War on the Middle Class

 

 BLP Legacy (1999-2003):

                 Established a Senior Citizens Drama Group; engaged the elderly in constructive activity through structured programmes at 14 Recreational Activities Centres; staged exhibitions of craft by elderly; and launched as a major event the popular and successful National Senior Games.   

                    For some time now, Barbadians have been wondering what would have motivated the DLP to brutally snatch away the income tax concessions long enjoyed by members of credit unions, recipients of travel and entertainment allowances and subscribers to mutual funds. Especially since it should have been obvious to Finance Minister Chris “Unclear” Sinckler that doing so was bound to have devastating effects on disposable incomes and living standards. 

                     But thanks to Parliamentary Secretary Senator Irene Sandiford-Garner, we have been given invaluable insights into the DLP’s thinking. In a speech in the Senate on December 19, 2011, Sandiford-Garner in her usual shoot-from-the-hip style and like the proverbial “Grinch Who Stole Christmas,” delivered a scathing tongue-lashing on Barbados’ middle class. IS IT A SIN TO BE MIDDLE CLASS?As far as she was concerned, it was nothing but a lack of “gratitude and thankfulness” by those who raised a “hue and cry” over her government’s removal of tax allowances for credit union savings, and scornfully dismissed what she said were charges by parents that because of the tax change, “they could not pay for their children’s ballet, swimming, French and other lessons.

                     ” Barbadians were rightfully and understandably highly offended by her criticisms. For one thing they sought to make being middle class something to be ashamed of, and tended to belittle activities like “children’s ballet, swimming and French” This is ironic since she used to be paid as a Parliamentary Secretary in the Ministry of Culture and Community Development. What also made  the lambasting  especially painful and confusing was that it was made by a high profile representative of a party that once used to credit  itself with having “created” our middle class.

                Topping off her tirade, Sandiford-Garner said that since Barbados had not yet “felt the true impact of the recession”, such “middle class cry out” showed that members had “no comprehension of what hardship really is.” Such characterisation is insensitive and crass and lacks realisation that most middle class persons are less than generations away from back-breaking agricultural and other manual labour.

               MORE TO JOIN MIDDLE CLASS UNDER THE BEES But the aggrieved middle class and those who rightfully aspire to such status can take great comfort from the fact that the BLP has a proven record of consistently strengthening that group. The late Prime Minister Tom Adams legally paved the way for the transformation of credit unions into the powerful movement it now is. As PM and Finance Minister Owen Arthur not only brought almost 14 straight years of progress and prosperity, but triggered economic enfranchisement and the creation of a shareholding democracy through income tax allowances for buying new shares in public companies and investments in mutual funds, registered retirement savings plans and venture capital funds.      

           The middle class can therefore trust the BLP to make life better for it through its “Rescue, Rebuild, Restore” mission for Barbados that create more middle class Barbadians not stifle their progress.  

 

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LOOK OUT CENTRAL BANK PRINTING

 

 

 

CENTRAL BANK PRINTING MONEY

 

The vital importance of professional economics training and the experience of its practical application in government were amply demonstrated on Thursday, October 13, 2011 by two of Barbados’ most highly respected practitioners in this field, Opposition Leader Owen Arthur and Clyde Mascoll, the Barbados Labour Party ‘s lead spokesman on economic matters.

 Speaking to the media at the Opposition Leader’s office in the West Wing of the Parliament Buildings in Bridgetown, the two BLP representatives showed  the value of their training and experience to the nation and the party when they were able to reveal worrying  aspects of the economy that had not been explained by Central Bank Governor Dr. Delisle Worrell in his recent  review of the third quarter performance of the economy.

 Devaluation of Dollar on the CardsFormer Prime Minister Arthur made it clear that the BLP took very seriously its obligation to draw to the attention of the public any matters that threatened to undermine the country’s stability and the welfare of citizens. In this vein he said he was putting at the centre of public discussion a matter of the utmost seriousness since it related to our ability to maintain the value of the Barbados dollar.

 Arthur, Finance Minister for nearly 14 straight years, warned that the printing of money by the Central Bank on a large and sustained basis could lead to the devaluation of our currency and lamented that Worrell had the opportunity to draw this occurrence to the people’s attention at last week’s review, but had failed to do so. The Central Bank Governor using language which the ordinary Barbadian could not easily unravel, should have alerted the country to the fact that the Central Bank was now the chief financier of the government’s large deficit to the tune of $150 million and a recent Bank document had revealed that the Bank intended to continue and increase this procedure of the printing of money for the rest of the financial year.

