Submitted by Ellis Chase
Is it the Administration or the People Who Cannot Make Tough Choices?
Since the change in administration in 2008 and the ongoing global economic challenges, the need for restructuring the economy and the failure of the government to make tough choices has been a constant mantra in Bim. This mantra has been constant on this blog, in the media especially by the elite commentators such as Pat Hoyos and Peter Boos, Professional Economists and Members of the Opposition. The debate in Bim has been hijacked by this group which in my opinion is defined by a couple of features:
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A focus on conspicuous consumption and a high carbon lifestyle, which they want to maintain at any cost;
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A disdain for the working class, trades unions and public officers;
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A “Tea Party” like ideological opposition to any taxes;
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A disdain for agriculture and manufacturing.
Let us look back at the 2008 budget as I develop my argument. If my memory is correct in 2008, the media and our elites framed the budget as the budget of free bus fares for school children, summer camps and tax increases to kill Bajans and destroy the economy. Now if one were to take an objective look at the budget, the proposed revenue raising measures amounted to ($104ml), proposed incentives and grants were ($82ml). Of the revenue measures the cell phone tax ($13,9ml), gambling tax ($4.4ml) and the tax on gambling winnings ($8.7ml), were definitely never implemented.
Our elite commentators such as the upper middle class crew on this blog and Pat Hoyos, Peter Boos etc. in the tired main stream media focused on free bus fares and summer camps because of their disdain for the working class, which tends to include public officers and union membership.
Now if they were serious about reform and say moving to a more energy efficient and green economy, free bus fares for school children could have been seen as the state providing an incentive for all parents in Bim to make greater use of public transport in getting their kids to and from school. This would help with the traffic problems and reduce fuel usage. But the elite, middle class and aspiring middle class children in Bim catch the bus. Hell no! And how dare you increase the cost of licensing and registering our fuel guzzling big rides in the same budget where you give freeness to the lower classes.
Are our elites serious about restructuring the economy, making tough personal choices and changing habits? In terms of their travel habits clearly no, and don’ t tell me this is about the efficiency of the Transport Board. Actually, I think if certain kinds of people start taking the bus, the service will change. The the elite, middle class and aspiring middle class in Bim are firmly wedded to their high carbon lifestyle, and they and their children are not catching bus in Bim, they will do so when in London, NY etc.. This is class warfare my friends!
I now take the liberty of listing the measures in the 2008 budget related to alternative energy. Now I am no expert on alternative energy and whether or not these were the right incentives. But my point is, did these measures even make it on stage in terms of the issues raised by our elite commentators in the after budget debate, if only to critique their inadequacy.
Now if people were serious about reform, passing on fuel costs, increase vehicle costs and the various incentives below could be seen as a carrot and sticks across to build a greener, more fuel efficient economy. The elites are uninterested in the carrots, and opposed to the sticks because they are defined by:
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A focus on conspicuous consumption and a high carbon lifestyle, which they want to maintain at any cost;
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A “Tea Party” like ideological opposition to any taxes;
Despite their mantra of fiscal sustainability and no handouts, the state must subsidize their fuel consumption.
Are our elites serious about restructuring the economy and making tough choices? In terms of their energy and fuel consumption, clearly no. What the elites want are big, public sector funded projects from which they can reap largesse. Adjust their lifestyles, hell no! The elite, middle class and aspiring middle class in Bim are firmly wedded to their high carbon lifestyle, and they will destroy anyone who seeks to mess with it. They are the ones who are unwilling to make a number of the tough choices needed to restructure the economy. Don’t let them confuse you! In my next post I want to focus on agriculture and the 2008 budget.
Alternative Energy Measures in the 2008 Budget
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The price of petroleum products and LPG will be adjusted monthly by the Ministry of Trade on the advice of the Division of Energy based on the prices paid for these products by the importers and in accordance with the formula that has been approved by the Cabinet.
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Currently, there exists in the Income Tax Act provision for the cost of energy audits up to $2,000.00 to be deducted as part of the general Income Tax Allowance for Home Improvement of $10,000 in any one year. I propose now to create a separate allowance called the Energy Conservation and Renewable Energy Deduction of a maximum of $5,000.00 per year over each of five (5) years to cover the costs of an energy audit and fifty per cent of the cost of retrofitting a residence or installing a system to produce electricity from a source other than fossil fuels. This applies also to businesses whether incorporated or unincorporated.
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Cabinet has also approved Government approaching the Inter American Development Bank (IDB) for assistance in preparing the appropriate legislation that would require the Barbados Light and Power Co. Ltd. purchase all electricity produced from renewable energy sources and offered for sale to Barbados Light and Power by independent power producers at rates set by the Fair Trading Commission.
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Under Part II B item 87 of the Customs Tariff, various items of wind turbines, photovoltaic components and systems, biofuel systems, hydropower systems, solar thermal systems, wave or tidal power systems, fuel cell systems and geothermal heat pump systems are exempted from import duty (20%) and environmental levy, on the basis of ministerial approval. The need for ministerial approval in each and every instance will no longer apply and these items will automatically enjoy the concession from the Customs.
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