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THE PARLIAMENTARY DEBATES OFFICIAL REPORT [VOLUME I] PROCEEDINGS AND DEBATES 0� THE FERST SESSION CF THE FIRST PARLIAMENT OF GUYANA UNDER .THE CONSTITUTION OF GUY AN.A.

35th Si tt,ing londay, 23rd January.

1967 NATIONAL ASSEMBLY Prayt!r8 [M.r.

Speaker in tAt!
Chau] Preatnt Hl8 Honour the Speaker, Mr. A. P. Alleyne Ministers 1'he Honourable Dr. the Honourable The lronou-rable The Honourable N. J. Bissemb�, P. A. Reid, P. S. d' Agular, L. F. S. Burnham, Q.C., - Prime Minister - Minister of Trade - Minister of Fin.ana - lliniater of Inf� (Luder The Honourable The Honourable The Honourable The Honourable L. John, The Honourable R. E. Cheeks, E. F. Correia, Mrs. W. Gaskin, R. J. Jordm of the Hovn) - llin.iatu of Local eo-aai - 1/inister o f c--icalitlu - lliniste - Minister - 1/in.uter of Agricvltvn of HOtJ1e Affau• r of Edvcatioa r«tl N att+ral fluevrce• The Hoooura.ble Honourable M. Kasim, W. 0.
R. Kea.dall, C.B.E., he Honourable C. A. Merrtmim, Parlia,1mtary Secrt!tarie:.

Mr. D. B. deGroot, Mr. G. Bowman, Mr. 0.

E. Cla1i<e, Mr. P. Duncan, Mr. J. G. Joaqoia, O.B.E., J.P., Mr. t;.

V. Too-{:hang, - 1/iniat er of WotliiJ -.d Hy""-lic• -llini.ater of HeaW& ad H--.y - lliniaCer of L dour tad Social Security - Parli-fflla,y Stcret-,.

Priae Jliaimr'• Office - Ptmiamenta,y Secrdary, lliaubf of Labour and S«:ial .Se�,,, - Parii-emcry Secrdory.__ll-,,,, ) .
of Loe� &flflttnaetl - Pa.rliamen.tary fecrdar,.

11· of Worka and llyd,-Ji - Pa,li-�nta,y $ecrrttt...-y, of finaf'c_e -; Other Members Mr. W. A. Blair Mr. J. Budhoo 'Mr.

W. G.

Carriag'!

!,l Mr. R. G. 8.

Field-Ridley Mr. T. A. Sancho M5- M. F. Slng.b Mr. J. JI.

Thomas Mr. R. C. Tello, Deputy Spaker Rev.

A.

B. Trolman Mr. II.

M. S. Wharton, J.P. f,/er,abers of tAe Oppoaitum Dr. C. B. Jagan, Leader of the Opposition Mr. A.
Chase Mr. Ram Karran Mr. H. J. M. Hubbard Dr. Charles Jacob, Jr., Dr. F. H. W. Rameahoye Mr. M. Hamid, J.P. Mr. J. R. S. Luck Mr. D. C; J agan Mr. H. Lall Mr. M. �han, J.P, Mr. Y.

Ally Mr. R. D. Persad Mr. S. M. Saffee "/'.

Clerk or the National Deputy Clerk of the National Assembly (Acting) Mr. M. B. Henry Assembly - Mr. F. A. Narain Absent The Honourable S. S. Ramphal, C.M.G., Q.C., Attorney-General and Minister of State Mr. D. Mahraj Mr. H. Prashad -on leave Mr. ff.
H. Benn - on leav gb · Mr. R. Chandisin Mr. C. v. Nunes ·Mr.

E. u;�-soJJ:1 Mr. ,ii,.

Lm<fl · - on' Mr. M. lohPoonai Dr. s. A':°'Ramjohn -� .

Mr,e W·.

S.t4 tt)!by ..... ,._ Mr. �an .824 Approval of Estimat�s 23RD JANUARY.

1967 Bud�et DeQai,e · 282S Expenditure ANNOUNCEMENT BY THE SPEAKER Leave to Member Mr. Speaker: Leave d. absence nas been granted to Mr. Harl Prashad for three weeks with effect from to­ day's sitting.
PUBLIC BUSINESS Standing Ord.er 62 (2) The Leader d. the House (Mr. Bissember): Before we s� it is my interpretation of.

Standing Order No.

62 (2) that the debate on the Budget Speech should really stop at 9 p.m.

Your Honour has the power to in­ terrupt the suggesting should stop at 9 p.m.

If it does not agree, then we can go on to 10 p.m. · when the business cl ude.

at 9 p.m.

I am business to the Opposition that we will have to can­ Mr. Luck: Let us stop at 10 p.m. Mr. Bissember: All right.
It is nearly a month since this National Assembly ratified the Agre­ ement establishing the Caribbean Yree Trade-Area.

Nearly a month has elapsed since this House voted in favour of the Agreement.

Page 31 Annex 'C', pr� of the Agreement, vides that frcm the beginning of.Jan­ uary, 1967, the duty on rum from Barbados and Antigua, the othe� two parties reduced by 40 per cent.

I will read the relevant parts of.

the document.


Annex• C' states: to this Agreement, should be by element in re­ of �he effec· elimination are in this Annex for the "l. Special arrangements provided progressive Member Territories tive protective venue duties (hereinafter refer­ red to as protective revenue duty) applied to such imported goods as are itemised Standard · International Classification lows:- Trade as fol­ (original) under the APPROVAL MOTION OF ESTIMATES OF SITC Item No.
Description of Product 112-04 Rum.'

EXPENDITURE BUDGET DEBATE I see nothing in the Customs Order which has been published and which increases the duty on rum from Bar­ bados from $34.46 per liquid gallon from rum in bottles and to $43 per liquid gallon from rum in bulk.

Assembly resumed debate on the Motion moved by the Minister of Fin­ ance en 16th January, 1967, for the approval for the financial $110,645,905.
of estimates of expenditure year 1967 totalling Mr. Speaker: When we took the M djournment Mr. Hubbard was ..., eaking for 15 minutes.

Mr. Hubbard: I have already said the proposals, and I revealed certain things about the Budget Speech and the Minister of Finance's financial Government's policy,, exposed the Government's philosophy and showed .

that it is one of soaking the poor and the small, and protecting the rich and the large.
I now wish to use those same proposals and that same Budget Speech in order to reveal the.

Char­ acter of the Government., But this is not the only parti� in which the proposals of.

the Minister of Finance violate trade agreements.

We have never had a debate in this Affairs, and House on International it is difficult for us on this side and for the public at large to know what is the Government's foreign policy or anything of that nature.
I believe that, when Guyana attained its inde­ pendence, it accepted the existing " international obligations which had been in force between the t:Tnited Kingdom in respect of this territory and other territories ion of Venezuela, wae for political reasons.

.lf9' with the except­ and that,a kn�, 2826 At,proyal 6[ Estimates of Expenditure [MR. HUBBA"- 1967 23RD JANUARY.

Budget Debate 2827 One ti the Intematimial Agree­ ments in force was GATT, the Gen­ .era!
Agreement on Tariffs and Trade, and GATT provides that preference should be brought to a stanostill with the object d. eventually elimi­ nating it.

If you look at this Customs Order you will find that, in respect of cotton prints, favour d. goods d. Commonwealth origin has been increased fnm 5 per cent to 10 per cent; so that we see the character d. this Government both in regard to the actual � venanted Agreements and to old and long established internatimial takings, of paper to be set aside at will.
for it regards them as scraps the preference in under­ ated for our own people.

1 Jmow that the friends d. the Minister <i Financ e and the Government, the big fish, do not find prciit in the sale of cloth at three and four yards for one dollar, and there must be ccnsiderable pres­ sure upon the Government to create e<mditicns which would exclude this clieap and necessary commodity from the local market.
We have seen that while the Govermnent is insensitive to representations from other quarters, while it turns a deaf ear to everyme else.

when the Chamber d. Commerce barks• not one but two Miniaten jump to attention and promptly give consideration to what is said.
I while we knowtha, I am Uisturbed over this as other decent Guyanese must be disturbed over this because, in our internal affairs the pledged word of the Government .means n� thing, we are going to find ourselves in very grave difficulties if that atti­ t-.i.de is adopted on international com­ mitments as well I would like to be gen.:..-ous ana tofeel thattheaetwolapseshavebeen oversights but, en the oher hand, it is possible for me to feel, and it is even reasmable for me to feel, that in terms ofthebreacluitheCARIFI'A AGREEMENT it might be against the policy <i the juniC¥' partner in the Coalition Government to permit com­ .
petitive ·rum from the islands d. Bar­ bados and Antigua to come to Guyana .

!Uld have opportunities of sale here which match those of certain blends of locally procb1ced rum.

When it comes to the question of textiles, we must understand that it is not only the fancied enemies of my fri-mds who will suffer.

It is not theeocialist camtries alonethathave been suppfymg cheap textiles.
Per­ haps members of the Government think that cheap textiles come oniy from the socialist countries, but it is a wast.eful practice in the United �tes of America that when a season ends, the µnsold palltemea '£'extiles in · the big stores are withdrawn from sale and sold for a song to make way for new patterns.

Since this is the practice in the United States of America, it is possible for intelligent buyers .

to go there and acquire lots at cheap prices and bring them .
for sale, to the advantage popula ticn.

e .

.

...

�.:.:?Op.Ill.

The situation, as I said, is most grave.


I have no doubt that the Bar­ badians will do what they find neces­ sary but, with respect to the dn­ ferential in the foreign rate d pre- 1ference serious disadvantage has been er� en printed textiles, a very his' In increasing the preference on· Commonwealth supplies of textiles, the Minister of Finance is not cmly discriminating against socialist trade, but he is discriminating against friends in the United States· d. · America.
I have warned members <i the Government that itis a dangerous thing, to accept at face value, wnat put before them by the Minister 1f Finance, and I hope that, now t; 1at I have underlined be more careful in the future.

I cannot this, they will is .828 Approval of Estimates 23RD JANUARY, 1967 Budget Debate -2S 29 of Expendi ture believe that all the people whose faces I see on the other side of the Hoose are contemptuous ments solemnly covenanced.

of agree­ to trade.
of agree­ to trade.

which relate said how disappointed of Trade should for this Assembly anything an hour without like to deal I should particularly of the Govern­ aspects with certain ment's policy I have already I was that the Minister have addressed 'half at all about trade.

one pillar policy to be the twin main pillars a country's economy rests.

have liked to have heard from the Minister of Trade what is being done in this other important saying A fiscal policy is of Government is another.
They might be said and a trade upon which I should field.

establishing We have just entered into this the Carib­ Agreement and I bean Free Trade Association have looked through to the Estimates see whether this was a Budget or again an whether it was, indeed, interim Budget.
it is another interim Budget for the reason, that no where in this volumi­ nous publication to the extent of so much as one cent for paying the cost which will accrue to this country the Caribbean Free Trade Association can I find provision as a consequence of I am persuaded that I hope provision.

this year.
this year.

we will come back early which does not have to be incurred as from the first of January Therefore for supplementary that I will not hear from the Minister of Finance that money has been un­ lawfully like this Free Trade Association and that he is having the Director Audit pass upon it, and I hope that he will not immediately seek the approval for what he originally spent in respect of this Assembly disapproved afterwards d things of .
and the standard trade and external trade which affect both the cost Internal are factors of living I have been distressed which our internal trade has declined elements of our and because external trade have withered away while others have lost much of their profitability.

of living.

certain at the way in 2.30p.m.


Because of the thoughtless re­ to marks of an Ambassador-designate whom the Queen was delighted honour and who is now serving abroad, we lost a very valuable market in Trinidad People who for plantains.
·live in remote areas on cur coast in the North West District and in the have been hard hit Pomeroon District by the loss of this market._ They used to get three and four cents per pound for plantains, spot cash, from sloop owners who took them over to Trinidad That market is gone.

