Stop Blaming All On Global Economies

Submitted by Old Onion Bags

Why don’t the DLP give up on its campaign of blaming everything on Global Economies for its lethargy. Bajan are growing tired of it now. Everything during its 5 year term has been blamed on the Global Economies yet Brazil, Singapore, Taiwan Guyana Canada Sweden and I can go on and on…have been registering GROWTH during 2008-2012.

Why are these places immune from Global Economies.?… is just their Ministers of Finance( unlike ours) has enough sense to know… an over taxed economy will present NO GROWTH…increasing VAT by 2.5 % collected $54 million but hauled in $-120 million in bounced cheques..netting minus $-66Million..They should be so ashamed to have published this…so what was the Controller doing all this long time…it only takes 4 weeks at most to know a cheque has bounced….but $-120 million..

That’s what you call sitting on your arses and twiddling thumbs

90 thoughts on “Stop Blaming All On Global Economies

  1. Barbados is the only country left in a global recession. 192million owed to vat. 200million in bounced cheques a year, you think those are all different people each time writing bounced cheques? They are the same persons.

    500m in some other unpaid money, we are not in a recession, our economy is fine. We could afford a public service wage increase of 15 percent.

    Our budget could be balanced in two years with no debt, if not for the fiscal corruption and pure ineptness of the crew managing it.

    How does one as a Government sit down and let yourself be owed so much money? How does one justify this disgraceful lack of enforcement. How does one let it continue after it happened in the first instance one year?

    We need a press conference where the bloggers ask the questions.

  2. That’s why Barbados’ economy today is in the doldrums..MIS-MANAGEMENT…stop blaming everything on Global Economies and get off your arses and DO SOMETHING CONSTRUCTIVE ( follow the PM’s re-energized crusade) instead of over taxing hard working bajans….who up to this time have been very tolerating of these draconian measures and you all’s lethargy.

    ….. “with dispatch” YOUR TIME IS RUNNING OUT !

  3. @ Posh | January 29, 2012 at 12:44 PM |
    “192million owed to vat. ”

    This is downright theft, stealing or misappropriation of funds, call it what you like! When a business collects money from customers and fails to pay it over to the VAT Division it is no more than fraud.
    Now one might be a “bit sympathetic” if it was a tax on profits or the business operations where cash flow constraints could arise. But VAT? This is strictly a tax on the final consumer not the business. Even if 5% to 10 % of the net tax due is withheld as an “administration” fee it would not be considered unreasonable, but none at all of the money that ordinary consumers like you and I pay over is remitted to the Customs is downright stealing. Where are the Law and its enforcement agencies in all of this? No wonder Bim is in such an awful state, despite all of this “free” education and Information technology!

    • Have we not had the Auditor General report on similar matters through the years?

      This has occurred under both administrations.

      Why no action?

  4. @ David
    What is also most disturbing by the present Administration, was is in their quest to find a solution to the problem..proposing to legislate that all directors of companies are now liable to repay these monies to Govt.( This proposal needs to be amended to include only ownerdirectors.)

    Has anyone for one moment stop to consider not all Directors are owneraffilliate to companies… and that at these times, are only serving in an advising capacity by having the knowledge skill that would assist the company in making good decisions.

    Picture the mayhem that would ensue….Directors would think twice about accepting $ 200 for sitting in on each meeting…for fear of this draconian measure should this be legislated as is.

    In an effort to catch the culprit…we punish the whole class room mentality.

  5. While you peeps are correct to advise Govt to get cracking on a recovery plan, I can absolutely assure you that the worst has NOt reached yet! Europe and North America are where massive tourist and financial demand originate, to say nothing about remittances from Bajans living in those regions. When they receive the big lash coming fairly soon, Bim will be reeling!

    I have been calling for the cessation of partisan politics and the advent of statesmanlike leadership, which hurriedly assembles the very cleverest Bajans to analyse the mess and develop workable, practical solutions asap.
    The very best innovative and creative solutions are possible and indeed critical to prevent major societal upheaval. The PM and his inner circle need to arise from their slumber and take positive action. Amateur hour has long since become irresponsible. HINT the answer is JOBS, JOBS, JOBS!

  6. @ Jobs
    Sometimes…it don’t take a shoemaker to recognize a worn out shoe.
    We would love to be recipient of jobs jobs jobs if they were sustainable and did not come at a high “paradise” price.
    Get the drift….we do
    Hint Prof.Do your jobs attract from without

    • For those interested in a macro view which paints a picture of the world we have to exist here is an article worthy of reading. It is very long and littered with terms of art but an average level of understanding which most of the BU family command should help to glean some info.

