Warning the National Assembly against naysayers who cast doubt over the developments in Guyana, Minister of Natural Resources, Vickram Bharrat, has defended the Government’s track record in managing the resources of country, including oil and gas.

Early on in his presentation, he took a swipe at Opposition Member of Parliament, Roysdale Forde, who in kick starting the National Budget Debate on Monday, accused the Government of mishandling the Natural Resources Fund. However, Minister Bharrat said that statement is far from the truth.

“Mr Forde, when he spoke, said that we took out safeguards of the Natural Resources Fund Act, so that we can squander the oil money. [But] the 2021 Natural Resources Fund Act actually strengthened the transparency and accountability in how we manage the oil and gas revenues in this country. Previously it was left at the whims and fancies of the Minister of Finance to decide how much money should flow into the Consolidated Fund. We changed that, we changed that, so that the minister would not sit and decide how much money but there is a formula to determine, every single year how much money will be put into the national budget,” Minister Bharrat said,   

 Minister Bharrat said there is a Natural Resources Fund Board of Directors as well as an Investment Committee managing the use of the funds. 

He was keen on noting as well that any removal of money from the Natural Resources Fund must secure the approval of the National Assembly. And Government, he said, is committed to the process. 

“Oil and Gas can be a curse and it can be a blessing. We all know that. Look around at our neighboring countries, and you will see that. It is the prudent management of the sector, it is the prudent management of the sector, and ensuring that there is proper accountability and transparency, and ensuring that the benefits reach every single Guyanese, that will bring us opportunities from the oil and gas sector Mr Speaker,” he told the House. 

The Natural Resources Minister, did not take lightly to criticisms of Government’s handling of the Forestry Sector and the decline in revenue. The Opposition said while the Forestry Sector is reported to have expanded by 5.4 percent in 2023, foreign earnings from timber dropped to US$20.5M compared to US$33.7 million in 2019. 

But Minister Bharrat reminded the House that upon PPP/C’s return to Office in 2020, it met a Forestry Commission, that he claims was bankrupt.

“Yes, Mr Speaker, export has declined, export has declined. But is it, that’s the main objective of the forestry sector? Should we keep exporting our logs? Should we keep exporting our logs? No is the answer,” the Natural Resources Minister said. 

According to him, the decline in export earnings from timber, is as a result of the growth in the local demand for forest products. 

“Mr Speaker, the local demand is growing so much, the local demand is growing so much that the Guyana Forestry Commission is supplying the local demand. Should we neglect the local demand and export because we want to come here and report that our export figures are glorious? By doing that, by doing that, we are suffering our own people because when they go to a saw mill or a lumber yard, it’s either it is not available or the price is so high, that they can’t pay for it. It is simple,” Minister Bharrat argued. 

Noting that the country should not continue to export its primary products, the Natural Resources Minister told the House that a decline in exportation is an indication that the country is doing well locally. 

Further, he said the demand for sand and aggregate is due to the developments unfolding in the country as a result of the prudent management of the economy. 

But Opposition MP Shurwayne Holder told the House that the Government has been mismanaging the natural resources of the country, including gold.

He said while the gold industry remains a key contributor to national economic performance and to hinterland settlement and development, accounting for 6% to 8% of non-oil GDP, it has experienced massive declines under the current administration.

“Over the last four years, however, the gold industry has experienced a 50% drop in declaration from our local small to medium scale miners. Additionally, in that time span, we have not seen the commencement of any new large-scale operation. From the large-scale gold subsector, production has actually dropped from around 186,000 ounces in 2019 to around 109,000 ounces in 2023, a decline of 70%,” he pointed out. 

He said Government has continuously failed to respond to the challenges facing miners including the need for increased mining lands. 

“As we are aware, the bauxite industry has for decades presented many challenges, some seemingly insurmountable. Guyana however needs to better leverage its comparative advantage in that its bauxite deposits can produce probably the world’s widest range of bauxite products, such as metallurgical grade, refractory grade, cement grade, and chemical grade bauxites. That apart, the gifting of some of the country’s richest deposits by the previous PPP government to an investor who sees a strategic value in keeping those deposits out of world supply remains problematic,” he reasoned. 

Further, MP Holder told the House that the Oil Industry is constantly in a state of turmoil due to government’s unpatriotic stance. He said government’s refusal to provide proof of Exxon’s US $2 billion parent company guarantee in the event of an oil spill, as first ordered by the Court, risks putting the entire country in jeopardy. He said the Government must do better. 

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