Thank you Gerhard for providing insight and perspective on this contentious issue which is being shamelessly exploited by PPP scoundrels [and their retinue of ignorant demagogues and sly racists] for cheap political gain . . . these bums look only to their own unfettered power, and would willingly destroy Guyana to 'preserve' it.

The AFC is, admirably, taking the political risk of tackling a subject whose complexity is not easily addressed in an easily-digested slogan.

Hear this, "as long as the Govt and taxpayers are asked to plug the gap" so Lindeners get cheaper electricity than the rest of Guyana....it is a subsidy.  If BOSAI does not want to provide the subsidy any longer, does not mean the Govt should pick it up.  So, as I said, in the interest of the people, the Govt should, at best, work out a phase-out with BOSAI or with the people.

Guysuco is a company and the Govt is subsidizing viability.  This is not a subsidy for cheap electricity for sugar workers.  Understand the difference.  However, I do not support this open-ended either.  Guysuco should have a path to independent viability free of subsidies.

Why do you say I "abhorr" all subsidies?  You are very very simple minded my man, very.  You need to get beyond headlines and cheap politics.  Farming subsidy to ensure (registered) farmers are protected from uncontrollable losses and price fluctuations giving farmers predictability thus ensuring adequate national food supplies IS a subsidy well worth it.  However, there should be conditions and standards, i.e. they must be registered and/or file taxes as a qualifying farmer, e.g. at least 70% of income derived from farming.

Oh yes, I can hear you and your cheer leaders, just because most farmers are Indian, I support it.  But relax, pig husbandry also falls into this category.

Oh man...have I been speaking to a wall?  Nothing you have said here represents what I have been saying!  Nothing!

I repeat, if the applicable pricing model is applied, that is, marginal pricing, there will be no gap, or at worst, only a small gap, to fill.  In that regard I am not calling on Gov't or taxpayers to fill the gap, but to renegotiate with BOSAI so that the correct pricing model is applied.  Thereafter, should a gap remain, I am saying it should be BOSAI filling that gap in lieu of the negative externalities from their operations.

I have said this umpteen times now - please, what is it about this that you still do not understand????

I thank you for clearing the air on subsidies.  Now, a subsidy on electricity can also help build capacity, especially in a town like Linden through which most miners in Guyana traverse, and who would require arc-welding services.  However, I am not arguing for this right now.  Please understand that, and let us close the issue of subsidies at this stage.  Please focus on what I am saying in the second paragraph here.

You see Gerhard, I understand what you say clearly but your logic is upside and massively flawed.  Now you saying/implying to strong-arm BOSAI like Burnham did in his days, basically blackmail them.  Are you contemplating a revisit of the Burnham era?  Where does it end, what message you sending to investors?

Gerhard, it just does not work like that. BOSAI will ask for concessions from the GoG, the burden which will fall on the rest of Guyana, so effectively, the rest of Guyana will subsidize.  You have no clue what you getting into.  This is just cheap political gimmickry and demagoguery which even you seem not to have a well thought-thru position.

Regarding a concession for small entrepreneurs of high electricity usage, I COULD SEE justification for that position.  But that's not the battle you chose to fight.  I could understand that to a point and for a time with some of the conditions which I highlighted for farmers.

How could get getting BOSAI to do right thing, at no loss to them, to boot, be considered strong-arming?  You say my arguments are "massively flawed", but what about the flip side which is allowing BOSAI to profiteer off of the power plant???

Isn't it profiteering when you require a power plant for your own needs, and then apply full-cost pricing for the surplus you sell?  This is not GPL, bro, which is in the business of selling electricity!  And moreover, you have negative externalities.  Doesn't this make the profiteering that is going on, even worse???

All the Gov't is doing here is moving the burden from all taxpayers to only Lindeners now to facilitate the profiteering by BOSAI.  That is what is happening, and you say correcting this would amount to strong-arming?  Really????

