Budget Confusion

A feature of the Stuart led government and the Thompson before, it has had an issue with effectively implementing policy measures promoted in several budgets since taking office. Many of the government’s missteps have been harshly critiqued by BU and other media sources. One does not need to be reminded about the cellphone tax, solid waste tax and .07 or .007 embarrassment, Four Seasons, CLICO, Hyatt and others.

It must concern Barbadians that what many promoted as one of the most important ‘budgets’ in our history has resulted in the minister of finance agreeing to revisit key measures announced less than a month ago. One would have assumed given the seriousness of the economic state of Barbados the minister of finance should have exhaustively collaborated with stakeholders in civil society before sharing with the public. All advice delivered freely to the government has been to beef-up how it communicates with the public for the obvious reasons.

The decision to revisit how the the National Social Responsibility Levy (NSRL) is to be implemented as well as the foreign exchange tax exposes an unfathomable level of incompetence and indiscipline in how the affairs of state is being managed. There is hardly a need for BU to be prolix by detailing the the lack of leadership in a time of crisis. Needless to say the script of the DLP surrogates will have to be defended after they have vigorously defended the recent budget, a measure of our political measurement and or the downside of adversarial politics.

There is another observation that bears a mention.

The idiotic attack by Parliamentary Jepter Ince on the private sector of Barbados. Even if he is on the right track in his observation, to loudly proclaim his position in the public space was too trumplike at a time when conciliatory and measured tones are prerequisites to inspiring a nation suffering from ‘fatigue’. Ince’s position forces the query the role of the social partnership in addressing the concerns raised by Ince. Just like there is a need for a strong economy to support a healthy society so too a harmonious relationship is required between the private and public sectors for the country to be well functioning. As is the norm minister Donville Inniss was quick to disassociate himself from the garrulous approach of Ince although he is guilty of it from time to time. In fact an aggressive tone has been a feature of this government.

BU continues to be flummoxed by the antics of this government.

In deus nos fides !

 

76 comments

  • @ David

    Sinckler also expressed similar sentiments about the private.

    On Thursday, April 16, 2016, while delivering the third annual lecture of the Financial Services Commission at the Grande Salle, Sinckler referred to some private sector businesses as “Government departments in disguise, operating as private entities, living off of the very public purse that the same statutory corporations are drawing on, as they say, ‘like vultures on the body politic of Barbados.”

    Although some may say Sinckler’s and Ince’s comments are true, owners of these private sector agencies cannot negotiate, facilitate or process government contracts on their own. There has to be INTERVENTION from politicians and/or government officials.

    Politicians CIRCUMVENT the tendering process to facilitate the awarding of contracts to their friends, party supporters and certain business owners that provide goods and services.

    I remember a certain government entity contracted the accounting firm Brian F. Griffith & Co. Ltd. and paid the owners thousands of dollars to provide auditing services. This act drew some very harsh criticism from the Auditor General.

    It is called SHARING the “fatted calf” among party supporters.

    Recall Thompson’s famous “fatted calf speech re: “Under no circumstances, however, we will kill the fatted calf to welcome any such persons back into our fold. We have learnt our lesson as a party. The fatted calf, under David Thompson’s watch, will be slaughtered and shared among those of you who have stood this course…”

    POLITICIANS are responsible for creating the “environment conditions” conducive to these “beneficial symbiotic relationships.”

    Like

  • ***** “environmental conditions”

    Like

  • The financial problems of Barbados must be laid solely at the feet of the Permanent Secretaries.When PAC summoned the three ministers and through their lawyer they gave the PAC chairwoman the middle finger,they were correct.If the PAC chair knew her oats,she would do the right thing…..grill the PS ‘s.They are the lawful accounting officers.And don’t tell me the chair dont know this.When it comes to impressions all politicians are the same.They always wear their political marketing hats,always mindful of denying the citizen representative governance but have an eye on maintaining their popularity,influence,power base and ultimately their seat.Grandstanding is their forte.Chopsutters all.Hoes and pimps all.

    Like

  • Bernard Codrington.

    Good piece ,David.

    Now you will appreciate my advice of traveling the high road. If one responds to or attacks the persons, who are merely messengers, there is always the downside risk that the real issues will be lost.
    I did warn that the budget would have turned out to be an opportunity for the Opposition to start the campaign process and so it was.
    The administration,which appeared to want to outguess the IMF, came with another austere budget. No attention was paid to the principles of Public Finance 101. Tax measures must pay attention to collectibility and simplicity.

    Expenditure taxes must insure that there is income to spend. No income ,no spending ,no tax revenue.

    Closing a Fiscal Deficit has a multiplier effect. It either leads to an increase in income or a reduction in income. Did any technocrat have the opportunity to calculate these?