They now have to accept a minimum price from the Guyana Marketing strings price.

The a particular selling the plantains have to have certain they must party connections; fit into a certain political pattern.
This has caused a great deal d dis­ illusionment, a great deal d heartburn to people who live far in the country.

Corporation and to thatminimum have to be of are attached plantains and sold them there.

size, and the persons a great deal of loss, anq some disquiet this Government To my mind this indicates that fast is still playing � d loose with this Assembly and .rv 1th the people of this country.
I ··,.remember the Agreement I that when I spoke on the motion for ratifying expressed at the fact that no estimate of cost had been presented I am led to believe that this feeble effort is considered ment to be ended, or once again we have been treated toafictitiousstate­ position inent d our financial by the from the simple process of excluding Estimates necessary expenditure by this Govern­ along with the Agreement.

.
.

::1.-" !.·,,:u1•a/ of Estimates 23RD JANUARY, 1967 Bud�et Debate of Exoendi turc C),!R.

HUBflll.RDJ I am very disturbed to find that, I regret that the hon.

Minister of plantain manufactures Reid) is not in his seat Trade (Dr. bE:rnuse I wish to put forward to him some suggestions which might be helpful.

The Guyar1<1 Marketing plantain Corporation flour flour.

To manufacture it has to purchase prime gr?.en plan­ tains.

There cannot be any sug­ gestion that the plantains are turn­ ing ripe.
This means that plantain from the most flour is manufactured expensive that are on the plantains market, because they are the plan­ tains that are ferried across the river from the canals Polder and places close bv.

, -I should like the Minister of Trade ciplantains to offer to those producers \vho live far from the market the op- rnrnnrs:titinn ...... ""'"+-,·u ... ;h.,.

+n coll tn tl·u:l; pv.o.

v,.,.....&.

...... vJ ... .._.


...,...,...... ..._ ...... __ ---r-------- but what is called "Con­ not plantains quintay", that is, plantains their skin, sliced irto pieces, the sun or in kiln - if one is avail­ able and sent in plastic containers ture extracted does not become ab­ sorbed again in transit.
stripped of dried in downtotheCorporation so that the mois­ I know that it takes about four to make one flour and, on that the farmers could use pounds ci plantains pound of plantain calculation, their family labour to earn 7 cents per pound for plantains instead of the 2 cents that they now get.

The Guyana Marketing Corp� to employ the services over the in spite of its experience has past two years, the Government continued of Connell Rice and Sugar Company for the disposal of so-called "surplus" rice.
We were made to understand that this company would dispose of all rice which was surplus to the needs of the traciitional markets in the Carib­ bean which we have been supplying.

This was my understanding of the fact that we have tabled a Question the publication nell Agreement, blank.

The normal parliamentary has Questions of answering practice been set aside and we are still in the dark, so we have got to speculate rather than to speak from certain lrnnwlorlg,:,,.

in this House requesting of the te.


:-ms of the Con­ v?e have drawn a total .

In spite What disturbs me is this: Connell Rice and Sugar Apparently, Company is not acting as a disposer of surplus but as a seller of prime produce.

That company tells theRice Marketing Board what it wants and the PJce ?

"{arkcting ing for it.

There are, I am informed, more than 20,000 bags of prime white rice lying in the R.M.B.

bonds at Springlands.

be sold by Connell.


There are also some 40,000 bags at the Rice Market­ ing Board in Georgetown.

This rice is supposed to Boe.rd is produc, I Now, the Government's justifi­ ration which retails plantain flour at 56 cents per pound could easily pay 28 cents per pound for the "Conquin­ tay".

This would be a great advan­ tage to the farmers living outside, and everybody would bepefit.
I am sure that the Corporation would be able to make something because the plan­ \ains it now buys are very expensive.

I submit that for the consideration the Minister d Trade who is not here, and I ask that his friends be good enough to ccnvey what I have said to him.

.

cationfor this Connell deal was thatit had found on hand large supplies white rice which had to be promptly disposed of: Connell Rice and Sugar Company was brought in to do the job.
That company is acting not as since it ( a seller but as a purchaser, buys at 1 per cent commission - the i first buyer I have ever heard of to • get a commission for buying.

The stocks have built up and there are 60,000 bags seems to have lost its magic wand of rice unsold.

Connell of of 832 Approval of Estimates 23RD JANUARY, 1967 Budget Debate 2833 of Expenditure Nowthesethings at the roots of our economy and and the Government seems to have lost its justification.
strike I see nothing·in the that any attempt find a way out.

Budget to suggest is being made to Mr. Speaker: Timei Mr. Ram Karran: I beg to move t4at the ho11: Member be given an extra fifteen minutes his to continue speech.

The answer is not the retaining which buys cheaply and sells We gained our Indepen­ of a company which is in the rice business, expensively.
dence to break away fron this but, we have having become independent, our rice indistry recolonized which had become independent during the period of colonialism.

2.40p.m.

I see an item under the Ministry problems and Civil Aviation at $448 a month.

of Trade, Shipping for a Trade Officer I do not think that a Trade Officer at $448 a month is going to make any impact upon the marketing What we need is to of this country.

and to assay marketing opportunities, move in and try to get our goods sold.
But a Trade Officer at $448 a month is not, I submit likely to pos­ necessary sess the experience to point which are the way ior.

the reforms cl trade is necessary to develop to end our bottle-neck if a new pattern here.

Free an I think that the Ministry and Civil Aviation of Trade, Shipping should go carefully into this question and see what can be done because we have got to reform, as I said, our internal marketing as well as our external The Caribbean marketing.
provides Trade Area Agreement opportunity for ending one little bottle-neck if the Government will only see it and use it.

Barbados a vast tourist trade which is anxious to_have_new _foods.

:.which supply.

to arrange for It is possible the necessary frigerated the surplus away, but which its tourists .exoensively Jor.

accommodation ships to take to Barbados of foods thatwenowthrow would pay _ we-can has of re­ Mr. Lall seconded.

Question Mr. Hubbard: put, and agreed to.


There is nothing in so far think which relates, the Agreement as I have been able to notice, precisely to trade and that sort of thing.

But since vou have made a union, I it is right that you should try to see what you can get out cl the union.
In terms of foreign trade, I say again that it is wrong, very wrong indeed to confine ourselves markets which to us, almost throughout I say that socialist been earning way of foreign should be a determined effort gain over the trade opportunities which exist here.

our history.
our history.

have countries by mooev in this market exchange to selling in and there have been traditional to bar­ We have an unfavourable balance of trade with the socialist countries, but we also have an unfavourable cf trade 'With Brita.in and we balance must use the principle that trade is a two-way affair in order to expand our opportunities abroad.
Making deals such as the Connell deal are not likely to help us tolift ourselves out of the financial difficulties now in, and which will grow as this year progresses.

we are I should like the Government to take into consideration studying seriously all markets, the question of so as to find out what can be done to grt us new customers for the goods we produce now and hope to produce in the future.

As I said, I regret the hon.

Minister .

and Civil A viatian is not here.


I re- of Trade, Shipping that gret that he did not enlighten Government's intention and I hope that as this debate pro­ gresses, and other Ministers theNationa,l Assembly, we shall learn us on in this field, address 2834 Approval of Estimates 23RD JANUARY, of Expenditure [MR. HUBBARD] more about the Government's tion in other be more fortunate in some of them.

fields.
Perhaps inten­ we may Mr. Singh: The Budget presented of Guyana, of Finance is the first to this independent and I submit the best certifi­ by the Minister Budget presented Parliament that it is incontestably cate which this young nation of ours can produce to hang on its halls of fame, for it communicates to the out­ side world - in a waynoBudgetever Minister presented by any previous of in this Country Finance could have done; it communicates to the world this nation's nation's ability to the world gress.
It communicates ability this Goverrunent's to spur the growth to provide nation's economic a more secure a mure prosperous, life of race, regardless for all Guyanese creed or religion.

determination and this for achieving pro­ 1967 Budget Debate - 2- $220 million in 1959.

Over the period 1960 to 1964 the average rate d t growth d the Gross Domestic duct was 3.

7 per cent - from $263.5 in 1960 to $301.

8 million in million 1964.


Let us remember that during the period 195 7 to 1964 there was in power the present called •workers said to the just demands of the Civil "not one cent more!"

Servants Opposition, Goverrunent" a so­ that Pro­ Let us look at the record of this in its two short years of It shows that the Gross Domestic which stood at $301.Bmillion Government life.

Product in 1964 rose to $326.9millionin 1965.

In one year the rise was to the level Gov­ of 8 per cent.
What the previous ernment has failed to achieve in its 7 years of office, this Government has not only done in one year.

but has done better twice over.

It is an en­ viable record, but the storv is far from complete.

the Gross Domestic to approximately a most fantastic increase cent in the space of two years.

Put another way the annual increase 10 per cent By the end �f 1966, had risen Product It is $360 million.
of 20 per was all, that is, people, working-class It is the alternative LLaughter of is this Government's manifesto.

few self-styled whose only avowed purpose This Budget non-communist (Opposition).

: all the Guyanese except a leaders is to wreck this fair country of ours Marx­ Socialism, by their vulgarised ism, and other 'isms'.

This Budget is our answer to Marxist-Leninist emotiveness with which we in this and in this House, have be­ country, This Budget come only too familiar.
is tainted perhaps, with only one kind of 'ism' and that is pragmatism.

Un­ like his predecessor, Finance and this Government boast of progress not decline predecessors.

and pragmatism, and dogmatism as their this Minister d can good what our This is an undoubtedly at a before.

despite We must bearinmind may say.


This is a record record of progress, detractors which has never been equalled in this country that this record was achieved time when sugarwas the sheet-anchor of this country's economy, and the price of sugar fell from $500 a ton in - the 1963 to 1964 period to about $96 a ton thereafter.

Let us remember that the _Gross Dmiestic Product during the years 1963 to 1964 was boosted by the price d sugar at $500 a ton.
2.50p.m I will now refer to the progress of In the period 1954 this Government.

- 1959, this country's tic Product at at factor an average annual rate of 2.

7 per in 1954 to cent - from $194.

million Gross Domes­ cost increased by, or with the connivance :Presumably we will be told that C this drop in the price c:i. sugar was engineered and so on.
But of, the imperialists when those who would like to tell this story set about doing so, they must remember-that_at_ the_same:_time -� �36 Approval of Estimates 23RD JANUARY, 1967 Budget Debate 2837 ·'1di ture Cuba was dumping market at the s_ame price _of $96 -�­ ton.

They must remember also that .

Cuba was one of the main stumbling of a new hlocks to the conchis{on sugar on the world· .ternational Sugar Agreement which would help both consumers and pro­ ducers of sugar.
Let us look at the background to in this Budget of progress, at the pragmatism, this Budget in another way.

Let us at the look at the record on optimism, which the proposals are set out.

Let us look at the gra.vth of the annual Product Gross Domestic which has resulted in an improvement in the way of life for all Guyanese.

This is further exemplified byalookat the national lation.

The national of population ment, and it is always a good· and reliable well-being, despite say to the contrary.
been used as a means of knowing whether or not a nation is progres­ sing-, income per head of popu­ income per head is the index of develop­ means of telling a nation's what others may i This 1hasLalways decline the period immediately The national income per head, which showed a fantastic during Government, ceeding the present had a new lease of life since this Government came into I will quote from look at the figures.

the Economic Survey Guiana ·by Dr. Kundu.


At page 43, to Dr. Kundu, according pre­ has power.

Let us of British national "The per c·apita in­ gradually come has declined from 1957 - the year the P.P.P.

came into power - a - rapid Guiana."

growtll ip .

B �Itish and All of this had to the present point of a rapid gra.vth that Dr.

It is a national tragedy Kundu' s prophecy did not come true.

This country had to wait for nearly five years to see the "expansion" the "starting of the economy.
wait for five years intil Government came into power.

