A good budget must give each citizen a sense of fairness, optimism- Hughes

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“I cannot but weep for my people, the people of Guyana, who had hoped that they would see in this budget a true understanding of the role of any government: the need to put their people first; to see that the benefits gained from the oil boom could create real time transformation in people’s lives.  I had earnestly hoped that this budget would showcase a change of thinking on the part of the PPP/C, that they would have seen what could be done with the resources we now have available and that they would have had the moral inclination to do so.  Alas, it was to no avail,” were the words of Member of Parliament (M.P) Mrs. Cathy Hughes.

 

Hughes, Chairman of the Alliance for Change (AFC) and representative in the National Assembly, in her Budget presentation last Friday stated that “In addition to the lack of understanding of the needs of the Guyanese populace that has been highlighted in this budget presentation is the willingness to defend its inadequacies with a spate of inaccuracies and in some cases outright lies that are mind boggling, to say the least.”

 

Reminding Members of their role as elected representatives of the people, the M.P said their aim is to ensure providence of the means for every Guyanese to “live full lives, have access to quality healthcare, education, the means to earn a living wage, provide for them a dignified old age and to use the country’s resources towards that purpose”

 

To this end the M.P posited several questions about budget 2023, on behalf of the Guyanese populace and herself, such as: –

 

• How does this budget contribute to better lives for our people?
• How does it improve education and healthcare?
• How does it allow for our people to have the resources to live comfortably?
• How does it add dignity to the lives of our elderly?

 

She made known a budget has the responsibility to articulate a vision– what will this country look like in five years, ten years and to engender hope in these difficult times of rising cost of living.

 

“Mr. Speaker, a good budget must give each citizen a sense of fairness, optimism- that we will each get a piece of the pie. A real vision cannot be found amongst the collection of large infrastructure projects thrown together.”

 

“The question is how we prioritise the welfare of all our citizens- our children, our pensioners, those with special needs and how this budget treats these groups must be the number one consideration.  Mr. Speaker this is the ‘largest budget yet’ this budget highlights that ‘largest’ doesn’t necessarily mean better spending and better results.  The quality and quantity of the spending must be examined.”

 

In the $781.9 billion budget, the first to benefit from $31.3 billion from the sale of carbon credits alongside the transfer of $208.9 billion from the national resource fund. Real GDP grew by 25,1% and the US dollar has been relatively stable over the last two years. “All good Mr. Speaker,” she highlighted.

 

The M.P dispensed with credit where she felt due in assessment of the Budget.

 

“Mr. Speaker – regardless of how you cut it our nation would be in a totally different place today had the APNU/AFC coalition not pushed the development of our oil and gas industry as a good government would have been expected to do. What is sad is the Minister’s constant tirade that he collected a damaged economy in 2020,” she pointed out.

 

Coalition government’s management of the emerging oil economy

 

She quoted Minister Ashni Singh, “since assuming office, our government set about the task of repairing the deep and lasting damage caused by five years of misrule and mismanagement.”

 

And countered, “Mr. Speaker, nothing could be further from the truth. The Minister’s talk of “Intellectual dishonesty” aptly describes him.  For the period he describes here is the IMF’s assessment! Mr. Speaker the shouts that nothing was done were resounding! But here are the facts on the emergence of Guyana’s oil and gas industry which we so carefully chartered so all Guyana could reap the benefits today reflected in this massive budget.”

 

On “the Road to First Oil 2015-2019…what we achieved in 4 short years when the international start up time is usually 9 years and with limitations on spending after 2018!

 

– Strengthened GGMC, GRA, EPA

– Signed New Agreement in 2016

– Signed Production Licence In 2017

– Review of all laws and regulations relating to Oil and Gas

– Established EITI – 2017

-Established the department of energy

-held the first ever oil and gas international conference GIPEX in Feb 2018 – 650 persons participated in GIPEX 2018, with 450 paying delegates and the remainder were government officials and diplomats, international public servants, and special interest parties. This continues as it should today-even in the same month!” she pointed out.

