Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698073835843.pdf (Guyana)
THE PARLIAMENTARY DEBATES OFFICIAL REPORT [VOLUME I] PROCEEDINGS AND DEBATES OF THE FIRST SESSION OF THE· FIRST PARLIAMENT OF GUYANA UNDER THE CONSTITUTION OF GUY ANA, 33rd Sitting Monday, 16th January, 1967. fhe As�e.ibly met at !p.m.

Prayers CMr.

Dep.atv S,ealfer ift, t!&e ch'Oi(] lfts Honur the Depl dpeaker, Mr. R. C. Tello Ministers .
L. F. S. Burnham, Q.C., The Honourable Dr. the Honourable The Honourable The Honourable P. A. Reid P. S. cl' Aguiar N. J. Bissftlber -Prime Minister -Minister of Trade -Minister -Minister of lnfofTIJation ,(lead,, of Finance R. E. Cheeks The Honvurab!e Ille Bo.,ourahle E. F. Correia The Honourable L. John Th"r, Honourable R. J. Jordan of the House) of Local Got1enuaeftt of Coaafmic ationa -Minister -Minister -Minister of Home Affairs -Minister of Agriculture and The Honourable M. Kasha The Hono11rable C. A. Merriaaa Natural ,Resourcea ...;.IJinister -Minister 8e�ty of Wor.h and Hydr« of Labour and Socio -Parliamentary Secretary, Prime Minister's Office Min­ Secretary, -Parliamentary istry of Labour and &cial Security -Parliamentary Secretary, Min­ istry of Education - Parliamentary S_ecretary, istry of Local flovernment Secretary, -Par(ia.mentary Min­ Min­ istry of Works and Hydraulics Secretary, Min­ -Parliamentary istry of Finance Paiiaaerway &cretariea ·- D. IL tleG ... t ... &.
·-- ._ 0.

&.

Oarke ._ P. O..eu ._ J. G. Je-..i•.

0.

B. E., J.P.,.

._ W. A. Blair .. J ....... • W. G. CariaRlaa ..._ L G. IL Fieltl-m41a, .. D-... nj ._._ p..._ Nr.. T. A. Sadie ..._ ·-... Siagla ._ J.a.--ra..u ae.r.

A. IL Ttwtau 1lr.

B. M. S. .. arten.

J.P. llea'1era of the Opposition Dr. C. IL Japa.

Leader of the Oppositio •- A. Dase ... ...

I[ ..... ._ L Ouuisiagla .. ·-J.

.. Dallltaril Dr- ai.tes Jar:e•, Jr. ._ 1::-V. ll•es Dr- F. B. W. llaasal!Dye Mr. &M. G. Wil;.. •-M. B-ill, J�P.
Mr. Mr. Mr .

Mr • Mr. Mr. Mr • Mr. Mr. J. R. S. Luck D.C. Jagan H.Lall M. Khan, J.P. Y.Ally R.D.

Persaud M.Poonai E.M. Stoby S.M.

Saffee a.A of die National Assembly - Mr. F. A. Ne.rain � Ciak of the National Assembly - Mr. M. B.

Hen!)

Absent: Bis - tile lipeahr, Mr. A. P. Alleyne 1'lie .....,_Me llrs.

Tlie lloa,waWe -W.-0.

R. -K«tdall, C. B. E., W. Gaskin, Minister of EducatiCll lliaister of Health .nd Housing TIie a-.Ye Allua:aerGaeral S. S. Ramphal, C. M. 0., Q.C., and Minister of State llr.

B.
B.

B. Baa -· on leave llr.

L. Liade - OIi leave Dr. s. A. llaajmll llr.

II.

....... _ 2717 �NOUNCEMENTBYTHF SPEAKER Leave to Member Mr. Deputy Speaker: Hon.

Mem­ bers, Mr. Benn has been granted six weeks' leave as he will be out of the country.

PRESENTATION OF PAPERS AND REPORTS The following ( i) Constituiional Papers were laid: Offices {Re· effect, the Governor­ take immediate General has signed a Provisional Col­ lection fo Taxes Order (No._ 4 of I967i Rills read the F'h·st tim ,:,.
PUBLIC BUSINESS M<:YrION APPROVAL OF E�TIMATES OF FOR 1967 EXPENDITURE muneration of Holders) Order, 1967 {No.2) made under section 5 of the Con· Offices {Remun· stitutional eration of Holders) Ordin­ ance, 1962, by the Minister of Finance on the 7th of January, 1967,andpublish­ ed in the Gazett on the 14th ofJ anuilry, 1967 - (ii) Estimates of Revenues and ·Expenditure for the year 1967.
In terms of Article 80 (2) of the Constitution, the Minister of Finance signi­ fied that the Cabinet had recommended that the As­ s em blyshould the Motion for the approval ofthe Estimates ofE·xpend­ iture for the year 19 67. proceed upon (iii)Customs Duties (Amend­ ment and Imposition)Order.

1967 (No.

3) made under section 8 of the Customs Ordinance, the 15th of January, 1967, and published in the -Gaz­ ette on the 16th of Jan­ uary, 1967 - [Minister Finance.]
Chapter 309, on of 2.10 p.m. INTRODUCTION FIRST READING OF BILLS The Minister of Finance Mr. d' Aguiar: I beg to give notice of the introduction following Bills: and First Reading of the {i) Tax(Amendment)Bill,1966 (ii)Tl\x (Amendment) (No.l) Rill, 1 !167 !ff order that the provisions of the latter Bill relating to excise may BUDGET SPEECH of Whe,.as the Constitution Cuyana requires that estimates of the revenues ·and expenditure uf Guyana for any·financial year should be laid before the Natj­ ·onal Assembly not later than sixty days after the commence ment of that year; And wher�as the Constitution also provides that when the esti­ mat.e1 of expenditure have·been approved by the Assembly an Appropriation Bill shall be in­ troduced in the Assembly for the issue from the providing Consolidated Fund of the sums necessary to meet that expen­ diture; An<l whereas estimates of the of revenues and expenditure Guyana for the financial 1967 have been prepared and laid before the Assembly on 16th January, 1967; Now, therefore, be it resolved year estimates National Assembly ap­ of expendi­ year 19·6t� one hundred and ten six hundred and forty­ that this prove the ture for the financial totalling million, five thousand, nine hundred and five dollars (excluding million, six thousand, five hu.ndred and nine dollars which by law) as detailed therein and summarised in the undermen� tioned scheduie, it is expedient and to make further provision of finance.
in.respect nine hundred and fifty­ is chargeable to amend the law and agree that seventeen Mr. d' Aguiar: The budget I now present to this Honour- ble Assembly proposes expen­ Jiture of uearly $129 mn.

on current a"Il{i capital services.

is the first independence budget.

It 16TH JANUARY, 1967 [MR. D' AGUIAR] It reflects the full costs of run­ ning the government ol a s ov · We are not mas­ ereign nation.

• �rs of our own destiny .. We H reiy on ourselves to im• r, .. ,.