    Like

  • Frustrated Businessman: enact Facilitation Martial Law!

    It seems the DLP gov’t has contrary and/or conflicted views.

    On one hand, they claim that public spending is the only thing keeping the private sector in business.

    On the other hand, they have bankrupted this country to continue to support unprofitable statutory corporations which compete unfairly against the same private sector to supply private sector goods and services.

    Which is it Fools?

    They have clearly failed at every private sector effort they have made (housing, roads, office buildings, road works, health, etc.), even if the bribe-payers got their cut.

    Like

  • Bernard Codrington.

    @ FBA 9 :33 AM

    Yes it lacked internal consistency. There was no need to rush. In the age of computer technology a few simulation exercises would have highlighted these.

    Like

  • @Mr Blogmaster, re your remark that “The idiotic attack by Parliamentary Jepter Ince on the private sector of Barbados…. to loudly proclaim his position in the public space was too trumplike at a time when conciliatory and measured tones are prerequisites …”

    We all must accept that the dicta ‘all PR is good for a politician public acclaim’…generally stated of of course as ‘there’s no such thing as bad publicity.”

    Many professionals would dismiss that but many politicians live and die by that mantra… remember Trump is president.

    Ince is living it too. Here we are talking about him and undoubtedly Theophalus and Janette Clarke-Bajan will enjoy the soundbite about the big-bad private businesses. He is playing the game well….just another scheming pol who plays the ventriloquist role superbly…

    …The point of course is that WE are the dummy!

    @Bernard at 9:13 AM re “…Closing a Fiscal Deficit has a multiplier effect. It either leads to an increase in income or a reduction in income. Did any technocrat have the opportunity to calculate these?”

    Does anyone do that anymore…i.e run the numbers when pols pontificate on tax increases/decreases?

    That should be as automatic as putting one foot before the other in order to walk.

    Invariably a tax proposal from a minster will highlight expected revenue etc but an independent governmental or NGO analysis of these numbers is the key.

    The accounting firms and some professional do their thing but it is amazing that we don’t often get a robust national debate on these analysis and the related issues David raised.

    He highlights important points as you noted.

    Like

  • @David re your remark that “The idiotic attack by Parliamentary Jepter Ince on the private sector of Barbados…. to loudly proclaim his position in the public space was too trumplike at a time when conciliatory and measured tones are prerequisites …”

    We all must accept that the dicta ‘all PR is good for a politician public acclaim’…generally stated of of course as ‘there’s no such thing as bad publicity.”

    Many professionals would dismiss that but many politicians live and die by that mantra… remember Trump is president.

    Ince is living it too. Here we are talking about him and undoubtedly Theophalus and Janette Clarke-Bajan will enjoy the soundbite about the big-bad private businesses. He is playing the game well….just another scheming pol who plays the ventriloquist role superbly…

    …The point of course is that WE are the dummy!

    @Bernard at 9:13 AM re “…Closing a Fiscal Deficit has a multiplier effect. It either leads to an increase in income or a reduction in income. Did any technocrat have the opportunity to calculate these?”

    Does anyone do that anymore…i.e run the numbers when pols pontificate on tax increases/decreases?

    That should be as automatic as putting one foot before the other in order to walk.

    Invariably a tax proposal from a minster will highlight expected revenue etc but an independent governmental or NGO analysis of these numbers is the key.

    The accounting firms and some professional do their thing but it is amazing that we don’t often get a robust national debate on these analysis and the related issues David raised.

    The blogmaster highlights important points as you noted.

    Like

  • Frustrated Businessman: enact Facilitation Martial Law!

    de pedantic Dribbler June 21, 2017 at 10:14 AM #

    @Bernard at 9:13 AM re “…Closing a Fiscal Deficit has a multiplier effect. It either leads to an increase in income or a reduction in income. Did any technocrat have the opportunity to calculate these?”

    Does anyone do that anymore…i.e run the numbers when pols pontificate on tax increases/decreases?

    That should be as automatic as putting one foot before the other in order to walk.

    Invariably a tax proposal from a minster will highlight expected revenue etc but an independent governmental or NGO analysis of these numbers is the key.

    The accounting firms and some professional do their thing but it is amazing that we don’t often get a robust national debate on these analysis and the related issues David raised.

    Or you could do what Chastanet did and hire professionals to complete a tax audit and make holistic recommendations, which, in one fell swoop, not only balances gov’t books but instils confidence in the private sector and foreign investors that political jokers are not destroying the economy with their bumbling.

    Like

  • millertheanunnaki

    @ GabrielJune 21, 2017 at 8:42 AM
    “The financial problems of Barbados must be laid solely at the feet of the Permanent Secretaries.When PAC summoned the three ministers and through their lawyer they gave the PAC chairwoman the middle finger,they were correct,,,”

    Well said Gabriel, couldn’t agree with you more!
    A major faux pas by the Chair of the PAC.

