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 responses to “Budget Confusion”


  1. @Hal

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


  2. 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.


  3. 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


  4. @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.


  5. 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.


  6. @Hal

    What is the source of your Rawdon revelation?


  7. 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.


  8. 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.


  9. Dean Emil Straker – Rawdon consider returning to Barbados.

    Rawdon Adams – Coming in July…holiday first tho.

  10. Vincent Haynes Avatar

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

  11. Vincent Haynes Avatar

    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
    https://www.facebook.com/BarbadosToday/videos/10154904167188191/


  12. 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.


  13. David,
    Must be genetic?


  14. @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.


  15. 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..


  16. 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.


  17. 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.


  18. @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.


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


  20. @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.


  21. 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


  22. @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?


  23. @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.

  24. Vincent Haynes Avatar
    Vincent Haynes

    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


  25. 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.

  26. Vincent Haynes Avatar
    Vincent Haynes

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

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

    https://www.facebook.com/BarbadosToday/photos/a.293752783190.144768.246784233190/10154908721213191/?type=3

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