The Political Leader of the BLP explained that money printing by the Central Bank had been indulged in since government had already virtually exhausted all other sources of financing. He recalled that Finance Minister Chris “Unclear” Sinckler would have earlier spoken on major policy occasions like the 2011-2012 Estimates and the 2011 Budget debates and had not mentioned that government planned to print money, something that the Medium Term Fiscal Strategy had not mentioned either.

Central Bank Board Must Take ResponsibilityArthur chastised Worrell for not taking the public into his confidence to explain how Barbados had come to such a sorry pass whereby the printing of money was at the core of government financing. For while the law allowed for such temporary and short term financing by the Central Bank, there was no legal provision or practice for the Bank to be the large scale and sustained financier.

 Declared Arthur: “We are now on the brink and if this continues Barbados will be on the slippery slope of devaluation and all that this state entails. Government must pull us back from the brink.” However, we now have a “gloriously incompetent”  Minister of Finance and an accomplice in Worrell who would not do what needed to be done and give the public an unvarnished account of our finances. He pointed to the fact that the Bank had given different versions of the rate of growth of the economy and had said Barbados should expect a “spurt” in growth , but the exact opposite had happened.

Furthermore, the printing of money was the worst thing that could be done with a fixed exchange rate currency whose value we would not be able to maintain if the printing of money continued.  Arthur said that as a former member of the Board of Directors of the Central Bank , he knew that directors had to see that the interests of the country were protected and they now had to intervene and put the institution on course to ensure the stability of the economy, since the Bank had now “gone rogue” and had a “stabilisation coalition ” in action.

 The Statistical Department ‘s survey on unemployment was based on scientific methods used all over the world, and these had been replaced by something Worrell had concocted because the department’s findings had proven to be an “inconvenient truth” to him and the government. This meant that a man like Worrell with professional training had ignored science  because he and others were intent on hiding from people the truth about unemployment. 

 Productive Sectors Mismanaged by DLP The BLP leader said he had already deemed the Fiscal Medium Term Strategy a  hoax since government was not building the productive capacity needed to put the country in a good position for life after the recession, and projects such as Merricks, Foul Bay, Pickerings, and Four Seasons had failed to materialise since the government did not know what it was doing., to the point where we were falling behind, were being left behind and could go under.

 As far as he was concerned, the Central Bank no longer could be believed since its integrity had been undermined, and if the printing of money was not stopped we would pay a heavy price. He said he had already called for the resignation of Worrell, but now it was time for Prime Minister Stuart to act. Economist and Former Minister of State in the Ministry of Finance Clyde Mascoll also lent his voice and expertise in support of the condemnation of the extensive and massive printing of money by the Central Bank.

 He noted that while historically the NIS could be relied upon to help finance the fiscal deficit, it was now being forced to get involved in on-budget matters and so was no longer able to take up government securities, at a time when the commercial banks were running away from both short-term and long-term government securities. This meant that the Central Bank had now positioned itself to be the main financier for government’s excessive spending.

The part-time lecturer in economics at UWI, Cave Hill, said that Barbados was now delicately poised and what was going on now was what had happened in Jamaica in the 1970s since Barbados was at a stage where government was spending $500 million more than it was earning. Barbados had already been categorised as being near ” junk bond status”, a condition in which it had never been before.  Follow the link for video of the Opposition Leader’s Presentation:  http://www.youtube.com/watch?v=RwlrGlGiXbs

 

 BETTER MUST BE DONE!

What DLP Mirror Image

 

 

 

BLP Legacy: First celebration of Emancipation Day on August 1, 1997;established a Facilitation Unit for Returning Nationals to streamline their return home with duty free movable assets; and rejected the USA’s acrimonious Shiprider Agreement to successfully negotiate an arrangement which respects Barbados’ sovereignty and independence.
 
Minding other people’s business
At first the temptation was to regard the frequency with which Irene Sandiford-Garner has sought to “take up the firerage” of women whom the DLP alleges have been “unfaired” within the BLP, as attempts to deflect the public’s attention from the colossal failure that her assignment to the Queen Elizabeth Hospital (QEH) has clearly been.
 