In­ competence, dogmatism, alien to this soil, osophy and ideology rejected and categorically great mass of our people, were respon­ sible for theeraofdecline.

the reasons why thepastGovernment failed to live up to the expectations of the economists certain who have predicted things.

and Ji phil­ Thesewere by the What has been this Government's so far?

Before I with record the sad story of this, let me complete the period 1960 to 1964.
Working on a slightly the Guyana Statistical Bureau has computed the behaviour capita as follows: income for that period differentbasistoDr.

national Kundu, ci the per "1960 -$434 1961 - $432 1962 - $417 $1.

963 - $403 1964 - $400 .- as the Gross Domestic Pro­ cost.
It has been a tragic run at that time by This, you will note, follows the same pattern duct at factor tale of a country men bankrupt in everything else but their to propagate their mad desire own ideology, their own philosophy and to push things down the throats people.

ofother 3.00p.m.

With a population increase of "to1959."


He calculated the na tiona 1 per ca pita income as - "$ 3 91 in 19 5 7 S 3 9 O !n 1 9 5 8 ,, about 3 per cent per annum it seems 10 1 9 5 9 $ 3 8 O · • • that, far from our having an develop- m-ment during the period 1957 to 1964, He also calculated said that:the economy of this country come in 1960 as $413.

He tot?k a from 1 ?59 .to retrograde plunge.


of this The record "the increase 1960, on t_he other ha';ld, is quite Government's achievement in 1965 future encouraging,--and-w1th- the year 1960 may and 1966 is there for all to see.

expansion point of Whereas at the end d. 19�- prove to be the starting the per capita 2831 A,pprowd of Estiaate.. 23RD J�UARY, 1967 Budget Debate 2a1ef of Ezpendi ture achieve­ The ecoo­ WlaS $400 per C•-SlNGf] tbe natia,a1 income llead.

by the end of 1966 it had risen.


ta $1'10.

an increase ol 18 per cent arer the two-year pericxl, or an WUJMC increase d. 9 per c9Dt per -Tlds is the ootstanding aelll • tllis Guvermnent.

Jw:iously Oil the upsurge.

� -- B y.- allow me, sir, to use an e J JCJ• I would say that the rocket is df its Jenadring � but the Gov­ e mt is not satisfied with the self- 1*•1 m The Gol,emment will De¥S' ...... it doml hut will find additional i+,tetw, additional thrust ._waul.
I submit tha1 the proposals do -wJi wi by the Mioist.er d Finance energy and .... ide edcfflional added 4aw11 to the economic machine.

- d. '!1e Budget is &et df.


any retrorockets 'Die pbilaloprly to push it - zh- It is to cum our tendency to en es and atravagance in - a...-Nebeign exchange.. We to the ae mJists We recognize our weak­ -aaees1 and we are determined to d. cmr lleat to put them right.. ....... suggest that the answer c:lw.ge rmtrol hot throughout the 5 ies eschange rmtrol has not o Sane is ex­ wt · • ed wlla:i. it was first thought it Wllllld achieve.

Oar coufidence in rmwlwes and the codidence d. the _.
· h-world in our ability to be pod lliOasekeepers c:uab:J YIM+eESWY- make exchange 1,'lae Govet otoer4 is rea&ly putting more whereitrightlybelongs.

tilef'lll)il,asis Ollr emphasis must be m controlling a&1r illml imports and on using t1L Glr own 1o::al foods.

There are .....,.

.local substitutes for .._and we must use these not only as u:dstuff but for our manufactured aatides.
ew +wage local industry, to woo fweigu capital and foreign entrepren­ to cone here and, when they eml!S llawe � to encourage them main.

The philarophy, too, is to to ft' imported It iS a known fact that there is a Our indus­ of capital.

All the develop-� shortage ing countries are vying with each other for foreign capital.

If we want to move ahead, our policy should not oe -exchange control.

Some_ people would suggest nationalisation.


policy should not be to nationalize­ Can we afford to nationalize is this: In every tries?

The position country where nationalization has in chaos.

been tried it has resulted Those who advance nationalization would perhaps .

:lo better to look at the lessons Ghana of India and Indonesia, and Guinea, Cuba and Ceylon.
They should look at these countries before trying to tell us that we should nationalize our major industries pay compensation what would we pay compensation?

Perhaps "Compensation" word in the vocabulary a the social, ists.

for them.

With is not a and The answer is not nationalization.

I respect­ It is not exchange control.

fully submit that the answer is pro­ vided by this Government's philoso­ phyand policy.

substitution, rapid industrialization.


Itis a p olicyofimport a policy of incentives for of import duties on a very Let us look at what the Budget proposes.

What are the propos�s?

First, the proposals of the Minister Finance call for an additional $2.

55 million to be raised by the imposition of additional limited range a imports representing less than 10 per cent, by value, of total imports.
Of these, alcoholic drinks and tobacco provide about 40 per cent of the additional this country we make more rum than f we can consume or would like to s,:,e consumed even if no other alcohol We make gin, beer and 4 was available.

stout.

I have never htard anyone, even my friends in the Opposition, .complain about the quality of these products.

yield.
yield.

In 2840 Approval of Estimates 23RD JANUARY, 1967 Budget Debatfi' � 2841 of Expendi ture Those who have sophisticated champagne tastes, those who want to drink and cognac, must whisky, pay for them.

They should not hurt the economy of this country because of their expensive tastes.

But how does this Budget affect the ordinary work­ ing man?

He makes no allowance in his budget for an item such as cham­ pagne.

Therefore, this does not affect the ordinary working man.

to be a free nation.


Why should we grudge the __ .

Goverrunent the oppor­ tunity to be able to get the money to provide the services munity expects?

which the com­ Let us remember that as a free nation our financial responsibilities are much greater.

I think it is esti· mated that the cost of Independence was about $6 ·million.

This was not met by the .introduction of any c001- pulsory measure.

This taxation oo those who could afford to pay it.


Therefore, criticize those people who could well afford to pay additional taxation?

the Government for taxing why should we was met by product.

atAritigua.

·is also making whisky and In any case,letuslook Antigua makes whisky and sells it at half the priced.

the imported Trinidad why should not Guyana do the sam.e?

.We are making good rum, good beer and stout.

Is there anything to pie­ vent us from making good whlskY?
The time will come when we will be able to do this and the:p Government will be complimented in giving an opportunity who may wish to establish .

�s · dus1;ry.

Government has giveq.. 1he, .

chance to people to go forw'ar� and· establish such an industry and has an in�ntive.

provided on its foresight to p�ople .

in­ Tobacco is �so included in the to be taxed.


We grow to­ grownnotfarfrom George­ it was men- that .good articles bacco in the Rupununi and in .Dem­ erara Only yesterday tioned in a newspaper tobaccols town.

Therefore the· Government • is well justified in imposing taxes on tobacco.

We must contiriue to grow tobacco locally and those who indulge in the harmful pastime of smoking should not begrudge additional pay as a result ()f their pastime.

amount they will have to the increased 3.lOp.m.


Our critics have been loud in their criticism Goverrunent needs money in order to provide the amenities which it is SUP"· posed to provide for the nation.

We are now a free nation.

We are proud Weliave a situation where 40 pei cent of the additional import duties, of the $2.55 million, will come frcm A alcoholic drinks and tobacco.
further 30 per cent, according to the Minister of Finance, is attributable to the higher ·.duties on certain nan- foodstuffs and articles of , essential and· the remaining 30 per clothing,.

cent of.

the increase will be.

raised by higher duties on consumer durables and miscellaneous goods.

To those who perhaps cannot me do a little bit of mathematics, let explain that.
30 per cent of $2.55 mil­ lion is $765;000. ate going to raise$765,000oncertain non-essentia:J. of clothing;· of $765,000 will be raised on things like motor cars, refrigerators, electri­ cal appliances, nails and so on.

I want the members d the Opposition cularly to r�member that 30 per cent of $2.55 million equals $765,000·be­ cause I will refer to it a little later.

foodstuffs and articles That is all.


A further smn It means that we manufactured parti­ appearing Contrary to statements in the Press, I wish to say that the Budget is not a Budget that affectR the ordinary is only 1 per of retail price increases cent or there about.

The working is not affected.

The man's · budget things that ate taxed are not things which he would nc··'llally man.

In fact, the index use in his of increased taxation.
This the lastGoveriunent 4pproval of Estimates 23RD JANUARY, 1967 Budget .

Debate 2843 .

of Expendi ture SINGH] sprouts are not in the work­ staple diet.

Things like tinned cauli- .

flower and Brussels things that are normally ing man's Budget.

Even if things like tinned juices, beef salted fish, pickled and pork, and other such things are fn the working man's budget, are suitable substitutes which he can use.

for building than has done in its seven years in office .
This can be verified by the figures in the Economic Survey of British Guiana.

This Government duced income tax concessions on the income paid on mortagages for those who wish to build their own houses, those who wish to repair and to reno­ vate their own houses.

there has intro­ factory for example- should not buy locally We have a local mar­ employing Take margarine, There should be no reason at all why made Guyanese margarine.
garine local people and there is no reason why anyone buy the imported .should· product.

of Buy local!

In any case, in respect such things as salted abundance meat.

Those who have a sophisticated those who still taste, foreign goods are better, those who till have a colonial mentality and think that all things foreign are good and things local are not good, must pay more if they want to indulge this taste.
Theymustpaymoraifthe)· are not prepared of fresh fish and fresh fish, there is an think that the in Perhaps I should nail this fallacy going materials in the cost ci.

the increase nails.

There is, in fact, a and thereisno� in Berbice should why Guyanese of the cost of building up because of imported nail factory reason the good nails which are being pro­ duced by this factory.

reason and support the local industry Berbice.


There is no not buy local, why they should not buy in I can go on and demolish spurious which have been brought and outside of this House, point in doing this.

I can go on to pay my hon.

arguments up inside but there is little Perhaps Friend Dr. Jacob the compliment ci.

to his Budget Speech on the referring 31st January, 1962.

I should like to quote from the Hansard of 31st Jan­ uary, 1962, column 763.

This is what Dr. Jacob said: to buy local.


I submit that the staple diet ci.

in any way like flour, peas, Guyanese is not affected by the Budget.

Things and potatoes have not been taxed.

It is true that there are some who would fraudulen tly want to soak the poor and who would add to the price of these articles.

say that the Government to adopt a very stringent haps a policy of price controlis The Government introduce convincing lous pricing traders per­ needed.
to will not hesitate if there is To those people will have policy, price controls evidence of an unscrupu­ policy in this country.

The Opposition has made a song being pursued we by nails being and dance about imported taxed and the cost of building ma­ terials going up.

I should like to say that this Government has been in office for only two years and it has trade and done more for the building "It is proposed to increase alcoholic drinks, to­ the rates of duty to yield $6.5 mn.
on the present level of im­ ports.

This increase will be con­ centrated on $40 mn.

of imports, which at present yield $12mn.

in duty and comprise less-essen­ tial goods either in the sense that they are not necessaries of l if e (e.g.
bacco, concentrates for non-al­ coholic drinks, tea, motor s p ir if, perfumery , co s :rn et i c s , the more expensive dress fabrics, footwear and other a pparel, glassware and chinaware,jewel­ lery, radios, refrigerators other household -:lectrical pliances and motor cars) or in the sense that adequate sub­ stitutes can be supplied from local production butter, milk, cheese, fruit, fruit (e.g.

meat,fish,.
meat,fish,.

and ap­ "'- .44 Approval oi Estimates 23RD JANUARY, 1967 Budget Debate -2845 of Expenditure Jams, coffee, c·onrec-_ toilet juices, paints, tionery, prepared soap, paper bags and some varieties of clothing).

Tht actua} yield of these proposal!

will be less than the $6.5 mn.

above, since there mentioned w-ill be some curtailment volume of such imports fit ting both local production the country's ance of payments; venue yield should not be less than $5.5 mn."
in the - bene­ and ional bal­ internat but the re­ The Prime Minister: Read it again.

yield " .

