Budget Speech - Mr Gopaul—2014

Hits: 3208 | Published Date: 01 Apr, 2014

| Speech delivered at: 73rd Sitting - Tenth Parliament

| Speech Delivered by : Mr Dr. Nanda K. Gopaul, MP

Minister of Labour [Dr. Gopaul]: It is irrefutable that Budget 2014 is one which will create a better Guyana in the interest of all Guyanese. The Hon. Minister of Finance, Dr. Ashni Singh, and his staff deserve our commendation and praise for a job well done.
The stakeholders have had consultation on the Budget prior to its presentation and many of the stakeholders, including those of labour and the private sector, have, since its presentation, applauded the Government and the Minister of Finance on the 2014 Budget.
It is unfortunate that the Opposition parties did not avail themselves to the invitations of the Minister of Finance to engage in the discussion on the Budget prior to its presentation. This, indeed, is a lost opportunity but when we listen to the Opposition, all we hear are negative views with no real or concrete proposal or sound advice to enhance the Budget or the economy. I, therefore, speak today in support of this Budget and urge that it be given unanimous acceptance in this House.
Before I go into details of the Budget discussion, I mainly wish to highlight some of the activities successfully undertaken by my Ministry during the year 2013.
The Labour Department
The Ministry of Labour, Occupational Safety and Health Department, during the period under review made some significant achievements in the following areas:
1. We ratified the International Labour Organization (ILO) Convention 189 on domestic workers, thus making Guyana the first country in the Caribbean to ratify the Domestic Workers Convention in August 2013.
2. We prosecuted 19 cases which were reported for failing to pay the minimum wage and charges were filed against one of the largest security firms for violating the national minimum wage and that is the Strategic Action Security Service.
3. On the national minimum wage, we issued the work order which became effective, as the Minister indicated in his Budget, 1st July, 2013. The new order stipulates a 40-hour work week at five days per week, eight hours daily. The new order paved the way for new categories of workers to benefit under the 40-hour work week scheme. As the Minister pointed out in his Budget speech over 31,000 workers have benefited from this arrangement and are now entitled to leave with pay benefits.
I heard Hon. Member Mrs. Volda Lawrence speak on violation of workers’ rights but these two measures, the signing of the Convention 189 as well as the introduction of the Minimum Wage Order, offered real protection to workers whom she mentioned have been exploited and the Ministry of Labour will pursue any employer that violates the rights of workers. We will not turn a blind eye to any infraction of the labour laws of this country. That is the reason why during the year, in introducing these measures, we have appointed six new labour officers to complement our lot and we are targeting to employ additional officers and target a senior personnel, very experienced in the field of industrial relations, to work as a consultant in the Ministry, shortly.
In the area of occupational health and safety, we are working with the Ministry of Education on the process of streamlining occupational safety and health in the school curriculum and that process has begun. We also translated key labour laws into Chinese, given the number of Chinese employers and employees operating in Guyana and, earlier, in 2012, we translated those same laws into Portuguese. We also had interaction with the Ministry of Education and interventions on the issue of child labour were conducted in schools across Guyana.
The Human Immunodeficiency Virus (HIV) and Acquired Immune Deficiency Syndrome (AIDS) regulations have been gazetted and tabled in this House with mining, manufacturing, noise and chemical regulations completed, and we hope to have them vetted by the Attorney General’s Chambers before they go through the same process.
In the area of the Board of Industrial Training, the total number of persons trained in 2013 was 2,304, with the Apprenticeship Programme having 95 youths who commenced training, 68 of whom were at the GuySuCo Training Centre at Port Mourant, 10 at Barama, and GPL had 17, and this lot represented the largest block of apprentices under the BIT scheme for a number of years.
The National Training Project for Youth Empowerment (NTPYE) completed training for 1,537 persons, certified in the area of engineering, electrical work, construction, health services, information technology and clerical work and home economics.
The Single Parent Training Programme completed 447 persons at the end of last year being certified in garment manufacturing, construction, cosmetology, catering and some as drivers and sales persons, and this would answer the issue raised by the Hon. Member, Mrs. Volda Lawrence, whether we are sticking to one programme. In the past, it was merely cosmetology and maybe garment. We have moved into construction and the other areas.
We also have had extended programmes where 113 persons were certified at the forestry training school and 112 at the evening class programme conducted by GuySuCo, mostly in the area of information technology. Those at the Forestry Training School have been conducting in the areas of forestry, harvesting and other activities.
