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Sen. Darcy Boyce, Minister of State in the Ministry of Finance, Investment, Telecommunications and Energy

Senator Darcy Boyce will break his silence tonight at 7.30PM (VOB Radio). The hosting of a Press Conference at this time when most people expected that the Budget was imminent has come as a surprise to BU. Does it mean that the budget will be further delayed? Perhaps this is an attempt to do some damage control given the recent gaffe by Senator Jepter ‘physical deficit’ Ince. The rise of Boyce over Estwick is also an interesting side issue. We will find out shortly.

To kick off the discussion a recent comment by Conrad should do the trick:

I don’t know how to express this idea properly. It will come across as knocking the government, but if anyone in the government party were to really reflect on it, they will see I am trying to find them a way out before it is too late.

The DLP is a party with a proud tradition for bold policy and honest communication. But it has got itself unnecessarily caught up into a position where it no longer views Government as finding solutions to problems as it did in the 1960s and 1980s, but merely as political point scoring. Political point scoring is the job of opposition and they found one of the best in Hartley Henry at doing it. He is the consummate professional at political point scoring. But he has nothing to offer real, hard, economic problems. Faced with tough economic problems the Government’s response is not to find policy solutions, but to score political points.

Stuart’s contributions is not to float some new ideas or finding ways to communicate the problem to the people, but to say to people “Guard your minds” or “lets not be distracted by people worrying about the present lest we forget about the mismanagement of the past”. These are nice political strokes, but they actually make it harder for the government to actually address real problems, because the political position is that there aren’t problems they can do anything about.

The DLP’s Faustian Bargain with Hartley Henry is that they get into office, but they have no economic solutions to tough economic problems, because Hartley is not about economic policy, indeed, part of his anti-Owen message was an anti-intellectualism and that Owen viewed the society as an economy not a society.

There is no reason why it should be this way. Henrism was merely a device to win power, but the hubris of victory seduced DLP strategists into thinking that Henrism was more than just a political campaign but was actually a coherent set of ideas. It is not. It is an empty vessel when it comes to economic policy making. Economics isn’t everything, it is nothing without societal objectives, but to do away with economic ideas at a time like this and rely upon buffoons like Ince is dangerous.  It is like having a heart operation but saying that because doctors make lots of mistakes we will do it ourselves using our home-bred, god-fearing, commonsense….

The DLP old guard must deject Henry’s anti-intellectualism and become once more the party of ideas. We have a Government caught in the headlights, frozen, and unable to do anything, hiding behind the fig leaf of it is a big global problem and the last lot did a bad job. Two and a half years into our biggest economic challenges and the Government has no fresh, bold, economic ideas and all it can do is maintain that they do not need them. How can self-respecting DLP intellectuals support that? There is nothing intrinsically DLP about that position, it is Henrism, it is not Barrowism. The real choice the DLP have is not between a set of individual personalities, but between someone who stands for Government as Leading with bold economic ideas as Barrow did, or as Government as merely the exercise of power and patronage, with Paris at CBC and Ince at the Ministry etc. Sadly, Stuart seems to have planted himself in the second camp. Maclean and Sealy too. Who is in the first? Estwick? Sinckler? Where are they? What are they saying? Now is the time for them to make some speeches to set out a vision, because we cannot afford another year in the valley of the blind.


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140 responses to “Senator Boyce Breaks His Silence”


  1. Looks like the media has brought out its best team to bowl at Senator Boyce.

    Reudon Eversley – CBC (Moderator)
    David Ellis – Stacom
    Shawn Cumberbatch – Barbados Online
    Geralyne Edwards – Nation Newspaper
    Jewel Brathwaite – Advocate Newspaper

    Oh dear!


  2. Conrad is a prophet. Nothing more needs to be done. Comfortable.


  3. Anybody could tell me what the Hon Sen Boyce is saying?


  4. Oh shoot camps is a stimulus, busfares is a stimulus, councils are a stimulus, 23m is a stimulus.


  5. I think Boyce is making a lot of sense.

    He was just getting a good grilling on the Clico issue but Eversley stepped in to save him by changing the subject!


