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Dr. Justin Robinson Misrepresented On VAT Issue: Pondering The Options – Increase The VAT Or Lobby For The Dreaded Wage Freeze

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The following statement was received from Head of Management Studies Dr. Justin Robinson, UWI, Cave Hill

Dr. Justin Robinson

I want to state categorically that I did not call for an increase in VAT.  The traditional media chose the sensational approach to the issues raised in a panel discussion titled, The Fiscal Deficit, Causes and Possible Solutions.  In my presentation I outlined what I saw as the causes of the deficit and a number of possible ways to correct it.  I outlined, economic growth, borrowing, revenue raising measures and expenditure cuts as possible solutions.  Under the heading of revenue cuts I stated that if it got to the point that the government needed revenue raising measures then in my opinion the VAT would be the best approach.  I stated that this should be an absolute last resort.  The presentation was somehow reported as me calling for an increase in VAT.

The many issues which are swirling at this should serve to hone Barbadian sensitivity to the seriousness of the economic situation currently affecting the country.  The current debate about whether the University of the West Indies, Cave Hill should reduce the inflow of Barbadian students, there is the recommendation by Minister of Economic Affairs David Estwick to Prime Minister Thompson that he should negotiate a wage freeze and finally the recent suggestion by Head of the Department of Management Studies at Cave Hill Dr. Justin Robinson that the government should consider a 1% hike in VAT to respond to the current cash flow worry. The pleasing aspect about two of the contentious issues being discussed is the involvement of University of the West Indies, Cave Hill lecturers. Cave Hill has attracted criticism over the years about the silence of its scholars.

Of the three suggestions the one floated by Dr. Justin Robinson is interesting. It is the one issue of the three which falls entirely within the control of government to change. Prime Minister Thompson in his recent press conference was quizzed by journalists about the more emotive issue of the wage freeze. Thompson in an attempt to deflate the issue rebranded Estwick’s suggestion a moratorium. He also was deliberate in pointing out that a moratorium on public sector salaries required the cooperation of the unions and the social partnership. Quietly mentioned by the PM was the option to reform the current tax system. While the wage freeze is getting a lot of airplay, the politically savvy Thompson is aware of the downside to freezing wages given the shadow of the Sandiford 8% cut which he has to live under.

The Value Added Tax (VAT) was implemented in 1997 by the Arthur administration and sold to Barbadians that by rationalizing the 11 taxes it replaced it would:

  1. lower overall tax rate
  2. broaden the tax base
  3. more efficiently collect revenue
  4. a more transparent tax

Interestingly the the VAT was contemplated by the DLP as far back as 1978.

The way the VAT works exposes a downside to Dr. Robinson’s suggestion if not efficiently managed should the government implement. VAT is described as a regressive tax. VAT is a consumption tax which is added to any value to the product or service along the production or supply chain. The reality that Barbadians at the lower end of the economic ladder spend more of their income than those above them does make it a regressive tax. If the government is to implement an increase in VAT, the suggestion by Dr. Robinson is 1% – to compensate, the exempt basket of goods and services would have to fairly contain those products and services routinely accessed by Barbadians at the lower end of the economic ladder. If the government can get the exempt basket right, the objective to increase VAT and generate needed cash flow, BU considers this the better option to a wage freeze at this time. It would mean those who can afford it would proportionately pay VAT.

The confidence level and the psyche of Barbadians are intangibles which the government has to weight at this difficult time. The public sector in 1991 had to carry the load with the 8% wage cut. Additionally, by reducing the circulation of cash a wage reduction would bring at this time has repercussions. Bear in mind the government is the largest employer in the economy.

The business of tax adjustment and reform is a complex matter, BU look forward to a solid national debate on Dr. Robinson’s suggestion.

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105 responses to “Dr. Justin Robinson Misrepresented On VAT Issue: Pondering The Options – Increase The VAT Or Lobby For The Dreaded Wage Freeze”

  1. Christopher Halsall Avatar
    Christopher Halsall

    @David et al…

    Just for clarity for this discussion…

    Let us please be *very* clear that the proposed “wage freeze / moratorium” would only effect “public sector” workers. Read: those who work for the Government.