For we well remember that in March 2010 when Senator Sandiford-Garner was shuffled to the Ministry of Health as Parliamentary Secretary, her specific responsibility was to oversee improvements in QEH operations and determine whether enhancement would be through on-site refurbishment or the building of a new facility elsewhere.And the QEH languishes.
More than 18 months later the public is no wiser as to the long-term future of the QEH, while the meagre improvement works there have been enveloped in controversy over contracts for air conditioning,  and electrical operations. There are other matters such as reported cost overruns , failure to keep completion dates and the mysterious disappearance of equipment. DLP’s abysmal record
But her most recent utterances have made it clear that instead of directly criticising the BLP she was in a roundabout way really lashing out at the DLP, clearly conscious of how poorly her party had treated its women compared to the BLP’s outstanding record in this regard. How else can one understand her statement that “it could happen to anyone of us who would wish to step up”
 
First female Cabinet Minister in 2008Sandiford-Garner must have been remembering that in the 15 years in government (1961-76 ) the DLP never made a female a  Cabinet Minister, even though Senator Odessa Gittens and Mrs. Gertz Eastmond, MP had been Parliamentary Secretaries, with the latter being patronisingly told by her leader Errol Barrow that he would have to “teach her the facts of life” when she tried to assert herself. Back in government for 1986-94, the DLP again did no better than to make Mrs. Maizie Barker-Welch ,MP a Parliamentary Secretary, only seeing it fit to elevate two women to Ministerial status in 2008.The BLP blazes trail with women.

        But the BLP’s leadership in championing the women in politics is unmatched. It started with the first General Election under Universal Adult Suffrage when (Dame ) Ermie Bourne became Barbados’ first female MP, and the party never looked back. Back in government in 1976 (Dame) Billie Miller became the country’s first female Minister, and between 1994 and 2008 Owen Arthur appointed five female Ministers, Billie Miller, Mia Mottley, Liz Thompson, Lynette Eastmond and Cynthia Forde. In that time the BLP also had two female Deputy Prime Ministers, Billie Miller and Mia Mottley, with Miller later becoming the first female Senior Minister.Yet another broken promise.

 
The BLP has had Billie Miller as Chairman, while the DLP is yet to elect its first female President. The DLP’s 2008 Manifesto pledges  to work “towards having 50 % of the DLP slate female by 2016″, only to have four female  candidates now, the same as last election. Again the BLP leads with five females. What female mirror image do you have of yourself, DLP?  

BETTER MUST BE DONE!

Agard All The Way

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Incompetence of Government exposed
 
“There is nothing sacrosanct about being a Minister. It simply means that if a stupid man becomes a Minister all you will have is a stupid Minister” This statement has come from a DLP supporter as he resigned from the board of a statutory corporation in Barbados. While we do not know the Minister by name the gospel favourite “swing low sweet chariot” does come to mind!
 
Incompetence and lack of integrity of the DLP Government was the subject of the Christ Church West AGM which was held at Bonnet’s on July 17, 2011. The meeting was hosted by the representative Dr. William Duguid and Candidate-elect Dr. Maria Agard. The branch installed its new executive and declared itself ready for the task at hand of retaining the proud record of the Barbados Labour Party in that Constituency. Dr. William Duguid commended Dr. Agard for her sterling performance and urged the branch to put their full weight and support behind her.
 
Tyrone Lovell and Angelo Lascelles candidate for the Presidency of the League of Young Socialists both set the room ablaze as they outlined incident after incident of mismanagement by the current administration, leading to the pain and suffering of many Barbadians.
 
 
Lynette Eastmond was the featured speaker of the night. She focused on the three budgets that had already been delivered by the DLP, two under the late David Thompson and one under Chris Sinckler. Ms. Eastmond noted that all three budgets had the same structure:
 
·        BLAME THE BLP FOR DLP LACK OF VISION
·        BLAME THE WORLD RECESSION FOR DLP LACK OF IDEAS
·        TELL BARBADIANS THAT THERE ARE OTHER COUNTRIES WORSE OFF
·        SET OUT A SERIES OF DISJOINTED MEASURES BEARING NO CONNECTION TO ANY WELL THOUGHT OUT POLICY
·        IMPOSE A BUNCH OF DRACONIAN TAX MEASURES ON BARBADIANS
 
Ms. Eastmond described the DLP Policy position as “sit and do nothing, hope for the best and tax Barbadians to death”. She said that the imposition of a heavy tax burden would continue to have a strangle hold on the economy. The BLP position was to keep the tax burden light, let the economy grow, raise revenue from the growth, prepare the economy for the time when the recession would end.
 
BUDGET 2010 – A SERIES OF BLEEPS AND BLUNDERS
Chris Sinckler’s budget in 2010 had left the country in a state of confusion. The country was left wondering whether the draconian VAT increase would also affect the hotel sector. The answer was “maybe”, “no” and then it was “yes”. And then the legislation was amended to make sure Sinckler had his way – another move which would help to depress the tourism sector, the sector that was supposed to pull the country out of the recession. Further after Sinckler’s maiden budget we did not know whether the allowances were going to be removed in income year 2010 or 2011? – a basic point that any Minister of Finance should know. She noted that this additional burden on taxpayers had also depressed business in Barbados as it has severely handicapped the ability of the middle class to purchase goods and services.
 
