Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698077773173.pdf (Guyana)
(Constit11tcd SECOND -LEGISLATIVl COUNCIL under the British Guiana (Constitution) (Temporary Provisions) Orders in Council, 1953 and 1956).

Wednesday, 11th March, 1959 The Council met at 2 p.m.

PRESENT: Speaker, His Honour Sir Donald Jackson Hon.

M. S. Porcher Chief Secretary, Attomcy-Genentl, Hon.

A. M. I. Austin, Q.C.

Financial The Honourable Hon.

F. W. Essex.

Secretary, Dr. C. B. Jagan (acting) I n· .

J er o 1cr.o Berbice .. B.B.. Benn " E. B. Behnny ,.
,., Janet Jagan " " Ram Karren Mr. R. B. Gajraj ,.

W. 0.

R. Kendall ,, R. C. Tello ,, F. Bowman L.F. S. Bnrnham ,.

A. L. Jackson ,, B. S. Rai ,.

S. M. Sallee ,, Ajodha Singh ,.

R. E. Da'Vis ,, U. J. M. Hubbard ,, A. G. Tasker, O.B.E.
-Member for Eastern (Minister -Member for Essequibo River of Community (Minister of Trade and Industry) Develop­ ment and Education) -Member for Eastern Demerara (Minister of Natural Resources)· Essequibo -Member for Western (Minister Housing) of Labour, Health aoo -Member for Demerara-Essequibo (Minister Works).

Member -!
Member -!

'laminated of Communications and -Member for New A1111terdar,1 --Nominated Member River -Member for Demerara Central -Member for Georgetown -Member for Georgetown North Demerara -Member for Central -Member for Western Berbice -Member for Berbice Rsvcr -Nominated -Nominated -Nominated Member Member Member.

Mr.

I. Crum Mr. E. V. Ewing - Clerk of the Legislature Viapree-Assistant _ Clerk of the Legislature.

Mr. S. Campbell Mr. Jai Narine Singh Ml'.

A. M. Fredericks-on leave.


ABSENT: The Clerk read oravers.

••·.

1163 Customs 11 TH MARCH, 1959 (Amendment) Bill 1164 MINUTES The Minutes of the meeting of the Council held on Tuesday, 10th March, 1959, as printed and circulated, were taken as read and confirmed.

ORDER OF THE DAY CUSTOMS (AMENDMENT) BILL Mr. Speaker: The Council will the Second resume Reading of the Bill intituled the debate on "An Ordinance Customs Ordinance".

to amend the At the adjournment yesterday the hon.


Nominated Member, Mr. Gajraj, was still speaking.

Mr. Gajraj: When the adjournment was reached I was referring to two types of Trade Agreements to which British Guiana is a subscribing member.

I had pointed out that in the Canada-West In dies Trade Agreement we had under taken on our part to give preference, based on certain percentages, to products of Canada entering the British Guiana market.
On the other hand, the Canadians had undertaken to give preference to our export products, particularly sugar, thus enabling the producers of these goods to enjoy higher prices than those at which the Canadians would be able to buy similar goods from other parts of the world.
The General Agreement on Tariffs and Trade (GA TI), to a great extent, was initiated by the United States for the purpose of bringing world trade within reasonable limits-in other words, so that there should be multi-trade among nations and the rejection of pre ference after a period of time.

The im portant point there is that existing pre ferences should not be increased.

The position is that while in one case it is based on percentages, in the other the margin is absolute.
Because of the existence of these two Agreements it has been found that whenever the Gov ernment of British Guiana wishes to in crease its customs levy principally for Iii ::.,.

~: revenue ·purposes it 'is bound to infringe one or other of the two Agreements.

If one were to adjust the new rates of pre ferential and general tariffs to conform to the conditions of GATT then one would have to reduce the precentage of preference under the Canada-West Indies Trade Agreement.
So one left to the proposals which wonder whether have emanated from Government to alter the existing pattern of customs duties were made after the Government had taken the Canadian authorities into their confidence and had obtained a waiver from them in regard to these particular products.

is I do not say this out of a desire to teach the Government how to do its job; the Government knows its job.
Never theless we have to bear in mind that even though waivers may be obtained from the Canadian authorities, giving prefer ential treatment can have a disturbing influence on the Canadian authorities.

I think it is sufficiently well appre ciated among the trading community that the benefits we obtain under the Canadd-,West-Indies Trade Agreement are so vital to this country's economy that we must make sure at every step which we take that we do not endanger those benefits.
Now if I may return for a short while to the different groups of articles which are proposed for additional taxa tion; I find that the Financial Secretary has es1limated for addi\tional revenue from tobacco imported for smoking as well as for cigarette manufacture.

But I will not refer further to that now be cause it is dealt with in another Bill be- fore this Council.
In the luxury group we find: per fumes and cosmetics, $36,000 for the whole year, and cameras and watches merely $34,000 - small sums indeed, and one is left to wonder why for such a small gain or increase in revenue so much dissatisfaction should be created in the minds of those whom it will penal ize.
1165 Customs 11TH MARCH, 1959 ( Amendment) Bill 1166 and con­ motor cars, one finds in the Bud­ that Govern­ curb should In the case of private etc., motor cycles, get Speech the statement ment feels that some slight be placed on the importation use of the large number of such sequent in view of the congestion on the vehicles, on the other hand, it would roads.
Yet, seem to me from an examination of the revenue which amount of additional Government in Customs crease any way calculated of imports under this particular by the in­ duty, that it has not in on a reduced volume head.

expects to collect unless count upon an increase feels that habits are so well revenue, Government fixed that, in spite of the fact that prices for imported arti­ are going to be higher cles, people are not going to use the locally manufactured articles.
Turning now to the picture general taxation -the need for this additional -one finds that in justifying started off by the Financial saying: Secretary the Budget "The short-term financial one but the longer term pos1Uon is a diffcult much more hopeful".

It would therefore appear that either of the is not correct or that an the statement error has crept in in the course of the additional calculation anticipated, because tation from that particular group.

Government's found short at the end of the year.


I hope that will not be calculation is bound to affect the revenue any curb on impor­ revenue I made the point yesterday far as vehicles it is wrong policy them, because need motorized with the increased tation.
that so concerned of this type are the use of to curtail like this we in a country in order to cope vehicles demand for transpor­ In the case of furniture and ready­ in the collection clothing, on furniture and $30,000 one wonders of increased from which there is an revenue of on made clothing.
expectation $80,000 ready-made it was right for Government to whether of an increase estimate duty even though the rate has been in­ creased, cated ·that one of its aims is to encourage the use of more locally manufactured furniture, made clothing skilled able to produce that can be imported.
is imported, so as to assist Guiana who are and to see that 11;:ss ready­ persons in British clothing as good Government because has indi­ as any So that if on the one hand we want to see our people more gainfully em­ ployed and their products in this country, widely submit, in preparing qur · estimate used more not, I we should of I am prepared to base my conten­ passed the Appropriation tions on that statement.
We all admit Bill that having for an expenditure calling of a certain sum of money, and having approved of for 1959, Estimates the Development must agree upon the means this Council sum of about $2 whereby are we to million has to be found.

How its find it?

Government proposals, the Council contained do not meet with my approval.
We are told in the Budget Statement but l say that the proposals in the Bill before an additional has submitted "The two main external influences in late 1957 and 1958 have been, firstly, recession world industrial an effect on the demand for calcined aluminium bauxite, metal grade bauxite, shortage cularly for underdeveloped and consequently and, secondly, the for investment, parti­ the which has bad territories."

of capital That was for 1957 and 1958.


The Bud­ continues : get Statement "We have reason to hope, how­ will be ever, that after.

1959 the position easier."

that the for bauxite We are told, and .I believe we can take as firm knowledge, it for granted is brighter this year, outlook plant go and we hope to see the alumina any further post­ into production of the target date.
That ponement is 1961, and target in paragraph we have been told that if it starts in 1961 it will go into full produc- date, we understand, without 12 of the Budget Statement ·r 1167 Customs 11 TH MARCH, 1959 (Amendment) Bill 1168 [MR. GAJRAJ} -tion by 1963.

Likewise we are told that industry is hoped to be the manganese to go into at least started in 1960 and adequate, if not full, production by 1962.

So that the statement that the future position is more hopeful is borne out by these hopes.
In other words, from 1960 to 1963 we may not find ourselves in the same tight financial position as we find ourselves now in 1959.

Going further, one is tempted to suggest that if the conditions of fulfil ment in the 1960-63 period were pre sent today, there would not be the need to go in for these additional forms of taxation in order to raise the $2 million of which we are short.
The fact is that we have to bridge over a difficult period, starting from 1959 and possibly extend ing into the early 1960's, and let us not forget that the $2 million that we need for this year is required for the Develop ment Programme, so that the develop mental schemes that have started will be proceeded with during 1959 and will carry us on to 1960.
My feeling, then, is that what we need is not a permanent addition to our taxation but a temporary increase to tide us over this period when we are short of $2 million for develop ment finance.
is not It must be appreciated that when taxation of the nature proposed, that is increases in both Excise and Customs imposed, such increases revenue·, they are form temporary; part and parcel of the perman ent pattern, and as has been pro posed in this Council it will not affect everybody who is going to benefit from the development schemes, but certain groups and items have been chosen for the increased taxation.
This is where I am led to the suggestion that the propo sal which has been put up, admittedly rather late in the day, by the Chamber of Commerce to the Financial Secretary is worthy of consideration in the light that the money is required to bridge us over a temporary difficulty until such time as these major industrial enterprises bring us our reward in additional revenue.
firstly, It is suggested a Bill of Entry Tax similar to that which was imposed many years ago on imported articles to bridge the deficit between revenue and antici pated expenditure, is the kind of measure think of because, we should it would be a small percentage added to the cost of all articles imported, and would be spread over the whole range of goods that are used by everybody in British Guiana.
It would not mean a higher impost on the users of certain classes of goods, but it would give a fair chance to every citizen in this country to bear his small share of the cost of development finance.

Not merely should we put it on but the in doing so we should earmark revenue for development and decide that it is a temporary measure which would be needed for the period 1959 to 1961.
I go so far as to suggest that we should decide upon it for that within that period of time the long-term improvement which the Government it self envisages will come to our assistance and enable us to revert to the present rates and pattern of taxation, and not im pose taxation which is going to create a considerable amount of dissatisfaction amongst the people of this country.

five years so the hon.


I was not in my seat all day yester day and, therefore, I did not have the opportunity of hearing the Financial Secretary when he spoke however, on another measure.

read an article in the newspapers today, and I hope the report is correct, that the hon.

the Financial Secretary told this Council that he felt that the estimates of revenue are rather on the low side.

He said that income tax, for example, was- I, The Financial Secretary : I did not say so.
I said that the income tax estimate was likely to be on the low side, but I was equally convinced that the customs duties estimates were on the high side, and Jhey would balance out.

Mr. Gajraj : I ain grateful to the hon.

}the Financial Secretary for clarify ing the position.

The point which struck l L 1169 Customs 11 TH MARCH, 1959 (Amendment) Bill 1170 for income on the low side.
I, myself, at the figure felt that the has been too conservative that that amount of income me is the one which he has con.finned : that he thought the estimate tax was a little having looked Government in suggesting I am not a pro­ tax would be collected.

phet, but I believe that when the final figures for 1959 are available you will under the head of find that the revenue Income Tax will be anything $¾ million what has been estimated.
the good of the Budget, the position That will be to and it will ease Our position here as Members of this Council is one wherein we have to be That is why I have attempted, realistic.

in making my humble contribution to weigh the pros and cons most matter, carefully.

