State funding of private entertainment shows and tax waivers for some promoters have drawn criticism from opposition leaders who argue about government responsibility and the effective use of public dollars, among other concerns.
Specifically, the state’s involvement in the recent ‘Jamzone Summer Break Weekend’ has come under heavy scrutiny, and questions have been raised as to how much state resources were pumped into the concerts, in addition to how big of a tax break the promoters received.
Opposition leader, Robert Corbin accused the government of squandering state resources for “politically, sponsored activities”, and he cited the recent Hits and Jams entertainment concerts. He said the administration is providing tax exemptions to foreign artistes such as Grammy winner Ne-Yo, while the “victims of the Clico debacle” are still waiting on a positive word.
Office of the President Press and Publicity Officer Kwame McCoy, responding to questions, said government considers entertainment “important” and that it support events which bring people together on a large scale.
Tourism Minister, Manniram Prashad said government did not offer any actual funding to the Jamzone promotional team this year, noting that the promoters received a tax holiday as part of a private sector initiative. “We want more promoters to come onboard during this summer break,” he said, adding that tourists flood into the country during this period.
Prashad cited ‘Biker’s Fest’ as another promotional event which was well supported. He said that for a two-week period in December, the government will also consider waiving taxes for any group producing a quality show. Asked about the quantum of the tax waivers, Persaud said he has no idea.
However, Corbin argued that state sponsorship of a major, privately promoted entertainment event must be a matter of serious concern to all Guyanese taxpayers. “On what basis was that decision made when small Guyanese promoters are struggling to eke out a living and provide entertainment in village communities (and) are hounded by GRA for payment of taxes?” he asked. This was in reference to promoter Godwin Maxwell who plunged to his death in the Mahaicony River last week after appearing in court on tax evasion charges.
Corbin said also that the National Communications Network (NCN), which was another Jamzone sponsor, is subsidized by the national budget to the tune of millions of dollars. He charged that any sponsorship by this state entity amounts to sponsorship by the state, and according to him the people of Guyana deserve full disclosure by the administration on the amount of taxpayers money used to sponsor that event and to pay Ne-Yo.
“It is time that this lack of transparency is brought to an end,” he said. He questioned how much was remitted in taxes for the Jamzone event.
Responsible government
Raphael Trotman, leader of the Alliance For Change (AFC) said people are aware of the heavy hand of the government in several entertainment events. He believes in more responsible support saying that the administration should consider which artistes state funding is assisting to perform in the country.
Recalling the ban been had slapped on Jamaican singer, Movado, he noted that this was conveniently lifted last year when a government official booked him for an event, and recently for Jamzone.
“It smacks of ad hocry,” Trotman said of the administration’s entertainment sponsorship. He said there appear to be no rules and the government is simply throwing money behind certain types of entertainment events. He said the funding should be more balanced. “They should be supporting an exhibition at Castellani and a public event organised by a religious group, in addition to those concerts and other promotions,” Trotman stated.
Trotman said he is not opposed to government using taxpayer’s money to fund entertainment, but he emphasized “responsibility” and “balance”. He said people should have options and not “one choice” in terms of the entertainment events which are available and which government supports. “They are playing a dangerous beat,” he said of the government’s involvement in certain entertainment events.
The AFC leader continued that entertainment events help to diffuse tensions in the society, but he noted that government also has to consider the social impact of some of the events it supports. Trotman pointed to issues such as alcohol consumption, increased sexual activity among youths and a possible increase in violent crimes prior to the hosting of big events. According to Trotman, the latter issue is of major concern, particularly if “the police force can substantiate this claim with empirical data”.
Trotman stressed that government ought to be more transparent in terms of its budget for entertainment events. He said people should be told exactly how much went to a particular event. He added that his party might be forced to ask government a few questions in Parliament surrounding its funding in entertainment.
GAP/ROAR MP Everall Franklin, also commenting on the issue, said government has a duty to spend on cultural events, but that the focus should be on the type of activities being supported. “What we need to ask is whether the activities this government supports are uplifting, and what the moral standards are attached to these events,” he said, adding that another consideration should include what benefits people are getting from the events.
Franklin said the fact that some promoters are reaping profits from the government supported events is another matter of concern. “It is true that there are other sectors that will always be in need of more funding, particularly social services, which is why I believe we need to examine what the money is being spent on,” he added.
The question of government being more transparent in terms of how much funding it is releasing for entertainment events is a valid one, Franklin stated, but he emphasized that it is important to focus on what the money is being spent on and under what conditions.
‘Not every bubble session’
McCoy argued that government weighs the benefits of a particular event, noting that it considers the impact on the tourism sector among other things. Pointing to the recent Jamzone, he said, the event drew thousands of Guyanese together and also attracted overseas visitors. “These are some of the criteria that we look for,” he added.
He said the administration is “not supporting every little bubble session” in the country, and that it looks at those which create an outlet for citizens here and in the Diaspora to relax. McCoy said too that the administration is balanced as relates to its support, adding that “government supports religious, cultural as well as entertainment concerts”.
The transparency record of the state is “second to none”, according to McCoy. He said that whatever is disbursed for entertainment can be accounted for under the sector ministry and that financial statements would have had to be be prepared for the funds to be released. Asked how much money the administration released recently for entertainment shows, he said he could not give a figure off the top of his head, but stressed that government “has nothing to hide”.