CHRIS STILL UNCLEAR
The former  Senator said that Moody’s, Standard & Poor’s and now the Governor of the Central Bank had all revealed that the  Chris Sinckler’s policies were not working. According to the Governor in the latest economic review:
 
·        TOURISTS HAD SPENT LESS
·        THERE HAD BEEN NO BUILD UP IN THE FOREIGN RESERVES
·        CORPORATION TAX RECEIPTS HAD FALLEN BY ABOUT HALF
·        VAT RECEIPTS HAD FALLEN BY 2%
 
Ms. Eastmond pointed out that there were certain basic principles in taxation that Sinckler should know and one was that if the rates are too high it is likely that people would try to avoid paying the taxes altogether, further the consuming public would buy less.
 
The Former Minister of Commerce noted that Chris Sinckler had run out of ideas so now after doing a bit of reading had suddenly dawned on him that he should restructure the economy. But this was nothing new he had talked about this in 2010 and had done nothing.  She told the packed hall that they should note that the Government already had a medium term economic and fiscal strategy and these had said nothing about restructuring the economy.
 
THAT BOAT HAS ALREADY SAILED SINCKLER
Ms. Eastmond noted however that the restructuring of the economy had started years ago. While she did not have time to go into all the examples she pointed out that the BLP under Owen Arthur had recognized Information Communications Technology as the third gateway for Barbados along with the airport and seaport. It was for this reason that computer assisted learning had been introduced to schools, Community technology programmes were put in place, all Government offices had  become computerized and citizens could access them via the internet. The result of this was that  Barbados now had internet usage ratios that exceeded Europe and were four and a half times that of the Latin American region.
 
 
BETTER CAN BE DONE, BETTER WILL BE DONE
 

DLP Totally Lost

Central Bank Governor Proves Moody’s Downgrade Justified

The Central Bank Governor of Barbados has given his Review of the Barbados Economy for the six-month period: January to June 2011 and Barbadians are now in a much better position to judge for themselves whether the Internationally respected – Moody’s Rating Agency – was on a witch-hunt or whether it was justified in its downgrade of Barbados’ Credit Rating, and the forecast it gave on Barbados prospects for the next 18 months.

The other two issues that should be on the minds of ordinary Barbadians are, the Government’s Medium Term Fiscal Strategy (MTFS) and the Budget or the economic policies the DLP Government has so far outlined.  Even at this stage, it is crystal clear that the DLP is even failing to meet the targets outlined in that MTFS, while it is also painful that its economic policies are not working and will not work.  In short, Barbados is in peril and on a fast free fall from prosperity to crisis and at a time when the DLP does not know what to do.

When you compare what Moody’s said with what the Central Bank Governor has said and would not say (in the context of what past DLP Budgets and that MTFS was expected to have done but have not and will not achieve) you begin to realise that the crisis in Barbados seems far worst that this global financial crisis and the one in the 1920’s combined.  What is happening in Barbados was foreseeable and preventable but it was manufactured, in large part – as a result of entitlements without the matching creation of enterprises! 

A competent Government, with a Team who has well-honed skill, would have steered Barbados away from this – as has the Government of Guyana and that of Indonesia, which – despite that country having had several earthquakes, tsunamis’, floods and mudslides – still records some 5.5% growth.

We now know that despite a 2.5% increase in VAT, receipts are down by 2%.  Could it be that the base of the economy is shrinking (some 10,300 unemployed since January 2008) and that Barbadians are taxed to the max?  Whatever the real reason, the Barbados economy is in crisis and Barbadians must be worried, especially since it is now known that neither the DLP’s best plan (it’s MTFS) nor its economic policies, are working.  Barbados is adrift! 

Increased taxation was intended to close the gap between revenue and expenditure but that gap has widened.  The deficit was supposed to come down but it has grown much bigger.  This tells you that in circumstances where revenue is not coming in, the economy could not be growing and that in-fact, the base is shrinking.  So what exactly would have spurred that alleged growth?   All the Central Banks Governor has done is confirmed that the Moody’s downgrade and the Standard & Poor’s caution – are justified. 

The up-coming Budget is therefore a non-event because the economic policies introduced by the DLP did not work.  The economy is not growing and the country is incapable of any further taxation.   What we also know is that as was stated by Moody’s and now confirmed by the Central Bank Governor’s Report, not even the next 18 months but the next six month in Barbados, will be dread.  So that, when the DLP tells you that it will now seek to do through the up-coming Budget – what the MTFS failed to accomplish, you know that it does not know what it is doing and that it (the DLP) is engaging in a mere time-wasting exercise.

