Foreign Reserves and FDI Dip

Acting Governor Cleviston Haynes

The Barbadian economy grew by an estimated 1.4% over the first nine months of 2017, as economic growth moderated in the third quarter of the year. Tourism output, which fueled the stronger growth performance over the first half of the year, fell during the third quarter, due to a reduction in the average length-of-stay of visitors and hurricane-related disruptions to tourist arrivals in September.

Central Ban of Barbados Review January – September 2017

77 comments

  • Discipline or devaluation – ‘we all’ have to choose which it’s going to be.

    Like

  • “In addition, Government reduced its capital expenditure over the six-month period by $39.5 million, as CAPITAL TRANSFERS to statutory bodies DECLINED.”

    “Current forecasts are for a moderate recovery in reserves by the end of the current fiscal year, but higher capital inflows, including those associated with PUBLIC SECTOR DIVESTMENT, remain CENTRAL to this outturn.”

    ++++++++++++++++++++

    The above comments are interesting from the perspective that, although this DLP administration has not been discussing “PRIVATIZATION,” they seem to be “secretly and systematically facilitating” the process.

    Firstly, there has been a significant reduction in Grants to Public Institutions.

    Secondly, why would the Central Bank Governor mention “public sector divestment” in his report if it was not under consideration, especially if the capital gains are viewed as an important contributing factor to increasing the reserves?

    But government will have to provide the electorate with an explanation of their divestment policy, because they have been “playing politics” by suggesting privatization leads to unemployment, introduction of fees or increase in fees for goods and services.

    And the Opposition “side stepped” the issue, when BLP members, Jeffrey Bostic and Jerome Walcott distanced themselves and the BLP from their colleague Ryan Straughn’s suggestion of privatizing the Transport Board.

    The “third parties” seem to be staying clear on the issue as well.

    Recently, while addressing the official launch of Global Entrepreneurship Week 2017 (GEW) at the Cave Hill School of Business, Stephen Lashley “recommended one aspect of the rebuilding should include an OVERHAUL of some state-owned FUNDING AGENCIES,” “while adding that there were TOO MANY funding and other developmental agencies OFFERING the SAME SERVICES.”

    Lashley was referring to the fact that The Enterprise Growth Fund, Fund Access (The Barbados Agency for Micro Enterprise Development Ltd.) and Youth Entrepreneurial Scheme, provide similar services.

    Clearly, it is no longer “financially feasible” for tax payers to fund state-owned enterprises (SOE) that provide similar services, such as UDC, RDC and NAB.

    We need to have a serious discussion about the pros and cons of privatization………….. WITHOUT the POLITICAL RHETORIC.

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  • Both BLP & DLP continue to “play politics” with important issues mainly for purposes of political expediency…… and privatization is one such issue.

    When Ryan Straughn mentioned privatizing the Transport Board, his colleagues in the BLP distanced themselves from his comments, while George Pilgrim of the DLP was quick to respond that privatizing public transportation would “put hundreds of hard-working public sector workers on the breadline.”

    Ironically, Stephen Lashley expressed similar sentiments when he said “there were too many funding and other developmental agencies offering the same services” and “one aspect of the rebuilding should include an overhaul of some state-owned funding agencies.”

    “My view is that we perhaps have too many of these agencies doing the same things, and then after doing the same things, asking to collaborate. Some of them exist in the public sector and perhaps it is time to look at BRINGING THEM ALL TOGETHER, particularly those agencies whose responsibility it is to provide funding to entrepreneurs. There are many entrepreneurs who crave for funding but somehow the bureaucracy prevents them from accessing funding at the right time; at the time it is necessary for them to carve out critical aspect of their business agenda. So I BELIEVE that is an AREA in which we HAVE TO BE REAL,” he explained.

    George Pilgrim……….would the amalgamation of these “funding agencies” not result in “putting hundreds of hard-working public sector workers on the breadline” as well?

    Politics…………

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  • Grenville ent mekkin sport

    page 16 BarbadosToday

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  • Poor BCC Governor, he is obliged to try to inspire confidence and be impartial. But he knows that the economy is in the doldrums, the propeller shaft is broken and we are fast drifting onto the reef of disruptive national elections. The only way to escape disaster is for every man “dread” in Barbados to pick up his oars and ROW IN UNISON !! He should have encouraged us to push mightily to ensure that the coming season’s tourist experience offers such good value that the word spreads enough to cause a reinvigoration of foreign direct investments in the industry well into 2018. . . . . . There was only despondency in his voice.

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  • @Artax

    The political parties will recall that the P word was responsible for Arthur losing the last general election.

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  • @Artax

    “Firstly, there has been a significant reduction in Grants to Public Institutions.”

    yet BT states…with current expenditure increasing by $13.9 million, largely due to an increase in grants to public institutions.

    “Secondly, why would the Central Bank Governor mention “public sector divestment” in his report if it was not under consideration”

    for the same reasons the NIS Review listed ‘scenarios’ for the effects of debt restructuring.

    Overall…just Blah Blah Blah…hardly a surprise anywhere.

    @Hants
    he’s getting better. I still believe his financial ‘solutions’ have minimal chance of success.

    Like

  • DONG * DONG * DONG * DOOMSDAY IS COMING.

    Very soon, the expats from the High North, foreign diplomats and foreign investors will command the fate of this island. It will be better for Barbados. They warned you for years. Obviously, the said group shows more compassion for Barbados and its population than any local cabinet minister, judge, pastor, high bureaucrat and consultant with their failed education and lightminded attitude.

    Liked by 1 person

  • millertheanunnaki

    @ David November 1, 2017 at 1:31 AM
    “The political parties will recall that the P word was responsible for Arthur losing the last general election.”

    That “P” word has been used like “piggy in the middle” while both political parties continue to play a zero-sum game of goalless football.

    At least the deceitful lying party of ‘yellow’ turncoats has ‘up’ its Machiavellian game of thrones and has repackaged its propaganda strategy by ‘re-branding’ that dirty, deadly to OSA’s game of revenge marked “Privatization” to a kindler, gentler but just as bitter sweet medicine labeled “Divestment”; with its Hobson’s choice ‘as is’ sale condition: ‘Can only be sold for foreign currency’ to save Barbados’ sorry forex ass from another foreign devil of a “D” called Debt Default.

