must be the launching of an independent forensic inquiry into the drug infiltration of the police force. Green’s recent calls for “proof” of drug connections is quite ridiculous as only a totally independent inquiry can unearth such information. The AFC submits that it is only out of such enquiry that we will be able to chart a course out of this present morass.

Further, in a cable dispatched on May 24, 2006 to, among others, the US Secretary of State, DEA Headquarters in Washington Bullen stated "The level of narco-trafficking influence on the political, judicial and economic systems in Guyana creates ripe conditions for the emergence of a narco- state.”In an earlier cable dated January 6, 2006, Bullen noted that there has been talk about setting up a DEA office here since 1999 and questioned the Guyana government’s sincerity in wanting one. “The current stumbling block is the GoG's inability or reluctance to give approval for basic logistical details. Post's position remains the same - the USG is ready to work with and advise the GoG as soon as the GoG is fully prepared to move forward in its fight against narco-trafficking.”

Describing the narco-situation in Guyana as “severe”, he said the DEA could work more effectively to accomplish the critical counter-narcotics objectives and provide more sustained support to local law enforcement agencies in Guyana. The DEA was expected to establish a vetted counter-narcotics unit in Guyana but the ambassador told the Secretary of State that he was worried that it could become infected by corruption. “An important challenge facing this unit is the pervasive corruption in the country, which has undermined previous Guyanese counter-narcotics initiatives,” he said, adding that establishing a DEA office will allow close and constant monitoring of the vetted unit to help alleviate this problem.”

Such revelations highlight the fact that Jagdeo’s and the PPP’s perpetual bemoaning the lack of US and other support and intelligence were all a sham.

The AFC’s Action Plan states the party’s initiative to confront organised crime and redress the breakdown of law and order. Such include:

1. Increasing substantially law enforcement officers’ salaries;

2. Giving the DEA permission to set up a local facility;

3. Re-engaging the British, USA and other friendly Governments for technical and financial assistance to reform the Joint Services;

4. Establishing a Group of Forensic Auditors to reduce corruption and white collar crimes and facilitate civilian oversight.

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That 5.9% Half-Year GDP Growth
Read by Gerhard Ramsaroop, AFC Executive

Introduction

Finance Minister Ashni Singh reported that Guyana’s GDP grew by 5.9% in the first half of 2011. The Minister went to great lengths to emphasize the non-sugar sector aspects of economic growth. We can understand this given the fiasco associated with the new Skeldon factory that has consistently failed to meet its production and employment targets. The Minister gave us the growth rate of several sectors of the economy. Notably absent is the weight of each sector of the economy.

We know that the Bureau of Statistics has rebased the GDP statistics to 2006. One implication here is new weights would have been used for the various sectors of the economy when calculating GDP from 2006. If we play around long enough with the weights we can get higher growth rates without there being any change in the actual output of the sectors. However, this is another issue for another day.

It is important to note that Guyana did not historically publish quarterly breakdown of GDP as several of our sister CARICOM countries – Trinidad and Tobago, Belize, Barbados and Jamaica – have done. It is interesting that Guyanese are offered up these half-year estimates in an election year. We find it strange that the Bureau of Statistics has not been reporting the quarterly GDP statistics. For the Minister to be able to come up with a half-year estimate these numbers must be available. Even the Bank of Guyana does not report them. As a matter of fact, the Bank of Guyana’s monetary policy functions will be better served if the Minister can release these numbers on a quarterly basis. The Minister might need to consult President Jagdeo before this becomes a reality.

The Jagdeo Rate of Growth

The average rate of real GDP growth under President Jagdeo has been 1.95% from 2000 to 2010. This is hardly spectacular. Even if we assume a 5.9% rate of growth for 2011 we will achieve an average rate of growth from 2000 to 2011 of 2.3%. The PPP has a habit of telling Guyanese how well Guyana is doing in spite of the global crisis and problems. What it does not want to face up to is the fact that when the world economy achieved a boom from 2000 to 2007, Guyana grew at a meagre 1.45% in the pre-crisis period. Why has this been the case? Below this release will explain some reasons for this mediocre performance.

Private Investments

A country must have investments if it is to continue growing. Growth, in turn, is critical because it leads to employment creation for citizens. If investments are zero then there will be no growth. We particularly value private investments given the private sector’s ability to generate growth. When analysing private investments we must take the private investment rate (PIR), which is calculated as the dollar amount of private investments divided by GDP. If we look at the PIR since 1992 it has declined continually. It continues to decline into 2010. Therefore, it is a mystery how growth has picked up given Guyana’s declining PIR.