.. but· the revenue should not be less than$5.5 mn.

duties will add The increased 17 % to the c.i.f.

imports advalorem goods to nearly 50 % .

The aver­ age retail by more than 10 per cent."

and bring the average rate ofdutyonthese price should not rise value of these from non-essentials the buy-local hon.

Minister of Finance does not affect the ordinary working-class man.
It affects only the wealthy people.

What we are daingis shifting of importation encourage emphasis to campaign- it is proposed to raise Secondly, $5,000 by putting a an additional higher excise duty on matches.

The real effect of this is not to increase the price of matches at all, since one box will continue to cost three cents.

Let us assume that people buy two boxes of matches at a time.

It means that they will now have to pay one cent more on· every two boxes that they buy.

3.20p.m.
3.20p.m.

· nems do many o'!-1:ni:: and therefore the in­ Hov;e ... rer, not enter into the working-class budget, crease in the Urban Consumer Price Index (which is an index of changes in the working-class will-be·· cost-of-living) mately I%."

approxi­ We all know the fate of the 1962 over the whole range of imports It is criticizing in 1962 Budget.

Th·e Opposition wanted to raise $6.5 million virtually into this country, and now it is criti­ cizing us for wanting to raise $2.55 million.
ing to raise $2.55 million h_igher level of imports, more restricted compared with the $6.5 million Opposition [Mr. Luck: "But you raised $2.5 mil­ lion as well last year."]

tatoes were increased.

item on the staple people was increased.

us for want­ on a much but onamuch range of articles, as Peas and po­ Almost every tried to raise in 1962. diet of the Guyanese the ap­ for cooking One box of.

matches contains For 40 sticks 40 sticks.

proximately of matches the working man pays an of one cent.
If a family uses increase three sticks each day to light the fire meals, itmeansthat thrice within one year the family will be called upon to pay an elephantine sum of 14¢!

[Mr. Luck: "Three sticks about a day!

Do you know anything to cooking?"]

ra1se $6.5 million on things like peas and potatoes and all the other things which were taxed in the _1_9_62 We have not attempted Budget.

Now, we go on to another aspect of the Budget.

TheBudgetisgranting concessions.


certain has said that these concessions for capitalists.

They are for the capitalists Any Guyanese They are for all Guyanese.

scarce in this country.

At present, in this country resources ·so we should be grateful to those Guyanese we have got neither the nor the technical know-how capitalists.

is entitled to benefit.

The Opposition Money is are What capitalists?

of Guyana.

Let us summarise raising the position .

an additional - [Mr. Luck: "You are .


First, we propose $2.55 million "] I repeat that this being repetatious.

one-third of.

what is approximately wanted to raise in the Opposition 1962.

The Budget presented by,� .

Mr. Speaker: Time!

Mr. Tello: I move that the hon.

Member be given an extra 15minutes .to continue his speech.

Mr. Sancho seconded.

Question put, and agreed to.

2846 Approval of Estimates 23RD JANUARY, 1967 Budaet Debate of Expenditure Mr. Singh: We make no apologies d It would granted.
those single individuals for the concessions mean that rice farmers would now be able to buy their trailers cheaper.

Those who want to buy prefabricate frames for building, those one-man businesses, who are now setting up their owr businesses fabricated who will benefit are, capitalists for manufacturing confectimery, paper and plastic bags, and so on.

will benefit by these pre­ frames.

The capitalists who have set up factories furniture, nails, in fact, those order to .
attract investors to this country.

The position is that in the contem­ scene of the Carib­ porary industrial bean we are not in a position to com­ pete.

For example, Surinam has a minimum tax· holiday-period -a-5 · years, with a maximum of 10 years, and in addition to this it has a number of other tax relief measure�.

This is also against the backgroundof low company income tax.

been will now be Certain there are not position.

They will now be able y had been heavy machinery.


We are Another concession has duty -free importation of industrial raw materials, provided already adequate local substitutes, so that our ironmongers able to develop.

to offer adequate local substitutes for articles which previousl imported, just rationalizingthe articles have been imporiea at a low preferential materials higher rate of duty.
The result has been the manufactured articie was sold cheap, and the raw material from which the article could be made locally, was sold dear.

What the Gov­ ernment is.

doing is rationalizing the position so that the local foundrymen and the local blacksmiths able to produce this product at a price to compete with the imported product.

have been imported at a rate of duty, and the raw will now be itseii 3.30p.m.
in­ to off er reason­ Barbados has a most liberal a minimum tax holiday centive with period of 7 years rising up· to 15 years in certain cases.

We cannot hope to attract new investment here unless we are prepared ably competitive terms.

Those who criticize us, perhaps, would like tosee State enterprises in this country.

They would like to see publicly-uwu�d Let me ask them this enterprises.
"In their 7 years in office, question, did they how many State enterprises I know The only enterprise c:.eat�?· of is Gimpex, and that is not a State enterprise.

This country's problems cannot de;rclopmcnt the mom­ unless there be solved; this countcy·'s cannot gain and maintain entum which is likely to lead to the New Road to Happiness is a change of heart.

Fiscal policies alone cannot achieve this.

I would appeal to the Opposition to listen to this.
Development is not merely an idea;it is a philosophy.

is not governed in any country by the economic forces alone.

development hearts; in which 'their thinking finds expres­ sion.

We have Erovided good, sound institutions, and we appeal to all and 4 Guyanese to give ustheirsupport so that we can make co-operation better place il2 which to 4 lies in men's minds and it lies also in the institutions Development The key to ana � �;:.

:Mr.
:Mr.

Ally: In commenting on this 1967 Budget, I should like to ask the hon.

Minister of Finance, who has Finally, if we in this country want to attract foreign investors to create the necessary ftnarlce for new invest­ ments, we will have to offer effective We will have to modify the incentives.

tax provisions relating to initial al­ lowances and to tax holidays.

The Governt!

!ent proposes to overhaul the Inc?me._ Tax (In Aid a.
Industry) Ordinance, and this is essential in ,,-- 848 Approval of Estimates23RD JANUARY, 1967 Budget Debate 2849 , __ ,., of Expenditure spent two years in office, to ten us who has gained more, his rich friends, or the working-class people of this country?

We have seen the vast amount of lies and propaganda men­ tioned in Highways to Happiness re­ garding ecooomic dynamism, but l shall not bother to repeat those things.

We have to be suspiclrus of this 1967 Budget.


T.o start with some of the lies, I m� mention that in 1966 it was stated that a single scale of· duty for all kinds of goods ve­ licence hicle�.

should be by the payload.

Today we are indocrtinated, and we find that"payload" means the unladen weight of the vehicle so far as the of Finance is concerned.

How Minister can a Government Minister be taken into anybody's confidence?

This policy which is country's from outside i8 ruining uur economy.
At times when it is not dictated from- Messrs. -, Cameron ·-and Shepherd.

How much longer can this Governmentfool the people?

from outside, it is dictated dictated and controlled 'The P.P.P.

started a sound foun­ In this bid to enforce s policies introduced here dation for.

the economic progress of this country, but the whoie structure was changed by the greedy and avariciou to benefit persons inside and out.side of.

this country.
this country.

these policies on Guyanese people, corruption and nepotism bribery, have been rampan� and th!

;l economy of the country has suffered, _is still suffering, Unless the Government is prepared to introduce a policy which is suitable to the majority ,;4. country, where everyone can partici­ pate, we can see only failure and will continue to suffer.

the people in this ahead.

cost d. living, with the ·�shot Gov­ ernment• fooling around and d<dng nothing to help thepocrworklng-claas families.
I will give examplee a.· sane of the failures by tb1s so-called "genius" of economic dynamism· (1) The Dally Cbrouide; (2) The British Guiana Chipboard Company on the East Bank; (3) Food Manufacturers Limited, and so oo.

But let us discuss the Current Expenditure for 1967._ The Minister of: Finance· mentiooed smnething about the high debt charges which are growing.
I will quote frooi page 12 of his Budget Speech: �our high percentage though not the highest, the highest in the world and .must cause us some concern."
is among (44%0, I understand that in spite of the advice given by the previous Gov­ in spite of the fact that our ernment,· progress lies in-agricult country's ure, an agricultural country, this being apartfrom agriculture being the main­ stay d our economy, the present GovArriinent was fold that agriculture would be able to absorb thousands of the unemployed who walk the streets today seeking jobs.
This Gov­ ernment was told of the cooditions existing bent on this heavy expenditure infrastructure that it went ahead and did all sort.s of things.

The result is that we have thousands of Jobless people in our country today.
3.40 p.m. in our country, but it was so on My impressioo _ d. a _good _and cars, but a Prim• with a Prime Minister honest Government is not one which concerns itself who lives 1n splendour and gallivant, with flashy-looking Minister whose chief interest is bl providing bread and butter for his peoplEl� t .. when the popu­ think,_ that lation suffers the 'Prime Minister should suffer too; when the populatlQQ starves the Prime Minister • It were For instance, in 1965 there 112 strikes; in 1966 there were over • by fl/ leaders of trade unions were muzzled · 130 strikes; representations .. ·and harnessed against the desire of.
We have seen unemploy­ and the spir� the workers.

ment, retrenchment 2850 Approval of Estimates23RD JANUARY, 1967 Bud�et Debate - 285 of Expenditure [MR.

ALLY] starve; and when the population joys luxury then and onlythenshould Government officials living.

After all, they are the ser­ yants d the people.


enjoy luxurious en­ I should like to read the last on page 14 of the Budget paragraph it is "From the foregoing, evident that insofar as the Cur­ rent Budget is concerned results last year and prospects give no cause for concern."

this year What do we find?

In this inc!epen­ are dent country of ours conditions I am reminded the opposite.
exactly of a story I heard while on a trip on Coast of a certain man the Corentyne he was a supporter of who admitted the United Force and helped himself as the bribery have changed today and, porting the party for about two years he admitted was in office_ people_ ft cockoo" or breadnuts, Coalition that when the P.P.P.

were getting is giving them katchar.

was good.

But things but now the after sup­ \\That about the spiralling be?
This increase can members of the Coali­ How callous tion Government does not give them any cause for concern.

cost of living and the high cost of foodstuff?

Bookers is selling beef at 84 cent3 per pound.

I defy this Gov­ ernment to pass lezi_siation Bookers from selling a pound.

beef at 84 cents to prevent for our children?

in the \\'bat \\That about the increase rent for rooms 3.nd houses?

about education \\That about this Government's res­ health ser./ices?
1Vhat ponsibility fer towards attitude about Government's the mounting unemployment of Guy­ anese?

What is the position of the nation, from the Coalition nothing Government we are on a sinking God help us!

and more?

All of this causes the faced with a circle of promises no concern.

I am afraid Government ship and may \\Then these things happen, who suffer because how_ cheap_ goods_ may.

be if there is no employment, suffer?


The workers there is no employment It does not matter_ selling, they are still expensive ernment of foodstuff has reached height This should bethechiefstudy, but, as I said before, the coalition the members of have no consciences.

and the Gov­ should realize this.

The an alarming price of workers.

There have been strikes and re­ \\Then a trenchment it is not because he ( worker strikes He loses money when loves to strike.

strikes he strikes; he of his own cause.


Among the people , who suffer are the smaller shop­ short- keepers.

age of goods, an artificial shortage of foodstuff.

Yet people are called There is an artificial ,.

in justification Coming back tv the 1967 Budget, I should like to quote from the second paragraph on pagP.

13: tightly f ramed.

Strict "The Estimates for 1967 have been ve-ry control and every effort at econo· my will be necessary if expendi­ is to be kept within its bounds."
:n the Gover11111e11t Haw can we accept this hypocritical state1T1e11t \vl1e wants to pay an Attorney-Gener al $4,000 a month for doing nothing?

Hem can the Government man that amount of money when there is not enough to employ persons stop the spread of the national gastro-enteritis?

disease, Let us look at vehicle licences.

killer pay one to condition to The roads on the Essequibo is determined there are still called The Government suck the blood of the poor in this country.
Coast are in a dilapidated and residents upon to pay increased licence I urge the Government sympathy the Government would see to it that the owners of buses,, on the Essequibo Coast, receive duty until the roads re bate of licence are in perfect order.

to have some for the poor.

