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UNEMPLOYMENT Fund is Broke, Time for Straight Talk Chairman Leslie Haynes

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The following was posted as a comment by Walter Blackman to the Walter Blackman’s Political Insights blog – David, Blogmaster

Based on the link to the NIS investments, provided by NorthernObserver, all BU readers can now sing from the same Hymn sheet – see link https://www.nis.gov.bb/investments-2/

Here are the facts, and the questions to be asked:

The unemployment Fund is broke. Not a cent is left. No bonds, no cash. Nada. Zilch. Rien.
Where will the money come from to pay current and future unemployment benefits? Remedial action has to come down the pipeline very soon.

Government owes (i.e the politicians misused our money) $2.8 billion to the National Insurance Fund, and $0.1 billion to the Severance Fund. There is no cash in the Severance Fund. Where is the money currently coming from to pay the workers’ severance that employers are refusing to pay?

Is the law being broken with respect to the payment of unemployment and severance benefits?

The only way Government can repay the money owed to the NIS is through taxation. Who will the Government tax to get the $2.9 billion for the NIS?
The Baby Boomers have started to retire and will do so by the thousands every year until 2033. How will their retirement benefits be paid? Something has to be done very soon

At the beginning of 2015, the NIS was paying roughly $40 million per month (just think about the multiplier effect this has on our economy) in NIS retirement pensions. That amounts to $480 million per year, and $960 million over two years.
We can therefore understand what the Chairman of the NIS meant when he said: “there are sufficient funds there that we can see this through at least for the next two years.”

However, the Chairman went on to say: “So there is no cause for concern.”

Every BU reader can now look the Chairman of the NIS fully in the face and say: “We do not agree with your assessment of the NIS, Mr. Chairman. There is great, great cause for concern, and in fact, we are very, very concerned. Next time you speak, please tell us what is the Board’s solutions to the massive NIS problems we face.”

…what are the Board’s solutions?

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483 responses to “UNEMPLOYMENT Fund is Broke, Time for Straight Talk Chairman Leslie Haynes”

  1. NorthernObserver Avatar
    NorthernObserver

    @Hants
    I just want you to know, that from my earliest memories, going to the beach, meant going to Brandon’s beach. And I still do daily whenever on the island.
    “Brandon’s Beach is where the poor people go”, a quote from C3%C, a factual authority on the blog.

  2. John A Avatar
    John A

    @ Hal

    Yes I agree with all that you have said. The thing is we as a people talk nuff about accountability but do we hold those accountable or pressure the goverment for it ? NO!

    I for one would like to read a published document outlining in detail what the committee that was set up that included the likes of Persaud at al came up with. What did the money spent on this committee come up with for creating a post covid economy?

    Don’t tell me about it either I want to read it in detail, as a tax payer I am entitled to that at the very least. Or did their plans at giving the tourism sector $300M without ear marking a blind cent for agriculture and alternative energy bring their plan to its grand climax?

    This is the kind of ting dat does vexify my tail!

  3. Mariposa Avatar
    Mariposa

    Ignore David his intervention on any topic is made up of digging rabbit holes

    The picture of what is called a water park on public property also begs the question to asked of govt ” does this investor pay land tax on what is rightfully the public land owned by barbadians and managed by govt
    Is there a lease agreement between the owner and govt since ownership of land cannot be transferred to him
    Or did govt just took it upon itself to willy nilly give away another right of the people to a white investor who only had to shelved out a few dollars and empty promises

  4. GP Avatar
    GP

    CARSON WHEN I ENTERED UWI IN 1971 I WAS A BLP SUPPORTER
    I MET LEROY MCCLEAN WHO WAS A BIG BIG DLP SUPPORTER (I EVENTUALLY LEARNED WHY IN 1986)
    WE USED TO ARGUE STRENUOUSLY BUT UP TO TODAY WE ARE STILL FRIENDS

    IN 2008, I MET HIM IN THE AIRPORT, AND SAID “LOOK AT MY PRIME MINISTER”
    HE BECKONED ME TO BE QUIET, BECAUSE HE KNEW WHAT I WAS TALKING ABOUT

  5. GP Avatar
    GP

    The blogmaster is on his patio drinking a glass of sorrel.

