Georgetown: The Private Sector Commission (PSC) met with the business community to discuss the recent perceived downturn in business. The discussion dealt with matters of employee retrenchment to the sudden increase in crime, spending on Government projects and matters related to how the clearing of goods and the processing of Investment agreements are affecting the Business Community.
Business representatives mentioned that they have noticed a drop in consumer spending and expectations. Projects are being delayed / suspended due to the cessation of payments on some projects. Foreign and local business partners have put a hold on some investments.
The business community is concerned about the persistent “bottle necks” when doing business with the Guyana Revenue Authority (GRA). It is the view of the business community that GRA needs to expand its taxpayer’s bracket and focus on those individuals who have been evading taxes for too long. To this end the Minister of finance was written to and meetings were held with the top brass of the GRA and the PSC.
The PSC is concerned that the current situation can lead to a high level of non-performing loans AND IS EXTREMELY CONCERNED ABOUT THE INTENDED REMOVAL OF OVER 60 BILLION in Government funds that are deposited at the Commercial Banks. There is an increased level of defaulting loans being recorded in some sectors of the Economy.
The PSC is of the opinion that once there is a decline in consumer expectations and spending, it can create drop in sales and profits. This concern would force businesses to freeze on hiring and inevitably the retrenchment of employees; some businesses have already started laying-off.
While the PSC commends the actions taken by the Government and the Guyana Police Force in some arrest and the solving of recent crimes, it is the belief of the PSC that more should be done to prevent and detect crimes and restore the confidence in the law enforcement.
There has been a call for stronger police presence in and around the city; businesses are concerned about their employees and customers being robbed in the streets and at their homes.
The PSC has recognised that the economy has taken a downturn since 2014, but the present administration has an opportunity to restore this confidence, by releasing a budget that would stimulate spending and has in fact said this to the Government of Guyana through the Minister of Finance with whom we met some time ago. We are of the opinion that this will cause businesses to re-invest in projects, which may allow Commercial Banks to increase their loan portfolio; thus injecting needed funds into the economy.
Additionally, the Government needs to ensure the efficiency of GRA and to restart spending through issuance on contracts, etc.
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