      Tail Events, Isolation, New Normal

      By Jim Willie01/26/2012
      The year 2012 has started out in strange ways. While celestial forces augur for rare tail events, the assurance of man-made events that stretch far into the extreme tail of probability are not only very likely but will be of a type to reflect the change in the global balance of financial power. The Paradigm Shift mentioned over the course of the last two to three years is at work, having moved into a higher gear. The gold is moving from the West to the East, along with the power. We will not see the process reverse in our lifetime. The sanctions set against Iran have been devised by a former global leader nation that is beset by insolvency, fraud, and lost integrity. The backfire has consolidated forces into a more fortified position against the USDollar. Trade increasingly is not being settled in US$ terms. The icons of the day are mere apologist public address systems attempting to rationalize and justify the deep insolvency and wrecked systems. The new normal is of a caravan file of broken cars and trucks sputtering down the road, using the false fuel of hyper monetary inflation and the offensive paint of phony financial accounting, the tell-tale sign being the ugly rancid smoke out of their tailpipes. The last insult is of the US Presidential election process, which is badly marred by obvious inconsistencies and anomalies. The vote count for the candidate that attracts the biggest crowds, attracts the biggest donations from corporations, and defies the financially teetering system does not match the final official tallies.

      Thanks Moneybrain!

  7. I laugh when I hear all of this talk about government departments collecting arrears. In many cases, senior officers protect the taxpayer who refuses to remit the tax. Then they mislead neophyte Ministers of Finance into doing the wrong thing like imposing more taxes. I know of cases where officers are prevented from doing their job because the defaulter is a friend of the senior public official or a minister. I know several public officers who were transferred because they offended certain defaulters. Their offence – attempting to collect tax from defaulters who could pay. Instead these defaulters get their debt ignored by paying a lot less to some official

  8. The reason why there is so much lewdness with VAT is that the Department is under staffed.I have been told of instances when known offenders are left untouched with nothing more than the Assessment Notice informing the offender of pending action for years and heshe continues their business.
    Likewise, in the Income Tax Department. Govt needs to get serious about policing and employing suitably qualified staff to act. A check with these departments…there are openings for collectors (graduates) but when many a graduate applies, they are told no vacancy. I know of this instance for sure..unbelievable but true…..a friend of a friend syndrome.

  9. The taxation assault that was unleashed on Barbados, has brought about what is occasioned today ..a total slow down of the economy and negative or no growth pattern during the five year implemented.It was a mistake to increase VAT from 15% to 17.50% in order to bring additional revenue in a time of recession as was warned by Mascoll, Justin Robinson of UWI and Owen Arthur of the opposition.If I remember right, the analogy was to be liked “an air plane taking off with four open parachutes”..It was suggested that this would stifle any growth, the struggling economy was stimulating on its own at that time.
    Regardless of the warnings of these recognized economists, the tax increase was implemented with the predicted results…a barren economy..stagflation occasioned with increased inflation and a decline in”real” revenues.
    Has anybody even as much as flinch to remove or introduce any other corrective fiscal measures to rescue this economy from entering total morass.?.No.. to-date instead, we hear of more monies to be taken from our NIS fund.More money to fuel us down a Four Seasons path with no foreseeable end in sight. Furthermore, we now hear of the blame game, with finger pointing and no cohesion in the ranks…while the country continues its downward spiral path.
    “Look to the light at the end of the tunnel.”…What light..? For all we see is a Emera..and a ever increasing fuel adjustment clause, rubbing salt in our wounds adding further insult to injury, for yet another bad investment decision by this administration.. the selling of the BL&P shares.

  10. Something would have to be seriously wrong in this country when we would sell shares in the BL&P (belonging to NIS) for $25 to a Canadian company called Emera…which in less than 12 months thereafter listed the shares @ $ 70….
    Now those monies from the sale of the NIS shares are being sought by a Professor who seemingly can’t find outside investors for Four Seasons..but asking Bdo’s Govt to invest in a project nobody wants to touch. and the Board NIS ok it…well well

    In effect we would be moving money from a GOOD SAFE INVESTMENT ..BL&P shares…to an UNSURE ONE …Four Seasons..under the pretense ..”it go provide jobs for Barbadians…..sick

    What is going on in this place????

  11. What would cause BL&P management to want to entice the government to want to sell to Emera?Should Gov’t not sought independent advisers to safe guard any handsie pandsie ?Is there was enough evidence that such i.e there was a planned conspiracy.?.if so don’t they incarcerate people for issuing falsified financial information to the benefit of a few?

    I have also since noticed, the color make up of top management has changed as well as a” former” manning a more affable position in the scheme of things.
    Who will be bold enough to bell the cat? That is if there are interested.

  12. the minister of finance is only ls only playing to the gallery in seeking public sympathy by citing the arrears paid to the govt; ask him how much does the vat office and the inland revenue owe to the taxpayers in refunds an a different picture would emerge. look, if the govt was serious in collecting taxes, they would not be busy implementing on-line systems of tax collecting which are working to their disadvantage inthe absence of adequate staff to police the system. the auditor general’s revelations about the deficiencies in revenu collection at the inland revenue dept is only the tip of the iceberg. i know of a person who was refunded the tax of in excess of $700, dollars which they paid. this person did not cash the cheque but what about those who recived unentitled refunds for more who cashed their cheques. on-line filing would forever prove to be a disaster unless there is a proper and satisfactory reconciliation processin place.

