In an effort to push production President Chavez has announced the elimination of the financial transactions tax, arguing that it has put a brake on domestic production. According to the President, such taxes have an inflationary charge and are not necessary because of high oil income. Speaking to assembled representatives of the private sector, Chavez says the measure will make the IRS/Seniat more effective and promises there will be no more new taxes this year. Another measure to ease economic pressure announced by Chavez in his economic re-impulse plan involving the private sector is to make it easier for companies requesting dollars for $50,000 or less to import capital assets, machinery and supplies. Such companies already registered will not have the present prior red tape requisites to the exchange rate administration board (Cadivi). However, Chavez did warn that if the big companies started to break down requests to obtain preferential dollars, they would be suspended and he hopes they will not try to cheat.
Once more the President calls on all producing sectors to join a "national strategic alliance" to reactivate the economy, while at the same time, announcing the setting up of a $1 billion fund for strategic productive sectors. The fund will be used for new investment projects in the private sector to be approved by the central planning committee headed by the Executive Vice President. Chavez says his government will deepen what he calls the "re-politicization of the economy."
The first reaction of the private sector has been varied. The National Ranchers Federation contends that the measure will help imports, not production, whereas Confederation of Industry (Conindustria) president, Eduardo Gomez Sigala welcomes the dropping the financial transaction tax as "opportune."
Executive Vice President, Ramon Carrizalez has announced the incorporation of other government bodies in the design and execution of public strategy regarding the prison service. Attorney General Luisa Ortega Diaz has announced that the number of technical committees to assess files of prisoners seeking benefits will be increased to speed up the process. At the moment there are 40 committees working. Visits of judges and state attorneys to prisons to assess compliance with the penitentiary system policies have also been increased and some correctives put in place. The effort to re-impulse strategies comes after continuing unrest in the country's prisons.
According to Foreign Minister Nicolas Maduro, President Chavez's call to the Revolutionary Armed Forces of Colombia (FARC) to free all hostages and to end the armed conflict in Colombia reflects Latin American, Caribbean and world public opinion. Speaking on a VTV political talk show, the Foreign Minister repeats that Venezuela is committed to the peace process whereby the FARC should give a sign that it wants to advance towards peace. He says he is certain that such a gesture will be well received in Colombia and the world and would be backed by progressive governments on the continent. The Minister points out that the President's call is not contradictory to an earlier statement requesting belligerent status for the FARC. "Belligerency is part of the humanitarian public right and has given excellent results in conflicts, such as Northern Ireland and Central America." Chavez' proposal to have the FARC considered a belligerent force, Maduro adds, was part of a peace-seeking initiative to humanize the conflict.
Opposition students have put on another show in front of the National Assembly building carrying and leaving bales of straw as a message to the parliamentarians. No more straw! Start solving problems! The straw phrase has sexual connotations meaning masturbation and useless activity. The students say they are protesting against the AN wasting time on trying to draw up a new intelligence and counterintelligence law after it had been rejected by the opposition and President Chavez. The deputies, the students insist, should deal with the real problems of the people.
Patrick J. O'Donoghue
patrick.vheadline@gmail.com
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