If members of have any shame they cars, vans and other vehicles duties.
a ,--�as2 Approval of Estimates23RD JANUARY, 1967 Bud1et Debate -2853 · of Expendi �re The housewife is upon to make a living when they are being pressed by a Government that has no conscience.

faced each day withaspirallingrisein the cost of living.

Farmers have no markets for their produce; they re­ ceive no encouragemen t. The previous Government tried .

to .

en­ courage farmers to plant cabbages and gave them a bonus as an in­ centive.

In spite d the fact that the.


Coalition Government is telling us tha_t it would like to sell local produce, the Guyana Marketing Corporation ls importing cabbages to sell.

The bonus was taken away.

I should like to quote again from the Budget.


I read fran the fourth line in the second paragraph m. page 15: development "First, our needs are so pressing and so huge that even the generous level of to us made available assistance on soft loan or grant is insuf­ ficient ... " of all · the prCE'.lises made to office he would secure \\lhatabout about big loans by the Minister Finance?
He made big premises at election time to the effect that if he was elected $900 million as loans and would pay wages of $10 a day.

He said farmers would be given 30 acres of land, they would receive better1 number of stooges were bribed fooled in order to obtain their votes.

3.50p.m.

prices for rice.

A and The Prime Minister (Mr. Burnham): I rise to a point of order.

Under the Standing Orders no one is allowed to impugn the honesty d any Member and I ask that the hon.
Member be made to withdraw his remarks about Mr. Peter d'Aguiar in this House.

.

Mr.

Ally: I withdraw the remarks, but in referring to this same gentle­ mentioned man the Prime Minister that he was pregnant in wealth but in political honesty.

sterile The Prime Minister: I rise to a point of order again.

I do not deny having made that st.atem_t:!nt but f.be Standing Orders d. this House state that you cannot impugn the honesty ti any Member.
Mr. Speaker: If the Prim e Min­ ister did make that statement it was in your place to object.

No one ob­ jected, is being made and I have to take note of it.

Please refrain from making such statements.

but in this case an objection country .. into Mr.

Ally: Thank you.

This coali­ tim.-is-plunging-this- bankruptcy.

This appearsonpagel8, paragraph 5 of the Budget Speech: ·or this short-term ness of $17 mn.

at the end of 1966, about $15 mn.

was sup­ plied by the banking system."


indebted­ Now this indebtedness has resulted from the Government's pdicy with respect to the rice industry.

The in­ dustry was profitable until the Gov­ ernment undertodt sweeping dict.a­ torial changes and brought the whde econanic structure of the industry down to what it is today.

The Gov­ ernment has creat.¢ more unemploy­ ment.

in the rice industry � was This is a credit to the there before.

coalition.

But time will tell.


It is said that God does not make a person suffer more than he am._ I urge this Government to recon­ sider its policy and let its motto be that the workers are brothers, re­ gardless of race, ca.our or creed.

I put that to the Prime Minister.

You may try to fool the workers some d. the time, but the moment they have one common goal they will stick to­ gether.

Our motto should be: "Unite with Guyanese first and outsiders after•.
The Government �d tJll6t, 1we must suppcrt local industries.

I am sorry that the ex-Minister -d Tradeis not in his seat because be is a certi­ fied tanner and he can tell you the amount d. hides that are wasting � this .

country.

'l'he· Gov� _has 2854 Approval ot Estiaates 23RD JANUARY, 1967 Bud,et Debate :-2"""", of Expendi ture [MR.

ALLY] turned a blind eye to this kind d. in­ dustry.

This coalitionisnotcmcerned about building our ecanomy locally.

Tms of hides are being wasted.


._-' pliment tile Government and the.Mm- ister of.

Finance.

The whole na1im expects d. living has gme up just one point.

a harsh Budget.

But the cost C: • There was a lot of talk abort the cmunittee which was set up, headed by Sydney King, to investigate the high cost d. living.

That conmittee was set up in August.

This is .

!

an­ uary, and the poor man still bas t.o face the high cost d. living.

The mem­ bers of that committee woutd never "aiake recommenda1ions to .
bring about price control because they are afraid; their hands are tied.

We can clearly see how the coalition is serving the people d. this country.

The workers in this country are having a very hard time.

A speaker cmce saidthatwhenthe P.P.P.

took dlice, it started with a sound policy.

Of course, the history is therewith the sound pmcy frmn 1953 - 1964!

Members cl the Opposition said that in 1965 there were 112 strikes, and about 130 strikes in 1966.
They also said that there is a lot cl unemployment.

But I think members of the ()p}'.

'osition should know that since this Gove.rnmentcame intocifice it has found 6II1p1oyment for over 10,000 to increase that figure.

persons, and it is daily trying Bookers is selling beef at 84 cents per pound and the Government is not bringing about price control.

This is a challenge to the Government.


The Government should takeintoaccrunt that whilst the · prices are going up and there is rising unemployment, the poor people are feeling the pinch.

The Government should change its policy and doscmethingimmediately so that the workers can receive scme benefit from the country which they have served.

Mr. Speaker: This sitting is sus­ :; anded until 4.

30 p.m.

Sitting suspended at 4.00 p.m. 4.33p.m.


On resumption - Mr. Bu<ihoo: Mr. Speaker, I rise to support this Budget.

[Mr. Luck: "Well, tell us why now.

"J When one considers the years· 1962, 1963, 1964, 1965, 1966 and 1967, this is not such a harsh Budget.

The Opposition should take into cmsideration the fact that Guyana is :now independent .

and we should!have a Budget of.

this nature.

Fortunately, we got c:lf from two years.


I _ can do nothin g but com- Agriculture can absorb thrusands has dropped, and the from the farmers; the of people.

The hon.

Dr. Jacob said that agriculture has been killed.

That is one of the five points he made.

The second point was that subsidies ;, are withdrawn third was that the country is in a state of stagnation; the fourth was that production fifth was that toolato past.e is being taxed.

Those are the points of which he spoke.

The hon.


Dr. Jacob was somewhat misleading in his state­ ments.

\\,'hen he said that agriculture was killed, I wonder what item he meant!

Is it rice, cassava, sugar-cane, statement culture statement of hearsay, a statement made by menbers of some irrespon­ sible clique with as little knowledge of agriculture as the hon.

Member himseli.

It is quite impossible for a Government to kill agriculture, fer without agricuiture no country can progress.

corn or coconut?
corn or coconut?

The which he made aoout agri­ being killed is to my mind a plantain, The hon.

Member knows from the I bottom of his heart that our newly independent Agriculture is this Government, Farmers are being encouraged to produce more, and also Guyana � prol?-" essing.

( not bemg killed by !856 Approval of Estimates '23RD JANUARY.

1967 Budfet Debate -.

2857 of bcpendi ture to· diversify their crops so as to earn more fer themselves and the nation asweD.

The hon.
The hon.

Member stated that sub­ sidies are withdrawn from the farmers But he did not say in which sector the farmers are suffering.

As a rice farmer, I know that the rice industry is over-mechanized and more than 75 per centdthe gasolene machinery is being replaced by diesel machinery.

Therefore.

Government duty.free scientious farmers agree in principle with the withdrawal of the gasolene concessim.

gasolene, and most con­ -withdrew 4.40p.m.


I have contacted a few rice farmers and discussed the problem of duty-free gasdene with them..

They agreed· that duty-free gasolene was sold to car owners and that most d. the car Oll'Jle,:& owned gasolene tractors.

On the third point, Dr. Jacob farmers not to plant produce for a­ port, but merely to plant enough for their own domestic purposes.

In other words, they must plant enough to feed themselves.
That is what the members of the Opposition told the farmers all over this country.

The members of the Opposition have failed in their efforts to st.op production, and production is mounting steadily.

Point 5, the tax on tmnato paste!'

An hm.

Member stated that tomato paste is heavily taxed.

Guyana is a country that produces tomatoes in large quantities.

r am from the Coren­ tyne.

and I can tell this House that Corentyne produces a lot<itomatoes.
It is rather unfortunate that we should have to import tomatoes from other countries in order to supp]y our domestic needs.

Such an item should be heavily taxed in order to protect our local industry and to boost em­ ployment in the country and the nation as a whole.

It is also rather unfortunate said that this country is in a state of stagnatim.

What the hon, Member � is nothing but a catch-phrase, .

and he is trying to imitate other irresponsib]e persons.

T o my mind the statement by the hon.


Member has nothing in it.

May I borrow a word from our hon.

and ]earned Attorney­ General I will refer to a catch-phrase which the hon.

Attorney-General called "bubbles" from irresponsible hon.

persons.

To my mind the hon.

Member's statement bubbles.

said so the other day when he refer­ red to the Amendments made by the hon.

Mr. Ashton Chase to the Deten­ tion Bill.

that the Budget is being attacked by the Opposition in such a fierce manner .
I have seen a demonstration ci it Demonstration for what?

I am con­ scious ciwhattheBiblesays, "Father, forgive them; for they know not what they do•.

I am sure that the majcr­ ity of the Indian society will never disagree with me for saying so.

There is also the saying: "A fool is always �appy in a fool's paradise".

who are ignorant certain things, Opposition cause they are really blind.

[Inter­ ruption.]

and the members d.the can tell them anything The hon.
Attorney-General do not understand is nothing but People be­ The fourth point was that there is no production, and production has also no­ dropped.

This statement is thing else but bubbles.

Certain cir­ cumstances are due to weather con­ ditions and scarcity d. water, and no one can be held responsible.

that members of the Opposition toured the whole country and induced Itistrue Some time in 1930 a missionary from India caine to this country and he went about preaching.
He met a Muslim on the Corentyne who told him: "ram very happy inmyreligian; the Koran says so and so".

The mis­ sionary asked him if he had read the Koran from cover to cover.

He said •No".
He said •No".

The missionary adrised him to 2858 Approval of Estimates 23RD JANUARY, 1967 Budget Debate of Expenditure have been able to find means of adding a prospective $5 .4 mil- lion to the nationalrevenue with- out making the impact felt (as in previous years) by the mas- ses - thatis,asfarasweknow, because there are certain items of foodstuffs "hidden away" in the Budget proposals some more investigating.
that need "With the single exception of matches, the cost of which has been increased by half a cent on every box, there has been no other attempt to make the lower income group feel the weight of the new taxation, cept he prefers to reach out for the questionable derived in the taste or prefer­ ence for imported goods."

benefit to be ex­ [MR. BUDHOO] go and read the Koran from cover to cover.

The Muslim attacked the Bible and said that so and so was not so and so.
The Missionary asked the Muslim again if he had read the Bible from covertocover.

TheMuslim said "No".

The Missionary advised him to read and study the Bible from cover to cover.

The Muslim said that it was not necessary for him to read the Bible from cover to cover, as he was very happy in his own religion.

The Missionary said that a fool is always happy in a fool's paradise.

I do not want to elaborate any more on the Budget, but I know that When Budget.
this is a tremendous you examine it, you will see that it is I must compliment a good Budget.

of Finance and the the hon.

Minister cf an independent Gc,:rern...-rncnt ana for introducing such a Budgei which is not harsh on the nation.

4.50p.m.

Guy­ of Minister Mr. Lall: -The-hon� in presenting his Budget for his callous He has delibera­ code numbers.

What hypo­ Finance, 1967, once again exposed attitude towards the working-class people in Guyana.

tely hidden items in the Budget by inserting crisy!
towards the Post, which is friendly Government.

in the is­ sue of January 18 commended the Government very much on the I read from page 3.

Budget.

"Freed� Budget" Let me quote from the Evening The Editorial of the belt to meet "After what the public had been geared to expect - a tightening heavier demands on the purse· string this y.t:ar - the 1967 Budget proposals a sort-of anti-climax feeling of profound relief to the poorer classes."

have come as bringing a' What good phraseology!


