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Malcolm Gibb-Taitt of BARCRO
Malcolm Gibb-Taitt of BARCRO

IT IS ESTABLISHED, in this country of ours, that if someone is accused of committing murder, the courts allow the accused murderer to be legally represented, in much the same way that representatives of the dead person are permitted to pursue justice by bringing evidence to show how the innocent may have suffered at the hands of the accused.

With an application for a Rates Review, as is the case with the Barbados Light & Power Company Limited (BL&P), in 1983 when Objectors were allowed to be awarded costs, and, currently, where there is a state of flux as was with Cable & Wireless (Barbados) Limited in 2003, these are not by any stretch of the imagination to be equated to murder.

This writer is reminded when a former Prime Minister of this country took him aside and suggested there is no need to come across to the public in an aggressive manner in order to make a point. The admonishment was given, as an example, that to kill someone it may be possible to use a feather and a smile rather than a cutlass. To this day, I have remembered this lesson. For what it teaches, there are other ways to achieve a given result.

With a rate hearing, the intent of the Applicant is to have increased rates imposed on its rate payers who are their consumers. Therefore, without consumers, there would be no Utility. May I suggest, neither would there be any need for a Fear, Unfair or Fair Trading Commission (FTC). To go further, one has to question why Governments have not seen the obvious need to include the most powerful and important people in society – consumers – into the Social Partnership. All of us are consumers, unless by the mere dent of our financial position or ignorance we opt out of the loop.

By now we would know that as part of the process the Law allows for interested parties, called Intervenors, to represent fellow consumers in society. Unfortunately, the consumers of Barbados do not yet understand or appreciate the power they wield and will put up with whatever others in society throw at them, without creating much fuss, other than ‘the lotta long talk’ at the village bars and elsewhere.

The case for Intervenor Funding, as is conducted throughout the developed world by people who care about their communities, is nothing new. It is not some venture to discriminate against those who were called Lay Litigants, as if a perverted breed, but rather for people more accurately described as Public Interest Litigants to be a part of Participatory Funding.

At an Issues Conference, just concluded Thursday, 3 September, it was suggested that we put our case for funding to the Government. This shows a level of ignorance that people charged with commissioning a Regulatory Authority should not be credited.

I have to submit, that just as the Applicant will write the cheques to the FTC, as mandated by Law, its own army of Lawyers, Consultants and others attached to it, that those representing consumers must have similar treatment. They must not be told to be good volunteers. Let them alone decide for what they will volunteer. In fact, regardless of who writes the cheques, the consumers are the eventual payers of everything. To not understand this simple reality is to deny a people their rights in a democratic society.

There are two (2) fundamental and overriding recommendations for this type of funding:

  1. To establish the right to participate in the decision-making process
  2. To ensure adequate resources to make public participation in decision making meaningful.

Establishing the right to participate in the decision-making process

The legislation governing the FTC already permits for Intervenors to be a part of the process. Further, the Constitution of Barbados also provides for this right of assembly and participation.

Even the right to participate is not fully established by the FTC. Calls, on the eve of a Confidentiality Hearing, to the President of the Barbados Consumers Research Organisation, Inc. (BARCRO), Mr. Carl L. Ince – a former Ombudsman of Barbados – and me, as Representatives, were hastily made from the FTC to inform that as Intervenors to this Hearing, we were not welcomed at the Hearing conducted earlier on the morning of 3 September. We became members of the Public.

We have not grown up yet. Apart from the discretion of the FTC, nowhere in the Legislation or the Utilities Regulation (Procedural) Rules, 2003 does it stipulate that those who are party to the process are to be excluded from the very process. To think that those making these decisions are not those horrible Colonialists but people who look like us, is indefensible. One is reminded of the proverbial crab-like behaviour that will climb on the backs of others and once out of the barrel, carry on their merry way without even a glance at those on whose backs they trod.

Ensuring adequate resources to make public participation meaningful.

Let me quote from the Canadian Environmental Defence Fund, commissioned by their Ministry of the Environment (MoE) to conduct a study of the effectiveness of intervenor funding in Ontario. The study concluded:

  • “Intervenor funding is an important part of the environmental decision making process in Ontario, and although it can be taken for granted, it is essential in providing environmental justice. Funding intervenors should not only be made a permanent regulation, it should be strengthened as recommended in this study and the province should make a continuing commitment to the funding of participants so that private or environmental interest group resources are not constantly threatened by new projects or policy changes.”

The study also states, “Funding is not an endpoint – it simply provides a means for the public being at the table. Progress forward requires the inclusion of participant funding rather than just intervener funding.”

