BEFORE THE END of this month Parliament will debate the annual Estimates of Revenue and Expenditure. Given the stagnation of the island’s economy over the past seven years, the hope is that these debates will point the way forward to growth and economic revitalisation. Intertwined with whether this growth is realised is the performance of state agencies.
Too many of them over the years have become the proverbial albatross around Government’s neck. They have done little more than go cap in hand for their annual subsidies, with little tangible returns for the economic and social well-being of wider population.
This financial transfer from central government to many of the parastatals is a situation that Minister of Finance Chris Sinckler knows very well is unsustainable. He needs to stop talking about the problems and start insisting that solutions be found and implemented for issues ranging from gross inefficiencies to non-compliance with the laws and regulations. It would be unreasonable to allow these state agencies to continue to undermine the country’s financial stability. This situation becomes a big joke when there is only talk and little action to rein in the problems.
Mr Sinckler has promised reform of a number of statutory agencies. Almost a year ago he identified the Transport Board, the National Housing Corporation, the Queen Elizabeth Hospital, The Barbados Port Inc. and the Barbados Agricultural Management Company as some of the state operations which will come under a pilot reform management programme. Today, the public is no wiser about the progress with this initiative to halt the economic slide and bring some level of efficiency to their operations. Perhaps, we will have to wait until the Estimates debate to know what is happening with this reform programme.
In the meantime, the Urban and Rural Development corporations, the Caribbean Broadcasting Commission, the National Sports Council, The Gymnasium Limited, the Barbados Water Authority and the Sanitation Services Authority are in no better a position. These state agencies, too, also need urgent help. Unfortunately, there are still others which can be added to this list of agencies that must depend on central government to keep them afloat either directly or by giving comfort to their indebtedness. It would be good if Mr Sinckler in informing the country of the financial state of affairs lays bare the total indebtedness of these state entities.
Despite their afflictions, many of these parastatals do not observe the very basics of good corporate governance and seem neither accountable nor transparent in their operations. They are often delinquent in their financial reporting and some are struggling to adequately fund their pension plans. Yet, they face no sanctions.
Regrettably, as we get closer to a general election, meaningful reform will be harder to implement. It will be business as usual.
