– Capt Gerry Gouveia

THE PRIVATE SECTOR continues to contribute significantly towards Guyana’s economic growth by commanding multi-billion-dollar inflows into the national treasury; but budget cuts would definitely have a negative impact on the activities of the private sector, according to former chairman of the Private Sector Commission (PSC) and CEO of the Roraima Group of Companies, Cpt. Gerry Gouveia.

During his 2014 Budget Presentation in the National Assembly, Finance Minister Dr. Ashni Singh, in noting the important role the private sector plays in Guyana’s economy, assured that the private sector has been created within an environment in which its members can invest in profitable enterprises, expand production of goods and services, and create jobs.

Notwithstanding this enabling environment, the combined Opposition (APNU/AFC) joined forces in the National Assembly, last Thursday, and voted against the $6.5B allocated to the expansion of the CJIA. This vote against the project also affected funding for other aviation services, since all such expenditures fall under the same category.

Capt Gerry Gouveia explained, yesterday, that he was “stunned” at the decision of the Opposition to vote against funding for the Cheddi Jagan International Airport expansion. He described this development as “having everything to do with undermining and destroying the efforts to promote tourism in Guyana”.

He explained that touching the money earmarked in the budget for expansion of the CJIA is tantamount to endangering the lives of people, as the development and safety of airstrips is limited through these actions.

“I am stunned and shocked that (the combined Opposition) would be playing politics with something so vitally important to people’s safety; to the creation of jobs; and (to) tourism development,” he said.

The former PSC chairman stressed that these types of actions by the Opposition would send the wrong signals to the world at large. “Already, Jurgen Lippinkof (Chief Commercial Officer of the newly launched Insel Airlines) said that his bank in Curacao is asking them about Insel’s concerns about the AML Bill and registration, and how they will affect their businesses,” he said.

These evolving situations, he noted, will have rippling effects in business development, which will affect job creation for young people.

Chairman of the Private Sector Commission (PSC), Mr Ronald Webster, had remarked, prior to the Opposition’s disapproval of the funding for the CJIA expansion, that he was very pleased with Budget 2014, and had exalted recognition of the interior roads.

However, the private sector’s new position following parliamentary disapproval of funds earmarked for the CJIA expansion and the billion dollars budgeted for Amerindian development is unknown, since efforts to contact the Chairman proved futile as a result of him being out of the country on business.

In the 2014 Budget Presentation, it was noted that credit to the private sector expanded by 14.5 percent, reflecting growth in all sectors. The manufacturing, construction and engineering, personal and real estate sectors grew by 22 percent, 18.8 percent, 17.4 percent and 16.9 percent respectively.
During 2013, the weighted average lending rate of the commercial banks increased by eight basis points to 11.16 percent, reflecting a marginal increase from 11.08 percent in 2012. Notwithstanding this movement, private sector credit continued to expand. The small savings rate declined by 36 basis points to 1.33 percent, while the 91-day Treasury Bill rate remained stable at 1.45 percent.

(By Ravin Singh)