  6. @Enuff

    No Budget in the near term.

    Clico policyholder will see a resolution very soon. He hinted that investors will probably retrieve principal values only.

    The alternative to the rapid deficit reduction is to cut subsidies to the QEH, Transport Board and others. He is comfortable with the plan outlined in the medium term strategy to reduce the deficit through building efficiencies/cutting wastage.


  7. The question of the night came from Reudon Eversley when he suggested that the heavy borrowing by the previous government from 1994-2008 to the amount of 2.5 billion has saddled the current government with a big problem. Do you agree Senator? lol


  8. He said that they made an effort to protect the more vulnerable in society, and that this in a way was a form of stimulus – free bus fares for children, free summer camps, increasing the reverse tax credit.


  9. Question to Senator Boyce, if as you say the Minister of State is not the lead on finance you merely assit, why has the acting minister of finance Fruendel Stuart not hosted the press conference? Highly unusual, is the government buying time until PM Thompson’s return?


  10. Bush Tea must confess to being impressed with Senator Boyce’s performance.

    It really is difficult to see how government could have done much better, given the deep global recession and the hand that they have been dealt.

    It really is impressive to have someone like senator Boyce who could work for Barbados under both the BLP and DLP governments and retain his dignity and professionalism.


  11. @ David

    It sounded like mere gibberish to me so I sought a second opinion. Reudon is laughable, he is filling in the Minister on projects.


  12. @BT

    Did tou hear when he showed some spunk by telling Ellis he should know who is the Minister of Finance?

    Agree that Senator Boyce has handled himself well but did we expect anything different? Doc GP would tell you he is a HC boy and a Bajan Scholar to boot!

    lol


  13. @ David
    The question of the night came from Reudon Eversley
    *************************************************************
    Did you note the statesmanlike answer that the senator gave? Bush tea was impressed.


  14. ‘increasing the reverse tax credit’

    People still have NOT received their reverse tax credits for 2008!!!!


  15. He said the $200M Deutsche Bank bond issue this week was concluded in one hour and that subscriptions totalled $800M, and that in his view this shows confidence in the management of the economy.

    He also said that unemployment and foreign reserves are at a reasonable level and that the decline in the economy appears to be reversing.


  16. Geralyn Edward asked the question who is the Minister of Finance. Can anyone clear this up for me?


  17. My overall impression is that the fundamentals and makeup of the Barbados economy for the next 20 years has been set by Owen Arthur. There has been some problems caused by the worldwide economic recession and some “housekeeping” issues (revenue collection, wastage in the public sector etc). The DLP administration is treading cautiously and wisely by attending to the housekeeping issues and not embarking on any grand scheme which may only devastate the country.


  18. Stimulus by dribble is a waste of the dribble. No strategy to halt the slide a further 1% decrease, its not stable Darcy. still sliding. Investment should be made for the transformation of economy and build productive capacity to preserve jobs and position for future growth. You know using the 1,500,000,000 to stimulate the economy rather than burden it with higher recurring debt in the form of increased salaries employing yardfowls.

    I thought Reudon’s question about the 4b borrowed in 14 years between 1994 – 2007 interesting as it gave me another view of DLP concept of managment and prudence. When 4b borrowed in 14 years ( 290m per year) put against 1.5b in first two years and another 1.5b planned in medium term strategy for the next 3 -4 years, that is 3b in 6 years (500m per year). Great management. I feel better now.

    Sacrifice of a nation for political advancement.

  19. Georgie Porgie Avatar
    Georgie Porgie

    David

    I off course did not hear Darcy’s speach

    I am happy that you consider that he handled himself well. We ought not to have expected anything different. Darcy was a stellar student and is reported to have been a good economist in the private sector.

    When the PM named him to his cabinet when the pundits were saying that the DLP had no economists, I thought that he had made a good stroke.

