Prime Minister Samuel Hinds yesterday expressed regret at Lindeners’ stance in relation to the reduction of the electricity subsidy and said that the ongoing protest is hurting Guyana but the town most of all.
In a statement issued before the deaths of three men in the protest last evening, the prime minister defended the subsidy reduction and said it was necessary. He also urged that the damage be minimized in the town. “Linden is no more depressed, no less depressed, no more prosperous, no less prosperous, than many other places in Guyana,” Hinds said. “I regret the action of those who have fomented the people, and urged the shutting down of Linden. This is harming all Guyana, in general, but the people of Linden, most of all,” he said.
“I urge the more level-headed in Linden, to let us keep Linden open; let us keep valid the vision of Linden as the gateway to, and from, Region 9, and northern Brazil. This Government would not give up its vision of Linden as truly the second town of Guyana, leading in the inward growth and development of our country, but we need the help of the average, reasonable Lindener to restore normal conditions in Linden, as early as possible, and to minimize the damage being inflicted on Linden,” the Prime Minister said.
He said that he was “filled with great disappointment and deep regret” on being informed about the blocking of the bridge across the Demerara River at Linden yesterday. “I am particularly upset that, early in the morning, LUSCSL turned off the electricity supply to the Wismar/Christianburg area and, hence, the water supply also. That was plain thuggery upon captive consumers by a utility provider, behaviour that could not be tolerated,” the Prime Minister said. He said that he has been hearing some people saying that LUSCSL should establish its own generating station, and supply itself. “I welcome LUSCSL to undertake that study. They will find that, at present prices, their generation costs before allowing for the technical and commercial losses will be about $60 per kWh, and when T&D commercial and overhead costs are included, they will find that delivered costs are G$75-80 per kWh,” Hinds declared.
According to the prime minister, Lindeners, and Linden must build soundly for the future “…a future built on electricity prices subsidized by 90%, or more, is not a sound future – a future in which there is no incentive to require learning in how to be careful and economic in the use of electricity, is not a sustainable future. A future wherein citizens of Linden burn two to three times the quantity of electricity burnt by citizens in comparable circumstances, elsewhere in our country, is not a sound future; a future wherein the average home in Linden is subsidized in the amount of $17,000/month – $204,000/year – from the nation’s Treasury, out of the taxes and revenues of citizens all across the country, is not a sound, sustainable future,” he said.
The prime minister pointed out that the electricity subsidy to Linden is not being removed, all at ‘one go’, but rather, in stages to allow for adjustments by the people and to allow also for adjustments of household budgets. “The subsidy in this year, 2012, of G$1,885 million, is indeed reduced from the G$2,576 million of 2011, but is still very large and comparable with the G$2,130 million of 2010. Every year in which the electricity reform is put off, and in which the people of Linden grow and make more decisions based on electricity subsidized at a rate of 90% or more make the eventual adjustment even more difficult,” he said.
According to Hinds, the new tariff structure is structured in such a way that the initial quantities of electricity taken are heavily subsidized. He said that this arrangement allows for every family to share more equally in the subsidy, and those with lower incomes are impacted least of all.
The prime minister said that the charges are still very reasonable. “The 90% subsidy cannot be continued indefinitely. I understand that no one would be happy, and no one would volunteer to pay more, but I continue to look for quiet, resigned acceptance, so that Lindeners and Linden can be built on a sound foundation,” he said.
Hinds said that he regretted greatly that demonstrators succeeded in blocking the Demerara Bridge, and that a number of enterprises and persons in Linden suspended their normal businesses. “I deeply regret this setback to all the work that the Government has been doing in advocating Linden as a place in which to be, and a place in which to do business; advocating and working to realize Linden as a gateway to, and from, Region 9, and northern Brazil. All that work is now compromised and set back,” he said. “All this at a time when, for the first time since ever there was bauxite-drying and calcining operations in Linden, there is a stack from a calciner that is free of dust—the first time in which there is demonstration that Linden can be dust-free whilst the bauxite operations are running. This at a time, too, when the Government has reaffirmed its commitment to specially promote WOW in Linden, resolve outstanding issues, and restart LEN, and in all ways assist Lindeners who want to venture and start enterprises for self-employment and employment of others,” the prime minister added.
He urged court action against those affected by the blocking of the roads in Linden. “I urge all those who are suffering losses by the wanton action of a dozen, or so, instigators, to consider taking them personally to court in order to seek compensatory damages,” Hinds said.
“I regret what a number of people of Linden have been made to believe of their condition and their treatment by this Government. Insecurities, suspicions and fear are abound in our country, but look around and compare Government investment in infrastructure, in education and health, in Linden, with investment elsewhere; we have always endeavoured to have Linden share equitably in the fortunes of our nation, both good and bad,” he added.
