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Look Where The 1.5 Billion Gone

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Submitted to BU as a comment

Credit Photo:Bajanfuhlife Blog

There is no great mystery to the 1.5 billion.  The borrowing is the price for keeping the employees in government and statutory corporations employed during a recession, providing the same level of access to social services (like free university education, bus fares at 1.50), providing support to the hospitality industry and a modest fiscal stimulus.

Wages and salaries were 783.7 ml in 2008 and and 881 ml in 2009.  Transfers and subsidies (payments to the university, community college, QEH, BTA, Transport etc, to subsidize their salaries and other costs), were 1,075 billion in 2008 and 1.135 billion in 2009. Capital expenditures (which Ince does not seem to understand) were 286ml in 2008 and 283 ml in 2009.

To put some context the salaries and wages bill was 797.6 ml in 2007, transfers and subsidies were 901.7 ml in 2007 and capital expenditures were 241.4. Our fiscal problems did not start with the new administration.  The recession and hence slow down in revenues shows how vulnerable the economy is on the fiscal side.  The fact that the previous off budget spending is now clearly highlighted also means that we can observe the issue more clearly (no more Greece style accounting).

Now when professor Howard suggested that we slow the rate of increase in UWI students he was nearly crucified.  I noted that Mascoll (who works at UWI) took that off the table as a corrective measure, despite the fact that UWI is one of the largest transfers.

When Robinson spoke of a vat increase he was cursed out of town.

When Estwick said wage freeze he was shouted down by the unions in particular.

When Owen said that we needed a large fiscal stimulus people said what a great economist he is (he needs to explain how a large fiscal stimulus is compatible with a moderate fiscal deficit).

Motley has said that wages in the public sector are not to be touched.

Can someone please tell me how we are to solve the fiscal problem and meet all the above demands?

In my opinion the government has carried the economy for two years of recession and we have all  benefited.  Whatever you think of Hartley he is right on the employment statement.  unemployment at 10.6 % is a great achievement in the current context. However, I don’t think the government can continue this for much longer, it either needs to make some further spending cuts and/or raise taxes.

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153 responses to “Look Where The 1.5 Billion Gone”

  1. David Avatar
    David

    @Trained Economist

    Of course the elephant in the room is sir roy and dennis clarke.  I submit that until we rein in the unions there will be no progress.

    If ever there was a time to bring the Unions onboard it is now. What sensible union Boss would not recognize the doo doo the country is in at the moment? Then again BU never agreed with a system that would reward a Union boss with a Knighthood. If ever there is a conflict of interest there it is in SIR Roy.

    @Anonymous 2010/07/20 at 6:37 AM

    The good things about a VAT increase is that will reduce consumption which will reduce imports and so protect our foreign exchange reserves, but it only does so by contracting the economy.

    Can’t we challenge this statement? Is it not true that part of our problem is the unbridled demand of Barbadians for consumer durables and the like? This is reflected in the significant distributive sector which employs a healthy percentage of the portfolio. Would it be so bad to break this sector up?

    The sad reality is the lack of innovation in the design of the Barbados economy in the last 15-20 years is being amply reflected in wider society.

  2. Bush Tea Avatar
    Bush Tea

    @ Dr George
    Bushie, Im a septuagenarian – too old to change my style in any sense of the words.
    ***********************************************************************************************
    Unfortunately my friend, we live in an age where change is the name of the game. It is therefore a REAL pity that you have taken this position.

    I reread your piece on CSME -what’s in it for me; …. you make some sound points – but as I said before, the bushman needed two dictionaries and google to get through. Many of us would really benefit from your thoughts – but simple bush folks like myself need to have the language modified…..

    Bush Tea could not care how much the IMF has changed. The very step of handing national control over to outsiders would represent to Bushie the ultimate failure of the Barbados experience.

    The fact that we are seeing hard times is not necessarily a reflection of failure. The fact that we may need to undergo structural re-adjustments is not in itself a failure; Failure (and national embarrassment) comes when we allow ourselves to reach the position where we have to move into the IMF almshouse.

    If this happens through misfortune (a bad hurricane) that is one thing. But if we should mismanage ourselves into this position – or even worse, if we should have so little confidence in ourselves that we pack up our things and move into the almshouse at an early stage – this would say that all of our education, stability, investments have been for nothing.

    The IMF is for countries that are devoid of people of your ilk. Countries with no vision or any concept of self worth. How could a country with people like MME and GP and so many bright sparks even consider going to the IMF begging for guidance…?

    ….even if we went back to being a subsistence society, it would be better than lowering ourselves to the point of having to admit complete incompetence in running our own affairs….

  3. David Avatar
    David

    @Bush Tea

    BU hopes that Dr. George is not one our many economist trained at great expense by the taxpayers of Barbados who have become happy to modify his learnings to fit a political objective.

