Minister within the Ministry of Communities, Dawn Hastings, said on Tuesday at the 2017 budget debate that according to data provided by the Guyana Water Incorporated (GWI), 94.5% of metered customers pay $1,500 or less per month.
Defending the APNU+AFC government’s decision to implement Value Added Tax (VAT) to water bills that are over $1,500 per month, Hastings said, “Let us start with VAT on water, according to data provided by GWI, the total amount of meter customers stands at 163,359, of which 155,011 or 94.5% currently pay $1,500 and below.” She indicated that the remaining 5.5% or 8,324 of the customers are mostly, “hotels, restaurants, ministries, malls etc.”
“There is no way that the 14% VAT on water charges will distort consumption patterns with a mere additional charges. In other words, this measure will achieve exactly what it sets out to accomplish – to reduce inequality and better position to finally achieve a financial breakeven,” Hastings said, while stating that the subventions that are currently being paid to the water company will be then used to “finance other social projects that would benefit the poor.”
“Water is life, save it. I repeat, water is life, save it. Every drop counts, we need to use it wisely,” Hastings said, stating that nothing good comes easy if persons want to have a good life.
“Mr. Speaker, let me come to the key achievements of the water sector. In 2016 the good life did beckon, and thousands of Guyanese for the first time received potable water,” she said, pointing out that by the end of December 2016, GWI is projected to expend approximately $2B on this. Hastings said that given the fact that programmes from the 2016 budget are still in progress, the magnitude of the impact of the government on the water sector is yet to be assessed.
“Residents in over 43 communities achieved water for the first time, first time. Benefitting over 43,500 persons directly,” she said, adding that persons did not only benefit individually, but also their risk for waterborne diseases was greatly reduced. “Beneficiaries saved considerable amount of time and money spent transporting water for daily use,” she explained.
Hastings further stated that for the year of 2017, the budgeted $28B that was allocated, is in keeping with the 2030 agenda for sustainable development towards achieving universal and equitable access to safe and affordable drinking water. She also added that in 2017, Guyana will be hosting the Caribbean Water and Wastewater Association Conference, where they will be deliberating on the opportunities and challenges that Caribbean countries face in the water sector.
People’s Progressive Party Civic (PPP/C) Member of Parliament Cornel Damon also spoke on Tuesday night. He said that the budget needs to be tossed out and there needs to be wider consultations. APNU+AFC Member of Parliament Jermaine Figueira also spoke about his support for the budget.