  13. January 29, 2012 at 6:49 PM |
    “a company called Emera…which in less than 12 months thereafter listed the shares @ $ 70…”
    ( listed “their” shares…correction)

    CAD $32.80 =Approx BDS$70….today’s listed Price for Emera’s shares on the CSE….exchg 1cdn=2.1 Bds

  14. To ALL posters;

    Wake UP, BARBADOS is CORRUPT it’s endemic and unfortunately there’s is no will to come with a vaccine for the disease as will KILL hundreds, mostly inept politicians and senior civil servants.

    Poor Politicians and Civil Servants are entitled to the GOLDEN EGG, unfortunately the GOOSE is just about DEAD.

  15. Why is investing in this Four Seasons attracting so much attention now at this 11th hour before elections ?
    Why the $60 million has already been voted by the NIS Board so what’s the hold up?The IDB loan? Has something pop up about getting the public confidence before approval maybe..or they changed their mind? Whatever it certainly has many in this Admin.jittery.
    Why should His Exec.Bobby Morris (Caricom Amb) ….in closing of the People’s business last night, stress it is crucial that the loan goes thru?..Does he know something we don’t ? Really now there certainly is a lot of interest generated in this loan.Like the Leader of the Opposition taking out a full page advertisement ($4,000) in the Sun Day-Sun to object against NIS money being applied tor this project..
    Tell us the people please what are we missing ….

  16. @old onion bags: “Like the Leader of the Opposition taking out a full page advertisement ($4,000) in the Sun Day-Sun to object against NIS money being applied tor this project..

    Did he? Amusing.

    Anyone who reads The Economist would know this was a bad investment.

  17. The people in the private sector believe the same crap too. So them remain tight on hiring and salary increases.

    Yet there seem to be no shortage of funds for the bosses and directors luxuries.,

  18. Tourism and its foreign exchange drives the Barbados Economy. When tourism falls the Barbados economy hurts, plain and simple.
    The tourism sector declined because of recession in international source markets- THAT IS A FACT !The minister of finance or Minister of Tourism did not cause the tourists to reduce their spending or to stop coming.
    The government responded by offering relief to the hotels though the Tourism assistance programme ( abour 25 million)- this directly assisted in keeping jobs in the sector,they looked to diversify the source markets-Brazil,new charters from Sweden, etc , in the Nov 2010 budget they brougt forward additional marketing and support to generate bookings, they have signed the hottest recording star on the planet Rihanna to assist, Senator Peter Gilkes has been working to bring sailing and yachting events, The BTA endorsed high end events like the Sentebale Polo tournament with Prince Harry, No fair minded objective person can honestly say the government has not been working! We fool ourselves if we believe that 2 economists in the BLP have a magic wand that the rest of the world has not discovered.

  19. Yes Sharon Kudos given when Kudos due( after all, this the No.1 income earner) ) If only all departments and ministries were like Tourism. Most definitely tourist arrivals do have a direct relationship to the recession.This begs the question then, why go ahead with Four Seasons in these turbulent economic times?To risk $ 60 million of funds accumulated for our pensions and other social amenities when all indicators, as you so rightly expound, show a downturn in the industry.UK will be holding the Olympics this summer and USA elections will keep many regulars home.
    Given all these warnings ( as with the 2% increase in VAT), would you not agree, that should Four Seasons go belly up, given all the economists and analyst advisers available to present a comprehensive feasibility assessment BEFORE any committal, this would be gross mismanagement by the Minister of Finance and his crew, and should never be blamed on Global Economies the band-aid for all wrongs ? This leads to the very core of this BU article submitted by Onions, where do we draw the line as to what is outside our hands(global economies) and what is (making informed decisions)?
    Global economies should not be used as an excuse for mis management as the present administration is guilty of.

  20. in as much as i am one to believe that the Four season project is going to be one to bite the government in the arsss . i can’t help but wonder that with all the global economic problems that we are having and the driving need to bring the barbados deficit down how is it the BLP going to fixed the economy without having strident measures in places that would not affect people. i read some comments hear and it is like if when the DLP is voted out of office the magic would begin and the pie would fall from the sky like manna for all .For sure we all need a reality check for that is not going to happen.

  21. @ac
    “when the DLP is voted out of office the magic would begin”

    No one would be that naive to believe in a magical solution.But good grief, some solution.So far this administration has shown it is totally bankrupt of ideas and now, has taken to cannibalism.We have been taxed on almost every conceivable thing you can image.And it looks like even more coming …in an election year? Does’nt make sense? Over taxed and dis-embellished, that how the hard working populace stands today. What about the other lethargy exposed ? Could anyone seriously think we could continue in this vein much longer.Five years of this “Frendelomics” is enough. Time for change.