 

She continued-

“Bilateral Partnerships/MoUs Entered into For Training and Support With: – World Bank, – IDB, – IMF, Chatham House Royal Institute, Oxford University, Government of Trinidad & Tobago, Government of Mexico, Commonwealth Secretariat

– Govt of Uganda’s and Norway’s Petroleum Directorate.

– The US Government’s Energy Governance Capacity Initiative (EGCI) that supported us in oil spill resilience and response.

 

“Tons and tons of work was done Mr. Speaker by hard working committed Guyanese in the various Ministries and Agencies simultaneously – Natural Resources, Finance, Public Infrastructure, Business, Foreign Affairs, GGMC, GRA, EPA, MARAD, GDF…Give them some Credit where it is due, Mr. Speaker.”

 

APNU+AFC Government vs PPP/C Government

 

Turning attention to inflation within years, the M.P pointed out in 2016 inflation rate was 1.4%, 2017 – 1.5%, 2018 1.6% and 2019 – 0.1 % under the coalition government, compared to today where it is “a whopping 7.2% and rising as increases in food costs highlights” the absence of prudent management of the inflation rate.

 

“At Appendix 6 in the Budget presentation speech, note the rapid increase in the total public and publicly guaranteed debt. We went back to 2018 when it was $1.79 B, $1.75B in 2019…it went up to $ 2.5B in 2020 and $ 3.1 B in 2021, $ 3.5B, $3.6 and $4.4B expected this year,” she highlighted.

 

Again, she quoted the Minister who stated on page 26 “since returning to office we have invested over $10 B in plant and equipment” This year sugar gets over $4 Billion. Yet Mr. Speaker when the coalition so called mismanaged the industry, we produced in 2019 – 92,282 tonnes and in 2022 when under the excellent management of Mr. Singh and the PPPC it barely could produce 47, 287 tonnes.  This doesn’t make a lot of business sense, Mr. Speaker.”

 

How does this budget contribute to better lives for our people?

 

“Mr. Speaker, I want to move to those measures, and I remind us of the questions I asked earlier.

• How does this budget contribute to better lives for our people?
• How does it allow for our people to have the resources to live comfortably?
• How does it add dignity to the lives of our elderly

 

“I don’t have to repeat the pain our citizens are experiencing as they grapple with the out of control ever increasing cost of living and a close to stagnant wage,” she asked.

 

“We have heard the present cost of items in that basic basket of goods. Are we really saying the best this oil rich Guyana, one of the fastest growing economies in the world is increasing pensions by $5,000.  Mr. Speaker…this packet of 18 Depends costs $ 4,000. You have given our pensioners a packet of 18 Depends and maybe with the change, one bottle of Ensure.”

 

The PPP government have given the pensioners nothing really, stated Hughes, and pointed out  the coalition recommended at least $50,000 new pension rate,

 

Those persons with special needs whose rate moved from $12,000 to $14,000 deserved more, and the increase represented “two drops for anyone with a physical disability who must travel by taxi, assuming you live in Georgetown of course. Anywhere on the east bank close to Herstelling is $2,000 or $ 2,500 depending on time of day” she stated.

 

Allocation to Education and delaying return of free university education

 

“Mr. Speaker…it would be remiss of me not to recognise the importance of [the education] sector to our national development thrust.  Sadly, we have failed to see the big picture.  It was our hope that free tuition at the University of Guyana would have finally been given the green light in this budget, and we still trust that this will be done because this is where our oil monies will have the biggest impact.

 

“…we have been told that free education will come before 2025. But with an over $700 billion plus budget, couldn’t we give the students a break now. Say a 50% reduction, or a 25% rebate /subsidy on those fees. Mr. Speaker, nothing!!!!!” she said.

 

Further she stated, “How can justify putting over $4 Billion into sports and little over $3 Billion to the University of Guyana, the premier institution we expect to provide the qualified professionals we so desperately need to fill the skills gap and local content requirements that currently exists. 5 of the 8 faculties at UG are science based with the Faculty of Social Sciences housing 12 different disciplines.”