    A VAT increase would affect *everyone* who consumes any product or service here in Barbados (except those VAT exempt, of course). This introduces what is known as “friction” into the marketplace.

    So then the following questions logically follow:

    1. Exactly how many workers would be directly affected by this suggestion of them not receiving a pay *raise* in the near term?

    2. Exactly what is the average wage earned by these workers currently?

    3. Relatedly, exactly what is the average wage earned by those in the private sector?

    4. Relatedly, do those in the private sector have any guarantee of a pay raise in the near term in these troubling times?

    5. Approximately how much revenue will be generated / expenses saved from each option?

    This should be a very interesting Blog….

  2. The People's Democratic Congress Avatar
    The People’s Democratic Congress

    “The business of tax adjustment and reform is a complex matter, BU look forward to a solid national debate on Dr. Robinson’s suggestion” – the final statement in the BU blog above.

    As you can see from our last post, under the thread Principal Sir Hilary Beckles and Professor Howard in Public Disagreement at UWI, Cave Hill, David, Dr. Robinson is simply suggesting absolute nonsense.

    So, there will be is no solid national discussion on his suggestions – other than there might be generic discussions on the VAT and many of its implications. Please see it if you have not yet.

    PDC

  3. Christopher Halsall Avatar
    Christopher Halsall

    @PDC…

    Could you please tell us how you would pay for *anything* under your proposal of “no tax”, let alone all of what you promise to pay for?

    Are you advocating anarchy?

    Please remember that I’ve read most of (and skimmed the rest) the several hundred pages of your manifesto, as was documented publicly here on BU only a few months ago.

    I believe my (public) conclusion was less than flattering.

    PDC, if you’re going to present yourself as a viable “Third Party”, could you please understand Economics?

    And please be viable….

  4. The People's Democratic Congress Avatar
    The People’s Democratic Congress

    PDC, if you’re going to present yourself as a viable “Third Party”, could you please understand Economics?

    And please be viable….

    The members of our party surely do not wish to understand much economics either – other than to properly realize that it is surely eminently better for certain peoples and countries esp. poor and developing societies of this humanized world to totally deemphasize it – along with Western Finance – because it is the ideology, philosophy and psychology of a particular variant of the Caucasian man – and which has been used by this said man against millions of his own people – sub elite classes – and against all other non-Caucasian races – to make sure that he continues to dominate and oppress this world and at the same time to continue extracting and accumulating income, wealth and resources from the peripheries of this humanized world to the core of his societies.

    Contray to such ominous designs, our ideas, policies and programs represent what we think, sometimes, and what we know, sometimes, are good for the overall development of this Barbadian society and of many societies of this world.

    PDC

  5. Visus Avatar
    Visus

    I attended a church service tonight, where a prophet said although things look gloomy now. The economy of Barbados will rebound in 2010, business owners will see returns not seen in 2009.

    I saw a few miracles, and I am waiting to see if what he said will come to pass.

    Link: http://bit.ly/bDb6I6

  6. Bush Tea Avatar
    Bush Tea

    @ PDC
    I am pleased to say that the bushman actually read one of your posts….
    The truth is that since the advent of the Dick, wanna posts don’t look so daunting anymore….

    But wanna fellows serious?!? one of wanna got a money tree plant somewhere?

    …man try and answer Chris’ question do…

    in one sentence…

    When wanna scrap taxes, how wanna going pay for ANYTHING?

  7. The People's Democratic Congress Avatar
    The People’s Democratic Congress

    To: BushTea

    (Certainly, this is our very last post tonight)

    You remember that fairly exhaustive duel that you and a member of our party had on here some time ago – and where somehow you ended up entering through one inlet of a big intellectual labyrinth and could not find your way back out? Well, please remember!!! For your own safety, we would NOT wish for you to experience such again.