,: our lot.
,: our lot.

We have a good c,, ,::ry with many natural ad­ vantages.

We have manyfriends who have generously demon· s tra ted their willingness us.

But it is only by helping our selves that we can put this gen· erous assistance to good use and achieve a better life.

This in­ but no­ volves som� sacrifice; thing worthwhile can beachiev­ ed painlessly.

to heir We have made good pro­ gress in the past two years.
Peace and confidence mthefu, ure have been restored, Ca pita 1 inflow from abroad, which is a m easure of the confidence the outside world place� in our fut­ ure, has expanded1irom aoout $15 mn.

in 1964 to $30 mn.

in 1966.

This year it shouldrise to about $50 mn.

With the help of these funds from abroad and our owr, savings, gross domes­ tic investment - total invest· ment in the country - has risen from about $55 mn.

in 1964 to nearly S 100 mn.

in 1966.


In the past two years the Gov· ernment has raised $211/2 mn.

to trom vountary subscriptions its issues of Treasury Savings Cc;rtifica tes and debentures - more than was raised in the previous quarter of a century and about four times as much as was raised by forced sub­ scriptions in 1962 and 1963.

The response of the revenue has been remarkable.

It har grown by $16 mn.

(2 5 i) in the last two years, of which by far the greater part ( S 131/2 mn.)
was due to the bouyance oft he econ� omy; $21/,rnn.

er taxation.

The Government's revenue - the ordinary reven­ ues from taxes, fees, property and enterprise has grown �uu as fast as the national in­ eom,e.

came from high­ But we have beentrying,es­ in th.e past year, to peeiillly take more out of the economy than we have put in.
We are tending to live a hove our means the economy an Demands !or a standard oMiv­ ing higher than the country ca affora at present can gain us � nothing, but can frustrate our e · forts to develop realise our aspirations for a bet· ter life.
Interruptions of produc­ tion arising from wage demands which cannot be supported at the present level of -producti­ vity will defeat the whole scheme of development by wasting pro­ ductive capacity and discourag­ ing the inv es tmen t withou tw hich, there can be no prosperity.

The expenditure of$129mn.

the budget calls for, is $13 m. ri.

more than we spent last year, and nearly $50 mn.

more than we spent in 1964.

The greater part of the increase - nearly $30 mn.


- since 1964 is for de­ velopment ·works ·and services.

A further $4 mn.

of the increase goes indirectly into development debt by way or the additional 1964 to charges incurred since support ·the borrpwing for deve­ lopment.

Fortunately, we have been able to borrow on.better terms recently thus· lightening the burden of these debt char­ ges.

The costs of independence have added something likeS6 mn to our expenditure.
The money that Govern­ ment spends is coming out of the pockets of all of us.

We must see that it is spent effec­ tively and economically for its purposes,so that we· as a com­ munity get full value money.

This is the purpose of good government.

for ·our RES UL TS AND PROSPECTS Production (as measured by the gross domestic product at factor cost) in Guyana in 1966 totalled a.bout S360mn ·S60mn or 2oi more than in 1964.
Th'.ls in spite of lower average e.x­ port prices for sugar and rice, which account for a fifth of the pr!

)duct, the country's produc­ tion has been rising since 1964 at the rate of about 10 % per annum in value.

With the t··m· ble in world· sugar prices, ports fell from a peak level o: $175 mn.

in 1963 to $167mn.

in 1965.

But in 1966 they reached their highestlevel/$180 ex­ Budget t6ll( JANUARY, t9b7 Speech 2721 inl 9b6 J mn.)

in spite of the continuing low level of· sugar prices.
This to the success is attributable ind us try.

With bauxite-alumina the assurance iriven by this 'Government w.h .. n ft assumed · office of a stable bas is for de­ velopment, the industry has in­ creased its ann.ual production by $20 mn.

(30%) since 1964.

The full fruits of the develop­ ment thus initiated garnered until after 1967, when, ·with the development of addi­ tional calcining capacity, pro­ duction should rise by a fur­ ther $10 mn.

per annum.
per annum.

22 % of total expenditure was $40 mn.·or 75% higher than in 1964, of which the increase in Government · investment ac­ counted for about half Foreign­ owned companies invested $35 mn.

in 1966 as compared with $25 mn.

in 1965 and $20 mn.

in 1964.

Private building and con­ which by 1964 had struction, fallen from the high level of $14 mn.

in 1960 to $7 mn.

in 1964, had expanded by 1966 to$15mn.

Government building and con­ strucit'ionin mn.

higher than tu 1964.


1966 was some $12 will not be This higher level of produc­ tion has raised local incomes (the gross national income and product at factor cost) by some $60 mn.

- 22% - since11964.• National income per head of population rose from $400 in 1964 to $470 in 1966 - an in­ crease of 18 % .

But local expenditure· (do­ on goods mestic exQ._enditure and services at factor cost) on public and pr:ivate consumption and investment has expanded even more - by about$100mn.

· (a third) since 1964.


The gap of $40 mn.

between income and expenditure was covered main­ ly by gifts, loans and direct in­ vestment (capital inflow) from abroad, but partly by 1unning down our reserves of foreign ex­ change (the nation's bank bal­ ance).

Both in 1965 and 1966 the nation had to run down its reserves of foreig,.

exchange �n prder to finance the heavy de­ mand for imports.

Looked at from another view­ point, the increase in our an­ nual consumption and invest­ ment· ($100 mn.)
since 1964 could not be supplied entirely from the increase in our own resources (the increased pro­ mn.).

We had to duction ot($60 make good·· by the deficiency expanding our imports (ofwhich commodity imports $50 mn.

to an all-time 1966 of $200 mn.)

beyond the.

level we could finance from ex­ ports and capital inflow.

rose by record in We have been spending heavily on development.

(r,early $100 mn.
(r,early $100 mn.

or investment Gross This is a picture of an econ­ agricultural omy which, :iespite the set­ backs of low world prices 'for its principal crops, sugar and rice, has neverthe­ less stirred itself from the dol- .

drums of 1963 and 1964, and by dint of hard pushing ·by the Government (which has expand­ ed its expenditure, the economic, istrative for an independent $35 mn.
or nearly 50 % since 1964), and the resurgence and privr te invest­ confidence ment, is forcing the pace of its development strains ands.tresses mainly on social and admjn­ with the inevitable deveiopment required G ·uyana, by of on consumption, im­ on non-essential But since the slack in the economy at the beginning of this effort has now been fully taken up, we can only main­ tain this increasing tempo of development by holding down expenditure especially ports.
We cannot take out of the eco�omy more by consump­ tion and investment than we put in by'.production, or can en­ ti-:e from abroad.

We can con­ sume more only if we produce 'IIOre; we can earn more only if we proc!uce more.

To think otherwise is to delude ourselves.

To ab�orb our unemployment and to raise the community's standard of living we must in­ vest heavily.

to be achieved, consumption must be restrained directed in such a way that focal production benefits.
country must increase its pro· iuction to expand employment \nd reduce the level of its im- If this objective and must be The is 2722 16TH _!ANUARY, t967� Speech 2723 [MR. D'AGUIARJ ports.