    AND I AM ON MY BED DRINKING LEMONADE AND READING BU PABLUM
    I AM SORRY BUT YOUR WITH FALLS SHORT
    ITS TIME YOU REALIZE THAT THAT IS NOT YOUR GIFT

    AND THANKS FOR POSTING MY SERIES OF STELLAR, SOUND, SUSTAINING BIBLE TEACHING ON SSS
    NOT MANY PLACES IN BARBADOS CAN YOU GET THAT TODAY
    EVEN MY TEACHERS IN BARBADOS IN THE SCRIPTURES ARE NOT QUITE AS GOOD LOL
    AND I AM MODEST TO A FAULT LOL

  6. David Avatar
    David

    You are welcome Oh Barbados Scholar.

    The quote is from Shakespeare so blame him.

  7. NorthernObserver Avatar
    NorthernObserver

    “IN 2008, I MET HIM IN THE AIRPORT…”
    and it wasn’t until years later that he changed religions.

  8. Hal Austin Avatar
    Hal Austin

    @ John A

    I am beginning to have doubts about the economic capability of Prof Persaud. Any post-CoVid economic strategy must start from the beginning, by recognising our competitive advantages, not only in the tourism sector, but across a wide area of activity, including new industries and services, in which Barbados could add value.
    I resist the temptation to offer any more suggestions, given what the government has done to @PLT. But it is clear that Mr Persaud and his colleagues are not doing very much, certainly not in my opinion.
    When the proverbial will hit the fan is when some foreigner, maybe a white one from out of Canada or Europe, comes to the country and tries to exploit some of the many advantages we have. Then you will hear the outcry.
    @John A Just look at adult education. We cannot even move the button on that and we have the resources, physical and human, to do so.
    Our school buildings are empty after 4pm and at weekends. We have lots of unemployed and recently retired teachers. Run some literacy and numeracy classes, for Heaven’s sake.

  9. John A Avatar
    John A

    @ Hal

    Yes but have you ever thought it pays governments to ensure the people do not have a basic grasp on economics?

    I said already who ever the PMs PR person is theu are a boss! I never see so many red herrings get pelt out that the populace bite at and in so doing avoid the serious economic reality staring us in the face.

  10. GP Avatar
    GP

    NorthernObserverNovember 29, 2020 1:20 PM

    “IN 2008, I MET HIM IN THE AIRPORT…”
    and it wasn’t until years later that he changed religions.
    CAN YOU SAY MORE ABOUT THIS?

    RE I never see so many red herrings get pelt out that the populace bite at and in so doing avoid the serious economic reality staring us in the face.
    THIS CAN NOT BE REFUTED

  11. Hal Austin Avatar
    Hal Austin

    @ John A

    Mr Jong? I understand letters and parcels for the UK are not accepted by the post office. Is this true? If so, why?

  12. David Avatar
    David

    Let Google be your friend.

    https://personal.help.royalmail.com/app/answers/detail/a_id/5317/~/international-incident-bulletin

  13. John A Avatar
    John A

    @ Hal

    Have not heard about the post office issue in the UK. I can tell you USPS in the USA have a massive backlog of parcels and can’t seem to get them delivered especially in the Florida area. For bajans sending out or expecting anything that USPS is involved in I wish wunna the best.

  14. Hal Austin Avatar
    Hal Austin

    @ John A

    I is the other way round. Postal workers in the UK work almost every day; I understand they are not delivering letters to the UK from Barbados or is it the other way round? Apparently DHL is doing the business at exorbitant fees.
    Plse say this is not true? Are our scientific experts telling us that to handle a letter may give us CoVid? I sent a letter to Barbados only yesterday.

  15. Hal Austin Avatar
    Hal Austin

    Petra Roach has just told Channel Four that the @PLT idea came from the prime minister.

  16. John A Avatar
    John A

    @ Hal

    What! Tell PLT he better seek guidance from Leslie Haynes with a claim of intellectual property violation.

    I mean they could of at least offer PLT 5 years free land tax Cuhdear. Lol

  17. NorthernObserver Avatar
    NorthernObserver

    @DrGP
    you can ask him next time you see him….it occurred during his diplomatic Canadian sojourn. What @miller may term, a come to Yahweh moment.