  22. I hear the all the economistincluding the highly touted clyde mascoll talking about what the DLP is doing wrong but i am yet to hear from them what would the BLP do to bring down the deficit and that is the elephant that the BLP is not touching and we know why because the measures are Going to drastic

  23. @ ac
    There are other less draconian ways… sometimes you can’t let the cat out the bag too early. I would hope so at least…

  24. Oinions i don,t agree with that concept because that is where transparency starts .nobody wants to hear the word”change” without being told told how and where the change is going to be i said right now all i am getting is criticism of the DLP but no “real” answers from the opposition as to how they can better move the country forward

  25. @ ac
    Transparency yes, I am all for it. Not early showing your hand, no.
    Change is the only way to go, when people get so confused,that they can’t find answers and start doing strange things like (11). When you hit rock bottom , the only way is up.If some don’t know how to get there, time to change them.
    There was a time back when a certain politician fell victim to coming forward with his hand and paid dearly for it. Since… nobody exposes their hand.Plagiarism its called.


    The whole point to this argument is severely flawed. The countries that you have mentioned are prosperous due to the sole fact that they have huge MANUFACTURING industries. Not to mention that along with their governments implementing PROTECTIONIST measures, their infant/secondary industries were allowed to mature and develop into healthy components to those given economies.

    In contrast, Barbados' government has severely lagged in implementing any real measures that would have significantly accommodated and benefited Barbados' secondary industries; more specifically her manufacturing sector. After it took a major hit in the 1980's, the Barbados government failed to initiate any proper policies to help revamp her manufacturing sector due to the fact that the government was more focused on giving leverage to foreign companies (ie. Intel). This, as opposed to funding domestic manufacturing and our agriculture industries through providing them with financial and economic shielding by establishing foreign economic policies/tariffs that would have protected and helped stimulated the growth of Barbadian secondary industries.

    Not to mention that the government should have been more avid in also securing a spot for domestic companies in our Financial sector by funding domestic brands that could have offered services to both foreign companies and individuals.

    What would have also been appropriate of the government at the time was for them to devalue our currency. This would have benefited Barbados in that it could have attracted foreign investors from developing nations particularly from Asia and the Middle East, including South America and Europe. Barbados' government should have been more strategic in pushing for more favorable terms in the global market by actively competing with her neighbors in providing better incentives. While securing sure deals that would have benefited her economy; the government should have also kept up the tariffs on her secondary industries and used the revenues from her primary sectors to help develop them.

    Instead, the government became too lax (more so our politicians were sidelined by foreign conglomerates with their funding) and became too heavily reliant on the industries of tourism and offshore banking. This in essence made Barbados' economy a service economy, as opposed to a productive one. As a result, our economy is only but a smaller scale version of the U.S. in that we rely greatly on imports as opposed to placing greater emphasis on OUR domestically branded products. Not to mention that our domestic market would have become more competitive and more aggressive in securing profits in both Barbados and ESPECIALLY foreign developing markets. Rather, our government has become overly reliant on getting funds from The U.S., U.K., and Canada; an accommodation which really didn't allow for OUR DEVELOPING Barbados to have benefited the same way by being on the 'equal' playing field-level as the ALREADY DEVELOPED Britain, Canada, and America.

    That would have enabled Barbados to become more industrialized in that our economy would have had more domestic companies, thus more domestic products and hence a much cheaper cost of living due to the fact that Barbados wouldn't have been reliant on imports. In other words, by PRODUCING, Barbados would have been able to secure more profits and would have become an industrialized country all by now. Instead, we have become a SERVICING economy in that foreign companies pretty much had free game to open up shop without having to go through any real political bureaucracies that would have foreign corporate entities subject to the Barbadian government.

    BY PRODUCING, WE WOULD NOT ONLY HAVE BEEN ABLE TO MAXIMIZE OUR PROFITS BUT ALSO WOULD HAVE ALLOWED FOR NATIONAL RESERVES TO HAVE SOARED IN GROWTH AND WEALTH. In short, we would have more Physical Assets by now (ie. gold, silver, etc.) in our reserves which would have considerably bettered our likeliness of withstanding the oncoming and ever impending global economic crisis that is about to be triggered by the U.S. 'bubble collapse'.

    ***So the Poster's logic is missing VERY KEY ARGUMENTS HERE!!***

  27. Another KEY POINT, As a result of not being a PRODUCTIVE economy Barbados is subject to foreign tariffs which translates to greater taxes for the nation. This, as an effect of our government opting for Barbados to become a SERVICE economy.