The next paragraph states: "It is a high credit to the of the Budget that thel."

frame.rs That was on the 18th January.

carried the same Even­ the same editor, On the 19th January ing Post, with an item with the caption "Up Goes The editor of the The Cost of Living".

Evening Post did not discern thing because the Minister referred to items by their code num­ bers.

Even I was disturbed because I could not borrow an Ordinance see the code figures.
gross dishonesty Minister to I think it was .

on the part of the every-,.

of Finance of Finance.

in preference The Minister said we must change He, too, should support the interval to commodities.

What is a sub­ ci Fin­ for tea?

The Minister our habits.

local commodities foreign stitute ance was drinking tea not coffee, during and yet he tells to change is to be substitute seed?

This has been used by many people in this country.

Even Europeans seed.

There .


has been a 5 per cent increase us \\That oor drinking habits.

have taste on coriander seed, massala.

d for coriander for coriander We are also told to change oor I like to mention should eating habits.

I a few of the items which will have increased_ be substituted is shifted from one person but as politicians duties.

Spices What_ will 1 blame for spices?


The to the other, it is our duty to Approval of Estimates · 23RD JANUARY, 1967 of Expenditure 2861 and see by· the tax has gone up.

scrutinize the increases what �rcentage Every time tlie Minister presents Budget he says that the cost of living has risen by one point.

During the two years that this Government has been in office the cost of living has gone up 7 per cent.

a Let us see what other items have substitutes, lard, lard Tea, tomato paste, been mentioned.
margarine, cocoa powder, sago - what will be for sago?

- canned srup: substituted I know that cralrsrup can replace that - canned peas, canned vege­ c_!nned tomatoes, gmger - .

tables, what is to be substituted - curry powder, preserved fruits, jam, marmalade, can use our own oranges -:- grape­ fruit, pickles, sauces, yeast.

What is to be used in the place of · yeast?

vine­ Other items are baking-powder, gar, cigarettes orange juice - we and matches.

for ginger?

.5.00p.m.


it also taxed the rich, but the rich had to bear more of the taxation be­ cause they could afford to bear it.

Let me read what the President of the Chamber of Commerce said.

[Mr.

Bowman: ft Give me yourviews."]

The hon.

Minister of Finance (Mr. d' Aguiar) helped to make this gentle­ man the President c:i the Chamber of Commerce.
I am quoting from the Sunday Graphic of January 22, 1967: MThe pr�sident of the Geor�e-­ town Chamber of Commerce, Mr. M. B. Gajraj, in a hard­ hitting statement yesterday, accused the Government of pan­ dering to the emotions of the Guyanese public by not telling them why the commodities were being in­ cre_a s c;_d .. cost of imported Mr. Gajraj, himself one of the leading Water Street mer­ chants.
said that not only had there been a rise in the basic cost of foofstuff produced locally and abroad, but alsoan increase rates, and a fan­ in the._[reight tastic rise in the charges made m·ade by receiving warehouses for the slow.

handling of cargo."

There are many others but I do not wish to spend too much time on thi�.

I would say that it is a public disgrace that the framers of this Bud­ get -should -tax sometnmg 1uce - I think,... their -consciences matches.

went out on holiday.


The Minister using the other side of his heart to frame this Budget.

Stockings, wear and brassieres!

What an in­ dignity to the feminine class of our country for this gentleman item like brassieres!

· I am not, for one moment, defending Mr. Gajraj.

It is dishonest throw the blame on vne side.

This Government is also to be blamed because it encouraged ists to milk the life-blood ing class in this country, and today these same people are turning back on it.
Two brothers are fighting now.

to tax an I was pleased to hear the state­ of the work­ under­ of him to was these capital­ Maybe that is why two friends are it of the Chamber of on the war-path.

It is not I who called the framer of the Budget Hitler; was the President Commerce.

Let me read this headline the back of the which appears on Sunday Graphic On January 22, 1967; ftGajraj fires a Budget blast I remember that the other at Govt".

Gajraj had put the screw on us when he was a Speaker here.
When the P.P.P.

Government presented its Budget in 1962 it taxed the poor and ment by the hon.

Minister of Trade (Dr. Reid) that the Government is keeping an eye out for the big fish.

We do not want to hear words; we want to see something done.

Since last year March the hon.

Minister d upahigh­ Labour spoke about setting powered sugar commission.

Soon it will be March 1967 and nothing has up this com­ been done about setting mission.
I admire the Minister for what he said about catching the shark that is trying to swallow the sardines.· 2862 Approval.

of Estima-tes 23RD JANUARY, t967 &,dget Debate �3 of Expendi ture .

(MR. LALL] 1966 CAPITAL ESTIMATES the Budget was I went into a shop and I But let him make this a reality.

On the same afternoon presented.


noticed that the price d. fiour had in­ creased by two cents per pound; the by two price of peas had increased cents per pint; the price of salted fish had increased pound; the price of cwdensed.

milk had incre&Jled by four cents per tin and the prices of sardines, sal"I'on, corned beef and corned mutton had all been increued.

by four cents per "Capital expenditure last $30.4 mn.

- $6.3 year totalled mn.

more than in 1965 and S20.8 mn.

more than in 1964."
more than in 1964."

the Minister In ma.king this reference of Finance spoke pbout 1964.

He al­ ways speaks of 1964 because every­ one knows that 1964 was a bad year.

Why quo�e 19647" Why does he not quote 1961, 1962 and 1963 when he was burning the town?

[Mr. d' Aguiar: "Any year for the P. P. P. is_ a had year."]

I am saying that thesemerchants ex­ prices because of the way are raising the Budget was framed.

When you raise li.cence duties, you are giving the business men loopholes.
You are raising the licence fees by $5, but you are saying, "Boy, you have an excuse.

Raise your goods, the cost of living is going up".

Th.is is what is of Finance happening.

dutiesin res­ has raised the licence pect of shops so that the shopkeepers will have an excuse to raise their If the Government is honest prices.

then it shouid control ail the stapie commodities that are used by the working class people.

He said that in 1966 capital penditure totalled $30.4 million.
This year it is $39.2 million.

It is obvious· that it is $8.8 million more than last year.

If money is· spent in a country T\l"'t\0'1"':AmrnQ th,:r,n nn � rl�·uQilnnTn�nt.

_..,._ - -- .. -- it means that more people have to be us scrutinize the employed.

But let year 1966.

Hundreds of people were The walking the streets unemployment figure in 1960, wheri the P. P. P. Government was in office was 13,797, but at the end of 1966 this had risen to 36,644.

How is it you had this gross unemployment figure?


[Mr. deGroot: rect. "]

These are onlv figures.

The Minister �That is not cor- r�.-.--- r- -o------, ---- without1obs.

The rates of duty on cotton fabrics Now the Cotton".

says "Printed to 15 per cent.

but were increased from 8 per cent to 10 per cent preferential, and from 11 per cent to 13 per cent general.

rate cl.

duty on the same cotton has been increased the Minister Cotton is cotton.

We know who wears cotton.

whether printed or not.


The rates of duty on nylon and other ex­ pensive clothingwere reduced them on a par.

This is how t}le Gov­ ernment loves the working-class people.

This is how it professes to be a working--class When he said that he was spend- ing $30.4 million, that included plenty of the second-hand machines they got from the United States of America, and .

some of the money had to go back to "Uncle Sam".

That is why we had gross unemployment in this country in 1966.
Five hundred petsons were retrenched from the Ministry of Works and Hydraulics and the sea defence projects.

Quite a number of people were retrenched Up to from d'Aguiar Bros. Limited.

the other day three were thrown out to bring Government.

5.lOp.m.

Let us take a look at some finan­ ci.i masquera,ding.

I shall now·quote from page 15 of the Budget Speech: and they said.

"We want GAWU to 4 represent us".

I said., "Peter is· a hard nut to crack.


Only Perry and the other boys can solve the problem with Peter the Great."

23RD JANUARY.

f967 · Budget Debet� 28Q \,J,!..

of� -,_ WNtllaf of Expert(ii ture .

• .

ln 1966.Jm.udreds ofworkannrere thrown GUt by Sandbach Parker.

be­ cauae bwdneu was bad.

Yousaidyou were spending $30.4 mil1im and still money was not circulating in this country.

Where has all this mon ey gone?

The Minister d. Finance put the blame on my unfortunate friend "Uncle KasiJn�.
Be is casting the blame on Kasim in order to create a smoke-screen.

.

But I know that Kasim will still be the Minister of Works and Hydraulics after the Budget debate, and if you do not like it, well, there will be a good coalition between the P.P.P.

the saying, • Old firestick don't talce long to catch?"

and the P.N.C.

Haveyouheard Every year· in the sugar industry thousands of workers with 30 and 40 tbJ'(11117I:!

out d. em­ ·years' service are ployment under the pretext-that they are not qualified.
Time and again I havedrawn this totheattentionofthe Ministry d Labour and Social Spirity.

My patience is exhausted 1967 will be a year d. action.

I mind what happens at the "'in- .

· · · ou s pen".

The poor people are being ex­ ploited day after day and nothing is being done to help them.

Nothing is being done by this Government to show some of its socialist· It like!il a few people in the United Force to lead it by its nose.

This reminds me that the P.N.


C. allowed itself, by the action of the United Force, to change its pdicy frmn a socialist one to a pawnbroker's one.

.policies Mr.Speaker; Mr. Lall: The "Financial Wizard" Time!

purchased Chronicle House.

What happened?

5.20p.m.

Time!

Mr. Speaker.

Mr.

Ally:I beg to move that the boo.

Member be given 15minutea to complete his speech.

Mr. Chase: sec<nded.

Q1189tlon put, and agreecf to.

Mr. Lall: The hon.


Minister of Finance purchased "Chronicle Bouse" and today people with 40 to 50years' service have been thrown out an the road.

What has he done to help these people?

Because of his greed in pur­ Bouse" he has chasing «chronicle made 59 families suffer while he is ham andegJrs.

These at home eating people cannot get even crumbs.from his table.

He encruraged the people society.


Where to jwi a co-operative is the money that thesepeoplelodged with the co-operative society?

They did not get a refund; what they got was retrenchment.

These are things we must expose in this honourable Hruse.

I do not expect a leopard to change his spots but, at least, the over there can change their socialists At least they have vowed attitude.
that they will do everything within their power to elevate the working­ and · we class people of this country, are loddng to see when they will do this.

There is nothingto preventthem from doing it.

If they need our as­ sistance because we know that when we came to thmr as�-t,ogether, .we will be able t o build a working-class para­ dise in Guyana.

we will come to their rescue, totheElectorate.


Mr. Tello: (Deputy Speaker): This Budget is presented with such clarity that already it is supported All I am now doing is ful­ eloquently.

filling my obligation The fact that this Budget waspre­ sented in an atmosphere of peace is undoubtedly an immeasurable achievement.

Every effort had been made by the past Government t.o impress ::ipon the workiug, e1asas ·people that violence is a necessity.
This Goven:unent has completely re­ versed that idea, and certainl y it is hurting my friends across the Table to see that peace and tranquility is possible in Guyana in spite of their rose-to-defend··the-tax 2866 Approval of Estimates 23RD JANUARY, 1967 llidget Debate "-'167 af Expenditure [MR. TELLO] efforts to keep things rough.

At the moment there is peace and tranquil­ lity in this country.

Today the hon.
Today the hon.

Member, who has lust taken his seat, has again sup­ in the ac­ ported the Government of tariff of the principle ceptance for our local industry and protection the hon.

t. My good friend employmen Mr. Lall went out d his way to say that it is right and proper that local industry fortunately, commodities that were protected could be obtained prised that the hon.

Member never heard of plantain children and grand on plantain should be protected.

he was not aware that the flour.


Most of my children locally.

I am sur­ grew up flour.

