PPP/C rejects bid to lower toll at Berbice River Bridge
…Opposition voting strength approves the resolutions
“I will not reduce the toll for any person in Guyana until we have determined economically that it will be a benefit,” Robeson Benn.
By Gary Eleazar
Punctuated with perceived threats of murder, incessant heckling and even a bout of blackout, the Peoples Progressive Party Civic (PPP/C) Government on Thursday rejected a motion to reduce the tolls for crossing the Berbice River Bridge, but it was in the end approved by the Full House given the voting strength of the Political Opposition.
The Motion was successfully piloted by A Partnership For National Unity’s (APNU) Joseph Harmon, who argued that the tolls being charged by the Berbice Bridge Company Inc was excessively high and meant to only enrich a few.
He said that arguments that the company is a private one are nullified by the fact that under the Berbice Bridge Act, the Minister of Public Works has responsibility for the setting of the tolls.
Harmon said that the Bridge earns an average of $1.5B annually, and as such the company can afford to reduce the tolls charged.
The APNU Member reminded that Government signed a concession agreement for the construction and operation of the Bridge for 21 years even though it has a proposed lifespan of 30 years.
He also lamented the access to information in relation to the operations of the Bridge and said that this is the case given the infamous “Brassington Clause”.
This clause, he said, binds all to deal with all information in the concession arrangement as secret and confidential.
He said that with Government holding some $950M in shares in the bridge, it is incumbent of the Administration to have its Director on the board call for the reduction of the toll.
Harmon noted that when the toll was calculated, then President Bharrat Jagdeo announced that it was done to cover operating costs, make repayments and earn a profit.
The APNU Member of Parliament lamented that there was nothing in the consideration of the toll “about public good, only money”.
Harmon pointed to a number of bridges across the world, including neighbouring Venezuela, Suriname and Brazil where the tolls for bridges in those countries are either free or far below that which is being charged to cross the Berbice River.
He used the opportunity to point out that between August 1 and 12 last year, the company conveniently lowered the tolls, at which point in time there came the heckles that this was to facilitate the PPP Congress which was being held in Berbice.
Minister of Tourism Industry and Commerce, Irfaan Ali, who was the first to refute claims made by Harmon, categorically denied that the National Industrial and Commercial Investment Limited (NICIL) has any ownership stake in the company.
In fact, it was pointed out during the debate that NICIL has sold its 950 million shares in the company to the National Insurance Scheme (NIS).
In fact, NICIL retains only one single share in the company and has no directors on the board whilst NIS only has a single director.
The single largest shareholder behind the NIS is Former President Bharrat Jagdeo’s best friend, Dr Ranjisinghi ‘Bobby’ Ramroop through the New Guyana Pharmaceutical Corporation and Queens Atlantic Investment Inc.
He has two directors on the eight member board, namely Avalon Jagnandan and Ravi Ramcharitar.
Ali argued that “The Government has no direct ownership stake in company”.
He further stated that if the Government were to intervene it would be a breach of contract and “take us back to those dark years when Government imposed its heavy hand on private capital”.
The Minister also responded to comparisons in the tolls at the Demerara Harbour Bridge as against the Bridge over the Berbice River.
According to Ali, the Demerara Bridge is owned by the Government and benefits from annual subsidy and in contrast, the Berbice River Bridge is a Public Private Partnership which does not receive any subsidy.
Ali said that like any private company, it is required to generate enough revenue to run its operations as well as make its payments.
Public Works Minister, Robeson Benn, under whose responsibility the Bridge Falls, was adamant that he would not reduce the tolls as is called for by the motion without any consideration of the various market forces.
“I will not reduce the toll for any person in Guyana until we have determined economically that it will be a benefit,” asserted Benn.
The comment by Benn was condemned as arrogance, to make such a statement even before the motion was voted on.
According to Minister Benn, the motion brought by APNU represents a shot fired across the bow of all who want to invest in Guyana.
He said that for Government to interfere with the private company would be a de facto nationalization of the bridge.
Benn argued that this time around it would not be the nationalizing of foreign owned companies that would have run roughshod over Guyanese: “we would be taking away from our own people…the very people you want to help in a short sighted way.”
The Minister argued that if Government were to impose on the company to reduce the toll it would be “the worst thing that ever happened in Guyana…we would be taking away from our own people; unheard of.”
According to Benn “it’s easy to shout reduce the tolls to get some vote; it’s just like saying reduce the VAT….We will not go back to the days of irresponsible management of the economy.”
The Minister was adamant that the proposals by Harmon “cannot fly” and as such he could not accede to the move which he claims will result in a destruction of the operation of the Bridge in a few years.
The Minister suggested to Harmon that the motion be put on hold to facilitate further consultation.
Harmon, in calling for a vote, reminded the House that the motion was filed in December 2013, “so when the Minister says we should have time, and we are in May of 2014, a lot of time has passed.”
He further pointed out that the issue of the reduction of tolls across the Berbice Bridge was part of the Budget discussion in 2012, “so this is nothing new.”
Harmon further went on to chastise Benn and added that “saying he will not reduce the toll smacks of arrogance; he has no regard for the resolutions of this House and the people of Berbice.”
Harmon was adamant that a “powerful case has been made for the reduction” and called for the vote.
When the Speaker put the vote to the House the ruling Administration was loud in its disapproval but was overwhelmed by the Opposition’s affirmative vote for the Minister to reduce the tolls to cross the Berbice River Bridge.
Other speakers to the motion included APNU’s Amna Ally who had seconded it as well as PPP’s Faizal Jafarally and Moses Nagamootoo, the Vice Chairman of the Alliance for Change.
At one point during the vociferous debate, Minister Ali rose to object to a photo of slain Minister of Agriculture, Satyadeow Sawh being flashed by ranks in the Opposition back benches.
The Minister complained to the Speaker that he felt that it was a threat to his life as a Minister. It was pointed out to him that Government Chief Whip Gail Teixeira had only moments before been flashing a picture of Dr Walter Rodney.
That poster had the word ‘assassinated’ boldly emblazoned on it.