President announces additional measures to cushion rising food prices
-public servants to get 5 % increase, flour prices to be subsidised, among others
Georgetown, GINA, May 7, 2008
Guyanese countrywide will shortly be benefitting from a number of measures to be put in place by Government almost immediately that should see them earning more and allowing for the reduction of the financial burden being experienced as a result of the rising cost of food on the world market.
Head of State Bharrat Jagdeo today announced the additional measures to be implemented immediately by his Government to cushion the impact of the continuing rising cost of commodities that has caused outrage in some countries and resulted in rioting in States such as Trinidad and Tobago, India and Haiti.
The President made the announcement during a press conference he hosted at the Office of the President.
One of the measures will see the Government subsidising the high cost of flour being charged to bakeries in the country by the National Milling Company (NAMILCO) thereby allowing for consumers to pay the old price for bread, pastries and biscuits. The President had met with bakers who had agreed to the subsidised measure about two weeks ago in return for selling their products at the old price. Today, the media reported on the 25 percent increase of flour as announced by NAMILCO.
“We recently noted the announcement by NAMILCO about price increases in flour which is considered a very important commodity for national consumption. It is one of the staples that our people use,” President Jagdeo told the media.
He noted however, that based on information he has received there are indications of a possible stabilising and even partial reversal in the price of wheat on the world market due to a bumper crop of wheat in some parts of the world. This, he said, should see prices of flour being reduced in the future.
“But NAMILCO had already imported wheat at a higher price so we anticipate that the higher prices will last for at least four months. We are hoping that when the cheaper wheat is acquired that after four months we can see a reduction in the price in four like we saw with chicken,” President Jagdeo explained, noting that chicken prices had reduced following a dramatic increase at one point previously.
“We hope that with flour that this happens. Therefore, I have granted approval for certain temporary transitional measures to be put in place to cushion the impact of increased flour prices on the most vulnerable sections of society,” the Head of State said.
The Government’s financial support to the bakeries should see about 22 of them benefitting from the subsidy and these cover approximately 95 percent of the bread market, according to the President.
“The flour that the bakers would be using under this subsidy will not only go towards the production of bread and pastries but also biscuit, but we hope that we will not see any price increase in bread and pastries because these bakers that I met with they cover the bulk of the market,” he assured.
In another major move to assist vulnerable citizens, the Government has purchased a specific amount of flour in small packages (approximately 200,000 grams (1kg sacks) and these are to be sold to vulnerable groups at the old price. This will be done by the Guyana Marketing Corporation (GMC) on a monthly basis.
“These interventions will be in place over the next four months and I hope that by supporting the price of bread and biscuits and pastries and not seeing any movement there and by distributing some 200,000 1kg sacks to vulnerable groups at the old price, we’d be able to cushion any impact on poverty,” the President reiterated.
President Jagdeo then announced another intervention which will directly benefit public servants whom he said will be granted a five percent increase in their wages and salaries effective January 1, 2008.
Alluding to a five percent increase already granted to the disciplined services and teachers at the beginning of this year, President Jagdeo noted that public servants had not benefited from this earlier increase. He reminded however that all categories of government workers had received a 9 percent increase effective January 1, 2007.
“Also, I have approved a temporary cost of living adjustment to be paid to Government employees whose basic salary is below a specified threshold. This initiative will see a temporary adjustment of $4,000 per month free of income tax during the months of May to December 2008,” President Jagdeo announced further.
He pointed out that Government employees such as teachers, nurses and members of the disciplined forces whose basic monthly salary is $50,000 or less based on April 2008 salaries after taking into account the 5 percent increase across the board, will benefit from this increase.
“Anyone who earns $50,000 and less will get a $4,000 temporary cost of living adjustment between now and December every month and that will be tax free,” he assured
The President pointed out though that these measures are temporary and Government will be reviewing them at the end of the year.
Meanwhile, another intervention by the Government through the Ministry of Agriculture will see the administration spending some $20M on the distribution of approximately 600,000 packages of seeds, fertilisers and pesticides across the ten regions of the country with the aim of increasing food production on a large scale as well as at the household level.
