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<TABLE cellSpacing=0 cellPadding=1 width="100%" border=0><TBODY><TR><TD><SPAN class=TopStory>Gov't defied Chavez's wishes for PetroCaribe savings</SPAN>
<SPAN class=Subheadline></SPAN></TD></TR><TR><TD>BY BALFORD HENRY Observer writer
Friday, December 15, 2006
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<P class=StoryText align=justify>FOREIGN Minister Senator Anthony Hylton admitted in the Senate yesterday that the Government defied Venezuelan President Hugo Chavez's wishes for proceeds from the PetroCaribe agreement to be directed into social programmes for the poor, rather than profitable, economic programmes.<P class=StoryText align=justify>"What is to be appreciated here is that there is no question (about) the spirit and intention of this arrangement, (which) is very, very clear and should not escape anyone's mind. It is no secret that President Chavez, on behalf of the Venezuelan Government, is very clear about the social aspect and the social development of beneficiaries and whom the beneficiaries ought to be under his view of the development that must be.<P class=StoryText align=justify>That is very clear and we have spoken very clearly to that. It is we who have said, 'yes, President Chavez, we appreciate the concerns for the poor, for the dispossessed and for a certain approach to development. But, in the end, this is a loan to us, it is not a grant to us and, therefore, we have other ideas and other views as to how we would like to see these funds expended'," the foreign minister said.<P class=StoryText align=justify>He added: "That was a deliberate policy response to his very open invitation, and his own predilection about how the development should take place and, indeed, he is doing it in his own country. But we have said to him, because it is a loan to us and has to be repaid, which is precisely the point which is being urged on that side (Opposition), precisely the point that it is a loan to us, we must insist on having a measure of control and direction as to how in fact the funds are spent.<P class=StoryText align=justify>"Hence, we have put in place a framework, and as part of it, we have said that the repayment has to be a principal part of our objective," Hylton said.<P class=StoryText align=justify>Senator Hylton made the disclosure as he responded to questions about the oversight of the funds, which are to be administered by a board as the PetroCaribe Development Fund, which will be under the direction of Finance Minister Dr
Omar Davies.<P class=StoryText align=justify>Opposition senators Anthony Johnson, Chris Tufton and Trevor MacMillan had expressed concerns about the fund being under Davies' direction, after his "run wid it" speech after the 2002 general election in which he suggested that he had allowed public spending on some projects he would otherwise have not, in an election year. Davies subsequently apologised for the statement.<P class=StoryText align=justify>The Opposition senators felt that the funds should be fully subjected to parliamentary approval, prior to their use, a stand similar to that taken by their colleagues in the House of Representatives when the bill was passed in that chamber on November 28.<P class=StoryText align=justify>balfordh@jamaicaobserver.com
<SPAN class=Subheadline></SPAN></TD></TR><TR><TD>BY BALFORD HENRY Observer writer
Friday, December 15, 2006
</TD></TR></TBODY></TABLE>
<P class=StoryText align=justify>FOREIGN Minister Senator Anthony Hylton admitted in the Senate yesterday that the Government defied Venezuelan President Hugo Chavez's wishes for proceeds from the PetroCaribe agreement to be directed into social programmes for the poor, rather than profitable, economic programmes.<P class=StoryText align=justify>"What is to be appreciated here is that there is no question (about) the spirit and intention of this arrangement, (which) is very, very clear and should not escape anyone's mind. It is no secret that President Chavez, on behalf of the Venezuelan Government, is very clear about the social aspect and the social development of beneficiaries and whom the beneficiaries ought to be under his view of the development that must be.<P class=StoryText align=justify>That is very clear and we have spoken very clearly to that. It is we who have said, 'yes, President Chavez, we appreciate the concerns for the poor, for the dispossessed and for a certain approach to development. But, in the end, this is a loan to us, it is not a grant to us and, therefore, we have other ideas and other views as to how we would like to see these funds expended'," the foreign minister said.<P class=StoryText align=justify>He added: "That was a deliberate policy response to his very open invitation, and his own predilection about how the development should take place and, indeed, he is doing it in his own country. But we have said to him, because it is a loan to us and has to be repaid, which is precisely the point which is being urged on that side (Opposition), precisely the point that it is a loan to us, we must insist on having a measure of control and direction as to how in fact the funds are spent.<P class=StoryText align=justify>"Hence, we have put in place a framework, and as part of it, we have said that the repayment has to be a principal part of our objective," Hylton said.<P class=StoryText align=justify>Senator Hylton made the disclosure as he responded to questions about the oversight of the funds, which are to be administered by a board as the PetroCaribe Development Fund, which will be under the direction of Finance Minister Dr
Omar Davies.<P class=StoryText align=justify>Opposition senators Anthony Johnson, Chris Tufton and Trevor MacMillan had expressed concerns about the fund being under Davies' direction, after his "run wid it" speech after the 2002 general election in which he suggested that he had allowed public spending on some projects he would otherwise have not, in an election year. Davies subsequently apologised for the statement.<P class=StoryText align=justify>The Opposition senators felt that the funds should be fully subjected to parliamentary approval, prior to their use, a stand similar to that taken by their colleagues in the House of Representatives when the bill was passed in that chamber on November 28.<P class=StoryText align=justify>balfordh@jamaicaobserver.com