Reference to the above quotations is apt, since the very Fair Trading Commission Act, CAP.326B, owes as part of its Genesis, sections borrowed from the Act in Ontario, Canada. Section 46 of the Act, gives the FTC the discretion to award costs to parties. Except that the word “costs” is problematic and the High Court has already ruled on this matter. So, as Intervenors, we have to rely on Out-of-Pocket Expenses based on Cost Assessment Guidelines until this is corrected by our Parliament.

In a Notice of Motion to the FTC, the Representatives for BARCRO cited two (2) distinct issues for agreement: that Intervenors be awarded as per the High Court OPINION and “that WITNESSES, as may be summoned by Intervenors, be recompensed as per a schedule, in accordance with standard accounting procedures that shall be determined, at an ISSUES CONFERENCE of the Fair Trading Commission.”

Instead, the FTC never addressed the schedule but suggested that witnesses be “public spirited”. This is ridiculous and a travesty of justice. Since no one is suggesting that the Lawyers, Consultants and those attached to the BL&P and putting the case for the Applicant and, hence, against the consumers who will be the eventual payers, be public spirited, it is a gross insult to our justice system to deny WITNESSES, putting the case on behalf of consumers, equality of opportunity. This is not equity.

After all, during the 23 years from 1983 to 2005, BL&P’s Audited net income, prepared in accordance with the Historical Cost Convention as modified by the revaluation of property, plant and equipment, racked up profits of $220.948 million. For the 3 years from 2006 to 2008. Audited net incomes, without modifications, were $95.090 million or $31.697 million per year. It is to be noted that during those 26 years the Grand Total of, at least, $316.038 million have accumulated and, for not one year did BL&P make a loss.

Moreover, there is a cost for justice but to show that the results are fair and reasonable; injustice, too, carries a cost, except that added to that burden are unfairness and unreasonableness being the attendant baggage that the consumers eventually must carry.

H. Malcolm Gibbs-Taitt

Consumer Analyst

www.consumers.org.bb

11 responses to “Intervenor Funding–H. Malcolm Gibbs-Taitt”


  1. I could not agree more. It is a funamental right in a democracy. My feeling is that the FTC do not want to be bothered by having too many intervenors, which they feel might happen if funding was automatic. The lazy way out, with consumers being short-changed – yet again.


  2. “And because Government now can buy in large volume and can now source from Timbuktu and we dont have now the administrative costs of managing port elements that would attend to private sector imports, it means we can further reduce the price even further” – comments attributed to the Minister of Trade, Industry and Commerce, Dr. David Estwick, in the Daily Nation Newspaper, Monday, October 19, 2009.

    The above comments have been made in the context of this DLP Government seeking to establish a state food import agency.

    The fact is that we in PDC are CATEGORICALLY OPPOSED to plans to establish such a state food import agency, and do have some incisive criticisms to make concerning such a plan and concerning some of those very false propositions and assumptions that are presumably central to the reported rationalizations, if you can call them that, of this particular minister of government.

    Firstly, we in PDC are fundamentally OPPOSED to this backward DLP Government seeking to create greater and unnecessary statal bureaucracy and statal bureaucratic confusion for this country and its people. There is NO doubt that with this proposed state food import agency coming into existance there will invariably be greater and unnecessary statal bureaucracy and bureaucratic confusion. Furthermore, with greater state bureaucracy there is inevitably the question of increased wastage, inefficiencies and other huge problems that normally plague state bureaucratic operations in this country.

    So, those are some of the very henious states of affairs that have somewhat forced us in PDC to properly invite the public to support our bid TO make statal governmental affairs of this country less bureaucratic, more efficient and effective, by targetting for removal or reform those areas in the state that have long been wasteful, inefficient and that too often have rendered poor service to the public.

    Secondly, we are also fundamentally OPPOSED to this vicious DLP Government seeking to further burden TAX VICTIMS of this country with greater TAXATION in order to help create and maintain this agency. Also, with TAXATION being THEFT – it will invariably mean that the very portions of incomes of the relevant peoples, businesses and other entities that will be stolen by government and that will go towards funding this agency, will no longer be available for more efficient personal, individual private sector allocation, enterprises and undertakings, but will go towards a totally absolutely unwarranted unnecessary state agency that would have come about through some ministerial dictate, and NOT through the public asking for such an agency. What wickedly proportioned evil!!

