While every individual’s reality is important to each of us, shouldn’t we be looking at the recent Financial Statement and Budgetary Proposals against the global backdrop of massive retrenchment, loss of consumer/investor confidence and the spectre of very little hope in countries more developed than Barbados?
Haven’t we become so accustomed to a high standard of living that, even in the midst of a global recession, we somehow expect to remain untouched; and hope that Government will come up with a plan to heal any recessionary fallout without any Barbadian feeling an iota of pain?
It simply cannot happen; not in an environment where Government has, for some time, been forced to borrow from its Central Bank, National Insurance Scheme and commercial banks to pay its bills, while most of us continued on our merry way.
Such borrowing and spending might have gone unnoticed in normal times but, as one kaiso monarch sang, “de country ain’t well”; no country can be well in a global recession that shows no sign of ease.
Government needed to administer corrective treatment last year – not just last Monday – and while the taste will be awful for some time, it just may work. Minister of Finance Chris Sinckler did not hide the expected bitter pill likely to come from the 17.5 per cent Value Added Tax (VAT) increase and other measures, noting it was not a Days Of Our Lives Budget based on fantasy or tales.
Consumers’ essentials have indeed been the hardest hit: food and household items via the VAT, inland travel via the increase in bus fares, and salaries as a result of no more tax-free allowances for travelling and entertainment for employees; while other basic operating costs are expected to rise via the 50 per cent excise tax on gasoline.
At the same time, however, the way has been paved for businesses, large and small, to operate in a friendlier environment.
In a country renowned for its high costs of doing business, the entrepreneurs are the ones expected to drive Barbados’ economic recovery; and the clear thinking and fervent hope by Government right now is that prices will be kept down somewhat – with the abolition of the Environmental Levy on imports – and that people will remain employed.
The Prime Minister virtually pleaded for this on the Budget’s final night.
Sadly, some of our individual spending power will decrease; but I’m being optimistic for the time being and hoping,
for instance, that farmers whose water supply will be provided at the flat commercial rate will pass on that saving to consumers, resulting in cheaper vegetables and fruits, and possibly milk, chicken, beef and pork.
Unless farmers and/or distributors start to complain about the VAT on equipment and livestock feed!
Most Barbadians would have spent more than a day pondering the slashing in half of public service vehicle (PSV) operators’ fees but, again optimistically, this should encourage a more professional approach by PSV workers and wider investment by the owners, leading to employment.
However, lowering the licence fees of liquor retailers will make things easier for them and only them – not the consumer, except for social reasons – and may encourage potential small entrepreneurs to set up similar shops; for even in an environment of lowered spending power, sale of alcoholic beverages will thrive.
In fact, despite complaints about how harsh VAT and gasoline increases will be, hundreds of Barbadians will still flock in the latest apparel to Saturday’s Hennessy Artistry show to witness Beres, Gyptian and Coco Tea; while many others will block City stores and malls for expensive gifts, liquor and household refurbishment items over the next four weeks.
Barbadians will survive Sinckler’s measures and will be stronger for them, and they may cause us to think not only of our individual circumstances, but of people, right here in our midst, whose situations were dire and austere long before last week’s Budget.
Meanwhile, my kudos to Minister Sinckler for establishing a trust to the tune of $400 000 for the Richard Stoute Teen Talent contest.
Long have I and many others called for this contest to be treated, by Government, with the respect it deserves, but for 34 long years its founder has had to run from pillar to post to muster annual sponsorship and rent venues; while others who staged shows purely for profit got the blessings of the cultural, political and business top brass.
Teen Talent, held for most of its years at humble venues, was hardly ever graced with the presence of a Government minister, and was a standing joke for several in the industry who openly questioned the standard of the show and even accused Stoute of exploiting his young charges.
Yet, it cannot be denied that the show has fed most of the talent into Crop-Over and the local recording industry – including Edwin Yearwood, Alison Hinds, Terencia Coward, Andy Armstrong, Rupee, Adrian Clarke, Barry Chandler, Ronnie Morris, Toni Norville, Khiomal Nurse, Kimberley inniss and a host of others.
But, despite being acknowledged as the main cultural nursery in Barbados, this is its first major cash injection.
The trust should surely take the show to another level, guided by Stoute and other directors who have the interest of Teen Talent and culture at heart.
Happy Independence, Barbados!