Because we have attached grave importance to the Board of Industrial Training Scheme, a number of companies have applied and we have examined their applications with what they are doing and we certified, over this period, new companies, in addition to GuySuCo, GPL and the Guyana National Insurance Company (GNIC), which existed before. We have added to those Barama Company Limited. The Republic Bank has been approved and we are in consultation with them on their training programme for school leavers in the banking industry and we are working with the Forestry Commission, which we will certify as masters under that programme.
During the year, we have also acquired two new Bobcat machines, heavy duty equipment with implements, to enhance our training programme for heavy duty equipment operators since this skill is in high demand with an equally high response rate, so added to the two which we already have, we now have four which we will carry across the country to increase or training in this programme. Again, this answer would be in response to what Mrs. Volda Lawrence said just now that we should not stick to merely one programme; we are moving ahead.
In addition to that, we have been in consultation with the Minister of Health and the Ministry of Health and we have seen the need to train more biomedical trainees, bring them into the field because that has become a scarce area of endeavour and we want to be self sufficient. Hither to, those aspects of the work were done by Cubans and we are hoping to commence training of about 15 persons in that area very shortly.
We have also, over the year, continued the School Retention ILO Tackle project on the Highway where we targeted 360 children, representing the entire population of Dora Secondary, Kurukuru Primary and Nursery on the Linden/Soesdyke Highway. That project, which came to an end at the end of last year, saw an investment of US$222,878 financed mainly by the ILO with Guyana’s contribution amounting to $365,000. Prior to that project, records from the Dora Secondary, for example, showed a 65% average attendance rate; Kurukuru Primary with a 77% attendance rate, with 56% at the nursery level. Consultation with parents and teachers revealed that the primary reasons why many children were unable to attend school regularly were due to financial constraints. Our project intervention included the following:
- Teachers and school administrators training programme;
- Numeracy and literacy programme;
- Nutrition support and transportation programme;
- Parenting workshop; and
- Psychological support.
The Programme, which was launched in September, 2011, saw within two weeks of its implementation that attendance had moved from 64% to 94%. The other results included punctual and regular teachers and students attendance because they were provided with transportation. The teachers’ attrition rate had reduced considerably. The school, for the first time, presented 18 children to write the National Grade 6 Examination in 2012, the previous highest number never exceeded seven. The school entered into the National Poetry Competition and copped a prize at that competition. One student at Dora Secondary School recorded eight Caribbean Secondary Examination Certificate (CSEC) subject passes, the best performance the school had in a decade.
The ILO project, as I indicated, concluded and I am advised, because my Ministry was working in conjunction with the Ministry of Education, that this project will continue by the Ministry of Education.
The US Department of Labour, ILO HIV/AIDS Project also concluded recently. This project started in October, 2003, and concluded on February, 2014. It was founded by the United States Department of Labor between the years 2003 to 2006 to the tune of US$397,000 and between the period 2006 to 2012, President's Emergency Plan For AIDS Relief (PEPFAR) funded the programme to the tune of nearly US$1 million. The Government of Guyana’s contribution was merely in the form of releasing workers and participants within the Government sector to cooperate and to work with the Project. The Project had a national coordinator and was effectively and independently supervised by the tripartite body consisting of the Ministry of Labour, the Guyana Trade Union Congress and Federation of Independent Trade Unions of Guyana (FITUG), as well as the KG representatives.
The programme saw many benefits. At the top of the list was the working of the HIV/AIDS regulation which was drafted and which we had gazetted and tabled in the House recently, as I mentioned earlier. They had the National HIV/AIDS policy developed. They had partnerships formed with 33 companies in various sectors and they had about 30,000 employees trained during that period to raise the education and awareness about HIV/AIDS at the workplace, particularly in the security, mining, manufacturing, media, banking and agricultural companies. They have also mounted successive education and awareness campaigns throughout this country and hosted numerous training for employees and employers in counselling and educating persons and for the focal points at the work places. The tripartite grouping, with the end of that programme, will continue its work with the national tripartite body to oversee and monitor HIV/AIDS regulations and other issues at the work places.
The Central Recruitment and Manpower Agency, during the period 2013, registered a number of 3,099 applicants and, as a result of those registrations, was able to place 2,596 of them at work places in the areas of supervisory work, clerical typists, customer service representatives, receptionists and, in craft related areas, welders, drivers, fitter/machinists, mechanics, machine operators, skilled and semi-skilled workers, factory workers, cleaners/sales clerks and labourers as well as security officers were also added to that list. The year 2014 will see the Programme being further decentralised with the recruitment and placement officers appointed and placed in every Region of this country and having an integrated network system. Staff members have been trained and we are in the process of installing a new software system and equipment to modernise the service of the Central Recruitment and Manpower Agency so that persons can use the service from any Region as long as they have internet service.