    So, this is another set of circumstances that has caused us in PDC to ask the public to support our bid to Abolish ALL TAXATION in Barbados, so that there will be NO longer the violation of the incomes and property rights of persons, businesses and other entities in this country; so that there will be a far better allocation of resources across public and private sector markets in this country, and so that there will be a greater balance struck between social services and private needs and social benefit and profit maximization than currently obtain; and so that unnecessary unrational monstrous state expenditures will be significantly REDUCED – NOT expanded as Dr. Estwick is suggesting; so that the LONG TERM OVERALL COSTS OF INVESTING are substantially REDUCED; and so that there will be substantial reductions in the long term of the “price” levels in this country .

    Thirdly, whereas, it is true that the public has been demanding a significant reduction in food and other “prices” in this country, the institutional means by which the Prime Minister and the Minister of Trade, Industry and Commerce are purporting to be doing so – via some food import state agency – is to some extent being terribly overstated and exaggerated by them, and illogically hyped up by the Nation Newspaper.

    Surely, in the absence of greater public information and clarity of details, esp. as it relates to the (niche) market, administrative, legislative, regulatory basis upon which such an agency would proceed, we must publicly state that NEITHER the Prime Minister NOR the Minister of Trade CAN reasonably assume that an institution which will NOT even import 5% of ALL FOOD imported into this country, that will NOT even be capitalized equivalent to 5% of the total food import bill of the country; that will NOT even control 5% of the food business; will some how though be able to reduce by 50% the “prices” of many final goods to final consumers in this country.

    The fact is that the government WILL NOT be able to reduce “PRICES” systematically at each level from the point of landing to customs to accounting to storage to distribution to advertising to the point when these goods reach the final consumers, by at least 50 %, at each level involving the government itself and involving private sector competition and responses. Even so, to proceed in this direction – with so many component and cost factors involved – will therefore render useless, abhorrent and impracticable any notion that the government can bring down food prices in this type of import dependent country – unless, of course, if the government is ONLY looking a very miniscule number of food items – 20 or so – or be prepared to massively subsidized the costs of providing such food items.

    So, in response to such senarios that is why the PDC must say to the people of this country that a future PDC Government will – without bringing additional administrative marketing institutional costs to the government itself, or to the entire material market in the short or long term – make sure that imports of goods and services into this country will be zero-“priced” at all points of entry, and that ALL EXCHANGE RATES with the Barbados Dollar will be Abolished

    And, finally, the Minister falsely believes that by cutting some food prices between 40 and 50 %, that such will serve to primarily reduce the cost of living somewhat. What the Minister must in no uncertain terms be told is that in most cases consumers are NOT going to be able to earn or have enough disposable income to be able to purchase the said food items in desirable quantitites in the short to medium term; to have reliable accurate information about such food items and where they are being sold; good transportation and convenience in reaching such food items in order to help make this state enterprise a successful one.

    As it stands right now – and as it will be for some time to come – given the many intellectually bankrupt political financial policies of this backward DLP government – THE VAST MAJORITY OF CONSUMERS will continue to have very little disposable income to spend on food, or on a greater range of food than desired, principally because they will have mainly enough income to spend on bills and basic foodstuff.

    Also, what is of greater concern to the PDC is that there are multifarious means of earning incomes that are becoming more and more disrupted or vanquished by esp. government policy. For example, greater unemployment is coming about in the country, and more and more businesses are closing, or are becoming under financial stress, as a result of greater TAXATION, greatly fluctuating fuel costs, greater water utility costs AND THE FACT THAT THE GOVERNMENT HAS DELIBERATELY TAKEN MUCH money value out of the money circulation system.

    Too, the fact that the government is hardly a good supplier of reliable accurate information, and the fact that it is in many ways adversely affecting the overall quality of public transportation opportunities in the country, will, among other things, serve to seriously compromise plans to successfully establish this venture.

    So, in response to the latter points that is why we in PDC have said that a future PDC Goverment will ABOLISH TAXATION, ABOLISH INTEREST RATES, MAKE INSTITUTIONAL LOANS FOR PRODUCTIVE PURPOSES NON-REPAYABLE; a future PDC Government will make sure that as much timely reliable accurate information and reports are given out by the government in all of its commercial activities; and make sure that there is evolved a far greater more efficient and responsible public transportation system.

    So, there you have it!!

    PDC


  3. No…! Business interests (SBA, BMA, CoC) should fund their own objectors after all they will be affected as well. And consumers should fund theirs through a relevant association, which I might add would include political parties..!


  4. BAFBFP, fully agree with you.

    As a designated intervenor on behalf of my company, Sentinel Group Caribbean Inc., I was surprised to learn that certain entities expected to be reimbursed for their costs in appearing at the FTC hearings. I certainly did not expect to be reimbursed, neither would I have submitted expense claims.

