Following a meeting hosted between the Private Sector Commission (PSC) and its affiliates last week, the body announced in a statement that the combination of poor policies, ill-judged statements and paucity of significant new investments has caused it to lose confidence in the Government. In the statement, concerned members of the business community also pointed to the fact that continued growth and improvement in Guyana cannot continue if investors’ confidence continues to be eroded.
Among the concerns raised were the crippling new taxes for the mining sector and the institution of Value Added Tax on necessities, the parking meters, among other issues. The members of the business community therefore expressed a lack of confidence in the manner the Government is managing the economy. This, they added, is reflected in the flight of capital from Guyana and the lack of significant new investments in the last two years.
The PSC also pointed to the fact that real estate values are dwindling, property for sale inventory is on the rise and wealth is eroding rapidly. The body called for the Government to create an enabling environment and to increase its engagements with the business community. However, the attempt by the PSC to be heard seems to have failed and their concerns have fallen on deaf ears, as the body was quickly dismissed by this Administration, who publicly stated that the PSC does not represent the interest of all business persons within the country. Does this therefore mean that their concerns are irrelevant? The Government has lashed out at the PSC for what it was a “mischievous, politically motivated statement” and even called their statement a thinly veiled attempt to embarrass and discredit the coalition Government.
However, despite the Government’s claims that there are working on improving the investment and business environment in Guyana, and that these efforts have resulted in positive signs of development and progress, members of the business community feel otherwise. Many business owners expressed their dissatisfaction during the parking meter protests held in the City during the past weeks. In a strongly worded statement releases earlier this month, the Georgetown Chamber of Commerce (GCCI) and Industry expressed their concern over the potentially escalating impasse between the Mayor and City Council (M&CC) and citizens over the project’s implementation. This body also urged the Government of Guyana to intervene promptly and help to facilitate a solution that would be fair and acceptable to both the M&CC and the citizens of Georgetown; in their statement, the GCCI also acknowledged that the city’s economy is struggling and that further disruptions (parking meter fiasco) would further exacerbate the problem. Should the GCCI then be deemed “mischievous” for their statements?
Meanwhile, in the most recent onslaught on the business community, the M&CC declared that city businesses have been operating beyond hours prescribed by the law and the practice must be immediately stopped. As such, the Mayor announced at a public meeting on Friday that businesses are forbidden from opening on public holidays, on Sundays and beyond 16:30h (4:30pm) daily; warning that efforts will be made to ensure law and order is restored. The announcement startled many business operators in Georgetown, some of whom contended that any such move will only further cripple the economy.
One business owner argued that the policy is anti-business and does not cater for working-class persons who usually do their shopping after working hours. Although immediately after, the Chief Labour Officer said the Mayor is erroneous in her claims, and that she was in fact referring to the old Act, which indeed stipulated an early closure time for businesses. He pointed to the Shops Consolidation (Amendment) Act 2009 which extends the operating hours for regular shops from 07:30h to 22:00h; restaurants and cook shops for 24 hours per day; and parlour, barber and hairdresser establishments from 06:00h to midnight every day. Whether this latest blunder was an error or not, the already pressured business community is in fear that the Administration and the City Council are anti-business and are in fact in the process of a shakedown.