It would appear that Govern­ ment, having decided penditure, provided.

our approval are sure that Government there would not be a reduction in the use or the consumption of many of the arti­ I do not think there is anyone cles taxed.
on the Government side who can tell us that.

feels that the I do not think we should give to these proposals unless we there is someone on the satisfy ex­ upon certain must be revenue in the following year.

and $ I million side who can between more than us that interesting It is also equally to this Indeed, in taxation that the estimate is a little on the high side, of the Gov­ that it is part of it bears out my contention that that have been worked out the hon.
the Financial Secretary it is possible from Customs because the estimates may be for these increases high and may not be realized what we If, however, we cannot realize set out on paper to collect, then, again is all of this we must ask ourselves, worth the amount of disgruntlement, illwill and things agreement, that will be created people?

some Members ernment have indicated their policy coming into the country.
If that is so, then the intake and we would not, at the end of our period what we have set out to achieve on paper.

If we fail in the start, we will have failed our people have suggested, made to pay for things which they needed.

in many ways because, they would have been of the kind in the minds of our is bound to be reduced, to see less of such articles of accounting, in the end.

dis­ as I to hear say that of revenue have achieved In para.

14 of the hon.
14 of the hon.

the Financial Lastly, I find that there has been in the minds of our people an to Government and Government Secretary's ing: depend, "The requirement statement one finds him say­ of the basic industries We want to make the people is that the pros­ on which we in agriculture perity so largely and mining should continue.

We must also have political stability and settled con­ ditions It is clear from an generally.

analysis far as of our economy that as is concerned agriculti.
:dral development we shall need considerable assistance from overseas capital .

.

. "

I want to suggest created aversion revenue.


happy and keep them in a happy frame of mind, so that they will be willing to pay their way and assist Government in British of improving the problem I am afraid, from my knowl­ however, edge and experience country, the proposals Customs (Amendment) in the sum total what we all achieve expect such a measure of the people enshrined in the Bill will not that another of our people.
That is why for continued requirement increased prosperity contentment I keep urging upon it should reconsider are enshrined than .

having these small stabs at the look for another way of bridging matter, this financial gap.

basic or prosperity is the happiness and order.

we are considering with Standing cause it does not have a memorandum setting ask Your Honour to rule on the ques­ tion.
the Government the proposals in this Bill, and, rather I rise on a point of that the Bil1 does not comply I have just observed Order No.

46 (3), be­ that which out its obJects Mr. Burnham: and reasons.

to bring about.

I will Guiana.

in this 1171 Customs 11T H MARCH, 1959 ( Amendment) Bitz 1112 Mr. Speaker: You are familiar with what happens when objections are taken late, we have been discussing and par ticipating in the Debate on this Bill for some time.

The Standing Rules.
The Standing Rules.

and Orders say that there should be objects and reasons to a Bill, but we have gone so fa:r that I think you can take it, in this instance, the obj'ects and reasons have been sufficiently made clear in the Budget Speech.

This is not a ruling for all time, but merely because we have gone so far with the Debate.

the Budget Speech You will notice in that the whole matter has been amply covered.

We will proceed because this objection has been raised too late.
that Mr. Burnham: I never argue with the Chair.

I am grateful for Your Honour's ruling, and your ruling is final.

I, however, see no provision for waiving the Standing Order in this case.

Mr. Speaker: This is not a prece dent but, in the light of the special circumstances in this matter, I rule that we proceed.

Mr. Burnham: As Your Honour pleases.


Mr: Tasker : It is clearly a truism that Customs policy is or may be a con siderable factor in our trade relations with overseas customers and suppliers, and I would like to speak briefly on the subject which the hon.

Nominated Member, Mr. Gajraj, has already touched on.

I wish to refer to our trade rela tions today and for the future with our Commonwealth partner, the Dominion of Canada.

I do so with particular feeling because, as hon.


Members know, I recently had a brief but non~the-less stimulating visit to that country.
I was there only for a few days and I was able to visit only the two main commercial cities of Montreal and Toronto, but in spite of that short period, and the I could inclement weather, extremely li' even with the not help being struck - by temperature at fifteen below zero - the incredibly vigorous, expansionist feeling in Canada, and by the Dom.in ion's very strong Commonwealth con sciousness.

that is a country their way.


Secondly, Now these two things seem to me of particular importance to British Guiana in our present age of development.

Canada is quite definitely going places and going fast.

Not even the Canadians know precisely where they are going, but they are certainly proud of the fact that they are on they have what, for the lack of a better phrase, I have called a "Commonwealth con sciousness".
In other words, they are anxious to assist other States in the Com the maximum extent monwealth to possible.

But · - and I think this is a fair proviso - they are essentially a practical people.

They believe in a free enterprise system, and they do not like Government interfemce in commerce, trade, and industry, except in periods of national emergency, as in war, when such things are necessary.
Therefore their whole approach to The West Indies and British Guiana in terms of development capital and of aid, whether technical or otherwise, is going to be in practical, hard-headed terms.

We recently had the privilege of entertaining here the strongest Trade Delegation that has ever left Canada; some 40 leading representatives of a wide variety of Canadian businesses, accompanied by one very senior civil servant, the Deputy Minister of Com I do not think that merce and Trade.
any of us who had the opportunity of attending the opening meeting of the trade talks, or of meeting individual re presentatives of that Mission, could be in any doubt of their desire to give assist ance to The West Indies and British Guiana in practical measures.

Coming as they did almost immedi the ately after Budget, a good deal of play was made with the potato tax, and it was indeed the presentaion of 1173 Customs 11TH MARCH, 1959 (Ame11dment)Bill 1174 that this was in fact an from Canada.
or not our trade relations suggested embargo on potatoes with Whether by a to be affected Canada are likely single duty like that, I think the Cana­ dian reaction the fact that people are sensitive decisions is perfectly understandable.

is nevertheless important­ that may affect their interests to The other one is the sugar industry Member, in the Commonwealth; out, enjoys a sub­ in the Canadian pointed preference over and above what it enjoys which, as the hon.

Nominated.
Nominated.

Mr. Gajraj, stantial market, elsewhere preference, affected The retention is in the interest because increased must help employment of the pound.

market of this preferential simply of Guianese production of sugar and wages.

by the devaluation moreover, which was not and a specific and problems.
people are We had here an example of the way in which people can get together discuss opportunities, take up a position prestige, both national important, and it can become very diffi­ cult to get them out of that position.

to where face and are and personal, For such inclined We have therefore at the present for moment a great deal to be grateful in respect of what Canada has done in the past; and we are most anxious to expand and develop tunities that our balance very much in our favour.
selling buying in of trade with Canada is We are her very much more than we are which are limited return.

our trade oppor­ by the fact Now all of this has been brought very much into focus by the recent Trade Mission, of the Canadian and I for one feel it is important that we should Mission not allow the impetus from that to die.

visit The flour situation dis­ over her flour exports to of Guiana.

From the position has case is another in point.


I do not think anyone would argue the fact that Canada has very thoroughly good reasons for being appointed British having 75% of our market she dropped stand that in recent wheat flour has dropped Canadian appreciably, and that there has also been a change in the exchange Canada's in the market is far position and this is a time when from satisfactory; is faced with a surplus the United States $9 billion.
of foodstuffs to 25%; and although approaching days the price of I under­ rate, Government, The United States or the Department of not going to do case, and the more specifically Agriculture, is obviously much to help the Canadian only thing it can do is to reduce the farm subsidies surpluses.

which bring about these From the British Guiana point of existing industries is the bauxite view we have two vital in which Canada is interested.
course, been founded, by Canadian never given cause for anybody Canada's economy.

expanded capital; faith in that sphere of our One, of which has industry to doubt and maintained and which has her I see from today's "Argosy" that in recently steps that can thinking in terms of the Pratt was talking and not in terms of British Senator Ottawa about the possible be taken by Canada to increase But in so trade with The West Indies.
far as Canadians are thinking about the West Indies at all, let us be clear that they are Federation, of our Guiana.

One of the penalties failure in the to join the Federation early days is that we are continuously a disadvantage is something we shall have to correct at but it does seem to me a later stage, that now would be a very good time for British clear to Canada what our position is.

To what extent can we provide new opportunities what extent our present trade with C;ma.da?

for trade with Canada?


can i we afford to increase at That in these matters.

Guiana to try to make abundantly To 1175 Customs 11TH MARCH, 1959 (Amendment) Bill 1176 [MR. TASKER] Flour presents one case.

A quota system has been suggested, but I do not see how one can impose quota restrictions on items that are already I am told under open general licence.

that other territories have overcome this problem by legislation against dumping.
Yet here in British Guiana, when we are looking for capital from any source, any Government must be chary of legislation which might appear to be discriminatory against the U.S.A.

I do not know the answer to this problem, but I feel it is high time that we explore and explain our position before the impetus afforded by this Trade Mission dies.

What, for instance, can we do about rice?

Rice was discussed in the trade talks, and the hon.
Minister of Trade and Industry introduced the idea of bartering rice for flour, but the answer was not particularly hopeful from the other side.

I hope, as some members of the Delegation said, there may be an opportunity for finding a limited market for rice in Canada.

I had hoped that by now the Manager of the B.G.

Rice Marketing Board would the to Canada.


have gone Manager of the Rice Maketing Board because this is a job for peopl.e who are trained in marketing; and if we are to do business with Canada, it will have to be done on the basis of businessmen talking to businessmen.

say I Should we not consider the possi bility of a Trade Mission to Canada?
I do not mean anything elaborate or expensive; but a small, representative Delegation to go and talk to the Cana their dians territory about matters as they affect us here.

terms and their in in sentation in British Guiana was con I understand that under the sidered.
terms of Canadian Technical Assistance to The West Indies, Canadian experts are to be loaned to the Federation; but they will be restricted to the units of the Federation, and so I do not think we should waste time wondering whether we can get any help in British Guiana from these technical officers.
any What interests me far more is the fact that there is a Trade Commissioner for Canada, not only in Jamaica but also in Trinidad, and it would seem much more feasible to approach the Canadian Government on the basis that the Trade Commissioner in Port-of-Spain should have his authority extended to cover British Guiana, so that at least we should get two, three or four times a year-whatever is required -visits from a man whose job is to represent Can adian trade and commerce in this area; who could have discussions not only with Government but also with representa tives of the business community with whom he might have specific topics to discuss.
I make these points in a wholly con structive way.

I have no criticisms what ever to offer on the way in which the Government has handled, up to now, our Canadian affairs.

All I am saying is that I do hope that we shall not let grow cold the enormous wealth of goodwill which has been generated, I believe, by the Mission, and by the long and friendly business association between Canada and ourselves.
Now, it seems to me, is the time when we should do every thing possible to start building vigorously on that basis, and I hope that we shall hear from the Government that it has firm and practical plans to that end.

Finally, there is the 4uestion of permanent representation.