    The Financial Administration & Audit Act puts the responsibility for the ‘proper’ management of the government’s financial resources squarely on the shoulders of the chief accounting officer(s), namely Permanent Secretaries, Heads of Departments and, in the case of statutory bodies funded by the Treasury, Chief Executive Officers or whatever title so assumed.

    Calling the political directorate to account for acts of financial mismanagement was just a means of letting their ‘colleagues’ in the manipulation of the minds of the masses off the hook by giving them a get-out-of-jail card in the game of two-party political monopoly.

    By putting pressure on the chief accounting officers we would soon see the depth of political interference that takes place when it comes to money matters.

    These chief accounting officers ought to be called to account for the massive wastage of scarce resources funded by the taxpayers unless they have covered their administrative asses by having these unofficial (and more often unlawful) instructions on financial disbursements from the political masters in black and white.

    The whole fiasco is just a pappy show to play a game of one-upmanship in the human blood called partisan politics.

    Like

  • millertheanunnaki

    @ millertheanunnaki June 21, 2017 at 10:43 AM

    “The whole fiasco is just a pappy show to play a game of one-upmanship in the human blood called partisan politics.”

    The above should read:
    ‘The whole fiasco is just a pappy show to play a game of one-upmanship in the imaginary human blood sport called partisan politics’.

    Like

  • @Gabriel

    I agreed with you , all problems in Barbados today are caused by permanent secretaries , who sold their integrity to government ministers, I asked on BU, why the PS getting a free pass ?

    Like

  • millertheanunnaki

    @ David BU:

    “The idiotic attack by Parliamentary Jepter Ince on the private sector of Barbados. Even if he is on the right track in his observation, to loudly proclaim his position in the public space was too trumplike at a time when conciliatory and measured tones are prerequisites to inspiring a nation suffering from ‘fatigue’.

    Jester Ince could never be “on the right track” when it comes to calling the Private Sector a bunch of “parasites”.

    It is the government which is the parasite, albeit useful in some vital functions.

    Parasites feed off others especially its productive host(s) and that is why it imposes taxation and other mandatory levies and charges on the private sector to fund its existence.

    The Government might contribute to the creation of an environment to wealth creation and income generation but it is the players in the private sector who actually produce the wealth and income from which taxes are paid by consumers with the private sector being the point-of-sale tax collectors.

    A greedy private sector will always find many hosts in the public sector as the larvae of corruption pupate within the hand-to-mouth political and top bureaucratic classes.

    Like

  • well,well,well………

    The cat is in the pigeon house, expect massive layoffs.
    IMF in town
    A TEAM FROM the Washington-based International Monetary Fund (IMF) is in Barbados.And yesterday, before Minister of Finance Chris Sinckler met with top officials…
    nationnews.com
    http://www.nationnews.com/nationnews/news/97966/imf-town

    Like

  • It seems FB will get his wish, the Unions in Barbados have decided to flex its muscle.

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  • @Vincent

    We should ask Bernard if it is protocol for the government not to share with Barbadians, the people they serve, the nature of the IMF visit in Barbados.

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  • David

    Chuckle…..Bernard has a lot of questions to answer.

    I hope that the Unions, now they have joined hands, will hold their nerve and start the shut down of the country untill this govt flies right.

    Like

  • Like

  • Barbados attains "largely compliant" ranking by OECD’s Global Forum

     

    Barbados sees YOY growth in licensed captive insurance companies

    BRIDGETOWN, Barbados, June 21, 2017 /CNW/ – Barbados was recognized by the OECD’s Global Forum as a transparent and highly cooperative jurisdiction – receiving the ranking of "largely compliant" during 2016. The OECD’s Global Forum is the highest global authority on transparency and the exchange of information for tax purposes. For context regarding Barbados’ "largely compliant" ranking by the OECD’s Global Forum, other nations with the same "largely compliant" ranking include: Austria, Germany, Hong Kong, the Netherlands, the United Kingdom and the United States.

    Additionally, Barbados recorded a net addition of 11 captive insurance entities for the fiscal year ended March 2017 – raising its total from 235 captives in 2015/2016 to 246 captives in 2016/2017. Though Barbados serves a truly international market, approximately 81% of the companies originated from either Canada or the USA.

    "As evidenced by the steady growth in new captive insurance registrations, it is clear that Barbados retains its status as a preferred jurisdiction in which to conduct international business," said Senator, the Honorable Darcy Boyce, Minister in the Office of the Prime Minister with responsibility for Energy, Immigration, Telecommunication and Invest Barbados.  "The reasons for such growth are clear. Barbados has long been recognised for its network of double taxation agreements, transparency, strong regulatory environment, forward thinking legislation, world-class infrastructure, a well-educated labour force and its ability to foster international trade."