  18. Sargeant Avatar
    Sargeant

    About this Water Park: A few years ago when OSA was PM a water park was proposed for the Graeme Hall area and it brought out all kinds of protests from the residents of the area and environmentalists and there was some heated exchanges between OSA and Peter Allard who was the principal behind Graeme Hall Nature Preserve.

    So far if there has been any concern about this proposed water park for Brandons it has been muted, is it a done deal? Maybe circumstances have changed but an economy on its COVID knees may not be able to withstand a white elephant dressed as a gift horse.

  19. NorthernObserver Avatar
    NorthernObserver

    “Petra Roach has just told Channel Four that the @PLT idea came from the prime minister.”
    And this is current affairs. Imagine in 50 years as some historian is trying to verify events related to MAM, this will be added proof that the Welcome Stamp was her idea. GIGO.
    And why even the smartest historian with the best intentions, can be led astray.

  20. Sargeant Avatar
    Sargeant

    @David
    Did you read the article to ascertain the construction started five years ago?
    +++++++++++++
    Five years? That must take the prize of the most under reported story in Barbados, I have been coming and going for the last few years and never heard a peep so it probably didn’t raise the ire of the residents of the area.

  21. NorthernObserver Avatar
    NorthernObserver

    @Sarge
    the gent won the lottery two years ago, so it likely ‘accelerated’ after that. Still have no clue what the ‘water park’ is comprised of and precisely where it is.

  22. Hal Austin Avatar
    Hal Austin

    @ Northern Observer

    That is how deceptive official history can be misleading. It is only when you know about something that the deception becomes obvious. @PLT deserves better.
    This is corruption of morals. It is sad. And they will get away with it. When you go on about it some people say you are boring. We have had the same with the idea of a post office bank and others.

  23. Sargeant Avatar
    Sargeant

    Didn’t the PM say in the SGN by-election that all things come through her? Peter planted the embryo but she gave birth to it so it makes sense that her disciples would claim that the baby is hers.

  24. Donna Avatar
    Donna

    Oh dear me! My local mini mart and big able Emerald City supermarket shelves bare! No almond essence and corn meal for my conkies. I will have to make pudding and souse instead tomorrow and try them on Wednesday.

  25. David Avatar
    David

    @Sargeant

    #bigworks

  26. Sargeant Avatar
    Sargeant

    @Donna

    Why do you want to change the order of things? I could tolerate pudding and souse on a Friday, but never on a Monday 😉
    This is the closest thing instrumental version

  27. Donna Avatar
    Donna

    Peter cannot sue a fellow. He freely passed on the idea for their use.

    The reason why I don’t comment much on financial or economic matters is mainly that I believe most of our woes begin in our minds. I believe it is our brainwashed and damaged minds that are broken and in need of repair.

    But with respect to the NIS, what I have to say can and was easily said in a couple of posts.

    The Sunday Sun article confirmed what Artax said about the various funds and especially the severance fund. Futhermore, it showed that many on BU do not know the details, as I stated is also the case with the general public.

    Having worked in an accounts department for fifteen years, I do.

    Of course, that does not mean that we should not be very concerned about the management of the NIS on the whole. Obviously bad investment decisions were made, our changing demographics are concerning and there is a dire need to keep ALL financial reporting requirements current and compliant with regulations to confirm the extent to which we should be concerned.

  28. Hants Avatar
    Hants

    I here listening to Gabby singing ” Jack ” and he is backed by a section of the Barbados Police Band.

    These musicians are really good. Clean and flawless in my opinion.

    Gabby is still one of the Caribbean’s best.

  29. Mariposa Avatar
    Mariposa

    There is a picture of what the media call a Water Park
    The only water shown is that of the ocean
    Also inserted in the picture is some big ting a ling being pushed in the water by some locals
    Nothing more than deception at work given approval by govt

  30. John A Avatar
    John A

    @ David.