During the visit of the Canadian Trade Mission here it was reported that the hon.
Minister of Trade and Industry had had discussions with Mr. Roberts, the Deputy Minister of Trade and Commerce in Ottawa, and that the question of Canadian repre- Mr. Jackson: In defending Govern ment's taxation proposals yesterday the hon.
the Financial Secretary said he had been advised that the increase..'>, when put into effect, will add only .9 of one point to the Index of consumer prices, that is with respect to the urban area, and one point with respect to the Ll 77 Customs 11TH MARCH, 1959 (Amendment) Bill 1178 treated rural areas, and from the manner in which he the situation one gathered the impression that the in crease would impose no tremendous hardship upon consumers, for we are reminded of the fact that the tax pro- posals are on consumption primarily.
It is quite all right for the statistician to say that these increases will add only .9 of one point to the Index, as far as it relates to the urban areas, and one point as far as it relates to the rural areas, but will the statistician and the Financial Secretary say what that means in terms of cash?
in some respects be A .9 of one point rise in the Index related must to the expenditure of money, and if an increase in the Index by the point system must involve an increase in the expendi ture of money, then it is clear to us that our experts should say what is the amount of money to be spent on those items on an overall basis.

Is it an indi cation that the food sub-index would be increased by .9 of one point, or will it be that this .9 of one point is the total in If it is .9 crease in the whole Index?
of one point of the whole Index it will not give a true reflection of the effect it the pockets of con will have upon sumers, for that is the average taken for the broad pattern, and since the tax pro posals mainly concern foodstuffs it will be seen that the hardships which will be created will be greater than indicated by the mere figure which has been quoted by the statisticians.
To give an idea of how these tax proposals will affect the consumer I crave Your Honour's indulgence to refer to the Survey of Family Expenditure of 1956 to show that even before the pre sent increases in the prices of commodi ties or foodstuffs the situation of the worker was extremely bad.

The survey revealed that the average expenditure of a family of five for one week was $26.77.

Of that amount $13.86 was spent on foodstuffs alone.
When we relate the wages which are paid with this expendi ture (for this purpose I am taking into the minimum wage of consideration $2.52 per day set by the Government) and calculate an entire week's earrungs at 5½ days per week, the worker would be in receipt of $13.86.

In spite of the fact that in 1956 the survey revealed that that sum of money was spent on food alone the worker's wage has remained as it was in 1954.
A week's wage of $13.86 placed along side the sum of $12.89 for food, leaves 97 cents for expenditure on other items.

The survey also indicated that with re the average expen spect to clothing diture was $3.55, rent; school fees, etc.

took $3.35 of the worker's earnings, and medicine and other items took the to $7.87.

The average expenditure weekly expenditure based upon the figures given left the worker at that time with a deficit of $14.67.
Therefore it is clear, or it ought to be clear to the Government, that any in crease in the cost to the consumer of any the Government is commodity which imposing by these tax proposals, must create additional hardship upon the worker and his family.

But even if it is argued that that is the average, and that in specific cases the situation would not be the same, one is willing to halve the deficit of $14.67 and make it $7.34.
It means that the worker will have to live on credit which he will not be able to re pay because of the fact that his earnings are below what it takes to maintain a family.

Even if you calculated a man's total earnings on a six-day week, you will find a large amount of money unaccounted for in so far as his weekly earnings are It is also known that a large concerned.

number of workers is not in receipt of the minimum wage acknowledged by the Government.
Some people get $2 a day and others less than that, so it is clear that the people who are regularly em ployed at a wage rate below that fixed by the Government must feel this burden far greater than the people who are re ceiving the correct rate of $2.52 per day.

That is not the entire picture.

There are thousands of people who are either unemployed or underemployed.

How 1179 Customs 11 TH MARCH, I 959 (Amendment) Bill · 1180 lMR.

JACKSON] do they make out at the moment?


How did they make out before these tax pro posals were put into operation?

How did they maintain their families and themselves?

whether the cost of living goes up and fathers cannot find money to feed their children?

Mr. Ram Karran: What are you talking about?

On a previous occasion I had to re fer to the extent of unemployment and under-employment in this country.
I have again to refer to the Report to the Government of British Guiana on Em ployment, Unemployment and Under employment in the Colony in 1956.

Page 47, para.

22 reads as follows: "22.

The number of unemployed persons registered at the employment ex changes was only 2,500 as against a total unemployed labour force of 29,600, of whom 11,100 were in the urban areas."

Para.

24 of this Report should make some of the hon.


Members who are sitting around this Table realize that something is radically wrong with the new tax proposals, and that they should change the stand they are taking on them .

.

I will read para.

24 : "24.

Just over 21,000 households out of a total of 81,000 households ex perienced some unemployment during mid-July 1956, and in 5,000 of these households every worker-member was un employed.

Thirty-six per cent.

of all un employed males and 28 per cent.


of all unemployed females were married or were partners in common-law unions."

How can this Government, in the face of these figures, proceed to increase the cost of food to these people who are liv ing under the circumstances set out in the Report?

Is it that the existence of these people is of no concern to this Gov Is it that Government, taken ernment?

as a whole, is unmindful of this sit Is the Government unmindful uation?
of the fact that the people are at the moment unable to supply their children of tender age with the things they need for Is Government closing its eyes to the fact that many a father cannot secure employment to pro vide the necessary essentials for his fam Is Government so unconcerned ily?

about this matter that it does not care their existence?
Mr. Jackson: A Government which seeks to develop the country must h.ave as one of its objectives not only the question of putting schemes into oper ation, but the fixing of the standard of living which can be maintained.

Gov ernment must endeavour to add to the number of people who are employed and raise the level of wages from time t0 If Government proposes to in time.
crease the tax on certain items before it has reached the stage I have referred to, then Government must be accused of not giving enough consideration to the overall picture to the well being of the inhabitants of the country.

This is not due to the fact that the It is not people in this country are lazy.

due to the fact that there is work to be done and the people do not want to It is a fact that there is no work work.

for them to do.
for them to do.

If there is no work for the people to do, how can they earn money to spend on food and other neces sities of life?

The present circumstances do not warrant the increase of the tax proposals which have been put before us for consideration.

With your permission, Sir, I would like to refer to para.

20 which states: "20.

Nearly all of the unemployed were able-bodied persons.

less than 6 per cent.

being partially disabled."


These tax proposals will affect the people who are consumers very severely.

If, before these increases were proposed, there was a big gap between their earn ings and expenditure, then the situation must be worse today than it was yester It is essential to point out that the day.

Government, in taxing certain consumer articles, interfere with the habits of our people.
We have been told in this Council and else where that the proposal to increase cus- successfully can 1181 Customs llTHMARCH, 1959 (Amendment) Bill 1182 the times, themselves and I am afraid behind they may find the times at all times.

duties customs on certain articles.

articles is de­ wall for locally I am not aware of where the Government has toms duties signed to be a protective produced any condition in the past increased any item by 1200%.

The increase the tax on imported for in his speech the hon.
the Financial Secretary that the duty was mentioned 25c.

per hundred pounds.

Having in­ creased the amount by $3.00, it makes the duty $3.25 on every hundred of potatoes imported Is it not ridiculous?

been increased into this Colony.

Other items have by between 12% to 15%.

on on is 1200 % potatoes pounds modern conditions Watches an excuse and clocks activities.
can never be a luxury in th.ese days when people live so far from their work-places and have to get about uuder increased accept siou from his staff, but not on several occasions.

world, imposed of necessity, watches and clocks and taxed accordingly.

ment goes even further.

I think in no other part of the is An employer on one occa­ But this Govern­ for lateness classified as bxuries of may even when additional taxation would one find But the tax on potatoes bas been by 1200%.
Is it to be won­ increased dered at that the Canadian considered it as virtually bargo on Canadian Trade Mission an em­ placing potatoes?

As I had cause to say on another this attitude if we .

are taking occasion, then we must expect the repercussion which will follow it.

I am afraid in this case the repercussion greater than Government are not accusing erately is saying all its aspects and given the fullest con­ sideration which it was entitled ceive.
trying to kill something, but one was not seen in is going to be far expected.

Government of delib­ that the picture to re­ We We have been told in this Chamber what percentage of for and there­ the users that a motor car is a luxury, fore the intention is to prevent from enjoying a of this type of vehicle life of luxury.

No oue has been able to show in this Council cars in this Colony is used solely of hire cars pleasure, hon.
Nominated are on the roads-the Member, to a firm belongs a number of hire cars.

which operates We must take the whole picture into ac­ count and remember the streets try districts of Georgetown by the hundreds.

that hire cars ply and the coun­ though thousands Mr. Tasker, Chamber.

included Gov,ernment has regarded certain used by the people of this coun­ things try as items of luxury, and in and clocks.
Now these items are watches the clock in I sit here exactly opposite this Council I notice that since and I yesterday feel hopelessly lost when I am here be­ cause I cannot by the time that be guided clock is supposed to give to Members this Council.

bers feel the_ same way.

But clocks of I am sure other it bas not been working, have been classified hon.

Mem­ items of luxury.

Of course, of the Government will not have our ex­ perience to the clock, and they may it has stopped.
It is significant times that of the read the signs of their backs are turned they cannot not know that because as the Ministers How false is the premise that a motor car is a luxury!

In the Report to earlier, which I referred there is a very which I now ask per­ passage si�ni!icant nussion to quote : "Just over 9,000 workers without means of conveyance miles to work; 4,000 with transport travel over IO miles to work".
upwards of 3 travel And if it is, then one must ask why does Government If that is the case, is not a motor car a necessity?

the question, to impose additional people who must use this mode of trans­ portation between work-places their homes and their over all these distances.
seek upon burdebs has not It is true that Government used as 'buses, proposed 'which are used to transport their homes ·to ·· their work-places people from or to tax vehicles 1183 Customs 11TH MARCH, 1959 (Amendmellt) Bill 1184 [MR. JACKSON] during their normal period of activity in any one day.

If Members of the Govern ment or their spokesman in this matter, the hon.
the Financial Secretary, had to travel in 'buses in the Georgetown area they would find that they might have to spend much more time waiting for a 'bus than it would take them to walk to their destination.

It is a thousanj times worse for people who live in the country dis tricts, especially now that they are forced to use the 'buses anyway.
Is it not a fact that the number of 'buses which ply between Georgetown and the West Coast of Berbice is re stricted, and a large number of people find it difficult to get to their various des tinations in it not ·cre·ate greater difficulty if 'buses became the only vehicles they could get about ih?

Many persons would not be able to travel at all.

that area?

Would Some may argue that we have a rail service.


That is true, but the railway was laid down at a time when there was no extensive development of the country such as we have now, and consequently the railway stations are often far re moved from the habitation of the p~ople who use the railway service.
If the mil way provided feeder services, then the people would have no grouse, but the use of hire cars becomes inevitable for them, and if Members of the Govern ment ever had the occasion to travel by 'bus in the country districts they would see that a _passenger can do no better than sit near a fish basket, a basket of mangoes or other commodities.

I feel we are going to see a vicious circle arising out of the increased duty on cars.
The purchaser will say, "If I am going to pay mote for my hire car, I am going to charge more for my fares".

I am sure the Financial Secretary himself has by now realized, and that Members of the Government have rea:l ized that since this tax has been imposed upon the people.,..

not only have the prices of ·commodities gone up but the r in prices of other things have been It is the normal practice in our creased.

economic structure, so that it is not diffi cult to see how far this will go.
The F inancial Secretary referred to the profits of people engaged in dis tribution.

How can he stop people making a margin of profit which is reasonable?