    But, there is one clue – the money is already in the financial system and there can be more – just simply a matter of the state repositioning itself in relationship to the core financial system, and rather than stealing your and the incomes of others – it makes profound use of, and seriously assists in circulating throughout the country – unused underused productive money value in such a system.

    Thus, the state will be able to borrow money – and just like most Barbadians and Barbadian owned entities would be able too to so do – to borrow such from such financial institutions making up the core financial system of this country – and NOT have to repay it – just one strategy of the many strategies of ours to support a no taxation paradigm for Barbados. Thus, a huge chunk of our debt problems will also be solved.

    Sorry, Crusoe, respond to you later.

    PDC

  8. David Avatar
    David

    @PDC

    Forgive BU but we must please duncey on the idea of understanding your no taxation concept. Our limited understanding of these matters the question of how the government would finance the revenue side of its annual budget kept surfacing and also how the Central Bank would manage the M1 of the country.

    With no taxation how would national development be managed to replace the concept of budgeting? Don’t be long in reply and go easy on the jargon. We have no direct taxes under your system; we also have no indirect taxes such as VAT right? Simply tell us in your monetary and fiscal system how does the crown general revenue and don’t tell us about selling goods and services because the state still has to find money to pay for inputs.

  9. kiki Avatar
    kiki

    Tax code NT. Indicates that no tax is to be deducted on your .income.
    Forward With Jah Orthodox
    Dash It Pon Him
    Be Thankful

  10. kiki Avatar
    kiki

    sorry bad link ‘Typo’ * Dash It Pon Him

  11. peltdownman Avatar
    peltdownman

    The fact is that, at the moment, the VAT is the most efficient way of collecting taxes from those who operate outside the formal economy. With this very large percentage of the population living and doing business without paying any form of direct tax, or National Insurance, the government is being deprived of a huge chunk of revenue. My feeling is that successive governments have not gone after the taxing of this sector because of the livelihoods that it provides. The downside is that a disproportionate amount of government’s revenue comes from the “formal” sector, which in turn reduces that sector’s efficiency by keeping costs high. At this stage, a small increase in the VAT would appear to be the way to catch the largest number of persons in the net, thereby sharing the burden more evenly.

  12. Donald Duck, Esq Avatar
    Donald Duck, Esq

    Dr Who does not seem to remember that the British government not too long ago reduce the VAT rate for a year because britian was in recession.

    Has Dr Who determined what the impact would be on spending if there is a 1% increase in the VAT rate in Barbados.

    Dr Who, why not try and iron out the issues which the VAT office faces so that it can run efficiently and collect what it is supposed to collect.

  13. peltdownman Avatar
    peltdownman

    Donald Duck Esq

    These are good points, but the Barbados economy is a lot different from the UK economy. It would be interesting to see if there had been any change in the demand for gasoline and diesel in Barbados since the government removed subsidies. Casual observation would indicate that there has not been a decrease in the use of vehicles. Provided that a certain “basket” of goods can be exempted from VAT to protect the unemployed and the low-income earners, the apparent inelasticity of demand for many items might indicate that a a small increase in the VAT would work.
    By the way, the UK economy is far from being “out of the woods”, but the VAT has reverted to its original level.

  14. Johnny Postle @ Avatar
    Johnny Postle @

    @PDC

    I have read only one interesting piece of commonsense discourse from you. The rest has always been a bunch of rhetoric and superfluity of words. Surely you are not serious about the way you intend to handle taxes, which sounds more delusional and out of touch with reality than the execution of careful thought and planning. Sorry PDC but if you intend to convince voters towards your policies you need to come up with something far more tangible than the hogwash you are proclamating.

  15. kiki Avatar
    kiki

    PDC option of nationising banks and ensuring profitability sounds perfectly valid to me

  16. kiki Avatar
    kiki

    A government could take control of other financial services such as
    Credit Card and Debt Industries
    Insolvency and Legal Firms

  17. kiki Avatar
    kiki

    sorry spot the obvious typo above
    misspelled that dirty N word
    Nationalising

  18. peltdownman Avatar
    peltdownman

    @kiki
    Nationalisation and profit don’t often go together, Kiki!