    During the Haiti crisis which the world seems to have forgotten about didn’t we listen to a World Bank/IMF official pointing out the folly of using the definitions which they put out wholesale*? The man was at pains to point out that developing countries need to come up with their own definitions and strategize around them. To Bush Tea’s point, we are masters of our fate.

  4. Avatar
    Anonymous

    Dear David,

    I agree with you that we need to shake up the distributive goods sector. It needs to be more competitive and costs need to be lower. But raising VAT is not going to do that. It is going to make it harder to make money and so only the people who will survive and the established monopolists who will survive by creaming punitive profits from the rest of us. Indeed, if your primary focus was to break them up it would probably mean that we would lower VAT and encourage more entrants into the market. I agree with you that we need to find ways to limit consumption (we need instruments for people to save with besides a Clico Pyramid Scheme, thanks BT, or buying and empty plot and keeping it there for your kids. Raising taxes makes sense when the economy is booming and can afford them, not when you are saddled with rising unemployment and a high cost of living.

  5. David Avatar
    David

    @Anonymous -2010/07/20 at 7:23 AM

    Is it not true that whenever Barbadians have had their discretionary income increased it only serves to fuel consumption expenditure?

  6. Avatar
    Anonymous

    Do we really want to be masters of our fate? That would mean taking risks, making sacrifices, doing without and acknowledging that success and failure are the result of or own decisions and actions. It is easier to blame whitey, long dead slave masters, faceless bureaucrats in a faraway city or even Owen Arthur.

  7. BAJAN TRUTH Avatar
    BAJAN TRUTH

    they would have been at fault for 30% unemployment.

    @ Bush Tea

    …after Sandi was laughed at, and ridiculed -when he took one of the most visionary steps in government in recent times to defy the IMF; The Arthur government oversaw 15 years of glitz and glamour and DEBT that essentially discarded the age-old wisdom of saving during the years of plenty for survival during the hard times….
    ===============================

    That is you isn’t it, that instead of spending Arthur should have been saving for hard times. My point still stands did it make sense to save for a rainy day, when you have changing economic conditios that will erode your current earning position or do you invest in new initiatives and prepare your country to take advantage of new opportunities? Yuh think?

    @ David changing the structure of the economy requires change by the private sector. Gov’t only provides an enabling environment by incentives and support for new areas and disincentives for redundant activity. After that it depends on the players. When we get Chefette to stop building more chefettes and move to Caricom; Williams brothers to shift from gov’t contracts to investing in new activities that generate foreign exchange, hurray for the solar energy programme, at last. When my firm and others like us get some support to reach more into Caricom – evah so welcome wait for a call was not helpful.
    ====================

  8. BAJAN TRUTH Avatar
    BAJAN TRUTH

    The figures put here do not account for 500m extra per year, to total 1.5b in 2 years. The additional cost of wages (if the January 2008 level of staffing was maintained during 2009/10) will not absorb that figure. At no time has BTA received ADDITIONAL 100m per annum to my knowledge, unless I missed a debate. That level of transfer to institutions is not coming from scratch if given more, it is a top up of what they received previously in 2007 and before. 2007 2.8b gov’t budget was increased to 3.2b in 2008 with no major projects done. No land was bought and developed for housing, all these lots were already purchased and prepared by the previous gov’t, the houses were paid for by the persons buying the houses.

    The challenge that the DEMs have is having hired what now appears to be a large number of people in the gov’t and statutory corporations now cannot let these jobs go ( afraid of 30% unemployment figure as outlined by their supporter on this blog) need to be protected for political purposes. As was pointed out cost of wages and salaries dropped by 13.8 m that must the BLP yardfowls they fired, to make room for the DLP yardfowls and more in 2009. Having opted to hire more people without additional programmes because they stopped a myriad of programmes under the previous gov’t – UDC, RDC, Cricket programme, project for the youngsters, have not topped up Fundaccess, EGFL etc. started camps, busfares, councils.

    What is it that gov’t found more important to do with 1.5b than protect and stimulate the sensitive sectors of the economy so that jobs would not be lost. Rather than create public jobs, that will not in short, medium or long term create more productive capacity; earn foreign exchange, generate more jobs or haul us out of the recession, becomes an annual burden to us from here on in support private sector. Had that 1.5b been used properly to give businesses the stimulus to encourage export, support marketing etc, they would sustain employment, flow back to gov’t as corporation tax (notice the drop this year, despite increase in gov’t jobs.); foreign exchange earnings and VAT. These wages will only be consumed and drain foreign exchange. The public sector jobs will bring some value – shops etc would get income, and gov’t VAT. Foreign exchange will be impacted without being helped, endangering all of us – foreign exchange earning, foreign exchange consuming businesses and every bajan on this rock.

    This was a criminal act, to support a political purpose – counteract dropping unemployment figures because they refused to truly stimulate the economy, to avoid political cost of higher unemployment figures. I really cannot see why, because, you cannot be so blind and ignorant that you could not see that this was wrong, or was it they did not want to appear to be following advice from the opposition, that they need a stimulus and a stabilisation programme. And they did not want to give Miss Mottley the satisfaction of ‘I told you so’. While you do not want massive layoffs in the public service, massive employment is criminal in this climate starving your productive sectors of needed support. STOP PLAYING POLITICS WITH OUR @#$%$%t% LIVES.