When we spend we must think not only of what we can get for our money but also how much we can increase our earn­ ings by buying local products in preference to imports.

Keep th, money at home where it can multiply and fructify.

If we can moderate our pro­ pensity to import, the ourlook for next year is good.
There should be a moderate rise of perhaps as rrtuch as $10 mn.

in exports.

The inflow of capital from abroad to help us in our development effort could be as much as $20 mn.

higher than in 1966.Itshould therefore bc_poss­ ible to redress any imbalance payments.

in our international But all will be lost ifweas work­ ers or consumers try to get more out of the ecomomy than we are putting in.
The mission from the lnter­ na tion Mone try Fund which re· cently exa.mined our economy in its fiscal and monetary as­ pects was satisfied that it was in good health in spite of the strains and stresses to which I We must keep i1 have referred.

so.

1966 REVENUE AND CURRENT EXPENDITURE yield to the in­ Indeed, more than estimated.

if the United "Kingdom grant is excluded, the actual yield ( $8 3 .3 mn.)

was $4.5 mo.

(nearly 61,) higher than the projected ($78.8 m:,.i and $6 mn.
(81,) higher thar: actual receipts in 1965.

At $32.5 mn.

import da­ ties yielded $1 .3 mn.

less than the estimate ($33.8 mn.)

and $4.5 mo.

more than the actual receipts in 1965.

$2 .5 mn.

of this increase over the 1965 yield must be attributed creased rates of duty introduc­ ed with the last budget;'the maining $2-mn.

(71,) reflects the growth in the value of im­ ports.

The yield ($9.5 mo.)

of excise duties was higher than expectations mn.

or nearly 15'1,, higher than in the previous year.


The other major element of the revenue - income tax - yielded $25 mo.

about the same as in the pre­ vious year, and $4.5 mo.

high­ whc-n the er than expectations budget was framed.

The other significant deviations Approved Estimates relate the United Kingdom grant and Currency Board profits, together show of $1.0 mo.

Both are subject to adjustment.


from the to ($9.2mn)and$1.1 a net reduction which re­ The revenue has been re­ The 1966 a special including of $0.8 mn., including The 1966 Estimates pro- of ided for current expenditure $84.,2 mn.

It was estimated that the .cevenue, budgetary grant from the Uni­ ted Kingdom G overnment .

of $4.8 mn., would just about co­ ver this expenditure.

Revised Estimates indicate su·rplu1 only $3 mn.

of the United King­ dom budgetary grant.


Indeed, sin.ce the revised estimate of the surplus is based on a re­ definitio n of the ordinary re­ venues to exclude capital rec;eipts of $0.6 mn.

formerly ti:eateda1 current receipts, the result for the year is likely to be $1.4 mn.

better than the foreca It, despite the fact that United Kingdom support was $1.8 mn.

less than estimated.

markably bouyant since 1965.

Between 1961 and 1964 it had risen by only about$8 mo.
(131,), the bulk of whicli was attribut­ able to higher rates of taxation.

Between 1964 and 1966 the re­ venue (excluding Kingdom budgetary grant) rose by $16 mo.

(251, ), of which only $2 .5 mo.

was a ttribucahle to higher rates of taxation.

tween 19.64 and 1966 the G.D.P.

at factor cost rose by 201,; the -the yield of revenue (excluding higher taxation io·troduced in 1966 and the United Kingdom budgetary grant) rose by the same percentage.
is thus fully respoaawe to.cbang­ es in the national incom e. The revenue the United in 1966 Be­ a Current expenditure is now estimated at $85.4 mo.­ only $1-2 mo.

more than the Approved Estimates despite supplementary mn.

Thus, the greater part of the supplementary provision provision of$6.3 The actual'yield enue (86.3 mni per the Re­ vised Estimates) was .$2.7 mn.

of the rev­ 2724 Spee-::'- 2725 - $1.1 in 1965 was offset by savmgs elsewhere.
The actual expenditure was $82 mn., so that expen­ diture in 1966· ($85.4 mn.)

was $3.4 mn.

higher than in the pre­ vious year.

The significant in­ creases on 1965 expenditure were: under Public Debt mn.

; under Refunds of Revenue - SI .3 mn.

; under Defence - $1 .1 mn.

; undc Police and Pris­ ons - $0.6 mn.

; under Agri­ culture - $0 .6 mn.

; and under External Affairs - $0.3 mn.

There were substantial reduc­ tions under Special Service Unit and General Emergency totall­ ing $0.8 mn.
; under Transport and Harbours - $0 .8 mn.

; un­ der Works and Hydraulics $0.4 mn; and 1,1ndcr Revision of Wages.

etc, - $0.6 mn.

- 1967 CUllllEN T EXPENDITUllE The Estimates of Current Ex· penditure now presented to this Assembly call f or expsnditurc of $19.4 mn.

- $4 mn.

higher than the R.eYised Estima tea for 1966 anti S7 �• Dnl.

high.er tha_n the aetaale:a:pendiu&rc ill 1965 of the con­ in 1967.

Public debt charges account for SI .5 mn.

of the incrca_sc $4.0 mn.


on 1966 expenditure Debt charges have grown 'from nearly $6 mn.

( 12 f. of c:a:l?end• iturc) in 1960. to $14.5 mn.

(16f.

of expenditure) This growth reflects sequences of a development.

pro­ gramme involving expenditure of about $170 mn.

during the period.

For this, the Government will ha Ye borrowed about$50 mn.

iu each of the pc riods 1960 to 1964 and 1965 nately, we have been able get better terms recently.
USAID loans 40 years with a moratorium of 10 years, at l f. per annum during the mora­ torium and thereafter at 2l/2J per annum.

The latest United Kingdom loans, which arc re­ payable over 25 yc!lrs, allow a waiver of interest ·for 6 years and a 2-year grace period for re· payment followed by .5 years of graduated payments.

A 50-year interest-free moratorium Canada for topographical loan with a 10-ycar has been granted by to 1967.

Fortu· arc for a period of to The and carry interest sur- vcys.
Moreover, we have been a·blc to avoid contractor-finance an:angcmcnts, the high cost and short currency C'I which throw a heavy burden of debt charges on the budget.

($0 .5 mn.

), Works and ($0.4 mn.)

Educa· The remainder of the in· crease arises From Personal Emoluments - for ne"" posts, of vacant posts and the filling salary inc rem c nts.

The in­ crca s cs fall-mainly under De­ fence ($0.8 mn.

), Police and Prison ($0.5 mn.

), External Affa,irs Hydraulics tion ($1.1 mn.).

and Health ($0.7 mn.


); with an offsetting reduction ($0 .6 mn.J for the telecommunications Depart­ ment which will be cstabli�hcd very as a separate corporation shortly.

Personal Emoluments now account penditure timates as compared with 41 f. in Trinidad.

age (44f.