With respect to the cooperative department, in the year 2013, there were 80 expressions of interest from groups desiring to become and to form friendly societies, rules of which were submitted to the department and vetted and meetings were held with those steering committees of each of the groups with consideration and approval given to most of them. They have also, over the period, conducted investigations into the friendly societies for at least three of those. They have audited 50 and released 47 audit reports to these societies and they have had a total of new registrants of about 30, while they conducted field visits of about nine of these agencies based on reports received.
With respect to the co-operative societies, four new ones have been registered; two were cancelled in 2013; inquiry and investigations were held against three of the societies... Amendment for rules of those societies, we had one investigation done and the amendment took place, with 42 audits taking place. All of the audit reports have been released to these bodies and we have had, based on reports and requests by the co-operative societies, 61 field audits concluded.
Yesterday, the Hon. Member Ms. Kissoon made reference to co-operative societies to quote me and to highlight some of the importance and to point out that they must be concerned with the advertisement that some 212 co-ops have been slated for cancellation. We have already been in receipt of letter of concern and expression of willingness to work with the Ministry from the Leader of the Opposition’s office under the signature of Mr. Joseph Harmon. I have had a meeting with Dr. Roopnarine on the concern expressed by one society and I have had discussion with the Hon. Member, Mr. Clement Rohee, in his capacity as General Secretary of the PPP/C over concerns expressed by another set of co-operatives and to indicate that in all of these areas, we will be examining the list to ensure that every society that wishes to continue and show that willingness to continue be given that opportunity. But we want to ensure that we start and that all the issues pertaining to good governance would be observed. Many of the societies, however, Mr. Speaker, will not have an impact on co-operatives since many are defunct for over a decade and we are merely cleaning the records of these. As I indicated, not a single society or member’s assets will be put in jeopardy with this exercise. Our willingness to continue to work with every single organisation and body that is willing to come forward and to encourage compliance with the law and good governance as well as to assist with good management practices, we will work with.
The 2014 allocation under the Budget would see $159 million expended or being voted in the Budget for labour administration which will cover employment costs estimated at about $97 million with other costs to the tune of $286 million. We also have budgeted under this programme $46.8 million for our capital programme. The Budget allocation for 2014 with respect to these agencies, therefore, will see the continuation of these programmes with improved results and participation in 2014.
I now turn to some of the salient points raised in the budget and which had been raised by Members during the course of the debate. I want to deal, first of all, with respect to the issue of wages and workers’ interest. The Hon. Minister of Finance indicated that Budget 2014 is expected to see the economy growing by 5.6% and with the world economy, when one compares that, we will see a growth of about 3.7%. What is significant is that for the year 2013, we have had the highest growth rate over the period, showing 5.2% increase with inflation pegged at about 0.9%, the lowest inflation rate in almost a decade. The world’s performance averaged a mere 3%. When one takes 5.2% as the economic growth, measure up with the rate of inflation and one examines what was paid to public workers as well as what was done for workers in other sectors, one would see that 2013 has been one of the most successful years, in decades, for the workers of this country. Real wages have been protected in a real way, unlike what has happened in the past. I wanted to prevent going into it but Hon. Member Mrs. Volda Lawrence, in her presentation, made mention to ‘not a cent more’ a statement alluded to earlier in Dr. Jagan’s life as a politician and as administrator of this country.
The issue has been one which has been raised several times but must be given clarity. Dr. Jagan did not in a high-handed way say ‘not a cent more’. He was engaged in negotiations with the Unions, made offers and, in fact, paid offers and indicated that he did not have more money after he would have made... He was involved in the true process of collective bargaining, unlike what had happened in the past. In the mid-1980s, we had the infamous ‘Hoyte Circular’ which proscribed collective bargaining. No agency, no one, was allowed to engage in any form of collective bargaining and settling any agreement with anyone; that is what we had in the 1980s. In 1979, we had the withdrawal of increments and refusal to pay workers their benefits, while for two years in the 1980s, a wage freeze was introduced. That must be measured with what has happened between 1992 and 2013.
In addition to that, the situation in the country in the 1980s got so miserable and so desperate for workers that analysis done by high-ranking economists, including Professor Thomas, showed that real wages in the 1980s declined by 45% below the 1942 level. In addition to that, when we compared in the 1980s and put the diet of the slaves under slavery and cost it in the 1980s, we found that the slaves were enjoying a better cost than the workers in this country. Those studies were done. When one examines the performance of the economy over the years under the PPP/C Administration and when one examines the wages paid, one will find that the PPP/C Administration has improved real wages in a real way.