“I have already started looking at some of the larger schemes in Essequibo and some in Berbice and other parts of the country where we can work with the communities and probably grow more food because as I have always mentioned, the increase in prices has become a problem for many countries in the world,” he pointed out.
On this note, President Jagdeo said that Guyanese have the opportunity to capitalise on the food crisis by growing more food and earning more for their production. He promised that the situation will be reviewed and additional appropriate interventions made based on Government’s discussions and consultations with groups in the society.
Prior to today’s announcements, the Government had already made a number of interventions to cushion the increasing cost of food and fuel on the world market, including removing the excise tax from diesel, zero-rating a large number of basic food items, increasing the income tax threshold from $28,000 to $35,000 at the beginning of 2008 and increasing old age pension by 63 percent and public assistance by 82 percent this year. Excise tax on gasoline was also dramatically reduced by the Government from 50 percent to 17 percent while the increased fuel costs incurred by the Guyana Power and Light Company have been absorbed
. A whopping $5.8 billion investment, including $2 billion in recurrent support to the Guyana Water Incorporated (GWI) was also made by the Government last year and a similar amount is to be spent on the utility company this year as well, according to the President.
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Renewable energy resource the answer to rising fuel prices
-President tells media-alludes to hydropower necessity
Georgetown, GINA, May 7, 2008
Responding to questions by the media as to Government’s plans to mitigate the rising cost of transportation due to the rising cost of fuel, President Bharrat Jagdeo told the media today during a press conference at his Office that renewable energy resource is the answer.
The President had earlier announced a number of additional measures to be implemented by his Government that should see Guyanese being relieved of some of the financial burden being caused by rising food and fuel prices on the world market.
He explained that Guyana has the highest per capita consumption of fuel in Latin America.
“This is why we use now the equivalent of 35 percent of Gross Domestic Product (GDP) to import fuel. If it (fuel) goes to US$200 (per barrel) as predicted, I don’t think it’s going to get there in the near term but assuming that happens close to 70 percent of the GDP would be used to import fuel, equivalent of 70 percent of the economy. No country could sustain that kind of financial resources without there being serious problems,” President Jagdeo said.
He noted that the United States of America has been using less than five percent of its GDP to import fuel, but that most countries in the Caribbean due to their small economies and high per capita consumption, use a fairly significant part of their GDP to import the commodity.
“The answer has to be renewable, energy resources. I met with the investors for the AMAILA Falls project, the license should have expired at the end of April and I have given an extension up to the end of September when they told me that they would by then put in the tender request for proposals and they would have a firm idea as to what the price would be for the building of the transmission main and the hydropower itself,” he disclosed.
It is expected that the Head of State will again meet with the investors and according to him, if the group cannot complete the project, Government would have to find another route including getting directly involved in building the hydropower.
“This is going to happen, one way or another, we have to do that in the long run to transform this country,” President Jagdeo posited.
The President had long before alluded to the need for the hydropower project to come on stream as fuel prices continued to increase worldwide. The impact of this has been causing havoc in several countries. It has resulted in food prices increasing in Guyana and transport operators now calling for an increase in fares for public transportation.
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Gov’t has no information from US Gov’t on revelations in Roger Khan case
-President tells media
Georgetown, GINA, May 7, 2008
In response to various queries by the media on the revelations being made during the ongoing case against Roger Khan in the United States of America, President Bharrat Jagdeo told the media that his Government does not have any information from the US Government supporting any of the utterances in the Court during the presentation of evidence by the Prosecution.
The President was speaking at a press conference today which he hosted at his office to announce additional measures by Government to cushion rising food prices.
“If we have any detail as to how they came upon this evidence, or what evidence they have, then I think that the police should follow it up to the conclusion. although he’s not here in our jurisdiction, he’s over there but we have an obligation that if we are provided with any information by the US Gov’t about his involvement in any criminal activity, that that will be pursued by our law enforcement agencies,” the Head of State said.
He said from what he has gathered, US attorneys have been presenting evidence and information but that what needs to be asked is whether any of this was submitted to the Government of Guyana.
