Private sector must lead recover – Gaskin
By Svetlana Marshall
THE decline of global market prices for key commodities continues to take a toll on Guyana’s economy, but Minister of Investment and Business Dominic Gaskin said the country will recover through prudent investment by the government with the support of the private sector.Gaskin at the time was delivering remarks during the Georgetown Chamber of Commerce and Industry (GGCI) Annual Gala Dinner and Awards Ceremony on Thursday evening at the Pegasus Hotel.
This year has been a challenging one for the commercial sector, he said, pointing out that the six pillars of Guyana’s economy: sugar, rice, bauxite, gold, diamonds and timber have all suffered major setbacks.
“Gold started the year at about US$1200 an ounce; it is now trading around the world for US$1017 per ounce. That is a 10 per cent price drop,” Minister Gaskin pointed out.
This apparently has had a domino effect on gold declarations in Guyana.
Gold declarations for the first half of the year was down to 165,000 ounces compared to 198,000 ounces during the same period in 2014, a 16 per cent reduction.
The rice, bauxite, logging and fishing industries are experiencing similar challenges with the export of bauxite down by 18.6 per cent due to low prices on the international market.
“In a nutshell, we need to keep increasing the amount of money entering our economy if we want it to keep growing. Exports do bring money into our economy and therefore when our exports are down our economy will feel it,” Minister Gaskin admitted.
Minister of Business Dominic Gaskin and GGCI President Lance Hinds with the 2015 GCCI awardees
OPTIMISM
But he is optimistic that there will be an economic turnaround with the intervention of the A Partnership for National Unity + Alliance for Change (APNU+AFC) government.
“Our government has signalled its intention to make the necessary investments in our country’s infrastructure that will make Guyana a more attractive place for investment,” the Minister of Business stated.
The Linden-Lethem road project is among projects being targeted by the government. Though funding to execute an estimated US$10 million engineering design for the critical Linden-Lethem road is still to be sourced, government in early November had granted its no-objection for a number of contracts through which several sections of the stretch of road will undergo significant rehabilitation, using millions of dollars.
In addition to the Linden-Lethem Road, Minister Gaskin said attention is being given to the road from Parika to Goshen, while investments will be made in the energy sector, particularly alternative energy sector as well as harbour development.
“Besides creating work and injecting money into our economy, what is being developed is an efficient national transportation network that would allow a faster, safer and more affordable movement of goods and people around the country,” he explained.
The impact, he emphasised, will be significant, benefiting the mining and agriculture sectors in particular.
“An improved transportation network would significantly improve the prospects of farmers, who will be able to get this produce to processing plant at a cheaper cost.”
RENEWABLE ENERGY
Similarly, he said, investments in renewable energy will increase the country’s competitiveness in many sectors and simultaneously assist in the reduction of carbon emissions into the atmosphere.
“The high cost of energy is being identified as one of the factors that reduces our competitiveness. Investment in this sector will certainly address this particular challenge.”
But even as the government leads the way in enhancing the country’s economic performance, the Minister of Business said the private sector must continue to play a vital role by investing in critical projects and initiatives.
“There isn’t anything we can do to influence global commodity prices…. Nothing that any government can do to develop our economy will be good in the long-term, unless the private sector and public sector has a clear understanding of what our priorities are,” he emphasised.
The Ministry of Business, he said, has committed itself to this process and will continue to engage the private sector on matters of mutual concern.
At the awards ceremony were GGCI President Lance Hinds, Professor Chad Perry of the Australian Institute of Business (AIB) and members of the corporate community.
In the award segment, Dorris Lewis received the Lifetime Achievement Award, while the Bank of Nova Scotia was presented with the Corporate Citizenship Award and Eureka – the Innovation Award.
The President’s Award went to Qualfon, while the Young Business Executive Award was presented to the Managing Director of Gravity Lounge, Clairmont Cummings. Umani received the Business of the Year Award (Small to Medium) and Guyana Gold Field – Business of the Year Award (Large). Stabroek News captured the Media Award.
