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Press statement from an official at the Ministry of Finance

.

Chris Sinckler, Minister of Finance

The recent decision by Moody’s to adjust Barbados’ domestic Credit rating downward coming as it is just weeks after Standard and Poors using the same information issued a review holding the country’s rating, is both disappointing and surprising.

Disappointing from the perspective that while it recognises the country’s efforts at fiscal consolidation as evidence by the initiatives taken as late as the last budget and more recently in the expenditure restraints in the 2011-12 estimates, it does not sufficiently credit these efforts in the government’s quest to reduce its fiscal deficit and ease debt burden over the medium to long term.

Equally, it is surprising because while correctly holding the foreign debt rating, it curiously ignores the very strong and liquid domestic capital market situation to claim that the system might be unable to support government’s requirements over the short to medium term.

This is clearly a speculative and unnecessary rush to judgment. The evidence is in fact to the contrary. Indeed not only have Government Instruments been eagerly accessed, but consistently oversubscribed. More importantly, the amortization profile for Government’s domestic debt portfolio is relatively smooth, with maturities mostly at the longer end of the maturity spectrum, which aids in ensuring that the domestic debt-service burden is not too onerous.

With this in mind, our government remains focus and committed to working our way out of this tough recessionary period without unraveling the social fabric and economic stability of the country by instituting unnecessary and unreasonable measures that wipe out the social gains of the country and jeopardise the clear signs of recovering which have begun to emerge in the local economy over the last few quarters and that we expect over the course of the rest of 2011. All Barbados must remain focused.

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121 responses to “All Barbados Must Remain Focused In The Face Of Moody's Downgrade”

  1. Jeffrey Avatar
    Jeffrey

    Domestic debt portfolio can be as long and smooth as you like, but with the economy tanking there will be no way to service it, sooner or later.

    We have been called out.

    Time for Plan B – Public Sector Layoffs.

  2. Alien Avatar
    Alien

    Jeffrey, if you are correct, presumably the first to go should be those that get in late, have long lunch periods, leave early, do not go to classes and so on…

  3. David Avatar
    David

    Today’s announcement that Moody’s Investors Service ‘lowered its domestic currency rating on Barbados to the brink of junk’ is not good news for Barbadians buoyed recently by the utterances of Minister Chris Sinckler and Governor of the Central Bank. The Governor in particular was upbeatt.

  4. TooManyLawyers Avatar
    TooManyLawyers

    Lets face it, this might be news to Chris Sinckler and the bajan government…..but your level of debt whether as an individual, household or a country is critical in today’s economic climate!!!

    Based on what I have read, seen and heard in the media the government has been acting as if there is no limit to the amount of debt it can incurr.

    Take a look at Greece, Ireland, the USA and others!!!!!!

    …..and I don’t believe the government’s tourism metrics…..you know what they say about statistics!!!

    Ya gotta come clean…..transparency!!!!!!

  5. Rose Art Avatar
    Rose Art

    We are all on this rock together and therefore todays news regarding the downgrading by Moody’s is very worrying indeed.

  6. Enuff Avatar
    Enuff

    I am shocked that people are shocked.

  7. anthony Avatar
    anthony

    There is two ways of looking at “very strong and liquid domestic capital market situation” One way is that market is waiting for more investment opportunities in government paper. Another way is the companies/people are shying away from government paper to more diversify their portfolio. As exchange control limit the amount that can be move out of the island they rather just leave it in the banks till an investment opportunity arises. there was the said occurrence discuss during the budget that a treasury note issue was under subscribed in very strong and liquid domestic capital market situation. This would lead people to think it might be the latter situation. How the treasury notes and bonds have performed since then would be provide interest view as to if it was a one off occurrence or has the latter situation come into fruition.

  8. All Barbados Must Remain Focused In The Face Of Moody’s Downgrade | Barbados news

    […] as it is just weeks after Standard and Poors using the same information issued a review … Continue reading → This entry was posted in Top stories and tagged Ministry, Moody, Press, Remain, Standard. […]

  9. RJH Adams Avatar
    RJH Adams

    @anthony,

    there is at least another way, too: lenders may be rolling over marginal loans and perhaps have made room to continue doing so. Write downs and write-offs are thus minimised, and delinquency rates flatterred. But new lending is crimped.