    Whereas I would tell you he is a HC boy, I wont, because you would ask me, and rightly so, if the other Boyce is not a HC boy too……….. and I wont be able answer except to say that they were always like chalk and cheese. LOL.

    Hants also started Kolij in 63 with that lot that included Blenman (aka Black Pawn).
    lol


  20. I am impressed with Darcy Boyce for the first time at a press conference. The last time he sat with David Thompson and he was very quiet. This time he stood all along and showed them he is no push over. The man maybe just doesn’t like talking like Clyde Mascoll who believes he is the greatest thing since slice bread. He came over very rational and a hint of anger that shut up David Ellis and Novaline Brewster.
    The lady from the Nation kept talking about a stimulus like she think we are the US who can print money as they like.
    My disappointment is not one ask about agriculture.


  21. Mistake
    The lady was not Novaline Brewster


  22. @ anonymous
    Remarkable. The house is burning, so it is caution to save the water and do nothing as it might make it worse. I am appalled.


  23. After Sen Ince, the ability to differentiate between fiscal and physical is all that was needed to be applauded and described as ‘handle himself well’. Sen Boyce’s press conference, in my honest opinion, was nothing more than a new Maytag. Still too many unanswered questions and ‘I am not sure’. But I love how he refused to make it a blame game and mud slinging exercise.


  24. @Bajan Truth,

    Boyce said that they were prepared to make investments two years ago to stimulate the economy but not many suitable projects were ready at the time. They are now constructing two buildings at Warrens and some private sector projects are about to come on stream.

    “Stimulus by dribble is a waste of the dribble” – the purpose of the dribble was to help the most vulnerable. Do you consider that a waste? The stimulus was a side effect.

    “No strategy to halt the slide” – wrong again. There is a Medium Term Fiscal Plan and a Medium Term Development Plan.

    There is a plan in place to reduce the deficit and the debt.


  25. I don’t think that the “house is burning” and neither do those investors who snapped up the $200 million bond issue in under an hour. There are some leaks and it makes sense to fix the roof than to tear the house down and hope to rebuild particularly when funds are low. It would take a man with a crystal ball to try anything radical at this time. As another poster wrote, the time for radical restructuring and grand schemes was when money was flowing and that time has gone.


  26. The point which the Senator made which made sense is if a significant stimulus was given 2 years ago it would have to be continued and there is the foreign exchange implications. The government seems intent on guarding the foreign reserves cover which currently stands at 19 weeks.


  27. @GP
    I off course did not hear Darcy’s speach

    I am happy that you consider that he handled himself well. We ought not to have expected anything different. Darcy was a stellar student and is reported to have been a good economist in the private sector.
    =========================================

    Gp you would have been impressed to by his answers. A look at what he said will reveal the unsound and incoherent arguments put over in a well educated voice to impress the naive. A couple examples. Oh part of the sitmulus was to increase the reverse tax credit, NOBODY AIN’T GET IT YET.

    Question on progress about borrowings which are part of medium term plan from CDB, IADB and World bank. Sums requested in some cases smaller than those outlined in the plan. CDb now negotiating; IADB now neogtiating; Not getting World bank, not prepared to do IMF conditionaities. What conditionality he was asked. Not answered yet.

    When Ellis asked about the fact that the deficit at the beginning of this year was 185m for first quarter, versus I think 128m for all of last year. Yet you are saying that gov’t is supposed to be cutting the deficit. How are you going to do this? Darcy says; ‘Oh we cannot rush to shut this, it will destablise the economy’. But that additional Darcy was spent on an additional 600m in statutory corporations, which excludes QEH, UWI, Transort board according to central bank figures. A sum that has to be found every year if it is not cut, it is not ONE OFF EXPENDITURE.

    He states it would be difficut if they had given a bigger stimulus in 2008, you would still need one in 2009, 2010. According to him therefore it was better not to provide a sizeable stimulus to the productive sectors but better to increase staff and programmes at statutory corporations to the tune of additional 500m per year. I would love him to speak at the international economic forum and tell other ministers of finance that he has found that the best stimuus is camps, and busfares. He should highly recommend it to them.

