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August 25,2016 Source

To improve the competitiveness of local manufacturers, former President and Leader of the Opposition, Bharrat Jagdeo suggests that energy concessions and special tax rates should be implemented.

Opposition Leader, Bharrat Jagdeo

Opposition Leader, Bharrat Jagdeo

Jagdeo made this remark yesterday during a press conference at his party’s headquarters. He was asked to comment on the state of the economy, where local traders are importing manufactured commodities which can be made in Guyana.
According to Jagdeo, the manufacturing sector in Guyana is at a severe disadvantage. He said that the cost attached to production is one of the major challenges facing entrepreneurs. Cost relating to electricity supply to factories, particularly, was pointed out by the politician.


He said that during his party’s tenure it had attempted to bring the cost down for electricity through the implementation of hydropower-derived electricity. Jagdeo said that for years he had been trying to find out the subsidy scheme as it relates to power supply employed by Trinidad and Tobago and Suriname.The wisdom behind this approach, he explained, was having cognizance of the fact that Guyana shares the same market with its Regional counterparts. He said that his government had realised that in those countries the electricity is heavily subsidised.


This, Jagdeo said, places Guyanese manufacturers at a severe disadvantage in what is to be a Common Single Market and Economy (CSME) since Guyanese cannot compete regionally. This is so since the cost per unit sold by a Guyanese would be higher.The former Head of State said that the government of Trinidad and Tobago had admitted last year to offering subsidies to its local manufacturers. He stressed the point that this is a more significant issue which needs to be addressed, rather than the current administration trying to comply with a provision under the Revised Treaty of Chaguaramas (RTC)’s Common External Tariff (CET). The provision Jagdeo referenced stipulates that certain items, particularly raw materials, imported by manufacturers are now subjected to being taxed.


Jagdeo said that incentives are important and as such, duty free concessions would play a big role in cutting costs. However the implementation of the CET, he said will reduce the impact of concessions.On a previous occasion, Jagdeo had said that his party allowed tax exemptions on these items using the Customs Act. According to him, doing so was not a breach of the Treaty, but simply an application of domestic law for the benefit of local manufacturers.This was done so as to process the necessary inputs into the sector. Jagdeo took the position that if Guyana is being asked to comply with the list of ineligibles as highlighted in the RTC, then the other member states of CARICOM should justify the subsidies which they grant their manufacturers. He posited that for full compliance to be promoted, then it must come as a whole and not partially.


The Guyana Manufacturing and Services Association (GMSA) had said that the imposition of tax on ineligibles will result in manufacturers paying more for imported raw materials. This will inevitably lead to consumers paying higher prices for certain commodities, thereby reducing their competitiveness in the market.Jagdeo said yesterday that Guyana will never be one of the large manufacturing nations of the world, but insisted that creative ways must be found to deal with the issue. He believes that Minister of Business Dominic Gaskin should use the opportunity now to open up a full debate on the matter, recognizing that persons will take various positions on the issue.He went a step further to mention freight and Information Communication Technology (ICT) as other issues which need to be considered regarding the exportation of products as well as increasing productivity.He said that emphasis on ICT will address the issue of training. Jagdeo reminded that the Board of Industrial Training had embarked on a programme to produce more skilled people.


Further on his list of suggestions, Jagdeo also argued that granting special tax rates can encourage competitive manufacturing. He admitted that taking this step would see the coalition government going a step further than his administration.
According to him, this special tax rate would be given to persons who produce similar items locally which are currently being imported.A recent article published by this newspaper revealed that certain traders are importing rice from Pakistan, Roti from Suriname, Sweet Tamarind, Coconut water and Tamarind Candy Balls from Thailand, Plantain Chips from Jamaica and Cane Juice from Canada. All of these commodities are native to Guyana.

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Activities brings down prices. Sluggishness is a way of life for every home based Guyanese. Politicians included, they have all the ideas but fail to understand they are the once who hold back progress in Guyana.

S

The Guyanese producers should have a competitive advantage in manufacturing. This present govt is not giving them this nor are they providing any opportunities for the local producers.  For instance, the govt can easily use its buying power to set an example by buying local. Instead they choose to buy Suriname plantain chips. Also more sadly is that the Guyanese public prefer foreign products to their own country's detriment. There must be a push by govt to encourage the people to buy local and support local manufacturing. 

FM
Drugb posted:

The Guyanese producers should have a competitive advantage in manufacturing. facturing. 

So why was this not evident during the PPP era?  You cannot cite any instance of mass closures of manufacturing plants this year.