  9. BAJAN TRUTH Avatar
    BAJAN TRUTH

    @ DLP apologists includig HH/WIV if 700m over 14 years with infrastructure and investments to show, with some cost overuns was ‘corruption and squandermania and poor management of the economy’. What words do you even begin to use to describe 1.5b for hiring DLp yardfowls and business for DLP operatives in a severe recession at the expense of every Bajan, resulting in likely downgrade to junk status? I am searching a colloquial dictionary to get the right words to express this.

  10. Avatar
    Anonymous

    What is “discretionary income”? Income one can choose not to have? If what is meant is money in excess of living expenses and savings for children’s education, retirement and unintended events then what else is the average joe to do? Put it in CLICO? If we don’t spend how will the hoped for return on investments be achieved?

    Once we were put out of Eden it was all downhill from there!

  11. Donald Duck Esq, Avatar
    Donald Duck Esq,

    Jepter Ince’s contribution to the economic debate on Brass taxcks on sunday was an embarassement to this country and not just the Ministry of finance. He should by now know that there is a difference between a “physical deficit” and a “fiscal deficit”.

  12. Donald Duck Esq, Avatar
    Donald Duck Esq,

    Jepter Ince’s contribution to the economic debate on Brass tacks on sunday was an embarassement to this country and not just the Ministry of finance. He should by now know that there is a difference between a “physical deficit” and a “fiscal deficit”.

  13. Bush Tea Avatar
    Bush Tea

    @ David
    When we finally become serious and recognize the critical mess that we have created for ourselves, we will probably be more open to look at alternative structural models.

    Obviously, you are correct in your assessment that consumption is out of control. I agree with anonymous that playing around with VAT will not give us the results that we expect. The major challenge that we have is in fact the FLAWED economic system that we have adopted.
    David, the thing is built on the concept of greed fueling prosperity. …..a fatally flawed concept.

    If we could take a non-biased look at another model that exists in our region which has DEMONSTRATED its ability to withstand political, social, economic and even military hardships and to survive – then we may be able to conceptualize a potential Bajan mode.

    Of course I mean Cuba.

    Why should there not be a maximum cap on all wages/salaries at say $4,000 per month? Any personal income in excess of this basic maximum should be strictly based on personal productivity measures.
    Why should there not be a Luxury tax of up to1000% on items like private vehicles, luxury foods, and other non-productive items?
    Why should some of the output of our state funded education system be so much higher paid than others like sanitation workers or security personnel? are they making that much more of a contribution? did we not pay for the schooling of them all?

    Obviously there are some aspects of the Cuban experience that are definitely NOT Bajan in nature, but certain concepts are actually quite innovative and sensible.

    The problem is THE SYSTEM.

  14. Bush Tea Avatar
    Bush Tea

    @ Bajan Truth

    ……You have a good pair of intials BT, but not much else…. LOL

    Man cuhdear, NOBODY ever said anything about not investing in productive sectors. The discussion is about spending money that you DON’T have…..

    BTW … indicate which of the below were productive…
    Greenland
    GEMS
    Dodds
    ABC
    Hardwood
    Coast Guard Station
    Kensington
    Warrens
    CSME
    CCJ
    …etc
    The only thing worse than borrowing, is borrowing to waste on drunkenness…..

  15. Avatar
    Anonymous

    when we switch to the Cuban model will Bush Tea be blogging from the US or Canada?

  16. Avatar
    Anonymous

    Dear David,

    OK, OK, as there are a few people on the blog as anonymous, I shall search for a name…..any suggestions?

    I shall respond to your point on discretionary income. Basically we do two things out of income, save or spend. Spending is either consumption or investing. On average around the world, consumption is around 70-80% savings are around 5-20% and investment is around 10-20%.

    If income goes up, there will be some additional consumption. If would be hard for the marginal propensity to consume to go from 70% of additional income to zero, though it does tend to fall the richer you are.

    The question is are we saving enough and investing enough for the future. If we are not then we need to examine why. It would seem to me that the problem cannot be that goods are so cheap that we need to make them more expensive with higher VAT. It must be because saving has low returns or little choice.

    If I were a free market zealot I would connect it also with the hand-out society. If you feel government owes you a living why save?

    I think there is scope for creating more attractive savings schemes that encourage responsibility. In Australia and Singapore there are mandatory savings schemes in which people can borrow against for a few things including mortgages.

    If you are concerned about unbridled expenditure you may also like to hear that Singapore also limits the number of vehicles that can enter the island and auctions off these vehicle entitlement vouchers. If a big chunk of that money was used efficiently to improve public transport infrastructure (bus terminals with where buses are electronically tagged so you know where the next one is and when it is due etc) that would seem to deal with both our congestion and transport. These are the kinds of issues we should be discussing, but who in Government would you be able to have this kind of conversation with? Senator Ince?