Un­ to him that these e' .. ..:rid.enrae of certain commodities.

on raw the local th�tth�n,PmbPr� in tariff believe I recall for local industries, .diet, I want to say� lady friends of his who are worried about "'Bras" must be informed that in this there is a local "'Bra" Factory Tell them that the reason country.

for the special concessions is to encourage materials manufacture i\sft:.
... -rther of the Opposition protection that when the very· popular was heavily taxed imported potatoes, in a Budget introduced by the past Government there was a great hue and cry in this country.

Alloo is well known to all of us, and it is one of the most popular It is one d the items of food used in every strata of society, a hue and cry all over the country.

faced with The Jagan Government, to drop was forced this ccrnpunction, I recall the tax on imported :i;>otatoes.
was that this honourable the main slogan was picketed, and "'HandsOff Alloo."

I also recall that arrived a Canadian classified that unfortunate "virtual toes".

here and tax as a pota­ embargo on imported diets in the country.

Parliament Mission so there was of the None d the items that are taxed • to Alloo: today is equal in popularity I want to say that the hon.
Member • Dr. Jagan, then a Minister Government, on alloo, offering as a reasonable excuse that local product- acceptable of ion must be protected, local foods must be fostered, and local every possible farming must have support.

Members opposite, ing the leadership set in 1958, are trying to impress upon us that it is wrong to protect local industry.

of accept- instead they themselves Yet today we find these hon.
consumption and My very good friend is wont to that Let us suppose among the represen­ local employm ent.

faces 8. recession is now trying to classify himself tatives of labour but cannot see the value of ensuring The rice industry and Government impose new taxes for the protection of local industry.

the local and West Indian consumers had given preference and rice produced in India.

have grown into our rice industry export?

Never!

We all third largest saw the value of protection.


We all saw the possibility crop growing into one of our major industries.

possibility to pro­ tries, tect, may move up into the real in­ dustrial strata in this country.

I say there is still that all our minor indus­ which we are now trying to Ilw.1!1a Would the of this peasant rice, the We are inviting con­ went What items do we find taxed?

My Singh, I will refer to them again hon.

Friend, Mr. Fielden into details_.

for emphasis.


sumers to give preference of local products.

What is wrong with is wrong with drinking that?

What good rum, good beerandmakingsure so that profits remain that the burden of the small man may be eased by a higher income tax col­ lection?

in this country to the use t_ Approval of Es ti mates 23RD JANUARY, 1967 lbdaet Debate 28 (9 of Expenditure to encourage .with I rather ; ask agam: What is_wrong taxing imported cigarettes?

see it.
see it.

as the duty' of these labour champions the working­ class people to demand cigarettes made of locally grown tobacco.

know it is their duty to do so in order that the peasants, factories rate rL empkwm.ent grow faster.

I ask: What iswrongwithmygood joining us in this huge "Buy the to The ari_a, have shown a preference for Guyana knowing full well that Guyana was on the _verge rL Independence.
They were fully confident that our leadership would have taken Guyana into Independence pendent sovereignty lations between Government' and populace.

$100 million in 1966, while in 1964 the amount invested I am no scholar would not be surprised this sharp rise in investment world record.

the farmers and the may be benefited and the or student but I to hear that They had no fear to invest as a truly inde­ re­ was $40 million.

with sincere is a They lighters?

with prices That is the Caribbean.


Nothing is wrong with a cent more for a box of friends Local" campaign and advocating use of local matches in preference imported cigarette price of three cents per box for local matches �is competitive throughout fair enough.

paying half matches in order to keep a few hun­ dred giris employed.

the match factory profits, cessiveincome tax.

These are simple facts and some people t ' ·.

d their eyes to them for the t :£.


for the sake of opposition, · · · _ rL ch, ' p· propaganda.

But the facts are always there; however we tr".f to twist them, they remain facts.

then the owners will pay ex­ is making excessive If it is true that rather choose This investment has been made, men with experience and do not These persons as I said, by foreign-owned com­ -panies, knowledge.
make their decisions and fantasies ·so much a desire firm decisions experience ledge· cided to invest to and and out of that know­ and experience they have· de­ in Guyana.

from knowledge to do..

They come from conjecture asmy goodfriendshave in the money in foreign Any man who invests That is a basic fact; that I thought the hon.

Member would have recognized the fact that in order to invest lands one must have some confidence Government and in the people of those countries.

is elementary.
is elementary.

money abroad, or even locally, must have :.conndence;in; the-behaviour _of_ and the behaviour the populace Government.

We have seen that such confidence is not established by writing to the Press or expressing it in conversation.
We have seen that by in-· · this confidence is expressed creased investment have seen -and the records support it - that even persons who live over­ seas, who could have found invest­ with better in­ ment opportunities than thos� offered ducements of money We simply in Guy- of the Here is the trend again.

In 1964, $20 mil­ rose to $25 rL the leadership Is it not an inspira­ rL $15 million in two years.
Is it not a true to our own people, invested foreign companies lion; in 1965 investment million, and in i966 it rose further to $35 million, which, in effect, is an increase Is it not because that we are offering?

incentive the small few who confuse their minds with their prejudice?

tion to them to begin to take a true to have confidence interest in the Government, and to collaborate with it as long as it is in power be­ cause it is their duty to d� so?

\M'.r.

Ram Karran: "Puppet.']


Words like puppet and soonhavelosttheirmean­ ing since they have been used so do often by people who themselves not fully understand their meaning.

[Mr. Hamid: Government.

•1 5.40p.m.

"You were in the interim in Guyana, ··This not.

confidence is expressed we also only by foreign companies; our children will see 2870 Approval of Estimates of Expenditure 23RD JANUARY, 1967 Budget Debate [MR. TELLO] are them.

In and construction, -and but now buildings and construction.
locally.

One to measure see the trend continuing of the easiest industries is building A little while ago there was nothing but space in some places there.

They are not there momen­ tarily; 1960the sum of $14millionwasspent on building something must have been radically wrong with the ensuing Government because we find that, in 1964, there was a terrible slump from $14million to $7 millicn.

some very good reason, the people's confidence was revived and the fi rose from $7 million to $12 million.
What more convincing evidence of foreign want?

and local confidence do you In 1966, possibly for re gu I want to sav that these figures res The full from our local Statis­ gu Bureau.

These are official fi were obtained tical which can always be obtained.

Government, realizing its responsi­ bility to the community,-did1ts share, did its part fully and honour­ ably.

Within the period 1964 to 1966, the Government spent $12 million building and construction, an average of $6 million per year.
[Interruption by Mr. d' Aguiar.]

of Finance has said that the figure has gene up by $18 million.

He has not said anything to discredit ·I have said.

All he has said is that I have not given you the full story.

The hon.

Minister what on ics of economic Despite this rapid spending of money and acceleration growth d the country, there was no impact on consumer prices.

Statist will prove that there was a constant rise annually.

en consumer cost.
en consumer cost.

We find that, in 1962, the figure was 4.1 per cent higher than in 1961.

In 1963 it was 1-� per cent higher than in 1962.

In 1964 it was 0.8 per cent higher than in 1963.

In 1965 it was 2.2 per cent higher than in 1964.

In 1966 it was 2.8 per cent higher than in 1965.

These are normal rises but gu is the fi -what was abnormal, -.J1 and pleasingly re that the hon .

attainments abnormal, Member Mr. Singh quoted that the natimal income per capita rose frcm $400 in 1964 to $4 70 in 1966.
These are creditable and achievements and, indeed, it is dis­ appointing that hon.

Members cannot see the value of these things and enlighten those who need enlighten­ ing.
I make these points simply tc clarify what this honourable HouS!t is fully aware of and to enlighten th., Members of the public who have bee1 induced story to accept a deceitful Further to the Government's a light - this is an outstanding and credit impressive achievement; should shine perpetually - in the fact that, in two years, this Government raised the sum of $21.

5 million locally thrrugh Treasury Savings Certifi­ cates and debentures.
Do you know what that record is equivalent is equivalent .m.enLof twenty-five efforts.

Imagine is achieving Governments took twenty-five to accomplish!

"That is perfect responsible that a Govenjpe i in two years what'lth year rubbish."]

for your ignorance.

.

[Mr. Rl:llll Karran: to the collective a�v&­ -years' pra,ious I am not to?

It in the confidence I want to say - and the hon.


Member knows this - that what this figure further represents is this: this voluntary contribution, this voluntary investment of the­ Government is equivalent to more than four times the amount that th� last Government sought to raise by legislative compulsion.

What is another pleasing fact should please fact that, created ment and the investment organizations.
of this country, Caribbean, interest This has resulted Never in the history or of any island .. have _workers� been _ so in this investment, we have of workers' invest­ ed in voluntary in increased my good friend is the to me and what of workers a record in the em- investment!

·211L _.,,,,roval of Estimates 23RD JANUARY.

1967Budiet Debate • qf Expenditure 2873 ent.

[Interruption.]

Do you un- <>n cmunercial p d tand the meaning a these word!?

This is what has resulted.

In 1965 - !


: do not support my hen T statistics Friend.

These are facts and I would prefer to accept these official figures than those manufactured at a moment's notice- Mr. Sancho: I beg to move that the hon.

Member be given an extra fifteen minutes.

Mr. Speaker: e. Tim , and industrial wages.

5.50p.m.

Mr.Blair seconded.

Que8UC111 put, and agreed to.


The figures as officially stated are: Mr. Tello: I was on the verge df Increased employment­ Government '1964 _ 13.6 thousand 1965 - 16.5 The general figures are a little more sought and I deliberately impressive, the 1963 figures because the hon.

Member across the Table accused us of quoting only the 1964 figure, and not the previous year's.

ccmcluslm.
ccmcluslm.

In 1965 wages collected by thew orking-class people of Guyana rose by $35,000 per week and by about $1.68 million for a 50-week year.

In 1966 wages rose to $57,600 per week and about $2.88 D_lilli<n for a 50-weekyear.

The amount collected for the two years rose to $4.

56 mil, lion.

This' is a tremendous achiev&­ ment for a working-class Government.

Th..is is e.faithfu!servicetothewarkers d Guyana, all resulting from proper budgeting and prop�planning.
General 196 3 -121 .9 thousand 1964 - 122.7 9 1965 - 128 1966 -132 9 es I h�ve just �ven repr&­ of 6,000 in 1965 and increase 000 in 1966.

• · · The year 1967 looks rather promising Government expenditure for: for we see that there is irrigation Drainage, and agriculture ·Roads, including Atkinson $.2.lmn to Mackenzie $9.5 mn.

$3.4 mn.

$3.7 mn.

steamers Railways, Atkinson Several Surveys Housing and building Runway and land all avenues de,velopment of employment $1.1 mn.
Out d. all this voluntary subscripti<m, and the proper management Budget, this happy situation has arisen.

of the Mr. Luck: This .

Budget, as one may expect, reveals no cdierent poli­ tical philosophy, nor does it follow the strat.egy so brilliantly laid down by Sir Arthur Lewis in the British Gmana (Gu,ana) Development Pro­ gramme 1966 - 1972.
Rather, it re­ veals the vicious in-fighting that has been gdng on in the Government between two coalition partners d. op­ posing political philosophies, and d. On the one hand opposing interests.

we have the Leader of the United Fcrce pulling and tugging for his wealthy friends, and on the other hand we have the P.N.C.

demanding that vast sums be spent by the Gov­ ernment on various things, for the P.N.C.

would wish to appear to be doing domething for its supporters.
We find that while the past Gov­ increased ernment had resisted and Salaries in the Civil Service, Government agreed to step up wages from $3.04 to $4 a day.

That in­ crease had a tremendous influence wages this The hon.

Minister of Finance in presenting his Budget started dfwith an examination of the economy and what this Government has beenddng.

He has painted a very rosy picture of the economy as it is, and as it has been functic:ning.

The impression he would like to c<nvey is one d wise, .
:.-··· -l A,,,,roval of Es ti mates 23RD JANUARY, 1967 Budget Debate of Expendi tu re � '.

P, LUCKl fmances.

indeed brilliant management But I would of the usefulness and the Minister careful, of the Country's wish an assessment Government of this Finance, after boast of fame, figures.

