Government in reviewing the financial position of the Guyana Power and Light (GPL) and the fact that the year will come to an end shortly, made a decision that no subsidy would have been included in the 2015 budget for it, Minister of State Joseph Harmon said on Wednesday.
“The capacity of GPL to handle these finances were being reviewed and they were being strengthened by various international institutions such as the IDB and the World Bank.
We felt that in reviewing things that this budget will take into consideration what will happen in the next couple of months….in this short period of time it is our understanding that this subsidy was not necessary”, he told reporters at a post cabinet press briefing.
He said that while this issue should be one addressed by Minister of Finance Winston Jordan, it should be pointed out that in the last budget debate the government, whose two main constituents were then in the opposition, had indicated that the subsidies to GPL “could not continue in that way”.
He said that now Minister of Foreign Affairs Carl Greenidge is on record as saying that some of these monies “seem to be going down a dark hole”.
Last year GPL was allocated over $4.35 billion in the budget. Of that figure, $3.85 billion was to go directly into capital expenditure.
While the opposition did not cut the power company’s subsidy on that occasion in 2013, the APNU and AFC combined opposition voted down over half of the $10 billion subsidy of $5.2 billion. In 2012 the opposition cut GPL’s $6 billion subvention by $1 billion.
Meanwhile, Tourism Minister Cathy Hughes who was in attendance at the press briefing said that GPL has “not been able to substantially reduce the losses over the many years and they have gotten support”.
She continued that “part of the challenge is also that there is no question…that there are several individuals and companies that have massive electricity bills that have been allowed to have those bills wiped away”.
In the same breath she said persons who steal electricity are rightfully taken to court while others persons are having horrendous bills. “The challenge for this administration is saying to GPL that there is a lot more that needs to be done”, she said stressing that this budget goes until the end of the year and thereafter what will be done for 2016 will be reviewed.