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

    @ Dr. George Reid

    “The most useless are those who never change through the years” – Sir James M Barrie.

    @ the BU family

    The principal causes of this political economic depression in Barbados are definitely:

    1) the elite/state political exploitation of the masses, to greater extent, and the middle classes, to a lesser extent, by ideological material financial means ( inclusive of WORK) for profit for a few;

    2) gross and reckless mismanagement of the material productive distributive and financial affairs of the country by DLP/BLP Governments over the years;

    3) big, unwieldy and costly government;

    4) humungous government and private debt and the labours dredges involved in its financing;

    5) taxation;

    6) interests rates;

    7) repayable institutional loans for productive purposes;

    8) exchange rates parities;

    9) importation of the “prices” of overseas goods and sevices

    10) exportation of goods and services for purposes being paid in foreign “prices”/currency;

    11) motor vehicle insurance;

    12) the present hire purchase system;

    13) extremely high land rights costs and building costs in innumerable instances;

    14) the high cost of living and the high cost of doing business, etc..

    In some relevant instances described above , absolutely remove those and replace them with better systems, in some relevant instances described above properly reform those particular systems, and in other unmentioned circumstances come up with new effective systems to help thrust this society forward, and with regard to all of these eventual systems – manage and coordinate them properly with the right managers, and there will NEVER be LOCALIZED political economic recessions in Barbados.

    In so many instances on here and elsewhere, we in the PDC have illustrated how to go about doing so.

    But, like John Maynard Keynes who for years in the 1920s and 30s to the governments of Western capitalist/free market economies, the worth of expansionary fiscal policy to help increase aggregate demand, to help reduce unemployment, and to come out of their unemployment problems and the 1929 – 32 international depression, but who too at the same time was largely ignored by them and many academics of his time until the late 30s and the lead up to WW 11, we will continue to preach to the broad masses and middle classes of the people of Barbados and elsewhere ( NOT GOVERNMENTS) that these are things ( minus 2) that are needed to be done to help countries like Barbados achieve sustained upward rapid growth rates and to avoid localized depressions.

    PDC

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

    “Insertion”: line ,1 last paragraph, “insert” the word “preached” between term “30s” and the word “to”.

    Thank You.

    PDC

  19. BAFBFP Avatar
    BAFBFP

    Referring to Private Sector responsibilities in a land like Barbados is embarrassment to you no…? In the East we have real Private Sector that PRODUCE goodies for whole world no..! No Bushman pyramids no..! Import substitution and export dependent growth. Now international jokers want us to adjust currency…? We are doing good no..? So maybe the rest of world including you should adjust your currency no…?

  20. Conrad Avatar
    Conrad

    What I find staggering is that when you add up all the waste and over-runs from the projects Bush Tea cites what do you get? According to the DLP’s new figures the Prison, ABC, Justice, Coast Guard all cost an additional $600m and they recorded that in 2006-7. Yet the biggest rise in our history in Barbados gross public debt over a 2.5 year period occurred from 2008 to mid-2010. A staggering $1.5bn. And as has been said before on this blog, that could be justifiable if it were spent on unemployment benefit, well calibrated one-off employment schemes, one-off capital expenditure in infrastructure.

    The pace of the rise in debt has spooked the international financiers (they are easily spooked) and so they said they are putting us on standby of a downgrading to “junk” status. And what have we got in return for taking this risk with our international standing? What was the trade-off? Summer camps and free school buses in a country where kids were getting to school before? Jobs for the boys behind the closed doors of politically appointed boards? What have we got today in 2010 that made a downgrade to junk status worth it?

  21. Peltdownman Avatar
    Peltdownman

    Increase the VAT. It is the fairest tax, as the burden is shared across the economy, and it is easy to administer for both government and businesses.

    Find some way for UWI students to pay part of their tuition.

    Look to the informal sector to contribute more in taxes – at least pay import duties.

    Do nothing that will cause existing businesses to go under or shed employment, such as higher taxes or levies, other than VAT.

    Introduce a levy on those items that really damage the environment, such as polystyrene food and beverage containers, plastic cups and plastic bags. A small levy on these specific items could raise at least $20m per annum.

    Cap the recruitment level in the public service, and allow savings through attrition.

    Engage the unions. They live here too, and they know better than most what will happen to their members if matters are allowed to fester. Since the Social Partneship arrangement started, I have never known them to act in an unreasonable manner (except perhaps in dealing with individual companies).

    This is not the time to play politics. The future of the whole country is at stake. Bite the bullet.

  22. Enuff Avatar
    Enuff

    ‘Increase the VAT. It is the fairest tax, as the burden is shared across the economy, and it is easy to administer for both government and businesses.’

    There is nothing fair about VAT!!!!