If the Government itself starts this process of spiralling, it is only natural that people engaged in business will follow the pattern, because in order increases to raise revenue Government the duty on commodities.
It is therefore clear that the premise which has been used to declare that motor cars should be included in the number of items labelled "luxuries" is based upon a misconcep tion and misunderstanding of the c.ntire situation.

The same applies to bicycles and I am familiar with a motor cycles.

number of persons who use bicycles and motorized cycles in the performance of their daily duties.

Some of them travel 12 miles or more along the country road.
There was a time when they did so on an ordinary pedal cycle, and possi bly Government wishes to go back to those days.

How can Government dass these vehicles as luxuries when people them in the performance of their use duties?

Anything that is used in the per formance of one's duties for efficiency and effectiveness cannot be regarded as a luxury.
re-examine Therefore it is to be hoped that Government will these matters and alter its stand with respect to the proposals increased duty for which, given effect to, will cre,a:te hard ship upon the people who use these motorized cycles, not for pleasure but for work.

Eventually those who WOl'k with Government will ask for increased travelling allowances with respect to motor cars., motor cycles and motorized bicycles.

Of course, Government is all powerful and need not budge.

Some times.
Some times.

Government of take-it-or-leave-it attitude.

adopting a It need not ·yield to pressure until it reaches a point where it is bound accused is 1185 Customs 11TH MARCH, 1959 ( Amendment) Bill 1186 take cognizance of a to situation, but it should heed the will of the people whom some of us represent in this Council.
I said that there is restriction on the number of motor cars, and that if that restriction was removed I am sure that Government would get the revenue re quired as a result of having more cars, than by trying to get it in the manner proposed.

Government says that there are great potentialities in the production of wooden furniture and other items which it has in mind.

The Financial Secretary speaks in terms of the potential, but what is the potential worth to us in our present posi tion?
A potential is not the actual thing, and what we want to deal with is the It is true that Govern actual position.

ment has in mind an expansion of minor industries so that more brooms and brushes may be made locally, but what is the position?

There is not at the moment a sufficient number of brooms made locally to supply the people of this Colony.
The Minor lndustri.es Depart ment cannot at the moment say that it can supply the local demand for brooms and brushes, so it follows that Govern ment is putting the cart before the horse to say it is offering protection to an in dustry which does not exist or, if it exists at all, is only in a stage of research and infancy.

It is wrong for Government to impose additional taxation upon im ported articles in the circwmtances.
Per haps Government and the I· inancial Secretary remember that many people use the ribs of a coconut leaf as brooms, and perhaps until the Minier Industries Department can supply the type of brooms such as are imported, uovern ment feels that we ought to tell the people to go back to the general use of wbat are known as "pointer" brooms.

Gov ernment might even consider the manu facture of such brooms.
But even if one were to be a bit funny in one's observa tions, it must be admitted that it is wrong in principle and in practice for Govern ment to impose additional taxation upon imported articles when it cannot supply local substitutes.

I am no expert or scientist but in its taxation proposals Government has in creased the duty on tinned vegetables which will include tomatoes.

It is known that tomatoes cannot be successfully grown in all parts of this.
country, and farmers who have lost that there are almost their entire crops because of un suitable soil conditions.

Is there any jus for imposing an in tification, therfore, creased duty on tomatoes when Govern ment cannot guarantee an adequate supply at any one time?

Does Govern ment say that there is an abundant supply of tomatoes with storage facilities to pre serve supplies against the time when they are out of season?

The same applies to grapefruit and other fruit juices.
We know that when grapefruit and other citrus fruit are in season there is an abundant supply, but there is no means by which they can be kept for any long period of time.

There are no storage facilities, and we have not yet got canning facilities which would ensure a purely local product for con., sumption.
Government's entire taxation pro posals are likely to cause repercussions like to which this country would not experience, and I feel very strongly that it should yield to the wishes of the people and take cognizance of the views ex pressed by their representatives in this Council.

There has never been, to my knowledge, such a reaction to taxation in this country as there has proposals been to the present proposals.

Does one ever take into account the will of the people?
If there was ever an occasion where the will of the people has been expressed, this is it.

Despite the Government's propaganda machinery which has been put into operation; despite the number of posters which have been put in several parts of the Colony, the people still feel that the taxation js unfair and unjust.

Therefore Govern ment should give consideration to the views of hon.

Members in this Council who represent the people as a whole.
1 1 1 1187 Customs 11TH MARCH, 1959 (Amendmem) Bill 1188 [MR. JACKSON] Whether a Member is Nominated or Elected he represents somebody in Brit ish Guiana.

I trust that the views which have been' expressed by Messrs. Gajraj and Tasker with respect to the international situation will be carefully considered by the Government.

Mr. Tello: I desire to express my views on this Bill, and I propose to do so very briefly.
I think it will be correct to say that this Bill can be regarded as an anti-farmer, anti-peasant one.

I will have to think of it as a measure dia• metrically opposed to the consumers in British Guiana and, finally, it seems to have as its unwritten object the cramp ing of the standard of living and the way of life in so far as the working man is concerned.

- A lot has been said about trespass ing on the eating habits of the people of British Guiana.
It has been mentioned that his type of diet is one that spreads right through the homes of aver::ige Guianese.

I want to remind this Council, and I want it to be placed on record that it is positively true that our people have been brought up on potatoes from their cradle days.

Our infants have been taught to look forward to the re inforcement of their liquid diet by pota I doubt that anyone in this Coun toes.
cil can say that as yet we have found a substitute for the potato that would be acceptable to the infants in their post cradle days.

Neither can anybody say that Government has yet, in spite of the activities of the Minister of Natural Resources, found a reasonable acceptable , substitute for the potato.

I The imposition of this tax.

can have two serious effects: it can force people, reluctantly, to change their eating habits and give some of them dyspepsia, etc.
; and secondly, it will force upon them an increase in the cost of living.

I think the hon.

Member for Georgetown North has certainly empha sized the point that it is unfair, unjust and, wicked to force people to buy a commodity despite the fact that you have not yet provided easy access to it.

The Co-operative Union has expressed the view that it has co-oper ated with Government and has succeeded in producing certain things abundantly.
It admits, however, that the produce can not be distributed throughout the Colony because of the lack of su!licient vision on the part of Government to provide · the necessary distribution centres and a lot of produce has to be dumped.

is asking This Government the people in this Colony to deprive them selves of a commodity that they like.

Government has not only failed to pro vide a proper substitute, but even when it tries to sell the produce it cannot reach I understand that quite enough people.
recently it cost the Government as much as £ 10 a day to distribute the value of $20 of local produce.

I also under stand that when the produce reaches the housewife the price is prohibitive.

The comparison between the price of the local produce and the imported potato is known to everybody.

It is Eke com paring precious jewels and precious stones with the regular commodity on the market.

There is a big difference in price.


Furthe,r, there is a confession or an admission on the part of the Government that its distribution system is far from being adequate, or has any claim to per It is true that while there is a fection.

superabundance of seasonal, local pro duce the items do not reach the people as early as they should.

The system of distribution of potato makes it difficult for people to secure the article.
As far as I see it, whether it is the intention of Government or not, it has certainly succeeded in working out a measure that will force the working man to raise his cost of living.

It will also make it more difficult for him to carry the extra burden of his unemployed friend.

I talce the view that this Bill is anti-farmer and anti-peasant.

.
.

L [189 Customs 11 TH MARCH, ] 959 (Amendment) Bill 1190 I am glad to see that the Minister of Natural Resources has resumed his seat, because I believe that in his anxiety to serve the Government he did not notice the point made by the hon.
Nomin ated Member, Mr. Gajraj, that while he is anxious to observe proper trade rela tions with our international friends an embargo had been placed on potatoes; it was Government's intention to obtain more revenue from that source and at the same time protect local produce; he had forgotten tannias,, potatoes and yams are only taxed 20c.

per hundred pounds and plantains at Sc.

These items are in direct competition with the local producer.
that However, the Minister, in his anxiety to co-operate with his colleagues, has not recognized that, and he has associated himself with the question of raising taxation of potatoes.

The result is that he has made the competition much keener between the producers of potatoes in the Islands and the producers of p<,ta toes and tannias, etc., in British Guiana.

This Bill is a very unkind blow to the farmers whom we seek to protect.
This Bill is doing no real service to the community; it is doing no real service to British Guiana, because I doubt whether very much revenue will be derived from this measure.

While I agree.

that it will the eating not change, or remove, habits of our people, it will jeopar dize the future of our local farmer.

While we are producing no potatoes to speak of we are trying to protect our farmers against competition.
On the other hand we produce plantains, eddoes and tannias, etc., and we are not giving sufficie.nt protection to them.

I really do not know what is the true object behind this Bill, because it is op posed to the interests of the customer, peasant farmer, and to the working man it is a deliberate financial blow.
To intro duce increased taxation at a time when the unemployment problem is rather diffi cult, when Government is still searching for ways and means of solving the un employment problem is bad timing.

It is bad, at this stage, to introduce new taxa tion on our most popular diet - a diet that is as popular as rice is to certain people.

Taxing potatoes in British Guiana is in Barbados.

If like taxing com meal the Government of Barbados attempted such a tax it would cause a small riot there.
In British Guiana the oeople have shown there protest against this measure in several forms.

They have passed a resolution against this taxation, and they have every constitutional means of opposing it.

employed Let us examine the position at the; moment.

The workers are feeling the squeeze by the introduction of this tax, and they are crying out against the high cost of living that has been forced upon them.

The working man has complained about this tax because his wages are not always the best.
He must complain about it because tremen dous amount of unemployment and under-employment in this country, and he is looked upon as the most vulnerable person to absorb the new tax.

there is a In this particular case we find com mercial people and everybody against this tax.

Several people have said that the tax on the potato is detrimental to this country, and we must present a united front in opposing it.
The employer on the other hand, speaking through the Cham ber of Commerce, has also condemned the tax because everybody realizes that it will result in the raising of the cost of living.

Some Members of the Govern ment are saying that this is intended to protect the farmer, but even the local producers themselves are saying that it will cost them more to live nowadays.

Government must have given some thought to it.


As Mr. Gajraj pointed out, even if Government did, several major to have been given points seemed not consideration.

The hon.

Nominated Member, Mr. Tasker, made comments on this question, too.
I feel that the mere fact that a high powered Mission singled oot this tax for ; 1 I i 1 • 1191 Customs 11 TH MARCH, 1959 (Amendment) Bill 1192 (MR. TELLO] an expression of their opinion and con sidered it an embargo, revealed the handwriting on the wall, heed of which should be taken.

We must remember th at we enjoy tremendous trade benefits from Canada.

If Canada were to withdraw the sugar preference and force us to sell in the open world market, what a calamity that would be.
We already have the problems surrounding the sugar workers' desire for a higher standard of living.

I find that this infallible Government needs no advice : once their minds are made up, nothing can change them.

I would say that they should not impose this tax because it might defeat to have capital invested their intention here, both in the interest of the Colony and of the investor.
I would still say to them, "if at this early stage, when people are only visiting you and people are only investigating you and are looking on, you bear your present attitude, what would be your future attitude?"

Why select this time to impose a tax on something which bears no comparison with any in this country, a tax thing produced which your own people are opposed to?
I am not sufficiently in a position this Government, but I am to warn nevertheless asking Government to take time off and see the handwriting on the wall.

Already the cost of living is high and already opportunities for employ ment are becoming scarcer.

As yet we have not seen any large-scale enterprise to absorb all these unemployed people and under-employed people.

intimated that taxation We certainly had a new approach on this occasion.