    "We will maintain our focus on the enhancement of Barbados’ ability to legally and ethically facilitate international trade – trade that brings prosperity to all nations that choose to participate in the global economy.  Importantly too, we will continue to encourage the creation of businesses of substance," affirmed Senator Boyce.                                     

    About Invest Barbados

    Invest Barbados (IB) is an economic development agency of the government of Barbados. IB is responsible for attracting, winning and sustaining foreign direct investment and international business for Barbados. The corporation is also responsible for helping to develop and manage the Barbados international business brand.

    About Barbados’ international business sector

    Barbados’ international business sector contributes approximately 10% to the nation’s GDP and is comprised of approximately 4,000 entities. Significant vertical markets within the international business sector include: financial services, niche manufacturing and information and communications technologies.

    SOURCE Invest Barbados

    For further information: Media contact: Rob Ireland, Claritas Communications Inc., 416-301-9585, Rob.Ireland@Claritas-inc.com

    Like

  • David June 21, 2017 at 1:15 PM #

    Chuckle…..very interesting…….that informative quote by Boyce says it all.

    Like

  • Bernard Codrington.

    @ David @ 1:02 PM
    @ Vincent at 1: 06 PM

    The visit of an IMF team is probably part of the usual annual exercise. They have, in the recent past,come twice per year. Barbados is a member of the IMF.

    Vincent , I do not mind being put in the Political Class; but being made answerable for every eventuality is a bit excessive, do you not think?

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  • Bernard Codrington.

    It is heartening to see that we have maintained our status as a reliable financial centre in offshore insurance sub-sector. Let us continue to make the necessary adjustments in the other areas of the economy . In the final analysis ,there is only one Barbados.

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  • Thanks Bernard.

    Based on your reasonable explanation it begs the question why a ‘no comment’ would have been offered by the IMF and to day (subject to correction) the MoF has made no comment as well?

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  • Bernard Codrington.

    In the past they came in and the press did not ask any questions. They are just doing their job. They are not politicians. Their responsibility is to their BOD and the GOB. It is not to report to the press. The GOB , as in the past,will OK the release of their evaluation to the public in due course.

    I believe the same procedure will be followed after this visit.

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  • @Bernard

    Please understand the context, Barbados is currently gripped in the jaws of an economic crisis. There is talk (a lot) about entering an IMF program, any visit to the island ill not be perceived as routine in the prevailing environment. We are not asking for details of the discussions at this point, all we ask if for the MoF to confirm what you stated, that it is a routine visit. It is called effective communication with a public it serves.

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  • Bernard

    Chuckle…..I have not and will not hold you answerable for every eventuality of the political class.

    David

    The MoF is due to give a press conference anytime now according to VoB news,as it was scheduled for 3.30 pm but he is busy with meetings…..manufacturers and hoteliers…..lets see how this political game will play itself out.

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  • Well Well & Consequences Observing Blogger

    IMF is on the island, listen out for Sinckler’s lies.

    Like

  • are-we-there-yet

    Vincent

    Trembling……..Your 4:35 pm post is ominous!

    As a conspiracy theorist I fear the worst but it may actually turn out to be the best in the circumstances.

    Like

  • Bernard Codrington.

    @ David@ 4;15PM

    After 9 years and you are expecting a different form of behaviour. I thought I was the only optimist on this BU blog. Welcome to the Club.

    Like

  • Based on Sinckler’s press conference this evening he issued clarification statement to the BPS groups, rates were not changed. Next play is the union it seems. Never a dull movement.

    Like

  • Canadian borrowing down

    http://www.cbc.ca/news/business/royal-bank-layoffs-1.4170960

    James Shanahan, a senior equity research analyst covering the financial services industry for Edward Jones, said Canadian banks are responding to a difficult revenue and loan-growth environment.

    “Consumers and businesses in Canada just simply aren’t borrowing as much as they had in previous years,” he said, adding that with slowing loan growth comes slowing growth in revenue and earnings.

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  • wait wuh happen to the govt lynch mob . they all gone quiet . lottta noise today but mout gone shut tight after sinckler spoke his peace wuh loss

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  • Bernard Codrington.

    Hants at 7:26 PM

    The countries of the Western Hemisphere are not yet out of the Financial Crisis. Perhaps it is now Canada’s turn. I hope there will not be a negative fallout for Barbados.

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  • yuh see a year in politics can be condense into a day and that is what happen after the private sector took stonewalling to another level and Sinckler took the bait and return the favour by pelting stones at them

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  • The fact that Sinckler and the government has to amend the proposal to exclude VAT rated goods from being affected by the NSRL gives an insight into the ‘thinking’. Bear in mind VAT rated goods are meant to cater to the vulnerable in society.