  23. Trained Economist Avatar
    Trained Economist

    I am no great supporter of a VAT increase, but my sense is that it is the only meaure that will protect the investment grade credit rating.

    Also, there have already been expenditure cuts to the tune of 93 ml for the year to date. Can a lot more be achieved without layoffs in the public sector and the knock on effects on the economy.

    There is no evidence of major hiring in the public service by the new govt.

    They have borrowed to shore up the reserves (around 500ml), there have been some capital projects and to cover the counter fiscal stance during the recession.

    The real issue is spending cuts versus tax increases, and there are good arguments on both sides

  24. BAJAN TRUTH Avatar
    BAJAN TRUTH

    @ Anonymous

    Try ANONYMOUS in French or Spanish. perhaps Bajan – Ahnonimus. We definitely need to distinguish you from the others, your contributions so far have been sound, informative and factual, which I appreciate very much.

    @ Bush Tea

    BTW … indicate which of the below were productive…Here goes

    Greenland – environmental in nature to collect garbage as Mangrove cannot continue, only health and environmental benefits, now and in future. Halted. West coast and east coast sewerage and boardwalk project – protect tourism and protect health and maintain purity of our seawater. Great economic benefits.

    GEMS – save investments of bajan hoteliers who are a dying breed and cannot afford or earn like West Coast. Concept was good, the execution did not create the returns intended. Maintained jobs though and prevented them from going to condos. Intended economic benefit, less than intended.

    Dodds – social good, last prison burned I assumed you need a new one and make it last us 40 years. Keep prisoners safely off the street, protects tourism and attractiveness of offshore activity. Indirect economic benefit to protect main earners – local safety for citizens and businesses, tourism and offshore.

    ABC – part of infrastructural development, along with Bridgetown, Oistins and Speightstown renewal, if your plant looks tired, traffic is congested it affects the impact on high end visitors, it makes the country look properous and a good place to invest. Along with good financial mgt. well-regulated offshore, good incentives for offshore it helps make us for attractive to offshore and investment. Excellent economic benefits. Offshore jumped from 100m in gov’t revenue to 600m by 2007. would be good to get it to 1b., hence further investment.

    Hardwood – if current house spots gov’t has were available to people to erect these houses, low income affordable housing for the low wage earners – supermarket, gas station, vendors etc. Shut down for political gain, no lock up yet, no corruption evidence shown yet. Current cost of houses being built by gov’t does not serve this group, income level of buyers have to be in excess of 3000 per month. go figure loving caring gov’t.

    Coast Guard Station – this project is part of upgrade needed to replace unacceptable conditions they worked under. Also included more modern equipment and training. Makes it more attractive to work there as we have difficulty attracting people in law enforcement. Coast guard protects the economy by limiting the import of drugs and guns which fuel the underbelly of crime operating in the country destabilising the formal economy; destroying our children ( future labour force). if not stopped drug barons grow stronger and compromise your police, judiciary and political parties ( tivoli)

    Kensington – attract major int’l sporting activities which generate tourists and foreign exchange earnings . If it was not there we would not have been able to have world cup this year, despite the additional 30,000 visitors our tourism earnings dropped. You would not want to see what earnings would have been without world cup. Can almst lable it saviour. Good economic benefit for now and in future.

    Warrens – I assume the building – major disaster, failure of good engineering services. I would like to know who is the gov’t engineer that worked on this, we need to deal with people who do not perform and cost gov’t money. Disgraceful.

    CSME – provide firms with 14m people to sell goods and services. Greater earnings builds larger businesses and increase foreign exchange and jobs especially more specialised jobs for our graduates. If allowed to work will reduce unit cost of production for us. B’dos currently sell 55% of our exports there.Third largest tourist market. Excellent move. Hundreds of millions of dollars earned here. Needs this gov’t to do an about face and support it to continue expansion of our economy. Stuart needs to give it the kind of leadership we had with Arthur, and take it to the next level. Waiting with bated breath.

    CCJ- supports CSMe. You have a trade treaty, somebody is going to break the trade rules, block goods, unfairly subsidise local businesses, unfair non-nationals. You need a court to adjudicate on these matters to give confidence to businesses to set up in other places. All members signed on to the court for arbitration of the treaty, only two signed on to the court as a criminal court. The most important function is covered.

    I assume you are happy with the economic benefits from the investments in the airport, seaport, Hilton, agriculture, concorde, Harrison’s cave, fashion, culture, offshore, services industries, forensic services, plans for arbitration, health tourism, and sales of health services, energy (lost by this negligent gov’t).

    The only thing worse than borrowing, is borrowing to waste on drunkenness…..The only thing worse than being blind, is he who will not see.

    Glad to chat and reason with you my friend.

  25. Peltdownman Avatar
    Peltdownman

    So, Bajan Truth, so long as a project is a “good” one, it doesn’t matter how much is spent on it?

  26. Bush Tea Avatar
    Bush Tea

    @ Anonymous
    How about ‘John the B’ … you may be the voice crying in the wilderness…..