    Gp he said – Too much stimulus will hurt the foreign reserves. Apparently spending it out in salaries when spent in the economy will not put pressure on the foreign reserves, apparently the new staff have been commanded to only buy local.

    The interesting contradiction though were after stating we should not spend to much in stimulus it will hurt foreign reserves he contradicted by saying that there were no ready projects to invest in, as part of a stimulus programme, hence camps and busfares.


  28. Medium Term Fiscal Plan is nothing more than a plan hatched BWB. Bjerkhamn, Williams & Bannister. Buildings at Warrens are Williams and Bjerkhamn. Warrens Road project is Williams. Coverley & other is Bjerkhamn. Marina in St. Peter is Bjerkham. Sherbourne car park is Bjerkhamn. Bridgetown marina is Bannister. Tourism Master Plan is Bannister. Housing at Valerie is Bjerkhamn. GAIA works is Bjerkhamn. Four Seasons already promised to Williams and Bjerkhamn. BWA projects is Williams(s) both Bizzy and COW. The rest is to suck SALT.


  29. @Bajan Truth,

    The plan is to cap transfers to QEH and UWI, and I think the Transport Board too. The plan is to cut expenditure and increase efficiency in central government and statutory boards. You are hinging your criticism on what happened in the first year or two, whereas the plan focuses on what will happen between 2010 and 2014.

    Once again, the bus fares and summer camps were principally about helping the most vulnerable.

    Why are you trying so hard to simply discredit what Boyce said?


  30. @ anonymus

    us eyour commonsense. There are only three reasons for investors to spend buy those bonds, and I would have bought some too if it were available on the local market. 7% is extremely high for a bond a very attractive rate, with international savings rates between 2-4%; rating agencies have not downgraded us to junk; and the track record B’dos had in the past for honouring its bonds and debts; they know a gov’t can raise revenue by raising taxes as there are always citizens that can be taxed. Gov’t paper is more popular in recessionary times than IPOs or other ventures.

    Meanwhile the house is burning – read the central bank governors last economic review. Look at the numbers. You might have missed it. Based on Darcy’s speech, he has no ideas to deal with it, hence no budget


  31. Not abad performance from Sen. Boyce given he was clearly sent in to restore some order and confidence in public perception.


  32. @ Brutus

    Check previous blogs and read the central bank report. The transfers gave a breakdown of QEH, Transport Board, Uwi, and other. Other was a hefty 600m, greater than the others put together. It is the increased spending on transfers in the other category that is the major problem. It is much greater than before 2008 and money was borrowed to do that crap. That is an economic crime, you do not borrwo for recurring expenditure. Plus it needs to be borrowed every year if it is not cut. Madness.

    What part of that does not make sense to you? Follow the logic. Its logical. The only thing to do if you follow the logic is check the facts.


  33. @Bajan Truth,

    May I just call you “BLP Truth”? You said

    “That is an economic crime, you do not borrow for recurring expenditure. Plus it needs to be borrowed every year if it is not cut. Madness. ”

    BLP Truth, the plan is to CUT expenditure, among other measures, so that the deficit is eliminated by 2014 or thereabouts. Let me repeat – CUT EXPENDITURE. Am I getting through to you yet? CUT EXPENDITURE.

    Just in case you are still confused, the government plans to cut expenditure gradually and eventually generate a surplus.


  34. Can a Senator in Barbados be the Minister of Finance?


  35. Brutus

    The language of Bajan Truth sounds familiar to that of this Barbadian economist who feels he is superior to all other local economist (e.g. saying madness about other person’s points). Now Darcy Boyce is a highly qualified economist, he received first class honours in Economics from UWI and a Masters in Finance from the University of Toronto. He also worked in the Central Bank for a number of years.
    Why would he sit around and let Barbados economy failed. He is does not speak as a politician because tonight he refused to take the bait of Eversley about the BLP borrowings and went on to say that all governments basically borrow for various reasons.


