PRESIDENT of the Georgetown Chambers of Commerce and Industry (GCCI), Clinton Urling, believes that it is imperative for the Government and Opposition to meet and iron out their differences on the Budget and to find compromise.

Clinton, in an exclusive interview with the Guyana Chronicle yesterday, said there has to be some level of mitigating on the part of the two sides and ensure that the fiasco that occurred last year does not repeat itself.
The combined opposition, APNU and AFC,  had slashed more than $20B from the 2012 National Expenditures despite vehement protests from Government, as well as hundreds of ordinary Guyanese who were affected by the budget cuts and virtually left on the ‘bread line’.
The matter had engaged the High Court for several months before Chief Justice (ag) Mr. Ian Chang  ruled that cuts to entities such as the Ethnic Relations Commission had been unconstitutional.
Urling yesterday lamented the hiatus of consultations prior to this year’s budget and said the GCCI was notified on Tuesday evening that A Partnership for National Unity’s point man on Finance, Carl Greenidge, was out of the jurisdiction.

GREENIDGE – A ‘NO SHOW’
Finance Minister Dr. Ashni Singh, in a statement to the media a few days ago, expressed the opinion that Opposition Leader David Granger should instruct Carl Greenidge to make himself available for the budget talks, rather than to make threats to cut a budget he has not yet seen and to impose sanctions for offences that have not been committed.
Minister Singh stated that, with the greatest respect for Mr. Granger, the Leader of the Opposition should assert his authority and instruct his own team to make themselves available to meet with the Government team, rather than to tilt at imaginary windmills in government.
The minister made the remarks in response to an article carried recently in the Stabroek News in which Mr. Granger threatened to cut the budget and to move to Parliament to sanction the Finance Minister.
The article came one day after Minister Singh disclosed that the Government has been waiting since late February for Opposition Finance spokesperson Carl Greenidge to indicate when he would be available to meet with the Government, Mr. Greenidge having previously requested a postponement of a meeting scheduled by Government for 28 February. Since then, Mr. Greenidge has failed to indicate when he would be available to have follow up discussions with Government.
“I would urge Mr. Granger to consider the budget that is eventually submitted to Parliament on its merits, rather than to make preemptive and prejudicial statements that appear to serve no purpose than pre-budget political posturing. I would also urge Mr. Granger to instruct his team to make themselves available for this important engagement and for them to approach the engagement with open minds rather that with preconceived politically motivated mindsets. What ultimately matters is for Guyana to be put first, not for APNU to show its political might by repeatedly threatening to cut the budget or to sanction a Minister unjustifiably simply because its AFC-enabled one-seat majority gives it the power to do so,” the Finance Minister chided.

TEMPERED ENVIRONMENT
Meanwhile, Urling told the Chronicle that Guyana’s determination of the 2013 Budget, which is constitutionally due by month end, must be addressed in a tempered environment and meaningful debates to avoid any parliamentary stalemate.

According to Urling, both sides have to “firstly realise that they can’t get everything that they want.”
“Everybody has to be realistic,” said Urling and reminded that it is the job of the Executive to present the budget and the role of the Combined Opposition to ensure ‘accountability’ as it relates to the public purse.
“No side will ever get all that it wants,” he posited.
Urling said there must be a concerted effort to ensure that there isn’t a peddling of misinformation in the process.
“It would be wise for them to meet,” reiterated Urling, who is of the view that both the government and opposition need to adjust their positions.
The GCCI President did applaud the fact that there will “be actual debate over the Budget” in this current parliamentary dispensation, as against previous years when the Government held a majority.
Urling said he is aware that the Guyana Government and Parliamentary opposition have met in the past in relation to the 2013 budget.
He said the GCCI too, has met with all of the stakeholders involved in the process and has indicated its desire as to what it would like to see in the budget.

GCCI input to 2013 Budget
Speaking to what the chamber has proposed in its submissions and recommendations to the 2103 National Expenditures, Urling said “a greater emphasis on security and infrastructure, particularly for the mining sector”.
He noted that the mining sector, such as in the case with gold, has emerged into being a significant contributor to the country’s Gross Domestic Product (GDP).
According to Urling, GCCI had also proposed tougher measures for dealing with the Solid Waste Management along with facilities such as a recycling plant.
The Chambers President said the Haags Bosch site located aback of the Eccles Industrial Site, will have to be paid attention to, and cautioned that its ‘first cell’ in operation, is close to being filled.
According to him, the ‘second cell’ still requires a significant amount of financial resources plugged into it, before it can become operational.
Urling indicated also that in the GCCI’s proposals to the 2013 Budget, it had also called for a reduction in a variety of taxes inclusive of the Corporation Tax.
He said the GCCI is cognisant of the recent five per cent reduction in the Corporation Tax but argues that it did not serve as a strong enough incentive and did not pose any burden on the treasury.
There can be an affordable adjustment downward in the Corporation Tax, according to Urling.
The GCCI President argues that with a greater reduction in taxes there is every likelihood that many businesses that currently evade tax obligations, would reverse, given that it would be a lot more affordable.

Keep VAT
He was adamant, also, that the Value Added Tax (VAT) should not be adjusted.
There have been repeated calls in the opposition and sections of civil society for tax to be reduced but, according to Urling, most if not all of the items of basic necessity, to the middle and lower income classes, are already zero rated.
Personal Income Tax was also flagged by the GCCI President for reduction in the GCCI’s proposal during its consultations.
Urling suggested that instead of the prevailing 33 per cent, it can be lowered to about 20 per cent.
The education sector, particularly the University of Guyana, Urling suggested, requires significant attention and said there must be ‘complete transformation’ of the nation’s lone University.