 

How do you justify the GOAL scholarship programme getting about half of UG’s budget with no physical infrastructure to manage the high expectations we and the private sector have of UG, questioned. “Does this make logical sense? Mr. Speaker, politics should never intrude on our educational capability.”

 

Whilst crediting the work of the Learning Channel, “quite possibly [as] the most important mass education tool for primary and secondary education” it was pointed out the “entity has been unable to reach its full potential because it continues to be constrained by nepotism and limited thinking.”

 

These are the issues that continue to plague us, these are the issues that have to be addressed, and we could have used the opportunity of these debates to look for solutions, cited the M.P.

 

Wages and salaries increase and cash grants

 

Highlighting the issue of wages and salaries, Hughes asked, “Mr. Speaker, how was it possible that the APNU+AFC coalition at a time when there were no oil revenues was able to make permanent salary increase in the minimum wage of teachers, nurses, doctors, members of the defense services, police and security forces? In 2015 it moved from $39,570 to $50,000 a 26% increase, 10% in 2016, from $55,000 to $60,000 – 20%, …over the four years minimum wage increased from $39,570 to $70,000 by 2019 [representing a total of] 77% ….and in this booming oil economy a nothing extra on permanent salaries.”

 

The distinction was made to register the importance of an “increase on their salary, something extra every month…[was] not a ‘one off grant’ when the government feels like giving you something.

 

“I want Guyanese to understand that if you were receiving the minimum wage in 2015 of $39,570 and by 2019 you were getting $70,000 that means you were getting an extra 30,430 more every month before tax thanks to the coalition. In a year you would have received more than $365,000 dollars, roughly speaking. Now do you see how small “The $35,000 we care grant looks! Guyanese you deserve more you deserve better.”

 

The coalition recommended taking the minimum wage to $100,000 because “the poorest of Guyanese with rent or a mortgage, a family most likely, electricity, food… deserve at least that,” she debated.

 

“Mr. Speaker, of great concern which is reflected in this 2023 budget is this Government’s propensity to provide cash grants instead of increasing wages and salary levels…let me state clearly so there is no misunderstanding.

 

“We on this side of the House are happy when government allocates extra revenues from the national coffers as cash grants to the citizens of Guyana, but we insist that increases be made to wages and salaries.

 

“…you see the fundamental problems with the cash grants is that they are unpredictable handouts that cannot be taken to any bank.  Cash grants must be the ‘top up’ disbursed in a fair and equitable manner with the relevant system in place to avoid manipulation and corruption,” she highlighted.

 

Thinking ahead and having a proper  plan

 

She continued by saying, “Mr. Speaker this budget focuses overwhelmingly on the big projects-that allow the established big business to partake and compete.  There is very little to address our historic inequalities and help expand the base.

 

“Mr. Speaker, ensuring the economic and social advancement of all our citizens, while keeping the economy productive, stimulating new sectors for economic development, ensuring sustainable development and diversification even in this new oil and gas economy is a must.”

 

Advising the necessity of thinking ahead and planning to manage the shocks in oil prices that will come, the M.P pointed out Guyana’s levels of borrowing are a concern and advised against excessive borrowing.

 

Debating the imperative of managing the economy driven by data, the M.P stated “the long term plans for economic development must be driven by data and as stakeholders in Guyana’s development – all of us – those in this house, the persons we represent, the private sector , small businesses, civil society, everyone must to able to review and interrogate this data and contribute to the development of this country as article 13 instructs us to develop an inclusive society.”

 

On tourism development, Hughes stated the data that supports the decision to place a much anticipated and long overdue Hospitality Training School is 6 hours’ drive time away from the geographical area our new hotels will be found.

 

“Surely the answer provided by the Minister ‘that why not an urban area’ is totally unacceptable,” because the location “does not consider the new hotelier who now must arrange residential accommodation for the staff he hoped he could schedule to attend as part of his inhouse on the job training programme.”

 

Such was also “the same kind of thinking that determined the best place to put a synthetic track was in a community where the highest level of athletes cannot be found and it takes two buses to reach the location one way,” she debated.