    Only the referee of foul play wearing the neutral ‘white’ badge of a ‘foreign’ scapegoat marked in black “It’s My Fault” (IMF) can decide at this late stage of the game if that “P” word of bogeyman fears must be turned into the “D” word of economic realities.

    The only red card left in the referee’s pocket to be revealed is if that big red letter “D” stands for ‘Divestment and/or Devaluation’.

    Now read between the lines and you might just hear the final whistle of what the miller- like the boy with his ‘white’ finger in the ‘black’ dyke of fiscal inundation- has been ‘expostulating’ since 2012: “Divest now or Devalue later”.

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  • Frustrated Businessman: Animal Farm sequel playing out in Bim.

    If our statutory corporations were working, the employees would embrace the renewed enthusiasm that privatisation would bring. New ideas, new growth, new opportunities.

    But the irony of the entire situation is that we all know that the civil service and statutory corporations of this country are ’employers of last resort’ and actually function like a welfare system for the unemployables.

    So every time the topic of privatisation comes up it is perceived by every man and his dog as a reduction in social welfare benefits, not an opportunity for all the players involved.

    How sad is that.

    We fully understand the utter ridiculousness of the entire system but are unwilling to do anything about the constant haemorrhage of money due to our pretentious ‘social conscience’.

    Give the statutory corporations to the employees on a share-issue basis based on their last pay check, retain the fixed assets and let the free market system work.

    Give a man a fish, feed him for a day; teach him to fish and feed him for a lifetime.

    The purpose of Gov’t is to LEGISLATE, REGULATE AND FACILITATE, NOT OPERATE.

    I noticed Mia borrowed my slogan recently in one of her press statements but she politically left out the last two words.

    Liked by 1 person

  • @ David

    Yes, the privatization issue played a role in Arthur losing the 2013.

    However, in January 2014, Sinckler said government was at that time reviewing the functions of 19 statutory corporations with a view to CONSOLIDATING their OPERATIONS, a REPORT was to be PRESENTED to Cabinet, and implementation, following wide and intense discussions with all of the social partners, was to commence in April, 2014.

    Recall Sinckler also mentioned that, of those 19 institutions, “Some will go out of business, others will merge with each other and perhaps where it is feasible and makes sense for PRIVATE INVOLVEMENT in the OPERATIONS of any of those institutions that will be undertaken as well.”

    A question we should ask is where is the report and why it has not been made available to the public?

    ++++++++++++++++++++++

    @ Northern Observer

    The Governor also mentioned the following in his report:

    “While there has been an initial decline in the deficit, ATTENTION has to be paid to the ONGOING DOWNSIDE RISKS in light of the UNCERTAINTY about the PACE of the PLANNED DIVESTMENT of PUBLIC SECTOR ASSETS.”

    Note and analyze the phrase: “PLANNED DIVESTMENT of PUBLIC SECTOR ASSETS,”………… and then ask yourself if PRIVATIZATION is not on the AGENDA of the current administration.

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  • @FB

    We know the problem dont we? The political narrative always hijack the national conversation we need to be engaged.

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  • @Artax

    The DLP seems to be a little better than the BLP when it comes to crafting a message that resonates with the voting public.

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  • Frustrated Businessman: Animal Farm sequel playing out in Bim.

    David, consider one small scenario: lets say the gov’t retained ownership of all NHC fixed assets and leased them back to the NHC. The NHC would issue shares in the HNC to the employees in exactly the amounts of their last paycheck with a simple employment contract that stated that, if an employee separated from the company for any reason, his shares would be bought at market value by the corporation.

    Do you think there might be renewed enthusiasm for collecting rent?

    Do you think employees might start reporting theft and nonattendance?

    Of course they would.

    The formula is simple for all statutory corporations.

    We are a happy, lazy, uncreative people who talk allot, blame others for our suffering and accomplish very little.

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  • Frustrated Businessman: Animal Farm sequel playing out in Bim.

    Meanwhile the fuktard Sinckler goes public with the asinine statement that gov’t can’t sell CBC because then he’d have to report (unrecoverable) debts to gov’t as losses which would reflect badly on gov’t balance sheet.

    And Fumble’s Fools wonder why investors, who pay close attention to this type of economic drivel, are running from this country?

    There was never any chance of economic recovery under Fumble’s Fools.

    Like

  • Hurra! Commercials banks forced to hold even more junk bonds in Mickey Mouse-currency! Another milestone on the way to absolute economic slavery. Look at the faces of the Central Bank puppets during last press conference. That tells you all.

    All the secondary and tertiary education of the last 51 years was for the rubbish bin. Barbados is still a plantation with one product where you do not need any enhanced skills.

    Barbados turns out to be THE textbook example for a failing non-developed country.

    Liked by 1 person

  • An examples why Barbados is failing:

    Once I was at the Aquatic Centre and watched some maintenance work nearby. First the Chinese came, later the Guyanese and with a huge delay the Barbadians. I assume the reversed scenario at night: First the Barbadians go home, then the Guyanese and last the Chinese.

    A small island like Barbados will never prosper with zero work ethic and ministers, judges and high bureaucrats mixing up emancipation and liming.

    Liked by 2 people

  • Bernard Codrington.

    @ Tron at 12:09 PM

    Brilliant observation power. I wonder where these particular Barbadian workers got the notion that coming to work late and leaving early was the norm. Did you notice if their supervisors or managers were on the job? Did they speak to them on their lateness? And their early clocking out? Man ,give the BU house the full story.

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  • @Artax
    i wasn’t questioning whether the statements referred to privatization or not. Rather this is politic speak, we (public) have been told. In a similar manner we have been told the GoB will not be able to meet its borrowing commitment to the NIS. If anything occurs, WE have been told.

    In a similar fashion, we were told the borrowing from Barbadians continues. Now the NIS has no more money, they will borrow by forcing the Banks to transfer more of the savings of the people, for ‘safekeeping’ to the GoB.

