Some execution attained but follow-up retreat needed
- Yankana

By Gitanjali Singh
Stabroek News
November 6, 2000


ONE year after the historic presidential business retreat with the local private sector, implementers of the accord are reviewing their progress and are discussing a follow-up retreat.

Movement, but not full implementation, has been achieved on a number of the nineteen commitments made but deadlines have not been met.

"Those things that were of much concern to us, such as the investment code, the small business act and moving forward with a stock exchange, we have seen much movement on those issues. Those issues on which we have not had much movement needed much ministerial input and the implementation committee was not able to persuade a faster reaction to the demands outlined in the communique," David Yankana, a private sector member of that committee said this week.

Yankana said commitments made for the rice sector, the poultry industry and the garment industry as outlined in the communique issued on October 11, 1999 at the end of the retreat with President Bharrat Jagdeo were achieved. The commitments made (in italics) and the progress on these are outlined below.

For the rice industry, it was agreed that the government would vigorously pursue the removal of barriers that Guyana's rice faces in some Caricom states and to work actively to increase regional and extra-regional markets. The Guyana Rice Development Board undertook to submit a paper to Jagdeo on the status of the industry.

Yankana said the paper was submitted by the GRDB and there has been frequent discussions with local rice producers and millers and importers from Trinidad to allow for greater access to that 30 000- odd tons parboil rice market.

He said there has been some measure of breakthrough with the Trinidad market, following a visit last month to Trinidad by a Guyana delegation, including the private sector to discuss irritants to trade. Yankana said a number of commitments were made to clear the bottlenecks, including the two customs departments meeting and exporters from Guyana getting prompt payment by Trinidadian importers. Guyana is currently servicing about 40% of the Trinidadian market and the private sector wants to increase this.

On the other hand, Yankana noted that minister of trade, Geoffrey DaSilva, is discussing the Jamaican market with his counterparts in Jamaica.

In the case of establishing a development bank in Guyana, the Guyana Manufacturers' Association was tasked with presenting a concept paper by December 31, 1999. The government agreed to waive taxes and reserve requirements and to help secure credit lines for the financing of this institution.

The concept paper was delivered to the minister with portfolio for finance, Saisnarine Kowlessar this year and Development Finance Limited of Trinidad in September of this year agreed to establish a development bank in Guyana.

On mining, it was agreed that discussions would immediately take place on strengthening/rationalising the existing administrative structures. This would have included if needed, a special ministerial mechanism. An undertaking was made to link royalty payments for small and medium size miners to the world market price of gold.

Yankana said this issue was turned over to the Guyana Geology and Mines Commission and he is unaware of the status of its implementation.

The government had also agreed to house and fund the Tourism Authority for a period to be agreed on and additional incentives were to be given to the sector, leading investments to stimulate growth in tourism.

To date, the authority has not been established although there was a $15M provision in this year's budget for it. Yankana said as far as he is aware, legislation is to be put in place shortly to give effect to the Tourism Authority. He said work has been completed for the accommodation of this authority in the old archives and the issue is under the control of the ministry of trade.

Incentives, he said, will be dealt with in the investment code.

The retreat also agreed that a joint working group from the public and private sector will deal with land issues and decentralisation of land administration. The private sector was to work with the government to implement the provisions of the Deeds Registry Act and to see a semi-autonomous Lands and Survey Authority established.

The joint implementation committee has not considered this issue which was transferred to the ministry of agriculture for action. The ministry was to initiate discussion on a land policy. There has also been no action on the Act or the Lands and Survey Authority.

A small business act was to be laid in parliament last December. This act was to simplify registration, provide special incentives and a favourable tax regime for small and micro-enterprises.

The small business act was completed and commented on by stakeholders. Yankana said the implementation committee is ready to have this delivered to the government.

It was also agreed that consideration would be given for placing government technical institutes under autonomous management to enhance the development of relevant skills. It was also agreed that donor support for skills training would be streamlined and coordinated. There was to be an immediate study of the need for a curriculum review and reform.