    I want you to check BU HANSARD sir and you will see when the debt restructuring occurred last year I pun this said same blog had an exchange with Walter Blackman about the devastation the debt restructuring was going to have on the NIS going forward. I get called a DEM how I miserable and don’t like de party. Well the birds come home to roost now. Because after a year of reduced interest pun de bonds the drop in cashflow of over $100M now hitting home hard. But it ain’t done there cause the $100M ain’t where it done yet. Bear wid me as i share round 2 now. Plus Mr David please commit this to BU Hansard too so that next year this time when the monthly deductions hit 40% between employer and employee for NIS I could say I tell wunna so! So how this 40,000 unemployed affecting the NIS now then let we see.

    A. People unemployed 40,000

    B. 40,000 working at $1500 a month and paying 25% of salary to NIS between employer and employee does equal

    C. 40000×1500= 60,000,000÷25%=15 million dollars a month in shortfall to the fund. Now add dat to the roughly $10 million dollars a month lost in interest from the debt restructuring is let me see 15+10= 25 x12 =300M a year.

    Lord I would like the chairman fellow to tell me how he plan to finance a $300M annual shortfall on revenue with higher unemployment and non performing worthless goverment paper and overpriced non performing real estate.

    Now wunna don’t mind me i is only a humble 1 door shop keeper in the bush using a calculator from the $3 store. I know the big brain people got Casios and thing but cud dear even pun them I sure 15+10 is still 25 x12 is still 300. But then again I only went Brumley, but I know when the biscuit van and drinks truck passing Friday you better got dem money for them!

    Anyhow I going and pack the cooler cause tomor I running a special. Buy 4 beers for 10 dollars and get the 4th one free! Lol

  31. David Avatar
    David

    @John A

    Have you seen your friend Vincent the economist?

  32. NorthernObserver Avatar
    NorthernObserver

    @Hants
    I like Dacosta Allamby. here are the words so you can sing a long

    Well ma gurlfriend crazy, listen wuh she said.
    She tell me a story, de en-eye-ess dead.
    Extend it a little, dis ting isn’t fair
    I wuk nuff nuff years, and am entitled to my share

    Endorse the en-eye-ess, and put it back in de pot
    I en care what is there, but worried bout what is NOT
    Endorse the en-eye-ess, I need my fair share
    What is dis shite, sorry de cupboards are bare

    So I calling Jenkins, looking for a bed
    I need a doctor, to examine she head
    I love my gurlfriend, but dis can’t be true
    Telling me de en-eye-ess brek, right so outta de blue

    Endorse the en-eye-ess, and put it back in de pot
    I hoping dat lot’a’bonds, wuff alot more than naught
    Endore de en-eye-ess, I really need to know
    Dat my money safe, and dem people mekking it grow.

  33. John A Avatar
    John A

    @ David

    Vincent must be up in the bush relaxing in his arm chair. You know them old fellows does got to rest regular! Lol

    He will cuss me for saying that bout him cause none of we ain’t young.

  34. NorthernObserver Avatar
    NorthernObserver

    @JohnA
    now doan mind me, but I news-ed to teach maffematiks at de Garrison Secondary, so I know. Dem numbers en right. The problem is dey should never have defaulted. Buhbaydus brek my ass. A lil cash flow ting dat was all. Effin dey had sell de Hilton it wudda fix everyting….at least for a few mumphs. Den dey cudda sell the BNTCL.
    Wha you saying is they skin de asset value, AND the revenue flow. Even my BEST student of all time could not manage that. You must be a BOSS. Why you don’t stop telling lies.

  35. John A Avatar
    John A

    @ Northern.

    Lol the truth is a hard pill to swallow. Covid is the straw thay brek the camel or jack ass back.

  36. Mariposa Avatar
    Mariposa

    Still waiting for
    a BU intelligentia to tell how govt can afford medical treatment food and lodging for people from COVID hot spots but cant afford basic supplies for QEH
    I noticed this question the Lorenzo’s and other blp lap dogs refused to touch or cant answer
    For with certainty the USA would not return such benevolency to people arriving from other countries
    Either u have insurance or you acess American Express Visa or master card to forward a deposit before being seen by a doctor
    But NO. Barbados is different lol

  37. NorthernObserver Avatar
    NorthernObserver

    @JohnA
    sadly Covid is a respiratory thing, and hastily removed all the breathing space they thought they had gained. And then exposed that, with a prior serious underlying condition.