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  • @TRON November 1, 2017 at 3:34 AM “Very soon, the expats from the High North, foreign diplomats and foreign investors will command the fate of this island. It will be better for Barbados. They warned you for years”….”Obviously, the said group shows more compassion for Barbados and its population.”

    Can you give us some examples of this compassion?

    And you used the word “command”

    Are commanders typically compassionate? Or do give orders, expect them to be obeyed, and if not obeyed then punishment is given. Where is all of this does compassion live?

    Like

  • Frustrated Businessman

    wrote some very interesting comments.

    Unfortunately, state funded organizations (SFO) are used by politicians to create jobs and increase the probability that the incumbent party will be re-elected. However, there isn’t any inherent reason why a SFO cannot be managed and be as profitable as a private sector organization.

    We all know that the successful operation of these SFO is hindered by inefficient management and political interference. Ministerial appointments to the board of directors are made to put some money in the pockets of yard-fowls, build constituency support, repay “political debts, enrich supporters and financiers or to achieve a myriad of non-business objectives.

    In many instances managers are usually transferred from the civil service and bring with them the “bureaucratic mentality” that is inherent in the service. Or political yard-fowls are appointed as managers to fulfill the minister’s political agenda. O’Brian Trotman was appointed as Director of the UDC, under the previous BLP administration, and was replaced by former DLP candidate Derek Alleyne by the current DLP administration. Former DLP candidate Doug Hoyte is general manager of CBC.

    Additionally, managers are not usually held accountable for managerial inefficiencies or unprofitability. Under these circumstances, it is reasonable to ask why Sandra Forde remains General Manager of the Transport Board.

    In some cases they do not perform to their full potential because of political interference in decision making. For example, the minister may over-turn a manager’s decision to terminate the services of an employee.

    And we all know political considerations dominate economic and social considerations of SFO. Because there aren’t any clearly defined objectives for the organization, politicians “meander” between social and economic goals for purposes of political expediency. A perfect example is the Transport Board.

    And what is the end result……….. professional trained individuals usually use their skills to develop the economies of other countries or they accept positions in the private sector.

    Like

  • millertheanunnaki

    @ Artax November 1, 2017 at 4:02 PM

    Well said Artax!

    If you were in Dr. JR’s management class at Cave Hill he would have to mark your essay with an ‘A’ but only with grudging admiration and fear that any second marker would upgrade it automatically to A++.

    It is precisely for those ‘exact’ reasons why most of those SOE”s / SFO’s will soon be appropriately ‘rationalized’ when the overseas ‘moderator’ is ensconced in one of the Ivory towers in Warrens as was done in 1991/92 in Bay Street to oversee that round of privatization now styled as the more politically correct “divestment”.

    Barbados is badly in need of an economic blood transfusion. And with the massive haemorrhaging of its foreign reserves only Dr. IMF, the haematologist, can contain the endemic loss of forex the lifeblood of the country’s economic fortunes.

    Soon there will be no “Ifs” or “buts”. Only which SFO’s will have to go and which ones will be retained but with mandates refocused and management functions ‘contracted-out’.

    In ‘simple’ terms, just implement the pledge made by the woefully incompetent braggadocio for a pathological lying MoF in his December 2013 ministerial statement.

    Like

  • @miller

    Yourself, Artax and I have been on BU for years warning this hard ears government and they would not listen…………..and look where we are today.

    Frustrated Businessman as well offered solutions,Tron too they refused to listen and look where they have brought our once proud country. Their chickens have come home to roost.

    Hell……they would not even listen to Bush Tea who voted for them….lol

    Only yesterday we listened to the governor of the Central Bank pleading with the government to stop the unneccessary spending and what do we see in today’s paper………..they can find money to paint up Rhianna’s childhood house……….love Rhianna but right now she may have more money than the government.

    Why the hell would a government who is in the mess that it is in now………for political reasons……paint up Westbury Road? For what purpose? They really think that that can help crooked Michael Carrington to win?

    It is inconceivable that this government can find money to do all kinds of unneccessary things but thinks that for someone else to suggest that they will find the 35 million to pay yearly to educate our children is a political stunt………………

    What fking morons!

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  • It was reported in yesterday’s Daily Nation that “government is about to make another attempt to convince the IMF that the Barbados economy is on the right track.”

    According to the article, an IMF delegation is due to visit Barbados next week to conduct the annual Article IV consultation.

    Given the revelations in the yesterday’s Central Bank report, it would be interesting to read the Article IV report…………. unless, as was done in the past……….. government decides to delay its release.

    Like

  • @TRON November 1, 2017 at 3:34 AM “Very soon, the expats from the High North, foreign diplomats and foreign investors will command the fate of this island”

    You clearly have more confidence “in expats from the High North, foreign diplomats and foreign investors” than I do.

    The last time expats from the High North, foreign diplomats and foreign investors were in charge most of the population ended up hungry and illiterate, my own brother was one of them. There was a coffin built for his toddler self in 1940.

    He isn’t dead yet.

    So you know unlike you I don’t have much confidence in the ability of expats from the High North, foreign diplomats and foreign investors to command things in Barbados.

    last time around even though they had hundreds of years to get it right, they made a right mess of things, truthfully a far greater mess than now

    Because right now we are not building coffins for our toddlers…

    yet.

    Like

  • Simple, I do not trust anybody. All I know is that the self-destructive power of the local elite is a bigger threat for this island than everything else.

    The foreign investors we need is not the kind of colonial master race exploiting the island for 300 years. We need a business environment where foreigners can invest their money on this island without bribery and without fear of devalued property and where they get a profit in exchange for local jobs better than maids and kitchen boys on the plantation called tourism.

    The horrific behaviour of the British colonial power is no standard to measure foreign investors in the early 21st century. My Intention is not to glorify the British misdeeds when I consider foreign investments. I understand and respect your anger about the past where crimes happened without just restitution.

