THERE is a slowdown in private sector activities locally that can possibly be attributed to the “constant hardened positions in Parliament” prompting the Private Sector Commission (PSC) to call on the National Assembly as whole to “act in concert to promote the best interest and longer term interest of the National economy.”

Compounding the hardline stances adopted by the combined opposition, according to the PSC, is the less than favourable international economic climate, now compounded by the recent drop in gold prices.
The Private Sector body that had come in loud praise of the 2013 Budget says that ever since its public pronouncement “we have seen a further decline in commodity prices in particular gold and it is essential that all steps possible are taken now to expand and diversify the economy.”

In light of the prevailing circumstances the PSC has now come in open condemnation of proposed cuts by the opposition.
The organised body for private sector businesses in Guyana says it “is deeply concerned by the reports of plans by the political opposition to reduce the funding and in many cases to totally eliminate funding for important national development projects in the 2013 budget.”
According to the Commission it is “particularly concerned over reports of plans to reduce allocations for the vital security reform strategy, the road to the Amaila Falls project and the competitiveness programme for which the PSC has spent much time and effort to ensure changes to the business environment and is in fact a functioning programme that has brought tremendous benefit to the Business environment in Guyana.”
Moreover the Commission says that it is “extremely disappointed over the targeting of the airport development project to be totally eliminated from the budget.”
According to the Commission “this airport project is vital to the safety of international air traffic into and out of our country as well as the continued modernisation and expansion of the travel and tourism sector.”
The Commission in a public missive yesterday, mere hours before legislators are set to begin consideration of the estimates today, reminded that it is in full support of continued improvements to the  accountability and transparency systems and encourage the development of the institutions that must ensure same at all times.”
The body says however that the “transformational nature of the targeted projects are very worrying and are in fact very detrimental to the continued development trajectory that the country is on and are important to the future of business development of Guyana.”
The body has since called on “all concerned” to ensure that, in consideration of the Estimates, any alteration to the Budget is done in the national interest, and adds also that it is, heartened by the plans of the government and the Parliamentary Opposition to continue to meet in advance of today’s parliamentary session.
“We are hopeful that the spirit of reasonableness of what is good for our country will guide these negotiations.”
“We appeal to all parties to put Guyana first; if you are recommending a budget cut, we urge you to have an alternative plan,” the PSC urged.
The PSC’s position comes on the heels of an outright condemnation on the part of the Government as it relates to the signaled cuts by the opposition in the House.
On Saturday last Agriculture Minister, Dr Leslie Ramsammy in an emergency press briefing at the ministry’s boardroom rejected the positions adopted by the opposition as outlined in the proposed 2013 budget cuts, calling them, “wicked and unacceptable.”
Dr Ramsammy told reporters that as Minister of Agriculture, and further, as a citizen of Guyana, “I find this (overall budget cut) as repulsive. It is an abominable act to target pumps that are absolutely required not only for the development of our country, but to promote better standard of living to our people…To target people like this is wicked and unacceptable.”
Dr Ramsammy further said: “Whatever problems they have with me or (with the) Peoples Progressive Party / Civic (PPP/C) should not be extended to penalise the ordinary people.”
Attorney General and Minister of Legal Affairs, Anil Nandlall, had suggested that the move proposed by the opposition sets Guyana on a “highway to anarchy.”
He said: “The supreme law of this land forbids the National Assembly from reducing or amending the estimates presented by the Minister of Finance (Dr Ashni Singh) for the year 2013.”
In his proposed arguments against the cuts that have been identified, Nandlall drew reference to the ruling by the Chief Justice (ag) Ian Chang, which he said clearly confirmed that the opposition has no power under the Constitution to reduce or amend these estimates.
Chief Justice Ian Chang
As such, the minister says he believes that by signalling its intention to still go ahead and make cuts to the 2013 budget, “the joint opposition are demonstrating to the world their naked and vulgar disregard for the Constitution, the rule of law and the democratic norms and tradition of Parliament.”
Finance Minister, Dr Ashni Singh in his latest pronouncement on the proposed cuts by the combined opposition said government has to be able to strike that delicate balance between the country’s immediate needs and investments that will ensure future development.
The minister explained that “just as none of you will spend all of your income and deny your children the opportunity of higher education, so must your government ensure that we do not, as a country, consume all that we generate and fail to make long-term investments for our children.”
Budget 2013 is crafted within a framework that meets the most immediate and urgent needs of Guyana today, while at the same time catering for the investments that are critical for the long-term future of Guyana.
The AFC has proposed to slash by almost half ($200M) the salaries and several other current expenses of the Office of the President (OP), inclusive of security services.
The Ministry of Finance staff salaries have been identified for an AFC $200M reduction via the chopping block; while a slash of salaries for employees contracted by the Local Government Ministry would leave them with only 50% of what is actually needed to properly remunerate them.
The Public Works Ministry’s allocation of $384M for staff wages and salaries is to undergo cuts of $355M should the AFC have its way.
The Guyana Elections Commission is slated for similarly unfavourable treatment, in that the AFC proposes to cut the GECOM allocations for local travel and subsistence, security services, and payment of wages and salaries by several hundred million dollars.
Ramjattan and the AFC also propose to slash every dollar in subventions allocated for the National Communications Network (NCN) and the Government Information Agency (GINA).
GINA had been allocated approximately $135.8M for its operations in 2013, and the AFC proposes to reduce that amount to zero; while the same fate obtains for the $81M subvention that had been identified for NCN.
The Ministry of Culture, Youth and Sport could also see the AFC trimming from the budget at least $100M of its allocation for 2013, even though that money has been allocated by the Finance Ministry for the Sports and Art Development Fund.
The AFC has also threatened to deny the Board of Industrial Training its entire allocation of $224M.
While there has been a $10.2-billion-dollar transfer of funds announced for the Guyana Power and Light (GPL) under the Office of the Prime Minister, the AFC has signalled its intention to reduce that amount by more than $6.2B.
Government speakers to the general policy debate in the House over the preceding two weeks had indicated that the money earmarked for GPL is meant to stave off any possible increase in tariffs that would be required to be met by consumers.
The globally recognized and lauded Low Carbon Development Strategy (LCDS) programme, which had been the largest victim of the 2012 cuts is, again this year, identified for repetitive treatment, with the AFC looking to remove $19B of the $20B allocated, reducing a progressive and innovative programme – one of the brainchild projects of former President Dr. Bharrat Jagdeo – to $1B.
Construction of several critical roads has also been identified for slashing, inclusive of the one required for construction of the Amaila Falls Hydro Electric project. According to the proposals set out by Ramjattan, of the $2.3B earmarked for completion of the access road, paving the way for start of construction of the hydro-power plant at Amaila Falls, $1B will be slashed from it.
The East Bank Improvement Project, wherein that critical artery would be upgraded, has also been identified for reduction of allocation by more than half a billion dollars.
Meanwhile, expansion of the Cheddi Jagan International Airport at Timehri, one of the flagship projects for the nation, has had its entire $5.3B allocation reduced, in Ramjattan’s proposals, to zero.
The Ministry of Home Affairs has also not been spared the proverbial surgeon’s knife. Allocations for its Citizen Security Programme have been slashed by half a billion dollars; while the more than $1.2B identified for construction of the Specialty Hospital at Liliendaal has also been decapitated.
Moreover, the AFC has proposed in its cuts that capital works to be undertaken by the National Drainage & Irrigation Authority (NDIA) be reduced from the $1.4B allocated to $586M.
This, according to Dr Ramsammy, represents an almost sixty percent slash in monies allocated for the completion of the Hope Canal and the supply of the 14 pumps.