To assist small entrepreneurs throughout the country to capitalise on opportunities offered through the Ministry of Business’ Small Business Procurement Programme, government has set aside a combined $3 million for public awareness and training.
With some $2.65 billion of the proposed $300.7 billion 2019 national budget allocated to the Ministry of Business, Minister of Business Dominic Gaskin last week said citizens can be assured that opportunities for small businesses will also be made available in 2019.
When the consideration of the budget estimates continued on Tuesday, Gaskin told the Committee of Supply that government has planned public awareness so as to attract more persons as it rolls out the procurement programme in 2019.
Gaskin informed members that $800,000 has been budgeted for public awareness and to advertise the programme.
He explained that government is committed to continuing to facilitating business and $18.5 million has been budgeted for the participation in trade shows and to facilitate the promotion of local export-ready products and investment opportunities to international buyers and investors at such events.
Responding to People’s Progressive Party/Civic parliamentarian Joseph Hamilton, who asked the majority of questions during the scrutiny of the allocations, Gaskin was quick to point out that while $3 million was set aside for training for the small business procurement programme, “in many of the other headings you will find that parts or activities relating to that programme are funded.”
Government has said that purpose of the Small Business Procurement Programme is to ensure that small businesses have fair access to government procurement opportunities through a transparent and efficient process that is cost-effective to government and conforms to the laws of Guyana.
Last week, Gaskin disclosed in his post-budget presentation to the House that the 20% allocation to small businesses “will begin with a set aside of all procurements of under $30 million for approved small businesses” subject to capacity existing within the sector” though he stated that the “set aside” is likely to be inadequate to meet the stipulated 20% allocation. “Government is aware that even if all of the procurements under $30 million were to go to small businesses it still may not amount to 20% of total procurement,” Gaskin said.
What would appear to be some existing immediate term limitations, however, are still, it seems, not sufficient for government to further delay the implementation of a clause in the Small Business Act, which it sees as pivotal to small business growth and wider employment generation. In the National Assembly last Monday, Gaskin told parliamentarians that the provision is so important that it “must begin and we must start collecting the data to show what percentage of government is going to small businesses so that we can make annual adjustments, going forward, until we hit the 20% target provided for in the Small Business Act of 2004.”
The Small Business Act of 2004 requires that at least 20% of procurement of goods and services required annually by the government be obtained from small business. The Act also mandates the Small Business Council to facilitate this provision by preparing a small business procurement programme.
Prior to the legally correct implementation of the 20% set-aside provision for small businesses, government will be required to amend the Public Procurement Act, the principal legislation governing procurement, a point made by Public Procurement Commission Chairperson Carol Corbin during a recent interview with the Stabroek News.
Meanwhile, Gaskin also noted that through the Inter-American Development Bank (IDB)-funded Micro Small Enterprise Development (MSED) programme, which started in 2014 and ended in October of this year, a total of 222 loans were disbursed at a cost of US $3.68 million, as well as 559 grants at a total cost of G$171 million.
The Ministry of Business will also be getting a new building set to cost about $201 million and the current South Road Office will undergo $87.5 million in rehabilitation works.
Gaskin was reminded by PPP/C Chief Whip Gail Teixeira that last year $87.5 million was allocated but only $40.9 million was used and she wanted to know why.
Gaskin reported that “works had not proceeded as expected” because there was a “falling out” between the contractor and the consultant of the project, much to his ministry’s “frustration.”
Hamilton sought clarity on if the project was scheduled to be a multi-year one but was told by Gaskin it was to be completed by the end of this year but the falling out between the contractor and the consultant saw the project being stalled and thus carried over to 2019.
PPP/C Member Gillian Burton queried if the requisite bonds from the contractor and consultant were still in effect and Gaskin pointed out that they would be until the end of this month.
And while he explained that the consultant has collected $6 million of a $6.3 million contract and the contractor $34 million of $40.9 million, he could not say what percentage of the works had been completed. He did not name the contractor.
Meanwhile, Gaskin has said that in the area of tourism development and promotion, government in showing its commitment to this industry has allocated over $300 million for 2019, an increase from a $123 million allocated in 2014 for the Guyana Tourism Authority. He said that visitor arrival figures up to September this year show a 17% increase over the same period last year and that an additional 30,000 visitors will bring in a least US$15 million in taxes alone.
PPP/C member Burton pointed to line item 6291, headlined “National and Other Events,” which stated government spent $30 million in this area. She asked Gaskin to give a breakdown of the spending. “ Mr. Chairman, birding tourism, $1 million; cultural tourism, $3 million; regional development tourism strategy to support tourism flagship projects in all in all 10 regions, $10 million; sports tourism, $4 million; Mashramami celebrations, $1 million; Easter celebrations, $500,000; Phagwah celebrations, $500,000; Bartica Regatta, $650,000; Rupununi Rodeo, $650,000; wedding destination $500,000; independence, $700,000; Arrival Day, $300,000; Linden Town Week, $500,000; Caribbean Premier League Cricket, $1 million; Jamzone Summer Break, $500,000; King’s Duck Curry Competition, $500,000…,” he said.
Burton zeroed in on the sport tourism’s allocation and sought to find out what activities were planned. Gaskin said, “there are various sports activities, be it football, Inter-Guiana Games… whatever that brings people to the country. That is supported by the department of tourism.”
But Burton wanted to know how Guyana can benefit from such investments. “We need only look back a few weeks at the women’s cricket and we would see that all our hotels were full. So sports tourism is very real and does benefit our economy and we need to raise awareness,” he replied.
He added that budget 2019 will cater for funds to host workshops and various activities designed to show how sport tourism is “real and tangible and needs to be supported.”
The allocations for the ministry were eventually approved.