    Arthur has been scathing in his critique of the budget as well.

    Confusion!

    Like

  • Anyone who takes time to listen to Jeptar Ince would immediately conclude the man is an idiot. Even “spell check” alerts you that the spelling of the name may be incorrect and suggests you use “Jester” instead.

    Perhaps Jester was “tight” or “had in a few grogs” when he launched his scathing attack on the local business community, also describing them as “a parasitic plant in the bosom of Government.”

    According to Owen Arthur: “It is the kind of comment that you expect a fellow to make when he is ‘tight’ and got in some grogs.”

    “However, Arthur said he was not prepared to go any further with his criticisms of Ince at this stage for fear of legal repercussions.”

    “I don’t like to respond to Mr. Ince because he TALKS so much NONSENSE and I might get ARRESTED for CHILD ABUSE,” the former prime minister said jokingly.”

    So, Barbados’ parliament has two “court jesters”………….. Senator Jester Ince and Minister Jester Kellman.

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  • Arthur speaks to his area of expertise lol

    “According to Owen Arthur: “It is the kind of comment that you expect a fellow to make when he is ‘tight’ and got in some grogs.”

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  • Was Owen tight when he “intervened” to help COW ?…..”It took three years and an intervention by former Prime Minister Owen Arthur to get Port St Charles passed,”

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  • Arthur should know about high and low levels of intoxication. That is a topic he is accustomed and well acquainted
    He takes an insulting approach towards Ince to speak on an issue that needs to be fully discuss in every sense of the word
    What is most alarming about Owens comments is that what Ince says most people would generally agree and they all cant be drunk
    Maybe it is Owen who should temper his language

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  • BLP and DLP governments haven given government contracts to many businesses in Barbados.

    Whether it was cowbizzy or jerkaloney or wrayside the result is the same.

    The Black Bajan majority has continuously enriched the minorites.

    Like

  • Jepter must have been ‘tight’, suggests Arthur | Barbados Today
    Jepter must have been ‘tight’, suggests Arthur
    Former Prime Minister Owen Arthur has suggested that Government Senator Jepter Ince could not have been fully in charge of his faculties last week when he described the private sector as parasites. In fact, the independent representative…
    barbadostoday.bb
    https://www.barbadostoday.bb/2017/06/21/jepter-must-have-been-tight-suggests-arthur/

    Like

  • Arthur accuses Sinckler of making a mess | Barbados Today
    Arthur accuses Sinckler of making a mess
    Minister of Finance Chris Sinckler is now totally out of his depth in terms of his leadership of the economy. This was the strong suggestion made today by one his predecessors – former Prime Minister Owen Arthur – who accused Sinckler of…
    barbadostoday.bb
    https://www.barbadostoday.bb/2017/06/21/arthur-accuses-sinckler-of-making-a-mess/

    Like

  • David

    From all accounts we are back at square one.

    I agree with you…..all over to the Unions now to bring this bunch in line.

    Like

  • Steupss @ Vincent
    You still wid dat shiite??!!
    What union what??!!

    Who in the union is any more sensible than Jester, kellman or See-more?
    …you looking for jobby to save you from shiite???

    …but then again, you have no choice but to look to jobby…. having foolishly discarded (in your mind) the ONLY hope for any real salvation.. Poor fella…You must be in one state of confusion.
    LOL ha ha ha
    There is none so lost ….as a Vincent who will not see….

    Meanwhile…
    Yea… though Bushie walks through the valley of the shadow of Stinkliar in Brassbados…
    ….he shall fear no tax, because…
    BBE anointest Bushie’s head with oil…
    The bushman’s cup runneth over…
    Surely goodness and mercy will follow Bushie …no matter what shiite the political clowns do bout here….

    Open yuh eyes and LOOK Vincie boy…. yuh building yuh hopes on sand….when you done KNOW where the solid rock is located…..

    Like

  • millertheanunnaki

    @ Vincent Haynes June 22, 2017 at 7:55 AM

    What is Arthur expecting from Stinkliar at this stage of the game?

    What is he expecting from a dumb jackass trying to hump a mare other than an arrogantly dumb and stupidly stubborn mule?

    Didn’t OSA predict that Barbados would be facing a politically-created economic tsunami in the coming months should that moron continue on the path of taxing the people out of their economic blood, sweat and tears?

    Stinkliar is not the boy with his finger in the hole of the dyke but the cannon ball that caused it in the first place.

    Weren’t the people given similar assurances of fiscal stability and economic recovery going back to his own homegrown Medium term Stabilization & Recovery 19 months programme?
    Where are the people’s tax refunds that were stuffed into envelopes two years ago?