  36. @Fair Play,

    Unfortunately the reality of the situation is that between the politicians, the civil service and the inefficient private sector we can only hope that the plan will be at least 50% implemented.


  37. Dear Brutus,

    My name is Bajan Truth. I know that you are an honourable man, so I will not call you DLP Brutus because your view supports the DLP. Until the expenditure is cut it HAS TO BE MET. Why, because the expenditure came from borrowings; your revenue has continued to drop, widening your deficit; and you now say you will not introduce new taxes; you need to find the money to keep the expenditure going until it is cut. Read it slowly and digest it before you respond.

    @ Fairplay

    I was the same as you. I was concerned that the DLP had no economist, because my background in business and education has taught me that you need competence to manage a small economy well,as you do a business, it does not manage itself. So I too was relieved when Darcy was appointed to the ministry, after all he was deputy governor of the central bank, i.e. capable of doing Central bank governor’s job, or so I thought. I mentioned this to someone how good it was that they have an economist like Darcy. The response blew my mind, and I have worried ever since. He does not qualify to hold the central bank governor’s position. His qualifications do not make him an economists, an accountant, a financial manager, but not an economist.

  38. Phoenix Richard Avatar
    Phoenix Richard

    The Government of Barbados needs to impliment some BOLD initiatives like a major capital work project or projects. Not just any capital works projects either, they must select those projects which are heavy infrastructure projects creating empolyment in the short term, 24 months.


  39. Why do I feel that it’s a pity that I am not on the blessed Rock at this time. After all, where else (than where I am) could you buy three good books for the equivalent of Bds $6.50?

    I’m glad HSDB/MSF finally found his voice and allowed the bajan public to have some insight into the role and function of a technominister.

    Go Darcy! Go Darcy! With apologies to Stabby the Guard.


  40. Come out things!!!!!!!

  41. Been in town too long Avatar
    Been in town too long

    Clearly I watched a different press conference. I found Boyce to be contradictory on the whole concept of what and what is not a stimulus and whether indeed we had one or not.

    The Medium Term Fiscal Strategy is clearly the Government’s idea of a magic bullet. No mention of plans to assist the productive sectors. Just the same old same old – defending ill advised policies that are responsible for making the economic situation worse than it had to be and blaming the BLP.

    This was so disappointing. I was hoping to hear some bold new policy directions. Some reassurance that the Government knows what is required to get the economy moving again. No such luck.

    And why was he so rattled by Geralyn Edwards’ question about who is the Minister of Finance? Is he sensitive about public opinion on who is in charge of the country?

    Oh dear I have to agree with Conrad’s opening statement. PR can only take you so far.


  42. @Bajan Truth,

    Thank you for toning down the rhetoric. The plan is to balance the budget within a four to five year period, which I think is actually quite aggressive. Are you suggesting that it is better to balance it more quickly than this, or even immediately, to avoid incurring any more debt?


  43. Lets get real folks.

    Barbados stimulus package, what?

    We are a micro economy, dominated by two very elastic markets, both now being globally battered, and in which our ( relatively ) high wage system places us at a severe disadvantage to our nearest competitors.

    What are we stimulating?

    Think on the returns our millions in stimulation have rendered from GEMS.
    What about Mascoll and Hoyos’ involvement in Hardwood.
    Should we subsidise existing construction entities to sell to foreigners or lease back to the GoB, is it really a long term solution?

    We know it’s not, and we don’t like the consequences, so what are we talking about?

    Whenever there is free cash available, we all know from experience where it will gravitate, because of our tribal system, and it certainly won’t be towards innovative entrepreneurs driving the new economy.

    Our currency is tied to the $US and their 20 trillion dollar stimulus package is now all but squandered.
    The Fed is gearing up for a second round of handouts, as their economy stares at the imminent double dip recession, dragging our own currency along into the prospect of hyper-inflation and effective devaluation, which to my mind may be our only salvation without positive government action now.
    But we stand transfixed, like a hare in the headlights.

