Dear Editor,
It has become the norm, without exception, that the Opposition in Guyana utilizes every opportunity to give a political twist and flavour to each and every issue. The more recent example has been the Opposition’s attack on the retroactive 6.5% wage increase announced by the Senior Minister of Finance, Dr. Ashni Singh. The Minister announced that 54,000 public servants, members of the disciplined services, constitutional office holders and government pensioners will benefit putting $7.5 billion in disposable income into the economy. In addition, 12,000 members of the disciplined services will receive one-month tax-free bonus which will include for the first time civilians.
This adds another $1.5 billion in disposable income. Earlier, President Ali had announced salary adjustments for graduate teachers, an increase in the Remote Areas Incentive (RAI) for hinterland teachers, and duty-free concessions for teachers who hold a substantive appointment as a Senior Master/Mistress. Moreover, public servants, teachers, members of the disciplined services, staff of semi-autonomous agencies, and public enterprises will also receive a $25,000 one-off bonus payable in December 2023. The above is just the dollars input to alleviate the current cost of living effects.
There is a myriad of other support measures which have been implemented in the various sectors, especially in the Agriculture sector to keep the cost of living in check. Anytime the Opposition speaks about cost of living they used ‘bigan and bora’ and other agriculture produce as the benchmark. Any layman is aware that the vagaries of the weather will affect the supply and price of these items and against this backdrop there has been a steady influx of thousands of immigrants who will most definitely send the demand for goods and services skyrocketing. However, for the longest while the prices for many items of grocery, clothing, meat, fish, shrimps, and other items in the supermarkets have remained stable. This is in addition to building materials.
The rise has been an ongoing challenge for many developed countries and all are complaining about the rising prices but Guyanese are lucky to have a Government who has done so much to keep the cost of living livable. We should never analyze any issue in isolation. We cannot afford to miss the forest for the trees (or tree). This Government has done many things to ease the cost of living since assuming office in 2020. Let’s go back to the COVID relief, the flood relief, tax reliefs, subsidies to pensioners and cash grant to students, grants to farmers, grants to fishermen and a slew of other fortifying and stabilizing cost of living reliefs. The Government has left no strategy unexplored to ensure that the people enjoy the ‘good life’ which was just an illusion under the Coalition. Now they want to be on a pedestal and lecture this Government about the cost of living.
There has been much hue and cry by the Opposition with regards to the 6.5% increase, labelling it as ‘shame…pitiful…ridiculous’. But Norton forgot that the Coalition took away the bonus for the disciplined services but is now advocating for more be given to them, they gave paltry wages increase and increase taxation to a suffocating level whilst they increased their tax –free salaries by 50% and more, they created no jobs but dismissed thousands across the country, GUYSUCO being the prime target, they even implemented a wage freeze at GUYSUCO(5% in four years), billions were siphoned off and the Treasury and Reserves depleted dry and the list goes on. They only built arches and painted the country green with nothing else to show. During their tenure they squandered over a trillion dollars but only developed themselves and cronies. Mr. Norton seemed to believe that wages and salaries increase should take the biggest chunk from the Budget, ‘the “ridiculous” pay hike represents less than 1 percent of this year’s GY$782 billion National Budget’. Mr Norton should really look at the massive development unfolding across the length and breadth of Guyana before making such outlandish statements.
It is basic economics that any increase in wages and salaries must be analyzed in the context of the economic conditions prevailing in the country and I am sure that Mr Norton is aware of ‘wage push inflation’. If wages and salaries continue to increase there will be an increase in demand which will push prices further up, this will up the production cost as well and makes the prices for goods and service move in the same direction. Even the man in the street knows this. Every aspect of the wage increase must be studied properly in conjunction with other measures which will dilute the negative effect. We must increase our productivity and production to support any wage increase. If the country is caught in an inflationary spiral then the value of the dollar will continue to decrease, buying less than before. I am sure that all these factors were considered by the Minister and his Government and they did not do so in isolation.
Whilst the Coalition gave wages and salary increases, they took it back with a skillful sleight of the hand. They taxed Guyanese to the hilt, so that any increase in wages became meaningless. They gave a little, but took more in the end. Not so this Government.
Sincerely,
Haseef Yusuf
