APNU+AFC wants constitutional protection of ‘oil money’ for future generations

Last Updated on Friday, 26 January 2024, 21:32 by Denis Chabrol

A Partnership for National Unity+Alliance For Change (APNU+AFC) parliamentarian, Volda Lawrence on Friday  recommended that there be a constitutionally entrenched amount of Guyana’s oil revenues that must be saved for future generations in the Natural Resources Fund (NRF).

“This House must now consider a minimum percentage value in the NRF that must remain as inter-generational savings and this must be protected by a two-thirds majority of this House. Yes, that is one of many constitutional matters for this House,” said Ms Lawrence, a Chartered Accountant.

Senior financial sector sources recently told Demerara Waves Online News that so far, Guyana has saved more than US$800 million in the NRF since oil production began in 2019.

She also said the opposition coalition would also like to see changes to ensure that monies are set aside as a buffer to counter oil price volatility and detailed definition of the use and accounting for monies withdrawn from the NRF.

Delivering her contribution to the 2024 National Budget debate, she said the opposition wanted to have an amount approved by a supermajority of the 65-seat National Assembly which means that both APNU+AFC and the incumbent People’s Progressive Party Civic (PPPC) would have to reach consensus before such an amendment is passed

Ms Lawrence also vowed that the opposition would vigorously resist an increase in the amount of money that government could withdraw from the National Resource Fund (NRF). “Mr Speaker, I believe that we on this side of the House will resist any change to the withdrawal rules that will lessen the amount for inter-generational savings,” she said.

According to the opposition lawmaker, she had hoped that laws would have been amended for the transparent accounting of the taxes to be paid to the State’s coffers by oil companies.

She also protested government’s plan to raise Guyana’s debt ceiling a third time in less than five years, indicating  government’s “increasing reliance on debt financing” based on Guyana’s projected stock of public and publicly guaranteed debt which now stands at 49 percent between 2023 at  GY$4.5 billion and 2024 at GY$6.2 billion. “The government’s persistent tampering of the borrowing ceilings over the last three years is indicative of the absence 0f a medium term plan and debt strategy,” said Ms Lawrence, a former Chairman of the Public Accounts Committee (PAC) that scrutinises public spending.

The former government minister disagreed that such borrowings were prudent and sustainable.

Opposition Leader Aubrey Norton added that government’s attitude of unsustainable spending carries over to the investment committee of the NRF. He remarked that government had still not appointed the Opposition’s choice for the Investment Committee despite repeatedly being reminded to do so. “Is it that they are hiding activities of the fund, which they know will be revealed once our representative is  appointed?,” Mr Norton remarked.

He restated his coalition’s promises to provide direct and indirect cash transfers; improved health, education, housing, electricity, water and transportation and reduce and eventually eradicate poverty. The 6.5 percent salary increase, he indicated, indicated was insufficient and so Guyanese needed a livable wage plus a GY$150,000 income tax threshold. “That should be easy to do in this 0il economy,” he said.