With general elections out of the way, the Freundel Stuart Democratic Labour Party administration must turn its full attention to the disintegrating state of this country’s economic and fiscal affairs. We simply cannot continue to limp along, hoping that the situation either disappears or remedies itself.
So today’s national consultation to examine ways of dealing with the economy – involving Government, private sector and labour – must be more than the “same old talk shop”. And, while Government needs the input from its social partners, it must take the lead in finding ways to rein in the fiscal deficit and stimulate growth in our economy.
We understand and appreciate the challenges presented by the extended global recession, but this downturn is of little comfort to the individual or business in Barbados looking for relief from high taxation, ever-rising prices and sustainability.
We can no longer adopt a “let every day run its course” attitude to our fiscal situation , because rising expenditure and declining revenue mean time is not on the Government’s side – or, more accurately, ours.
We believe very tough decisions must be taken in the national interest. So buy-in from the trade unions, the private sector and the Opposition, among other key stakeholders, is going to be critical in coming up with a homegrown solution to an uncomfortable situation.
Barbados cannot continue to borrow unsustainable amounts every month to pay our way. We need to take stock of our situation, assessing where we are now and where we want to be tomorrow.
Government has few options, and while spending cuts seem obvious, there is also a clear need to stimulate the economy. This cannot be done through maintaining a bloated public sector but by measures that support businesses, whether large, medium or small enterprises.
Of course, Government itself must be more productive, delivering cost-effective services if it wants to maintain public sector jobs. But what has been made out to be somewhat of a bad word, privatization, must be a consideration for some segments of the public sector.
This (privatization) should be the core agenda today – not seeking tax increases to fund a system that we can no longer afford while also taking even more money out of circulation in the economy.
Undoubtedly, getting people working is the best option rather than spending cuts and tax increases. We need to encourage our job creating entrepreneurs, not discourage them through over-taxation.
So after today’s deliberations we must be clear on containing spending and trimming deficits without raising taxes.
The decisions must be made public and implemented. This country is on the edge of an economic precipice. The threatening free fall must not be allowed to happen.
