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The crossing of the floor by Ralph Thorne has generated some interest in the political landscape in Barbados. Obviously his crossing was timed to coincide with the tabling of the 2024-2025 Estimates and ‘Budget’ debate.

From all reports Thorne’s prosecutorial style resonated well with a public starved of muscular representation in the Lower House. His delivery during the Budget reply contrasted starkly with Joe Atherley’s mundane style if not substance.

The blogmaster like many is looking forward to a similar level of intervention when the Public Accounts Committee (PAC) is convened. In our system of government which attempts to mirror what is practiced in the United Kingdom, the PAC is one of the most important committee of parliament meant to hold government’s feet to the fire regarding disbursement of public monies.

Its main functions are to see that public moneys are applied for the purposes prescribed by Parliament, that extravagance and waste are minimised and that sound financial practices are encouraged in estimating and contracting and in administration generally.

UK Parliament

The Mottley government is not accustomed to being asked hard questions in parliament, evident by the self-aggrandizing and pithy nature of responses by members of parliament. The degree of apathy and cynicism which characterizes the public’s interest in politics has reached a dangerous level. A quality system of government is only as good as the quality of participation by citizens. In the absence of quality people participation, the servants are forced to anoint themselves the masters.

The blogmaster was intrigued by Prime Minister’s response to one of several queries by Leader of the Opposition Ralph Thorne regarding a government sponsored entourage of 67 people to Abu Dhabi. Prime Minister Mottley has done well to elevate her international profile and in the process drag Barbados along. All admit Barbados’ international brand prior to 2018 impersonated that of the introvert and recluse Freundel Stuart. Who will forget how some countries began to openly poke fun at Barbados. The government should not forget however that there is an expectation and role for an opposition in parliament to oppose and ask questions. The public will have to be discerning to strip away the political blustering.

parliamentary opposition (in a multi-party system) with an official leader of the opposition, which generally takes on an adversarial role,[12] presenting arguments against the government’s policies.

Westminster system

There is a sensible path Mottley must travel considering the perilous state of the economy. Her forays in the international arena cannot be at the expense of what concerns citizens on the ground. It is commendable the government has been attracting grant funding for important projects. However, it is reasonable for the opposition to ask if a 67 member entourage was necessary to trek to Abu Dhabi. Mottley’s emotional rant in reply about flying business class and sharing apartment on overseas trips was for the gallery.

There is a reason the Constitution recognizes a Leader of the Opposition in the Lower House. It is unfortunate the electoral system that has served us well since independence was exposed in recent elections. It is up to the sensible among us to work to implement improvements required for good governance and not succumb to political opportunism.


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60 responses to “Wait a minute PM!”

  1. Cuhdear Bajan Avatar

    I am wondering, since I like Saint Paul am among the chiefest of sinners, can I still join the Coalition of the Righteous?


  2. Do pension taxes limit growth?

    Once again, the feedback on abolishing pension taxes in Barbados was large and completely positive. Honestly, “large” is an understatement. It was humongous. That is the honest truth. The discussion on abolishing pension taxes is an actual national conversation as opposed to the fictitious ones said to be “needed” but never had. Moreover, this is a national conversation now past both “emerging” and “emerged”; fully arriving at “ripe for action”. What will we do now? Will we act or will we kick the can down the road for another generation or two?

    In the 2003 Daily Nation article Pensioners Make Case For NIS Tax Breaks the Barbados Association of Retired Persons (BARP) argued that “National Insurance contributions and pensions enjoyed tax exemption . . . until 1992 when both exemptions were withdrawn.

    “As a consequence, no tax relief was allowed in respect of the contributions paid and National Insurance pensions were subject to tax. It is considered that the situation where a person who has funded his/her pension out of taxed income also pays tax on the pension when it becomes payable is, in effect, double taxation and unfair.

    “Since the burden of taxation is better carried during a person’s working life than after retirement, BARP strongly urges that, in order to correct the present situation as explained above, tax exemption should be granted to National Insurance pensions while the disallowance of a deduction for contributions to the scheme is continued.”

    Seeing that this issue goes at least as far back as, not 2003 but, 1992 (when I was born) we have a totality of at least 32 years of seniors arguing for relief. That is nearly one and a half generations of Barbadians; and this issue is potentially much older.

    Tax treatment

    Yes, relief came over successive administrations (including this one) but the conversation is beyond relief; the overwhelming majority of people want complete abolition. Thus, conversations about tax treatment before or after pension payments, as some are having now, are irrelevant in the face of the deeper conversation about whether we, as a people, consider pension taxes right for our way of life in the first place!

    The attuned mind can tell that this issue of taxing pensions is both a nationally unifying issue and one which affects the largest part of the electoral pie, particularly where the oldest among us are those most likely to vote. That is a worldwide and national fact, especially where the majority of the electorate is closer to “old” than “young”, as is the case in our “ageing society”.