    Liked by 1 person

  • All of a sudden we are to believe that Barbadian workers are “lazy”. Who built Barbados ? Who worked for 50 and 60 years and were then given an easy chair and a watch? Who started as porters and maids in corporate Barbados and were never given one single break? Who bent their backs in the cane fields? Who spent their entire lives in corporate Barbados and were not rewarded with a single share or directorship? Many of us on this blog now pissing on the worker class could have never achieve anything they have without the Blood Sweat and Tears of those workers who built this rock.
    Wunnuh talk a lot of things but I know for a fact that every director at Barbados Shipping and Trading in the 70s had white jaguar company motta cars. I know the wage bill per year for at least 12 workers in one of the departments was lower than the price of one jaguar. All yuh forget the yachts by the yachts club etc.
    We stand by and witness the corporate sector destroy agriculture and almost ruin the tourism industry ; refused to innovate and utilise modern business practices. Ask why after forty five years a company cannot find one black director. Ask who built that company and why not one of them could make it into the board room.
    We are not suffering from a lack of productivity. We are suffering from reinventing a retail nineteenth century business outlook and expect to function in the 21st century.
    These corporate misfits would not pay in VAT; refuse to pay in workers national insurance contributions and in many cases avoid paying taxes and of late have been trying to destroy the Barbados Workers Union. We can piss all over Mottley , Stuart, Innis and company but we turn a blind eye to the controlling corporate sector, whose only contribution to this country is to threaten successive governments with unemployment if they dont get their way.
    I am still asking why after 60 plus years in the tourist industry we don’t have one single Butch Stuart or a brand such as Sandals.
    Let us speak the truth. Yes the Black political class has abandoned their historical journey because they are addicted to luxury cars and the so-called finer things but they are not the only ones who have been visionless. Why do we still believe that white is always right ?

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  • @ William Skinner
    All of a sudden we are to believe that Barbadian workers are “lazy”. Who built Barbados ? Who worked for 50 and 60 years and were then given an easy chair and a watch? Who started as porters and maids in corporate Barbados and were never given one single break? Who bent their backs in the cane fields?
    ++++++++++++++++++++++++++++++
    Those folks are either dead or retired.
    Their children and grandchildren are mostly a lazy pack of brass bowls….

    It is just a fact.
    Face it….

    NEXT!!!

    Liked by 1 person

  • @Bush Tea November 1, 2017 at 9:53 PM “Those folks are either dead or retired.
    Their children and grandchildren are mostly a lazy pack of brass bowls…It is just a fact.
    Face it…NEXT!!!”

    i don’t know where you hang out Bushie, but you really should find better quality company.

    The young people that I know are mostly decent, smart, dedicated, and hard working, and there are a good few creative ones in there too, eaning their livings in creative, legal ways.

    Like

  • @ Bush Tea

    Obviously you don’t believe that certain cultural, social and economic factors underpin the historical journey of any society. Like many, you are only prepared to examine one side of the problem. There are millions of slaves who have passed on but that does not stop many others from seeing all black people as lazy although they would have worked from dust til dawn for nothing. If you think that our problems are rooted only in a myopic Black political managerial class , you are absolutely wrong.
    If you think that the children and grandchildren of the “dead or retired ” are”mostly” a lazy pack of brass bowls it merely shows you have consumed more than your fair share of the master’s cool aid.

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  • Tell Bushie that the grans getting all A’s in school.

    All A’s does not equal laziness nor stupidity.

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  • Two excellent examples of Bushie’s summary….

    All ‘A’s is school shiite…!!
    …learning what? …how to be a good little servant of some albino centric foreigner?
    Working their whole life for some shiite pittance ..and then confusing Caswell when discarded like an old pet?
    All ‘A’s in school is exactly what is expected of a mindless slave…. soaking up the brainwashing that is mental slavery…

    …and Skinner, your emotional rant about ‘historical journeys’ ain’t saying squat….

    People who benefit from 60 years of free education and end up in hopeless debt to foreigners, selling off their family silver in order to buy food, and kowtowing to Chinese, American, Canadian, Trickidadian and almost every other foreigner – who now own their fields and hills – can ONLY be described as brass bowl idiots….(and THAT is being kind)

    The only ‘MASTER’ Bushie serves… is BBE….
    and the ‘kool aid’ that is served up by THAT master is truth, honesty and forthrightness…

    …but feel free to keep on fooling wunna selves….
    It is what brass bowls do best.

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  • “Ask why after forty five years a company cannot find one black director. Ask who built that company and why not one of them could make it into the board room.”

    “………but we turn a blind eye to the controlling corporate sector, whose only contribution to this country is to threaten successive governments with unemployment if they don’t get their way.”

    Hmmmmmmm………………

    Firstly, white people are not fond of black people……. and that’s a fact.

    Directorship is usually associated with management positions. The fiduciary duty of a director’s oversight requires the appointee to have several years of executive experience and the ability to read, interpret/decipher and offer comments or suggestions on financial statements.

    As such, William Skinner seems to be suggesting, for example, if he worked at “C.O Williams Construction Ltd.” for 30 years as a truck driver, he is entitled to be considered for appointment to the board.

    However, I worked for a white owned company of which the financial controller, who was also a director, was a black man. He enjoyed similar privileges that were afforded to the white directors………….. including a company vehicle, a weekly allowance and he had “bob cat” that was rented by the company.

    Secondly, over the years, for example, rather than outsource at least 75% of road repairs to the black owned Rayside Construction, successive BLP and DLP administrations chose to give C.O Williams 95% instead. CLICO, through its CEO, Leroy Parris, was closely associated with the DLP. It was only when the DLP formed the government that road works were outsourced to Rayside because CLICO took over the operations of that company. Currently, Mark Maloney and Bjorn Bjerkham seem to be the NEW preference….. and you don’t want us to cuss politicians?

    If Rayside was afforded opportunities equal to what was given to “COW” Williams, surely that company would have been a “force to reckon with” at this time and would have been able to adequately “step up to the plate” if the white owned construction companies contemplated “threatening successive governments with unemployment.”

    And this may have been a “blessing in disguise,” because more work to Rayside means the company would be able to hire former employees of the white owned companies.

