One of the notable features of the private sector during 2007 was its virtual silence on issues concerning the business sector and the economy as a whole.
Ironically, there was plenty to talk about. There was the Value Added and Excise Taxes and the impact of these on business; how Guyana is faring in the Single Market; rising global food prices; the Common External Tariff and Guyana’s regional rice market and a range of other issues related to business and the economy.
Some weeks ago in the wake of the belated pronouncement by the Finance Minister of the half-year report on the budget Stabroek Business tried to secure a comment from each of the private sector bodies – the PSC, the GCCI and the GMA – on the review and related issues. We received a cautious comment from the head of one of the three entities and that was as far as we got.
When we raised the more direct question as to how the implementation of the Value Added Tax impacted on business during 2007 we fared no better. Apart from a cautious comment from one of the three entities about the need to lower the VAT rate we met with a wall of silence.
Just over a week ago we raised the issue of the virtual silence of the private sector bodies with a usually outspoken businessman and he agreed to give us his views – off the record. He said that ever since October 2006 when President Bharrat Jagdeo and PSC Chairman Mike Correia had had what he described as “a sharp exchange of words” over VAT businessmen had fallen silent. He said he believed that most businessmen felt that – now that government had announced the amount that it had collected in VAT up to June this year- consideration should be given to lowering corporate taxes. He conceded, however, that in the light of the Jagdeo/Correia exchange of 2006 most businessmen would probably be reluctant to say so publicly.
This particular businessman feels that the silence of the business community makes a mockery of its claim to being a ‘social partner.’ He pointed out, however, that some businessmen feared that they might be victimized for being too outspoken – though he stopped short of actually saying by whom and whether those fears were real or imagined.
We never seem to tire in making the argument about the importance of a ‘public/private sector partnership’ if the Guyana economy is to grow though one cannot help but feel that the relationship between the government and the private sector is not quite what it should be. And if the virtual silence of the private sector on issues that have a direct bearing on business and the economy is a reflection of fear of reprisals or victimization, then that is a very disturbing state of affairs indeed.