Government investments have however increased while PIR is declining. Government investments have two main aspects: (i) a non-tradable aspect such as construction of roads, schools, bridges, etc; and (ii) a tradable component such as investments by GuySuCo and GuyOil – notable state-owned enterprises. The problem is government investments have been very inefficient to date. The Skeldon sugar factory is a disaster while infrastructure works continue to break up after a few months of being constructed. It is therefore a mystery how Guyana can achieve 5.9% growth with grossly inefficient public investments and falling domestic private investments.

Jobs

While the Minister appears keen to report half-year GDP we still do not have regular statistics on the Guyana labour market. The unemployment rate continues to be a mystery and it is a number typically subjected to political abuse. We also need to know what the rate of labour force participation is, which is calculated by dividing the labour force by the population. Regular labour statistics are critical for the proper management of the economy. In the United States, for instance, they even know the ethnic and gender profile of unemployment. The AFC will be a government of transparency and every effort will be put in place to see these data get collected and reported regularly.

Underground Economy and Remittances

These two have served as an important source of consumption. Guyana receives approximately 40% of GDP in remittances each year. This is one of the highest percentages in the world. Remittance inflows are stable and altruistic. Even when the North American economies enter into recession, Guyanese abroad still remit funds home. Remittances have served as an important pressure valve and have propped up family consumption for years. The inflows have also created a false sense of success among government Ministers. From an economic growth perspective, remittances could contribute to a reduction of labour supply and willingness to work. Remittances is the dual of migration of Guyanese – itself a symptom of the failed policies of the PPP since 1992.

The illegal underground economy has been particularly destructive in terms of security and has made it difficult for legitimate businesses to compete. Drug trafficking and money laundering lead to corruption of at all levels of the society. The WikiLeaks are bringing these out clearly. However, we must note that these illegal activities do not contribute favourably to long-term GDP growth and prosperity. Drug dealing increases the cost of doing business among legitimate business investors.

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Disrepair at the Golden Grove Secondary School
Read by Sewnauth Punalall, AFC Executive

On Monday Sept 5, 2011 school re-opened for the new school term. However all was not well at some schools. This was the case at the Golden Grove Sec. School, East Coast Demerara where classes were disrupted by protesting parents over poor conditions under which students and teachers are required to perform.

Over the past few years students, teachers as well as parents have noticed the deteriorating conditions at this institution and have been voicing their disgust. Their complaints were largely unheeded and matters came to a head on Mon Sept 5 when disgusted parents succeeded in halting classes and mounted a very vociferous protest. Among other things parents complained of inadequate furniture for teachers and students, missing windows and doors, faulty electrical wires, and the deplorable state of the laboratory.

On March 29, 2011 AFC councillor Sewnauth Punalall, who sits on the Education Committee of Reg. 4 visited this school and reported more than a dozen problems facing this institution. As a result the Education Committee, along with Education Officers from Reg. 4 visited this institution and had a first-hand look at the appalling conditions prevailing here. The matter was drawn to the attention of the regional administration but unfortunately the 2011 budget lacked adequate funds to deal with this situation.

However assurance was given that some effort will be made to address this situation. Unfortunately the lengthy August holidays went by without anything much been done. This was much of a disappointment to parents, teachers and students. On Tue Sept 6 more than a hundred parents gathered at a meeting with the school’s administration to voice their disgust. The Head Mistress explained that the situation was bad for quite a while and this was reflected in her reports. She further shared that the student population is over 600 but the school is designed to take care of only around 400. Parents attending this meeting expressed grave dissatisfaction at the poor conditions under which their children are taught and were unanimous in calling for a temporary closure of the school.

They held the view that the education of their children is important and therefore they will not like their children to lose tuition as a result of the school’s closure. In the circumstance they have decided to give the school’s administration until Fri Sept 9 to identify alternative locations where the tuition of their children can continue. This decision will be communicated to the education department by an elected steering committee comprising parents. It was agreed that this steering committee will serve until proper elections can be held to appoint a PTA. This situation has developed because Reg. 4 lacks a maintenance crew to do routine maintenance works on its many buildings. This was compounded by budgetary limitations.

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My condolence to Michael Carrington Jr.

quote:

Originally posted by Bookman:
My condolence to Michael Carrington Jr.

Thank you very much Cde Bookman.