    Thirdly, it is erroneous to suggest that “refusal to pay in workers national insurance contributions” should be confined ONLY to white owned businesses. Based on my experience, I can “fearlessly state” BOTH black and white owned businesses (whether “big or small”), government departments and statutory corporations are perpetrators of this practice.

    Additionally, (and based on my experience) owners of large, medium, small and micro businesses avoid filing income tax and VAT returns or remit taxes deducted from employees.

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  • @ Bush Tea

    “…and Skinner, your emotional rant about ‘historical journeys’ ain’t saying squat….”
    For all your anti albino centric talk, you still have to employ the well known response of those people when they confront the hard truth hence your description of my contribution as “emotional”. Anybody who has stood up to the “man” would tell you that when they speak it is rational but when a Black man speaks , he is “emotional”.
    @ Simple Simon
    “The young people that I know are mostly decent, smart, dedicated, and hard working, and there are a good few creative ones in there too, eaning their livings in creative, legal ways.”

    Thanks for enlightening Bush Tea and others of his ilk who are completely disconnected from the energy and creativity of our young Black people. All they luck is opportunity.

    @ Artax

    Fair comment. I concur .

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  • @ William
    Boss. emotional is emotional.
    Yours is a politically correct statement based on NO FACTS….. hence emotional.

    Simple Simon bases her conclusion on the ‘fact’ that her grand children are getting ‘A’s in school…

    On what do you base yours…?
    The statistics coming from the Courts? … the juvenile scheme in the AG’s office? ….the ministry of education? … Prison? ….or you just know two decent young people too?

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  • @Artax and all, you are basically correct, but at the expense of getting too caught in the eye roll details of corporate governance let’s clarify (or explode) your remarks that “Directorship is usually associated with management positions. The fiduciary duty of a director’s oversight requires the appointee to have several years of executive experience and the ability to read, interpret/decipher and offer comments or suggestions on financial statements.”

    That’s a NECESSITY for the chairman, CFO, CEO and lets say 50% of other Board members.

    But realistically as we have seen with the insidious stockholm syndrome culture exhibited by many ineffective Boards that is NOT the most important criteria for Board members. The over reliance of that thinking is very much the problem!

    It’s the abiliy to dissect, analyse and interpret management actions; demand answers to the hard questions posed by consumers of the company products/services; and to be a strong voice in that board room against malfeasance and misdirection that’s most valuable in the board room.

    The actions by the Wells Fargo Board re their senior managers incredibly fraudulent acts to create and inflate customer acs was insidious…. as were the actions by all those experienced execs at CLICO who could explain a balance sheet acid test or liquidity ratio with ease.

    A Board must be about skills to help the company. The balance sheet numbers tho vitally important is but one component.

    A house wife of many years experience raising a great family and who is immersed in her community on school and other social groups is actually a better choice for any major company Board that another exec who has great ability with financial statements.

    And again let’s agree that a brother who worked ” for example, … for 30 years as a truck driver” is not entitled for appointment to the company board.

    But …. if the brother during those 30 years was on the vanguard of innovation re route dynamics, logistical suggestions and all-round was a tremendous leader and asset to the company growth and rose to a position of respectability and leadership then SURELY he is over qualified to sit on the Board.

    The problem with all that of course is (whether Black or white)…it would never happen that smoothly.

    Anyhow, just a clarification from where I sit.

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  • @ dpD

    You are missing the point………… perhaps you should have read William’s contribution first, before hastily replying.

    My response was based on William Skinner’s comment re: “Ask why after forty five years a company cannot find one black director. Ask who built that company and why not one of them could make it into the board room,” clearly indicating he was referring to board members being appointed from AMONGST employees and not EXTERNAL appointments.

    Board members CHOSEN from employees are usually in management positions.

    I’m dealing strictly with a “truck driver” who has 30 years with company and expects to be entitled to a directorship. Based on my experience, many employees who work for companies for several years believe those years give them the right to “ownership” or is the criteria for them “to do as duh like.”

    You are the one who raised the issue of external appointments of directors, which is NOT the topic of the “discussion.”

    Also, by introducing: “………was a tremendous LEADER and asset to the company growth ROSE to a POSITION of respectability and LEADERSHIP,” is a completely different issue, and by doing so, you not only CONTRADICTED yourself, (it goes back to my point that directors chosen from employees are usually MANAGERS), but also “created your own straw man to knock him down.”

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  • @ de pedantic Dribbler

    “A house wife of many years experience raising a great family and who is immersed in her community on school and other social groups is actually a better choice for any major company Board that another exec who has great ability with financial statements.

    And again let’s agree that a brother who worked ” for example, … for 30 years as a truck driver” is not entitled for appointment to the company board.

    But …. if the brother during those 30 years was on the vanguard of innovation re route dynamics, logistical suggestions and all-round was a tremendous leader and asset to the company growth and rose to a position of respectability and leadership then SURELY he is over qualified to sit on the Board.”

    Your comment is spot on. In many progressive corporations, directors and management teams are selected on their knowledge and experience of how the company functions. I can say without reservation that there are individuals who have been with Harris paints either from or almost from its birth and I find it amazing that not one black has made it to the Board room . Now if they were and are no longer I stand corrected but I read in the press that all the current directors are white in its 45th year feature. Now in white countries pressure is placed on corporations to address such matters when blacks are overlooked but in our black country, we are afraid to question such things.
    Like i said and will continue to say if we can be critical of a black prime minister;a black leader of the opposition, thirty black Mps; a black chief justice; a black police chief; black teachers; black lawyers and all others of the black bajans why cant we be critical or question of white corporate Barbados and some of their policies which appear to be quite racist.

    Like

  • @ William Skinner

    I understand and agree with your comments.

    Your example re: “…….there are individuals who have been with Harris paints either from or almost from its birth and I find it amazing that not one black has made it to the Board room” is true.

    However, it amazes me that after having knowledge of such occurrences, black people CONTINUE to SUPPORT these businesses.

    Power is in the hand of the consumer…….. and as you correctly stated pressure should be “placed on corporations to address such matters when blacks are overlooked.”

