PRESS BRIEFING
Wednesday, January 25, 2006

AGENDA

• CONTRACTS

• BUDGET 2006

• FLOOD UPDATE

CONTRACTS

 BUDGET 2006

Minister Kowlessar unveiled the $102.9B 2006 Budget in his presentation to the National Assembly on Monday, January 23, 2006.

The Budget highlighted the consistency with which the Administration has used Annual Budgets as a planning tool.

Thus, 2006 sees a continuation of the emphasis on:

• The Social Sector

• The Production Sector & job creation

• Maintaining Macro economic Stability

• Improving Governance.

The Minister disclosed the details of the Public Sector Investment Programme through which the PPP/C Administration has been able to realise its socio economic objectives. Funding is assured and would be maintained for the delivery of PSIP. The financing of the Education, Health, Housing, Electricity sectors would be sustained at levels of 2005 bringing socio economic security to hundred of thousands of Guyanese.

In the Production Sector and job creation the focus on the Private Sector as the main tool for economic development would see continued emphasis on the rehabilitation and maintenance of the economic infrastructure.

The two recent floods have exemplified the importance of the economic infrastructures through the impact of the GDP in 2005. As a consequence, over 40% of the PSIP in 2006 would be devoted to the economic infrastructure, roads, bridges, drainage and irrigation and transportation. The Berbice Bridge and the Corentyne Highways are examples.

Significantly, much attention will be paid to the Community and more city roads.

With regards to energy, the introduction of an additional 35 mega of power into the national grid by GPL is anticipated.

The Minister affirmed that the Government’s attention to macro economic stability will continue. The stable exchange rate, controlled inflation role and adequacy of international reserves have all contributed to the economic progress being made and an environment, in which the market economy can function efficiently.

Importantly, in the Social Sector, the government has committed to the increase in the Threshold thereby removing thousands of taxpayers from the tax rolls.

The Threshold increase, the Minister insists would not cause a single PAYE tax payer in 2006 to pay more taxes than before and importantly would see the benefit being applied to the lower income earners.

Old Age Pension have also been significantly increased as well as Public Assistance.

The Budget 2006 reflects Government’s continued commitment to Good Governance.

The Reform of the State activities continues targeting:

(1) Parliament and other fiduciary oversight organs.

(2) The Financial Sector particularly the management of Public Expenditure and more Accountability of the operations of non-state financial institutions, such as Banks, Trusts, Insurance Companies and the Securities Market.

In essence, the 2006 Budget continues the PPP/C earlier commitments in its manifesto of 2001.

The achievements so far and the increasingly conductive environment for its continuation have so far confirmed the accurateness of the approach and justify its continuation.

FLOOD UPDATE

The CDC continues to oversee the reporting of developments in the flood affected Regions.

The National Disaster Coordinator and the CDC continue to host information briefings with the NGOs, political parties and the media.

Joint Service involvement has become more pronounced with GDF deployment at the 7 shelters established and on patrolling duties on the Crown Dam.

In Region 1 - New reports on flood in the Mabaruma settlement and sub-region are currently being assessed.

In Region 2 - The Situation has stabilised but with rivers and lakes with high water levels.

In Region 3 - The Conservancy is functioning well and the level being maintained by discharging into the Demerara and Essequibo Rivers.

In Region 4 - The flooding in the Villages east of Enmore to Greenfield was exacerbated by vandalism of drainage irrigation and flood control structures. Interventions are being intensified and the situation is slowly returning to baseline.

In Region 5 - Extensive flooding continues in the Creek areas. In West Berbice, interventions have led to falling water levels in the residential areas. The situation there is depressing.

In Region 6 - Some flooding was still evident on the front lands as intervention continues with the Black Bush Polder areas.

The impact overall is significant with households, traditional agricultural, cash crops and cattle farmers have suffered the most.

INTERVENTIONS:

The intervention includes more shelters being established seven (7) now with average population of 600.

2 in Creek Mahaicony

3 in West Coast Berbice

1 in Mahaica

Medical teams have been mobilised and fully assigned to Pomeroon, Canal Polder, MMA and BBP areas. Water distribution is organised to provide potable water, disinfectant kits and black tank storage.

Criticisms continue to be aired about:

1. His Excellency and Ministerial intense involvement in flood response activities.

2. Accountability about use of funds and its distribution.

The PPP/C Administration is adamant, the role of the PPP/C political directorate will always be peoples’ based at events such as natural disasters. To reject this position is unreasonable and unacceptable.

As far as accountability goes the records of the PPP/C Administration to audit use of Public Funds is well known. One can only recall that protest were lodged in 2005 when the State Audit was involved from the most initial of procurement transaction during the floods.

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