  19. kiki Avatar
    kiki

    Obviously governmental corruption and incompetence would also need to be addressed

  20. kiki Avatar
    kiki

    The worst kind of criminal is one in public office make them all accountable and arrestable

  21. Donald Duck, Esq Avatar
    Donald Duck, Esq

    Peltdownman

    The uk vat rate wbnet back to its previous level at the beginning of this year. It did not go above the previous limit.

    Some of you may remember when the “Cess” was introduced in Barbados to dampen our appetite for imports. It came off when the government said it would. However this was done for a different purpose than what Dr who is recommending an increase in VAT for.

    Remember this government in 2008 promised to widen the scope of the environmental levy to cover locally manufactured goods. However it is not known why it has not been able to implement this tax.

  22. kiki Avatar
    kiki

    All the old school thinkers and financial experts have now become dinosaurs or dodo’s also known as ‘Didus Ineptus’.
    We need new thinkers working outside the box (corrupted capitalistic system)
    Be careful

  23. X-man Avatar
    X-man

    @ David
    off message

    Let’s hope that Barbados is equally monitoring people who pass through its airport.

    http://gulfnews.com/news/gulf/uae/crime/dubai-s-sophisticated-security-apparatus-checkmates-mossad-1.585633

  24. David Avatar
    David

    @X-man

    Thanks, been following this case with interest.

    @All

    Is Dr.Robinson by his suggestion assuming the prevailing economic situation will not negatively impact the level of money circulation and therefore reduce the level of tax collection?

  25. Brutus Avatar
    Brutus

    I had gotten the impression that Dr. Robinson did not recommend an increase in VAT, but that he had said if government absolutely had to resort to revenue raising measures then the best way to do this would be a temporary increase in the rate of VAT.

    This seems to be confirmed by the report in the Advocate:

    “Revenue raising measures, especially tax increases, should be avoided at all costs. However, Head of the Department of Management Studies at the University of the West Indies, Cave Hill Campus, Dr. Justin Robinson, said that if it does come down to that, the option available to Government may be to raise Value Added Tax (VAT).”

    In the Nation report, he is quoted as referring to this as “a last resort”.

  26. Justin Robinson Avatar
    Justin Robinson

    Its been a most interesting 48 + hrs for me. I have been on the receiving end of a number of choice remarks. The remarks that I know of include joker, murderous, trying to kill the poor balck man while enjoying a fat salary. Wuh loss

    I blame Dennis Jones for this though, he should have warned me.

    Let me state for the record that I did not suggest that the government go and increase VAT to deal with the current fiscal deficit. I was asked to speak on the topic ” The Fiscal Deficit, How Did We Get There and Possible Solutions.”

    trying not to be a silent academic I agreed. I outlined a number of possible solutions to a fiscal deficit:

    Economic growth;

    Borowing to tide over;

    Revenue raising Measures;

    Expenditure Cuts;

    Under the heading of “Revenue Raising Measures” I indicated that if the government were to go for the revenue raising option then the VAT would be the best of the revenue rasing options. I indicated that revenue rasing measures should be avoided at all costs and used only as an absolute last resort.

    These comments were somehow reported as my calling for an increase in VAT. Since then its warm lashes for me. For my sake I have to hope that the government does not increase VAT.

  27. Christopher Halsall Avatar
    Christopher Halsall

    @Brutus: “…if government absolutely had to resort to revenue raising measures then the best way to do this would be a temporary increase in the rate of VAT.

    The question then becomes: might Government then reasonably take measures to reduce (or maintain) current expenses (and reduce future expenses in the near term) which might result in it not requiring an increase in the VAT?

    @Justin Robinson…

    A very sincere welcome…

    I hope you can help us all get a little more serious about what faces us all, and what we all might best do about it.

  28. kiki Avatar
    kiki

    Maybe individuals or families could be treated with the same tax status and privileges as Corporations are allowed such as reduced tax on dividends drawn and being able to offset certain expenses against income / profit.