), though not the high est, is among the highest in the world and must ca us c us some concern for 44 J of the ex­ under the Current Es­ Our high percent• The Otlu:r Charges provi­ sion has been reduced by $1.3 mn.
under General Emergency, by $0 .2 m11,.

included \:i..s t year for the ex gratia payment to Government workers in respect of pay lost during the 1963s trike, and by removal from the Esti· mates of provision ($0.5 mn.)

for the Telecommunications -partmcnt.

Dc­ I referred last year to the largely debt charges mountain of · subsidies hidden in thc·public which required for their accom­ modation a large proportion (a fifth) of the Govcrncmnt's revenues.
The major group, as I pointed out, com prised the sub­ s idics that go into agriculture mainly through the unrecoupcd capital charges on drainage and irrigation works and guaranteed prices for farm produce.

The Govern­ ment proposes in 1967 to for­ mulate detailed proposals for a substa·ntial and ra· tionalisation of these subsidie.s soas to relieve of s omc.
of this burden and to provide incentives and land development the publicpurse· in new direc• reduction 2726 16TH JANUARY, 1 967 Speech 2727 [MR. D'AGUIAR] uons necessary for the develop­ ment of tocal crops to replace imports.

has ex­ Current expenditure pandcdfr<;>m$70 mn.

in 1964 to nearly $90 mn.

projected for 1967 - an increase of nea'r]y s of this increase 231,.

Three-fifth arises from Debt Charges (${ mn.

), Education ($4112 mn.

), Health ($21/2mn.


), and Agricul­ ture, Forest and Mines ($1.mn).

Of the remainder, Defence, $!1/2 mn.

for Police, $1 mn.

for External Affairs, and perhaps a further $1 mn .. for ex­ pansion of the other adminis­ trative services, international be regarded as the direct costs of independence.

The remaining $2 mn.

has been absorbed in price and wage increases of one kind or another contributions to bodies, etc., may $21/2 mn.
for The Estimates for 1967 have been very tightly framed.

Strict control -and every effort at ecop­ omy will be necessary if cx­ p.enditure their bounds.

Past history in this respect has not been satis­ factory although there are signs of greater awareness ofthe need for control and economy.

1s to be kept within 1967 CUB.It.ENT RECEIPTS of the .

The current receipts Government - its ordinaryrev­ enue1 _,_ are expected toyield $89.1 mn.

This is $2.8 mn.
This is $2.8 mn.

more· than the Revised Esti­ mates for 1966 ($86.3 mn_J ag.d $11.8" mn.

more than 'the ac­ tual receipts Since the 1966 current receipts include an e·xtraordinary ceipt" of $3 mn.

from the special United Kingdom budgetary grant, the regular elements of the 1967 current receipts are in fact projected at a level $5.8 mn.

or 71, higher than in 1966. in 1965 ·($77 .3 mn); re­ Import duties are estimated to yield $34 mn.

- $1.5 ma.

more than the 1966 revised es­ timate ($32.5 mn.).


The esti­ mate allows for a full year's yield at the higher rates of duty introduced last year on a ievel of imports $15 mn.

(7'/zJ) high­ er than this year's, but with a greater porportion of capital goods dutiable at low rates.

it has been assumed that the excise yield will i:is e by 41, to $9.9 mn., whic·h is per­ in view of the haps optimistic sharp rise in 1966 due to the .

special c�rcumstances of that year.


The income tax yield this year is estimated to be $27 .5 mn.

- $2.5 mn.

or 101, higher than last year's.

The incomes of companies aiid traders in 1966 should provide $2 mn.

of this in­ crease and PA YE incomes (from employment, etc.)

in 1967, the remaining $0.5 mn.

(51, in­ crease).

The higher rates of vehicle and the travel in the last bud­ from this year licence duties tax introduced get effectively should add about $0.5 mn.

to the revenue.
to the revenue.

Arrears of rent, royalties, increment interest and Currency Boa.rd profits account for about $1112 mn.

of the estimated in revenue this year.

\\Tith the establishment of a separate cor­ poration to administer.telecom­ munications, (about $l1/• mn.

per annum) from this source will no longer appear in the Estimates; how­ ever, interest charges clude $0.6 mn.

from the yield of debentures ernment against assets handed over to the corporation.
the gross revenue held by the Gov­ will in­ SUMMAllY OF CUllllENT ESTIMATES From the foregoing, it is evi­ included, dent that insofar as the Cur­ rent Budget is concerned re­ sults last year and prospects this year give no cause for con­ cern.

Wi"th-$3 mn.

of the United Kingdom special grant the 1966 Current Estimates show a surplus of $0.8 mn.

On the estimates I have just dis­ _!

:Ussed, the 1967 Current Esti-_ mates show only a small de­ ficit ($0.3 mn.)

:!....
:!....

a net sur­ plus for the two years of $0.5 mn.

- and I have hopes that expenditure with effective trol, the actual-results for 1967 will show a surplus.

con­ However, our developm�nt effort requires that the revenue should be made to contribute substantially towards the fin- t 61H JANUARY• 1967 Speech 2729 for three rea-­ made avail-· ancing of capital expenditure.

Th-is is necessary sons.


First, our development· needs ar,e so pressing and so huge that even the generous level of assistance able to us on soft loan or grant is ins and hard loans, ufficient; _ and e·xternal, are .

both internal limited in supply and limited by our ability to bear the burden of their heavy loan charges.
Secondly, foreign assistance tends to be limited (although fortunately with some excep­ tfons) to the import content of projects reasons many worthy schemes have ·to depend in whole or in part on local funds.

Thirdly, to get our friends to help us, we must show them that we are really trying to help ourselves.

and for this and other 1966 CAPITAL ESTIMATES Cal)ital eapenditure last year totalled $30.4 mu.

-$6.3 inn.

mor.e than in 1965 ,rnd $20 .8 mn.

more than-in 1964.
more than-in 1964.

0£ this sea defen·ces ,drain• expenditure; works, land age and irrigation and other agricultucfli clearance works an:d services accounted .foJ $6 .0 mil.

; road_s... accounted for $7 �Omn.

;therailways, steam­ ers and airwafs for SI .6· mn:; the Jank of Guyana (building and other capital) school buildings ital for education .for $1.5 mn.

; health for $0.7 mn.

; housing for $0.6 mn.

; and Defence and pol­ ice for $1 .5 mn.

$2 mn.


was spent on loans to corporations and for o·ther development pur­ poses and on contributions to in­ ternal and external financial in­ stitutions.

and other cap­ for $2 .3 mn.

; This expenditure ($30 .4 mn) was financed to the extent of $21.5 mn.

from revei:iue, grants and loans received d_uring the year.

There.

was thus a defic­ terms iency in cash accounting of $8.9 m,:I.

However, a further $4.2 mn.


was r�ceivable end of the year against expen­ diture incurred in 1966, so that the true deficit was $4.7 mn.

at the Of the· total of $25.7 mn.

receivable· received or local funds supplied $8 .9 mn.