This brings me to the story of Greece and why it was finally allowed to join the EU.  A few weeks ago, concern was raised that the view of the Barbados Statistical Services Department and that of the Central Bank – differed significantly, as regards true state of the Barbados economy.  Whether Barbados has a Government it can trust, is one thing but a Government it can no longer afford, is an entirely different ball-game.

This link should therefore make interesting reading:

http://www.telegraph.co.uk/news/worldnews/europe/greece/7646320/Greece-why-did-its-economy-fall-so-hard.html

Downgraded

BARBADOS NEAR JUNK BOND STATUS
No doubt you  heard about Moody’s downgrade  in which Moody’s said that their position was based on:
 
1.    The elevated levels of Government Debt;
 
2.    The fact that the Government’s debt ratios are likely to deteriorate further over the next 12 to 18 months to levels that are no longer consistent with an investment grade rating given the small size and limited diversification of Barbados’ economy.
 
Moody’s has also downgraded Barbados long and short-term foreign currency bond ceilings.
 
CATASTROPHIC POLICY FAILURE
The Leader of the Opposition the Rt. Hon. Owen Arthur , former Finance Minister for some 14 years, has been asked by the media to give his views as to what Moody’s downgrade means for Barbados.
 
Mr. Arthur said  that Barbados was facing the possibility of catastrophic policy failure in terms of the management of the economy, for the first time in its history. He viewed it within the context of: (1) the fact that there was a downgrade: (2) the fact that the outlook was negative, meaning that things will get worse in Barbados  and (3) the fact that this came at a time when Chris Sinckler had instituted a set of draconian measures which were meant to avoid this downgrade, but they clearly had not worked.
 
POLICIES DRAG ON ECONOMY
Mr. Arthur pointed out that in the last  Budget debate when the economy appeared as though it might be on a growth path he had said the DLP  should allow the economy to grow and the increase in revenue should come from the growth in the economy.  However, Sinckler did not give the economy the opportunity to grow since he immediately placed four or five new taxes on the economy. These taxes had put a drag on the economy and  contributed to the downgrade which Barbados was now experiencing.
 
The problem which  therefore started out as one in the macro economy, had now become a major problem at the level of enterprises and households. Even the banks in Barbados are now laying off people. The households are suffering. Over the weekend they faced the prospect of an increase in bottled gas prices.
 
Mr. Arthur pointed out that the Barbados Labour Party had requested a bi-partisan approach to the crisis facing Barbados so that a series of measures should be put in place and be overseen by a bi-partisan commission.  But this has been ignored by the Dems.
 
NO CONFIDENCE IN SINCKLER
The former Prime Minister and Minister of Finance repeated the charge that Chris Sinckler’s amateur hour must come to an end. He recalled how Sinckler would put measures in place only to reverse himself immediately after. This type of fumbling would not instill any confidence in those who desired to invest in the Barbados economy. He also pointed out that the Central bank of Barbados had been giving the people of Barbados a gross misrepresentation of how the economy was performing. Barbados needed to change course and there must be accountability at the highest levels. The Minister of Finance and the Governor of the Central Bank needed to go.
 
 
 
 

Drug Service Sick

BLP’s Legacy includes: Formation of the Barbados Workers Union in 1941 and introduction of Holiday With Pay for workers.
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Barbadians had long thought that it was virtually impossible for this DLP Government to perform worse with anything than it has over our extended economic deterioration in general and the poverty creating, non-stop price increases in particular. Now the DLP has gone and proven them painfully and dangerously wrong with its callous so-called “reform” of the all important Barbados Drug Service. Opposition Leader Owen Arthur has rightfully described it as “The best case of how not to govern.”�
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Everyone agrees that the state of one’s health is at the very core of one’s existence, whether it involves an individual or a nation. Everyone but the DLP, that is. For why else would it have so callously ignored the warnings of the BLP and highly experienced and trained non-political professional health care workers, and so carelessly plunged ahead with its so-called “reform” of the Drug Service in a way that has brought severe psychological� and physical strain to people all across Barbados, especially the poor and most vulnerable, in numbers not yet possible to calculate if we are to judge from the daily heart-rending outpourings on radio call-in programmes.
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So touching and tear-inducing were these genuine tales of woe from ordinary, salt-of-the-earth infirm, aged and financially stretched Barbadians, that the would-be� “know it all” but proven highly incompetent Ministry of Health, late last week had to hastily despatch a three-member team to try to do damage control on a badly muddied public image. People were expecting Minister of Health Donville “I Don’t care if I lose votes” Inniss to have come and personally defended the policy which he had defiantly said was not subject to review. No such ministerial accountability, for according to one of the radio spokespersons he was travelling that same day. For two weeks in the idyllic charm and quiet of Geneva to attend a conference.
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�Not the sense of priorities the public would justifiably expect from a government that boasts of Barbados being a society not just an economy. Only to implement draconian measures reportedly to save $12 million without taking such basic steps as first ensuring that public pharmacies had adequate stocks to meet obvious increased demand, the required increased number of pharmacists, and enlarged physical space and other facilities.
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�Instead, unnecessary suffering and confusion have been inflicted on the public at a time when they can least bear, by among other things, a tax disguised as a “dispensing fee” that will lead to poor compliance by those unable to pay private pharmacists and possibly lead to increased strokes, heart failure and heart attacks from uncontrolled hypertension, as well as increased complications from uncontrolled and poorly controlled diabetes. In addition, patients can no longer get from public pharmacies free or for payment, more than 100 drugs for such widespread conditions as abdominal pain, high cholesterol, hypertension, sinusitis and hay fever, asthma, varicose veins and haemorrhoids.

