Can not hear you PM

Last weekend’s announcement by the Governor of the Central Bank of Trinidad and Tobago that the financial state of Clico Insurance is far more precarious than originally thought requires the David Thompson Administration to provide total disclosure to the country on the financial health of Clico Barbados.

In particular, the Barbados Labour Party is calling on the Prime Minister and Minister of Finance, who has overall responsibility for the regulation of insurance companies, to state specifically whether or not Clico’s Statutory Fund is in deficit, and if so, to what extent. The Statutory Fund is a legal requirement for all insurance companies in Barbados. Each company must place in trust enough assets to match its liabilities to policyholders. This is to protect the policyholders in the event that there are difficulties in meeting the obligations to policyholders.

We view this information as being of extreme importance since the state of health of this Fund could determine the financial future of thousands of Barbadian policyholders, whose retirement income is inextricably linked to whether Clico is able to meet its commitments to them.

Our leader, Mia Mottley put these questions to the Prime Minister last Sunday night at the Party’s Meeting opposite Tyrol Cot:

1)     “Whether the Statutory fund required by Section 25 of the Insurance Act to be maintained by Clico for its long-term insurance business, when disaggregated, is in deficit? If so, what corrective actions will the Minister of Finance put in place to protect the 38,000-plus policy holders and pension fund holders in Barbados?

 

2)     Will the Prime Minister state whether any funds, owned by the National Insurance Scheme of Barbados, are held by Clico or any of its related companies or subsidiaries? And if so, how much at January 15, 2008 and how much today at February 15, 2009?

 

3)     Will the Prime Minister state whether in his capacity as Attorney-at-law before becoming Prime Minister he ever had occasion to address and settle the legitimate concerns in relation to a deficit of the statutory fund in another Caribbean country?

 

4)     Will the Prime Minister state if Clico has now offered the Government of Barbados a place on the Clico Board? If so when was it offered and when does he propose to accept it to protect the taxpayers’ exposure?

 

5)     Given the public concern that has been expressed in Trinidad over the actions of the Minister of Finance, in the interest of full transparency and accountability, will the Prime Minister follow the lead which Owen Arthur and I took and declare his assets and more importantly, where they are held, as of January 15, 2008, December 31, 2008 and February 15, 2009.”

Miss Mottley also called on the Chairman of Clico Holdings Barbados, Leroy Parris to resign as chairman of the Caribbean Broadcasting Corporation. “The failure of CBC to carry on television, not just my comments relating to Clico, the Trinidad Memorandum of Understanding and the assistance offered by the Central Bank of Barbados, but now also the comments of the Governor of the Trinidad Central Bank last Friday is now clear to all,” she said

This is against the background that Voice of Barbados carried it in their newscasts at 12:30 p.m., 4:30 p.m. and 5:30 p.m on Friday 13^th February.

There is a legitimate expectation that those stories would be carried by CBC as they have been carried by other sections of the Press. CBC cannot be appearing to carry only statements that are favourable to Clico but not those that place legitimate questions on behalf of the persons exposed and the public interest. This is an abuse affecting freedom of information and the public’s right to be informed.

After all CBC does not stand for Clico Broadcasting Corporation.

Tyrol Cot

This weekend’s announcement by the Governor of the Central Bank of Trinidad and Tobago that the financial state of Clico Insurance is far more precarious than originally thought requires the David Thompson Administration to provide total disclosure to the country on the financial health of Clico Barbados.

In particular, the Barbados Labour Party is calling on the Prime Minister and Minister of Finance, who has overall responsibility for the regulation of insurance companies, and thus the protection of policyholders, to state specifically whether or not Clico’s Statutory Fund is in deficit, and if so, to what extent. The Statutory Fund is a fund required to be maintained by all insurance companies in Barbados. Each company must place in trust in Barbados enough assets to match its liabilities to policy holders. This is to protect the policy holders in the event that there are difficulties in meeting the obligations to policy holders.

We view this information as being of extreme importance since the state of health of this Fund could determine the financial future of thousands of Barbadian policyholders, whose retirement income is inextricably linked to whether Clico is able to meet its commitments to them.

The Barbados Labour Party is serving notice now that if the Prime Minister fails to answer these questions as a matter or urgency, it will take whatever appropriate action it deems necessary on the floor of Parliament.

Specifically, we want to ask the Prime Minister:

1)     Whether the Statutory fund required by Section 25 of the Insurance Act to be maintained by Clico for its long-term insurance business, when disaggregated, is in deficit? If so, what corrective actions will he, as Minister of Finance, put in place immediately to protect the 38,000-plus policy holders and pension fund holders in Barbados?

