Rumours of impending layoffs in the Public Service of this island have led to the general secretary of the National Union of Public Workers declaring boldly that his organization will be opposed to any layoffs.
And now, Prime Minister Freundel Stuart has told us that Government has not taken a decision to lay off public sector workers, but will take whatever action is necessary to make the Barbados economy viable and stable.
We applaud the candor of the Prime Minister, but we do not think that it will calm the waters of turbulence because the evidence is all around us that the economy has slowed down and that growth is required but is not forthcoming at the rate required.
Dwindling confidence seems to be contributing to the present malaise. The Government is facing a number of challenges, and perhaps of a deeper nature than in the past; but timely action works wonders when combined with a decisive show of leadership.
No government likes dealing with cutting jobs, and no minister of government would take any pleasure in executing policies that can have the effect of causing a retraction in the job market.
And so we fully recognize the seriousness of the view that layoffs would have to be a measure of the very last resort for a government.
However, the fall in the foreign reserves does not leave the Government much wiggle room and some truly decisive action is necessary if we are to stop the drain on foreign reserves and build our export and foreign exchange earning sectors, while containing the fiscal deficit.
It is often said that too far east is west and too much taxation can sometimes be counter-productive when government tries to raise further revenue by increased taxation. It is for this reason that the most careful mix of tax concessions, revenue-raising measures, and the interplay of direct taxation of income and the indirect taxation called the value added tax is required.
The stage has now been reached where some decisive and definitive leadership of the kind exhibited in the past, when the country faced difficulties, must be demonstrated.
We welcome Prime Minister Stuart’s assurance that whimsical or capricious action will not be undertaken by his administration.
Most commentators are of the view, however, that the general economic situation has worsened and necessary action should have been taken some time ago.
We fully respect the view that these difficult issues must be thoroughly discussed. The most we can do is to urge Cabinet to take such decisions as its best judgment informs in this country’s interest.
What cannot be in anybody’s interest is continued delay in acting. Time is not our friend!