Yankana said that the committee has had discussions with the Ministry of Education and the bill to facilitate this is set to go before parliament to have a technical and vocational council established. However, he indicated that there were difficulties on the private sector part on aspects of the bill which dealt with a training levy. He confirmed that the private sector saw such a levy as additional taxation and were opposed to it.

As to the curriculum review, Yankana indicated that the implementation unit is working with the Ministry of Labour to get the labour market information survey underway. This survey will inform the needs of the labour market and the curriculum.

The money laundering bill was to be passed after the Private Sector Commission and the Guyana Bankers Association reviewed it.

The bill was passed on February 10 of this year but to date the supervisory authority has not been named, Yankana noted.

The Securities Bill was to be passed in parliament by December 31, 1999.

The bill was passed and the implementation committee via the Privatistion Unit and the Adam Smith Institute of the UK are proceeding very actively on enforcing this act.

Yankana said that Jonathan Miller, an Adam Smith Institute consultant is here and had a meeting planned for yesterday with the former members of the now defunct call exchange to discuss the way forward in naming the security council and the self-regulatory organisations to get the process underway.

The garment industry's consumption tax on local sales was to be waived to help bring stability to the sector. This has been done.

In the case of forestry, a national certification committee was to be put in place to facilitate certification of timber products in accordance with international standards. Grant resources were to be mobilised to support this body and consideration be given to establish a marketing council.

This, Yankana said, was not put before the implementation committee but was referred to the ministry with responsibility for forestry and the forest products association for action.

For the poultry industry, the accord said that if there was evidence of dumping, the government would make strong representation on this matter and the poultry advisory committee was to be reactivated.

Yankana said this issue was pursued at all levels and there has been some adjustments to the licensing arrangements but he did not elaborate.

A private sector committee was to be established to work with the Minister of Home Affairs to provide on a continuous basis inputs to deal with crime.

Such a committee was formed and meets with the Commissioner of Police occasionally. The last meeting was three months ago.

It was agreed in the area of tax reform that the IMF study on introducing value-added taxes be circulated in the private sector for review and recommendations. On expansion of the tax base, the private sector restated its support for the implementation of the Revenue Authority.

Yankana said a workshop will be help very shortly, taking a kindergarten approach to introduce value-added taxation to the private sector. He said that a resource person from the Caribbean is expected to share the case studies of the region in implementing value-added tax.

Introduction of the value-added tax in Guyana, Yankana said, is a matter for the government and the PSC is all for widening the tax net. He said if value-added tax will do this, then the PSC will support it.

The Revenue Authority was implemented but Yankana said one will have to wait to review its impact on the tax base.

Copyright legislation for parliament was another commitment of the retreat.

Yankana said as far as he is aware, this piece of legislation is completed but he is not sure at what level of the approval process it is at.

In the case of strategic investments such as the Berbice River Bridge, the Deep Water Harbour, the Canje Reservoir Scheme, the Guyana/Brazil Road and the Intermediate Savannahs Project, the retreat agreed that a joint private/public sector committee will examine the feasibility of these, mobilise resources and oversee implementation.

Yankana said nothing has been discussed on the deep water harbour, but the road to Brazil is under constant discussion between the private sector of Guyana and Brazil. He said while there is no immediate plan to build the road, it is on one of the burners and under active consultation.

The Canje reservoir scheme is in the hands of the ministries of agriculture and finance to pursue as well as the Intermediate Savannahs project.

It was also agreed that the joint committee should complete the investment code by November 30, 1999.

Yankana said work on the code has been finished and the committee is at the point where it is planning to take the code to the Berbice, Linden and Essequibo chambers of commerce for discussion before the end of this month. He said incentives for the tourism sector is covered in this code.

"I think there is need to have another summit to review what has been achieved and to deal with new issues arising out of changes in the process of development since that last meeting," Yankana told Stabroek News.

He said this is the view of the implementation committee and it was raised with Jagdeo, whose response to the idea has been positive.


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