    On the demand side, Moody’s are merely recognising that one major insurance company buyer is no longer in the market – or at least not to the degree it was – and that there is a limit to how far the NIS can be used to soak up Government IOUs.

    The last set of NIS accounts were publshed in 2007. At that time Government paper was comfortably above 60% of its holdings. Each downgrade – have ther not been at least 3 since 2007? – lowers the value of that debt (were it being carried at market value) and, theoretically, the NIS’ capacity to meet its future liabilities.

    It would be helpful to know the NIS position today if only to set in context jst how “speculative” and “unecessary” Moodys’ are, in fact, being.

  10. Rose Art Avatar
    Rose Art

    Lets face this is NOT very good news for Barbados. I don’t know I’d go as far as former Prime Minister Arthur in calling for the Minister of Finance and the Governor of the Central Bank to be fired but I do agree someone should be held accountable.

    I get the sneaky suspicion that Sen. Darcy Boyce is the architect of this administrations fiscal policies or lack thereof and that he may be the one to have his feet held to the fire.

  11. weary baje Avatar
    weary baje

    The writing was plain there on the wall for a while now that even the lowest person could understand, This should have been expected. it would only be a shock and surprise to those who are void of understanding and to those who continue to bend the truth when in the public….But at second thought,,.. they are believing their own lie so they will be surprise and shock.
    Waiting to see what their fiscal reaction will be.
    These days are becoming funny nights

  12. David Avatar
    David

    The NIS Fund used by successive governments as the ‘bailout fund’ is too important to not have a statement since 2007. Again some are entitled to ask, where is the transparency.

  13. Crusoe Avatar
    Crusoe

    @Rawdon, Excellent point, @David and your following.

    This is the issue about accountability and transparency. Without that, there can be no fair assessment of the state of the economy, of social programmes and of government performance.

    Even if we take it that Moody’s is overreacting as the Gov’t says (bear in mind Moody’s also critcised the US economy), we do know that the world economy is still struggling and than in itself may be enough for Moody’s to be cautious and conservative.

    What we need to know is where things stand exactly and as Rawdon rightfully pointed out, we do not.

    No one argues except with bias when one is truly driving properly on the raod, holding the line changing direction appropriately for seen potholes, but when one wavers left and right and does not seem able to drive or moreso to hold the line for all to see with no indication of where those potholes are, that is when people become very wary and rightfully so. Not sure if that is the appropriate analogy, I think it applies.

    We have no clear indication of how this car can deal with the existing potholes, hence we start questioning the driver, as the former PM is now doing.

    THIS is why so many of us pushed for transparency, it would not have crippled governance, it would have helped good governance. But they seem too preoccupied in that it would enable easier critique of bad governance.

    Unfortunately, too many in office have not seen that it is the only suitable option if we are to move forward.

  14. Crusoe Avatar
    Crusoe

    @Jeffrey, that is the owrrying thing, the eventual outcome that has economic implications, social implications etc.

    There are so many business, macroeconomic and social outcomes of this issue…..frightening to go into the possibilities.

    But, we did have more than an inkling, as we have said a very long time.

  15. Grabbler Avatar
    Grabbler

    Did the AUDITOR GENERAL REPORTs speak silently to the points raised here i.e with reference to NIS?

  16. George C. Brathwaite Avatar
    George C. Brathwaite

    @Rose Art

    Is is not a bit trifling to move downwards from the Governor of the Central Bank who is supposed to advise the government, or from the Minister of Finance and Economic Affairs; and go to Darcy? What is your position or who is it that you may want to protect? Barbados’ economy is all of our business. Accountability is not transferable to junior Ministers.
    Ideally, if the Prime Minister, though he is not the leader financial minister, was keen on taking the people of Barbados into his confidence, then we could be better positioned to address and cope with negatives from the external environment. I am more than convinced that a healing BLP is by far better for Barbados than a cannot get started-would not communicate DLP.

