The National Assembly yesterday approved $2.8B in supplementary appropriations, covering expenditure for special security operations, subsidised fertiliser for farmers and the rehabilitation of the Demerara Harbour Bridge.
- Robert Corbin
The Supplementary Appropria-tion Bill No. 2 for 2008 also covered a $50M for security forces, the reward originally offered for the capture of Rondell “Fineman” Rawlins, who was killed during a shootout with lawmen. It was approved by the house after careful scrutiny by the main opposition PNCR-1G, whose members complained about the government’s lack of preparation to account for the need for additional budgetary funds.
Financial Papers No. 3/2008 and No.4/2008, setting out allocations for current and capital expenditure until the end of year, were both considered after the house resolved itself into the Committee of Supply.
Financial Paper No. 3, totalling $1,848,047,997 in supplementary provisions, allocates more than $800 million for the public safety sector, to meet police and army expenditure for special security operations.
These operations included the security arrangements put in place during Carifesta X as well as the ongoing Operation Restore Order. The allocation also covered special operations by the Guyana Prison Service, with Minister Clement Rohee explaining it as part of the “periodisation” in which prisoners are moved around.
- Robeson Benn
Additionally, the Office of President sought a $75 million provision, with $50M for the Rawlins reward and the remainder to cover the Institute of Applied Science and Technology (IAST) rent shortfall from the Environmental Protection Agency (EPA). Minister within the Ministry of Finance, Jennifer Webster, told the house that the police force and the army would each receive $20M payouts, while the $10M remainder would be distributed subject to approval by the Defence Board.Asked by PNCR-1G leader Robert Corbin to whom the money would go, Webster refused to name anyone but indicated it would go to informants who assisted the forces. PNCR-1G MPs quizzed the minister on the criteria that would be used for distributing the funds but she was unable to answer at the time.
The Paper also included a sum of $600,000,000, which was sought by the Ministry of Agriculture to facilitate the bulk purchase and resale of fertiliser to combat rising food prices. Corbin raised a red flag over the allocation after it was noted that $524M had already been voted for the same purpose in the budget. Minister of Agriculture Robert Persaud explained that the Ministry is trying to provide farmers with access to fertiliser after world market prices shot up in tandem with oil prices.
He said the government is seeking 12,500 tonnes in order to cushion the effects locally, particularly in the rice and sugar sectors, since supply has become uncertain as a result of increased acquisition costs. On the world market, he explained, fertiliser is being sold at US$860 per metric tonne or US$9,000 per bag, but government can source it for as low as US$540 per metric tonne and US$6,000 per bag buying in bulk. He said it was initially hoped that the fertiliser would be ready for October, but the suppliers were unable to meet the shipment. In response to a query by GAP-ROAR MP Everall Franklin about arrangements made for storage, Persaud acknowledged that given the sensitive nature of urea, the ministry is trying to source the fertilisers for the start of the next year to coincide with the cropping schedule. The fertiliser is to be sold to farmers next year with no mark up. Persaud assured that it is a temporary measure and he said the funds would be refunded to the contingency fund.
Also approved was $298,208,232 in capital estimates, to meet Guyana’s initial contribution to the Caricom Development Fund. In response to a question by PNCR-1G MP Aubrey Norton about the donations made by other Caricom members, Minister of Finance Dr. Ashni Singh revealed that Dominica contributed US$74,000, Trinidad and Tobago US437.7M, St. Kitts and Nevis US$660,000, St. Vincent and Grenadines US$679,950, St. Lucia US$980,000, Barbados US$5M, Jamaica US$8.13M, and Belize US$1.26M. Norton questioned the Minister about the start up of private sector component of the fund, to which Singh assured that the issue was engaging Caricom at all levels.
A sum of $32M was also included in the capital estimates sought in the Paper for the supply of 12,000 feet of galvanised chains for emergency works to the Demerara Harbour Bridge, in addition to the $650M that was sought in Financial Paper No. 4/2008, which totalled $984,061,416 in supplementary provisions. Minister of Transport Robeson Benn told the house that his ministry has been doing a detailed inspection of the bridge, which has been found to be in poor condition.
He said the expenditure is immediately necessary since the government needs to keep the bridge going for another seven to ten years. Corbin, however, complained about the government’s seeming lack of foresight, noting that no funds were sought for the bridge in the capital estimates at the start of the year. He said it should have been part of the original allocations. Benn sought to defend himself, explaining that the deterioration of the bridge has occurred as a result of trucks carrying loads in excess of official weight limits.
This he attributed to the boom in housing development on the West Coast of Demerara. But members of the opposition heckled him, questioning whether that development only occurred after the budget was passed earlier this year. Benn then explained that allocations for repairs were covered by the Demerara Harbour Bridge Company, from monies collected from tolls. He said $278M has been collected by the company in tolls so far for this year.
Meanwhile, $40M in allocations was sought by the Office of the Prime Minister to relocate persons squatting along the Lamaha Railway Embankment.
The relocation is to facilitate a new 69KVA link being constructed from Kingston to Sophia to upgrade power transmission and distribution.
Corbin raised concerns about proper housing as part of relocation and Prime Minister Samuel Hinds explained that each person would receive a house lot at an existing scheme in addition to assistance towards relocation.