    Now who are the ‘real’ crooked lying parasites?

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  • Busie

    You may have a point, only time will tell…….looking for divine intervention is not however on the cards.

    Like

  • Miller

    I disagree with OSA wishing to maintain the status quo……we need to shut down the country……feel some pain and move forward to rebuild our country.

    OSA was expecting nothing from the MoF……we know why this country is in this state,we know what has to happen and only the Unions can force this govt to fly right.

    Like

  • There is a housing bubble in Canada – mainly Vancouver and Toronto – the top five banks are awash with cash and do not know what to do with it: fuel the bubble more, return cash to shareholders, or invest overseas? Canada missed out on the 2008 global crisis because the banks were too small to punch in the big league. They still are.

    Like

  • millertheanunnaki

    @ Vincent Haynes June 22, 2017 at 10:16

    OSA will support nothing to hasten the ascension of his bête noir to power.

    OSA primary concern is not the economic salvation of Barbados but to quench a burning desire of vindictiveness.

    He was rather strident in his call for the firing of the Guv of CBB, why not now the MoF.

    If he were that concerned about the current economic state of Barbados he would be calling for the immediate resignation of the MoF and by extension his boss who continues to make him (OSA) look like a ‘pissy’ boy in the yard and the architect of all the economic problems and ruin facing Bim today.

    Like

  • Tom Adams’ son is thinking of returning to Barbados. Is this a storm cloud gathering over Mia and the BLP?

    Like

  • @Hal

    What does punching in the big league mean? What is your definition? Do you mean playing in the derivatives space?

    Like

  • No. I mean no Canadian bank has been able to play in the big money markets next to JP Morgan, Goldman Sachs, HSBC, Deutsche, etc. The Canadian banks ‘missed’ the 2008 crisis, not because of skills, but because they were not on the SPV and SIV markets.
    The market came to a halt in Sept 2008 when the big banks stopped lending to each other because they debt was off balance sheet. It4 was a mainly US market, with a few larger European layers joining in, mainly to protect themselves. They at now paying a price.
    I know the Canadians like o say how little the crisis affected them, but it is a half truth. The Australians can say the same thing.

    Like

  • Hants would probably confirm it however the housing bubble in Canada is in Ontario,particularly Toronto and BC,particularly Vancouver probably Chinese immigrants or wealthy chinese purchasing for their kids attending varsity.A recent report in the Star puts the banks’ position in perspective with RBC the biggest player in Canada planning to shed 450 jobs in Greater Toronto

    https://www.thestar.com/business/2017/06/21/rbc-to-cut-about-450-jobs-from-head-office-locations-in-gta.html

    Like

  • @Hal

    Have you answered the question? What makes JP Morgan and the others big league players in your judgement, market size, complexity of products, tier capital? What?

    We do not care about Australian banks, we care about the health of Canadians banks because they own the markets in many of the Caribbean islands including Barbados.

    Like

  • Hal
    Interesting about Adams returning to the fray.I have said here before that he would be one of the drawing cards to bring out those stay at home voters.He has a solid background in Finance and Cinty would most likely gladly yield the St Thomas seat to him in exchange for a plum ambassadorship or some such honour.If Mia wants to be PM she would find room in the inn for Rawdon.Reminds me of Tom.From 1966 to 71,he remained out of the political limelight until Barrow brought the Constitutional changes legislation and Tom Lazarus like exploded on the CBC TV screen and Barbados was never the same since.Tom a Colossus among other lesser thought- of- giants.Interesting information,and if true is likely to destroy the Dems forever.When Tom burst on the scene Lammy Craig,on Brasstacks quoted a few lines from a well known hymn….”O loving wisdom of our God;When all was sin and shame;A second Adam to the fight;And to the rescue came”. It looks like history is about to repeat itself.The Dem Bernstein celebrated when he heard Tom had passed on…in his glee he said….’we now got a chance to get back the government’…No doubt the Bees are singing from the very same hymn sheet…..glory,glory,hallelujah.

    Like

  • @Hal

    What is the source of your Rawdon revelation?

    Like

  • David,
    Just investment banking, this is what investment banks do. Size is determined by capital under management and the investment vehicles. JP Morgan, for example, created credit swaps, now valued at about US$700trn.
    The big five Canadians can play in that market too if they want, but it is high risk, if you blink you can be taken out. It is a matter for their boardrooms.
    But remember, AIG was a AAA-rated company, the biggest insurance company in the world, and Exxon was also AAA-rated. The derivatives market is an unregulated dark hole.
    By the way, you dismiss Australian banks, but international wholesale banking has no boundaries. Your mortgage may be owned by the Australians, although as far as you are concerned you are still paying to your local lender.
    As Chuck Prince of Citi said just before the banking crash, it is musical chairs, you must keep dancing until the music stops.