The hon.
The hon.

the Financial Secretary, speaking for himself on this Bill and, no doubt, as spokesman for his is colleagues another form of relieving unemployment, because out of new taxation we will have enough money to provide work-I would add to that: if the people live long enough in their starvation, but then, the Finan cial Secretary might be only voicing the opinion of his Elected colleagues.
After he said that, I took time off and read once more the "People's Pro gressive Party Manifesto Programme and Policy", and I found that in it a pro mise was made which this Bill now seeks to break.

That promise was quoted in the Hansard of last year's Budget De bate and is precisely correct; I quote from that: "We will raise and collect more by way of direct taxation from those who are able to pay and reduce the very high incidence of indirect taxation which falls heavily on the poor."
What other measure of indirect taxation can be more certain to reach and affect the pockets of the poor than I do not think this tax on potatoes?

Government can find any other means to reach his stomach and his pockets.

One of the unwritten objects of this Bill is to make life a difficult proposition for the small man, and it is regrettable that this state of affairs should exist.
The champions of the downtrodden people are today the champions who seek to carry up the cost of living of the small man, and to take away from the poor man his right to decide what to eat and what not to eat.

I say again that this tax is an unfortunate decision when the Majority Party went out of its way to make a pro mise to the electorate.

Let us now exan1ine the generosity of this Government and see to what extent it goes.
Government has pro posed a reduction in the price of canvas shoes with rubber soles - the footwear of the working-man.

I suppose we have to be thankful for small mercies.

There is also to be a reduction on the duty on I am reliably informed cotton fabric.

that the footwear spoken of will be re- d uced in price by a little less than four I understand also that cents per pair.

it is safe to say that the average working man uses from three to four pairs of this footwear each year.
So it means that Government's generosity in this respect really means a saving by the working man of the very laudable figure of 12 to 16 cents per year.

Where cotton fabrics are concerned, the effect of the r l I L I 193 Customs I 1 TH MARCH, 1959 (Amendment) Bill 1194 • proposed reduction of the duty by 3 % will be, I understand, not more than two cents per yard, and the average dress or suit takes six yards to be made up.
So that a lady or a gentleman will save as much as 12 cents on each dress or suit, that is to say, about 48 cents a year.

Mr. Speaker: adjournment now: sume later?

We can take the do you wish to re- Mr. Tello: Yes, Sir.

Mr. Speaker: The sitting is now suspended until five o'clock.
RESUMPTION Council resumed at 5 p.m. CUSTOMS (AMENDMENT) Bll,L Mr. Tello (resuming) : At the ad journment I was trying to examine this• very generous gesture on the part of the Government which can be reasonably and fairly measured to the extent of 16 cents per year as a contribution towards .

rubber soled shoes, and between 30 and 40 cents per year in respect of cotton fabrics.
While this action must be com mended we must look at the other side of the picture, and I would like to point out that one can destroy his own good intentions by instituting other measures.

These reductions in duty represent about 4 cents per pair in respect of canvas shoes, and about 12 cents per suit in respect of cotton fabrics, while in the case of potatoes, a very popular article .of food, we find that the increase in duty is from 24 cents per 100 lbs.
to $3 per 100 lbs., and a conservative estiman:, shows that the increased cost of potatoes to tl.e average person will be about $1 per month.

So that while the Government in its very kind gesture offers the poor working man a reduction in prices and encour ages him to wear cheaper footwear and clothing, and asks him to adjust his standard of dress by wearing canvas shoes and cotton fabrics which are not popular today, it has imposed a rise in his cost of living estimated at $12 per year.
So that while on the one hand the average working man will benefit to the extent of 60 cents per year by the reduction of the duty on canvas sh~ and cotton fabrics, his potatoes will cost him $12 more per year.

His cost of living will therefore be increased to the It is true that extent of $11.40 a year.
we must face facts, and my reason for pointing these things out is to give the Government the opportunity for a second thought and to see the wisdom of re adjusting these measures so that its good intention to assist the small man may be fulfilled.

The Financial Secretary said that this increased taxation is necessary be cause money cannot be obtained other wise.

He also did me the kind favour of saying that I was correct in my refer ence to 1932-35.
He said I was correct in saying that certain palliative works were carried out by Government in those days to assist in relieving the unemploy ment situation, but he went on to explain that the Government of that time was successful in obtaining money to carry out those works.

I understand that be cause this Government cannot raise money like the Government of 1932 it is necessary to impose further burdens on the population.
Must we understand that because this Government failed to negotiate a loan, or to secure a grant, the alternative is to tax the already heavily taxed people and allow many people to continue to be unemployed at a higher cost of living?

Must I understand that it is the duty of the masses to accept fur ther taxation because the Government in office lacks the ability to raise money where other countries are succeeding in doing so?
Is it suggested that because the Members 0f the present Government are so deeply interested in the constitu tional progress of this country that they are relieved of the responsibility to find ways and means of raising money other than by increased taxation?
The point was stressed by one of the Ministers that it is the fault of the I .~ ~- l l 95 Customs 11 TH MARCH, 1959 (Amendment) Bill 1196 to develop [MR. TELLO] Colonial Office and the colonial system, and he did it so impressively that one would be inclined to believe that the col onial system is something to fight against, but are we going to live over other mem ories until such time as we are relieved of the burden of this unfortunate system?
Is it true that because of the system and the attitude of the Coloianl Office we cannot get money this country?

Let us look across at our neighbours in Barbados, a small island.

I am told that we have an island in the Essequibo River as large as Barbados, but small as Barbados is we find people there demonstrating their ability to lead and to occupy the important office of Ministers.
They went to the Colonial Office and were sufficiently impressive that a loan of $2 million dollars for Bar bados was over-subscribed 20 times.

That is the sort of Government we are a Government that can looking for - raise money without additional taxation, a Government that realizes that it must raise money without taxation when its people are unemployed.

I may be con irrelevant but 1 am simply sidered answering the argument of the Financial Secretary.
Mr. Speaker: Please keep as close as possible to the subject.

Mr, Tello: If Government pursues its present policy of taxation in a form that will create enemies when we are very much in need of friends, it will mean that we will have to pursue a long term policy of tax imposition.

I say that rather than pursue that policy let us examine the question a second time and relieve the people of this unnecessary taxation, by adopting some other means of raising money.
It is on record that in almost every case when we on this side of the Table have moved a Motion making recommendations to the Govern ment, we have been out-voted by sheer weight of numbers on the Government side.

When people think they are infal lible it is a waste of time trying to advise them, but I still feel that I should point L out the tiny flaws which may be so micro scopic that they are unable to recognize them.
If it is Government's intention to pursue this policy of taxation until such time as this country is granted full self government I think it is an unfair and unnecessary imposition on the working people.

I think they would be more willing to join in the constitutional battle with full stomachs than with empty ones.
I am not saying that these tax increases will not bring a little more money into the Treasury, but from the point of view of maintaining good international and internal relations I say that the gamble is too great, and the timing is very bad.

The ta~tion proposals under this Bill will have very unfortunate effects.

They will carry up the cost of living to a great number of people who can ill afford to pay more for things they need, apart from the fact that there is a high percent age of unemployment.
In addition to that, the people who may benefit from the increased taxation, the commercial community, have said that it is a bad thing for British Guiana as a whole, and that they do not want such profits.

I am appealing to the Government to review its tax proposals sympathetically and impartially, and find some new means of withdrawing this Bill so as to give the people of this coun try a chance to breathe in peace and tranquillity.

the hon.
the hon.

Mr. Burnham: I am anxious to congratulate the Financial Secretary not only upon his ability in presenting the Budget Speech on the Second Reading of the particular Bill, but for his ability in proselytizing his colleagues in the Executive Council.

Indeed he is a man of uncommon ability, for what he has done this year is the very opposite to what the Leader of the Majority Party, I am sure, would have done three or four years ago.
When the Budget for 1955 was pre sented in keeping with the tradition of other British Guiana Budgets, the tax on ~ "• 1197 Customs j fTH MARCH , 1959 (Amendment) Bill 1198 cigarettes, rum and beer was increased.
The Minister of Trade and Industry who, at that time, did not hold a port folio in the Government, though conced ing that it was possible to argue that the consumption of rum and certain other articles was unnecessary, argued that it was not for Government to attempt to criticize the consumption of articles when that consumption had become part of the life of the community.

The hon.
The hon.

Gentleman whom, on this occasion, I take as my original, pointed out that it was a lack of imagination on the part of the then hon.

Financial Sec retary to seek to raise additional revenue merely by taxing things: 'tlhat were in common or general use.

In an issue of a certain weekly news paper known as "Thunder" dated 8th January, 1955, the hon.
Gentleman who is now the Minister of Trade and Indus try actually laid down his thesis: that sugar and bauxite were left untouched, while the poor man's drink, rum, the poor man's commodity, cigarettes, the proletariat's beverage, beer, had been taxed.

That, said the hon.

Gentleman , was indicative of the then Financial Sec retary, perpetuating the class prejudice of his predecessor, Sir Frank McDavid.

But today the tax proposals of 1959 weigh even more heavily upon the poor man than those of 1955.
May I repeat my congratulations to the hon.

the Financial Secretary who has converted his colleague on his right.

Are we to understand that this one-time champion of the proletariat, the champ ion of the working man's rights has now been infected with the class prejudice with which he credited the last Financial Secretary but one?
Are we to under stand that the results of this alliance be tween the Elected Ministers and the re presentatives of the Colonial OJfice have been so catastrophic so far as the people of British Guiana are concerned, especially the working people, that there has been a sudden change in policy?

It is, of course, for the Majority Party, through its leader, to say whether it has changed its class; whether it is now prepared to copy from Sir Frank Mc.!
David; or whether the increase of taxa tion on these same items which he did not want to approve in 1955 should be approved in 1959 because they have been introduced by an allegedly Repre sentative Government.

I charge this Government - at this point I can draw no distinction between the two sections of the Government - their faces are many, but their voices are one in so far as the tax proposals are concerned.
Not only is this Government unimaginative and cynical, but it does not matter to them that these tax pro posals will mean the raising of the cost of living to the working man.

We would entertain and ack nowledge the statistical ability of the hon.

the Financial Secretary if he can tell us that these tax proposals will not mean an increase of over 29 cents per week to the average working class family.
But even if the increase were 1 c. it would be an imposition on the poor worker be cause, save to those who live in ivory towers and do not come in contact with the working class, it is known to all that in the majority of cases the people do not get sufficiently large wages to live like human beings.

An increase of 29c.
An increase of 29c.

per week may mean nothing to the Members of the Government; to some people it is a mere drop in the ocean, but for the poor man an additional cent may be the last straw on the camel's back.

Therefore to re- gale us with the statement that the in crease will be a mere 29c.

per week is not good enough.


What we should have been regaled with and what should have been brought to us is that the working man in British Guiana gets only $2.52 per day when he works with Govern ment, but with some employers he gets even less .

The Financial spokesman of the Government cannot assume that the worker is getting more than enough to live on, and can therefore absorb this in- __J , .

.., .

...,.._,,_;.
.., .

...,.._,,_;.

;a\ .. 1199 Customs 11TH MARCH, 1959 ( Amendment) Bill 1200 [MR. BURNHAM] crease which we are told is in the interest of the Colony and will create a better future for our children.