In addition the government doesn't import plantain chips. Some private person does.  Government cannot prevent importation of products from another CARICOM nation.  Its isn't the fault of those countries that, aside from rice, sugar, and fish Guyana sells little to the rest of CARICOM.

FM
Last edited by Former Member
caribny posted:
Drugb posted:

The Guyanese producers should have a competitive advantage in manufacturing. facturing. 

So why was this not evident during the PPP era?  You cannot cite any instance of mass closures of manufacturing plants this year.

In addition the government doesn't import plantain chips. Some private person does.  Government cannot prevent importation of products from another CARICOM nation.  Its isn't the fault of those countries that, aside from rice, sugar, and fish Guyana sells little to the rest of CARICOM.

Yes they can affect change. This is why the people elect a govt. In this scenario the PNC rigged their way into power. Regardless, the people expect them to rectify the situation, not come up with excuses and point backwards to the PPP. An exercise you are all to familiar with, your handlers in the OP must have given you this directive after they resigned themselves to be a do nothing government. 

FM
Drugb posted:
. In this scenario the PNC rigged their way into power.

You mean to tell me that the PPP was so incompetent, that they were in power in 2015, and let an opposition party rig the election. If that happened then they deserved to lose.

 

FM
Drugb posted:

The Guyanese producers should have a competitive advantage in manufacturing. This present govt is not giving them this nor are they providing any opportunities for the local producers.  For instance, the govt can easily use its buying power to set an example by buying local. Instead they choose to buy Suriname plantain chips. Also more sadly is that the Guyanese public prefer foreign products to their own country's detriment. There must be a push by govt to encourage the people to buy local and support local manufacturing. 

But when Burnham was chanting "buy local", people (we) did not embrace fully.  Yet local rice cereal and other products were better than imported!  I said this many times, not every initiative by the past PNC was bad, actually some were real good and they should re-look.  However, as long as power remains an issue, they will be at a disadvantage!

Guyana needs to revert to a campaign of nationalism, promoting its local products because, as Caribj said, banning and tariffs is out of the question within Caricom.  Also, local production must meet the standards and appeal as the foreign.  They need to use established and known brands like DIH, Beharry, etc to help push these!

Now, I realize Caribj will have an issue with the "non-Guyanese" sounding Beharry name as an agent of Guyanese nationalism.  But he will [one day] get over it!!

FM
caribny posted:
Drugb posted:
. In this scenario the PNC rigged their way into power.

You mean to tell me that the PPP was so incompetent, that they were in power in 2015, and let an opposition party rig the election. If that happened then they deserved to lose.

 

It is not about deserving to lose but about a  rigged elections. When Blacks were intimidated in the South in the US from voting did they deserve to lose their votes then? Indeed the PPP blundered by allowing 99.9% of election workers to be PNC supporters, but this does not make rigging ok. 

FM
ba$eman posted:
 

Now, I realize Caribj will have an issue with the "non-Guyanese" sounding Beharry name as an agent of Guyanese nationalism.  But he will [one day] get over it!!

Beharry is a very "Guyanese" name.  Unlike you I am PROUD of our religious, ethnic and cultural diversity.  Guyanese, Trinidadians, and Surinamers are more interesting than Barbadians and Antiguans.

Not only is there a lot of variety with all of these diverse peoples but, to the chagrin of people like Prashad, and yuji, people do combine these cultures and fuse them.   An  African and an Indian (real ones) will be fascinated hearing Indo Guyanese music.  A definite "big drum" African beat fused with the lighter tassa drum more traditional Indian rhythms.

Prashad will have a nervous break down when I say this, but some Asian Indians claim that Indo Caribbean females dance like  Africans when they attempt to interpret Indian dances.  Why?  Because they are more likely to dance soca and reggae.  African dance features the core of the body in its movements, whereas Indian features more the edges (limbs). Caribbean females, regardless of race, use the core. 

And of course all of us use (or at least used to use) Hindi derived words in Guyanese language and don't even think about it.

FM
Last edited by Former Member
Drugb posted:
 

 Indeed the PPP blundered by allowing 99.9% of election workers to be PNC supporters, but this does not make rigging ok. 

Indians don't want $200/month "black people" jobs.  In fact Indians used to laugh at blacks and considered their dominance in those jobs as a sign of inferiority.

If Indians look down on clerical jobs and work in the armed forces then most of those will be black.

And in fact if indeed there was this great PNC control when Hoyte urged the police and the army to engage in "slo fiah mo fiah", basically suggesting a coup, they didn't.   In 1999 if the GDF and GPF surrounded Janet Jagan and packed her on a plane to the USA there is nothing that she could have done to stop them.