    Like

  • David,
    It came from the Social Accountability and Education in Barbados forum. He is coming for a holiday in July before, it appears, finally making up his mind. Isn’t he working in France as a fund manager.

    Like

  • Dean Emil Straker – Rawdon consider returning to Barbados.

    Rawdon Adams – Coming in July…holiday first tho.

    Like

  • Note….Rawdon in the past has connected with MAM.

    Like

  • BUSINESS TODAY | Barbados TODAY

    Officials are heralding the US$200 million Wyndham Sam Lord’s Castle Resort development as a game changer for the island’s bread and butter tourism product.
    Minister of Finance Chris Sinckler is not about to reserve any percentage of the renewable energy sector for local investors only. and more in our Business TODAY

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  • Thanks Hal, missed that post although it is impossible to cover all.

    Rawdon is a good man and intelligent too. He would add a lot of value to the Barbados political space.

    Like

  • David,
    Must be genetic?

    Like

  • @Hal

    You want to start the old debate genetic over learned behavior? Some people appear to be better political animals than others. At the root is being able to mobilize and inspire the team and people at large. A trait sadly lacking in the local landscape. Many would glady give Rawdon a chance. We cannot do any worse.

    Like

  • Not at all, but if you want to go ahead. I just do not believe that Barbados is waiting to be rescued by an Adams – however nice and bright..

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  • Even while we understand that historically the budget is a secret document until delivered we do not understand why the Minister did not consult with key stake holders, including the worker’s unions BEFORE the budget was prepared. I would have thought that the Minister, the Director of Finance and Planning, the Cabinet, and the Central Bank would have assisted the Minister with the data, and the interpretation of that data needed to prepare an excellent budget.

    Why talk to these people afterwards, when it could have been so much more valuable to talk with them before.

    Like

  • It is not in the DNA to consult with stakeholders in a meaningful way. The reality though is that the blow back to the recent budget has been significant and with a general election on the horizon this has to be ‘managed’. This is why these stakeholder meetings are important.

    Like

  • @Gabriel
    .A recent report in the Star puts the banks’ position in perspective with RBC the biggest player in Canada planning to shed 450 jobs in Greater Toronto
    ++++++++++
    What perspective is that? This is akin to reporting water is wet. Canadian banks have been laying off employees for years, Commerce laid off employees in the 80’s when Massey Ferguson ran into trouble and it was its lender of record, it laid off employees when Olympia and York went belly up, Canadian Banks lived through the high interest rate debacle of the ‘80’s and laid off employees, they were all impacted when Enron folded and CIBC (again) settled with angry investors for 2.4 billion US (that’s billion with a “B”) after it was accused of financial improprieties with respect to Enron (guess who paid with their jobs?) . Recently RBC was caught exporting jobs to India and requesting that their local staff train the folks who were taking over their jobs. It only relented when the news broke in the media and the Chairman did a public mea culpa. Perhaps with these latest “layoffs” it is achieving its goal.

    Despite the above the banks are making money hand over fist, formerly it was big news if a bank made a billion dollars annually now it is de rigueur that they will exceed that amount quarterly; RBC and TD are making over 2 billion a quarter. Bank stocks in Canada are considered “blue chip” and banks haven’t missed a dividend payment in my limited memory, they are considered must have for widows and orphans; invest and forget and laugh all the way to the bank.

    In high school, I remember a teacher explaining that said you shouldn’t marry for money but marry where the money is, I’ve parlayed that advice to invest “where the money is”.

    Lastly here is some food for thought, every year banks make provision for restructuring in their annual reports which should be clear warning signals for the uninitiated.

    Like

  • What is the role of the “Acting General Manager, Sam Lords Castle development Project”? What is Bti’s role?

    Like

  • @enuff

    A Phillips invoked in the project has challenged a position you have tabled about town planning status. He indicated that TPD approval was in place under the Clico plan to build on the same spot and the government has submitted an amendment which is not unusual in the way request for construction changes are done.

    Like

  • A recent report in the Star puts the banks’ position in perspective with RBC the biggest player in Canada planning to shed 450 jobs in Greater Toronto

    And we ain’t seen nothing yet.

    Automation’s Destruction of Jobs: You Ain’t Seen Nothing Yet

    The oft-repeated fantasy is that every new wave of technological innovation creates more jobs than it destroys. Not this time: the total number of full-time jobs has stagnated for years, and most of the new jobs that have been created are in low-wage, moderate-skill positions that cannot move the productivity needle much: jobs such as those in the retail and restaurant sectors.

    SNIP

    While we can collectively fret over this need to increase productivity and the resulting decline in paid labor, the employers have no choice: it’s innovate/automate or die.

