…raises other concerns with PPP MP
Businesses operating in the local tourism sector, particularly those in the hinterland, are calling on Government to reduce taxes for interior air travel and fuel.
This call comes amid concerns over the rise in cost for these services and commodities, which, to a large extent, is affecting border trade between Guyana and Brazil, especially in Lethem.
This observation was made by Opposition Member of Parliament (MP) and former Government Minister Irfaan Ali, who met with members of the business community in Region Nine (Upper Takutu-Upper Essequibo) last weekend.
During his visit, the Opposition MP said that the local business community complained also about being constrained by new rules implemented by the Brazilian authorities with regard to trade.
Some business owners said that while commercial goods were processed at the border between the two countries every day, that has now been reduced to two days – Mondays and Fridays.
The business community said despite raising this concern with the local Brazilian Consulate and the Guyana Government, nothing has been done. This is severely affecting their business operations.
Meanwhile, contrary to the national road transport agreement, private vehicles are now required to get permission to use the usual route and cannot travel on weekends. The MP said this new initiative has created hardship on the business community and could stymie development.
The community said the lack of representation from Guyanese authorities was another concern.
Another observation made by Ali was that the local business community in that Region was being neglected as large contracts were going to contractors outside the Region and Brazilian companies, with mostly Brazilian workers.
“The business community also complained bitterly about the condition of the Lethem to Georgetown trail which is getting worse. Some sections are now impassable with travel time and damage to vehicles increasing substantially. The deplorable condition has increased transportation cost,” he stated.
Further, a new development is now taking place in Bonfin, Brazil with the authorities signing a decree to have shops there not subjected to state tax. The business community is worried about the effect this would have on their businesses, as most of them depend heavily on Brazilian traffic.
The MP said, “They are of the view that the Brazilian authorities had been continuously taking strong and continuous steps to secure business on their side of the border with no action or policy initiative.” In this regard, they want a free zone and improved infrastructure to reduce cost of transportation, among other issues.
It was explained that electricity cost about 50 per cent in Bonfin of what it did in Lethem, according to the business community. “This is a major hindrance to business and development in the Region. The business community are of the view that this needs to be corrected if they are to effectively compete,” he added.
The former Minister was also told by the business community that special emphasis must be placed on low-interest loans to help stimulate activity and prospects in the local economy.
He said residents and the business community complained about lack of consultation on infrastructure projects by Central Government. “The present Industrial Site road came in for great criticism. Residents and business people are of the view that the four-lane road is unnecessary and are of the view that the money can be used more effectively on additional urgent infrastructure needs,” he explained.
