There’s probably little left to say about last week’s Budgetary Proposals. The general consensus seems to be that the proposals are unclear and present more questions than answers.
One thing is clear though: the middle class, especially the young, have been hit yet again. How much more taxation can they stand? This time the lowest-paid worker has also been targeted. Is that protecting the most vulnerable? The increased land tax is much too draconian and will not solve the solid waste problem and I think the bar for the consolidation tax should be higher.
I’ve heard it said that Government doesn’t have so much of a revenue problem (if only they would collect it in a timely manner) but more of an expenditure problem. So, I agree with Sanka Price that “while all Barbadians should work with this administration and make sacrifices needed to pull our country back from the brink . . . what guarantee is there that after making the sacrifices Government asks of us, it will stick to its stated programme?
“. . . What assurance would there be that it would not squander those gains to regain office?”
That’s not an idle question, having just observed, a few months ago, the swelling of an already bloated public service at a time when Government is borrowing to pay salaries. Is that responsible behaviour? I doubt the proposals will stop the biggest leaks, so any gains from increased taxation could continue to disappear.
The frequent comment on the document is its vagueness, with no real clarity on how the measures are going to work. The tax experts don’t even understand them. Of course, we’ve experienced this before. There are also measures requiring legislation and some tied up in bureaucracy which would cause delays, when swift action is needed.
It seems the only measure which could be implemented quickly is the road-building programme which would provide some stimulus to the construction industry.
The tourism players seem happy with measures introduced for that sector, but I’m still to understand why Government would purchase a hotel which it sold some years back, when there are at least three private sector entities interested in purchasing it. And if they intended purchasing it why not before the property became dilapidated ?
At last all requests for concessions and waivers in the tourism industry are to be tied to a demonstrable use of local produce and manufactured goods, but I’ll wait and see whether it works any better than the policy stating that Government institutions must buy at least 60 per cent local produce.
The tax on tobacco products is sensible, but as far as I’m concerned, the lottery tax should also be on the tickets rather than only on the winnings.
The measures to encourage the use of alternative energy are welcomed but, based on the time It’s taking to bring the necessary legislation to Parliament, I wouldn’t hold my breath on their implementation.
I’m not against students contributing to their tertiary education. I believe a lot of time is wasted because the “free” education is taken for granted. Government can no longer afford to foot the entire bill, partially due to the considerable increase in students in recent years, possibly driven by the call for one graduate in every household. I don’t agree with this policy but rather one which calls for one trained person in each household. Furthermore, I think the courses must fit Barbados’ needs and the numbers of places offered in each course limited to those needs.
The BCC should be expanded to be used for the preliminary years of tertiary education and the Polytechnic upgraded to provide more prestigious certification. Government and the private sector could consider awarding more scholarships to university students for outstanding performance, thus motivating them to achieve high standards.
Meanwhile, continued efforts must be made to control the economic cost which Government is continuing to pay. Is this cost as low as it could be? Are funds being used as efficiently as they could be or is there some fat in there that could be trimmed?
But, of course, many feel that the most fat lies in the top-heavy governance system. Does this little dot require 17 ministers and endless ministries, not to mention the other 34 Members of Parliament and senators? Perhaps herein lies the answer.
• Dr Frances Chandler is a former Independent senator.