Look at how Roger Khan and Jagdeo and Gajraj were able to get blacks to kill other blacks.  PNC control? I don't think so as many of the people who the PPP and its agents used were police or soldiers.

So your notion that the PNC ran Guyana between 1992 and 2015 is a laugh.  In fact the very reason why so many of them are now massively corrupt is that they were starving during those years, so want to grab what they can while they can.

FM
  1. caribny posted:
    Drugb posted:
     

     Indeed the PPP blundered by allowing 99.9% of election workers to be PNC supporters, but this does not make rigging ok. 

    Indians don't want $200/month "black people" jobs.  In fact Indians used to laugh at blacks and considered their dominance in those jobs as a sign of inferiority.

    If Indians look down on clerical jobs and work in the armed forces then most of those will be black.

    And in fact if indeed there was this great PNC control when Hoyte urged the police and the army to engage in "slo fiah mo fiah", basically suggesting a coup, they didn't.   In 1999 if the GDF and GPF surrounded Janet Jagan and packed her on a plane to the USA there is nothing that she could have done to stop them.

    Look at how Roger Khan and Jagdeo and Gajraj were able to get blacks to kill other blacks.  PNC control? I don't think so as many of the people who the PPP and its agents used were police or soldiers.

    So your notion that the PNC ran Guyana between 1992 and 2015 is a laugh.  In fact the very reason why so many of them are now massively corrupt is that they were starving during those years, so want to grab what they can while they can.

    These are lies that you make up to substantiate your racism.  The public service has always shut out Indians in favor of Blacks. The PPP left the Blacks in leadership roles for 23 years and as a result we see a racist public service as a fraternity for the qwe qwe crew. 

FM

This whole series by the KN has been excellent, really well written and informative.

A complex issue with no short cuts, APNU said that they don't have a plan for the economy (and it shows) and here we have a great discussion both from a historically perspective up to the present day and yet still not an idea of what to do? 

It's not going to be easy, we don't have the capital to invest at his stage to scale and build an export led economy, but we do have small levels of manufacturing that can be diversified and not to have a plan or even have a wider discussion with businesses, investors and workers, is baffling to say the least 

Well done KN and more of the same 

FM
Drugb posted:
  1.  

    These are lies that you make up to substantiate your racism.  The public service has always shut out Indians in favor of Blacks. The PPP left the Blacks in leadership roles for 23 years and as a result we see a racist public service as a fraternity for the qwe qwe crew. 

So tell me great Druggie how come when Luncheon was asked to name the blacks who made decisions he could only name a few ministers and one or two others.  All of the blacks were in roles where they IMPLEMENTED policy, NOT DETERMINED what it should be.

Your boy Jagdeo was forced to withdraw his law suit against Freddie K who called him an institutional racist.

Turns out that Jagdeo was unable to prove that he wasn't a racist.

Now I know that you are a class idiot but please understand this.  The person with the power wasn't the little customs officers. It is who ever heads up GRA.  If the black customs officer harasses you, and then you complained to his Indian boss, he was HISTORY!  Loads of blacks found that out.

FM
Dougla_80 posted:

This whole series by the KN has been excellent, really well written and informative.

 

Well done KN and more of the same 

I agree.  And for once it wasn't partisan.

FM
caribny posted:
Drugb posted:
  1.  

    These are lies that you make up to substantiate your racis  m.  The public service has always shut out Indians in favor of Blacks. The PPP left the Blacks in leadership roles for 23 years and as a result we see a racist public service as a fraternity for the qwe qwe crew. 

So tell me great Druggie how come when Luncheon was asked to name the blacks who made decisions he could only name a few ministers and one or two others.  All of the blacks were in roles where they IMPLEMENTED policy, NOT DETERMINED what it should be.

Your boy Jagdeo was forced to withdraw his law suit against Freddie K who called him an institutional racist.

Turns out that Jagdeo was unable to prove that he wasn't a racist.

Now I know that you are a class idiot but please understand this.  The person with the power wasn't the little customs officers. It is who ever heads up GRA.  If the black customs officer harasses you, and then you complained to his Indian boss, he was HISTORY!  Loads of blacks found that out.

These are more lies that you peddle with fictitious accounts of events. The fact remains that the public service sector is 99.9% afro, a clear sign that Indians are exclude from these jobs. If an Indian will farm for a pittance or work as a store assistant, then they too should be allowed in public service jobs. Instead the low level Black managers ensure that their kit and kin get those jobs. The PPP stood by and let this happen as a way of appeasing Blacks for 23 years. In the end it did not ensure them loyalty as the Blacks turned around and rigged the elections, proving how ungrateful their lot was.  

FM

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