�ide fr<m the 1962 and 1963rioting, .

Speech; 1s on page 16 of this Budget it reads:-"The response to the Gov­ of I have examined the His greatest panies on the hon.
Minister ance's much vaunted ings Certificates is 14.5454 compound, repercuss the gravest fmancial It is a formula for in this country.

bankruptcy.

Treasury Sav­ t.o per i:ent .

and this must lead i-ons In this Budget Statement the hon.

efforts to raise local ernment's loans is very heartening.

In the two years 1965 and 1966, $21.5 mr,.


was raised by the issue of Treasurv Savings Certificates and dcbenture.s more than in the past 25 vears was rai·,ed b•; ·; oluntary neariy four timf"s the amount :-aisee byforceu 1962 and 1963."

subscriptions·, subscriptions and in of Finance gave us carefully Minister chosen figures and fraudulent figures, and on all points he gave us a false as to how the economy has impression under this Govern­ been performing ment.
At page 14 of this Budget of Finance would the hon.

Minister capital have us believe that inflow in view of the from trade will increase sharp rise in 1966.

The figures $15 million is fraudulent.

Tello used the correct Ec�momic Survey of Guyana, 1965, by this Govern­ which was published ment shows that for the year 1964 the investments in this country amounted $15 million.

But why take th for 1964?

country million.

J � to .· in 1960 amounted The investments · · · .

The hon.

Mr. figure.


The to $20.5 million and not d. 6.00 p .. r I have sought to calculate the yield, figures, before tax, rate of interest, terms on which these loans have been ma d:, an?

I have brought _ to show that the which are irrefutable, Certificates T:-easury Savings �o a person who pays 70 per cent interest at the mcometax, compound rate of 26.6 per cent.
It is a very to those who know simple calculation and those who do not mathematics, know will accept from me that the effective to a wealthy person who pays 70 per cent income tax is 26.

6 per cent.

'Insurance companies, which have money to invest in Gov­ ernment Treasury Savings Certifi­ cates - one assumes that they are payinginccme c� pound interest.
genngfigures, insurance private pose d a mortgage per cent when they could get from this Government, before tax, interest at the rate of 14.5454 who want to work out this calculation say with can do so.

[lnt.erruption.J I out fear of contradiction fective tax - will get 14.5454 These are stag­ investor money.

for the pur-· rate paid to insura.IJ.ce that the ef­ com- andonewonderswhich company would lend to a or companies per cent!
Those at the rate d 8 At page 5 of the Budget Speech of transmittal by himself," and" one witten bv Programme rose from $300 million Arthur Lewis is -acco�­ the hon.

Minister of Finance says that in production in 1964 to $360 million in 1966.

The Development Professor paned by a letter the Prime Minister must assume that it is an authori­ tative document published that the pr<> Government.

in-1959-frcm duction·-figures-rose- $219 million to $263 million.
In 196f it was $289 million; in 1962, with Mr. d' Aguiar and Mr. Burnham mar­ and the city burn­ rying in the street ing down, it was $307 million.

was the consequence There was inevitably a decline production.

It reveals by this What ci this marriage?

in What is the truest indication of the economic health of this country?

Approv •·of E,g,mdi ture , .. .


al of Estimates 23RD JANUARY, 1967 Budget Delete 2877 regard to the fact that we level cl production that natimal In- " embark on heavy investment come per head cl population � that the machinery from abroad, risen to undr.eamed cl heights.
He cl our pros- Arthur Lewis, a very sound authority which is an integral part in this investr has given national inccme as $400 ment, can only be bought from the per head cl population in 1964 and surplus in our exp<rls over our inl- $470 in 1966.

In a document by Sir ports, the truest indicator perity is in our export figures and our m the ecmamic position - and su� visible Minister� of-Finance -given -us any self _ the figure cl $459 is given per figur e that we can go on?
He has head of populatim in 1960.

The hoo.

not done so, but I will giye this Minister Hwse scme figur es.

balance of trade.

Has the hon.

ported by the Prime Minist that it was $400.

The national In spite of the boasting cl this inccme was not $400 per head of Government as to what has been populatim but $459 in 1960 and this done since 1963, I have to point out figure appears on the first page cl that the figure fer export in 1963 the document.
In 1961 the figurewas was $175 million, whereas in 1966 $4 77 per head.

the figure fer exports was only $180 Inasmuch as my hm.

Fri end bas million.

&rice in our trade, that is, the excess I am quoting from page 1 cl British ._cl ex.ports over imports.

It is frcm Guiana (Guyana) Developmen t Pro- But let us consider the bal-just awakened, may Iremindhimthat cl Finance believe this excess that we have to finance gramme (1966 _ 1972) under the our development programme.

What heading •Ecmomic Review9?


Gross er him- would have us h figures for the year 1961?

national product at prices cl 1960 .

lus was $1.

7 million.

[Mr. was set down as $459 in 1960, $477 in 1961 and $496 in 1962.

Yet the Minister cl Finance claims that, at you ] I am quoting from the Eco- •Frcm what are Survey of British Guiana, 1965.

$4 77 per head in 1966, this Govern- miracles.


I am aware that persons can arrive let us call it "Thomas' ment is performing Far brevity Book" and call the ot..11er one "Sir Arthur Lewis' Bode".

I was saying that in 1961 the surplus was $7 mil­ lion; in 1962 it was $37.4 millim; in 1963 it was $52 millim; in 1964 it was $13 million; and in 1965, the year in which this Government took office, it was $17 million.
Why this was so we do not know for sure, but one tbhg is certain and it is .that there will be a staggering deficit in our balance d trade.

Earlier I ad­ verted to the figures used by the hon.

Minister cl-Finance, that scme were carefully chosen and and I said at different figures.

The hem.

Mem­ ber, Mr. Fielden Singh, quoted mm Kundu, who said that the nati<lD81 incmne per head was $430 in 1960.

He was quite right that Kundu said so.


Mr. Singh went .loo��-say that national income last year was $4 70 per head.

What the hon.

Member Mr. Singh did not mention was that Mr. -Kundu said that the figure $413 was a figure arrived at after correcting the calculation of the 1959 prices.

That made a substantial difference in the figures.

� e were wrong..p.m. ·tn a statement made on page 6 of.

the Budget Speech.

the hoo.


Min­ ister cl Finance would have us be­ lieve that, due to the policies of the Government, there is now such a high The statement by the Minister d Finance, in his speech for the un­ initiated, - those who do not under­ stand these matters - about the buoyancy in revenue as an ecmonlc _incil,�tor.

was impressive.

Revenue, • 2878 Approval of Estimates 23RD JANUARY,.

1967 Budget Debate .,.,,, ' of Expendi ture know of a prospering I [MR. LUCK] he claimed, was impressive.
Revenue, he claimed, was buoyant; the economy was prospering.

I of one good indicator economy - the level of income taxes.

That is the true indicator in this country.

means only this: we arelivingbeyond our means.

That is what it will mean until this Government goes out of office.

The rise in customs revenue only means that people are consum­ ing much more than they used to would be consume.
A true indicator _the gross collections A rise in customs revenue in income tax· Using the figures given by the hon.

"1.

Revenue surpluses for contribution ta!

needed for th in-" ancing of the p lie sector.� to the c j. i • I by this Government.

The healthy position There is no hope d. revenue sur­ left by pluses.
the last Government has in one year been overturned Whatever might have been its faults, the previous Government Public Treasury This year, in addition to the indebted­ ness of $21 million on Treasury Cer­ owes to the tificates, banks, not of this country, butforeign banks that operate in this country, $50 million and $20 million to a bank that operates here.

left in the the sum of $5 million.


the Government seems to be that of Finance, I come to an Minister opposite conclusion, that is, that Guyana is in serious economic trouble.

We are living beyond our means, importing more than we export.

In these figures I do not even include thevery large amount that must"be paid towards the national debt - our external debt burden.
I say it here: this country already in two years, under this Coalition Government, has altered the pattern offrugality, d. careful Government expenditure.

That pattern has been altered to one of public extravagance, ostentatious expenditure, yond the means of the country.

This must some day cause the gravest disaster for this country.

I want to say that there is no country substitute in any independent for hard work.
The policy of this Coali­ tion Goverr.llilent should the United Force supporters of the become rich and supporters P.�.C should idle p .

with the-gr: their-idleness --- .

· respect-to everybody, this is .

see with my own eyes.

I would hard work Rather than pain g picture of 9..n economy that ing, let the true facts be presented, namely, that our country is pauper­ ised and we must work harder.

a pattern of living be­ isf!ol.lrish­ 6.20p.m.

but be _ i .

· ; Consider the effects of this.


Con­ If�e look at the current expendi­ ture - and this is a vecy vital figure - we see that in 1964 current ex­ rose from $70 million to penditure $90 million.

Now, I refer again to the document I have mentioned, the British Guiana (Guyana) Develop­ ment Programme, and I shall quote from the letter d transmittal signed by the hon.

Prime Minister in the month of February, 1966.


This is what he had to say: ¥Consequently, the Govern· ment has decided to emphasize and encourage the following bas e s of national reconstruction': _ I am_ entirely_ in of our econany and realis- sider the effects of having a realistic assessment tic plans for improvement in the country.

One way out would be re­ venue:_surpluses.

favour of that.

Since I am sure that l will come _µnder the time limit rule, I ought to press on.
How could we have created revenue su,rpluses?

One would have, as I have said, sfri ous, economies in Government.

*" Another sound proposition would the expo11 tax The bauxite industry in and for over a score have been increasing on bauxite.

this country is well established has been established Z 80 Approval of Estimates 23RD JANUARY, 1967 Bud,et Debate2881 of Expenditure hen Minister ears.
The Jamaica gets more from her ·te company, which is newly e� growls, gets more lished, than this countrywhichhas for Surinam 1,ad a bauxite company_operating _ score of years.

money per ton from the bauxite in­ dustry, putting aside the vast hydro­ pro­ electric project, the Brokoponds ject.

I speakon theauthorityofpeople who know.

I say without fear of con­ tradictioo that the bauxite can carry a much heavier has been the advice It is a highly profitable industry.
is also true that we are bedevilled with too many imports, dprables cithese imports.

industry tax.

This of all the-experts.

form a very large percentage and consumer It onhire_:-purchase One wonders all the more when such a Motion was proposed by the hon.

Member Mr. Chase, passed by this Assembly a year ago and nothing the .re­ has yet been done, because credit, striction wise, good and necessary as that measure is would tread on the corn of the weaithy .supporters of the United Force.

Ifthe P.N.C.
Ifthe P.N.C.

by Public benefit to no one - many ri.

my friends in the P.N.C.

work in the housing schemes and they say that they do nothing all, day :..... then the U.F.

must get its benefits too.

That is the nature of this Government.

can besupported which yield W arks scheme� One wonders why this Govern­ hire­ hire-.

controlling ment has not as yet introduced purclu1.1:1t: purchase lt:gi:sl&.Ll.011 --This credit.
d be introduced gulating t of hand, and also for restrict­ hire-purchase for two reasons: which has -legislation .

e-purchase e who buy on hire-purchase wonders why hire-purchase firms from robbi!

}g terms.
}g terms.

legis- proposed and The most important question of all is this: If the Government is to restrict its efforts at infrastructural development and if it is to gather to itself all available as it must, if it pays interest ruinous rate <i14.54 per cent to in­ surance companies and other com­ panies, from what source will the capital come to take advantage of the infrastructure now being created?

local capital, at the ; ... ..ion has .


net been passed in this House, and one's all the more when wonder is increased one recalls - that, in the life of the the hon.

Prime Government, previous Minister a Motion introduced himself calling for hire-purchase legislation ADJOURNMENT Resolved, •That this Assembly do Adjomn edaccordinglyat 6.30p.m.

now adjourn until Tuesday, 24th Jan­ uary, 1967, at 2 p.m."[Mr.,Bissember.j