  29. kiki Avatar
    kiki

    Initial analysis
    Deconstruction + Reconstruction of Government and Financial Systems is required
    i.e. get rid of all the dead wood (chop chop chop)
    Poor People Must Work

  30. Brutus Avatar
    Brutus

    @Christopher Halsall,

    Here is what Clyde Mascoll suggests:

    “Whatever is done must not stifle the working poor anymore. The move is to offer the unions a combination of a small wage increase and a reduction in the lower income tax rate. There is only one problem with this proposal, it must be accompanied by expenditure cuts because of the fiscal crisis. ”

    So all that is really left to decide is which expenditures will be cut.

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

    @Justin Robinson,

    Sorry that I did not give you a tutorial in warm lashes, but it’s a quick study. All will be fine in the end: look at me, I became a ‘Barbadian’ today.

    At least I heard what you said, and I know that the ease with which it could be taken out of context, and as I warned any policy prescription in the absence of the Minister would be fodder for the media. That said, it’s good for the discussion to roll on about what options do exist for dealing with the fiscal problems and economic management more generally. This is not an area just for trained economists, and the more people who understand the difficulty of choosing from a set of unpleasant alternatives the better.

  32. David Avatar
    David

    @WIV

    Why did Minister Estwick not attend this discussion? Highly disrespectful. Hope this is not a case of Estwick being muzzled.

  33. kiki Avatar
    kiki

    The challenge is to reduce public expenditure and improve public services..

  34. ac Avatar
    ac

    I can’t afford an extra fivecents on a bottle of soda. Leave the Vat alone. Temporary wage freeze. Somebody can
    give up one of dem cell phones.

  35. Christopher Halsall Avatar
    Christopher Halsall

    @Dr. Justin Robinson…

    If I may give you (et al) a little advice…

    If you don’t control your message, those who claim to convey your message will control you.

    Manage your presence…

    You won’t always transmit each and every message exactly as you which you had conveyed it…

    But in the aggregate, over time, your true message will come through.

    (FWTIW)

  36. Micro Mock Engineer Avatar
    Micro Mock Engineer

    Dr. Robinson,

    I just watched your presentation on CBC, and I have to say that I found it most illuminating and insightful. Keep up the good work.

  37. Avatar
    Anonymous

    Just saw it too. Excellent presentation Dr. R. Very well structured/set out and clear to follow. How could the Nation get it so wrong?

  38. Avatar
    Anonymous

    Anonymous,you really had to ask that question though???!!! The answer real obvious

  39. David Avatar
    David

    Dr. Robinson and anyone who takes a public stand on any economic issue at this time should be prepared to defend their honour. It is how Barbados has become, a pit of political vipers.

  40. Bush Tea Avatar
    Bush Tea

    If you look at this carefully, you may understand how the establishment – through their press connections , were able to silence and control public opinion in the past.

    Like Peter Wickham before him, Dr Robinson is able to come to this forum to easily explain his true position.

    in the past, no matter WHAT he actually said, the media was able (and willing) to decide what they wanted the public to hear…(especially the editors)
    …as often, the reporter would tell you that the final slant was not their decision

    This frustrated many and led to some being quiet out of fear of being discredited by the press.

    I say long live BU.
    Even if we tried to do the doc a disservice here, he is free to come and fully represent his case.
    Now THAT is 21st century press.

  41. """ FIRE """ Avatar
    “”” FIRE “””

    Errol Walton Barrow is one of the greatest men to ever grace this country. This man needs to be studied. Let me say that I myself must study the man.However I was present for the’mirror image’ speech and even though I was very young at the time and knew and could feel that it was something special but the full import of that speech did not hit me until sometime after. I mentioned this to say that Errol Walton Barrow was master and he has influenced many including Owen Arthur.

    Owen Arthur is a ‘master’ and those who want to deny that can go and bag their heads. All of a sudden this economy seems the most difficult to handle and all of a sudden people are shouting statements about who should do what and what should be done to correct the economic mess created by the Thompson adminstration. Errol Walton Barrow handled the economy and country masterfully.