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�These are but some of the foreseen dire consequences ignored by a DLP government more intent on pleasing the IMF than accepting sound local advice, The BLP supports reform of the Drug Service but not one that is botched and rushed at the expense of the public that had seen much better in this and other areas from the BLP and other previous administrations.
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Please take part in our online poll on prices at www.blp.org.bb and prepare for our sizzling summer cruise “Bees on the Seas” June 25th, 2011 10.00 p.m – 2.00 a.m MV Harbour Master

Stuart Not In Control

Barbadians are understandably being very suspicious of the recent frenzied attempts by other DLPites speaking in support of Freundel Stuart to assure the public that the PM is firmly in charge and will eventually directly speak to the nation on pressing matters of state, but in his own sweet time.
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�And this sense of distrust is highly justified since memories are still fresh of the extensive and elaborate web of media manipulation the DEMS shamelessly executed over many months in a desperate plot to convince people that the late David Thompson was not gravely ill. Up to the very end of his life.
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And just as after a period of time it was not possible for the DLP to continue the deception over the unvarnished truth of Thompson’s physical health, similarly people are treating with increasing scepticism the proclaimed state of Stuart’s political heath in the flurry of announcements by those speaking in Stuart’s name, self-appointed or otherwise in the form of Chris Sinckler and Denis Kellman, seeking to make the public believe that the Prime Minister is still calling the shots. And who can blame the doubters when it is recalled that Stuart was not the unanimous choice of the DLP parliamentary party to become Prime Minister following Thompson’s death. Instead, a notable number did not favour him, thereby forming the basis of future internal opposition to him.
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Now it seems� that the anti-Stuart faction that had been waiting to launch its attack has started political hostilities, no doubt emboldened by the sense, realisation and evidence that the public, suffering and deceived under the DLP, has begun to withdraw the popular legitimacy it had bestowed on both the Dems and Stuart. The withdrawal from the DLP would have come after three straight years of the poorest economic and other management record a Barbadian government had ever amassed. The withdrawal from Stuart has followed nearly six months of service as Prime Minister during which he has embarrassingly failed to stamp his authority as the undisputed leader of the nation, in the way to which we have traditionally become accustomed through Grantley Adams and Tom Adams, Errol Barrow, Erskine Sandiford, Owen Arthur and David Thompson.
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Now the popular question being asked is whether Stuart is really in control, or if his political future is being controlled by the self-proclaimed kingmaker faction dominated by Hartley Henry, known all along to favour Sinckler over Stuart, the latter having played into their hands by in nearly six months not sharing his national vision or commenting meaningfully and regularly on the troubling economy and other issues.� People are contrasting Stuart’s shortcoming with the fact that in some six days of becoming Chairman of the Barbados Tourism Authority, Adrian Elcock has been speaking out at length on where he expects that institution to go.
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The result is that far from these endorsements by Sinckler and Kellman boosting Stuart’s now remote Prime Ministerial standing they have had the opposite effect. For in the perilous economic and social times Barbadians have decided that now more than ever they demand and deserve a Prime Minister who, except for being incapacitated , is prepared to lead from in front in thought, word and deed. There are characteristics which an effective leader must project and personify and for which nobody and nothing can substitute.

Happy Easter

Easter� is traditionally considered the most signifcant period in the Christian experience� when we pay due reverence to the sanctity of the Crucifixion and Resurrection and all that they represent in daily life.
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The officers and members of the Barbados Labour Party wish to extend a Blessed Easter to you and your family and trust that you will use this crucial occasion� to not only reflect on� matters religious but to also further embrace, accept and appreciate your fellow human beings whether they be of your faith or not.