Last year with commendable sophistry the hon.

the Financial Secre tary was able to persuade the majority of this Council, whose support he auto matically had, that the tax on rum was not a tax on the poor man's drink.
I will not attempt, at this stage, to point out what I consider to be the fallacy in that argument.

Not because there is no argument, as I hear sotto voce, but be cause there will be an opportunity when the other Bill comes up for Second Reading to go very carefully into the matter.

'C..

If the hon.

the Financial Secretary took the opportunity to read what his colleague on his right wrote on page 2 in the "Thunder" dated 8th January, 1955, he would understand a lot of things.
He is intelligent, and I am sure he will be able to absorb what is written there.

However, we are not dealing with the tax on rum today, we are deal ing with the new tax proposals apart from rum and sugar.

These taxation proposals which are bound up with im importation of port duties and various items into the country are caus ing a lot of dissatisfaction.

the May I offer one more congratulation to the hon.

the Financial Secretary.


He kept us on our toes and on the edges of our seats with 28 pages of felicitous lan guage before he dropped the bombshell.

These new taxation proposals by means hope springs eter of which he hopes - nal in the Government's breast - to raise $2 million from the collection of duties which are sought to be introduced in this Bill and which are foreshadowed in the Budget Speech are described as falling into purely revenue raising and purely protective.
Let us consider the various duties that have been imposed.

Before I go I have not further let me say this : the Government got a quarrel with taxation.

Let me on every item of the devil his due and admit give that I am in agreement with the increased taxation on whisky and other imported I agree with that abso alcoholic drink.

lutely.

He who in British Guiana, whose native wine is rum, prefers to acquire the aristocratic taste for whisky and other imported alcoholic liqueurs, must pay for them.
I have absolutely no objection to the $1 increase per bottle for whisky and other imported alcohol.

Nor do I break a lance with the Government or enter into controversy with them over the increased duty on imported cigarettes.

Those who, having travelled, would pre fer the English or American blends of tobacco, or whose throats are too deli cate for local Clipper, Diamond or Light house must pay for their taste or spend more money because of the delicacy of I have no quarrel there.

their throats.
their throats.

But, Mr. Speaker, what is it but copying from Sir Frank McDavid who was condemned by the hon.

Minister of Trade and Industry ?

What is it but copy ing from th~t gentleman to impose a tax on tobacco and cigarettes manufactured I hope that the Government locally?
will not be so naYve as to seek support from the statement by the Manager of the Demerara Tobacco Company to the effect that, as he sees it, there is no objec tion to the increased tax on tobacco im ported for the manufacture of cigarettes, which will result in a rise in the cost of local cigarettes.
The Manager of the Demcrara To bacco Company and the sole distributors, Messrs. J.P. Santos & Co., Ltd., whose Manager agreed with the Manager of the Demerara Tobacco Company, have They do not nothing to lose by it.

smoke all the cigarettes they distribute or produce.

This is a tax that passes on, and since tobacco is habit-forming, one is likely to find the poor man who is a smoker sacrificing something so as to able to buy cigarettes.

I think it is wicked to tax local cigarettes any further.
now that their imagination and new 1201 Customs llTH MARCH.

1959 (Amendme11t) Bill 1202 having We are not dealing they want but, says can afford make an effort to buf and the cost of living with saints.

We The mores, not morals.

are discussing is habit­ knows nicotine Government forming.

I speak as a smoker, than the Mem­ perhaps more experience in that respect.

bers of the Government will still People their cigarettes, will go up.
It is not because to stop people from smoking people Secretary, the Financial to pay for these luxuries.

majority ing a luxury?

should guess that I should for this Government non-smokers.

religious movement and to stop smoking and stop drinking though I would object to live in such a monastery-I would to dissuade people from making use of these commodities.

not be at all surprised of so many a new If we were starting But where a is smok­ nonsense wanted Guianese - not be put forward here.
But I Such absolute grant them the right are smokers, consists of people right, a luxury one, Is that a luxury?

Do they is purely .g mainly of perfume-all that Chanel No.

5 is a luxury.

revenue-raising consistin I accept Cosmetics.

want the men and women of British Guiana to go unkempt?

we do not go around unkempt.

English may be mistaken their origin .

ceive the English luxury.

and I words, about certain but as I con- a camera is a is not my native language, and meanings, Cameras?
language Not Guianese: is this when as luxuries?

that Government is scraping up here and there, But what new language are being in the 20th century, watches I accused Earlier described Government of being unimaginative.

1 must concede is in the field of new language of words.

One gets the im­ definitions pression picking to find language whole unsavoury to the verbal Financial that a watch is a luxury - the time­ piece by which a man is able to get to work early is a luxury.

that the hon.
that the hon.

Minister who knows human dustry, tell me what could have happened if I had no watch.
with which to adorn the then they go exercise; and financial expert, the of Trade and In­ can Secretary, I have no doubt failings, and they have and he discovers and From the tax on tobacco, Govern­ and, says the insight in duty is indicative ment hopes to raise $450,000 the Financial Secretary, speaking on be­ Government, half of his well-knit from such a small increase large revenue of the large increase used every year.
amount of cigarettes into the perfectly A marvellous but what he does not say is obvious, on the man who that it is an imposition smokes and whose wages are $2.52 per day and who has a wife and children.

It is no sense saying that such a man not smoke.

After all, like any should other human being, he is entitled stimulant to his minor vices.

of some sort, and he is entitled British to a To be serious: this Government is The Financial Sec­ and rouge Guiana will be altered not being serious.
retary does not think that the face of bea­ by uty in aids will cost a the fact that the artificial think so when more.

Does he really little more for their our women have to pay ?

Mr. Speaker, I am lipstick in this experienced not particularly field.

I yield pride of place to many of my colleagues thought that this Government Guiana a number of to have in British dowdy and unadorned women.
have those when you start taxing the Financial Se.cretary calls 'artificial aids' for these aids make a woman look more attractive.

woman becomes folk, and we must remember those ladies The appearance to her men­ a stimulant that not all at this Table, but I never who use these artificial intended of the You will what aids Then following the order in the one notes that after the tax en Budget, palms o!I Secretary the Financial tobacco Then the tax on rum.

More of that later.
More of that later.

the excise Then we come to the point where it would appear that Government, through its spokesman, English certain has decided words.

tax on beer.

More of that later.

to redefine The next group of imports which Government has sele.cted for additional the 1203 Customs 11TH MARCH, 1959 (Amendmeilt) Bill 1104 [MR.. BURNHAM] are the wives of Members of the Execu tive Council and highly paid business and professional men.

They are working girls, working for $9 or $10 a week, sometimes.
Did you know that?

They are also the wives of men working for $15 a week, the fian cees of men who work for $13.52 a, week.

Did you know that?

If you did, then why did you come here and tell us that the face of British Guiana will not be altered by the fact that its artificiaJ aids will cost a little more?

Revenue-raising again and lack of imagination again -the 7 % increase in the import duty on private motor cars, motor cycles and motorized bicycles.

This does not surprise me.


Their lack of validity or argument and their lack of im agination must find support in the fact that Lady Megan Lloyd George said this or Professor Somebody said that.

They I am convinced must have an orignal.

that this 7 % tax on motor cars, motor ised cycles and motor cycles came from the idea of the luxury tax that was impo sed on these items in Trinidad two years ago.
I have found, from my own exper ience, that copying from another person's book has this weakness : that you may copy what you do not understand.

As a student I have been caught; as a teacher I have caught others.

That is what has happened to the Members of our Gov ernment.

They saw that Dr. Eric Willams had imposed extra taxation· on motor cars and motor cycles in Trinidad, but they did not note that in Trinidad motor cars not exceeding 3,000 lbs.

pay $4.80 per 100 lbs.

with 10% luxury tax.


But even at that level the same cars in British imposition of this Gu1ana, before the 7% increased tax, cost between $500 and $600 more than they do in T rinidad.

Ask the ear dealers.

The disgusting thing about this type of tax by way of import duty is that you are not soaking the rich to feed the poor; you are soaking the poor because the rich will import and will charge a per centage not merely on c.i.f.

plus duty.
plus duty.

So there can be no question that the con sumer in this case, the person who uses a car, will have to pay even more than the 7% increased duty, because it is going to be 7 % plus the cost.

Most people who buy motor cars cannot afford to pay cash; they are not like certain indi that they have viduals who boast bought everything in life cash.
Most people have to pay a percentage on the unpaid balance, which has gone up al ready as a result of the 7 % increased tax, and then they have to pay 8% on that.

So that the cost of a car is going to go up much more than 7 % .

Car users fall into two categories those who own cars and those who hire cars.

Around the Table most of u s own cars.

I suppose it can be said that certain people can afford to pay more for their cars.
I agree with that, and that is why I contend that if there is to be an increase on the import duty on cars it should be an increase on cars above a certain price - those American cars, those cars like the Mercedes, those expensive cars which only people of a certain affluence or notional affluence can think of buying.
those luxury cars, I will concede that I own an Ameri can car and I must pay more import duty, but think of the little civil servant, the little clerk working for $200 per month, struggling with a wife and children, who cannot find accommoda tion in Georgetown where he works and bites his nails, pinches and scrapes, like the Government is scraping now, and he gets a small house in Campbellville, New Town or Kitty, or a little further up the East Coast.
We have no 'bus ser vice in this country worthy of the name, to bring him to the City at regular hours and take him back home at regular hours.

Our 'bus service is noted for its irregularity of schedule.

He there fore finds that it is not a bad thing to buy a small car to ensure that he gets to work punctually.

L 1205 Customs 11TH MA RCH , 1959 (Amendment-) Bill 1206 Then there is the other category of persons who hire the cars in which they drive.
Which owner of a hire car is a philanthropist; that if he has to pay more for his car he will charge the same fare to those who use it?

Those who use In cars in that way are poor people.

places like the Corentyne, the Esse quibo Coast, Wakenaam and Leguan, the East and West Banks there is no railway, and people there have to use cars.

For all such people there is going to be an increase in the cost of living because, as I understand it, the cost of travelling is part of the cost of living.
I wonder if the Financial Secretary calculated the likely increase and took it into account when he was telling us about the 29 cents per week increase.

Of course he has the last word, and we will no doubt get some enlightenment as to whether or not the increased cost of transport to those who have to use hire cars had been taken into account when he was telling us about a mere 29 cents.

The Financial Secretary (Mr. Essex): No, 27 cents.


Mr. Burnham: That is what I ad mire in the Financial Secretary; he is so good at figures that he never takes a 6 for a 9.

We come now to the tax on I congratulate the Financial potatoes.

Secretary on the way he calculates the duty.


He knows that the Minister of Natural Resources has been saying that we eat to much imported potatoes for an agricultural country; that we should consume more of our agricultural pro ducts, and that we would have to pass legislation to make our people under stand that they must eat what is locally produced.

The tax on potatoes is partly pro tective and partly revenue raising.
The Financial Secretary seems the revenue-raising man, while the Minister of Natural Resources seems to be the protective man.

With that keen sense of propriety which is always his, the Financial Secretary did not say much on to be the protective aspects of this tax.

He saw that if he allowed his colleagues to get away with this he would have more money for the Treasury.

But is this really a protective tax?

A protective tax must be prohibitive, absolutely prohibi If the tax on potatoes had been tive.
put up to about $12 per 100 lbs.

I would have said that the Minister of Natural Resources, as is his wont, is serious about what he is saying, and therefore he wants u s Guianese not to eat any more potatoes.