    Re: “when we switch to the Cuban model will Bush Tea be blogging from the US or Canada?”
    *******************
    …so are you saying that we are not intelligent enough in Barbados to be able to separate the good from the bad in an existing system and to choose that which is useful and appropriate – and to discard that which is not…?

    You may be right! we seem to think that we have to copy EVERYTHING about capitalism too…. and we want to copy the EU common market and copy the dietary habits of the first world…..

    Intelligence is the ability to sift and select or discard from all the available options. The consequences of lack of intelligence is —– POVERTY.

    @ Bajan Truth

    Thanks for clearing that all up – about the productivity of your projects.
    I guess that explains why we are is such a stable position as we speak….

  27. David Avatar
    David

    @Anonymous

    How about Phoenix.

  28. David Avatar
    David

    @Anonymous

    How about Phoenix.

    @Bajan Truth

    Do you understand that BU is not the Senate? We have no time at this time* for the political clap trap.

  29. Avatar
    Anonymous

    This is relevant to the topic being discuss
    As a local Barbadian who has being attending the Barbados Hilton since the 1970’s for the numerous entertainment shows and I also presently go to the popular Tuesday & Saturday nights shows featuring Wayne Jackman & his Show Time Band,I was shocked when it was announced that the same Wayne Jackman’s Show on Tuesday & Saturday nights are being cancelled by the new general manager of the Barbados Hilton because too many Black Barbadian go to that show.
    After making some inquiries with some of the patrons who are accustomed attending that show,I was informed that indeed it appears that was reason for the sudden cancellation of the show.
    The Wayne Jackman & Showtime Band show at Barbados Hilton on Tuesday & Saturday nights were fully patronised by Barbadians including many local politicians.Politicians such as Ministers ,Steve Blackett,Dr David Estwick,Patrick Todd,Donville Inniss,Adriel Brathwaite & even formers ministers such as Noel Lynch among others attended those shows.
    I was made aware that the show was a lucrative venture for the hotel because the bar where the show is usually held makes some money for the hotel on those nights.
    I cannot believe that in Barbados in year 2010 Barbados could still be attracting white expatriate hotel mangers with racist tendencies who will seek to deny Barbadians the opportunity to enjoy the luxuries hotels in Barbados have to offer.What is so distressing about this whole situation is that the Barbados Hilton is part owned by the government of Barbados and by extension the people of Barbados.A newly arrived white general manager of the Barbados Hilton that has government money in it is denying Barbadians the opportunity to enjoy the hotel.That is reprehensible.
    As a Barbadian who usually take my family to the Sunday Lunch Brunch and occasionally have dinner at that hotel,I will not be attending that hotel anymore,if what I have heard is true.
    I am calling for the Board of the Barbados Hilton, Barbados Hotel & Tourism Authority,Barbados Tourism Board,Ministry of Tourism,The Minister of Tourism Richard Sealy & The Barbados Government to investigate the cancellation of the Wayne Jackman & Showtime Band Show at the Barbados Hilton because the new general manager of the hotel does not want Black Barbadians at the hotel.
    It seems the Barbados Hilton is making a name for itself in Barbados,allegedly last year another expatriate white manager kicked a Barbadian worker and now the hotel has a new expatriate white general manager who does not want Black Barbadians at the hotel.
    It appears the Barbados Hilton is the place where Barbadians rather not be.

  30. Trained Economist Avatar
    Trained Economist

    How about a VAT increase to 17.5%, and a reduction in the corporate tax rate of about 5% to ease the corporate sector?

  31. George Reid Avatar
    George Reid

    @ Bush Tea:

    “Bush Tea could not care how much the IMF has changed. The very step of handing national control over to outsiders would represent to Bushie the ultimate failure of the Barbados experience.”

    Bushie, although you explain yourself in your subsequent comments your view of the IMF as bogeyman is two undifferentiated. While in one sense the IMF is a homogeneous institution, it is populated by individuals, each with a unique perspective, background, and history. Negotiation for the IMF largess becomes an art where only the highly skilled survive, and the IMF clearly has an interest in successful outcomes, however that is defined.

    As to David’s comment, more and more I am beginning to dislike that Jacoboski. His obiter dicta about who paid for my education and what are my political loyalties are beginning to piss me off. My studies were funded not by Barbados, but by citizens

  32. George Reid Avatar
    George Reid

    of the countries from which we have always sought assistance.

  33. BAJAN TRUTH Avatar
    BAJAN TRUTH

    @ Bush Tea

    I thought the instability was caused by the economic recession, and consequent handling of the crisi. I believe the crebral Anonymous had clarified the fisca deficit over last five years, and demonstrated that the 1.5b is a major culprit for our inability to manouevre these waters.

    @ David, explain claptrap. Anything misinterpreted, untrue, misrepresented.