Economic Disaster under DLP

This is the first in a series of engagements with the media which we propose to hold this year to deal with matters of national significance.

By a very wide margin, the economic crisis which faces the country stands out as the matter which merits the greatest focus at this time.

Members of the Economic Policy Team of the Barbados Labour party have therefore been assembled to provide a perspective on the critical economic and financial issues with which the country is challenged.

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1. 1.����� SUPPORT FOR NATIONAL RESPONSE TO RECENT CHALLENGES TO THE INTERNATIONAL BUSINESS AND FINANCIAL SECTOR.

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We propose to be constructive and will avoid opposing merely for the sake of opposing.

Hence, we wish to begin by pledging the support of the Barbados Labour Party Opposition for any Legislative initiatives and other programmes that may be proposed and undertaken by the Government and the Private Sector to fend off two new recent challenges by the OECD/Global Forum, and the British Government that can imperil the successful functioning of our international business and financial enterprises.

At the turn of the century, we had to mount a major campaign to prevent the OECD from blacklisting Barbados as an uncooperative tax jurisdiction.

We were successful in that campaign to the point where Barbados was placed on the OECD�s white list as a jurisdiction which meets the highest standards in relation to the exchange of tax information, and the level of transparency on which we insist regarding the behaviour of our international business and financial enterprises.

Barbados is being challenged again, and in a way that can significantly disrupt the development of our international business and financial sector.

A recent OECD/Global Forum Phase 1 Assessment of the transparency of Barbados� arrangements regarding the exchange of tax information, has effectively placed Barbados in a category of countries which do not meet OECD standards and hence puts our nation in a position of having to once again face the threat of being stigmatized as an uncooperative tax jurisdiction.

We do not share the view of the OECD, and hold that its position is based more on form than substance.

The Government has signaled its intention to shortly amend the Income Tax Act to enable it to exchange tax information with countries with whom it has initialed or signed new Bilateral Tax Treaties, but where the Treaties have not been ratified by the other Contracting Parties.

The Barbados Labour Party Opposition will support any reasonable initiatives to safeguard the operation of our second most important sector.

An agency of the British Government (HMRC) has recently classified Barbados as a Category 3 Country for its perceived inability to meet OECD standards on the exchange of tax information, and in so doing has stigmatized Barbados as a country from whom it expects difficulties in obtaining information on tax evasion.

This runs entirely counter to both the spirit and letter of cooperation between Barbados and Britain on tax matters since out Treaty for the Avoidance of Double Taxation was signed in 1970.

This matter is made especially threatening for Barbados because penalties amounting to 200% of the tax evaded by enterprises judged to be non-compliant in respect of the payment of income and capital gains tax are now intended to be applied on British firms operating in Barbados in accordance with the UK 2010 Finance Act.

We are aware of the efforts that have been made to bring the tax exchange provisions of our 1970 Tax Treaty with Britain in line with the standards set by the OECD 2008 model Agreement.

We therefore believe that the actions proposed by the British Government are unnecessary, draconian and, unaddressed, will do great damage to the Barbados economy.

Again, we will support the national effort to fend off this economic threat.

1. 2.����� THE STATE AND MANAGEMENT OF THE PUBLIC FINANCE.

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The BLP Opposition wishes to voice its very strong concern regarding the state and the management of the public finances, and to call upon to Government to take a drastic change in the course and the manner in which it is managing the country�s economic and financial affairs.

Late last year, when the �Budget� was presented, the Government was on course in that income year to realizing a deficit of almost $540 million in its capacity to meet its operating expenses.� This does not include the addition to its deficit that comes from its spending on capital projects.

Such a deficit cannot be sustained.

Government sought to address this by a series of measures which would amount to just over $150 million in a full fiscal year, leaving over $380 million in further adjustments to be soon undertaken by yet unspecified tax increases and expenditure cuts.

Since then the Government has brought to Parliament requests for supplementary expenditure amounting to $141 million, and has provided Guarantees for loans in excess of $329 million, most of which are unlikely to be paid by the entities on whose behalf the guarantees have been issued.

It is also highly probable that additional requests for supplementary spending will be brought before the end of the financial year.

By such measures, the Government has added and is continuing to add to the extent of the financial crisis with which it will eventually and soon have to deal.

In all of this, there is no evidence of any recognition on the part of the Government of the need to bring its spending under control.

Instead, it is going in the opposite direction and at a pace which, unchecked will undermine the economic and financial stability of our nation.

During the Budget Debate, we proposed that a Special Commission be established to make recommendations pertaining to the adjustment of Government expenditure in a way that would protect the vulnerable, enable us to continue to meet strategic national economic goals, and to help bring the fiscal deficit down to manageable proportions.