What possible concessions could BOSAI ask the Gov't for?  They are already receiving duty-free fuel for their operations, including the power plant!  Whatever costs they incurred in rehabilitating the power plant are costs they would have had to incur as part of their operations anyway - whether they were supplying Linden or not.  Bear in mind too, the exploded turbine notwithstanding, the plant BOSAI took over had enormous excess capacity. In its heyday it not only supplied the needs of the now decommissioned walking draglines, but fed excess into the national grid beyond Linden as well!

And that brings another argument into play.  For the years that excess was supplied to the national grid, it was under a marginal pricing policy!  So why is it so abhorrent today for Linden to enjoy that kind of pricing???  Your answer as to why not being because it is a private company reeks to high heavens!!  

You really see no flaw in the Gov't's negotiations with BOSAI?  You really cannot see that full-cost pricing on the backs of the taxpayers would have allowed BOSAI an unusual recovery of its investment in the power plant, perhaps several times over???  You are talking G$15.6B (US$7.8M) over the past 6 years!!!  And that is just the subsidy and not counting what Linden would have paid over the 6 years.  And then you have the gall to suggest that if BOSAI today was asked to do the right thing, that they could make demands for more concessions???  Oh come on!

I have had my differences with Baseman, but what he is saying here seems eminently reasonable.

I am picking up this story en media rez so  clarify if I am wrong. Bosai, a company given the benefit of extensive subsidies in terms of tax breaks and import concessions plus the equity of our bauxite has boot strapped itself into profitability even with its offering of low cost electricity.

Its only connection to GPL is the fact it produces electricity. Its only connection to the pricing structure of GPL is it does a better job comparatively speaking in  production and delivery. It is self evident since it is profitable. So what is the problem?

We look at our society as one entity because of the way the political power organize their control. If these regions were locally controlled and they could make their arrangement with Bosai as states and county administrations do other western nations would we be arguing that these people should pay the same rate as is paid in corentyne? The economic needs and the economic strategies to meet those needs are not the same.

I take it then, that both of you have no issue with BOSAI's profiteering off of the power plant?

I am picking up this story en media rez so  clarify if I am wrong. Bosai, a company given the benefit of extensive subsidies in terms of tax breaks and import concessions plus the equity of our bauxite has boot strapped itself into profitability even with its offering of low cost electricity.

Its only connection to GPL is the fact it produces electricity. Its only connection to the pricing structure of GPL is it does a better job comparatively speaking in  production and delivery. It is self evident since it is profitable. So what is the problem?

We look at our society as one entity because of the way the political power organize their control. If these regions were locally controlled and they could make their arrangement with Bosai as states and county administrations do other western nations would we be arguing that these people should pay the same rate as is paid in corentyne? The economic needs and the economic strategies to meet those needs are not the same.

I take it then, that both of you have no issue with BOSAI's profiteering off of the power plant?

Stormborn pointed out the fallacy of the "national average" argument.  Linden's situation is unique in a number of ways.  It is a depressed community that suffers from widespread pollution from BOSAI's operations.  The community has also been a victim of corruption (shoddy public works) and deliberate short-sighted policies by the PPP (as highlighted in my article).  

Now, BOSAI needs power for itself so it should pay for that.  Anything above that, that relates to BOSAI supplying electricity to the community should be paid for by the community.  Though, due consideration must also be given for the unique pollution Linden suffers at the hands of BOSAI.

You can accuse of me of what you want, baseman and Uncle Henry, but until you refute my arguments point for point, your motives will remain suspect.

Then, please, go ahead and show the lack of coherence and logic in my arguments, point for point.  I have written enough for readers to discern my motive.  You, on the other hand, have simply blanket refuted what I have argued for, and seek to divert the issue to that of "national average".  That speaks for itself.

And what does it "speak".

I don't expect you to see the meandering and lack of coherency of your position as you are on that line of thinking.  But, apart from those self-served, it does not stand any test of logic.

You are yet to show how so.  I rest.

"Self-served":

• As the Lindeners who stand to benefit and
• political opportunists who wish to score political points at any and all costs.

They will find "logic", regardless how convoluted their argument is.

Again, which you are yet to show.  Didn't I say, I rest?  And I shall until you attempt to actually address my arguments.