    Like

  • millertheanunnaki

    @ Artax November 2, 2017 at 10:09 AM

    Doesn’t the reverse situation exist in the political arena?

    Where are whites and other ethnic minorities represented in Parliament other than in the form of a poor white from St. John slightly daubed with the tar brush?

    Why should there anyway when they remain behind the scenes and pull the strings of their black political puppets repeating the ventriloquist views of their ‘shady’ financial sponsors?

    We can only conclude that blacks have perfected the art of knowing their places like in the good Xtian hymn of extolling the virtue of the lowly poor knowing their place outside the rich man’s gate looking in and living in god-given hope and capitalistic admiration.

    “The rich man in his castle,
    The poor man at his gate,
    God made them, high or lowly,
    And ordered their estate.”

    Like

  • @ Artax

    As we continue to go through economic turmoil, the conversation will shift to the underlying realities of our condition.
    We have blamed successive governments for the decline of agriculture , when in fact, it was companies such as Barbados Shipping and Trading that bluntly refused to modernise our agriculture sector. Its the same thing with the tourism industry.

    Like

  • @Artax, eh! Please come again.

    I did read the post from William which generated your remarks.

    I responded in context to the points YOU made which stood clearly on their merit.

    Nothing hasty, senor. I gave two scenarios. One re the external and one re the long term internal employee…not sure therefore what straw argument you suggest.

    @William, the matter of a directorship is a tricky one in my view. The example of the truck driver is actually seen in different ways often in the business world, namely where a person starts at the bottom and raises to the Board room or key executive.

    However, longevity at a firm cannot be the sole or most important criterion to senior leadership…there must of course be the extenuating reasons like those cited above.

    Separate the racial divide which is as real as can be the business world is replete with folks who left a firm because their sterling ideas and work ethic went unrecognized and started their own successful business. Obviously in a small market environment those opportunities are limited so the angst of recognition or an all white Board after many years becomes more problematic.

    Until I have more time.

    Like

  • millertheanunnaki

    @ William Skinner November 2, 2017 at 10:43 AM
    “We have blamed successive governments for the decline of agriculture , when in fact, it was companies such as Barbados Shipping and Trading that bluntly refused to modernise our agriculture sector. Its the same thing with the tourism industry.”

    We find that somewhat disingenuous in light of the fact that the same “successive governments” have created statutory corporations and agencies to take possession and control of the majority of agricultural lands.

    BS&T was sold to a T&T conglomerate. CLICO, another foreign-owned business corporation, bought some of the best agricultural lands which can be compulsorily acquired and put to productive agricultural use.

    Shouldn’t you be holding the feet of these current owners to the agricultural fire instead of creating scarecrows from the decaying straws of dead entities depicting an image of a long gone rural Barbados of yesteryear?

    Like

  • Frustrated Businessman: Animal Farm sequel playing out in Bim.

    The facts are easy to understand.

    It is impossible to treat a business as a welfare instrument and have it survive.

    When it’s survival is unnaturally guaranteed by gov’t subsidy, it is to the detriment of the tax-paying, private enterprises it competes against.

    Any gov’t subsidy to an individual entity operating in a wider free market conveys an unfair trade advantage to that entity.

    CBC, Transport Board, NHC, NCC, etc. are all using tax dollars to compete unfairly against tax-payers.

    Either the subsidy must stop entirely or be evenly distributed.

    It is not more complicated than that.

    Like

  • @Frustrated Businessman

    How does one define what is a public good?

    Like

  • There is an assumption, very common in Barbadian political circles, that there is a correlation between a publicly-owned corporation and poor management. As far as I can remember, Shipping and Trading, Banks and other Barbadian mainly family-owned businesses have also been poorly managed; that is why the Trinidadians moved in.
    The historic Barbadian business sector has failed the nation; and the political class has failed the nation. Barbados, no matter how we define it, is a failed state.

    Like

  • @ millertheanunnaki

    All I am saying is that the traditional private sector should not be given a free pass when discussing how we have arrived at our present plight.

    @ At Hal
    “There is an assumption, very common in Barbadian political circles, that there is a correlation between a publicly-owned corporation and poor management.”

    You are more than correct. We have assumed that all the economic maladies can only be traced to the public servants. Our private sector is the most backward in the Caribbean. Jamaica has taken two products and turned them into world brands: reggae and jerk seasoning. What have we done outside of baby sit the private sector.
    Whenever a top civil servant retires chances are that he/she will be snapped up by the private sector because believe it or not our top civil servants are of a superior management quality. When they are freed from the stupidity of the politicians, they tend to excel.
    Tom Adams did not turn to the private sector when he needed somebody to head the Barbados National Bank.

    However, I would not call Barbados” a failed state” at this stage.

    Like

  • BS&T was bought by the Trinis because investors were cash rich mainly as a result of greater than 100 dollar oil price and an ageing BS&T shareholdership that preferred the golden handshake option.

    Like

  • Frustrated Businessman: Animal Farm sequel playing out in Bim.

    David November 2, 2017 at 11:29 AM #
    @Frustrated Businessman

    How does one define what is a public good?

    ………………………………………………

    That is the wrong question David.

    This island needs low-income housing for purchase and rental.

    The private sector provides both cheaper than gov’t can, while competing against each other and paying taxes on every stage of the development, the finished products and profits.

    If gov’t sees fit to provide free housing for the vulnerable in our society, all they have to do is either buy it on the free market or rent it on the free market from the people who know best how to provide it at competitive prices.

    When you want a pork chop for dinner you would probably not buy a pig farm and operate it at a loss for decades while hiring your lazy-ass family to work there and give away free pork to everyone else in the neighbourhood including the vast majority who can afford to buy it.

    The purpose of gov’t is to LEGISLATE, REGULATE AND FACILITATE, NOT OPERATE.

    All the social services this country needs can be paid for by taxing a vibrant economy. No social services can be paid for by stifling an economy while throwing away cash on bad business ventures.