    Even local, state and federal government agencies and contractors, heretofore impervious to soaring labor and overhead costs, are about to feel the urgent need to automate as a survival technique as budgets turn red in rising deficits and taxpayers revolt against ever-higher taxes.

    http://www.washingtonsblog.com/2017/06/automations-destruction-jobs-aint-seen-nothing-yet.html

    Like

  • @Green Monkey

    Interesting article. When one peers at the state of our public sector as one example what can we conclude? Will we ever be competitive with developed economies lowering cost by aggressively integrating technology in their operating models?

    Like

  • @The Blogmaster, is it really a debate about ” genetic over learned behavior” or just the eternal ‘search for the political grail’ to which you allude re: “At the root is being able to mobilize and inspire the team and people at large”.

    I agree with @Hal that Bajans are not waiting to be rescued by “an Adams – however nice and bright” but we do appear to be awaiting some impetus of an inspiring new leader .

    It would be absolutely amazing if young Adams or any other scion of a storied Bajan political family is able to launch themselves anew on the scene and usurp the entrenched who have put in the hard yards over the years.

    Like

  • We await the outcome…….to be or not to be……that is the question……..

    24 mins ·
    Trade unionists meeting with Sinckler
    SEVERAL TRADE UNIONISTS have gathered at Government headquarters on Bay Street, St Michael, for their meeting with Minister of Finance Chris Sinckler.President of…
    nationnews.com
    http://www.nationnews.com/nationnews/news/98033/trade-unionists-meeting-sinckler

    Like

  • William Duguid

    22 June at 21:18 ·

    Statement from

    George Payne MP

    Chairman, Barbados Labour Party

    June 22, 2017

    Once again, the Minister of Finance has demonstrated that he does not know what he is doing.

    He is the only Minister of Finance in the history of Barbados who has habitually conceptualized policy measures, announced them, and thereafter has to go to great lengths to explain them to stakeholders and the public.

    We saw this with the solid waste tax, the cell phone tax, the tipping fee, and the confusion over when all but two of the income tax allowances he took away from hard-working Barbadians were to be deducted.

    What happened this week with the Minister holding consultations with stakeholders to clarify his May 30 Budget was a continuation of his characteristic behaviour of repeatedly getting it wrong, and putting the cart before the horse. It is a pattern of behaviour that demonstrates gross incompetence!

    Whatever credibility the Minister had left after the numerous gaffes he has made in his seven budgets; the 17 downgrades this country has suffered under his watch; and after the spectacular failure of his home-grown fiscal programmes to rejuvenate the economy, has now been totally eliminated by this week’s talks with stakeholders on his Budget, after it was presented.

    No competent leader decides on a path, declares it, then holds talks to listen to how those most impacted by the measures feel. This bastardization of the Budget package after it was presented renders it discredited and unreliable. It shows how wrong the minister got it.

    Worse than that though, is the fact that the Prime Minister agrees with this approach given his statement essentially to that effect. That demonstrates the rot in this Democratic Labour Party Government starts at the very top.

    This entire situation would be laughable if it did not involve the well-being of 260,000 Barbadians.

    But the fact is, the imposition of the increase of the National Social Responsibility Levy to 10 per cent, the two per cent tax on foreign exchange transactions, and the hike in excise taxes on gasoline and diesel will cause the cost of living in Barbados to skyrocket. These taxes will devastate the average Barbadian and lead to more unemployment. Indeed, this has been stated by all of the stakeholders – which is unprecedented. Therefore, notwithstanding the Minister’s belated concession not to have the NSRL applied to the near 300 basic items already included in the VAT-free basket of goods, the reality is that come July 1, the Budget measures will inflict more pain on Barbadians.

    Worse still is the total silence and abandonment of the CLICO Investors and Policyholders . After the 2016 Budget Mr Sinckler apologized to CLICO and BAICO policyholders and promised that the transition and settlement would be completed by the 31st December 2016. Another Budget has come and gone and nothing more has happened and not a single word from the Finance Minister.

    The Barbados Labour Party contends that there is enough evidence to demonstrate the Minister of Finance’s incompetence and inability to manage the economy. This is why there is a lack of confidence in the Barbados economy by local investors, while the only people attracted here in recent years have insisted, and received, massive concessions.

    The Barbados Labour Party is therefore calling on the Prime Minister to fire the failure that is the Minister of Finance, and recall the entire budget.

    If this Government honestly wants a Budget that is in the best interest of Barbados, they need to immediately start a consultation process involving the key stakeholders, the official Opposition, the University of the West Indies and the Caribbean Development Bank.

    We cannot continue with this chop and change, piecemeal approach to the management of the Barbados economy.

    Like

  • David
    If the picture does not come out could you post it.

    A picture says it all…….a thousand words….

    Like

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