Fiscal transfers formula not being used for local gov’t subventions

-parliament hears

 

Parliament’s Committee of Supply yesterday approved the budget estimates for the yet to be gazetted Ministry of Communities amid howls of disapproval from the opposition PPP/C that the APNU+AFC government had not applied the Fiscal Transfers Act to determine allocations to local government bodies.

The Fiscal Transfers Act had been long sought by both APNU and the AFC while they were in opposition and it had been used by the PPP/C for budgetary allocations in the 2014 budget.

Minister of Communities Ronald Bulkan in reply to the criticisms said that due to the degradation of the current local government entities they lacked the infrastructure necessary to operate under the Act and that the holding of Local Government Elections (LGEs) was needed prior to the Act being adhered to.

Ronald Bulkan
Ronald Bulkan

He revealed during a barrage of questions by the opposition that $99M allocated is to be divided among the six municipalities, of which Georgetown is slated to receive $24M. However the funding formula described in the Act was not used.

The Act states that subventions for municipalities are to be based on the size of the population as well by the collection of rates and taxes along with the geography of the area.

The bill was passed in 2013 and assented to by former President Donald Ramotar on November 6th and represented one of the Local Government Bills that received much attention in the 10th Parliament. The Fiscal Transfers Bill, the Municipal and District Councils (Amendment) Bill, the Local Government Commission Bill and the Local Government (Amendment) Bill were all passed unanimously by the National Assembly in August 2013, but were stalled at the Attorney General’s Chambers for more than two months, until Ramotar assented to the first three. The suite of bills had long been argued for by both APNU and the AFC while they were in opposition.

Bulkan during questioning yesterday said that once there was a “renewal” of the local democratic organs then rebuilding could occur although he did not directly state that once LGEs were held the funding formula would be utilized.

“The capacity of these councils is severely damaged,” Bulkan stated.

Opposition Chief Whip Gail Teixeira addressed the House stating that the Minister was not within his right to disobey the law due to “his own opinion.”

She demanded that the Act be implemented.   Fellow MP Collin Croal highlighted that in 2014 the existing formula was used to implement the Act.

Teixeira said, “The honourable member cannot be capricious with the law,” continuing that “he cannot wait until 2016 or 2017 or God knows whenever.”

Members of the opposition questioned when the government planned to hold LGEs and asked for a firm commitment since the APNU+AFC Coalition had campaigned heavily on the need to hold elections.

 

Who are the REOs

Meanwhile members of the house clashed when Bulkan was unable to provide the names of the current Regional Executive Officers (REOs) of the Ten Administrative Regions.

The opposition homed in on the subject of the REOs because of a previous revelation that the Region 8 and 9 REOs, Rafel Downes and Carl Parker respectively, were both candidates on the Coalition’s Regional List for the 2015 General and Regional Elections.

Teixeira stated that the minister’s reluctance was odd given that yesterday it was well known that the Committee would be considering the estimates for the 10 Administrative Regions so it was expected that not only would the names of the REOs be revealed but they themselves would be present.

The discussion got heated as members of the PPP/C continued to press the minister to reveal the names. This resulted in Committee of Supply Chairman Barton Scotland getting involved and coming to the assistance of the Minister. Teixeira challenged the speaker, noting that it was within the rights of the House to expect that names be provided. Former Attorney General Anil Nandlall told the Chairman that as he was relaying information there was a sense of urgency in having the names provided.

The minister was kept on his toes as the discussion progressed, but he faced more criticism when asked why the ministry was soliciting applications for REOs if all vacancies have been filled. PPP/C MP Juan Edghill requested a comprehensive explanation from the minister who replied that the ministry was requesting a database of qualified persons to fill contracts that would expire in January.