    Owen Arthur is a master and I am confident that Owen would have handled the economy much better than David Thompson.

    Reminds me of cricket: when the masters left , all of a sudden West Indies cricket seemed like the hardest ordeal ever and everybody was shouting from the roof tops as to what should be done and who should do what.

    The electorate made a big mistake and those who assisted in misleading the people should hang their heads in shame. I am very very angry with you people right now and I am tempted to throw curse words your way.

  42. """ FIRE """ Avatar
    “”” FIRE “””

    The Media has operated this way for a long time. Errol Walton Barrow was not a lover of the Media and the way the Media operated.

    He was not a lover of the courts either and his advise to poor people about staying out of the courts is now legendary.

  43. """ FIRE """ Avatar
    “”” FIRE “””

    advice

  44. The People's Democratic Congress Avatar
    The People’s Democratic Congress

    David,

    We did a very excellent response to your questions yesterday morning. But we dont know if spies caught up with it but what we do know is that when the submit “button” was clicked on, the sending process froze from then until quite recently. And this has meant that we have been unable to retrieve such an excellent post.

    However, what we have done now is to just present in point form what we could barely remember was written to you this morning for your consideration.

    So here we go.

    1) We have postulated that with the Abolition of TAXATION, INTEREST RATES, EXCHANGE RATES PARITIES WITH TE BARBADOS DOLLAR, etc. and with other modern rational strategies and sub systems taking their places, there will be the coming about of unprecedented high levels of national output, income, expenditures, consumption, investment, real savings, exports, imports etc, sufficient that such will redound to the further social welfare physical infrastructural and security development of this country.

    2) Having said so, we must AS SOON AS POSSIBLE win elections for the House of Assembly in this country, and must do this by an overwhelming majority – quite more than a two-thirds majority. Such a mandate we will continue to ask the voters of this country for over and over.

    3) Having got such a mandate from the voters, the PDC will lead the charge in making sure that many political constitutional and legislative changes are carried out in this country in support of the above and below and other principles and policies of our people’s centred developmentalist party.

    4) There must also be the recognition of persons reading this information now that there will be a grand effort by this PDC government to integrate these particular political, financial and strategic policy and sub-systemic changes ( Abolition of TAXATION, INTEREST RATES, etc you know the lines already) with these particular political financial and environmental structural and operational changes ( a new state management entity ) in order to properly understand that there must be a great measure of coherence and harmony and circularity involved in the conceptualization and the designing of such changes in order to achieve the best results for their patrons.

    5) Thus, following on from 4 above, there will be the establishment of this new state management entity that will be responsible for the business of the managing of the affairs of the state. It will replace the Crown, the Ministry, Ministries, statutory corporations and all other state bodies, in all of its different manifestations – through the creation of Divisions, Subsidiaries, Boards of Directors, etc.

    6) Such a new state management entity will be part owned by those who are now present day political heads, permanent secretaries, administrative officers, general workers, etc., those who make up the boards of statutory bodies and their present day workers, and those who are part of other so-called state-owned entities altogether composing the entire public service. This entity will also be part-owned by those who are present day workers within the judicial arm of the government and by those who will make up the legislature of this country. Such partners will have great say in the decisional and policy making and managerial processes of the Divisions, subsidiaries, and other entities that will make up the holistic structures of this state management entity. They will also be remunerated in profits and dividends at agreed times and based on agreed principles and rules. A similar type of transformation will also be engaged in the private sectors of this country.

    7) The political heads of the three major components making up this entity will be elected by the people. For example, the Cabinet, which will be an executive coalitional cabinet – will see candidates vying for a number of pre-fixed positions for parties (11), a number of pre-fixed positions for non-party political organizations (5) and a number of pre-fixed positions for independent candidates (3) in it – and which will total 19 positions in all, as a general rule, and which will be subject to alterations.