    Barbados, like most other English-speaking Caribbean countries, has a delayed workforce in which young people are more dependent on their older family members for longer periods of time than in other parts of the world.

    As one reader put to me in a letter, “I am a pensioner. And I feel so drained when tax time comes around. Not only do you have to pay but at the same time you have to live . . . What the tax collector doesn’t understand is that your extended household depends on that pension which can make a difference between a well adjusted home environment and youngsters looking to others for financial assistance.”

    Depending on pension

    Youth dependence on parents and grandparents is real! We previously addressed this reality but it requires repetition and there you have it. The reality is that pension taxes, like energy taxes, strike at the root of everything, including the household where you live and business where you earn money to live. Consequently, care is needed when structuring these taxes. And we must also be careful about how we discuss adjustments to them.

    In regard to the statement: “What the tax collector doesn’t understand is that your extended household depends on that pension.” My friend, the tax collector does understand. Moreover, it is most reasonable to say the tax collector cares.

    The issue here is not about understanding or caring but the ability to pivot out of taxing pensions. The key question for policy-makers is filling the “hole” left by reduced “revenue”. However, often missed is the marl that fills the hole.

    That marl, I suggest, may come from increased spending due to increased disposable income. In fact, did you know that 70 million American grandparents spent US$179 billion on grandchildren in 2019 alone? Put that way, pension taxes may actually be a tax on growth.

    Dr William M. A. Chandler is a published political economist, legal scholar and business consultant. Email wma@auxomni.com.


    Source: Nation


  3. HIGH-RISK SOEs

    Government may have to bail out cash-strapped entities

    By Shawn Cumberbatch

    shawncumberbatch@nationnews.com

    Government may have to allocate millions of dollars to continue bailing out some cash-strapped state-owned enterprises (SOEs).

    A new Fiscal Risk Statement from the Ministry of Finance says there is evidence that a number of SOEs, including the Barbados Agricultural Development Marketing Inc. (BADMC), the Caribbean Broadcasting Corporation ( CBC) and the Transport Board are likely to be short of cash and other liquid resources needed to pay their debts this year.

    The authorities say this means that “given the traditional reliance on Government to settle arrears of the SOEs in times where they have been cash-strapped, there is a high risk that these entities may require unbudgeted subventions during fiscal year 2024/25”.

    In recent supplementaries approved by Parliament before the last financial year ended on March 31, $4 million was allocated to settle outstanding arrears of the Transport Board, and $2.5 million was voted “to meet the expenditure for the payment of pensions and operations of CBC”.

    There was also $4.6 million for the BADMC “to enhance water solutions under the [Farmers’ Empowerment and Enfranchisement Drive] programme by expanding the irrigation networks including pumphouses and distribution piping at Wakefield, Spencers, Bath and Mount Poyer”.

    Weak revenue growth

    In the 2024 Fiscal Risk Statement, which is a requirement of the Public Finance Management Act of 2019, the Ministry of Finance said “weak revenue growth for most commercial enterprises and a high reliance on Government subventions to meet operating expenses have meant consolidated net losses of commercial public enterprises before subventions”.

    “A number of SOEs have been deemed insolvent as current assets are unable to cover liabilities. Additionally, some commercial entities’ revenues have not fully rebounded post peak pandemic,” it reported.

    “This had led to an accumulation of short-term liabilities that must be settled to avoid an untenable arrears position for the public sector. The financial performance of public enterprise poses potential risk to Government as financing shortages necessitate increased transfers to these enterprises. This includes the settlement of short- and long-term liabilities.”

    Consolidated net loss

    The report said “the consolidated net loss of commercial public enterprises before subventions totalled $49.9 million for fiscal year 2023/24, compared to $226.4 million for fiscal year 2022/23”.

    It added: “Non-commercial entities registered losses of approximately $164.7 million for fiscal year 2023/24 compared to $139.8 million for fiscal year 2022/23. Overall, liquidity ratios generated for the current financial year reflect medium and low risks for the commercial and non-commercial SOEs, respectively.”

    The BADMC, CBC and Transport Board were listed among the statutory entities with negative debt-to-equity ratios, indicating they were insolvent. The challenge facing CBC, the Transport Board and other SOEs is short-, medium- and longterm in nature in several instances.

    “Solvency ratios generally indicate whether the entities have sufficient cash flow to meet their long-term liabilities and thus measure the financial health of the entity,” the Fiscal Risk Statement explained.

    Source: Nation


  4. Another speech.


  5. Another speech; another oversized scarf.

    I prefer the words from the Rev. Al Green


  6. Surprised, or maybe I am not, that nobody has attempted to connect the dots on this newfound UAE connection.
    GAIA, then hiring from their ranks, all we need now is for Sheik Mo or one of his sons to send a horse for the Gold Cup.


  7. mo betta likka


  8. drink up

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