    Like

  • Miller

    No one is interested in agriculture in Bim today,dont mind the China 40M(which will be in kind,presumably according to Dr Robinson) to UWI’s ag. project as the farming community was not involved according to Sen. Chandler in wednesday’s nation.

    OSA’s words about land being allowed to fetch its own price, has resonated with every one,which is why the mandatory minimum of 40,000 acres to be kept in ag. has dwidled to just over 20,000 acres.

    Historically it was the merchant vs the planter with the planter on top for centuries……well the tables have turned and this is where we are at today.

    Like

  • millertheanunnaki

    @ Vincent Haynes November 2, 2017 at 4:27 PM
    “Historically it was the merchant vs the planter with the planter on top for centuries……well the tables have turned and this is where we are at today.”

    The inherent weakness of such a ‘modern’ model is that it depends totally on the country earning sufficient forex to finance such a large food import dependency bill; far less lacking any serious consideration of the concept of food security in case of externalities beyond the Bajan control like natural disasters, global food shortages or even war and other geopolitical gamesmanship.

    What happens when the country’s main forex earner cannot generate the kind of foreign cash to pay for the imported processed food?

    As the Mighty Chalkdust opined in that riveting calypso:
    All ‘Buybadus’ got is sea water and sand and the day the tourists don’t come to the land of the migrated flying, crapaud will smoke the Bajan pipe in the land of starvation since you guys are too ‘poor-great’ to eat sand and drink sea water bought with Mickey mouse Bajan dollars.

    BTW, without agriculture rural Barbados would look like a veritable bush land overgrown with unattractive weeds (not the mary jane high end) and a total turnoff to tourists looking for a relaxing idyllic tropical garden and not a dump full of plastic and discarded remnants of a dirty irresponsible importing consumption-driven population totally out of kilter with modern environmental sensitivities and responsibilities for future sustainable development.

    Like

  • Bernard Codrington.

    FB at 1: 30 PM

    Where in Barbados are these cheap low income houses ,built by the private sector, are?

    Like

  • millertheanunnaki

    millertheanunnaki November 2, 2017 at 8:09 PM

    All ‘Buybadus’ got is sea water and sand and the day the tourists don’t come to the land of the migrated flying’ fish’.

    Like

  • @ Bernard
    Where in Barbados are these cheap low income houses ,built by the private sector, are?
    +++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
    All over.

    They are called ‘Chattel Houses’ and are ideal, unique, affordable, ‘do-it-yourself’ – for most, easy-to-maintain, cool, and attractive. But that was back when our SENSIBLE grandparents were alive and thinking….

    But we now have ‘educated’ champagne taste with our mauby pockets, so we borrow OTHER people’s money to live THEIR dreams …and to keep ourselves in debt.

    Best part was when old communities came together to repair / relocate/ upgrade each other’s houses as needed.
    Now we have to buy all we want …because we insist on selling all that we have…..

    Like

  • Former Prime Minister Owen Arthur has called for the Warrens to UWI corridor to be developed as the island’s first smart community, laying the foundation to transform the stagnant economy on pillars of innovation, technology and entrepreneurship.

    http://www.nationnews.com/nationnews/news/101801/owen-solution-lies-smart-communities

    Like

  • Bernard Codrington.

    @ Bush Tea at 10:20 pm

    You do jest. Have you in recent times repaired or built a chattel house? At today’s price we are talking of $ 80K BB$. You really making sport at poor black people. Repairs can cost the owner BB$ 10 k every 7th year.

    Like

  • @ Hants

    Arthur reminds us of a batsman seeing the ball after he is back in the pavilion.

    Like

  • Frustrated Businessman: Animal Farm sequel playing out in Bim.

    Bernard Codrington. November 2, 2017 at 8:34 PM #
    FB at 1: 30 PM

    Where in Barbados are these cheap low income houses ,built by the private sector, are?

    ……………………………………………..

    Read my post again B.

    I did not say cheap, I said ‘cheaper than gov’t can (provide)’.

    Like mini busses are cheaper to run than BTB busses. Like VOB is cheaper to run than CBC etc. etc. etc.

    Nothing in Barbados is cheap with the taxes we are forced to pay to feed lazy-ass snivel servants and statutory corporation teefin’ dens.

    Like

  • @ Bernard
    Bds $80K for a decent, safe place to live is quite reasonable. That translates into a repayment of about $600 per month for a 100% 15-year mortgage.
    Besides, housing does not need to be ‘cheap’, it is an excellent long term investment in a vital asset.

    The substantive point though, is that whenever government gets into ‘business’, it results in wastage, graft, bribery and inefficiency. It should therefore be OUTLAWED as a matter of common sense.

    The FUNDAMENTAL problem is in any situation where large amounts of money are placed at the disposal of select persons, and where there is little oversight, no transparency, no accountability and most critically, no CONSEQUENCES for doing shiite.

    The most recent non-government example in the news is with the Olympic Association – where millions of dollars of lottery funds are handed over to a closed set of people each year, to spend as they wish. After decades of piss poor results, complete secrecy, falling behind in sport, no facilities, and with very little to show, it seems that we are now in for more of the same.

    A very simple solution would be for an AUTOMATIC, annual, mandatory, audit of ALL such institutions – by a body such as the Auditor General – paid for by that institution itself, and for full public publication of all relevant records and transactions.
    With names like Jack Warner, Jeffrey Webb and most recently the president of the Brazil Olympic Association, who enjoyed many years of ‘success’, only now to be found out to be scamps and criminals,
    Bushie would have thought that automatic audits would be a no-brainer if we wanted to take preventative actions to ensure that others stay on the straight and narrow.

    The problem of course is that, (brass bowls that we are,) even though the Auditor General annually names and details the criminality being perpetrated in the local Public Service, we continue to trust in the very same politicians to look after our future without any strict accountability and consequences.
    Brass bowls are beyond redemption…. but not stinking Bushie…
    Bushie leans towards the guillotine as an effective ‘consequence’.

    Like

  • Cheap affordable housing solutions with community assistance done the old time Bim way………

    Like

  • millertheanunnaki November 2, 2017 at 8:09 PM #

    Read OSAs words of yesterday…..we are in a speeding vehicle in a cul de sac…….we no longer have individuals with vision that can change the world.

