By Rehana Ahamad

THE Government is today expected to table, in the National Assembly, a Hire Purchase Bill which is expected to bring significant relief to the majority of Guyanese consumers. During an NCN televised programme called ‘The Parliamentary Agenda’, hosted by Producer Mark Watson, Minister of Tourism, Industry and Commerce, Oneidge Walrond, accompanied by Senior Minister in the Office of the President with responsibility for Finance, Dr. Ashni Singh, explained the benefits of the landmark bill.
Minister Walrond believes that once enacted, the bill will transform the lives of the majority of Guyanese consumers who are unable to make cash purchases of items needed to improve their lives. The minister made specific reference to items such as washing machines and motorcars that are usually acquired through credit purchases, at great risks to buyers.
“What we have found is because of lack of regulatory framework for these types of arrangements, common people are being taken advantage of,” Walrond posited.

She explained that the Hire Purchase Bill will serve as a protection tool for buyers, against “onerous” and “unscrupulous” business establishments.
The minister gave an example of persons having their items repossessed, without notice, having almost completed payments for the item. “We have had hundreds of complaints of these hire purchase arrangements that have particularly disadvantaged the people,” Minister Walrond noted.

Once the new regulations are in place, Guyanese buyers will have the luxury of mending mistakes that come from impulse purchases. According to Minister Walrond, the bill provides for seven days of “cooling off period”, which would give buyers the opportunity to return an item that they have regretted buying.
“The seller has to accept it back from you… we have all had buyers’ remorse… you take it home and then you realise, ‘oh, I really shouldn’t have done this’,” minister Walrond reasoned.
She said too that once the bill is passed, it will mandate sellers to explain prices and procedures to buyers, whereas sellers would have to specifically declare cash prices for an item, along with the hire purchase cost of the same item.
This component of the bill, Walrond said, is geared at eliminating financial jargons that often see hire purchase prices being shrouded in secrecy. “If you don’t disclose [the prices], there will be criminal penalties,” the Commerce Minister said.
She noted, too, that while the bill serves as a protection tool for consumers, it will also bring major benefits to businesses throughout Guyana. The minister pointed to the fact that the advent of a proper framework would also encourage many more persons to make purchases via credit, as it will no longer be a mere risk.

COMPREHENSIVE MODERNISATION

Dr. Ashni Singh remarked that the Hire Purchase Bill is an addition to Government’s agenda to comprehensively modernise all areas of Guyana, including the financial and commerce sectors. “Buying on credit is a staple aspect of life in most modern and advanced societies,” Minister Singh said. He noted that Guyana has many sellers who resort to conducting cash transactions, since there are often faced with concerns of unpredictability and lack of protection that come from entering hire purchase arrangements.
“As we become increasingly a more modern society, which is unavoidably going to be a society that is going to be characterised by modern ways of doing business, including doing business on credit and hire purchase, it is important that we have a sound and legal framework that will facilitate those transactions and encourage more people to do such transactions, but in a predictable environment,” Dr. Singh noted.

As Guyana continues its course to advancement, the Finance Minister believes that the potential for buying and selling on credit will inevitably increase dramatically. “Disposable incomes are going to be increasing; people are going to want to acquire these items [vehicles etc] for comfort,” Dr. Singh added.
Nonetheless, the Government is also expected to present a bill to amend aspects of the Fiscal Management and Accountability Act which was initially passed in 2003, and further amended in 2015 by the previous APNU+AFC Government. The 2003 Act had replaced the colonial Financial Administration and Audit Act.
Additionally, the National Assembly will also be presenting considerations for the amendment of the 2004 Small Businesses Act. These amendments, according to Minister Walrond, are geared at “levelling the playing field” for small businesses. The edits to the Act will also pave the way for small contractors to participate in major infrastructural projects.