The Budgetary Proposals 2008 were presented last week by Prime Minister David Thompson and there is one disappointment which we must highlight. The price of a barrel of oil closed last week at $147.00. It is not far-fetched that by year end the price of oil may cross $200.00 given the volatility in the world’s oil commodity market. Barbados like many countries around the world has built its economy on oil. This well known fact appears stupid when we consider that our island is surrounded by renewable energy inputs i.e. wind, sun and sea. The fact that Prime Minister Thompson did not signal that his government had engage in any significant policy initiative at the national level that would lead to a reduced dependence on oil is most distressing.

It is projected that in 2008 Barbados will spend an estimated $275 million dollars which equates to approximately 7% of GDP. While the amount may appear serviceable in the context of the Barbados economy there are some points to note. The amount paid for oil must be in hard currency. This means that the economy which relies on the fickle tourism product must continue to generate foreign exchange. The more significant point is as the price of oil rises; it will have a negative effect on our tourism. Airfares and cruise fares will become more expensive. If we were Prime Minister David Thompson we would be very concerned given our level of dependence on the black stuff.

After seven months in office the BU household is of the view that we must have some urgency on the need create an alternative energy plan.

We acknowledge the tax breaks which were included in the 2008 budget, we have heard the quiet noises of the Barbados Light and Power Company inquiring to Town Planning about their Lambert Wind Project application. We have even heard about Amelot Holdings which is a company that has promised to set up a bio-diesel plant in Barbados by September 2008. But it is not enough! Barbados cannot continue to procrastinate on the issue of embracing a renewable energy solution. Along with saving foreign exchange on our oil import bill, we have to ensure we build a security net for future generations of Barbadians. Is it not incredible that Nevis has created an energy program built on geothermal power? If we are not mistaken, St. Kitts has reordered it sugar cane production to support bio-fuel in the form of ethanol.

Last week in Trinidad Prime Minister Thompson speculated that if the price of oil crossed $200.00, it could threaten the survival of small Caribbean islands like Barbados. Geeze Prime Minister, tell us something which we don’t know. In the Caribbean we are fortunate to have a world-class development bank. Let us bring our brightest minds together and start a public private sector project to create alternative energy. We are sure the Caribbean Development Bank would be only too glad to fund it and lend technical assistance.