FINANCE Spokesman for the Opposition, Irfaan Ali, opened the 2016 Budget debates with statements slamming the Budget prepared by the APNU-AFC coalition Government, but incensed backbencher Michael Carrington stole the show as he stood to defend the estimates.A mere two hours into the debates, Carrington said the 2016 budget overwhelmingly speaks to development in Guyana. Despite heckles, Carrington said his administration inherited from the People’s Progressive Party (PPP) a far-from-perfect system, and is working to make vital changes in the system. But despite the challenges the coalition Government faced when entering office, he said, “Guyana will blossom!”

Ali had earlier described the budget as anti-poor, saying that it is aimed at making Government officials richer. “Mr. Speaker, as I noted in my initial remarks, the ‘good life’ is an elusive dream to the average Guyanese, but (is being) enjoyed by a select few. Despite initial denial and some PR gimmicks, it is public knowledge that ministers were granted substantial increases in salaries and benefits without any consultations,” Ali declared.

The Opposition member noted that Government has failed to provide sufficient support to the sugar and rice industries, despite those industries’ contributing heavily to the national economy. “Already, the farmers are in financial distress from the sharp reduction in prices due to the mishandling of the PetroCaribe deal. The rate of default by farmers on their loan payments is alarming. Many of the farmers hear that rice is not Government business. This is an insult to the farmers, who support this economy by creating jobs, earning foreign currency and contributing to the national pie!” Ali said.

“These two sectors, which contributed over $14.9 billion to our gross domestic product, earned over $300 million in foreign currency, and supported the livelihood of poor rural communities last year!” Ali said.

SUPPORT FOR SUGAR
Government will, in 2016, inject $9 billion in GuySuCo to assist the industry in its recovery and modernisation programme. Similarly, though surpassing its target last year, the rice industry remains challenged in terms of cost of production and competitiveness. Government will continue to support the industry to access new trade partners following the collapse of the lucrative Venezuelan market.

Prime Minister Moses Nagamootoo has said that under the People’s Progressive Party/Civic (PPP/C) Government, the Guyana Sugar Corporation (GuySuCo) had suffered immensely and had accumulated a debt of $82B, but this has been trimmed by some $4B by the APNU+AFC Government in December 2015. The GuySuCo debt now stands at $78.6B, and Government has signalled its intention to further bail out the industry.

Nagamootoo recently told a forum in New York that Government has since put measures in place to further subsidise the sugar industry. He said that despite the huge debt being carried by the industry, the David Granger Administration will do all in its power to keep the industry afloat.

“We are going to try to protect the jobs of the sugar workers,” he declared.

Despite its many challenges, GuySuCo surpassed its projected target of 227,443 tonnes sugar in 2015, reaching some 229,215 tonnes. During the second crop, four estates –- Skeldon, Albion, Blairmont and Uitvlugt -– each exceeded their production target, with the Skeldon factory recording its highest output since commissioning.

Additionally, Ali said pensioners, the poor, rice farmers, sugar workers and public servants are yet to enjoy ‘the good life’ as promised by the APNU-AFC coalition.

“Unfortunately, Budget 2016 will not deliver the ‘good life’ for these Guyanese,” he said, pointed also to the non-reduction in the Value Added Tax (VAT) from 16 per cent.

Ali noted the move by the administration to put systems in place to ensure all persons seeking licences are tax complaint is burdensome.

Meanwhile, Ali’s colleague Joseph Hamilton questioned the governing side of the House on what’s being offered to the poor. “Where is the bake and salt fish? Where is the pepper pot? Where is the curry? I kept looking for the bake and salt fish for the poor people…it was elusive for the ordinary people,” he stated. “In the budget there is no meat on bones for young people…,” he added.

Hamilton chided Government on its move to review the taxes paid on alcohol, noting that lower taxes will encourage more alcohol abuse. “The cheaper the spirits, is more spirits will be drunk…there will be more drinking of spirits,” he said, noting that no consideration had been given to the public health system, but only to “political investors.”

The Finance Minister, in his budget presentation on January 29, had said Government proposes to amend the excise tax to provide for a new basis for the imposition of excise tax on alcohol for consumption. “The intent is to introduce a graduated, specific rate system for the collection of excise tax on alcohol based on the alcoholic strength. This is deemed to be the most effective way of dealing with importers and domestic manufacturers of alcoholic beverages. It will also be easier for the Guyana Revenue Authority to administer, as well as reduce significantly, opportunities for manipulating the values of the goods for the purpose of taxation,” he had said.