    8) The head of the Cabinet will be the President, and the deputy head, the Vice President – both of whom at first will be elected by members of the Cabinet and then at a later stage in the evolution of the Cabinet will be directly elected by the people. The President or acting President will NOT have the power to dismiss any minister or any person from the Cabinet – ONLY to assign to and remove portfolios from those who he/she has the power to assign to or remove such from.

    9) The Judiciary, which will be headed by the Chief Justice, or deputy headed by the deputy Chief Justice, will be made up of elected Court of Appeal and High Court Judges. The Court of Appeal positions will be vied for by candidates who would have been already Court of Appeal Judges, High Court Judges or persons who have had 15 or more years experience as practising attorneys including state attorneys – The High Court positions will be vied for by persons who have already been High Court Judges, Magistrates for 7 years or more or persons who have been attorneys including state attorneys for 10 and more years.

    10) The Legislature will be made up of constituents who would have been selected by other constituents to fill about 200 positions, we think, in each Constituency Assembly in each Constituency in Barbados. Such Constituents will decide, debate and then pass legislation of this country. Too, there will be the head of the Legislature whom will be elected by those Constituency Assembly members at a convenient meeting of all Assemblies.

    11) In so far as the state budgetary process is concerned this will be the responsibility of the Secretary of Finance of this state management entity, whom shall be an independent member of the Cabinet and whom shall be a seperate person from the President or Vice President of the Cabinet.

    12) Having prepared a financial budget, he or she shall before the ending of the financial year, but at a reasonable time before the upcoming financial year, send such a budget of income and expenditure for the financial year ahead to the Standing Committee of Finance – which will be a Constituency Assembly tasked with looking into and monitoring all possible matters related to the business of financing the affairs of the state as well as that of this state management entity – for it to evaluate and criticize and then for it TO PASS OR NOT PASS by simple majority such onto the entire Legislature for its deliberations and conclusions – acceptance, rejection or modification by its own simple majority. This particular Appropriation Bill – once successfully passing these stages – will then be taken to the present parliament building to be signed into law by the Head of the legislature on behalf of the people of Barbados.

    13) With such political constitutional legislative changes coming into existence, there shall also come into existence the granting of certain powers, capacities and duties to certain Divisions, Subsidiaries, and other entities of this state management entity, to raise and spend their own incomes without having to seek the authority or approval of the legislature. Such entities shall however provide the Standing Committee of Finance with plans of its own intentions to engage in such income raising and spending activities. Where an entity has been a beneficiary of financial allocations from the legislature and after it has engaged in commercial activities it will be required to reimburse the Treasury before the end of the particular financial year in which it can afford to do so. Any excesses it will keep and manage by way of setting up its own funds and accounts that will help it to properly manage its incomes.

    14) Such entities will adhere to strict and stringent accounting, auditing and financial reporting standards and will from time to time be called before the Standing Appropriations Committee to account for its money affairs.

    15) Owing to the removal of TAXATION from the political financial system of this country, there will be many strategies and sub-systems that will replace such and that will substantially support this no-taxation paradigm.

    Here are 2 ways in which the State will earn its own revenes, ( 1), by offering shares to the public in commercially viable solely owned or joint venture owned arrangement – say, in relationship to such arrangements that will provide for the proper mining and converting and marketing of our oil and gas resources – whether on or off shore; and (2), through the selling, leasing or renting of so-called state owned housing and industrial and marine spaces and buildings, or through the rendering of products and services to buyers and users of such respectively in the precincts of some of our very important national strategic assets, like the Seaport and Airport.

    16) With regard to this state management entity it shall also have the power and authority like Barbadian citizens, Barbadian owned businesses and other entities, to enter the core financial system and get money/value for productive purposes and NOT have to repay it. There shall be a maximum limit placed on the amount that this state entity can get in certain given years.

