One of the most important developments since Independence has been the growth of the credit unions. As major players in the financial and economic aspects of the country, these institutions also played a critical role in the socio-political landscape of this young democracy in the early days of its escape from the benign neglect of our colonial status.
The story of credit union success has been a noble combination of fiscal policy at the national level and a magnificent response by a newly liberated and educated people, who followed the governmental lead of tax incentives for savings by members with a hearty response that justified the economic and social utility of the fiscal engineering inherent in the policy.
Recent reports suggest that membership growth is still being experienced by the Barbados Public Workers Co-operative Credit Union and the City of Bridgetown Cooperative Credit Union, two of the larger credit unions whose annual general meetings were recently held.Â
Their financial statements make for very pleasant reading not only for their members, but also for those members of the public who would be delighted at these results, given that these are indigenous entities managed and financed by the savings of the former colonialised people, now able to demonstrate their skill in managing matters of which they were deemed incapable in earlier darker times.
To take a few pointers which are illustrative, the Public Workers Credit Union recorded overall net income of $13.5 million compared with $9.5 million in the year before; and this after the asset taxes of $1.9 million were incurred. Deposits grew by an 11.3 per cent increase of $87.5 million
In the case of the City of Bridgetown, an improved net surplus before distributions of $3.1 million topped the highlights for the reporting period, together with a 9.5 per cent increase of $24.5 million in deposits.
We anticipate that other credit unions will soon report favourable results in the main, despite the volatile economic climate in which financial entities have had to operate within recent years.
We congratulate the management and directorate of these two giants of the industry who have reported to their members.
This country and economy are in transition, and against the background of recent debates about the appropriate shape of energy policy and privatisation, as well as reports on the financial and operational health of most of the parastatal agencies, there may well be a need for fiscal policy strategy of the kind shown to have energised and stimulated a struggling credit union movement which has now grown into a financial powerhouse of a high order.
We have long produced critical thinkers in our Public Service and in the political arena who have risen to the task repeatedly when finely tuned policies were needed to give a shot in the arm to the economy. The policy relating to the credit union movement is but one example.
The solar water heating industry has also benefited enormously from timely implementation of the incentive of a clear and focused fiscal policy. So, too, have some aspects of the tourism industry.
Given the need for sustained growth in the local economy, we must all put our cultural knowledge, brainpower and hard work into producing the kind of fiscal policy engineering aimed at the right area to create another success story like that of the credit union movement. It may be a hard act to follow, but we have done it before.