  38. NorthernObserver Avatar
    NorthernObserver

    “but cant afford basic supplies for QEH”
    as recently as a month, under Resolution 6, a ton of money was approved for QEH/Covid/ etc
    Note specifically the last TWO (2) items

    https://www.barbadosparliament.com/uploads/bill_resolution/3e5466147af1c0009f3d47fe23a2dc15.pdf

    Head: 86 Ministry of Health and Wellness
    Programme: 366 COVID-19 Prevention and Control
    Subprogramme: 0396 COVID-19 Programme Management
    Account Code: 102 Other Personal Emoluments – $7,687,750
    Account Code: 103 Employers Contributions – $731,619
    Account Code: 206 Travel – $200,000
    Account Code: 207 Utilities – $20,000
    Account Code: 210 Supplies and Materials – $9,112,010
    Account Code: 211 Maintenance of Property – $70,000
    Account Code: 212 Operating Expenses – $3,742,000
    Account Code: 226 Professional Services – $198,486
    Account Code: 755 Computer Software – $1,464,900
    Programme: 040 Direction and Policy Formulation Services
    Subprogramme: 7045 General Management and Coordination Services
    Account Code: 102 Other Personal Emoluments – $1,095,300
    Account Code: 103 Employers Contributions – $109,600
    Account Code: 212 Operating Expenses – $860,563
    Subprogramme: 0361 Technical Management Services
    Account Code: 785 Assets Under Construction – $2,485,030
    Programme: 360 Primary Health Care Services
    Subprogramme: 0363 Laboratory Services
    Account Code: 102 Other Personal Emoluments – $506,194
    Account Code: 103 Employers Contributions – $31,000
    Account Code: 210 Supplies and Materials – $1,200,000
    Subprogramme: 0366 David Thompson Polyclinic
    Account Code: 102 Other Personal Emoluments – $469,426
    Account Code: 103 Employers Contributions – $48,116
    Programme: 361 Hospital Services
    Subprogramme: 0375 Queen Elizabeth Hospital
    Account Code: 316 Grants to Public Institutions – $10,652,000
    Subprogramme:0620 Management of COVID-19-QEH
    Account Code: 316 Grants to Public Institutions – $25,121,793

  39. NorthernObserver Avatar
    NorthernObserver

    Ya mean you didn’t get a pick as one of the Covid vice-czars (acting) at a flat rate of $25,000? I heard they were 450 people appointed to that acting post.
    Subprogramme: 7045 General Management and Coordination Services
    Account Code: 102 Other Personal Emoluments – $1,095,300

    I hear they are seeking a Czar of Economic Sustainability, I think you should apply. A friend passed it my way, but I don’t know what it is.

  40. Walter Blackman Avatar
    Walter Blackman

    John A
    November 29, 2020 4:14 PM

    “@ David.

    C. 40000×1500= 60,000,000÷25% (I know you meant 60,000,000 X 25%) =15 million dollars a month in shortfall to the fund. Now add dat to the roughly $10 million dollars a month lost in interest from the debt restructuring is let me see 15+10= 25 x12 =300M a year.
    Lord I would like the chairman fellow to tell me how he plan to finance a $300M annual shortfall on revenue with higher unemployment and non performing worthless goverment paper…”

    John A,
    I understand the point you are trying to make but I have one question.

    If you are trying to quantify the cash flow lost to the fund, should you include that “$10 million dollars a month lost in interest from the debt restructuring” ?

    Doesn’t that interest, in reality, amount to more worthless government paper being added on top of ” non performing worthless government paper”?

    Put differently, does Government make its interest payments in cash to the NIS and Severance Funds on a timely basis, if at all?

    PS: I hold the view that the bonds are being kept on the books solely to allow “political” persons to state that the NIS has $4 billion in assets and the Severance Fund $0.1 billion. It is highly unlikely that the cash will ever be fully repaid to these funds, given the severely reduced national tax base. The bonds will allow current and future Governments to kick the proverbial can further down the road. They carry only political value.

