The National Assembly yesterday approved legislation which establishes the Standing Committee on Appointments, and a bill which gives effect to tax measures introduced in the National Budget for 2003.
By a 55-0 majority the Assembly approved the motion establishing a Standing Committee on Appointments to undertake the consultation process on its behalf for nominating persons to sit on the constitutional commissions. Passage of the motion required a two-thirds vote to give effect to Article 119C of the Constitution.
In the new spirit of co-operation and consensus which was made possible by the communiqué signed on Tuesday by President Bharrat Jagdeo and PNCR leader, Robert Corbin, the Assembly accepted an amendment moved by Health Minister Leslie Ramsammy to the motion on the Standing Committee, which is one of the menu of measures in the communiqué. The amendment removed the clause that named the organisations that should be among those the committee consults before making its recommendations to the National Assembly. This clause has caused concerns to a number of unions and other organisations and the parties agreed to leave it to the Committee itself to review and report to the Parliament.
The Assembly approved the Fiscal Enactment (Amendment) Bill 2003, which raises the income tax threshold from January 1, 2003; imposes a 10 per cent tax on local telephone calls whether made from a land line or cell phone and increases the withholding tax from 15 per cent to 20 per cent on savings dividends and on payments from 10 per cent to 20 per cent effective from April 1, 2003.
Resuming his presentation on the motion that was moved by Minister of Culture, Youth and Sport, Gail Teixeira, on Friday, PNCR Chief Whip Lance Carberry observed that the motion now provided parliament with powers which were once the discretion of the executive and that its provisions were to ensure that the expectations generated by Article 119 C of the constitution were realised.
GAP/WPA MP Sheila Holder whose party also supported the motion said that it fulfilled the wishes of the Guyanese people as expressed in the report of the Constitution Reform Commission that all the constitutional bodies should be independent, autonomous and free of political interference.
She observed that its provisions called for the National Assembly, through the committee, to enter into meaningful- defined as substantial in the Webster's Dictionary - consultations with various interest groups when making nominations for appointment to commissions.
Holder said the motion was timely as it came at a time when the people's faith in the institutions was at the lowest ebb.
She said the challenge for the members of the committee of which she is a member would be to act impartially and wisely and she urged the Guyanese people to hold public officials to high standards of conduct.
Ramsammy, in moving the amendment to the motion, noted that despite how acrimonious debate may get between the parties, they always seemed to find ways to accommodate the views of each other.
He observed that the governance arrangements being fashioned had inclusivity as their bedrock but also give and take. He asserted that the parliament today was substantially different from what it was a decade ago even though there were still improvements that had to be made.
ROAR's Ravi Dev in supporting the bill said that the experience had shown how easy it was to gut the intentions of the framers of the constitution in relation to the commissions if inputs were received from only one side.
Looking at it from the perspective of widening the circle of organisations to be consulted, Dev said it would be possible to appoint people who would put the national interest above partisan ones.
The United Force leader, Trade Minister Manzoor Nadir noted that the motion enlarges the parliamentary democracy beyond the casting of the ballots at elections.
Corbin in wrapping up the PNCR's presentation said that the motion provided the legal framework for the operationalisation of a parliamentary democracy.
He asserted that the success of the measure would depend a lot on how the spirit and meaning of the articles were observed and how efficiently the committee worked in discharging its mandate.
Explaining the reasons for the removal of the resolve clause, Corbin said that it was to provide the committee with the opportunity to consult with all the groups likely to be affected by the decisions of a particular commission.
Referring to the communiqué he signed with President Jagdeo, Corbin said the two of them took the approach of dealing with the issues of concern to the people of Guyana. He explained that the country would not move forward unless "we act in good faith" and that the motion approving the establishment of the parliamentary management committee provided an early opportunity to put into practice the changes that would lead to a parliamentary democracy.
The Fiscal Enactment Bill generated a lively debate, with the government rejecting arguments that the retroactive imposition of the taxes was legally and constitutionally unsound and morally wrong. PNCR front-bencher, Winston Murray made those arguments, pointing out that the bill should have been in place by March 31, and the parliament should not endorse the administration's incompetence.
He criticised the bill for not addressing the objectives of widening the tax base, improving the tax administration and modernising the tax system which Water Minister, Shaik Baksh said were its objectives. Baksh piloted the bill through the Second and Third Readings since Finance Minister Saisnarine Kowlessar was absent.
Murray criticised the increase in the withholding tax on savings, pointing out that when it was introduced by the previous administration interest rates were over 30 per cent and the issue then was of expatriate Guyanese who were banking locally because the interest rates overseas were around 3 per cent. He said that now interest rates were at between 3-5 per cent the increase would be a disincentive to savings at a time when there was need for increased savings.
The tax on telephone calls, he said, was wrong especially at this time when it was an essential measure in helping poor people to deal with the stresses of the society. Also because of the security situation, it was necessary for keeping in touch with their relatives.
Murray tabled a number of amendments among them an increase in the tax threshold from $240,000 to $264,000 but the government said that it could not accept that as its budget projections were based on the taxes being collected from April 1. The government accepted the amendment he made with reference to the Third Schedule of the Income Tax.
Holder also criticised the increased taxes, stressing the questionable legality of their retroactive imposition as well as the piecemeal approach to tax reform. Baksh rejected this and pointed out that the bill was not a "stand alone" measure detailed in the Budget. He invited the opposition members to read it.
Nadir in supporting the bill took issue with Murray's amendments, calling them a departure from local parliamentary convention, which allowed the fiscal measures contained in the Budget to be approved without amendment.
He also challenged Murray's mathematics, pointing out that the taxpayer paid more when the interest rates were over 30 per cent.
Other business at yesterday's sitting included the tabling of the Constitution (Amendment) Bill 2003 by Attorney-General Doodnauth Singh SC, which alters Article 197 A to provide the Disciplined Forces Commission with the authority and powers to conduct inquiries. This is another of the menu of measures in the Jagdeo-Corbin communiqué. A companion motion related to the terms of reference of the commissions, Corbin said, would be introduced after the passage of the amendment to avoid any conflict with the article as presently worded.
The Attorney-General also moved the Second Reading of the Land Registry (Amendment) Bill 2002.