In addition to that, throughout the period, even when there was poor performance in many sectors, we see that wages were paid, some level of wages. That is not all, Mr. Speaker. In addition to that, when one looks around the country and one witnesses development, even the blind people would say that they have never seen development of this magnitude. Look around the countryside, Mr. Speaker, and see the numerous homes. The workers in this country have been given the opportunity to own their own homes. In the past, the workers in this country were limited to housing opportunities and they were limited to banking facilities and loans.
Interest loans were in the vicinity of 20% and 21%. Under the PPP/C Administration, that dropped to 3.95% for low income. Workers who are low income earners can own their own homes as a result of that, with repayment being less than what it takes for one to rent a bottom house these days so every worker is being encouraged. More and more public servants are given opportunities under this scheme to own their own homes; Police officers, public servants, are all given within this 30,000.
When one looks at the economy, one will see progress in the banking sector with over a decade of progress in the banking sector, profits increasing, assets base increasing, with every passing year. Look at every one of the financial reports. Look at large companies, Mr. Speaker, and you will find that every single large company and even those mushrooming are becoming very large companies, establishing branches outside of Georgetown. Georgetown is no longer the hub for business activities. Almost in every village in every Region, there are many business activities and employment creation in these areas.
Mr. Speaker: Your time is up, Hon. Member. You will need an extension of 15 minutes.
Prime Minister and Minister of Parliamentary Affairs [Mr. Hinds]: Mr. Speaker, I move that the Hon. Members be given 15 minutes to continue his presentation.
Question put, and agreed to.
Dr. Gopaul: I now turn to the issue of the sugar industry, something that has been near, dear and close to my heart. I know a number of persons, a number of our brothers and comrades, brothers and sisters, Honourable Members in this House, have expressed genuine concerns, but some have expressed concerns to the extent that they want to damage the industry; they believe it is no more. But sugar has over 300 years of history. As a young man, I grew up reading the story of British Guiana which is about the sugar industry and not anything else. The story and history of Guyana is about the history of the sugar industry. Over the colonial period the sugar industry had huge sums of money extracted as a result of the sweat and tears of workers who moved away to Great Britain. It is said that huge sums of money expended during that period by Great Britain were extracted from colonial countries which were sugar based. Following nationalisation sugar continued. Many of the estates were manned by local managers; workers continued to work and this country benefited tremendously in terms of development from the sugar industry.
The profits from the sugar industry were ploughed into many national activities. One recalls clearly the 1970s. When sugar prices soured in 1974, in particular from a sugar levy that was introduced in 1974, millions of dollars were extracted and used for national development purposes. In fact, it was misused. The levy was used for all sorts of experiments. They went into other crops division. They went into spending at the National Service. We knew how much money from the sugar industry was expended in National Service especially at Kimbia; irrefutable record. [Mr. Greenidge: Where is the record?] The records are there if you examine it. What the sugar industry has given to this country no one can ever repay, no one can ever compensate that industry for what they have extracted and what it has done. Today the industry, like many times in its history, has bad patches. The sugar industry, if you look at the records you will see declining periods as well as periods of growth. There are those who continue to do commentary like a certain former Member of Parliament. I have seen several pieces of commentary from one Mr. Vieira which have been used only to embarrass the Opposition on the activity of the sugar industry and their proposals.
But there is a saying, the more you write is the more you expose your ignorance. And Mr. Vieira coming out with some of the writings on the industry did not have the belly to continue in sugar when faced with hardship; he closed down his estate, put workers on the breadline and never continued. Today he wants to lecture this Government on the sugar industry. Mr. Vieira is in no position to lecture the industry in any way as to improvement. He has a failed record; he is a failure in terms of the sugar industry. Others who have tried to... [Interruption] Guyana Agriculture Workers Union (GAWU) and my relationship do you see where we are and do you see where you are? You will remain there. The sugar industry has played an important part and was exploited. We hope that in all the ranting our colleagues will see, the Hon. Members, the wisdom in making this allocation so we can bring this industry back. It is important to note that the Economic Services Committee in either 2011 or 2012 visited the Skeldon Sugar Factory headed by Mr. Winston Murray and with Mr. Vieira as part of that grouping; I was there. During that visit they were satisfied as to the management team and they expressed that publicly; they were satisfied with what was being done to correct measures in the sugar industry.
