…Min Jordan slams nixing of Baron Foods by PPP Gov’t

FINANCE Minister Winston Jordan has assured that all investors will be afforded a level playing field within which they can operate here even as he denounced the chasing away of Baron Foods by the former administration – owing to the business owner’s ties to a then opposition politician.

The finance minister’s comments came in wake of reports by owner of Baron Foods, Ronald Ramjattan that he had applied under the PPP administration six times for land to erect his business but was unsuccessful. As a result, Guyana missed out on some US$5M in investment which was instead diverted to Trinidad and Tobago.

In a Stabroek News article dated December 17, 2017 under the heading, “Guyana lost out on US$5M investment – Baron Foods Head still hoping to set up factory here”, the Baron Foods owner said he believes politics had a role to play in him not being able to access land to establish his business here.

Notwithstanding the challenges he experienced, Ramjattan still hopes that he would be able to access land to bring his business here. “I did six, yes six applications under the last government and I want to think that it is because of Khemraj (Ramjattan, Minister of Public Security) that I never got through,” he told the Sunday Stabroek. The Baron Foods owner is the cousin of Minister of Public Security, Khemraj Ramjattan. Ramjattan had been a critic of the opposition People’s Progressive Party (PPP) while it was in office.

On Monday, Minister Jordan made it clear that under his administration’s watch business investments would not be lost. “This must never be allowed to happen, again,” he said, noting that all “investors, whether foreign or local, must be treated equally and with respect,” he said while delivering the feature address at the opening of Burger King Franchise here.

“They must feel wanted, not because of their friendship with this or that Minister or other high-ranking official, but because of their worth, the risk they intend to take, and the addition to the wealth of the nation,” the Finance Minister stated.

He said his government is working overtime to remove disincentives to investing in Guyana, and to make the climate more attractive, especially for local entrepreneurs and start-ups, as Guyana moves away from its dependence on sugar.

“We have banished the old disposition, where friends and relatives of the previous administration benefitted enormously from a variety of concessions, fire-sales and peppercorn values of the nation’s assets,” he assured even as he said the story of Baron Foods was one of “disbelief and distress”.

Meanwhile, Jordan noted that transitions are never easy and the APNU+AFC coalition government understands the fears that citizens may have. Taking those fears into consideration, the Finance Minister said the national budget was crafted to provide solutions to existing challenges.

Budget 2018, he said will see any citizen who is willing to take the risk of entrepreneurship, benefitting from the $100M Revolving Fund for small businesses. Another $150M is allocated for the Sustainable Livelihood and Entrepreneurial Development (SLED) programme, where small business and potential small business operators can benefit from training and start-up grants.

“Your Government has also recognised that in the rejigging of the economy, established businesses would need a stimulus, too. And so, we have in the space of two and a half years, lowered corporation tax; reduced VAT to 14 per cent; increased the income tax threshold so that citizens may have more disposable income; given wage increases of more than 57 percent; worked with various sectors, including Forestry and Mining, to directly address challenges to their competitiveness and expansion.”

Additionally, he disclosed that structural reforms to several agencies have started and these he said are critical to the success of the business environment. The ease of doing business, he opined is much more structured noting that protocols have been established for faster business registrations, made TAX and NIS compliance easier and strengthened the procurement process so that it can be more inclusive.

In 2018, the tax administration arm of the GRA will be further strengthened to ensure faster turnaround times for output and a special department will be established to service the top 20 percent of businesses, Jordan assured.

The Guyana Office for Investment (GO-Invest) he said will continue to craft policies and programmes to encourage more investment.

“This quantum of fiscal and developmental initiatives that we have introduced since May 2015 is unrivaled. My government has been clear on the opportunities that are available to the private sector and to citizens,” said the Finance Minister who made it clear that Guyana welcomes investments and is “open for business”.

“We will stand with any investor who is committed to the growth and development of this country that we all call home. We will hold the hands of any citizen who is willing to work to unlock the potential that has long been bandied about. We will partner with you to weather the challenges that may arise in the quest to make Guyana a better country,” Jordan declared.