(33%) -$8.1 mn.

from local issues of debentures and Trea- in 1966, receipts sury Savings Certificates and f0.8 mn.

from revenue of a capital nature or earmark­ ed.

for capital expenditure.

For­ eign aid provided $16.8 mn.

(67�) - $11.1 mn.

in the form of grants and $5.7 mn.


in the f or of loans .

In the The response to the Gov­ ernment's efforts to raise local loans is very heartening.

two years 1965 and 1966,$21.5 mn.

was raised by the issue oi Treasury Savings Certificates and debentures - more than was raised in the past 25 yean and by voluntary nearly four times the amount raised by forced.subscrip tions in 1962 and 1963. subscriptions, -'fhe deficit of $8 .9 mn.

(of which $4.2 mn.
(of which $4.2 mn.

was covered by receipts in anticipated further 1967 against 1966 expendi­ ture) together with the ac:cumu­ of previous lated capit al deficits .

years (J8.� mn.)

- a total of about $17 mn.

- was financed bf bank.

ov.ei:draft sury Bills.

This kind of financ­ ing· has hcen.

(aJ'rie d as far as.

is practicable Further deficits ount must be avoided.

and desirable.

on capital acc­ and Trea­ 1961 CAPITAL ESTIMATES The Capital Estimates as to this Assembly of$39.2 mn.
now presented call for expenditure - $8.8 mn.

more than the ac­ tual expendiutre I feel, is for the first time in our of history, what capital are feasible of execution in a year,and can be financed from , funds likely to be available.

works and services in 1966.

This, a realistic estimate The provision proposed for sea defences is $1.5 mn.
- for works of the highest priority, .well within the capa­ certainly city of the department to exe­ cute; and that for-drainage and irrigation and other agricul­ $2.l turaL works and services, to• mn.

Roads carry provision tailing $9.5 mn., of which the road Atkinson Field-Mackenzie accounts for $7 mn.

Feasibility surveys for the West Coast and the Corentyne roads a re being undertaken with a vie"w to fin· ancing theirrecons USAID loans.
Railways_; from truction steam- 2730 1 ,;TH JANUARY., 1967 Speech [MR. D' AGUIAR] 2731 - and the re­ for$3.4 of Guyana iincluding the - hydro-electric, ers and airfields new airport building habilitation of the runways at Atkinson Field) account mn.

The University and the school building pro­ grammes should absorb $2.5 mn.

Surveys geolo!

(ical, forest and topograph­ ic - oi our natural resources call for expenditure of some $3.7 mn.

Housing and building-land development of S 1.1 mn.


Loans for various development purposes require provision of $4.5 mn.

Equipment and vehicles for various pur­ poses call for provision mn.

require provision of $2.9 In addition to $4.2 mn.

re­ in respect of 1966 ex­ ceivable penditure, funds in sight for the purposes of 1967 expenditure total $34.9 mn.

- $4.3 mn.
- $4.3 mn.

from miscellaneous capital re­ venues (the major element be­ ing the expected distribution by mid-1967 of the surplus assets of the Currr:ncy Board); $12.0 mn.

from fort:ign mn.

from foreign mn.

from local loans.

grants; $1-5.6 loans.

;and$3.0 Receipts against this year's expenditure are thus $4.3 mn.

less than the projected diture expen­ SUMMARY OF FINANCIAL POSITION At the enaofl965 the Gov­ ernment owed the banks $5.9 mn., and holders of Treasury Bills $1.8 mn.

- a total of $7.7 mn.


With a·surplus on current account, on capital .and a further mn.

to the Rice Marketin• Board, this short-term indebte< ness had risen to about $17 mn.

at the end of 1966. account of $8.9 mn, advance of $1 ofS0.8 mn.

a deficit ness of $17 mn.

at the end of 1966, about $15 mn.

was sup­ plied by the banking system.

indebted­ This short-term ness is all attributable ital account, which was over­ drawn by about $17 mn.
at the end of 1966, and reflects the strain on our finances arising from the high level of develop- to cap­ Of this short-term indebted­ ment expenditure in two years.

- $55 mn.

of-$0.1 mn.

on capital a deficit The 1967 budget as presen­ of $0.3 ted projects mn.

on current account and a deficit account (including ceivable 1966 expenditure).

only capital receipts 1967 capital expenditure taken into account, the total budget in 1967 is in deficit $4.6 mn.
in 1967 in respect of Indeed, if against are $4.2 mn.

re­ by Steps must be taken to re­ move this deficit short-term proportions debt to manageable .

and reduce the in­ and liqui­ Fiscal and mone� As I have indicated earlier in my speech, the economic fin­ ancial situation requires that the current budget should throw up a surplus to help finance capital expenditure date some of the short-term debtedness.
tary measures must be taken to relieve the pressure of de­ mand for impora in the short­ run and to increase duction for import s11cbstitut-ion­ in the fongt:r run.

The Govt:u1- ment has had the assistance missions from both the lnter­ na tional Bank for Re cons truc­ tion and Development.

and the International Monetary Fund in formulating a policy that will achieve these results.
local pro­ of spending The pressure The pees ent economic s truc­ ture and circumstances require that the main assault be lev­ elled at imports.

of demand, which the high level of Government deficit on ·invest_ment has generated, has with the high propensity pf the �ommunity to import, raised imports to a level be­ yond the bounds set by the for­ eign exchange the country can e·arn from its exports or beg, borrow or entice from abroad.
Higher taxation in the short-run, the demand for imports (by rais­ ing_their cost and mopping up some of the disposable of the community to imports) and provide some of the additional revenue re­ quired to throw up a budget sur­ plus.

In -the longer run it will help towards import substitu- .

tinn.

on imports will help to now directed income restrain.

2732 161H JANJARY, 1967 Speech 2733 The Government therefore the fol­ proposes to introduce yield­ �owing revenue measures, mg $5.4 mn.
per annum as fol­ lows:- ( i)Additional import duties ( ii)Higher ex- cise duty on matches 0.05" $2.55 mn.
du- 0 .15 " ( iii)Higher trade licence ties (iv)Licence du- ties on bet- ting shops (v)Higher duties on transfers property 0 .10 " 0.05 " of (vi)Tax on long- term capital gains at 10 % ( ·� ; : \ Spreading \¥ J.J./ initial granted allowances under Income Tax (in Aid of Industry) Ordinance 2.5" The additional import du­ ties will be imposed on a limi­ ted range of imports - less than 10% by value of the total.
Of these imports, alcholic d�inks and tobaccos will pro­ vide about 40 % ()fthe additional of the ad­ yield.

The pric�effect these groups ditional will be -sU:cli-as of commodities to add about 2¢ to the price of a packet of local cigarettes and S 1 .50 to the price of a bottle of whisky.

Guyana certainly duces and adequate quantity liquors and range of alcoholic duties/on pro­ and, I am sure, can produce and there is no more·varieties; reason why she should not pro­ duce more of her tobacco needs.
If we must spend scarce foreign exchange on liquor and tobacco and stint our contribution local employment, _not grudge a bigger contribu- tion to the revenue .The addition­ al duty oninon-essential stuffs and on clothing provide 30% of the increased yield.

