Georgetown, Guyana.
March 24, 2022
For immediate release to all media houses.
PRESS STATEMENTS FROM AFC PRESS CONFERENCE – 3/24/2022
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Guyana has always been challenged by the relatively high costs it must pay for its imports and the low prices it must accept for its exports. Prior to production of oil and gas consequent upon the signing of the Petroleum Production Agreement of 2016, the severest challenge on the demand side was related to the purchase of oil. And on the supply side, sugar and rice along with so many of our agricultural exports have prices approaching floor level with markets either not being dependable and a number of them disappearing.
This unfavourable balance of trade has changed dramatically with the discovery and production of oil. It necessarily means that our food production, especially our foremost staple, rice, must be supported in these times of difficulties which has seen rice producers from Black Bush Polder to Essequibo protesting.
Consequent upon the last two years where the international developments has exacerbated problems, the need is dire for support to be given to rice farmers so that they do not abandon their farms. As they have cried out during the protests, costs have risen sharply – fertilizers, weedicides, pesticides and even labour.
The AFC therefore calls for interventions to be made which will be distributed equally across the board.
Firstly, the US$8, (recently reduced by only US$2), per ton of rice exported should be waived to zero at this juncture.
Secondly, the millions of dollars collected by the GRDB consequent upon this US$8 per ton should be used to finance a subsidy on fertilizers to bring the prices down. The Government should also import each fertilizer and sell directly to farmers thereby cutting the extra costs from middlemen.
Thirdly, if the subsidy cannot be financed from the GRDB’s account, then it must come from the oil revenues since there has been a windfall as a result of high oil prices over and above the $70 per barrel projected for.
Fourthly, an immediate plan to ensure better water management in our rice producing areas. Massive indiscipline as to time of planting has seen damaged dams having to be used for transportation of paddy out to fields.
Fifthly, the scaling up of the technical personnel at NAREI to have our agronomists there improve the varieties to produce 60 to 70 bags per acre and ensure these high-yielding seed-paddy be distributed equally.
Sixthly, urgently commence consideration of setting up a urea/fertiliser plant from the natural gas from Exxon for somewhere in Berbice, be it in Region 5 or 6.
STATEMENT – COST OF LIVING – Juretha Fernandes M.P.
Even as ordinary Guyanese continue to cry out for aid from the government, no policy measure has been implemented that will directly impact the blow from the rising cost of living. And the PPP administration continues to announce measures that falls under a trickle-down economics framework and does not benefit the ordinary Guyanese that frequent the markers and pump stations.
Guyana’s cost of living has seen a sharp increase and now threatens the ability of the poorest and most vulnerable Guyanese families to provide their most basic needs. Inflation in the most basic food staples such as flour and vegetables pose a direct threat to the food security of our people.
As our most vulnerable struggle under the weight of this inflation, the state gains significant increases in revenues from high oil prices. The Alliance For Change sees no acceptable excuse for the state to not use its new found wealth to provide the economic safety net that Guyanese need in this difficult economic environment.
Over the past 2 years we have seen tax cuts that never reached the pockets of consumers. Though subsidies and tax cuts both carry the same cost to the state, it has now been proven that tax cuts do not bring price cuts. The AFC has long warned the PPP of the upward stickiness of prices.
The current PPP policy of begging businesses to pass along tax cuts to consumers has proved to be a total failure, and the most vulnerable households in Guyana continue to suffer. There is no guarantee that the recently announced cut to the 10% fuel tax will be transferred to the consumer, but instead the guarantee is that it will increase the profit margin of gas station owners. Such policy measures continue to only benefit a few at the top of the private sector while medium and small scale businesses continue to suffer along with thousands of ordinary Guyanese families.
With that fact in mind we call on the PPP administration to implement policy measures that will not depend on the failed concept of trickle-down economics and policies that will directly impact the cost of living for poor and vulnerable people.
Statement – Full Coverage Insurance – David Patterson M.P.
On February 17, a Motion was submitted to the Parliament calling for the Government of Guyana to ensure that the country is fully protected against the real possibility of an oil spill offshore.
The Motion, calling for full coverage insurance is the fourth in a series of Oil and Gas Motions submitted to the Parliament, (Flaring, Shore Base locations, Review of the Gas to Shore project and Full Coverage Insurance), all four were severely diminished by the Speaker, one has not been debated (Flaring), another took over 80 days to be approved (Gas to Shore) – and on that occasion, when questioned on the removal of clauses, the Clerk, on behalf of the Speaker responded stating that the Speaker was under no obligations to explain his actions.
The Speaker has disallowed 13 of the 20 resolve clauses in the recent Full Coverage Insurance motion, and further amended 3 other clauses, based on his ruling that clauses must be based on facts, however with a simple internet search, most of the information contained in these Clauses can be found.
For example, the Speaker has disallowed clauses which simply state issues such as:-
· “Guyana’s Oil spill response plan is grossly inadequate in the event of a spill” – this has already been publicly stated by various sectors.
· “Worldwide offshore oil production shows a high likelihood of an oil spill occurring, and such likelihood of a spill increases exponentially with the rapid increase in offshore production activities”,
· All clauses relating to the recent oil spill in Peru have been removed,
· The Speaker has removed words such as “economic bankruptcy” in relation to the costs for clean-up,
· “There has been an overwhelming public outcry from the likely affected populations of all walks of life in Guyana, the Caribbean region, and other international stakeholder for a guarantee of full liability coverage of any oil spill offshore of Guyana”.
Since the PPP assumed office – several good governance mechanisms that were put in place by the Coalition administration for the oil and gas industry has been removed, one such mechanism was our insistence that Exxon and all other operators provide the then Opposition, with full, frank, and regular briefings on their operations. Currently the Opposition, which represents almost half of the population has been excluded from any engagement with Exxon and other operators on the instructions of the Government.
Our motions on the oil and gas sector, should not be seen as anti-industry or give the mistaken impression that the Opposition is not supportive of our petroleum sector, but as the last resort to ensure that our concerns are raised and addressed, hence it completely diminishes our efforts when the Speaker unilaterally removes 80% of the clauses in a Motion.
END.
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