…or punishing Opposition suPPPorters?
The move by the PNC-led coalition Government to raise the rental and drainage costs on the MMA leases to rice farmers, is more than rubbing salt into the wound inflicted on them when nothing was done to regain the lucrative Venezuelan rice and paddy markets. The loss of that 200,000 plus tonnage that was sold at almost twice the world market price which now prevails, has ensured the cost of production is higher than the selling price our farmers now receive.
So, the question is why would the Government choose NOW to add to the farmers cost of production by upping the rental costs of land by 600 per cent??!! Sure there’s a case for allowing the costs of rice-land rentals to rise to make up for inflation… but there’s an even more solid case against the increase when the “profits” from the rice produced is now below zero! Using its own logic, to make up for this “deflation” – even without sitting on its hands and ensuring the loss of the Venezuelan markets – the Government should lower the rentals!
But like most of its moves, the action by the PNC-led Government isn’t based on economic rationality or even bureaucratic efficiency – it’s based on political vindictiveness. Rice farmers in general – like sugar workers – are supporters of the PPP and they’re seen as fair game to squeeze for its spending programme for the rest of the country. For years, the PNC had been complaining about these “low rentals” as it counted the “profits” the farmers were supposed to be making. Expect the tax man to turn the screw even further on these farmers to get blood from stone.
That farmers were bringing in foreign exchange that had shot way past sugar, didn’t cut any ice with the PNC Government. Ditto for the farmers ensuring the price of this food-staple of all Guyanese was the lowest in the region. Since the farmers insisted on supporting the PPP, they had to be taught a condign lesson: the wages of being a PPP supporter is PRESSURE! The move harks back to the first PNC regime when they arbitrarily cancelled the lucrative rice contract with Cuba – and then insisted all rice be sold to their “Marketing Board”.
They paid the farmers a pittance and sold the rice for massive profits on the world market. In effect, they imposed an implicit 118 per cent tax of rice farmers. And of course, brought the industry to its knees.
But the PNC’s position then – as today – is there are many ways to skin a PPP supporter.
So what if the entire country suffers? It’s only (PNC) politics!
…on expected oil earnings
Sherwood Lowe’s usually a very pragmatic fella with his interventions in the Press. One of the technocrats brought into the PNC by Desmond Hoyte, he never succumbed to the hyperbolic excess of the dyed-in-the-wool political types. Until now. Noting Trotman’s suggestion that ExxonMobil prepay for future revenues, sank like the Titanic, he suggested we take out loans with our future revenues as collateral!!
What was mind boggling wasn’t just ignoring why Exxon balked (who can predict “future revenues in such a volatile oil market?), but Lowe actually cited the disastrous experience of Ghana and Uganda with oil-collateralised borrowing!! The problem there was folks like Lowe raised such high transformational expectations from oil-revenues, the government was forced to deliver. But couldn’t repay for a host of contingent reasons they had no control over – such as lower than projected production and several costly technical problems.
Lowe says we should treat those disasters as “cautions”, but proceed full steam ahead with the borrowing!
Maybe Lowe has a lucky charm?
…for Banks
Prezzie was all agog at Republic Bank opening a new branch on the East Coast. Our history with the privatised banks after 1992, demonstrates that Branches in the country just suctions out the cash – but never intermediate it back to those communities!