They lack basis in principle, so where to start. I told you the principle of my position umteen times.  GR, you are on the losing side and the GoG is correct in its position, in principle.

So Linden is unique and the rest of Guyana is out in the cold. ASS KISSING FOR POLITICAL GAINS IS SOMETHING NATURAL TO YOU. I AM NOT AT ALL SURPRISE. YOU WILL SELL MORE THAN FLOWERS TO GAIN POPULARITY!!!!

Then please, show how Linden is not unique.  The floor is yours.

You can accuse of me of what you want, baseman and Uncle Henry, but until you refute my arguments point for point, your motives will remain suspect.

So, should I assume then that because I am not entirely pleased with your responses to my earlier posts, I would be entirely justified in insinuating that you are a kleptomaniac, a transvestite and a jaywalker?

Absolutely yes, they should pay like anyone else, what makes them different, there are many people living in abject poverty and have to pay.  You and your "welfare" mind, you have a lot of nerve, but no legs.  The only fairness entitlement is a phase-out rather than an abrupt change.

Why don't you take them to court if you feel the violate a contract with the people.

B-crap, was that for generating cheap electricity for?  You, GR, none of you have a leg to stand on.  Just cheap politics.  As I said, it's unjust if Lindeners are asked to pay more than the rest of Guyana.

I think you are to economics what a crab is to Haute cuisine. The matter here is an subsidized industry taking over a community asset ( if national as well) and giving back its excess and making a profit in the process. IF BOSAI is hurting and needs the cash then let us know that.

The people of Skeldon were to benefit of from the 5 top 10 Mega watt excess productive capacity from the sugar plant there. If you are speaking to the allocation of funds what makes them special to receive some 300 million subsidy to build that plant from the national asset? You are just another of the PPPite racist worm trying to make political hay of a poor decision.

Don't try to cull the welfare crap again. Are the Berbicians on welfare if the present budget asks for 4 billion dollars subsidy to an already malfeasance and mismanagement plagued industry?

BOSAI must say their rate increases on par with the GPL grid is warranted. After all they are given our resources to exploit, tax incentive to exploit it and lots of import exemptions etc. They are an independent company with no relations to GPL so their accounting must be on those terms.

B-crap, was that for generating cheap electricity for?  You, GR, none of you have a leg to stand on.  Just cheap politics.  As I said, it's unjust if Lindeners are asked to pay more than the rest of Guyana.

I think you are to economics what a crab is to Haute cuisine. The matter here is an subsidized industry taking over a community asset ( if national as well) and giving back its excess and making a profit in the process. IF BOSAI is hurting and needs the cash then let us know that.

The people of Skeldon were to benefit of from the 5 top 10 Mega watt excess productive capacity from the sugar plant there. If you are speaking to the allocation of funds what makes them special to receive some 300 million subsidy to build that plant from the national asset? You are just another of the PPPite racist worm trying to make political hay of a poor decision.

Don't try to cull the welfare crap again. Are the Berbicians on welfare if the present budget asks for 4 billion dollars subsidy to an already malfeasance and mismanagement plagued industry?

BOSAI must say their rate increases on par with the GPL grid is warranted. After all they are given our resources to exploit, tax incentive to exploit it and lots of import exemptions etc. They are an independent company with no relations to GPL so their accounting must be on those terms.

Weak and stupid justification.  Are sugar workers getting preferential electricity?

BOSAI operates under the rules of the GoG and has to follow such rules.  Infact the GoG should not allow and private company offering deep-discount rates en-masse.  This creates problems of the type we see today.

They are given "our" resources to exploit, well then you go and exploit it or shut your trap and drive your Escalade.

Have you heard of point counter point in argumentation or has your racism overwhelmed even that? The point you made was that there is an equivalency between the rates of Lindeners and that of others. I ask how so?

BOSAI is an independent entity given much of our states largess as subsidy to its business so if it can make a profit and yet give lindeners their electricity at a premium rate why are they deemed parasites? Are they not a special case where the resources local to them is employed to help them with their bills?