On this note, the President alluded to extraditions in the past which he said the US never requested.
“At one stage it was bandied around that, they wanted 14 persons extradited from Guyana. We did not receive requests for the extraditions. Many people thought that we were not moving on it but they never requested of us the extradition of these persons,” he explained.
He added, “It would be interesting. I have not asked the Commissioner of Police (COP) because I see it essentially as a court matter, whether they have shared any information with him but I don’t know of any that was shared with us, direct information saying we know he did this and this is the evidence we have supporting the contention that he killed this person or that person or he ordered a hit on this person or that person.”
He reiterated however that if the information is shared then ‘we have an obligation to investigate it to the end’.
As it relates to reports that Guyana may be looking to Colombia to assist with the investigations into the death of Mohamed Farouk Kalamadeen, the President said he does not know of any report to this effect but that if the COP has any lead that requires cooperation from Colombia, then this will be done.
“I don’t get into the details of the investigations. That’s done at the technical level, the police level, so of they have any lead that takes us to Colombia which I don’t know of at this point in time and it requires us to seek the support of the Colombian government, then we will do so,” he asserted.
Asked about the gunshots fired at the East La Penitence Police station recently, the Head of State said this is indeed worrying, but assured that the Police have been trained positing that it is only a matter of time before the gang is caught.
“We are going to get them I’m making it clear. We are not going to stop until we get them,” the President said.
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Overseas companies being considered as fraud investigation at GRA to be widened
-CANU staff undergoing polygraph tests-President says
Georgetown, GINA, May 7, 2008
The investigation launched into financial fraud at the Guyana Revenue Authority will be widened as the Government wishes to extend the scope of the current investigation.
This is according to President Bharrat Jagdeo who addressed the media today at a press conference he hosted at the Office of the President.
The President was asked whether Guyana Revenue Authority (GRA) staffers are included on the team investigating the fraud allegations against members of the body but noted that during meetings he had with the revenue body, that the only person present from the Authority was its Commissioner-General who had brought the fraud suspicion to the President’s attention following revelations by the company, Fidelity Investments. Fidelity Investments had been embroiled previously in a matter with the GRA concerning the alleged smuggling of beer.
“He (the Commissioner-General) wrote me a note. He came across and he saw me. He said I think that this is a big issue. That is when I ordered the investigation, a multi sectoral investigating team and it involved the police and the Ministry of Finance and the Auditor-General,” he explained.
President Jagdeo divulged that he is unaware of whether any member of the GRA has been since included on the investigating team. He said however that he has asked the team to look at companies abroad as Government wishes to extend the scope of the investigation to cover other companies and other transactions by the GRA.
“I have asked that they examine companies overseas who are specialised in investigations of serious financial fraud and forensic audits-to contracting them. I have personally requested information from the US Government. I have gotten a list of some companies that are involved that do this sort of work and we’d be making contact with them,” the President revealed.
He told the media that he has asked the person managing the Millennium Challenge Corporation Threshold programme which has been focused on the GRA to see whether a team could be recruited to work with the police and the Auditor General’s department to investigate all systems at the revenue body.
“Also to look at financial assets of the members of the authority, financial and other assets and then to recommend to me some changes that need to be made, as well as to prepare cases for prosecution against some of their members,” the President firmly said.
He added that he hopes that persons who are dismissed as the investigation progresses will also be prosecuted for their alleged involvement in the scam.
“Simultaneously, I’ve also asked for all the members of the Customs Anti Narcotics Unit (CANU) to be polygraphed, we have someone now from abroad who we brought in and their (CANU staff) future with that body will depend on how they do with the polygraphing,” the Head of State announced.
He noted that the staffers are being subjected to the polygraph tests to ensure that they are a part of a unit that can be relied on.
“The first thing is before we expand the CANU, we have to ensure that the people who are there have integrity. The best way of testing for integrity in such a situation is to polygraph. That’s the best known method at this time. There are going to be changes there based on the polygraph.
President Jagdeo said the polygraph tests will be done by an overseas firm.
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