If re-elected next month, the PPP/C says it will once again seek to realise the Amaila Falls Hydropower project, the Cheddi Jagan airport expansion and a specialty hospital, for which the Donald Ramotar administration was unable to woo opposition support in the National Assembly during its truncated term.
In its campaign manifesto, dubbed ‘Our Vision: Guyana Version 2.0,’ unveiled at the Marriott Hotel yesterday, the PPP/C also includes several other promises it has made before but either was prevented from delivering or failed to fulfil.
The main opposition APNU and the AFC had raised concerns over the lack of transparency in the Amaila, airport and specialty hospital projects, which led to them using their one-seat parliamentary majority to withhold approval for funds in some instances. Government has, however, proceeded with spending in the absence of parliamentary approval and its manifesto the PPP/C maintains that the projects will be pursued to support “growth and new employment generating sectors.”
While noting that it will actively pursue the development of the country’s hydropower resources as a priority, it notes, in particular, that the Amaila project is “a key strategic component” to ensure the sustainability of Guyana’s energy supply. At least two major infrastructural undertakings that are also listed to be pursued to support growth and job creation—a deep water harbour and paving of the Linden to Lethem road—were also promised in the PPP/C’s 2006 and 2011 manifestoes.
The PPP/C says of the former that it will continue to pursue the studies necessary for the construction of a deep water harbour at the mouth of the Berbice River that will make Guyana marine hub between South America and the Caribbean. On the Linden to Lethem road, it adds that it will intensify cooperation with Brazil to ensure a paved road is completed to serve as a critical artery to many hinterland communities and mining areas, while providing linkages between the two countries.
The completion of the East Coast and East Bank Demerara road projects and new bridges across the Demerara and the Corentyne were
listed in the 2011 manifesto. Since then, the road projects have missed numerous deadlines, while a feasibility study on a new Demerara River bridge has been completed and preliminary work has started on the Corentyne River Bridge, for which Guyana and Suriname are seeking to tap funding from a US$3 billion Chinese loan to Caricom.
The PPP/C manifesto also makes a new commitment to hold new local government elections—last held in 1994—as well as a renewed pledge to establish the long-delayed Public Procurement Commission. It says the new elections would be held by June, 2016, albeit once the required conditions stipulated by the Guyana Elections Commission (GECOM) are met and approved by the National Assembly.
In its 2011 manifesto, it had also pledged to hold the local government elections with a year of its election but later resisted campaigns by both the opposition, civil society and the international community to hold the polls.
The new manifesto says the government’s plans for local government also include finalising the Local Government Amendment Act and
establishing the Local Government Commission, which it had also been urged to do.
The administration’s unwillingness to commit to a date for the polls led to a breakdown of talks between Ramotar and opposition leader David Granger late last year and galvanised a collective opposition push for a no-confidence motion against the government. Ramotar, in response, suspended the Parliament and later called for the new polls.
Similarly, government had committed to operationalising the Procurement Commission in its previous manifesto after years of failure to move forward on its appointment. Its establishment was continuously called for by the AFC, which had identified it as a prerequisite for supporting the passage of anti-money laundering legislation during negotiations over the last two years.
Additionally, PPP/C has identified simplifying the tax system, reviewing the impact of taxes on cost of living and periodically reviewing business taxes as key elements to support its job creation initiatives in the new manifesto.
However, while a continuous review of the taxation system, including the contentious 16% VAT, was promised in 2011, the administration has had little to show since then.
In December, 2011, less than a month after his election, Ramotar had set up a three-man panel to review the taxation system. Opposition leaders, who had campaigned for reductions in the VAT, had criticised the decision to put together the committee without consulting them.
Ramotar was asked about the review last Wednesday at a luncheon with business leaders and he said, “You have to recognise that when VAT was introduced in our country, we eliminated many other taxes…like the consumption tax. As far as the report you are talking about is concerned, yes, I had set up a committee that I had given this task to do, there was some little problems with the Terms of Reference and so forth. I haven’t had a report on this as yet and I don’t know if they are waiting on us to resolve some of our differences.”
The administration did reduce the rate of personal income tax from 33% to 30% in 2013, but also increased the National Insurance Scheme (NIS) contribution rate by 1% in the same year, prompting criticism that there was little relief for workers.
In the new manifesto, the PPP/C also pledges to continue to support the modernisation of the NIS, which it says will allow for improvements in the delivery of services and viability of its investment.
It had previously promised to conduct a comprehensive review of the NIS to ensure its long-term viability and to improve its accountability and client-friendliness, along with strengthening the supervision of pension funds to ensure the protection of post-employment benefits.
An actuarial review in the following year had found that the NIS was nearing a crisis stage urged immediate steps, including the raising of the contribution rate from 13% to 15%, hiking the wage ceiling to $200,000 per month and a phased raising of the pension age from 60 to 65. Up to late last year, NIS General Manager Doreen Nelson reported that the Scheme faced a projected deficit of $713 million for 2014 and that debt and data management efforts over the preceding two years had not resulted in the expected broader coverage and better compliance.