 

Key sectors that did better prior to oil now lagging

 

“Mr. Speaker, we note that several key sectors were doing better prior to the introduction of oil. Gold is a classic example of this where in 2019 earnings were $876.6 Million but by 2022 it had fallen to $830 Million – despite the massive relief granted to the gold industry declarations are less,” she posited.

 

The M.P noted that these budget debates were plagued with deliberate gross inaccuracies and many on the Government side seemed totally unfamiliar with the truth.

 

She said, “We heard from the junior Finance Minister, the Minister of Agriculture and others speak of the APNU/AFC bankrupting the Guyana Forestry Commission….again nothing could be further from the truth and they know that.  The report on the forensic audit and review of the Guyana Forestry Commission dated December 31, 2015 by Anand Goolsarran on page 8 informs us of a different position and I quote:

 

Extracts from the Audit of the Guyana Forestry Commission by Anand Goolsarran

 

Transfers to other State agencies

“1:33 During the period 2006 to 2010, the Commission made payments to other State agencies totalling $1.284 billion out of its retained earnings (accumulated profits), based on Cabinet decisions. Of this amount, two payments totalling $600 million were made to the National Industrial and Commercial Investments Ltd. to meet the 2007 Cricket World Cup expenditure and to assist in the cost of construction of the Marriott Hotel. Another amount of $600 million was transferred to the Governor of the Bank of Guyana as the liquidator of the Colonial Life Insurance Company Investments.”

 

Further she quoted, “Granting of loans:-

 

1:35 Section 22 (1) (a) of the Act prohibits the Commission from making any loan or grant except for the purpose of carrying on the functions of the Commission. Despite this, in September 2014, Cabinet approved the Commission granting a loan of US$600,000 to the Iwokrama International Centre. 1:36 The Commission’s main operating bank account was overdrawn by $90.245 Million as at 31 May 2015. The interest rate on the overdraft was 6.5%. For May 2015, the overdraft interest was $489,204.”

 

She added that she is aware that this Government conducted an audit post 2020 but being averse to transparency, they have not shared the audit.

 

“Mr. Speaker…Minister Suzanne Rodrigues stood here and pontificated about the Global Witness Report. She stressed the C word but never once informed this House that as reported in Forbes magazine, – Global Witness themselves withdrew their report on Guyana’s oil sector. Global Witness also released a statement.

 

“….this was one of the Mercury contracted deliverables- Global Witness was paid to produce to discredit the coalition government. Money well spent as the VP has stated. Nothing to do with truth.

 

Accounting for stewardship as Minister of Telecommunications

 

“Mr. Speaker, …now look at the area for which I was responsible when I served as Minister of Public Telecommunications…I listened in horror as the Minister of Amerindian Affairs came to this House…and uttered a battery of untruths. It was disingenuous at least, and downright dishonest at worst to suggest that nothing was done in this sector under the last administration.”

 

The MP countered: –

 

• “We passed the telecommunications and PUC acts in 2016.
• Under NDMA we operationalised our digital fibre optic cable network which was languishing since 2012 under the PPP.
• We connected government ministries and agencies, provided teleconferencing equipment in all of them.
• The safe city programme which thankfully you have continued and plan to expand
• Established the centre of excellence with the government of India
• Discussed a single ICT space across South America and the Caribbean.
• Discussed with Caricom and the CTU crafting and implementing a single ICT space across the Caribbean and lobbied for the elimination of roaming charges…where is this imitative Mr. Speaker

 

“Where is the national programme for analogue to digital conversion TV; where is the draft ICT strategy policy we left in the works; we granted permission to E-Networks and Exxon to land subsea fibre optic cables, but where are the other telecommunication investors, ” she countered.

 

“Mr. Speaker,

•    We trained over 4,000 over the 5 years under our industry and innovation programme in microbytes, coding, website and graphic design, girls in ICT, arranged internships with local companies, supported STEMGuyana and provided a home for them, robotic kits for groups and much more.
• Customs & vat exemptions on phones and vehicles – PLWD
• Trained 215 from girls under the 6-month code camp with UG
• Web accessibility training, hackathons, developed apps
• Distributed over 4,000 Laptops- one laptop per teacher
• Signed an MOU with GTT regarding liberalization.”

