UNC hits Govt on prices

The remarks came in an unsigned statement from Rienzi Complex. Saying the former UNC government had properly controlled the repo rate, the UNC stated that the PNM Government has allowed it to rise from 4 percent to 7.5 percent over a year. This has caused a corresponding rise in bank’s prime lending rate from seven percent to 11.75 percent, and a jump in inflation from four percent to over eight percent.

“The continued increase in prime lending rates can cause a collapse in the real estate market and the destruction of pension plans owing to the inability of workers to service their mortgage installments given these high rates of interest.”

The UNC also feared that small entrepreneurs might be unable to service their overdrafts, be forced out of business, and could face insolvency. The rise in the prime lending rate has hurt workers, farmers, pensioners and poor people, said the UNC.

“Food prices have risen by over 26 percent, fruits and vegetables by over 70 percent, and root crops by over 100 percent in the past 12 months”. The party said it would be criminal for the Government to use State power to force people to live in abject poverty.

“The Government continues its squandermania of public funds against the best advice proffered by both the International Monetary Fund and the Governor of the Central Bank , causing in the process severe inflationary pressures on the nation”.

The UNC said the PNM’s policies are not helping most people. They said the food hike has been caused by the Government’s failure to address agriculture including destroying Caroni (1975) Limited and failing to distribute the promised Caroni lands to ex-workers for food production.

“The UNC calls on the PNM regime to properly manage the economy, control inflation, and stabilise food prices.”