    Like

  • @ Vincent
    we no longer have individuals with vision that can change the world.
    ++++++++++++++++++++++++++++++++++++++++++++++++++++++++
    Like his CSME nightmare, this OSA suggestion is a bunch of crap….
    We have all the people needed to change the world – many of them right here with us on BU.

    BUT…
    What people like OSA have done, is seek out the parasites and low-life swamp dwellers among us – whose integrity could be cheaply purchased, and appointed them to positions of influence in the damn country.
    …Chicken feed farmers to become Supervisor of Insurance
    …Low self-esteem jokers to high rank
    …Personal friends and outside women on influential Boards where they were CLULESS, but ‘malleable’..

    Had Arthur instituted a system of MERIT …. where those individuals who DEMONSTRATED that they could change their neighbourhoods; their communities; their churches; their workplaces …. were then SELECTED – based on performance – to run national entities, ….THEN such persons would now have been highlighted, instead of the demonic brass bowls that now dominate our landscape…

    He mash up the damn place with his ‘politics of inclusion’ and now talking shiite…
    He could REALLY do us all a favour and hush his mouth….. He and enuff!!! 🙂
    LOL
    ha ha ha

    Like

  • Frustrated Businessman: Animal Farm sequel playing out in Bim.

    Puppeteers will only ever want puppets below them Bushy.

    It has always been that way, always will be.

    The only way to rebuild this country is to collapse the civil services and statutory corporations, thereby marginalising the hold they have over all of us that is stifling commerce, creativity and progress.

    We can get no further as a people with this tremendous burden on our backs, time to shed the dead weight.

    Like

  • Bushie

    On point…..

    Like

  • @Owen Arthur

    Is this why you approved the sale of the BNB?

    Barbados’ financial system is very liquid but functions in a highly risk-averse manner largely devoted to underwriting consumption,” the former Minister of Finance pointed out. 
    “There is need for financial innovation to enable more resources to go towards the underwriting of reasonable risk to finance the start-up operations and other legitimate activities by entrepreneurs and other technological agents.”
    http://www.nationnews.com/nationnews/news/101823/banks-support-innovation

    Like

  • Well this article headline should be news to MAM

    For a potential PM in Barbados to promise a shopping basket of tax relief……is incredulous on her part !!!

    In light of the fact , that :

    • MAM on the floor of Parliament admitted that the law firm to which she is attached does NOT pay it’s taxes to government !!!

    • MAM was vehemently opposed to the Solid Waste Tax – and march and encouraged Bajans NOT to pay !!!!!!

    With such an abhorrence to tax payment …….how can MAM be able to finance her tax free fiscal programme is she ever becomes PM ???

    Like

  • Fractured BLP

    Do you also mean similar to how Michael Carrington is VEHEMENTLY OPPOSED NOT to pay his clients their money?????

    “His Dis-Hon. Michael Carrington is a GRATEFUL BENEFICIARY of UNIVERSAL FREE PUBLIC EDUCATION, one of the most enlightened policies of the Democratic Labour Party….. [DLP web-site]……”

    …………… but is now vehemently opposed to the reintroduction of free tertiary education?

    “Though challenged in recent times by members of Her Majesty’s Opposition who have not come to terms with the wishes of the electorate, he has been able to MAINTAIN the DIGNITY and DECORUM of the House of Assembly.” [DLP web-site]

    I’m sure John Griffiths and some other clients have a different perspective on Carrington’s “dignity” and “decorum.”
    +++++++++++++++++++++++

    Or do you mean similar to how the bombastic Sinckler VEHEMENTLY OPPOSED the EPA while serving as Executive Coordinator of the Caribbean Policy Development Centre (CPDC), and subsequently signed and heaped praises on the agreement in 2008 when he was Minister of Foreign Affairs and Foreign Trade?

    “When the DLP took office in 2008 Mr. Sinckler first became Minister of Foreign Affairs and Foreign Trade. Among other things, he SUCCEEDED in signing the Economic Partnership Agreement and creating the Barbados Networkers Programme that gives members of the Barbadian Diaspora the opportunity to contribute to and benefit from the sustainable development of Barbados.” [DLP web-site]

    Like

  • @ David

    Perhaps the revelations in the recent Central Bank report is one of the reasons why there is an apparent delay in the recovery plan.

    Like

  • @Artax

    It is not the first time the government has sat on the IMF report to massage public opinion. It is fair to conclude the reason must be based on the fact the message is negative.

    Like

  • @ David

    I don’t believe it’s about a delay in publicizing an IMF report, because the delegation has not arrived as yet……. hence, no report.

    An IMF delegation is supposed to visit Barbados this week to conduct the annual Article IV consultation, during which time this DLP administration was to present “a new version of the Barbados Sustainable Recovery Plan,” perhaps in an effort to convince the IMF the economy is on the “correct path to recovery.”

    Unfortunately, it seems as though the plan is not ready for perusal by the IMF.

    Like

  • @Artax

    Take what you have written to a logical place. What happens if the process is delayed?

    Like

  • @ David

    Ohhhhh…….. I understand your reasoning……….

    Like

  • Everything government does is in preparation for the next elections.

    Tis the season.

    Like

  • millertheanunnaki

    @ Artax November 5, 2017 at 10:43 AM

    “An IMF delegation is supposed to visit Barbados this week to conduct the annual Article IV consultation, during which time this DLP administration was to present “a new version of the Barbados Sustainable Recovery Plan,” perhaps in an effort to convince the IMF the economy is on the “correct path to recovery.”

    It seems the IMF cat will be visiting on this ‘special’ occasion to eyeball the pigeons in the coop to see how many of the clowder will be needed to supervise a new administration in the cleaning up of the decade of financial mess left by the current incompetent administration of pure pigeon poo.

    They will also be looking around for suitable accommodation preferably near to the beach but not too far from the towers in Warrens; all at the expense of the already ‘overtaxed’ owners of the coop about to collapse in the DLP junkyard.

    Like

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