Latest update May 13th, 2024 12:59 AM
May 01, 2013 News
Parliament’s largest opposition bloc, A Partnership for National Unity (APNU), has defended its role in cutting almost $31.4B from the $208.8B National Budget proposed by government.
Meeting with the Private Sector Commission (PSC) last Thursday, a day after passing the amended budget, APNU said government’s continued decision to operate several accounts with billions of dollars and not include it in the budget, was among the reasons for its decisions.
“The budget understates the income/financial resources available to the Government, since it excluded the funds in NICIL, GGMC, Lotto funds, etc, which should be transferred to the Consolidated Fund,” APNU said yesterday in a statement at the meeting with PSC.
APNU’s Leader, Brigadier (Ret’d) David Granger, at the conclusion of the meeting proposed that there should be a National Economic Summit which could agree to a consensual National Development Strategy that should encompass governance issues, security sector reform and pressing national social sector issues.
There are reportedly billions in the accounts of NICIL, GGMC, the Guyana Oil Company and the Guyana Forestry Commission, but the Opposition parties have accused government of refusing to deposit these into the Consolidated Fund, which is used to fund the national budget. The National Assembly has direct oversight over the fund, but not of NICIL, GGMC or the others. It is from NICIL that monies are being taken to build the controversial Marriott Hotel in Kingston.
The meeting took place at the office of the Leader of the Opposition on Hadfield Street, Georgetown, at the request of the PSC’s Chairman, Ronald Webster.
On the APNU’s team were Shadow Ministers of Finance, Planning and Development, Carl Greenidge; Agriculture, Natural Resources and the Environment, Dr. Rupert Roopnaraine; Legal Affairs and Attorney General, Basil Williams; National Security, Winston Felix, and Policy Adviser, Lance Carberry.
According to APNU, the meeting was to discuss the outcome of the 2013 National Budget process, with particular reference to the role of APNU.
The PSC was represented by the Chairman; Executive Director, Elizabeth Alleyne; Michael Correia; Ramesh Dookhoo; Ramesh Persaud; Annette Arjoon-Martins; Kit Nascimento; Randy Storm; John Willems and Patrick Harding.
APNU said that its members pointed out to that business body that the budget affects the country’s population, with the Opposition mandated to adopt a holistic approach, taking into account the “neglect of education; the impact on public servants; the condition of the NIS; hinterland development; the conditions affecting the elderly; the cost of living; etc”.
APNU insisted that issues of legality, transparency, and constitutional conformity are important considerations for the National Assembly. “There are continuing and blatant infringements of the law by the Government.”
Criteria for projects
APNU, a 10-party coalition which has 26 seats in the National Assembly, said that the Opposition is interested in the Administration making public the criteria and process used to determine the priorities for the selection of capital projects.
“Isn’t the development of the Port of Georgetown of more immediate need than a new terminal building for the CJIA? Why does Guyana rate so highly on the Corruption Index? There is confusion with the contracts for all of the major projects.”
APNU said it pointed out that the IDB, which is financing the US$840M Amaila Falls hydro project in Region Eight, is evidently not satisfied with the details of that project. Financial closures have been pushed back again with the bank reportedly wanting to ensure that the state-owned Guyana Power and Light Inc. (GPL) is ready to deal with hydro power.
The Opposition body also said it pointed out that Government was requested, since the 2012 Budget, to present a realistic programme for the return to viability of GPL and the Guyana Sugar Corporation (GuySuCo). “This has not yet been done.”
According to APNU, the Leader of the Opposition explained that APNU/Opposition accepts that the preparation and presentation of the National Budget is the responsibility of the Executive. “However, the Opposition has the right and responsibility to bring their critical views and concerns to the attention of the Administration, before the preparation of the Budget is finalised.” The preference of the Opposition is for a “consensual” approach for the preparation of the National Budget with the political parties in the National Assembly.
TRIPARTITE PLEASE!
“It should be evident to all concerned that the tripartite approach is more likely to result in a Budget consensus than the present approach. The President has now agreed that, from 1 July 2013, when the 2014 Budget preparation process begins, the tripartite process will be activated.”
The release said that APNU’s Basil Williams stood by the Opposition’s argument that nothing stops the National Assembly from reducing the budget.
Greenidge, too, said it is the responsibility of the Opposition to subject the Budget to critical examination.
“The Opposition also raised questions about the Budget priorities of the Administration and drew attention to the high levels of destitution and poverty affecting a large proportion of the population, as well as the implications of the debt obligations imposed by a number of major projects being pursued by the Administration.”
APNU said that PSC was concerned about the possible adverse impact on the economy of the budget cuts, in areas such as the transport sector, GPL, and the Low Carbon Development Strategy, in the context of the downward movement of commodity prices.
“The expectation is that the Amaila project will relieve the Private Sector of the unstable and unreliable supply of power by the GPL which has caused many businesses to resort to the more expensive self-generation of their electrical power requirements.”
PSC also argued that the cuts will rob the economy of cash and called for a more dynamic forum for the consideration of national issues.
APNU and the Alliance For Change (AFC) essentially took control of the National Assembly with a one-seat advantage following the November 2011 General and Regional Elections. It used that advantage last year to reduce the budget by $20B, but a court decision saw the government restoring the slashed amount. This year, it was the same again, with government stating that it is contemplating going to court again.
President Donald Ramotar has said he will okay the budget in its current form to ensure that critical programmes are not delayed. However, he too has signaled possible court action.
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