    Much more to say as we continue this descent into a new type slavery, the options are plain to see, but difficult to take, until we all realise the dream is over and it is time to embrace the independence we earned and make an honest living rather than selling our birthright or holding out the begging bowl.


  44. INEFFICIENT PRIVATE SECTOR

    Yes
    Very Inefficient , self serving , back ward and parasitic
    get rich quick, price gouging sons of bitches


  45. Senator Boyce has a good defensive style, which will be heartening for some, but we have all been there with our West Indian side and the heart still sinks because you know we cannot save the follow on just by defending.

    The reality is as follows. The test of the demand for a bond issue, is not how many people you say were interested, it is the price you ended up paying. If the price is markedly higher than last time (a rise in the interest rate differential to US bonds from 3.2% to 4%) it means appetite for your bonds at the old price has disappeared and you have been forced to raise your price to attract buyers. Not something to boast about.

    The Medium Term plan is already out of date. In that it was based on starting with a lower level of debt and deficit that this year’s. But plans are only useful if they will guide action. The action of the last 2.5 years – where debt jumped from 77% of GDP to 97% of GDP means that the plans have no credibility until there is some evidence of it working. And, to be viable as we have discussed on this blog before, there needs to be significant expenditure cuts and targets. Were they announced? How should we treat the promises of a repeat adulterer?

    The economists define fiscal stimulus as the size of the fiscal deficit, after accounting for what would have happened to tax revenues and expenditure if there was no change in policy just the change in GDP. On this basis there has been a net stimulus (cyclically adjusted expenditure minus cyclically adjusted tax revenues). The question then becomes was it a smart stimulus? No one has difficulty spending money, what matters is what you spend it on. It is indeed possible to stimulate the economy without increasing the deficit by switching the job-intensity or investment-intensity of current spending. And it is possible to appear to stimulate the economy but by not focusing it on non-imported investment and let most of it leak abroad.

    All over the world they have been practicing stimulus and the perceived wisdom is that the thing to do is to focus on temporary job schemes that hold employment, but do not create a permanent increase in expenditure and bringing forward capital expenditure plans that you would have spent anyway in 5 or more years time: new sewage projects, etc. What have we done with our deficit to increase temporary employment and permanent investment? Where was the blueprint of the plan and its targets? Was it presented in Estimates or Budget? Or are we seeing a clever covering up for what happened after the fact? Is Mr Boyce playing Colin Powell at the UN, doing his best with the dodgy photos he has been given?

    So, with several months late, a fiscal current account problem for the first time in our history and debt racing higher, what was unveiled last night? An expenditure cut of 5% this year and next with targeted areas and principles for where the cuts will focus and where they will not? Did we have the airing of some new, creative, policies being developed to maintain employment, to attract more foreign investment to support entrepreneurism, to support local companies with cash to invest rather than hoard? Or did we put in Nash to see if he could bat with Chandrapaul for one more session?


  46. What more could Senator Boyce have said .This was very well crafted speech with the intent to stimulate and stabilize the eroding cofidence against the government. The government has taken the position that it very little that can be done and in the meantime the economy of barbados is not as worst off as some is suggesting . The speech inteself was meant to bring confidence back and not to deliver a magic bullet for the economy.


  47. You know, because I have previously on this blog, extensively, what is needed to be done and where to go, I was refraining from being drawn into anything on the economic issue again.

    Indeed, after this post I will walk away fully from the economic issue.

    However, seeing misunderstanding and drivel posted, I must say one last thing.

    RE article quote ”We have a Government caught in the headlights, frozen, and unable to do anything, hiding behind the fig leaf of it is a big global problem and the last lot did a bad job. Two and a half years into our biggest economic challenges and the Government has no fresh, bold, economic ideas and all it can do is maintain that they do not need them. How can self-respecting DLP intellectuals support that? There is nothing intrinsically DLP about that position, it is Henrism, it is not Barrowism. The real choice the DLP have is not between a set of individual personalities, but between someone who stands for Government as Leading with bold economic ideas as Barrow did, or as Government as merely the exercise of power and patronage”

    —————

    We do not have a Government caught in the headlights, we have a country caught in headlights.