Here again we can buy more local produce with bene­ The in­ fit to local employment.

creased rates applica,ble we should should here food­ to high­ and 10% on now carrying small.
The same (5% are 5 % ad v alorem on commodi­ ties now subject to duty at rates not exceeding 20 % preferential, and 40% general,.

commoditie·s �r rates of duty.

The price effect ,s therefore scheme of additional duties and 10% advalorem)willapply to consumer durables and mis­ manufactured goods, cellaneous which should provide 30 % of thi; increased yield.

I has ten to as sure the ladies that I have no designs on their cosmetics.
These increased duties will raise the index of retail prices by less than one point.

It is also proposed to make to the tariffs certain adjustments on small revenue significance oras conces­ anomalies to correct e.g.
the rates �ions to industry, for agricul­ of duty· on trailers at 5 % tural use will be dutiable preferential ancl 10% instead of the present rates 20 % and 40 % respectively, frames of pre-fabricated use will be ings for industrial dutiable at 5% and 10% in­ stead of 20 % and 40 % , pre­ ferential tively.

and general, general, respec­ and the build­ The excise duty on matches from 25¢ to will be increased 50¢ per gross boxes raising the controlled to 3¢ a box, but leaving the effective box-at3¢.
price retail from 21/2¢ retail price for a single The trade licence duties for a rental were last revised in 1940 when the rental va1ues on which they were based were less than half The upper the present levels.

limit of licence duty in George­ town and Ne�Amsterdam is now $250 per annum value in excess of $10,000 per _annum.
The effect of the in­ creased rates proposed for Georgetown and New Amster­ dam will be to increase the licence duty for rental values up to $200 a month by $5 to $15 per annum; and to increase for the more them substantially The maxi­ valuable premises.

mum licence duty will now be $1,000 per annum instead of $250 per annum, but•wi!l only to premises the rental value of which is over $20,000 apply 1BTH JANUARY• 1967 S,,eeclr er-.

o• AGt.11 AR'] per annum.

In the rural areas,.


where the only practicable basis is Door area, the licence duties will be increased by $5 to $12 per annum.

for the small­ er shops of a floor area not exceeding 2,000 square feet and substantially {to a maxim um of $SO per annum} for the larger shops.
It is pro:PQ,sed in the course of the ,year to rationalise simplify the scheme of business licence duties generally ing them with effect from next year to factories and to pre­ mises where services are sup­ plied to the public.

,extend­ and A liccucc:duty.on $2,500 per annum will be.

imposed on all betting shops.

This is the first step towards a complete revi­ sion of the gamJ>ling laws.

and controls.
and controls.

Duties arc now levied on e,rery CDllvcyance or transport of immovable property at the rate of 1 l ad ya}orem.

It is proposed to raise the rate of dui:y to 2J ad valorem.

Con­ ,rcyanccs or transfers of other property (e.g.

·shares) are now dutiable at 1/.&1, of the consid­ eration, or in die case of bonds, debentures, shares, at 1/41, of the face value.

The rate will be increased to .1/JJ and levied on the amount or value of the consideration c,rery case.
scrip, stock or in The capital gains tax, which is not levied at 15'fa only on short-term (not exceeding 7 years) gains, will ,be extended to long-term gains not exceed­ me 25 years from a commenc­ ing date not earlier than 1st January, 1960, at the rate of 10�.

no long-run consequences for the revenue, but is expected to benefit the revenue inl967sub­ s tan tially.
The Government proposes legislation extend­ to introduce ing the period prior to death during which inter vivos trans­ fers are exigible to estate duty, from three to five years.

Government is concerned at the wasted potential of idle land.

It is considering the in­ troduction measures to encourage the pro· ductive use of land.
of tax and incentive I should add that the Gov­ ernment proposes to examine rhe rate structure of the per­ sonal income tax with a view to decimalising ing any anomalies or inequities.

it and correct­ ln addition to these nega­ tive measures to increase the Government's rake from ·the i.e.

to shift income commu-nity, from your pockets into the pub­ lic purse, the Government pro­ poses to take further positive ·the growth stepl!
to accelerate production of the community's and income, so that,· both di­ rectly fromyourowne�penditure and indireclty e.inment's expenditure munity servic'es, fit from a higher levelofincome.

It is only by making the national cake bigger than.

the comm unity taking a as a whole can benefit; slightly bigger -slice away from you by taxation is only a means to this end, but not an end in itself.

Much more can ed by making the cake bigger.


through the Go\'­ on com­ you may bene­ be achiev­ may be whereby lnitial allowances, -IOJ _of the value of plant and machinery and 10 '7a of the v a Jue of industrial buildings written off as depreciation in­ itally for tax purposes, taken in the year immediately after the investment or immediately the tax holiday period.

It is proposed to·permit these allow­ ances to be spread over three years in any proportions taxpayer wishes.
This will have after the end of takes place must be the With this objective in view, its the Government will expand es.

development expenditure which fac­ pecially ilitate and s tim ula te private in­ vestment.

in directions The Government has, with of the USAID, fund the Private Fund in the trustee the assistance established a Investment ship of the Bank of Guyana for financin� ind us trial devel­ opment.

The fund will eventu­ ally build up to some $6.4 mn.
available for help as it revolves finance "·orthy ,ndust· in,; to rial projects lt is .,isoproposed to set up a small fund whereby 2736 t 6TH JANUARY, t 967 Speech 2737 to Thus,by helping can participate n, by direct partici, the Guyana Development Corporation some extent in new industrial developments.
on the finance side by loans through the P.I.F.andtheCredit Corporatio pation and by technical tance, the Guyana Development will be enabled to Corporation fulfil its function of stimulating industrial development.

The Guyana Development Corpora­ tion also proposes to increase the availability the terms on which factory sites are provided on the industrial estates.

and liberalise assis, allowances.

Initial of industries allowances include all secondary industry.
eligible for initial will be extended to The range Raw materials for industry.

prov is ion will be As a general policy, except where there are adequate local subs tituties, made to the maximum extent practicable, importation materials, position, advisable, tax on local sales of the finished product subject to the im­ where necessary or for the duty-free of industrial of an excise or sales raw Protection to ind us try.

The The pace of industrial de­ velopment must be accelerated.
The Government appreciates that itm us tdem ons tra tedirectly by its tax policy that it is pre­ pared to maintain the right cli­ mate for investment' end it is proposed tq.liberalise 'the present system A'tsx con­ cessions in ways;which I shall now discuss in general terms.

To this its po­ Government will continue licy of granting reasonabl� pro­ tection to local industry against imports.

With the additional revenue $5 .4 mn., the measures Jyielding deficit on the Current Estimates of $0.3 mn.
will be converted a surplus of $5.1 mn.

The total budget will therefore show a surplus of $5 mn.

to Tax.

holidays.

The present will be to the whereby allowances, at the beginning t:,come tax concessions improved.