  28. I am dying with laughter. The same people that touted the DLP to ‘save’ Barbados are capitulating fast due to the sheer ineptitude on the part of their beloved party, and are now epiphanous in declaring that the BLP has no magic wand.
    FYI, no one expects a magic wand just a hard working Cabinet with sensible, practical, cohesive, achievable goals, objectives, policies, programmes and plans topped off with decisive leadership.
    The government has been struggling with Four Seasons for nearly two years, a decision that requires NO input/support from the Opposition yet can’t make a decision. I shudder at the thought of Glendairy burning down under this government.

  29. @ old onion bags

    Then would you be so kind as to where I am left out? I would be more than willing to understand what it is you are trying to say. Are you saying that I am wrong? I addressed your points but I took it a step further by having you look at it from a macro-economic standpoint. Please provide me a point of clarification if I indeed “missed” something…

    The points that I raised is relevant to your topic because it gives one a map as to WHY economic growth in Barbados has been stifled. So please kind sir, DO elaborate me on which points I have missed……

  30. @ enuff
    Spot on, Spot on…..this article has brought out many interesting issues,that hopefully should cause many to sit up and take note,of the state of current affairs in this country.
    As I asked earlier …. If NIS approved use of those funds, what has been the hold up?See:{January 30, 2012 at 3:57 PM |}
    Same ole same ole ..indecisiveness and lethargy.

  31. enuff wrote “with sensible, practical, cohesive, achievable goals, objectives, policies, programmes and plans.”

    Like the Owen plan in a booming world wide economy.

    Sell land to be used for its best roi and build highways and “fortuitously” a Prison.

    Barbados has nothing but land an nuff people.

    Time to lease a ship to bring cargo directly from China to Barbados so manufacturers do not have to pay twice for raw material and so the consumers don’t have to pay $200 for a $20 pair of jeans.

  32. @old onion bags

    And alas, I still await your response…

    @ DAVID (B.U.)
    Psssh, I think its time that you have an ‘article’ submitted from someone that can ACTUALLY EXPLAIN the trends occurring in the global market right now, how its affecting us, where our government went wrong, and WHAT we can expect as a result of such a turnout.

    Posting submissions that don’t even provide readers with a clear and concise argument/explanation as to how these effects came to be. It just comes off more so as speculative thus cannot be received as an “article” in my book.

    That said, I beg you to please employ more EXPLANATORY PIECES with CLEAR and DETAILED ANALYSIS, particularly when it comes to explaining the functions of logistics and economics. Anything that lags in that cannot count as an “article” in my book.

  33. @ David (B.U.) I also just got finished reading your prior post with the pieces. REALLY STRONG POINTS THEY RAISE INDEED BROTHER DAVID!!!

  34. @ Brudda Bim
    Your submission has sought to show the interdependency of outside influences on our economy.Such is the case with all countries.Your perspective took a more paradigm approach.What was expected was endogenous ways to counter these exogenous forces and cause the economy to perform.Need we be reminded, it was successfully done before.

    Interesting as it may, it has failed to exonerate the administration for its folly of giving up and laying blame.

  35. @Old Onion Bags
    Hence, why it was a “macro-economic” approach to the situation. However you also forgot to note that I offered explanation as to where the Barbadian government went wrong in terms of developing the economy. However the points of failure on part of the Barbadian government that I raised should also be taken as a probable map for future SERIOUS economic reform and development. Which is What I was trying to convey in my retort.

  36. @Brudah-Bim
    The article sought to express disappointment in our leaders for looking for excuses.For to long now we have been hearing this one fit all call.
    All that was intended was a request to dig deeper and not to accept mediocrity .When the late Errol Walton Barrow moved us towards independence, the road certainly could not have been easy.At that time of high racial tensions and an entrenched plantation mentality,there were times when even he probably doubted it could be done.Only through tenacity and a willingness to look for answers could he have achieve what he did.A real leader..said to be way ahead of his time.

  37. @ David
    The project need not be public sector for there to clear, correct and consistent information and decisiveness.

    @ Hants
    What land Owen or the BLP sold?
    At the time PRIVATE land owners were selling their land, the BLP was offering incentives to manufacturing and agriculture, for energy efficiency in homes s well as cars; Fund Access, EGFL, Innovation Award, developing a sugar industry, attempted sea island cotton industry, building an offshore oil exploration industry, expanding Crop Over, Pom Marine, hockey turf, fashion industry mobilised, Small Business Act and an incubation centre…………….

  38. @ac| January 31, 2012 at 6:29 AM

    Hi ac. Remember, o ye of little faith….. remember 1994 onwards. This country was in deep “doodoo” at that time and “manna” did not fall from heaven but with sheer tenacity and clear vision (remember, with the Lord on our side we have no need to fear) we were hauled out of a “bottomless” pit to where the Dems had led us. If it was possible then why do you think its not possible again. We are once again at the brink of a precipice ready to fall into that same “bottomless” pit. So, have faith, ac, if we give those a chance who have been there before, I am sure the good Lord will guide us back to firmer ground once more. Time will tell.

