Hike in MMA/ADA rates justifiable …gov’t hammers PPP ‘duplicity’ on support for rice farmers
Prime Minister, Moses Nagamootoo
Prime Minister, Moses Nagamootoo

A MOTION, which sought to reverse an increase in land rentals and other charges by the Mahaica, Mahaicony and Abary Agricultural Development Authority (MMA/ADA) was voted down by the government following a debate in the National Assembly on Monday.

The motion was brought to the house by PPP back-bencher Dharamkumar Seeraj. His motion sought to revoke the decision made by the Ministry of Agriculture which will see farmers paying a 600% increase of $2,500 per annum to $15,000 per annum for the rental of lands in the scheme.

Seeraj, in presenting his motion, criticised the government for not holding any consultation with the farmers but to just simply inform them of the increase. He described the increase as unnecessary and insensitive since the economy is in no insignificant way based on the contributions of the agricultural sector unable to sustain the project with the previous rates.

With the same breath, Seeraj posited that the industry is experiencing difficulty at this time and therefore needs support rather than taxation and increases.

“It does not make economic sense at this point in time, increase taxation for a sector that is going through a hard time when you yourself recognize that the sector is going through a difficult time and,sir,it does not augur well for good relationship…I find that very unpleasant and insensitive to our farming folks…farmers are getting 30 and 40% less for their paddy prior to the increase,” the opposition MP said.

He continued to argue that the issue is one of bread and butter for thousands in the farming community who have been voicing their concerns at several forums.

“How is it that they will be able to bear the burden of these increases…and again we call on the government to recognize the productive sector if it is doing well, can solve so many problems and if it is not doing well, at times when it is it not doing well, then it needs support…Don’t tax us more…at a time when we are not doing so well,which will have a negative ripple effect on the entire country,” he exclaimed.

However, Minister of Agriculture,Noel Holder in his response said that the MMA/ ADA is experiencing difficulties since it supports nearly half of the national rice production, about 30-35% of all livestock production and 10-15% of the national sugar production.

He added that the Authority is responsible for the operation and maintenance of the 784 miles of drainage and irrigation canals, 381 structures, including kokers, sluices, bridges, aqueducts and regulators and 4 pump stations and a total of 169, 878 acres of land are beneficially occupied for agricultural purposes.

Holder revealed that the farmers were required to pay $2,500 per acre annually which amounted to $208 per month despite the increasing cost of materials and supplies in the provision of D&I services by the MMA/ADA. Despite this low cost, some farmers were not honouring their payments.

“Despite such a low cost for land,and drainage and irrigation services provided by the state, some sections of farmers were still not keeping their end of the agreement, by paying their lease rates as stipulated by the MMM/ ADA,” he told the House.

Holder went on to debate that the provision of these drainage and irrigation services are financed from charges levied on the users of the services and that no budgetary appropriations are received for these services in these blocks.

“Surely, Mr. Speaker, these charges cannot be considered onerous. Indeed, some people might

PPP MP, Dharamkumar Seeraj

consider such monthly charges for one acre of land the equivalent of 8 full house lots or 16y half lots as obtained in our capital city of Georgetown, as ridiculously low.

“Again, Mr. Speaker, I humbly submit that by no stretch of the imagination and under no set of circumstances, can these charges be considered exorbitant or present a burden on stakeholders. Mr. Speaker, for these reasons I cannot recommend support for this motion by this Honourable House.”

Without merit
Supporting Mr Holder was Prime Minister Moses Nagamootoo who described the motion as one without merit since the increases are justifiable, reasonable and necessary. The decision he said was one made by a prudent government that refuses to allow the Authority to become bankrupt.

“A prudent Government cannot allow what had happened to GuySuCo under the watch of the previous government to visit the MMA and prudent management would require that certain lawful measures be taken to ensure that the MMA does not become a drag on the treasury.”

“Too much is at stake in the lives of both the sugar workers and rice farmers and cattle rearers and cash crop producers to allow the MMA to go down without a policy that would ensure that farmers receive the services to which they are entitled,” he said

The Prime Minister also posited that contrary to arguments of the opposition, the increase was not done suddenly or arbitrarily but was a plan well sorted out since the government realised that the MMA ADA cannot sustain its operations.

“The MMA had faced a situation of being closed to bankruptcy and in order for them to recover the uses of the land,they resorted to repossession,” the PM disclosed, adding that 58 separate instances of repossession and reallocation were done since those who had separate usage of the land were not paying.

Another PPP back-bencher, Nigel Dharamlall, who also called for the revocation of the increase contended that the increase is terribly illogical and counterproductive to agriculture and that the arguments do not lie on the increase but the mere fact that the farmers simply cannot afford it.

“When we multiply that by the 200 plus taxes that we have in our country that is where our problem is, it is about the hardship that people face on a daily bases, so for the government who earns supper fat cat salaries they can afford it, but poor farmers in this country cannot afford a single dollar more and when you lump all of these taxes and increases on farmers, then Mr. Speaker, our problems in this country are progressively getting worst,” Dharamlall said.

He said that the failure of the rice industry in Region 5 will affect the region tremendously and will dislocate up to 48, 000 households who depend on rice entirely.

“When rice fails, the entire region has failed,” the MP said adding that the move will see an increase in crime and unemployment.

APNU+AFC Region Five MP, Jennifer Wade in her contributions said she looks forwards to a more developed agricultural sector since she said that farmers utilising MMA/ADA lands have experienced some amount of neglect since monies were unavailable to develope and maintain lands. Attorney General Basil Williams said that the government is in no way acting out of order, but within full legislative rights.

“Might I respectfully refer you, sir, and the honourable members to sections 25:32of the MMA/ADA Act Chapter 70:01 which makes provision for financial procedures of the authority. The Act provides that state lands within the area held under a lease licence or permission in the possession or occupation of any person shall be liable and subject to charges for drainage and irrigation services, as well as rent charges,” Minister Williams noted.

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