That was made public in their meeting with the management. We continued that development process and those corrective mechanisms. And I want to say without any fear of contradiction or I want to say like the Minister of Agriculture will tell you, that sugar and the Skeldon Factory will continue and make progress before the end of the year. We will fix it. The problem of Skeldon, if I may say, if people want to be educated they will know, it has nothing to do with the Government of Guyana. The problem of Skeldon had to do with a management team brought in by the People’s National Congress in 1990. That management team was responsible for the supervision of the factory and created enormous problems. Mr. Speaker, because this matter is in court I will not delve more but allude them to a writ filed by GuySuCo and signed by me, and for which I gave evidence in court as to the numerous failings of the GuySuCo management and for which under the leadership of Minister Robert Persaud we fired them. We fired them and did not pay them. Booker Tate can be seen as a major factor in the supervisory personnel in the Skeldon factory’s operation and not the Chinese. They were merely performing work based on the engineers. I will urge my colleagues if they believe in the interest of the sugar workers, and the learned and Hon. Members from Alliance For Change (AFC), who came from the bowels of the People’s Progressive Party (PPP) and the father of the Nation, Dr. Cheddi Jagan, and saw the struggles and admire and continue to mention his name, will not cause him to turn in his grave if they were to vote against the sugar industry and the workers.
We have a glorious opportunity; we do not want to delve into the past. The Hon. Members of this House I am sure, and have demonstrated in no uncertain way, they have the interest of Guyana at heart, all of us, but we have different ways of thinking and different methods of solving issues. Unfortunately, over the past three years while an opportunity was presented to the combined Opposition by the voters, who placed them in a majority position in this Parliament, one would have thought that using that opportunity they will show this Nation that they are an Opposition, a government in waiting, that they will do things in an objective way; that they will promote national development not sabotage the economy; that they will promote national development; they will enhance the Government programmes and work side by side with the Government. Instead what do we find? For two and one half years, and I am appealing to my brothers and sisters, the Hon. ladies and gentlemen of this House to work together so we can build this country. We can no longer be decisive; as politicians we have to work together and mere lip service, whether you call it a political solution or whether you call it some form of compromise we have to show that we really mean it, that we are sincere. You cannot want to extract a true coercive mechanism, you cannot want to tell us you want to work together and sabotage national development. So let us be realistic and put the Nation’s interest first; let us work together. [Interruption] Do not make any new demands.
The President, I am advised, and I heard from him and the Hon. Minister of Finance – which was stated publicly - gave a commitment to the Leader of the Opposition and other members in his discourse with him on the Anti-Money Laundering Bill. He said to him I know you have some demands, we want the bill to be passed; if some of those demands are acceptable let us pass this bill unconditionally and I will give my attention to those issues which you have concerns with and we will work thereafter. That was a genuine offer. I believe this Nation can ill afford not to pass the Anti-Money Laundering Bill. The Nation’s future, every Guyanese’s future is at stake, every Guyanese, every worker. So I appeal, if you want to see good will show good will; political grandstanding from either side will not work. There is need for us to rise above the level. Let us work together. I gave the assurance to my colleagues, and all my colleagues on this side that we will work feverishly with colleagues on the other side if good will is shown from today that we will work to build a better Guyana and work together in the interest of this country. Our country can no longer sail in an area of doubt, and area where we fight each other daily, where every position is seen nearly from one party’s point of view. We have to listen to each other; we have to negotiate with an open mind. We have to say sometimes it is not always what we present but what is right for Guyana.
I am reminded of Shakespeare and Julius Caesar when he said, there is a tide in the affairs of men which taken at the flood leads on to fortune, omitted all the voyage of their life, is bound in shallows and miseries. On such a full sea are we now afloat, and we must take the current when it serves, or lose our ventures.
The People’s Progressive Party/Civic (PPP/C) Administration has a course. We call on our colleagues to work with us. No one should dominate either side. Dr. Cheddi Jagan struggled since the 1970s, talked about critical support; Dr. Cheddi Jagan gave support for the nationalisation, unconditionally, of the bauxite industry when it was needed, and promises which were given to him were never fulfilled. Who from the PPP was named a member of the board which was promised? This is history. Dr. Cheddi gave critical support to the People’s National Congress on many issues.
Put that in the pages of history books; we want to turn a new. We want to work for a better Guyana; we are committed to work towards a better Guyana; we want good will to be shown on all sides. On this note I call on the Hon. men and women of that side to let us work together, let us eschew confrontation. Another election will not solve the problems of this country. It will solve the issue of majority over that side and minority over here, because as you cut the budget you will cut your votes and you will cut your seats over there. So comrades I want us to work together for the betterment of this country, for our children. [Applause]