Apart from the $5.4 billion paid to farmers and millers to cover the costs for white rice and paddy shipped to Venezuela, government has not provided any additional support to the industry, Minister of Finance Winston Jordan has told the National Assembly.
PPP/C MP Irfaan Ali had asked the Minister to indicate exactly what additional support was provided to the rice industry from the $5 billion, other than mere payment to farmers and millers for the rice and paddy they produced and supplied. In a written response submitted to the House, Jordan said that no additional financial support has been provided beyond the sum of $5.4 billion paid to farmers and millers to cover the costs for white rice and paddy shipped to Venezuela under the PetroCaribe Agreement.
Ali had noted that in his 2015 budget speech, Jordan had said that government by the time the budget was presented on August 10, had already provided support of $5 billion to the Guyana Rice Development Board (GRDB) for the rice industry.
In response to additional questions by Ali, Jordan said that the support was released in two amounts on two different dates. The two payments of $1.8 billion and $3.5 billion were transferred to the GRDB, via the Bank of Guyana, on June 25, 2015 and July 24, 2015, respectively, and were subsequently received by the GRDB on June 30, 2015 and July 27, 2015, respectively. The money came from the Consolidated Fund.
He said that the payments made to the GRDB were charged to Agency 90 – Public Debt, Programme: 901 — Public Debt, External Public Debt Unfunded Principal Line Item: 9010158 — Venezuela (PDVSA and LA CASA).
These funds are reflected under the External Public Debt (Principal) because Guyana‘s debt to Venezuela is repaid principally through the value of the rice and paddy shipped to that country, he said.
Ali also recalled that in his budget speech, Jordan had said that over $23 billion was allocated in the budget to support further payments to over 7000 rice farmers.
He had said that this was in the context of the current inability of the PetroCaribe Fund to meet the payments.
In response to a question by Ali as to which funding source other than the PetroCaribe Fund will be utilised to finance the $23 billion, Jordan said that the Consolidated Fund will be utilised to meet the payments.
In response to another question, Jordan said that this sum is allocated under Budget Agency 90 — Public Debt, Programme: 901 – Public Debt, External Public Debt Unfunded Principal Line Item: 9010158 — Venezuela (PDVSA and LA CASA).
The amount is reflected under the External Public Debt (Principal) because Guyana’s debt to Venezuela is repaid principally through the value of the rice and paddy shipped to that country, he said.
Ali also asked the minister to indicate exactly what additional support is being provided to the rice industry from the $23 billion, other than mere payment to farmers and millers for the rice and paddy they produce and supply and Jordan said that no additional financial support is being provided other than that given to farmers and millers to cover the costs for white rice and paddy shipped to Venezuela.