  34. BAJAN TRUTH Avatar
    BAJAN TRUTH

    Corrections:I thought the instability was caused by the economic recession, and consequent handling of the crisis. I believe the cerebral Anonymous had clarified the fiscal deficit over last five years, and demonstrated that the 1.5b limited our inability to manouevre these waters and increase the debt position unnecessarily.

  35. BAFBFP Avatar
    BAFBFP

    Greenland – With far better waste disposal options available..
    West coast and east coast boardwalk project – Establish high water mark for property owners …no.?
    GEMS – Tax payer bailout to party faithful and family …no..?
    Dodds – Show that kick back symdrome alive and well… no…?
    Warrens – Barak can’ contact with me, I put him in touch with big Chinee Syndicate… they very big on results…no..?
    CSME – prove that big companies like Neal and Massey and Insurace companies contribute to political parties that academics run… no? (What big Caribbean company do not know is that the more small company that they buy in order to expand, the easier it make it for me and my family to take charge… We very very big fish, waiting…)
    CCJ – Just ‘nother excuse to employ academic

    America conquer with weapons of massive distroyance… My family, we make friendly with everyone (except Taiwan rogue state)

  36. JC Avatar
    JC

    HAHAHAHAHAHAH I beginning to like BAFBFP

    SCARY!!!!

  37. Bush Tea Avatar
    Bush Tea

    @ Bajan Truth

    Man why you don’t drop this issue an let the BU family maybe think that you have something to contribute nuh? Are you going to keep on digging yourself deeper and deeper into doo doo and exposing your limitations?

    The fact that you ” thought the instability was caused by the economic recession, and consequent handling of the crisis.” only goes to demonstrate your short sightedness and myopia (what did you say about those who would not see…?)

    Economic recessions, like hurricanes are facts of nature. Instability is caused when idiots living in hurricane prone areas fail to make adequate provision for the inevitable. Wise and visionary people make PLANS during the calm times to be able to survive the hurricanes.
    …..do you think that you got that…?

    If you and your myopic lot spent the calm season partying and living like there will never be a storm, how much can any reasonable person expect of the new equally lost lot, who took over just as the storm warnings were announced?

    Admittedly they have shown themselves to be equally inept at taking decisive steps to meet the challenge, but to their credit, it has to be a daunting task at this late stage.

    Rather than repudiate the failed economics of the RHOSA team and prosecute a few to establish clear standards of behavior, they were intimidated into “protecting jobs” and maintaining unsustainable welfare cushions – thus the $1.5B; … all the while hoping (like Owen did in 2002,) for an upturn in global fortunes.

    Now that we have cleared that up, would you join the bushman in calling for a collective belt tightening by all Bajans and strong decisive actions by everyone to pull together and change direction in the national interest…?
    ….or are you only about cheap political points..?

  38. Avatar
    Anonymous

    Persaud and Mascoll have focused a lot on expenditure cuts surrounding transfers and subsidies. Again, let me thank the new governor for giving a break down of these numbers in his reviews. I had no idea what they were. The governor could help us a bit more by providing a full list of the other some day. Friends of mine tell me the list could be shocking when we see the range of entities that receive a government subsidy.

    The central bank’s economic review for Jan 2010 lists the significant transfers and subsidies. I list them by year and party in power.

    2006/2007 (BLP)
    qeh (130.1ml), uwi (96.8 ml), transport board (40.2ml), other (553.5 ml)

    2007/2008 (BLP)

    qeh (138.5ml), uwi (105.1 ml), transport board (34.8ml), other (699.3 ml)

    2008/2009 (DLP)
    qeh (159.5ml), uwi (128.6 ml), transport board (40.ml), other (808.9 ml)

    2009/2010
    qeh (166ml), uwi (126.2 ml), transport board (40.9ml), other (719.6 ml)

    Now when I look at the numbers, UWI jumps out at me. Its a large number and its shown the greatest growth. Uwi claims to have doubled its student body between 2005 and 2009. It would be useful to see the transfer sum prior to 2005. To a non-economist it seems strange that we are spending nearly as much on uwi as we are at qeh. I support easy access to tertiary education. I believe that the access to education at all levels is a major reason barbados has done so well. I also I believe that no able student should be denied access to a degree because of money. I believe we have to be sensible about this and have a sense of what we can afford. University education is an expensive product. if uwi is sucking up this much of the education budget, what about the others elements in the education system, where some of the national benefits are clearly greater. Correct me if I am wrong, while the country benefits from a highly educated I have always understood that the majority of the benefits to higher education accrue to the individual.

    Mascoll and Persaud have focused a lot on the Transport Board. To a lay person like me, there are clear and real benefits from the operations of the Transport Board. Wherever you live in Barbados you can get around for work, school, study, leisure, get to the hospital with some ease at low cost. I hear on the news that persons in the us cannot get to available jobs because of transport costs. So to me there are some real benefits there, that accrue to some of the most needy among us.