The Government will offer, as an alternative present form of tax holidays, a tax holiday in the form of investment tax is waived by writing off for tax purposes of their-life a substantial pro­ portion of the amount invested in fixed assets.

This form has the advantage t!


:lat the inves­ tor is assured that he will be allowed to recover a substan­ tial proportion before his profits become.

ex­ wili be igible ·made for extending the pre- sent five-year day gra:nted Tax(ln Aid of Industry) ance by!

a further period of ,p to five years where the Gov­ that the bene- to gax.
Provision ofhis investment under the Income income tax holi­ the initial tax hoiiday have not ernment is satisfied fits received under fiye-year been adequate in the particular circumstances.

posed to provide for the grant, of a two-year without restriction:, tax holiday to any ne-wapproved secondarv industry.
It is also pro­ Ordin­ FISCAL AND FINANCIAL ORGANISATION I have been trying .ever organisa,,tion of xe·s to collect]ta and to spend-public_ and in the since I assumed office to de­ velop the fiscal the Government; efficiently; funds economically, amounts and for the purposes for which they were provided.

These are basic essentials to sound management of the Gov­ ernment's finances.

gress has respects but we still have some way to go to achieve what is required.
been made in these Some pro­ With the help ofB ritishTech­ in training procedures of these taxes have nical Assistance, which has sup­ plied .a specialist in Customs and Excise work, im­ proved methods and for collection been worked ou•, and staff is being trained in their applica­ tion.

On a more practical immediately the campaign against bushrum has achieved considerable suc­ cess.
During the period lstJ an­ uary to 30th November, 1966, 519 offences were detected; fines imposed by the Courts amounted to $83,025; 51 per­ sons w�re sentenced rewarding plane, toperemp- and 2738 Bu:lfet 16TH JANUARY, 1967 Speech 2739 [.MR.

D' AGU I AR] 31 cases tory imprisonment; are still pending; 437 stills were destroyed along with 794 gal­ lons of the illegal spirits and 32,900 gallonsof the wash.

In the same period 258 persons were detected commiting offen­ ces against the Customs Laws.
The total fines imposed during the year by the Courts, to­ gether with compensation to the department, to nearly $200,000.

amounted paid of the of the de­ training arrangements; On the Inland Revenue side technical assistance is being ar'.

ranged to provide the services of two experts; one to establish internal and the other to improve the organisation an:i method� for curbil\_g tax evasion.
Data pro­ cessing equipment that will en­ able the accounting side department's work to bebrought and kept up to date has been installed and will be in opera­ tion this year.

With the expan­ sion of the functions partment and the growth in the number_ of taxpayers, the-ac­ counting system had become hopelessly inadequate po�es.

Under the new system the en-tire process of billing tax payers, tracking ing refunds and accounting for tax receipts will be carried out by electronic methods.
ensure prompt billing of tax­ payers with full information about arrears arid efficient tracking of \he taxes due in re­ lation to assessments.

step - indeed the vital step - as I have indicated improve the assessment side.

The ma in hindrance here is the shortage of professional The department to supply its own needs ofskilled stuff of this kind by setting up in,ernal .,n,l it must ;,-nprove for c.::tching tax dodgers.
arrangements its methods must be enabled arrears, mak­ training before, is to This will The next for its pur­ staff.

So ::--.1uch for tf'" efficiency of tax collection.

The other side oi financiai administration - adeauate con­ trol and eco:1orr: v ;� the ex­ penditure been a matter of great concern to me, as "it should be to all of you.
The whole system of par- of publi� funds - ha:; demv .. ,·acy is based in order to mesh ex· can exercise adequate with the resources for their financing, liamentary on the premise that the Leg­ islature control over the expenditure of public funds.

Indeed, even on the lower l�vel of practic,;1.l ex­ pediency, penditures available is necessary that expenditures should made to conform with the budgeted prov is ion for them.
The system of financial con­ trol must achieve this or fail the high ideals of the Cons ti­ tution and the needs of practi­ cal finance.

I must say that there are signs of a greater aware­ ness of this need, but again we have some way to go in order to achieve what is required.
it of the accounting Part of the lack m this re­ spect has been due to the in­ efficiency sys­ tem which failed to throw up quickly, and in sufficient adequate expenditure I have introduced from th a year a "punched-card" (u,� ,t accounting system which will provide prompt expenditure in· formation and enable central tracking of the progress of ex­ penditure.

detail, figures.
detail, figures.

with effect rc'..::rd) electro-mechanical of the system will required for ex­ anathataccounts However, this is only part of Ultimately ,the what is required.

effectiveness depend on the sense of res pon­ s ibility which all those whose duty it is to expend public mon· eys show in thier work.
I hope to intensify the work of the In· spection Division of the Trea­ sury,to ensure that the methods and procedures penditure control are carried outeffectively are paid promptly.· also like to see the Public Ac, counts Committee functioning as it should this year.

-�ontro!, ts a viral Dart e,,;!

administration, Se.i s·.1fficient.

ess mclst be organlsed that ensures thn t oublic funds are spe!
:t e The spending departments must have thewill, and the Treasu'ry must have the means, to en­ sure that the system of admin- 1strative control, expeciall :oncffiically of course, while it The public busin­ of sound £inan­ is not by it­ I should in a way f Ei'TH JANUARY, 1967 274J .- ascertain whether the to accounting through financial, and stores procedures, is e"r­ fective for ensu.ring that the work or service is cxecutcdeco­ llomically for its purpose.
The Treasury mult be in a posi­ tion to test expenditure proposals by examining their proposed basis of execution publuc to them arc the funds allocated minimum required toaccomplish their purpose.

Without such an the Treasury can organisation prun­ basis for have no rational ing expenditure to proposals bring them within the bounds of the scarce funds required for their implementation.

Last year the Organisation hods Division undertook organisationand of both the accounting stores systems.
and Met­ the re­ mechanisation and the Guyana joined the Intern;t: year tional Monetary Fund last and has opted for full conver­ tibility of its currency under Article VII I of the A rticlc s of Agreement of the Fund.

The eco­ nomic stresses and strains of the past two years have the strength of its currency and jus tific d this course.

The free exchangcability of our currency since th is Gov ernm c n t took of­ fice has stimulated inflow of funds from abroad.
a welcome proved w· ana, which opened accounts for the comindcial banks in Marci, and took over the Government accounts in April.

The Govern­ operatjons ment's financial arc now channelled through one bank which manages· its bank accounts and s_upplies term credit on ovcrn�aft.

the short­ The Bank also furthered of the m.arkctforTrca­ in this there is scope progress sury Bills by buy111g and selling bills outside the monthly ten­ der 'operations.

At the end of last year $6.3 mn.


in Treasury Bills was outstanding.