  17. Crusoe Avatar
    Crusoe

    One other very important point hidden in Moddy’s rating i.e. not only downgrading but with negative outlook, relates to the issue of us being heavily dependent on the North American and European economies.

    Taking it that a steady improvement in NA and Euurope would result in our own imporvement, except for a very rash spending policy locally, brings into question why would they keep the outlook negative.

    The inference then is that Moody’s does not expect much of an improvement in the NA and European economies, which are the drivers of the B’dos economy.

    Interesting no? Supports what we have been saying on those economies.

  18. George C. Brathwaite Avatar
    George C. Brathwaite

    @BU Readers
    One may say that Minister Jones’ lengthy and somewhat purposeful speech yesterday in Parliament, was more the exception than the rule although Mia’s points do make profound sense given the conditions of a fumbling government and a shaky economy pulled into the vortex of the financial crises and recessionary times. One notes the battles and counter-battles in the US, UK, across Europe, in Latin America, other CARICOM member states especially Guyana. However, what definitive is Barbados doing besides fumbling its way to meet IMF demands but choosing to do so in a manner that says it does not directly follow the IMF mandates!

    I gone before someone decides to shift their gaze from the fumbling government onto me.

  19. BAFBFP Avatar
    BAFBFP

    Enuff | June 14, 2011 at 10:33 PM |

    I am shocked that you are shocked that people are shocked

  20. BAFBFP Avatar
    BAFBFP

    Oh Dear dear, one thing that is clear about the NIS is that it is producing two of the best and tallest edifices ever to be sited in Ba’bados. If these buildings are put to their proper and intended use, a lot of the concerns about the future of the the fund to meet future obligations will be answered. However history has shown that tit will very well be the fat ass public servants who will benefit from the spanking new facilities.

  21. islandgal246 Avatar
    islandgal246

    When will the ostrich pull their heads out from under the sand? A friend of mine traveling to the UK, went to the bank to get some pounds travelers cheques and was told that he couldn’t get any and that he must take US tc’s. The largest they had were $20.00. Something ain’t right and someone keeping real silent.

  22. islandgal246 Avatar
    islandgal246

    Does this news mean a devaluation? Now Barrack ain’t ever going to see his money now.

  23. BAFBFP Avatar
    BAFBFP

    George C. Brathwaite

    I heard Mia Mottley’s speech. a good part of it, and I cringed when she spoke about what she thought the primary obligations of the Government were. She missed the mark by a long long way. So much for her promise …!

    Owen Arthur says the Min of Fin and the GOCB should be fired
    http://news.barbadostoday.bb/barticlenew.php?ptitle=Arthur:%20Sinckler%20should%20go!&article=7037&pdate=2011-06-14

    I agree. But what of the newly incorporated Minister in a cabinet that is already one of the largest that we have ever had. What about the executive chairmen in Government agencies and the new oversight body that is to be duplicating work that the FTC, Supervisor of insurance and the Supervisor of Banks could be doing with the current stalling? What about all of the Macro Economists and other consultative operatives in the numerous Government Ministries and agencies who merely serve to compile and present data and have done little in decades to serve the better interests of this country … and so on

  24. BAFBFP Avatar
    BAFBFP

    Now now of course the one thing about a forth coming DEVALUATION (somebody had to say it … I like being the first) is that the most visible official spokes persons on the economy have to portray a vision of calm and confidence. Its a tradition ….

  25. me Avatar
    me

    @Alien | June 14, 2011 at 8:41 PM |
    “…presumably the first to go should be those that get in late, have long lunch periods..”

    that would be most permanent secretaries, ministers and heads of departments

  26. islandgal246 Avatar
    islandgal246

    By the way what must we keep focused on? The news a few weeks ago was that we are out or almost out of the recession and that we had a .025% or something like that real growth. So where does this leave us? Back at the bottom of the pit? We are being played like yo yos. To brag that there has been no public sector lay offs is very disturbing. Here we are going to China with our turned up hats in hand and our tail between our legs. What a picture this makes.