 

2)     Will the Prime Minister state whether any funds, owned by the National Insurance Scheme of Barbados, are held by Clico or any of its related companies or subsidiaries. And if so, how much at January 15, 2008 and how much today at February 15, 2009.

 

 

3)     Will the Prime Minister state whether in his capacity as Attorney-at-law before becoming Prime Minister he ever had occasion to address and settle the legitimate concerns in relation to a deficit of the statutory fund in another Caribbean country?

 

4)     Will the Prime Minister state if Clico has now offered the Government of Barbados a place on the Clico Board and if so when was it offered and when does he propose to accept it to protect the taxpayers’ exposure?

 

5)     Given the public concern that has been expressed in Trinidad over the actions of the Minister of Finance, in the interest of full transparency and accountability, will the Prime Minister follow the lead which Owen Arthur and I took and declare his assets and more importantly, where they are held, as of January 15, 2008, December 31, 2008 and February 15, 2009.

Additionally, I call on the Chairman of Clico Holdings Barbados, Leroy Parry – to resign as chairman of the Caribbean Broadcasting Corporation. The failure of CBC to carry on television, not just my comments relating to Clico, the Trinidad Memorandum of Understanding and the assistance offered by the Central Bank of Barbados, but now also the comments of the Governor of the Trinidad Central Bank on Friday (when he declared that the situation with the statutory funds is much worse and may be as much as $10 billion in the red) is now clear to all.

It is against the background that Voice of Barbados carried it in their newscasts at 12:30 p.m., 4:30 p.m. and 5:30 p.m., on Friday 13th.

I call for Parris’ resignation because persons who may be legitimately raising queries about Clico, given the 38,000 policyholders in Barbados – have a legitimate expectation that those stories would be carried by CBC as they have been carried by other sections of the Press. CBC cannot only carry his press conference and that of the Prime Minister, stating that all is well with Clico, while ignoring everyone else. This is an abuse affecting freedom of information and the public’s right to be informed.

Above all else, we want Mr. Parris to understand that CBC does not stand for Clico Broadcasting Corporation.

 

15^TH FEBRUARY, 2009

 

Politics of Exclusion

THOUSANDS OF BARBADIANS are asking themselves how and why after years of making their contributions, they now find themselves at the bottom of the National Insurance pension pool since the Prime Minister’s Black Monday Budget. They also want to know what justice there is in contributing to an earnings-based fund only to see others who made smaller contributions receiving the same pensions that they do, less a dollar here or there.

 

 

When you add the increased cost of a driver’s license, higher road taxes, more expensive petrol, rising professional and trade fees and of course higher prices for food and medicine, there is a lot of grumbling among working class and lower middle class senior citizens these days. For the Government to be reminding them that they voted for change is like a stinging hot slap across the face.

Once again the Government is using its position to hand-pick people for its own advantage without any regard for equity in the system. We support an increase in pensions for those at the bottom, whether they are contributory or non-contributory.

However, we recognize that any manipulation of the National Insurance Scheme has far reaching consequences, not only on the viability of the fund but on its validity. There are tried and tested methods for changes to the Scheme which this Government has studiously ignored in furtherance of its own selfish ends.

If this was the only example of a Government failing to seek qualified advice we might be more charitable in our criticism, but the agenda is patently clear and does not favour fairness for the majority.

In fact, there is now an all out assault on the culture of responsibility that once made Barbados the envy of our Caribbean neighbours, large and small. Ask yourself where is the fairness in a Government that seeks to disadvantage industrious, working-class Barbadians who paid down on their National Housing terrace units, by refusing to refund their deposits while promising other tenants who made no such effort their units free of cost.

What could be more unfair than this? The fact is that if you reach the 20-year tenancy qualification after April, 2008, there is no free house for you.

Or take the much-touted constituency councils that are supposed to give the people a say in running their own affairs. How can the average constituent feel that he or she has a voice if from the outset they cannot choose the people who will represent their interests on the council.

What fairness will exist in a system where the people with the say are appointed by the Minister? If the Government is truly interested in empowering people in their own communities they would remove the politics from the constituency councils, establish community councils and let people choose their representatives from among themselves.

We intend to fight for this basic democratic right for all Barbadians, regardless of which political party they support. In fact, our leader has made it quite clear that political parties should not be involved in the selection of council members at all.

Bajans are beginning to see through the game being played by the changelings and they don’t like the rules. What they like even less is the bloopers, bleeps and blunders that accompany the Government’s feeble attempts at introducing ill-conceived policies, or the total absence of solutions to everyday problems.

Just listen to conversations in the supermarket aisles, at the doctor’s office, in the rum shops or the bus stands. More and more the phrase one-term Government is creeping into the discussions.

Put that in yuh song, Hartley.