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| L-R- Peter Phillips & Portia Simpson- Miller |
Who
would have thought that a little girl from Woodhall in St. Catherine would
become Prime Minister of Jamaica, a common phrase used by the Most Honourable
Portia Simpson-Miller, Prime Minister of Jamaica. Mrs. Simpson Miller is known to speak for the poor
and most vulnerable so it was a bit surprising that the first budget of her new
administration would have hit the poor so hard.
Back in 2010 when the then Finance Minister Audley Shaw did a similar
tax package, the then Opposition leader Portia Simpson threatened to lead
island wide protests, she said ‘ I am ruling out nothing, all cards on the
table’. She called the package cruel,
unjust and insensitive. Now isn’t it ironic that the very thing she chastised
the then government about she is now doing? Andrew Holness leader of the opposition in his
budget presentation said that ‘What has
been presented is not stimulus but potential toxic shocks to remaining sectors
of the economy that have been the lifeblood of our economic recovery, including
tourism, telecommunications and business process outsourcing, agriculture and
small businesses’ How can you bite the
hands that feed you? It is evident that
no thought process went behind this budget and the administration tried to tap
into any area in order to get much needed funds not thinking about the ripple
effect.
Civil Society/ Sugar Divestment
As a
people there are certain principles that we must uphold regardless of who is in
charge, however it seems like the goal post has shifted since the PNP took
office. In 2007 to December 2011 we had
such active civil society groups; everybody had a comment to make about
everything that was done by the Jamaica Labour Party. It is interesting that we
are not hearing from these people and that the general reaction to this budget
is so different from that of 2010. I am also
amazed that the very comrades who chastised the then administration are now
finding excuses for this budget instituted by Dr. Phillips even though the PNP
broke a solemn promise to the Jamaican people. It was Portia Simpson Miller
while on the campaign trail in St. Thomas who said "My platform will promise nothing that we are not sure we can
deliver" but it was her administration that did the direct
opposite. The PNP promised to removed GCT on electricity which would give a
break to the poor and the manufacturing sector instead they increased the GCT from
10 percent to 16.5 percent and the threshold to 300kw hours. Prior to the reading of the budget it was
Phillip Paulwell who said “There is a commitment
that was given to the people of Jamaica which we intend to fulfil,” When
quizzed about the promise, Peter Phillips responded by saying "A
commitment was given in relation to GCT and by raising the threshold, we have
in fact relieved all except the highest consumers of electricity." This is such an insult to the intelligence
of the Jamaican people and I am amazed that we sit and accept this explanation
from the minister. We deserve to get an updates on the IMF deal; while in
opposition the PNP, along with civil society would often ask the government to
give updates to the people. The previous
administration had covered much needed ground on the issue of tax reform but
since the PNP took office we have not heard anything further on this much needed
reform. Civil society should be the one to chastise the administration from
breaking its promise and to question them on
issues of national importance, but instead they have rolled over and played
dead.
During the same week Agriculture Minister Roger Clarke during
his sectoral presentation tried to create a smoke screen by disclosing the deal
made between the JLP and the COMPLANT International Sugar Industry Company
Limited. He told the house about the tax incentives received as part of an
agreement to purchase government-owned sugar factories. This is a mechanism by
the PNP to score cheap political points and to remove the attention from the
tax package. It is the norm for
government to broker deals with investors.
The only other solution was to keep the sugar company on the budget and
try to recover the money through taxation or to close the sugar factories and
put thousands of people who are employed directly and indirectly out of a
job. The toll road investors have been
given 40 years to control the toll income, this was an agreement inked that the
PNP. They also negotiated the present contract with the Jamaica Public Service
Company. It is not unusual for
successive administrations to broker certain deals which will encourage
potential investors. It is commendable
that the JLP could have gotten such a deal in the middle of a recession. It is time we stop playing politics and focus
on investment which will help us as a people.
Solutions
My solutions to the gap in the budget are very simple; we
need to cut the Jamaica Emergency Employment Programme (JEEP). It is costing tax payers too much for work
that can be done by the National Solid Waste Management Authority and the
National Works Agency. We need to focus
on long term investment for our people, yes we all need jobs but at what cost? It is pointless to
have a quick fix to our problems and then raise taxes as the solution.
It is
also proposed that we revisit the issue of free healthcare. Those who can pay must pay and while it is a
tough decision to make it must be done.
We need to institute a health card system where the people of the
country apply to the government. An
agency of the government should assess each applicant and then issue a card
that will give them free healthcare at all government operated institutions. Of
course there will be challenges at the start, but overtime we can enhance this
system and save the government well needed funds. The government must understand that taxation
will not solve the problem, it will only force more people to find creative way
to evade; investment will take us out of this crisis not taxation.