  27. islandgal246 Avatar
    islandgal246

    @ BAFBFP | June 15, 2011 at 7:35 AM |

    I was the FIRST in here to say the D word!

  28. Observer Avatar
    Observer

    To get a true feeling for what is happening in the economy you need to speak to the man on the street, The feedback from such persons indicate that things are very tough, the politicians are going to try to spin it for their advantage but the man on the street is going to let you know how he/she is being affected. We are in for a very rough ride and I see no end in sight as far as an economic turn around is concerned.

  29. anthony Avatar
    anthony

    Last i hear government assets represented at 70% of nis assets. Currently General Government Debt assumed by nis is approximately 2.2 billion.

  30. kate wilsion-jones Avatar
    kate wilsion-jones

    BU have any of your posters read the last rating by S&P on Barbados. It was issued only four weeks ago. I am not tech savvy so I dont know how to link it on this board but if it is not too much trouble please put it up so that all can read it.

    Four weeks ago S and P held Barbados’ rating with a stable outlook, support for the country’s efforts at fiscal consolidation and a positive outlook for growth the near term. This is then confirmed by the IMF only three weeks ago after a Staff visit to the country. Of course with the media we have here hype is fuelled by negative news not positive news so these reviews went unnoticed and no one in the opposition was calling for the head of the minister of finance or the governor of the central bank. In face the story was page 6 in the nation in some small corner. It doubt it even got any coverage on this blog, but i might be incorrect.
    Now the question is, what could possibly have happened in four weeks that could have so radically changed the domestic environment on the capital makets to warrant this downgrade. What is it that Moody’s have discovered that neither the IMF nor S&P saw when looking at the same data.
    It is just a matter of their opinion which clearly is not shared by other experts including the government of barbados and the central bank, S&P and the IMF.
    why therefore should we declare the end of world for Barbados and act as though we did not know that we have work to do to move barbados beyond this point. Our foreign reserves, in the most difficult circumstances remain at around 19 weeks of imports, the local capital makets remain relatively flush with all of the most recent issues of government paper over subscribed and the fiscal situation has stabilized. In the circumstances of a weak international economy Barbados stands out in its ability to hold the country together and halt the free fall that so many have encountered. In fact it would be interesting for Moody’s to explain why it is that for the whole of last year when the economy was not growing and the fiscal situation was close to a total bomb out, they did not issue a downgrade. But in 2011 after the government acted in November with a budget to stablize the decline in the public finances, and have been able to eek out 2.8 percent growth in the first quarter of this year, Moody’s has now jumped out of the wood work with a downgrade. If they did not do one last year how could they do one in year when clearly the economy is in better shape that it was last year. Amazing! I would like to tell you that I understand how these people function but surely I cannot.

  31. George C. Brathwaite Avatar
    George C. Brathwaite

    @BAFBFP

    We all have our likes and dislikes, our preferences and choices, and we push our particular agendas. That is a fact of human nature.

    I must say that while I do admire Chris Sinckler’s political assertiveness and capacity for coming across to the general public as a man on a mission, I am less impressed with his posturing, clarity, foresight, and acumen in dealing with what are now serious economic and financial constraints in the Barbados economy. In that regard, the Leader of the Opposition remains the most effective speaker even if my preference is for him to map out clearly new directions for lifting Barbados out of the mire that now faces the country. Even if initiated in the external, economic stagnation and financial paralysis is allowed to stagger due to the ineffectiveness of policies implemented since 2008 and continued even after the recession took root in Barbados. Not to have significantly altered the trajectory of current trends on the economy which may have showed up in the recent Cabinet reshuffle is itself a sign that the DLP remains highly idealistic and hopeful when creativity and indigenous ingenuity are sine qua non.