  41. William Skinner Avatar
    William Skinner

    @ NorthernObserver
    Petra Roach has just told Channel Four that the @PLT idea came from the prime minister.”
    “And this is current affairs. Imagine in 50 years as some historian is trying to verify events related to MAM, this will be added proof that the Welcome Stamp was her idea. GIGO.
    And why even the smartest historian with the best intentions, can be led astray.“(Quote)
    An idea that appeared on BU, perhaps other blogs and a newspapaper with the largest circulation, is hijacked by a third party and promoted all over the world as theirs , and this is not seen as blatant dishonesty. Maybe Peter Lawrence Thompson,will be mentioned in the Independence honors.
    I know he does not need or want it but we can’t have leaders engaged in such deliberate deception. Stealing intellectual property is a crime in Barbados.
    How can we be lecturing school prefects on leadership while we refuse to give citizens credit for their ideas.
    Peace.

  42. NorthernObserver Avatar
    NorthernObserver

    I find it disgraceful, bordering on un-patriotic, for you to even suggest, sovereign financial instruments are without financial value. And that persons may even attempt to keep instruments of no value on the books, solely for political mileage. I have every con-fee-dense, that nobody in Barbados would even attempt to pull this off.
    This aside, when you feel the next default will be? Sorry…I meant debt reprofiling. I hear Vegas tekking bets.

  43. NorthernObserver Avatar
    NorthernObserver

    @WS
    for accuaracy…it was @HA who posted…”Petra Roach has just told Channel Four that the @PLT idea came from the prime minister.”” The rest was mine

  44. John A Avatar
    John A

    @ Walter

    It is funny you should mention the thing about the interest payment. I asked earlier if the rents to the fund paid for the warrens buildings was being paid in a negotiable form or was simply a journal entry. Never got a confirmation so can’t tell you. As for the interest on the bonds I sincerely hope they are paying the fund in negotiable form as the fund badly needs the cash.

    If your concern is correct then the fund is way worst off than my numbers imply. Do you know if any interest payments at all were made in the last 13 months to the fund Walter?

  45. John A Avatar
    John A

    Northern how much of that rum and water you drink before it spill earlier? Lol

  46. William Skinner Avatar
    William Skinner

    @ NorthernObserver
    Thanks. Sorry about that. My apologies.

  47. NorthernObserver Avatar
    NorthernObserver

    @JohnA
    That was yesterday. And I had barely touched it, hence the spill. I learnt my lesson. Never drink while reading BU, especially if @ac is nearby. She gave us the daily gem earlier…something about 3% voting to the level of 70%. But you never know, she could provide another.

  48. John A Avatar
    John A

    @ Northern

    You all right Walter now got me worrying that i going get my first pension cheque and my death benefit cheque in de same envelope! Lol

  49. WURA-War-on-U Avatar
    WURA-War-on-U

    “Petra Roach has just told Channel Four that the @PLT idea came from the prime minister.”

    stop posting ideas to the blog, they don’t even want Black people to get credit for an idea in that dirty hole of a haunted house, PLT is lucky the frauds didn’t say it was cow, bizzy or maloney’s idea about the 12 month visitorstamp, that’s how repulsive and law crawling they are.

    the only idea i will post going forward is how they will not only get exposed throughout the world but dragged into some human rights court for modern day slavery, racism, exploitation etc…….that’s the only ideas they need to hear right now..

    all they do is steal intellectual and other properties and criminalize you if you refuse to let them….low class…grabbing at everything, have no shame stealing an idea, ya know ya gotta watch them with everything else too.

  50. GP Avatar
    GP

    re stop posting ideas to the blog, they don’t even want Black people to get credit for an idea in that dirty hole of a haunted house, PLT is lucky the frauds didn’t say it was cow, bizzy or maloney’s idea about the 12 month visitorstamp, that’s how repulsive and law crawling they are.
    THAT IS EXACTLY WHY I DONT POST ANY IDEAS HERE
    THEY WILL CLAIM IT AS THEIRS
    NOT ONLY THAT FOLK WILL COME HERE ON BU AND MOCK YOU AND SAY THAT THE IDEA IS NOT YOURS AS WAS DONE TO ME

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