But the present tax, although it is a heavy increase, is not sufficiently high to be prohibitive or to chase people away from potatoes, but sufficiently high to make an indent on people's pockets.
The Financial Secretary, with his usual conservatism, tells us in paragraph 78 of his Budget Statement, that, allow ing for a reduction in demand, he anti cipates that from the potato tax and the other small taxes be will collect addi tional revenue of $550,000.

Quite nice, but what is the result?

I have calcu lated it and I find that it is an increase of $2.76 per 100 lbs.

The man who uses potatoes is going to have to pay more for his potatoes, and the sugar worker, about whose miseries the P.P.P.
or the Majority Party is always crying, are going to have their cost of living further increased.

I have been told, but I will not be lieve it, that a certain Minister was sug- .

gesting that cassava might be substituted I will not believe for potatoes in curry.

that in the ranks of the Ministers there is anyone so unfamiliar with the relative consistencies of the two vegetables.
the country; We are told that our people driak too much; that drinking too much rum is a bad thing and not in the best interest of that an agricultural country should not be importing such a lar&e percentage of potatoes and so on.

It 1s not necessary for Government to find a substitute for the potato which is imported; to educate the people and sliow them how curried cassava can be a substi tute for curried ahloo.

I would have suggested curried eddoes.


1207 Customs 11TH MARCH, 1959 ( Amendment) Bill 1208 Mr. Speaker: What is ahloo?

Mr. Burnham: Ahloo is an English word today; I thought you were familiar with the term.

Mr. Speaker: I thought you said some time ago that a new meaning had been put to the words of the hon.

the I do not know Financial Secretary.

whether you are copying from him.

Mr. Burnham: I am not saying that ahloo is a substitute for English I think it will be necessary to potatoes.
educate the people to use substitutes.

Do not put the cart before the horse.

Use your propaganda machine, the G.I.S.

newspaper-- Mr. Speaker: You cannot talk about 'your propaganda machine'.

Mr. Burnham: It is the Govern ment's propaganda machine, and every Government must have a propaganda machine.

Hitler and Stalin were not the only people to discover that.
Through the propaganda machinery, the Agricul tural Department and every available means - perhaps a start can be made through the Home Economic Centres - Government should endeavour to show people how eddoes or cassava could be substituted for the potato, and pari passu endeavour to ensure that the quality of the substitute is constant.

I sympathize with the hon.


Minister of Natural Resources so far as this matter is concerned, but I think in the execution of what he has in mind he and his col leagues have blundered terribly because the only result from this tax is to send up the cost of living for the poor man.

I am also conceding that it means a higher cost of living to the people in better circumstances.

Nevertheless, the poor man has no reserves to fall back on.

In fact he starts off in the red and ends in the red.
The people in more affluent circumstances can, of course, go into their savings and cut down on real luxuries.

I '-- The tax on canned vegetables, pre served fruit, jams, jellies and canned soups, etc., I have no quarrel with.

I would like to find out from the hon.

the Financial Secretary, however, what he really means when he states in para.

7 8 on page 32 of his Budget Speech which is referable to this Bill: " .

.

.
.

.

as regards canned vegetables of which a comparatively small amount is imported 10% has been added to the ad valorem rate and the same has been done for fruit juices, preserved fruit, jams, jellies and canned soups, all of which or substitutes for them are being or could be produced in the country."

is so, I was not aware of the fact that we can always get a sufficient quantity of citrus fruit to supply everybody with fruit juice, nor was I aware of the fact If that we were canning fruit juices.
the Minister of that then Natural Resources the Minis and ter of Trade and Industry should have worked out plans for the setting up of a canning industry in this Colony.

The Minister of Natural Resources, or rather the Minister of Trade and Industry who gives the Releases now should have in f,ormed the people through the PtesE that he proposed to set up a Canning Factory.
This side of the Table would have read about it in the Press because we are seldom told anything in this Council regarding the plans of Govern ment.

I have no quarrel with this tax, but I find that para.

78 is rather mis leading.

I feel that so far as fruit juices are concerned, no tax should be imposed on fruit juices coming from the West Indies.

I would like to see imposed a 600% tax juices on fruit from South Africa.
I think it is wrong and unfair to impose a 10% increase tax on fruit juices imported from the Wes:tJ Indies because we do not have a sufficient quan tity of fruit juices to provide for every body in the Colony.

imported We have been told - I am sorry the Minister of Labour, Health and Housing is not here, because I am sure she will agree with me - that fruit juices 1209 Customs • 11 TH MARCH , ] 959 (Amendment) Bill 1210 are good for the health not only of grow I am ing children, but even for adults.
of the opinion that Government should increased the question of reconsider taxation on fruit juices.

There is one other item of increased taxation which does not earn my dis favour, and it is the tax on ready-made I agree that our tailors, seam-.

clothing.

stresses and milliners in British Guiana are sufficiently competent to produce satisfactory clothing.

I, myself, have never bought a suit that was not made in British Guiana.
As I understand it, this tax goes even further and puts a tax on imported shirts.

I agree with that.

Let it not be said that some Mem bers on this side of the Table criticize the Government for the sake of mere cri ticism.

Let it be understood that we criticize Government because they are nai:ve or unimaginative as is shown in the If a majority of their tax proposals.
man wants to wear an Arrow or Van Heusen shirt when a proper Windsor shirt is available, then he should pay a little more for the imported article.

I can offer Government no con gratulations for increasing the tax on motor cycles and motorized bicycles.

People are now asked to oav 30% pre ferential tariff in British Guiana on this item, whereas in Tri..ilidad it is only 10%.
The per capita earning in Trinidad is higher than in British Guiana, and in is more capacity for Trinidad there absorbing employment.

It cannot be said by any stretch of imagination, or even with the aid of the greatest elasticity of language that an auto cycle or a motorized bicycle is a luxury.

Have you ever seen the workers coming down from the East Coast on mornings on their way to work?
They cannot find anywhere in Georgetown to live, and they have to go all the way to Plaisance and Beterverwagting in order to find housing accommodation.

These people cannot afford to buy a motor car or a motor cycle, but now that they are trying to buy an auto cycle, G0vernment has decided to increase the tax on this item.

The auto cycle is not a luxury, it is merely a quick and easy means of transport to and from work as far as the workers are concerned.
It would appear that in stretching here and there in an effort to find money this Government, to use a colloquial expression, "will take a cent off a dead man's eye".

Do you want to tell me that auto cycles should be taxed?

The little auto cycle which the waterfront worker uses, which the is it that you are going carpenter uses - to tax as a luxury?
But, says the Finan cial Secretary, "we hope as a result of this tax to raise $1,870,000 approxi mately, and then as we are a little short still, we shall touch up sugar."

This is one respect where I think the Majority Party is a little consistent, because in 1951 it was saying, "tax sugar".

But we shall deal with that at another time.

The farce of this is the belief that the "Opposition" is here to suggest to them what they ought to have done.
That is to misunderstand the purpose of the role of the Opposition.

The Oppo sition is not the schoolmaster.

The Opposition is here to show you how stupid what you did is.

Of course, the Opposition may not be successful, be cause with stupidity the gods themselves have fought in vain.

It is not even to tell you what you ought to have done or ought not to have done - but in any case this Government is not receptive at all.
We heard the Financial Secretary saying that he does not interfere in any one's business and he does not expect anyone to interfere in his, when Mr.

If D' Aguiar spoke of the Banks tax.

you cannot paddle your own canoe, get out and stand on land, or you are going to drown.

But I cannot expect better of a Government that has followed a path marked out by Sir Frank McDavid and has gone to Colonial Office officials in a wild quest for a few shekels.
This is not the vanguard of the proletariat but the new class into which this Majority Party has made itself.

i _J 1211 Customs 11 TH MARCH, 1959 (Amendment) Bill 1212 [MR. BURNHAM] Has the Government considered that already there is a great deal of rumbling among the workers; that they are already complaining that they are underpaid - I say that with justification; that they are already making wage de mands - I say that with justification.
Does this Government not realize_ that it is the largest employer of labour?

Does this Government not see that as a result of this -increased taxation which falls on the working-class, it is going to be forced to pay more money to its employees - because I cannot imagine the P .P .P.

re fusing justifiable demands of the work ers, and I cannot imagine so-called pro their prole letariat tarian principles so quickly.
It calcu lates that it will be able to raise $2 mil lion, but by the time it bas collected that amount, it will have to pay out to its em ployees more money, so that it will be digging a big hole to fill a big bole.

leaders forgetting Where is the sense of it?

The fact is that under present conditions in British Guiana, it is hoped to raise enough money to make a substantial contribu tion, at least in 1959, to the Develop ment Programme.

That is a fact.

Let us try to understand it.


But why go about it by taxing the poor?

More of that anon.

You will have to pay more money to the unskilled workers in the transport services, the Rice Marketing Board, and Water Street.

Then there are the work ers in the Unclassified Service of Gov ernment.

You will have to pay them more because they are already asking for more, in particular the Post Office workers.
The financial expert says that the increase of 29 cents more per week- Mr. Speaker: Twenty-seven cents.

Mr. Bumluun: I am grateful to you, Mr. Speaker.

Twenty-seven cents.

Where you start you end and you end where you start; running around in cir cles.

To achieve what?

To achieve what you failed to achieve when you I I ~ ~ went to the United Kingdom last year?

You included a number of impressive things in your demands and those who could assist you did not.
Now you come to take it out of the poor people.

Are you so deaf that you cannot hear the cries of the people?

Are you so blind that you cannot see their tears?

Are you so shut off from the world of the unemployed that you cannot under stand their sufferings?

,I am not talking about the three Members of the "mar~ riage" to the right.

They will say they their rooms are are not politicians - sealed tight.

But this is an increase in the burdens of the poor people, and for what?
The Minister of Trade lQld Industry (Dr. Jagan): We have heard a great deal this evening and the previous even ing with respect to the tax proposals in this Bill.

Members opposite have been They talking about unemployment.

have been asking, what is the Govern ment doing to provide work for those who are hungry?

We were told there is no point in imposing taxation, because other people will have to pay it out in increased wages.
We were also told that in 1955 some members of the People's Progressive Party said "so-and-so" and here it is, they are doing something else now - they are taxing cigarettes, beer and rum.

The hon.

Member who spoke last seems to forget his dialectics when it suits him.

He forgot to mention that in 1955 we had a different situation in this coun try.

I need not repeat the remarks I made a few evenings ago when the hon.
Member was not here, but everyone knows that the Interim Government was squandering money on the people of this country and it was the duty of any G~ianese to protest against any form of to be eventually taxation which was If he wasted, squandered or mis-spent.

says now that our protest then against a tax on beer, alcohol and tobacco was wrong, then we can use the argument of "No tax the 13 American colonies - ation without representation".

He seems to have forgotten little things like that.
[213 Customs lln-r M/\RCH, 1959 (Amendment) Bill 1214 True we cannot claim to say that the present situation is tantamount to a complete political freedom or independ ence, but even within the restricted powers we have today, we should lay the foundation so the country will achieve prosperity in the shortest possi ble time.

that Mr. Burnham: By taxing the poor.

Mr. Speaker: Order.

Dr. Jagan: The hon.

Member should have referred to the whole article.

Mr. Burnham: Mr. Speaket': Order.

I have it here.


Dr. Jagan: Then he would have seen that mention was made in it to other things too.

