Newly-appointed PNCR Shadow Finance Minister Volda Lawrence says the 2011 budget is disconnected from the realities of unemployment, tax burdens and climbing migration rates, among other things, which reflect on the real state of affairs in the country.
She said the administration has rolled out a budget with “a few elections sweets,” and criticised the increases in the income tax threshold, old age pension and public assistance as meagre. She questioned what progress Finance Minister Dr. Ashni Singh referred to in his budget presentation last week, noting that the increased pension is still insufficient to cover a return fare from the city to Bartica.
Her pointed criticism, which opened the Budget Debate at Parliament yesterday, took aim at the $161B budget for failing to mention whether people can expect a greater level of transparency and accountability, value for money and job creation. In addition, she said there was not a word about any serious efforts at stamping out corruption and sufficient policies to stimulate investment and promote economic growth.
Lawrence likened corruption to a “corrosive cancer,” saying that it has spread throughout the society in addition to draining the national economy. She cautioned the government to pay close attention to what happened in Haiti last week, after exiled former Haitian dictator Jean-Claude “Baby Doc” Duvalier returned to that country. “The day of justice is coming…that day of justice is coming for all those whose administrations were characterised by corruption and Guyana is no exception. You can run, but you cannot hide,” Lawrence charged, resulting in an uproar on the government benches.
Labour Minister Manzoor Nadir rebutted Lawrence minutes after she wrapped up her address and he wasted little time in saying that she “was out of her depth.” He accused her of trying to paint a picture of mismanagement on the part of the government, while adding that she failed to discredit the sterling performances made over the years.
Nadir declared that the economy is the healthiest it has ever been and he stressed that the government has defied the predictions of “doom and gloom” to build a solid economy where income distribution is the most, even in this part of the hemisphere. He praised the Finance Minister for a “brave budget” and a few minutes into his address shifted focus to Lawrence’s presentation.
But as he criticised Lawrence, his choice of words was viewed by members of the main opposition party as a personal and offensive attack. Nadir repeatedly referred to the PNCR MP as “she” and said that she lacked the comprehension to deal with the economic issues which are to be debated. According to him, she was clearly out of her depth.
Nadir was promptly interrupted by PNCR MP Debra Backer, who objected to the manner in which he spoke of Lawrence. “I think it is an affront to all women here and I personally think that his eyes pass people…I call on the Speaker to protect Mrs. Lawrence, the honourable member,” Backer said, as members of the party loudly rejected Nadir’s statements. The Speaker cautioned Nadir but as he resumed his presentation the PNCR members staged a walk-out. They remained outside of the Parliament Chamber until he concluded his presentation.
Camouflage
of figures
Lawrence, in her rebuttal, called the 2011 budget a camouflage of figures intended to dazzle and confuse. She argued that the figures about growth and the Gross Domestic Production (GDP) are questionable, noting a lot of the government’s statistics raise doubts with respect to accuracy. With the exception of the rice and gold sectors, she said the country did not do well last year, particularly with respect to sugar. She said sugar has done poorly under the administration and called on the government to depoliticise GuySuCo’s Board of Directors, beginning with the removal of the PPP’s General Secretary Donald Ramotar.
Lawrence charged that foreign debt is incredibly high, saying the PPP has borrowed more in their 18 years in office than the PNC ever did in 28 years. “There is also no doubt that the rise in domestic debt has to be carefully watched,” she added.
She also rapped the government on its record with respect to crime, domestic violence, unemployment and its intolerance of critics, among other things. She said that the administration settled on a budget theme which cannot be supported in practice, particularly the aspect about working together.
All Stakeholders ought to be involved in the development process, she said, while noting that until the administration is prepared to bring everyone to the table there could be no real progress. She cited the recent controversy over the 2011 agenda for the International Year of People of African Descent as a clear example of government isolating stakeholders.
She said too that “many irregularities occurred under Singh’s watch” and she listed the concessions granted to QA11; the Fidelity probe; the MOU for Buddy’s investment; and the struggling sugar industry. She also slammed the administration over its refusal to place the lottery fund monies into the consolidated fund.
Nadir, responding to Lawrence, said the quality of life has improved in this country and he emphasised that people find satisfaction here. He added that a study has shown that Guyanese are happy people. But people will continue to migrate, he said, for “economic wealth as opposed to livelihood satisfaction.”
Nadir argued that the government will have to import skills to fill positions at the highest and lowest levels in the near future. He said also that government is not afraid to release unemployment numbers, adding that the US Embassy estimates it is around 10.3 percent. Still, he said this figure likely includes people who are not looking for jobs.
On the point about the numbers in the budget being inaccurate, he said government collaborates with the Bureau of Statistics among other agencies to ensure exactness. He said too that the IMF produced numbers with respect to growth here, noting that those numbers also do not lie.
