MINISTER OF FINANCE CHRIS SINCKLER last night delivered what he deemed two important lessons in his wrap-up of the 2010 Financial Statement and Budgetary Proposals.
Speaking in the House of Assembly, Sinckler urged Barbadians to understand that the measures delivered in his first Budget on Monday were necessary, unavoidable and for the country’s good.
He also urged citizens not to be misled by former Prime Minister Owen Arthur’s “deja vu” budgetary response, which he said had been scripted since 1991, dusted off and presented on Tuesday. Sinckler noted the St Peter MP could not escape the fact that much of the difficulties now facing Barbados could be traced to his 1994-2008 administration.
Sinckler said Arthur had the opportunity to restructure Barbados’ economy during good times, but added there was no evidence of restructuring in any sector of the economy other than the creation of NISE (National Initiative of Service Excellence).
Noting he had confidence that Barbados would emerge from the recession, Sinckler told Barbadians he would not attempt “to create any spin” about what was happening in the country.
“You cannot escape unscathed and we have to carry this burden together willingly,” he stressed.
While being critical of most of Arthur’s response to the Budget, Sinckler said he would be willing to sit and discuss the economy with him, but noted that if they were to have any discourse the former Prime Minister had to include former Leader of the Opposition Mia Mottley in the talks. He said Mottley had been the person repeatedly pushing for a special joint committee to look at the economy.
Sinckler reminded Arthur that he had previously indicated he should be blamed for anything that went wrong in Barbados during his stewardship. The St Michael North West MP said: “Well, I blame the honourable member for not restructuring the economy . . . . I blame him for creating so much debt . . . . I blame him for the spendthrift nature and in some instances the squandermania of the last Government.”
Sinckler highlighted a number of projects which he said had exacerbated the economic difficulties facing the country. He surmised that much could be done with the $70 million Government had to find to pay contractor Al Barrack for the controversial Warrens,
St Michael building. He reminded Barbadians that Arthur had legal advice and the opportunity to settle the debt when it was $34 million. He noted what was particular exasperating was that Barrack’s competency to do the job had been red-flagged by consulting engineers.
Sinckler read an official document related to the issue which said: “Based on the grading system and evaluation criteria used, the contractor has not met the minimum requirements and in our opinion is not capable of executing the proposed works.”
Sinckler said if Government had $70 million at its disposal it could keep the VAT at 15 per cent.
Sinckler dismissed Arthur’s suggestions that Government should sell off the Barbados National Bank (BNB) shares to finance the fiscal deficit. Noting it was a not a sustainable policy, he queried what else would Arthur look around the country to sell after BNB. Sinckler said Government would not “offload the BNB shares as though it was a barn sale”.
Sinckler stressed that austerity measures would always hurt, but that at the heart of Government’s Budget was a commitment to keep people employed.
The Budgetary Proposals were approved. (WG)