Don’t tell us, Minister Sukhai,, the coalition government did nothing; you can tell me you’ve surpassed what we did next time, she added.

Hughes told the House, the coalition entered office full of hope with regards to the potential a fibre optic cable, supposedly installed by the PPP/C, could have on improved connectivity especially in our hinterland interior communities, but $13 billion later there was nothing to show from Linden to Lethem from a project run by the son of a former President!”

“Not to forget the one laptop per person scam….more than $119 million wasted, more than 5,000 laptops not accounted for…I had cause to visit several interior locations over the last few months, from Paramakatoi in Region 8 to Aranaputa in Region 9 and Phillipi in Region 7.  The complaint is always the same.  The internet is inadequate.  The schools do not have the necessary internet capacity. The teachers have to use their own money to purchase internet for the school.  In Paramakatoi the cost for purchasing internet time was $2500 for less than 15 minutes every time you need to go online,”

“The internet hubs that were installed under my tenure have not been maintained, necessary upgrades were not completed, and most are functioning poorly or not operational at all. The teachers in those communities also do their training online through CPCE so how we can expect our people to be the beneficiaries when every time a new government comes in, they try to denigrate what was done previously to score cheap political points.

“Rather than build on what was there before it was deliberately allowed it to fall into disrepair and so that blame could be thrown my way. So where are we in the sector and what needs to be done immediately to ensure it can reach its full potential,”

She said, “Mr. Speaker I recall distinctly the junior Minister with responsibility for finance complaining about The ICT access for hinterland poor and Remote communities project which was ‘languishing’ under the coalition. Again, intellectual dishonesty.

“The Former Minister of Finance and I signed the project document and selected UNDP as the managing partner. We worked with UNDP resident representative Kadisha Musa in implementing the ICT needs assessment and her replacement Mikiko Tanaka signed the project document funded by the GRIF to a tune of US$17 Million. When the coalition left government, they had connected several hinterland communities and they expected that by now the project would have been completed. However, it’s in slow progress currently.”

She advised the House the issues were raised to highlight for this nation how mendacious representatives of this government are.

Seeking common ground and improved race relations

Hughes told the Assembly her presentation was not an indictment so much as it is an effort to search for common ground, “to let us all understand how we are failing the people of our country by this constant incivility that is an ego trip more than it is a means of finding solutions that will have lasting value.

 

“We have got to be bigger than this and we got to talk about the elephant in the room.  We have allowed race and politics to divide us to our own detriment and if we don’t see that the world is watching on and laughing as our resources are depleted for the benefit of others, then these days of debates will be an exercise in futility; another wasted opportunity.”

 

“Surely our ability to understand history must be used to correct our future – the future of our country, the future of our children.  The chant of rigged elections has become a rallying cry to perpetuate the stereotype that one ‘ethnicity’ is responsible for the damage that has been done to our electoral process. We all know the lie in this and have got to stop the constant repetition of this inaccuracy if we are to build a more cohesive nation.

 

“We know deep down that the Guyana Elections Commission in whom we all placed our faith in disappointed us in catastrophic terms, remains unwilling to examine and correct its administrative flaws and ensure that the citizens of this country have confidence in its ability to deliver free and fair elections.

“The myriad of maladministration unearthed in the recount process and signed off to by representatives from all the contending parties present is testimony to this,” she highlighted.

 

Stating all have made mistakes in the past, the MP in her presentation stated, “we understand the challenges that face any government in searching for lasting solutions, so I am not here to put down the efforts to craft a budget, but to look critically at some of its deficiencies which I have highlighted in the hope that they will be addressed.”

 

A revised more inclusive budget

In closing she stated that, “I recognise that we can still consider the many good suggestions and recommendations proffered over these last five day and include in a revised more inclusive budget. We boast that Guyana will be the next Singapore. I leave you with a quote from Lee Kwan Yew ‘A nation is great not by its size alone. It is the will, the cohesion, the stamina, the discipline of its people and the quality of their leaders which ensure it an honourable place in history.”

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