    Former Prime Minister Owen Arthur and Leader of the Opposition is correct. In fact, I remember stating publicly more than a year ago that the Governor of the Central Bank while he may understand his field, appears short on communicating his messages to the Barbadian public in way that is authentic and shows the type of imaginative enterprise for dealing with the volatilities and vulnerabilities facing Barbados’ economy. I do not know if he feels stifled by the administration, but to my mind, he is accountable to Barbados for the state of the economy just as much as the current Minister of Finance. Overall, PM Stuart ought to really start reconsidering if it is in the interest of Barbados that he continues for any extended time as Prime Minister since he appears to lack the acute intricacies of strong and decisive political leadership. Maybe this is partly inherited from a predecessor notwithstanding the intellect is not in question.

    My warning to the BLP and to the DLP, is that I am coming home before year end. I shall speak my mind, I shall try my best on behalf of the people of Barbados. While I remain a member of the BLP and will take no slack from the DLP, the peoples’ business is my priority and my concern. No, I am not running in the general election, but I plan seriously to improve the quality of information that Barbados’ electorate use to act upon. It cannot be business as usual with the DLP feeling that talk and promises are sufficient to woo votes while the future of Bajans become to reliant upon a political class that too often hear each others voices but neglect to hear the ordinary masses and the marginalised portions in the Barbadian society. I am returning home with a clear mission to alter, for the better, fortunes of Barbados. This is, in essence, a warning to my political party as well as to the DEMS. Both political parties resent being challenged. For the Dems it is on their failure to deliver empty promises and pie-in-the-sky dreams; for the BEES, it is the fact that the party’s leadership does not or cannot always get it right. George C. Brathwaite is watching, listening, and he is coming home.

  32. RJH Adams Avatar
    RJH Adams

    Perhaps Moody’s is as wrong as the IMF were in 2009 when they predicted very sharp growth for Barbados’s GDP – which came in very negative. Perhaps S&P are right in their prediction that the economy has bottomed. It’s all opinion and doubtless neutrals can triangulate their way through the politics of third-party interpretations to a sensible judgement.

    It does so happen that a few things have occured in the last 4 weeks since S&P pronounced. For example, very disappointing US employment data reignited the double dip recession debate there (in fact much broad US macro data has been persistently worse than expected since April); the UK’s recovery (including the Tory fiscal strategy) has been strongly questioned by a group of economists; and hopes for a settlement of Greece’s debt crisis hit rock bottom…and managed to start digging. Doubts over outlook have risen and it is no great leap to consider these might have negative implications for a tourist reliant economy.

    Still, it is conceivable S&P and the IMF would have reached the same conclusions despite these new circumstances.

    Away from predictions about outlook, the distinction Moody’s make between domestic and foreign held obligations is one that is long overdue and desperately worthy of analysis. Why throw out the baby with the bath water?

  33. BAFBFP Avatar
    BAFBFP

    Oh shite Islandchick, you didn’t spell it wid a capital “D” thpugh …!

  34. weary baje Avatar
    weary baje

    @ BAFBFP | June 15, 2011 at 7:35 AM

    I am in agreement with you there. One will see how the people of Barbados respond to this tradition of calm and confidence when they find that cost of living will be increase by three fold should they drive along the road to devaluation.
    Just a thought…Could it be that these fiscal measures put in place over the past months along with the bending of truth were to prepare the people for devaluation? Weren’t they courting this idea from early last year?
    I am most certain that devaluation was being whisper in some prominent circles last year.
    It is heart breaking to see our hard toiling and that of our parents so easily eroded, all by mismanagement over the years and now by a bunch of blundering rambling soothsayers was the same level of greed as those before them.
    Don’t you fired non performing management?
    When will the people of Barbados fired them?
    They work for you. It’s your money they are managing! It’s your money they are wasting!
    Its your livelihood and that of your children that they are wiping out.
    Investors will think twice about the GOB investment instruments. One wait to see what S&P next credit rating will be.

  35. BAFBFP Avatar
    BAFBFP

    IslandChick

    You ever realize that as soon as Tom’s son unpick he teet pun dis blog somebody quick so does be up with a comment about what a great point was made?

  36. islandgal246 Avatar
    islandgal246

    BAFBFP | June 15, 2011 at 7:35 AM |

    It is not the size of the ocean, it is the motion of the oean.