    At a time when worldwide countries are failing miserably economically, riots in some countries such as Greece, joblessness in major developed countries such as the USA, reflecting not just a recession, but severe hardship beyond just an economic label, some really expect some ‘magical transfiguraiton’ of our own little economy, so dependent on tourism and internaitonal business, thus far.

    Indeed, even before this issue, what was the prior administration’s answer to the future, but to sell land to wealthy foreigners, you know this cannot be refuted, that was fully disclosed by the former PM.

    Yet, that was before this serious recession.

    Now, some of you claim to expect (for the benefit of the voting reader obviously), the current administration to magically create a manufacturing industry that was allowed to deteriorate, or improve a services industry that depends on foreign economy, or steriod boost a tourism industry, when the tourists in USA, Germany and England, have no money to travel in the first place.

    Yet I am sure, that you want all of this, without reducing our comparative costs i.e. salaries.

    The source of the increased deficit is clear. Barbados’s earning economy is hit, as everywhere else, harshly by the recession and any idiot who expects otherwise needs to go to DR.GP and ask for a referral for mental examination.

    You want a Barrtow? Yes, Barrow would have taken action. The action that I have said all along needs to be taken i.e. increase VAT and Capital gains, reduce foreign exchange expenditures and local expenditures.

    You would all have lapped it up, because he was Barrow.

    But, the minute this Government turns to do that (and they will eventually have to), you all will claim ‘look, them hurting the small man).

    You know this to be true.

    You know what really needs to be done is increase indirect tax and reduce specific expenditures.

    Redirect specific expenditure monies to hotel and industry production incentives.

    That is the only solution at this time.

    As for the VAT being regressive, that is simply nonsense. VAT is a marginal tax, based on how much one spends.

    The alternative, is job cost cuts, either rates or volume, such as to make our hotels and production costs comparatively lower than others, basic economics.

    But, again, you all will not want that either.

    Because, as you all love to say, everyone wants to go to heaven, no one wants to die.

    Just get this. Outside economies are in the outshouse, mired deep. You expect us to be different?

    The only way out (as Bush Tea & Straight Talk have discussed with me ad nauseum), is severe belt tightening and living like we used to many years ago.

    We will have to face it sometime.

    As for the debt issue, in the long run Barbados is economically feasible, but the reality is that lifestyle changes will come for us. The debt buyers know this, they are not foolish.

    The bank knows to lend you money, they will be repaid. You will cut going to restaurants, travel etc. But the bank will be repaid.

    Same thing.

    Ironically, everyone still thinks that the economic golden years will return anytime soon.

    IF, eventually the UK and USA turn things ‘around’, somewhat do you knwo what follows?

    Inflation. The East including China is utilising much more oil. That translates to oil price rises. That translates to inflation, everything from air travel, our petrol, the plastic on the TV’s you buy.

    Hence, our foreign exchange position will will be further affected by an imbalance in cost of imports vs exports.

    Another reason to get used to belt tightening now.

    The final simple word.

    We cannot afford our lifestyles.

    Enjoy, I have no intention to respond to the political dribble-drabble that may follow.


  48. @Crusoe

    That was a vicious over!

    Senator Boyce’s position was clear:

    Reduce the deficit by eliminating waste and build greater efficiency in the public service.

    The alternative is to send home people. Yes he was inconsistent on the stimulus argument but he had a role as ac stated to build confidence.

    Conrad the state of play calls for the dogged approach of a Nash or Chanderpaul.

  49. Donald Duck Esq, Avatar
    Donald Duck Esq,

    For the benefit of all, Senator Darcy Boyce is NOT an economist. You should check out his qualifications. Please stop referring to him as an economist.


  50. o.k. isn’t money the blood of the economy . Then if people stop spending as is being done now wouldnt it be of a more negative impact to the economy as is evident now since purchasing power is not at the level it used to be and as a result the government being unable to generate revenue via taxes from spending would continue to be low. Maybe bush tea could answer!

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