  39. @hood
    we were hauled out of a “bottomless” pit to where the Dems had led us. If it was possible”
    What a load of hog wash..Hood

    You want to know why we can’t think it is “possible that the DLP will some how(kick in) and pull us out that hole..”

    THEY HAD FIVE YEARS….AND DID NOTHING…..stop begging like a condemned man..time up

  40. @ old onion bags| February 2, 2012 at 1:00 PM

    Something seems to be radically wrong with your comprehension skills! Please re-read my comment and see whether I am suggesting that any DEM could help at this point. My comments suggest the complete opposite! Go read again and I hope you comprehend a bit better this time.

  41. How in the name of expectations could we trust this inept Government to pull us out of a hole when …even the Eager 11 wanted to throw the ”
    Capitannn” ova board”?… How could you explain $120 million in bounced cheques..?..Tell me now in all fairness….Was ALL the finance Department at VAT on vacation all at the same time.?…And then the Minister has the audacity to say…the debtors run and form NEW companies ….in Barbados??..and doing business with Govt.??…what D raaaaaaa

    Is this a scene from Shakespeare’s Mid Summer Dream madness or what..?.pinch me pls….I rest my case Hood.

  42. @ hood
    Yes….I see were are the heat of this fiasco..we sometimes lose our eye glasses and other perspectives.You must sound louder in future to prevent Onion shortsight.Apologies given.

  43. @ Hood
    What is also most disturbing, it the “doan care-ish ” and unsympathetic attitude exhibited by the Minister immediately informing of further draconian measures supposedly to stop the practice of bounced cheques…by implementing measure to ALL Directors…(good gracious me.).
    Could he not see that the Vat measures (2% increase) had back fired ..and is the reasons for the bounced cheques. (in the first place)..and not the the debtors did not want to pay …but could NOT…??…( they were paying before)…ACC101.

  44. The good Professor is noted on the morning radio call in program 947 yesterday claiming Four Seasons.being financed by by NIS funds will not show up as debt owed to Govt……Has he not heard of Off Balance Sheet financing and what it did to Eron Company in the USA.? He also recommends this as the way to go in future…oh really ?Jobs,he says will resume once the project starts…350 apprx Constr….How many of these will be Chinese and immigrants was the case when the project was up and kicking?
    Come now good professor surely you can find a rich Chinese or Indian investor than can be easily woed from Asia ?

  45. @ CH
    Boss….i just ck Oxford… I don’t know.whey u at….but i know this..if the project so viable why the hell Professor and his advisers should be at least able to find two millionaire friends in Nagpur to help with the Prespiring…dat is how ya spell it…?Na jokes

  46. @CH
    I think if you read up the link and google Enron …it would be suffice..for Professor to be advising publicly…the use of Off Balance Sheet Financing as the way to go to the Government of Barbados after all the World went thru (GER)..from my lil knowledge of Best Practices….and Corporate Governance…it don’t sound right….he should know better.

  47. @ C Halsall
    Did your further reading see where I was going with this?
    I find it very strange to say the least ..

  48. Onion….illusion…Onion.
    .Look man all I am saying the learned gentleman should know better than to say what he said….conslt: Sabarnes Oxley Report..see Arthur Anderson’s Omissions…which led to their bankruptcy.
    I think the Government needs to investigate further…….(David)

  49. If not to attract investors why are we paying an alleged $4M. to this man ? for Let him go to China..they got money…or India

  50. @hood

    You know i will take your godly advice .However that was like thirty years ago and the yardstick use to measure the economy was a little shorter and the deficit was not so high . Now fast forward thirty years later see the difference times have change world markets are broke everybody hoarding everyman and jack got to fend for themselves the red flags are flying high.

  51. @CH

    Why don’t you leave ole onions alone he not bothering you. BTW what happen to the picture you once used or was that an impostor.

  52. I wish those who know better would explain how and why we should be paying a self acclaimed guru…$millions to tell us nonsense…Onions is right read SOX Sabarnes Oxley Act on Off Balance Sheet Financing

  53. Off-Balance-Sheet Entities: The Theory
    Off-balance-sheet entities are assets or debts that do not appear on a company’s balance sheet. For example, oil-drilling companies often establish off-balance-sheet subsidiaries as a way to finance oil exploration projects. In a clean and clear example, a parent company can set up a subsidiary company and spin it off by selling a controlling interest (or the entire company) to investors. Such a sale generates profits for the parent company from the sale, transfers the risk of the new business failing to the investors and lets the parent company remove the subsidiary from its balance sheet.

