THIS WEEK I’LL comment on the bad and puzzling aspects of the Budget. But first, to set the record straight for those who might think I’m influenced by others in the comments I make in this column.
Let me state that my opinions are based on my own observations, and on published information. Sometimes however, statements made can be ambiguous. For instance, I interpreted Ralph “Bizzy” Williams’ statement that he “can’t get permission” to construct his solar farm to mean that permission had been denied.
However, I’ve since discovered he meant that while he had submitted his application over a year ago, he hadn’t yet received permission. So maybe there’s hope yet.
Now to the Budget. I thought Minister of Finance Chris Sinckler had acknowledged we couldn’t tax our way out of our debt problem. Now it seems even Owen Arthur feels the choice is between taxes and printing money, and continual printing of money will be disastrous.
So we’re to raise another $160 million in taxes, with part via a two per cent National Social Responsibility Levy on imports (except tourism, agriculture and manufacturing inputs) and on domestic output. This is apparently to reduce forex outflows, although Mr Sinckler says he isn’t in any panic mode over our foreign reserves and we’re not in a crisis situation. Central Bank Governor Delisle Worrell apparently thinks otherwise. Whom should we believe? This tax will affect us all and many can’t afford it.
Some years ago, I told Governor Worrell there are numerous overpriced and unnecessary food products imported into Barbados and a significant portion end up being almost given away when they near their expiry dates, and dumped when they do. I asked then whether there shouldn’t be some limit on forex available for various categories of imports. If I recall correctly, his response was that market forces should prevail.
At this point, wouldn’t it make more sense to tax luxury products, rather than all products, including necessities? Is the real aim to control forex outflows or is it just another money grab, since necessities will have to be imported despite the tax.
One might ask, “What are tourism inputs? Isn’t food an input? How will we differentiate between food for the tourism industry versus the general public? And wouldn’t the domestic output tax put businesses at a competitive disadvantage, especially for exports?”
The revenue is to assist in financing health care and the Sanitation Service Authority (SSA). Will throwing money at the Queen Elizabeth Hospital (QEH) improve it? It may help pay creditors, but it won’t change staff attitude and the wastage and other leakage that’s complained about. My bet is we’ll make the sacrifice and receive the same lousy service.
Are the Minister of Health and the QEH director aware of a staff audit done a few years ago? Weren’t there discrepancies between names on the pay sheet and names of those actually working at QEH? Was this followed up?
At the end of 2013 there were apparently 23 SSA trucks. Now less than three years later, there are 17. Should we continue buying trucks without instituting a proper maintenance programme?
Now to the duty-free zones allowing locals to purchase items using foreign currency. Many have questioned how it would work since locals can’t legally hold foreign exchange. Are they going to wait for us to hand over the cash, seize it and send us to Dodds? Or are we to use credit cards up to our annual limit for travel? But I doubt this move will prevent people from travelling to shop, as most duty-free items currently sold locally are relatively high-priced luxury items. People travel to shop for bargains.
Is the further charge on bank assets (which will land squarely on us) another lure to buy more Government paper?
We continually hear about restructuring statutory corporations and reducing transfers. Now, there’s to be a $50 million cut in transfers across the board. Why not cut those entities which aren’t producing?
Finally, to the “election bait”, as one Brasstacks caller referred to it – another amnesty on income tax and the appointment of temporary public officers. Are all temporary workers worthy of being appointed? Was any evaluation done?
Of course, the clean-up campaign smacks of electioneering. Who wouldn’t like to see the island cleared of garbage? But without a holistic waste management system, including prosecution for littering, the funds will be wasted.
• Dr Frances Chandler is a former Independent senator. Email: [email protected]