    Sentinel Group subsequently withdrew as an intervenor because the FTC decided not to examine the issue of Net-Metering or a Feed-in-Tariff, part of what BL&P calls their “pilot project.” These subject were to form the core of our intervention. When they were shelved, there was no point in being there, especially when the citizens of Barbados were receiving such excellent representation from ROK and Chris H, as well as the other high-calibre intervenors.

    I discussed this with both ROK and Chris Halsall, and felt very strongly that these issues should be on the agenda because they directly impacted BL&P’s rate increase request. However the FTC made their ruling and we must abide by it.

    Nevertheless BAFBFP, I fully agree with your position.

    Kind Regards.

    Iain Edghill.


  5. Iain Edghill

    Please if you will consider me an eternal cynic, but the FTC’s decision to pull further consideration of the Net-Metering and alternative energy policy serves only to reinforce my belief in a bias towards the Utility as was the case with Cable and Wireless a couple years ago. Up front I am no fan of Chairman particularly after he decided to take up the chair of the FTC at a time when there were the numerous resignations on ethical grounds from the institution. Every time an intervener is interrupted by him I automatically seek an alternative agenda for his doing so.

    I sympathise with you.


  6. I do not know, but I would like to believe that the hearing is funded out of net profits; that is that the share holder (BL&P Holdings) pays the costs of its own damned application…!


  7. @Iain Edghill…

    If I may, in the short form:

    1. Thank you for your kind words above. It was a true pleasure discussing the issues before us when we met.

    2. I also agree with BAFBFP… IMHO, Intervenors should not automatically be compensated for the simple reason that some bring no value.

    2.1. Further, automatic compensation would probably increase the likelihood of many who bring no value stepping forward to waste time in order to claim compensation.

    3. Mr. Edghill et al… You might have missed the notice in today’s Advocate from the FTC — the paid-for add in the right-hand-lower-corner of page 25.

    3.1. Please see http://www.barbadosadvocate.com/todayspaper/2008/20091021WWW/20091021_P25.jpg

    3.2. Interestingly, this did not appear in today’s Nation News. (I’m happy to be corrected on this.)

    3.3. Nor does this notice appear on the FTC Web Site. (I’m happy to be corrected on this.)

    4. Hmmm….


  8. @BAFBFP

    Actually we queried Sir Nicholls appointment to the FTC Board when he was still Chairman of the SEC. A clear conflict of interest.

    @Chris

    You are prepared to throw out the baby with the bath water? Let us compensate the Intervenors and at the same time agree to a system which evaluates Intervenor performance or participation, try something, but to do nothing? Would you say the majority of the Intervenors are doing a good job?

  9. Dennis Jones (aka Living in Barbados) Avatar
    Dennis Jones (aka Living in Barbados)

    If the notion of compensation is to be based on performance that would open up a very interesting discussion, not least on who would measure the performance. You could have the proposer ‘winning’ but based on lousy performances (in the eyes of the objectors and even more objective observers), or the objectors ‘losing’ on the basis of brilliant performances (in their eyes and in the eyes of objective observers).

    Corporations can be reasonably expected to cover their own expenses (we know that they will try to recoup these through sales, tax write offs, etc.).

    Individuals may have a hard time funding their participation and may be kept out of the process simply on cost grounds. Not desirable. So the public purse should stand ready to fund them. A basis for doing that can be established.

    NGOs/non profits may be in a tricky position. They may have funds set aside to deal with such expenses (it may be part of their raison d’etre), but then again they may not. Perhaps BANGO participants can speak more to that.

    Bottom line is that a public process has been set up and for it to work as it is intended then costs should not be part of the equation. But it may be like jury duty where one often gets just minimal covering of ‘subsistence’ and ‘travel’ costs.


  10. We are discussing depravity on another thread and much of the discussion is focussed on defining morals in terms of promiscuity and spirituality. But ca’dear, couldn’t members of religious fraternities (which comprise to the full spectrum of required professional skill) for a few weeks take their pious heads out of the clouds and do God’s work by contributing to the effort on behalf of members of the congregation and the country?

    Will Henry Forde and the members of the commission be paid from retained earnings…???


  11. Chris H, many thanks for bringing that FTC ad to my attention: I missed it when I read the Advocate briefly yesterday. I will ensure that I make a deposition to the FTC re. Net-Metering and Feed-in-Tariff. Interestingly, I just heard yesterday of a case in Ontario where one private producer of electrical power has begun to be compensated under the Ontario Power Authority’s F-I-T programme. He reckons his payback time has been reduced to 5 years with the Feed-in-Tariff. If only…

    Dennis J, the jury duty analogy is a very good one. That may work.

    Best Regards all, and keep up the good work Chris and ROK and all the other intervenors.

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