We pledged that the Opposition would help to shape a national consensus on the adjustments to be made to Government expenditures, on the receipt of the recommendations of the proposed Special Commission.

Regrettably, this advice has been ignored, and Government continues to act unilaterally on the matter.

We remain also greatly concerned that in addition to the increased spending that has been sought through supplementaries, there are a number of other financial commitments which the Government has made or will have to face in the immediate future that could weaken the country�s public finances.

Chief in this regard is the proposal by Government to acquire and to spend substantial sums on the development of the property at Sam Lords Castle.

We see no justification for public expenditure on such a project, and urge Government to abandon its plans for acquisition, especially since we are aware that they are reputable and well funded private investors who have an interest in making the investment themselves.

Government also needs to spell out a financial plan as to how it will treat to commitments that it cannot escape and which will affect public spending in the near future in respect of the settlement of matters such as:

• CLICO
• 3 S Project
• Pierhead Marine Project

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Economic growth and development best take place in an environment of confidence based on the soundness and predictability of Government�s policy formulation and implementation.

On recent evidence pertaining to the treatment of the VAT on Hotels, access to education at UWI and the treatment of entertainment and travelling allowances, the Government of Barbados� formulation and implementation of its policies have entered the realm of the erratic.

This is exactly the kind of approach to management of Barbados� economic affairs which the country cannot afford.

In addition, the new taxation arrangements relating to allowances have already started to impose great hardship on taxpayers who face the additional stress of having to accommodate the increase in the VAT and Excise on their already distressed circumstances.

We urge that whenever possible, some relief is offered and we wish today to propose one.

1. 3.����� REMOVAL OF UNNECESSARY HARDSHIP CAUSED BY ENERGY PRICING POLICY.

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In the recent Budget Presentation, the Excise Tax was increased by 50% on gasoline.� At the same time the VAT was increased from 15% to 17�%.

These increases were put into effect at a time when the price of energy products is rising internationally. ��Also, the VAT is paid on the value of the product which includes its CIF value and the excise tax.

This arrangement means that whenever the CIF value of energy products increases, the additional amount paid by the consumers not only pertains to the change in the CIF value itself, but also includes an additional amount of Value Added Tax that accrues.

The prices of energy products are therefore being inflated in part by the tax take of the Government.

This arrangement is taking a toll on the consuming public.

In 2006, the Barbados Labour Party Government faced with a similar scenario committed itself to the following policy which it faithfully followed:

�In the event that the price of crude oil continues to increase, the Government will reduce the excise tax to ensure that the tax take on energy remains the same.�

We wish to recommend that the Government adopt the position as stated in 2006 to bring relief to the consuming public.

1. 4.����� GROWTH AND DEVELOPMENT.

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The possibility of growth this year by the Barbados economy will require an extraordinary and bumper performance by the tourism sector.

This is so for the following reasons.

The tax policies being pursued by Government virtually rule out any possibility of growth accruing from increased spending by consumers.

The adjustments that Government will have to make to reduce its own spending will not create an environment conducive to growth.

In addition, the major private capital investments frequently cited by Government as being capable of kick starting economic activity, are not ready nor available for such a purpose.

As such, a burden will fall on the tourism sector not only to restore its former vibrancy, but to perform at a level to compensate for the shortfall in activity in other sectors of the economy.

The early evidence from the present winter season does not justify any confidence that such will be realized.� Our Tourism Team will address this.

Four years of economic stagnation will hold disastrous consequences for our ability to maintain the quality of life of our people.

In addition, strains are already being felt in the financial circumstances of even some of the major private sector enterprises.� The capacity of the private sector to contribute significantly to the resurgence of growth and national development is being substantially reduced by the effects of this persistent recession. A profile is provided of the recent financial performance of some of our major enterprises.

The Government has to stop using the excuse of global recession as an explanation for the lack of growth in Barbados. The international economy grew by almost 5% in 2010, and is slated to grow strongly this year.

Barbados needs to be put back on a path of growth and development as the only feasible means by which the extraordinary crisis in the state of our public financing, the crisis in the financial circumstances of households, the deterioration in the financial position of firms of all descriptions, and the emerging crisis regarding the creation of employment can be simultaneously addressed and resolved.

We know of no feasible plan to address these urgent matters as one undertaking.

In the circumstances we judge that great value can accrue from the convening of a Special National Engagement to settle on a National Recovery Programme.

Economic crisis does not recognise nor respect political distinction.

The Barbados Labour Party Opposition therefore commits that it will participate fully and constructively in any such Special National Engagement intended to develop a Recovery Strategy to bring our nation out of this economic crisis that threatens the very foundation of Barbados� stability and progress.

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