  37. anthony Avatar
    anthony

    If you wish to read the full rating rational it is here : http://www.moodys.com/research/Moodys-downgrades-Barbados-domestic-currency-rating-to-Baa3-outlook-negative?lang=en&cy=global&docid=PR_220620 . The issue of course isn’t the downgrade. that only puts it at the same level as S&P rating put it in last oct with their downgrade and the min of finance should have state that instead of going on that it isn’t the end of the world.The issue is the negative outlook while S&P has a stable outlook. Of course outlook are subject to change at any time. the 1/2 and 3/4 year report from central bank will paint a very interesting picture as to see which one is right.

  38. islandgal246 Avatar
    islandgal246

    Dat is a Bajun for yuh, dem like to associate wid the offspring of a Tomcat. Perhaps dem wooing him to come and tek over leadership of de BLP. I wunder eff he interested? Now dat will be news bout hey. He should start the third party we want sooo badly.

  39. Tell me Why Avatar
    Tell me Why

    I have a fundamental problem with the various assumptions from these so-called economic wizards. One minute the IMF is saying one thing, then up come Standards and Poor saying almost the same identical thing that the fiscal measures are bringing us out of the recession and up comes Moody with the shocker. Foolish me, like the majority of the electorate is asking a simple question. Are these agencies coming with built-in agendas? Are we being fed with the wrong medicine by these agencies? Are we being fed with the wrong medicine by the head of finances by our two controllers within Government? Who to believe? BTW, can someone give the BU family the true status of the NIS funds since these funds are the lifeline for the sick, the retirees and the decease. Think about it my friends.

  40. Metro Avatar
    Metro

    Can two holes in the ground some distance apart be connected, even if they look unrelated? It strikes me as odd how the heat Moody is bringing down on Barbados coincides with the FIFA debacle. Sports may be sports and Finance may be finance but money still goes cha ching. I wonder if there are any back channels between Moody and FIFA. What a crazy thought.

  41. Trained Economist Avatar
    Trained Economist

    Adams, I share your concern about the NIS’s financial reporting, but I regret having to inform you that the NIS last published audited financials around 1999 not 2007. The current board has hired an accounting firm to help bring the financial up to date. Maybe one of our less politically motivated investigative journalists should check this out.

    Moody’s seems to be calling for a change in the approach to managing the fiscal deficit. So far the government has tried to narrow the gap by raising revenue and making selected expenditure cuts. The revenue raising approach is only likely to be really effective if there is growth in the economy. Moody’s seems to be saying that with the slow down in the global recovery, growth prospects are now lower and the government should make more drastic expenditure cuts. S&P seems to be more patient at the moment and wiling to see if the improvements in the last two quarters can be sustained.

    I hope the Moody’s move adds some context to the local debate. Recall the public screaming about the health care adjustments. I for one cannot see how the government can maintain its payroll and fund everything that was previously funded at the level it was prior to the recession, without completely destroying the creditworthiness of the country. Moody’s seems worried that the government will fail to exert fiscal discipline and seek to spend as if things are normal.

    Maybe Arthur is the saviour. He seems to be arguing that there is a way to grow out of the deficit and not have to cut expenditures or implement revenue raising measures. As an economist I would like Arthur to explain clearly how Barbados can achieve levels of growth adequate to fix the deficit in the current global environment. If such levels of growth were led by the domestic (non-traded) sectors my training leads me to believe that we would be endangering the fixed exchange rate regime. Exactly how you get such levels from the international or traded sector in this environment is something I would like to hear?

  42. Trained Economist Avatar
    Trained Economist

    I am often surprised at how easily persons forget the foreign exchange constraint on public policy in Barbados. If you try to drive growth from domestic sources the Barbados economy will leak foreign exchange and endanger the fixed exchange rate. During the Arthur years we were able to get away with growth fuelled by construction l and government expenditure because of large private capital inflows in the boom years.