He failed to mention the tax on sugar, and I must remind him that it was included in that artide.

Mr. Burnham: I did mention it, and I observed that that was the only consistent thing Government had done.

Dr. Jagan: Is the hon.

Member suggesting that we should levy a tax on bauxite when that industry has been hit by a recession?

We have heard a lot of talk.

The hon.


Member said he was not here to give his advice.

We do not need his advice, but at least hon.

Members opposite should be able to tell the Ma .. jority Party, "here, you stupid fellows; you are so stupid that you do not know is the the country - how to run way to do it."

this Not only this country but every country has to develop by taking very hard decisions, and to do it the hard way.
All of the economic theorists who are now examining the problems of back ward territories are today speaking about the difficulties which are encountered by territories.

My the under-developed Friend, Mr. Tello, is going to an econ., omic conference sponsored, I think, by the I .C.F.T.U.

Why the I .C.F.T.U., a trade union organization, has suddenly become interested in this big question of economics in under-developed regions?
It is because it now realizes that there are going to be political explosions in the under-developed territories of the world, and that trade unions must indeed take great care and notice of what is happen ing in those under-developed territories.

Ct is not a problem peculiar to British Guiana; is all around, in Latin America, in the Middle East and in the Far East.

Latin America is probably in a worse condition than British Guiana today.

it Where is the money to come from?


Our taxation proposals aim at taxing luxury goods and non-essentials, and pro tective taxes.

It is a truism that a country can only develop out of its savings.

This country, unfortunately, does not save very much.

We have no control over profits made in this country and being exported outside.

If Mr. D'Aguiar and his beer company make nearly $¾ million profit and choose to send it out to Barbados there is no control over such capital.
One can only hope and pray that it will be invested right here.

This applies also to Bauxite Companies, In surance Companies, the Banks and other industrial concerns.

I do not know if hon.

Members on the opposite side are going to suggest that Government should take over the Ban.ks, the Insurance Com panies, the Bauxite Companies, the Dem erara Electric Company, and so forth.

If not, please tell us where is the money to come from to provide employment.

We all know how many people are unemployed.


There is no point in beating the air about that.

We can all shed croco dile tears about it, but the time comes when something has to be done, and al though the decisions may not be pala table, those decisions have to be taken.

Taxes on luxuries and non-essentials what else can we tax?
As I have said, one can nationalize all the industries and tell the Banks and the various Companies that not a penny should be taken out of the country, but I leave that decision to the "Opposition".

Mr, Burnham; We are not Stalinists.

j ~ ~ 1215 Customs ll TH MARCH, 1959 (Amendment) Bill 1216 to the purchasing power Dr. Jagao : The hon.

Member re ferred in Trinidad.

Certainly the national income per caput is higher in Trinidad than Fortunately, it is in British Guiana.
Trinidad has oil and pitch, and we know that in a country where there is "black gold" the national income is high, gen erally speaking.

We are faced with a Development Programme in this country.

Under the original estimates planned by the Interim Government there was to be expended this year the sum of $21.

7 million.

Loans provided, plus loans to things will only be raised, plus other give us about $16½ million.
Is it, there fore, unjust to ask those who are em ployed today in this country to pay a little more so that the 20 per cent.

who find work may have a little cannot bite?

That is all that is suggested at the moment in these taxation proposals.

It is all well and good to compare one period with another, but conditions differ at different times.

the basic It has been suggested that we should not tax wrist watches, cameras, motor cars and so forth.
In a poor country we know that things are food, clothing and shelter.

One does not say that the Guianese people must not enjoy luxuries or improve their standard of living, but certainly when there is starva tion amongst us is it not right to ask those who are beyond that stage to pay a little more for so-called luxuries?

We have heard that in the period 1930-32 a the salaries of civil cut was made in servants.

We have not done that.

A Member referred to the Gorsuch Report, but we have to wait and see.
A remark was made about digging a hole to fill a hole, and that in taking this decision to impose additional taxa tion we have made ourselves unpopular in the process.

I think the hon.

Member who made that observation should be very happy about that, for it should pro vide a golden opportunity for him.

What is wrong in asking people to pay a little bit more for watches, cameras and motor cars?

$2½ million is going out of the Colony every year for the ~ ~ ... purchase of motor cars.

The same hon.
The same hon.

Member referred to the fact that we do not have a proper 'bus service.

It is not that we have not a proper 'bus service but many of our people will not use the 'buses.

Whether they can afford a motor or not it is a fact.

Some of them will not use the bus, and the time has come when Guianese must learn to live within I see nothing wrong in their means.

trying to get something from the $2½ million that is going abroad to purchase motor cars.

The hon.
The hon.

Member knows that in the United Kingdom there is a larger percentage of cars on the road, and also a larger percentage of old cars than we have on our roads in British Guiana.

Mr. Burnham: Have you roads here?

Dr. Jagan: Britain is far more wealthy than British Guiana, but we want to enjoy vie luxuries that our national income cannot afford.
There fore it is right that those who want to enjoy such luxuries should pay a little more, and that is why Government have taxed some of these items: rum, cigar ettes, beer, whisky and so on.

These items can be put under the non-essential I am told that we spend as category.

much as $2 million to $3 million on this country.

alcoholic beverages This is certainly a substantial slice of our national income going in that direction.
We will either have to spend less and defer some of our productive enterprises such as factories, manufacturing plants, etc., or increase taxation and utilize the money for providing more jobs and so on.

We are unable to do anything more.

in I do not regard this tax as iniqui tious, as claimed by some hon.

Members on the opposite side of the Table.

I think the tax on lY>ver should be reserved for another occasion, and we need not go into that at the present moment.
Suffice it to say that at the present moment the Members of the Government have no other alternative than to impose taxation in order to provide more employment and so on .

1217 Customs 1 lTll MARCH, 1951) ( Amendment) Bill 121 S What some hon.
Members have failed to note is the fact that, if this country is to have a big development programme, it will be necessary for Gov­ funds for ernment to find the necessary financing We should certainly ment Programme problem increase not be able to do the things we have in mind.

non-essentials, and we cannot get big loans from outside of the Colony there will be no progress for the people in the community.
It will be observed from the Budget Speech that we have to find $5 million this year to finance loans which have been raised overseas.

It is money time we begin thinking in this country.

I am sure we could get in this money from the savings country as well as from the profits made by investors.

of unemployment, taxation at this stage we would such a program.me.

like to have a larger Develop­ in order to solve the but unless we of raising of people I think the hon.
the Financial Secre­ tary referred to these things in his Budget Speech.

He said that where the devel­ opment is not done as a result of taxation it has to be done by way of loans.

To in this Coun­ use a common expression cil: "Every school boy knows that when one borrows est and sinking fund charges on the loan".

money one has to pay inter­ Mr. Burnham: But you wanted $200 million!
This Government is doing every­ industries in to encourage thing possible this Colony so that the masses will be provided I see no with employment.

of hon.

Members merit in the criticisms so far as this tax is concerned.

Govern­ ment is prepared cism which can be given very serious by Government.

The hon.

consideration men­ Member, Mr. Tasker, Nominated tioned to im­ endeavour prove our Commonwealth particularly that we should with Canada.
sound criti­ to accept relations, Dr. Jagan: We have been criticized for not solving the unemployment problem.

of money, we are told that we are mak­ ing a mistake.

When we ask for large sums Mr. Burnham: You submitted "gu esstimates".
cer­ This, I have no doubt, will be given by the Government, consideration we will have to strengthen serious because tain ties, and more than that, we will for trade new avenues have to explore � Guiana with which British with countdes has had long trading and relationships; there is a great deal of value in what he mentioned about finding possibilities Canada.

out what are the our trade with of extending j places, Dr .
.Jagan: When we seek to procure we are told some time ago that you cannot eat not go there.

When we try to we are told that we are a loan from certain we should increase taxation, making the poor people suffer.

I men­ tioned vour cake and still have it.

Experts are telling us today that even independent countries as this Government It is known that finance is con-:eme.d.

great arc· experiencing those countries difficulties plans.
with their development I f.eel that we should do everything sible to solve our unemployment probleru.

are in the same strait so far as finds itself jacket pos­ So far as the tax on productive I would have that we would have been praised the steps which we have taken, the growth of indus­ Guiana-jams, items are concerned, thought for taking so as to encourage tries in British sweets, things help to provide the Guianese want above all, to relieve situation unemployment time.
more employment That is what we ready-made in their small way will certainly clothing-all the desperate at the present jellies, people.

these for If we are prepared to continue spending our money on luxuries and Members: Hear, hear.
J 1 I 1219 Customs [ ITH MARCH, 1959 (Amendment) Bill 1220 difficult on economic it a on this Sometimes as I sit here and speaking the flow of words makes for me to realize that I am to men who are conscious of the Mr. Hubbard: I will not take up much of the time of this Council question.

listen to Members matters, little listening fact that we are operating of free enterprise nomic activity of very small portion of the economic activity of the whole country.
I get the impression that the Government has everything and must do everything.

and where the eco­ the Government at times that Members feel under a system is a In the circumstances of 01.11" exist­ ence we have to realize that the most which a Government can do is to create the conditions country can apply their initiative their enterprise development dustries which of the and to the and their resources the country needs.
of the services the citizens whereby and the in­ ec­ My friends on this side of the of a distinguished That is the advice onomist.

Table continually vice from qualified have taken their to me that in the taxation before consideration advice, us the Government that portion and I commend them urge that we seek ad­ We suggestion economists.

and it seems proposals put has taken into of Mr. Alder's for that.

else But Mr. Adler had something with our rate growth, and he thought it to say.
He was impressed of economic could continue.

if there is political abroad, pursues a capital policy formation.

stability at home and y and if Government successfull aiming at a high rate· of He said it can happen Now capital is savings applied in · a way, and capital formation is are made we do not when savings As I said earlier, particular made possible possible.

live under an economic Government is ernment, the encouragement largely however, capital inhabits can give a lead, and of consumer everything.
The Gov­ system where the formation.

spending the advice of the econom­ What the Government seeks to do, is to me from these proposals, it appears again to follow ist I mentioned, sumer spending something which is then to be turned into public capital Programme.
and to take out of con­ by way of taxation, in the Development approximating $2 million, and invested Mr. Speaker, we have suffered of our exist­ in , have physical features a small population that certain ence, principally inhibited our economic growth.

But we are virtually at the end of that constrict­ ing period and we are now ready to advance.

During last year we had the advantage of a visit from a very dis­ tinguished Economist, Adler.
Mr. Adler scrutinized nomic affairs our Development Programu1e: Mr. John H. our eco­ and bad this to say about even if the grant contributions like I of managed will Programmes that is desirable have the money, and "Development everything else unpleasant habit of costing the Programme which the Government is now considering is no exception.
would hope that as large a proportion the total as can be possibly be paid for out of Government because from the United Kingdom Government continue there is bound to remain a large part of the Programme funds will have opinion ment to burden the country's ing c.apacity help to pay for still and fourth 5 year Programme be obtained sonable it would be an error of judge­ debt carry­ to a point at which loans-to another and a third - cannot at rea­ or cannot be obtained to be sought.
In my for which Joan revenue terms."

Mr. Speaker: I think it is time to adjourn.

Mr. Hubbard: · Well, I am not fin­ ished, Sir.

Mr. Speaker: Well, you can con­ tinue tomorrow.

Council Jwo o'clock the next day.

adjourned at 7 p.m. until