    Off-Balance-Sheet Entities: The Reality
    Too often, however, off–balance-sheet entities are used to artificially inflate profits and make firms look more financially secure than they actually are. A complex and confusing array of investment vehicles, including but not limited to collateralized debt obligations, subprime-mortgage securities and credit default swaps are used to remove debts from corporate balance sheets. The parent company lists proceeds from the sale of these items as assets but does not list the financial obligations that come with them as liabilities. For example, consider loans made by a bank. When issued, the loans are typically kept on the bank’s books as an asset. If those loans are securitized and sold off as investments, however, the securitized debt (for which the bank is liable) is not kept on the bank’s books. This accounting maneuver helps the issuing firm’s stock price and artificially inflates profits, enabling CEOs to claim credit for a solid balance sheet and reap huge bonuses as a result. (Sneaky Subsidiary Tricks Can Cloud Financials provides insight into how the process works with subsidiaries, and it’s not the only trick companies use.)

    A History of Fraud
    The Enron scandal was one of the first developments to bring the use of off-balance-sheet entities to the public’s attention. In Enron’s case, the company would build an asset such as a power plant and immediately claim the projected profit on its books even though it hadn’t made one dime from it. If the revenue from the power plant was less than the projected amount, instead of taking the loss, the company would then transfer these assets to an off-the-books corporation, where the loss would go unreported. (For more insight into this scandal, read Enron’s Collapse: The Fall Of A Wall Street Darling.)

    Basically the entire banking industry has participated in the same practice, often through the use of credit default swaps (CDS). The practice was so common that just 10 years after JPMorgan’s 1997 introduction of the CDS, it grew to an estimated $45 trillion business, according to the International Swaps and Derivatives Association. That’s more than twice the size of the U.S. stock market, and only the beginning as the CDS market would later be reported in excess of $60 trillion. (Credit Default Swaps: An Introduction, provides a closer look at these products.)

    The use of leverage further complicates the subject of off-balance-sheet entities. Consider a bank that has $1,000 to invest. This amount could be invested in 10 shares of a stock that sells for $100 per share. Or the bank could invest the $1,000 in five options contracts that would give it control over 500 shares instead of just 10. This practice would work out quite favorably if the stock price rises, and quite disastrously if the price falls.

    Now, apply this situation to banks during the credit crisis and their use of CDS instruments, keeping in mind that some firms had leverage ratios of 30 to one. When their bets went bad, American taxpayers had to step in to bail the firms out in order to keep them from failing. The financial gurus who orchestrated the failures kept their profits and left the taxpayers holding the bill.

    Read more:

  54. Will somebody please cull this Indian man before he gives our hard ass MONEY to these croneys….and runs off to India laughing…ALL YOUR PROOF of his lack of knowledge is there….the method is accountable for many international company and bank failures..Fanny Mae..etc.
    PLEASE PLEASE PLEASE ..will we wake up!!!

  55. ing in mind that some firms had leverage ratios of 30 to one. When their bets went bad, American taxpayers had to step in to bail the firms out in order to keep them from failing. The financial gurus who orchestrated the failures kept their profits and left the taxpayers holding the bill.
    Taken from Last link(above) …last paragraph.


  56. SO VAT is not being given to the government even though it’s collected at time of purchase? that kinda stops a plan I was hearing that income tax to be abolished and VAT to rise to 25%…. a little drastic I thought but when you think that 50% of the Barbadian workforce (cash business) dodge paying income tax and increase in VAT would be the fairest way to tax everyone fairly…

  57. @GI joe
    No buddy..the days of INCREASED TAXATION….direct or indirect are quickly nearing an end….We ARE OVER TAXED OVER HERE AS IS..

  58. @ GI Joe…..On abolishing income tax in pref. 25% vat
    That would never happen ..a bird in hand philosophy..check this at present Govt gets on average 20+17.5%=37.5% from each working individual…while they may not get on ALL individuals…the 17.5% on sales items make up difference on all purchases and services ..working or not..I doubt a 25% flat ..abolishing Income tax would be opted instead.

  59. @ David
    Govt has to support a wages debt of close to $900 million monthly, being the largest single expenditure…one would have to check Central Bank statistics to present a laudable guestimate…From what we are seeing though, a continuous deficit, what we collect is far out paced by expenditure…the Ministry of finance would be so privileged to have most accurate figures.Central Bank figs are now available online.

    This arrest of Mr.Holder registered gun dealer sound strange….how would they know what he had ….? Sounds fishy.

  60. @ !
    I revamped this Article just for you …..because it seems that you are a newcomer…..have a read and absorb some views.

  61. @ ! ………..a precis’ in the interest of time

    The article sought to express disappointment in our leaders for looking for excuses.For to long now we have been hearing this one fit all call. (Global Economies)
    All that was intended was a request to dig deeper and not to accept mediocrity .When the late Errol Walton Barrow moved us towards independence, the road certainly could not have been easy.At that time of high racial tensions and an entrenched plantation mentality,there were times when even he probably doubted it could be done.Only through tenacity and a willingness to look for answers could he have achieve what he did.A real leader..said to be way ahead of his time.

    Since the another associated article ; West Minister or West-Sinister, Where have all the Great Men Gone.

    Not enough is being done !…people giving up too ez….becoming millionaires too OVERNIGHT..da is why.