    I would like to hear from if we expect such flows to revive at near to pre-recession levels in the near future. If not, where does the foreign exchange needed to fuel a growth solution come from. if growth cannot fix it then we have to face reality and make adjustments to spending. Will the government have the courage to stick to the expenditure adjustments outline din the last budget.

  43. Peter Pan Avatar
    Peter Pan

    All of this going on…..and Freundel ain’t saying nothing !

    Not even a PING or a PANG !!

  44. St George's Dragon Avatar
    St George’s Dragon

    The Government is between a rock and a hard place.
    What it ought to do is to make some cuts in public expenditure by getting rid of the waste (and yes, therefore some staff) in Government departments. At the moment all it has done (apart from raising taxes) is to cut the amount of money given to the quasi-public sector through what they call subventions. While that may have slowed or stopped capital expenditure – so no purchases of new buses, the procurement of the new BWA headquarters put through an off-balance-sheet route etc., it has not fundamentally altered the efficiency of those parts of the public sector, so we still have deficits building up in various parts of the public sector.
    If they cut staff that would do three things; firstly it would reduce the amount the Government would have to borrow; secondly it would give a good push to the Government public reform agenda which is getting nowhere; thirdly it would show the likes of Moody that the Government is serious about addressing the deficit.
    Doing this would, of course, be a huge challenge to a Government which has set it’s strategy as “weather the storm but no public sector job losses”.
    I thought I saw a chink of light the other day though, when Chris Sinckler was talking about inefficiency of the public sector and naming names. See: http://www.gisbarbados.gov.bb/index.php?categoryid=13&p2_articleid=5914
    Does this show some the beginnings of some sort of debate about a change of strategy in Government? It was also interesting that Mr Sinkler seemed to be suggesting some form of private sector involvement could be on the cards. Would this, for instance, mean the Government might be looking at some form of outsourcing model? That should certainly save money and might manage to let the Government transfer work to the private sector (where efficiencies would be sought – aka job cuts). They could then stick with their “no job cuts in the public sector” mantra, while avoiding the bad press of sending staff home.
    It could also show the beginnings a split between Chris Sinckler (possibly a reformer?) and Prime Minister Fumble Through-it (seemingly a supporter of the status quo). Or maybe I read to much into all this………

  45. Enuff Avatar
    Enuff

    @ St. George’s Dragon

    Neo-liberalism? Didn’t Sinckler berate Arthur for his “neo-liberal principles” in the wrap up of the 2010 Budget Debate?

  46. weary baje Avatar
    weary baje

    I am still of the opinion that an inflow of foreign exchange, infrastructure works which will spiral job creation can be achieve if the BWA was to be privatise. The FTC is there as a watchdog to oversee price structure so that that would have to be done by the government is to set up a quality control unit through the MOH Much can be gain economically and socially from having a competitive water industry. AS it stand right now BWA is a deep drain on tax payers and its product quality is poor, it customer service is lacking and management is out of touch of what the water industry is all about.
    Don’t think this present administration had any comprehensive plan on how to manage this 8 Billion dollar economy, they probably thought this was still a 1970’s economy.
    Their homework and research was not done properly now they are seeing the results of they exams.

  47. David Avatar
    David

    Here is the link to that Standard Poor’ press release:

    http://www.centralbank.org.bb/WEBCBB.nsf/(hpNews)/943CE46AE22EBEB50425788C0054D254?OpenDocument

  48. amusing Avatar
    amusing

    love the headline..” all barbados must remain focused..”.. so Soviet

  49. Nickle Night Avatar
    Nickle Night

    @ amusing

    You gotta love Owen’s quote about Sinckler’s amateur hour, lol. Whatever you say about PM Arthur you have to admit he is the best politician in Parliament.

  50. Little Angel Avatar
    Little Angel

    Just read it BU……most interesting. Talk about divergent views. Tell me something, what did the opposition say about this when it was release in May. I did not hear them calling for the resignation of the minister of finance or did I miss that too. And how come the Nation did not highlight on the front page of their paper, or did I miss that too.

    Stupse! politics hear. Never a dull moment in Barbados

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