PRESS BRIEFING

Thursday, January 19, 2006

CONTRACTS

PRESS BRIEFING

Thursday, January 19, 2006

AGENDA

1.                  CONTRACTS

2.                  FLOOD RESPONSES

3.                  BUDGET 2006

4.                  PARLIAMENT SITTING

FLOOD RESPONSES

Since Minister Satyadeow Sawh addressed the National Assembly on December 29, 2005, on the flood situation, there has been significant worsening.

Rainfall has been persistent and at high levels in the Coastal Regions. As a result, the total capacity to store water in the various reservoirs, national and/or manmade and the capacity to discharge waters have been overwhelmed.

The main Rivers are flooded for various lengths along their course to the sea. Backlands are inundated and flooding is spreading to front lands. Government interventions have been in the humanitarian sector and in response to technical considerations.

With regards to humanitarian responses: In Region 2, financial support has been provided to about 1400 affected households in the Riverain communities there at a cost of about $70 M GYD.

In Region 3, the Canal Polders are prime examples of cash crop cultivated areas and financial support has been provided to about 800 affected farmers there at a cost of about $40 M GYD.

2. In Region 5, about 900 cash crop and cattle farmers in the Creeks have been provided with financial support as well as cattle feed and other veterinary goods intervention at a cost of about $73 M GYD.

The rice farmers there were provided with an augmented package compared to the rice farmers from other non-flood affected areas. In the Amerindian Heritage village of 2005, Moraiakabai, flood relief has already been provided to about 174 affected households at a cost of about $4 M GYD.

In Region 6, financial flood relief has also been provided to about 750 affected farmers there at a cost of approximately $37 M GYD.

Overall, over 3,500 households at a cost of $200 M GYD has been expended for humanitarian support for affected communities.

With regards to responses to technical consideration, the interventions have seen short term ones to promote movement of water from flooded areas in affected Regions. More medium term have seen the procurement of a large fleet of earth moving equipment.

In Region 2, and subsequent to the Cabinet Ministerial Fan Out exercise in the Pomeroon River, funds have been released to permanently provide earth-moving equipment so as to mitigate the impact of the seasonal rains by empoldering.

In Region 3, heavy-duty earth moving equipment is also being provided on a permanent basis. This facility will eventually complement drainage works currently being done in the Canal Polders by the Regional Administration.

In Region 5, earth-moving equipment being acquired will also be permanently allocated to the Region along with those to be acquired through the Italian line of credit intended for MMA.

3. In Region 6, components of the heavy-duty earth moving equipment being acquired will also be permanently allocated to the Region.

The reaction to Government of Guyana interventions have been mixed. Most residents in affected areas have responded favourably to the prompt responses of the Administration in providing humanitarian assistance.

Unfortunately, some misguided individuals have been encouraged by their concubines and political demagogues masquerading as friends to engage in illegal and antisocial behaviour.

A number of attempts have been made to block transportation arteries particularly in Regions 4, 5 and 6. This reckless and inconsiderate behaviour is so reminiscent of similar and politically inspired actions in Region 3 during the January 2005 flood and the PPP/C response is the same. Those who seek to make mileage out of people’s misery should reconsider this behaviour.

It will not be tolerated and will not be seen nor treated as a basis for forcing the hands of the Administration.

Some sections of the media sympathetic to the Opposition seem to support such behaviour and that is so soon after their commitment to a Media Code of Conduct.

We again encourage those misguided elements with seeming political agendas, not to cause more harm and uncertainties for the affected residents.

The Administration has briefed and has arranged other briefings for the general public, NGOs, political parties and the donor community.

The PPP/C Administration recognises the particular situation that has affected the livelihood of the farming community across Guyana and will continue to do all that is possible to alleviate their suffering.

BUDGET 2006

Budget Day is scheduled for Monday, January 23, 2006, compared to February 21, 2005.

Cabinet continued its review of preparations of Budget 2006 at a dedicated session on Friday, January 13, 2006.

The meeting examined the following main areas.

The 2006 Budget exhibiting:

1. A vision of positive achievements in economic sectors sufficient enough to support and sustain optimism on a national scale.

Committed Social Sector spending:

The existing pro poor expenditure strategy is institutionalised and will continue. Its focus in providing goods and services in Health, Housing and Water, Education, will remain high on the PPP/C Agenda in 2006.

Budgetary resources will be provided as in 2005 to provide electricity and water to more squatting areas and new housing estates being provided with infrastructure. Phase 2 works will be financed.

2. Spending on economic Infrastructural Development will continue as targetted so as to maintain the momentum created in 2005 with roads, bridges and sea defence civil works. New Municipal and Community Services Development will be financed this year with emphasis on Regions 2, 3 and 7.

3. The productive sector will see financing levels maintained as targetted in Agriculture, (Forestry & Fisheries), through Land Regularisation, Drainage and Irrigation and promotion of Credit facilities to farmers and agricultural entrepreneurs.

Mining and quarrying activities are expected to continue their attractiveness for F.D.I.

2. Increased private investments in those areas are clearly anticipated.

The meeting identified strategies for meeting the requirements for new growth areas in Tourism, Service Sectors and ITC.

The meeting noted the continued efforts to maintain macroeconomic stability and the commitment to sterilisation of excess liquidity control of inflation and the stability of stable international reserves and exchange rates.

The Minister confirmed readiness for the January 23, 2006, presentation date for the Budget speech and the presentation of the Estimates of Expenditure and Revenue for 2006.

PARLIAMENT SITTING

The 1 st Sitting of the National Assembly for 2006 is scheduled for Thursday, January 19, 2006.

The meeting will see the following PPP/C Government business, tabling of a number of Bills and Reports from Select Committees.

The Government Bills to be tabled include:

1.                  Trade Union Recognition Amendment Bill;

2.                  Caribbean Community (Movement of Factors) Bill re:

-                      Rights of Establishment

-                      Rights to provide Services

-                      Rights to provide Capital

3.                  Caribbean Community Bill

4.                  Supplementary Appropriation Bill #5 of 2005.

The Reports from the Select Committees to be laid by Government include the ones from the Committees that dealt with:

1.                  VAT Regulations;

2.                  Excise Tax Regulations.

TOP