    Persaud’s view on privatization, to me misses some of the nuances of Barbados. The private operators thrive because they have cherry picked the profitable routes and they overload with impunity. I am wary that if there is privatization we will not have the enforcement will, to ensure that certain routes are still covered properly as part of the concession and that laws are followed. With all its flaws I shudder at the prospect of a total ZR type industry.

    Let me admit upfront that I find Mascoll insufferably arrogant and a great believer in the specialness of economists. But that aside I am suspicious of his motives in the focus on the Transport Board. I cannot help suspecting that mascoll wants to focus on the Transport Board so he can attack the free bus fares for school children and the change in energy policy by the government. The six million dollar increase in transfers to the Transport Board since the change of government and the recession can hardly be the source of our fiscal woes. The subsidy to the Transport Board also reflects the fact that fares have remained the same since 1991, I think. Wow!

    It seems to me that we have two very large entitlement programs (health care and education). Is a part of our fiscal woes the dramatic ramp up of the most expensive of entitlement programs, a university education?

    I would like to see a serious efficiency focus at the Transport Board. A thorough review of routes would be useful with a view to rationalizing routes and maybe amalgamating certain routes.

  39. Enuff Avatar
    Enuff

    Based on those numbers it appears that the Boards mentioned had little to do with the $1.5 billion increase, unless my maths bad.

  40. Avatar
    Anonymous

    But what about the “other” category? It increased by $163.1 million between 2006 and 2010!

  41. Brutus Avatar
    Brutus

    @Anonymous,

    I am having a problem with the Central Bank reports because for the later years you have to add up the quarterly or monthly figures before you can compare year to year. Any suggestions?

    Also, can you tell us how much, if any, of the $1.5B debt increase can be attributed to a fall in govt revenue?

    Transport Board – why not increase bus fares to reduce the subsidy? I guess the only question is the timing of the increase. The counter-argument will be that poor people will have to bear the increase, so let the subsidy remain.

    UWI – you have phrased it well: “no able student should be denied access to a degree because of money”. Persaud has said that we would gain more by focusing on primary education instead and I agree with this. I also believe that we should spend more money on the SJPP and Community College and try to expand the technical and vocational programmes and the numbers who can access them, instead of spending so much money on academic tertiary education.

    Health care – user fees for those who can afford them?

  42. Avatar
    Anonymous

    we have no details on the other category. some suspect one come to mind. BTA may be in there, BTII, Invest barbados, HRL who the hell knows.

  43. Avatar
    Anonymous

    I am against this nonsense about “user fees for those who can afford them” when it comes to the QEH. This is an anti-Barbadian proposal. Either everyone pay or nobody pay. Charge the “poor” and let them apply for assistance at relevant agencies. Imagine the middle class pay a disproportionate share of the tax burden and then will be asked to pay again.

  44. Bring back Owen Avatar
    Bring back Owen

    We need Owen now more than ever. He is the one that has the guts to make the decisions to get us out of this. This is not an oratorical context and Mr. Stuart needs to wake up soon or let someone like Chris Sinckler take the lead. I will never vote for this DLP again. imagine Jepter Ince cant even enunciate the word ‘fiscal’ correctly. calling it ‘physical’ or ‘fisical’. what a bunch of jokers!

  45. Brutus Avatar
    Brutus

    Is there now more than one anonymous? Its getting confusing.

  46. Avatar
    Anonymous

    I could not disagree with you more. Owen had the political capital, the opposition was weak and the economy was doing well and yet he made no tough choices. I seem to recall that minister announced an increase in bus fares and then it was reversed.

    Arthur was a very effective PM and the country did well under his leadership, but he in my view reinforced the sense of entitlement and no pain.

  47. bajeabroad Avatar
    bajeabroad

    @ Bring Back Owen

    I agree with you. I am absolutely very concerned with Jepter Ince at the helm given his piss poor performance on BT. Loss ALL confidence in this man to conduct the affairs of this country….we need to do a reference check on his previous employment cause he ain’t have a clue.

    I can understand one slip up in referring to fiscal deficit as physical deficit but 7 slips!!. And can’t answer the question about what will HE do DESPITE who caused the problems in the economy. Only meet with gov’t personnel to discuss!!!……man he is a pure school boy in a man’s occupation…..no confidence in this character!!

  48. Bring back Owen Avatar
    Bring back Owen

    Under Mottley, DLP will get 2-3 terms in office. Under Owen, DLP will get 1 term in office. The objective of any political party should be to be the government. BLP get back Owen and let the young people believe in themselves again.

  49. Bring back Owen Avatar
    Bring back Owen

    bajeabroad: thank you. Students at primary school call the word correctly. I really am afraid of this guy in a ministry so crucial to Barbaods. What does he say when he goes overseas and tries to represent Barbados(a leading country in Education)? Why cant we hear a single word from any DLP minister? This thing has me very worried and upset.

  50. Bring back Owen Avatar
    Bring back Owen

    DLP = Discussing it , L- Looking at it, P= Proposing it
    but never doing it.

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