  62. @ OOB “When the late Errol Walton Barrow moved us towards independence, the road certainly could not have been easy.At that time of high racial tensions and an entrenched plantation mentality,there were times when even he probably doubted it could be done.”

    That is simply a cop-out strategy. The government could have simply ensured legal provisions that would have otherwise enabled the Black Majority to be on a similar economic footing as the plutocratic White minority. What you speak of is the government’s AVOIDANCE to establish DOMESTIC INDUSTRY (ie. through AGRICULTURE, FISHERIES, and TECH MANUFACTURING, RENEWABLE ENERGY, PHARMACEUTICALS, TELECOMMUNICATIONS, and DOMESTIC BRAND/OWNED TOURISM as well as building DOMESTIC OWNED FINANCE). Had we a government that were much more stern and keen on developing the nation along the DOMESTIC platform, BARBADOS COULD HAVE ALREADY ACHIEVED A STANDARD OF LIVING RELATIVE TO THAT ICELAND, NEW ZEALAND, & LUXEMBOURG!

    Instead, we’ve been “blessed” with idiot politicians who market MEDIOCRITY as the nation’s brand by allowing FOREIGN CORPORATIONS to compete within Bim’s local economy UNREGULATED! Without having any kind of government facilitation/presence within the economy, the nation has become over flooded with FOREIGN OWNED BRANDS and CORPORATIONS that STAMP OUT VIRTUALLY ALL DOMESTIC brands by out competing them or through acquisition. Bim has no real DOMESTIC BRAND to be speak of. We are not productive, thus we cannot have any “Real” GDP growth unless we become a PRODUCTIVE ECONOMY and have more BAJAN owned businesses competing.

    THAT is how Malta, Luxembourg, and Iceland are doing it. And they started small. They were ALL poor but made the appropriate sacrifices in order to be as competitive as they are today! But Bajans are TOO DAMNED LAZY, STUBBORN, AND SELFISH IN ORDER TO MAKE MOVES AND MAKE THE RIGHT SACRIFICES FOR OUR COUNTRY’S COLLECTIVE FUTURE! SO instead of having our citizens aspire to work for FOREIGN ENTITIES and in FOREIGN COUNTRIES, Bim’s so called “government” has COMPLETELY NEGLECTED her growth and development by SELLING OUT TO THE FOREIGN DOLLAR.

    Bajans have developed a cultural mindset of selling themselves short by always valuing the FOREIGN BRAND OVER THE DOMESTIC BRAND! We have learned to SELL OURSELVES SHORT, and would rather BLIND ourselves with FRIVOLOUS “DEVELOPMENT” PROJECTS and come up with FANCIFUL ways to EXPLAIN AWAY the need for there to be a NATIONAL EFFORT in order to ensure that BAJANS WORK TOWARDS ESTABLISHING THE NATION’S INDUSTRY! Rather, we’ve been following a model in which we have SOLD OUT to foreign industries. We boast a sizable level of “Scholars” of high degree, yet WHAT HAVE THOSE SCHOLARS DONE TO HELP ESTABLISH BARBADOS AS A COMPETITVE ECONOMY THAT IS A SANCTUARY FOR BAJANS???!!! NOW ASK THE SAME QUESTION OF OUR GOVERNMENT; AND ALL YOU GET IS ZILCH! WHY??!! BECAUSE THE EMPHASIS HAS BEEN CENTERED ON “CATERING” TO THE FOREIGNER AND NOT THE NATION!!!

    Explain that OOB!

  63. Brudda Bim ..I hear you Breds.
    We in a possum fa real……don’t know if EWB words can help us now either.
    Sold to the highest bidder…..and yes you are right….we let the horse out the stable…the question is how to lead it back in .?

  64. What you petitioning Brudda Bim…….people in high place stop wanna thiefin nah ? Or Trinidad n TaBADOES give we back we assets nah ? Either wat de BUGGAS go say NO….

  65. For those overseas the BST conglomerate used toown the largest chump of small companies in Barbados….. is now owned by a Trinidadian concern. I don’t know about you Brudda Bim but that is reason for concern.

  66. Why don’t the DLP give up on its campaign of blaming everything on Global Economies for its lethargy. Bajan are growing tired of it now. Everything during its 5 year term has been blamed on the Global
    Economies …
    THAT WAS BACK IN JANUARY……DEM took no notice of the pleas to curtail wastage and spend but continued to blame and blame .. and whine and whine…Not doing a pang to change directions nor look for solutions….AND SO….today.. we are down graded to JUNK BONDS status…….But you know what we hear a similar cry..”NO BIG THING”….”DON”T PAY S & P NOR MOODY ANY MIND”……Sounds of ignorance again right?…..They can’t blame this one on Global Economies so they blame it on the BLP…..BTW WE HEAR THEY WANT ANOTHER TERM TOO……THEM MADDIE? …..TO DO WHAT MAY I ASK ?…. to blame who next time ???

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