PSC mum on Government’s role to stimulate economy

Economic downturn

…focuses on “bottlenecks”

Guyana’s Private Sector continues to face major challenges as a result of the precipitous downturn in the

President David Granger and Finance Minister Winston Jordan with members of the Private Sector Commission during a previous meeting

economy and the consequent limited spending power by citizens. However, Chairman of the Trade and Investment Sub-Committee of the Private Sector Commission Ramesh Dookhoo refused to comment on steps the Government could take in stimulating the economy and instead focused on bureaucratic bottlenecks that have always been a problem. Speaking with Guyana Times on Sunday, Dookhoo opined that the present burdens borne by the private sector can be alleviated by executing some key actions. “Everybody is complaining. What I would like to see is the speeding-up of containers from the wharf because you know things are slow, spending is low. What we would like to see is the Customs helping us, not to keep commercial goods especially and manufacturing goods at the wharf longer than the three days period,” he told Guyana Times in an exclusive interview. The Chairman explained that the abovementioned issue is an additional encumbrance to the private sector at this time when “business is very slow.” He was referring to the retail industry that normally peaks at Christmas but ignoring the slowdown that has affected the rice, bauxite, gold, sugar and forestry sectors that actually generate exports to bring in foreign currency. Without this influx of foreign currency, our currency would devalue and there are already worrying signs that the US dollar is trading at G$209 to US$1 instead for the G$200 to US$1 that held for years. Dookhoo in this regard averred he is encouraging the Tender Board to “speed up” the issuing of contracts in the various Regions of the country. “It is my understanding that nothing really has been issued. I urge the new chairman to speed up their work and issue contracts so that the Government’s spending gets back on track. I think that would help a great lot. We also need to speak and chalk up the economy because everybody in the world is listening to us at this point in time,” Dookhoo noted. He told this publication that the negative comments about the state of the country’s economy is doing much damage on the international market. “We have great resources… we just have to do the remedial works or the corrective works to make the economy move again,” the Chairman concluded. Other commentators, such as Ramon Gaskin, have noted that in the developed countries where the private sector is the engine of growth, the government regularly intervenes to stimulate the economy, both through monetary and fiscal policies. In Guyana however, in one particularly egregious instance where the largest employer in the country – rice industry – is in crisis over the loss of the Venezuelan market, the Government has told the farmers that “marketing is their responsibility.” It is felt that the PSC which is supposed to represent business interests has been too timid in demanding that government cease witch hunting but to embark on large infrastructural projects that might give a kick start to the economy. It is felt Government could also reduce the corporate tax rates to encourage businesses not to continue with retrenchment of workers that has already begun. Meanwhile, in the counties of Essequibo and Berbice, many businesspersons are constantly complaining to their respective Chambers of Commerce about the ‘financial squeeze’ they are experiencing. They have been more outspoken on the need for Government interventions than the PSC. Many are of the opinion that more funds need to be pumped into the public sector by the Government to allow for more spending. In Essequibo, Region Two (Pomeroon-Supenaam), this newspaper was told the economy is stagnant and businesses are not having any ‘turn over ’. Executive Member of the Essequibo Chamber of Commerce and Industry Ravi Mohan had stated last week that the situation in the Region continues to worsen as some businessmen can no longer afford to pay their staff. Rice is overwhelmingly the largest industry in Essequibo and as rice goes so does Essequibo. The Government’s disavowal of intervention with marketing of rice has hit the entire community very guard. Meanwhile, in Berbice, Region Six, (East Berbice/Corentyne), President of the Central Corentyne Chamber of Commerce Tejpaul Ajodha explained to this newspaper that the business sector is also being badly affected. He said he has received numerous complaints from businesspersons in the Central Corentyne area concerning the state of the economy and the flow of monies in the Private Sector. “Everyone is lamenting the fact that business is not what they expect. We all hope it picks up soon. We need something to stimulate the economy. We’ve got to do something,” he added. Local commentators have stated that the health of Guyana’s economy is deteriorating and are calling on the A Partnership for National Unity/Alliance for Change (APNU/AFC) Administration to focus on introducing new and innovative measures to stimulate the country’s economy. Political Commentator and Economist Ramon Gaskin has been very vocal in this regard, saying Guyana’s economy is at a “dead standstill”. Guyana Times recently spoke with some of the entrepreneurs along Regent Street who complained bitterly about the economic crisis they are facing.