A grow­ ing number of institutions and persons participated market, althought for further development a, people become more familiar with this type of security.

was also some progress in re­ spect of an improvement market for other Government securities.
I am informed that the Bank of Guyana will soon enter into an agreement with institutions in the market for securities, the exchange of information prices and on offe .. s for sales and purchases which will be published step towards a 'stock exchange in Guyana.
regularly - a first for on There of the and persons active In the field of local finan­ 1966 saw the of yet another bank, the Hank of new the.second cial institutions, establishment commerciai Baroda Limited, commercial bank within t\\O years to establish remarkable rebirth of confidence future, especially sider that the number of ,:om­ mercia:l banks had been two for almost a century.
testimony to the in the when we con­ itself here - 1966 saw an :acceleration of· of loans to the the expansion private sector from S30 million at the end of 1965 to $42 mil­ lion at the end of ;\ ovember 1966.

In the same period Sav­ ings Deposits banks grew from :545 in the commercial million to with other deposits .. $50 million.

Wgrowing to a lesser extent.

1966 was the first year of the wider operations oi our new Central Bank.
the Bank of Guy in c,,n we sl,nuid needs of the and agricul­ we arc striv­ The progress made in re­ spect of fina ncia 1 institutions Guyana in recent years leaves us with the question of \\bat further developments aim at.

The question which comes first to mind is wi.etl:er the existing institutions meet the financial private industrial tural development ing for.
Hert we must,ofcourse, c,e careful not to lose ,ight of the fact tint the mere ,:st;1b­ lishment oi such an insitiution does n'JtprQvidethcfundswhich can eb utilise<; nor th.

: mana2ement to put thern to good use.

We have made in the direction progress ing funds for industrial ment by se:ting up a Private Investment Fund under the trusteeship of the Bank of Cuy­ ana, from which loans can be made for medium and longer terms by commercial banksafter with the Guyana consultation Corporation.
Development ofiind­ invest­ for its purpose The 2742 16TH JANUARY.

1967 Speech [MR. D' .AGU I AR] l:'unct started somewhat slowly, the im­ which in part confirmed pression that at the moment loan capital is not the main bottleneck development.

for private industrial has avail­ a view development of its activi­ the resources and $4 mn.

lost The Credit Corporation now completed a comprehen­ sive stock-taking ties and loan cover \\'ith to assessing able for furtl,er of its functions.
Since its estab­ lishment in 1954, S 16 mn.

in capital has been put into the organisation or in jeopardy through bad debts.

Whlle some and doubtful such losses are inevitable in an institution of tnis kind.

must have an eye to develop­ ment potential to financial es.

of this kind arising from un productive harm the economy by diverting real resources use and drying up the fund which supports these loan,.

security, high use of the,e funds \\'hich loss· and not merely from productive' activities.
to primary Is hould In this context I feel that too much emphasis has been put on the housing sector of the Corporation's I intend that this emphasis should shift substantially and I econdary industry.

add that it is proposed to allo­ cate funds which the Credit Corporation, dation of the Guyana Develop· ment Corporation, can use for making small loans to artisans and the like.

An allocation of funds will also be made for the purpose of stimulating tu·ral development.
on the recommen­ agricul­ The Radio Bingo and the National Lottery are now well established.

The public spent about $1/2 mn.

on Bingo tickets last year; and $1/4 mn.

on Nati­ onal Lottery tickets.

These yielded about $100,000 venue which can be used for desirable The Committee is to be con­ gratulated on the successful or­ tanisation of these schemes.

hospitaldevelopment.


and administration in re­ CQNCLUSION In brief, the budget for 1967 calls for expenditure - current 2743 � .._,,I and capital - of $128.6 mn This is $12.7 mn.

more than in 1966 -an increase of nearly ·10%.

With the revenue meas- ., ures I have outlined.

in sight for financing penditure tot a 1$13 3 .6m n. There be a surplus of will therefore some $5.0 mn to help liquidate of the short-term ($17 mn.

at the end of 1966).


The progress in the last two indebtedness the funds this ex­ potential years is heartening.

But weha ve yet a long way to go.

And it will not be an easy way.

There will have to be sustained and effort if the coun­ conscientious try is to realise its for development.

There are few who would dispute with me when I say .that the country's tion can be increased co-operation between capital.

We must produce more efficiently .

;.nd industry.

our prejudices of local manufacture.


cal products is one of the ways in which we can help our coun­ try to progress.

both in agriculture We must discard produc­ by better labour and Buying lo­ I have had ample eviden�e of the willingness of people to change their ways and work for a better future.

:\fany have brought me ideas and given me support without my asking.

There have been dis appoint­ ments in the public service, but there have been many encoura­ gements.
I am satisfied that, in spite of the difficulties under which public officers work, there is a genuine will to serve their country.

Pride in our new country e is not con­ and its independenc fined to the Public Service.

Many both in­ firms and individuals, side and outside the country, have demonstrated their in­ terest in Guyana's future by making gifts to mark the occa­ sion of indepe nde nee.

I take this opportunity licly on behalf of the Govern- ment.
to tha� them pub- I , · One thing this year of in- ( dependence has shown -.J.hat tliere is a fund of GoodY41f in the outside world for Guyana.

The support - both in finance .and technical .• we assistance against articles 1967 16TH JANUARY.

revc1vc from our friend.a m Canada, Germany the .. United Kingdom and the United States, and also the United Nations­ agencies, and its specialised gratefully we acknowledge.
What then is the prospect ·be jo.incd t e avourable factors with more efficient greater product- administration; ivity, stricter and united effort, dent Guyana would be well on •he highway to prosperity.

financial then indepen­ discipline pursued by the present which faces the newly indepen­ of Guyana?

There dent tcrrit6ry arc those who say that it is in that the the grip of stagnation, policies government are doing little to and advance it towards progress These prophets of prosperity.
doom have already been on another front; tions of a $10 mn.

current de­ ficit in 1966 are slightly off the mark.

The 1966 current budget has shown, not a deficit, but a surplus.

They would have done the tech­ better to have followed nique of the ancient Oracle of Delphi.

routed their predic­ 3.35p.m.

I now beg for the approval of the for 1967, Estimates of Expenditure as outlined on the Order Paper, and I name Friday, 20th of January as the date for the resumption ofthisdebate.

Applause.]
Applause.]

Dr. J agan: Where are the Esti­ mates?

The Leader d the House (Mr. Bfssember ): I suggest that the Esti­ mates be circulated the hon.

Minister's move the Adjournment.

Speech before I \Vith copies of· The facts-are-indicative of optimism ll:nd not pessimism.

Never in the history of this country has the outlook for the futur� been better.
We see a stable and peaceful country; we see signs cver'ywhere of a sub­ of capital and injection stantial and expansion we see many new buildings ing up; we see new industries budding in a favourable forinves tm ent; we see new roads being built; we see a zest for knowledge and skills.

of employment; climate go­ All these add up to a tre­ Mr. Deputy Speaker; Certainl y, (Estimates and Budget Speech cir­ culated.]

ADJOURNMENT Resolved.


·That this Assembly do ·now adjourn until Friday, 20th Jan­ tary, at 2 p.m. • [Mr. Bissember.J mendou.a development tcntial for further development.

and Po-· ·Adjourned acccrdingl y at 3.39 p.m.