    17) With these things in mind (12 – 15), it shall mean that no longer will the state sector be seen by many as mainly a social welfare regulatory administrative enabling sector, but must also be seen as a major productive distributive sector – whereupon there will be the thrust to make sure that all the talents, skills and aptitudes of those who will become partners in this state management entity will be used to make sure that, et al, this sector offers excellent customer and customer friendly service, the best in “prices” for commercial products and services, the most affordable and reliable in social informational goods and services and the most effective in terms of judicial options and packages for individuals businesses and other in the respective personal, business and social sectors. Thus, it will no longer be necessary to see this state sector being described in the infamous words of the late Errol Barrow as an army of occupation.

    18) Where the money supply is concerned, the PDC will make sure that there is sufficient productive money at all times to meet the demands for money/value of productive individuals, productive sectors and others in this country. Such will be consistent with the objectives of the PDC to make sure that 8 to 10 % average annual real growth rates are registered in this country, and on a sustained basis, and consistent with our strong views that money is to be primarily seen as a medium of exchange and NOT as carrying any inherent proprietary interests, esp as regards a few who hold on to it as if it is theirs and very insensitively at a point in time when others must have use of it.

    19) Thus, the PDC will discard with this stupid notion of inflation and thus too of this policy of using Western fiscal and monetary measures to contract the money supply on some false assumption that to do so will REDUCE or CURB inflation in the country.

    20) With regard to there being substantial money value circulation in the country, there shall be two policies which will be put faily early in place by the PDC to make sure that the country is as much as possible autonomized away from many external shocks and to make sure that the cost of living and doing business in Barbados are kept to a minimum. There are, (1), MAKING SURE THAT IMPORTS OF GOODS AND SERVICES ARE ZERO-PRICED AT ALL POINTS OF ENTRY, and, (2), MAKING SURE THAT ALL EXCHANGE RATES PARITIES WITH THE BARBADIAN DOLLAR ARE ABOLISHED.

    21) The PDC will ensure that there are techniques and approaches for the monitoring and checking of the effectiveness and effecience of these ideological political constitutional legislative financial changes in this country consistent with the expectations of the people of Barbados and those of a future PDC Government.

    PDC

  45. The People's Democratic Congress Avatar
    The People’s Democratic Congress

    kiki,

    Thanks for the support.

  46. David Avatar
    David

    Hopefully an apology will be forthcoming to Dr. Robinson and going forward it is time we demand accountability from our fourth estate. The issue of misrepresentation of people’s views has implications for reputations and inciting unnecessary rage in our society at a time when we can least afford to have it.

    Where is the responsibility or outrage for that matter?

  47. The People's Democratic Congress Avatar
    The People’s Democratic Congress

    “I want to state categorically that I did not call for an increase in VAT.” – Dr. Justin Robinson on BU in a response to some public criticisms of his suggestion that raising the VAT is an option for government at this stage.

    Who ever said that Dr. Robinson called for an increase in the VAT, certainly NOT the PDC, NOT the Barbados Advocate and NOT the few people that we have heard discuss this proposal

    “Let me state for the record that I did not suggest that the government GO AND INCREASE VAT to deal with the current fiscal deficit” – Dr. Robinson on BU in yet another response to some public criticisms of his suggestion that raising the VAT is an option for government at this stage.

    Whoever said that Dr. Justin Robinson suggested that the government go and raised the VAT, certainly NOT the PDC, NOT the Barbados Advocate and some of those persons who we have observed discuss this so-called issue.

    But for all intents and purposes there have been no substance in Dr. Robinson’s responses on here.

    PDC

  48. Inkwell Avatar
    Inkwell

    By now, everyone should be convinced that the PDC comes to you direct from La La Land. They cannot answer a simple question with a simple answer; why? because they don’t have one that makes any sense.

    Now we all know how to get to heaven without dying. You bore the gatekeeper to sleep with interminable, delusional, nonsensical rantings and slip in.

    Thank God for the Page Down key, which mercifully rescues me from their idiocy.

  49. JC Avatar
    JC

    @ Inkwell

    h ha hahahahahaLOLOLOL funny!

    @ Bush Tea

    Well said!

    Long live BU!

  50. kiki Avatar
    kiki

    Living as a poor is a crime

    Do not underestimate anyone
    Step Inna Me Tracks and Socks

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