Leader of the Opposition and Member of Parliament for St. Michael North East, Mia Mottley, being embraced by supporters.
OPPOSITION Leader Mia Mottley says while a wide cross section of Barbadians received a few “trinkets” from Finance Minister Chris Sinckler during his Budget presentation on Tuesday, the full level of Barbados’ debt was not disclosed.
In her response in the Lower Chamber yesterday evening, Mottley, said: ‘’This government owes the NIS, responsible for all of our pensions, $330 million or more for contributions, for reimbursement of non-contributory pensions...”
“He announced an increase of non-contributory pensions by $3 million, but he didn’t tell the country that he didn’t pay the NIS for the pensions that they already owe since April 2015. For the last 16 months, the government has not given the NIS a cent of reimbursement for paying the old people’s non-contributory pension. He didn’t tell the House that he owes them money for the contributions for employees; he didn’t tell the House that he has not paid a cent in rent for any of the three buildings that the government either rents or the one which they have to pay for the CXC, and that the arrears to NIS is now 330 million and climbing.
“He didn’t tell the country that separate from the arrears to the NIS, the University is almost another $200 million. SBRC continues to claim they are owed about $20 million. UCAL another $20 million...VAT refunds and Income Tax refunds.”
She suggested that rather than 72 hours of debate, stakeholders ought to have been brought around the table to engage in full and frank discussion. “To allow people to know what it is we face and how we may best address, recognising we must share the burden of adjustment fairly.”
The Opposition Leader expressed concern about reimbursements, particularly as it returns to VAT. “Barbadian businesses on the brink of insolvency. They cannot get money back, having to incur overdraft charges to keep their businesses afloat. And this government has arrears for them. I want him to tell the story,” she said.
“On top of the $330 million to NIS, UWI. Without having access to the files and to the facts, we have just counted up over 900 million in arrears, and we have not started to go through 500 departments as represented in the Estimates. This is serious! So when Bajans think you are getting out of this, we may face another 10-15 per cent of debt on top of what is being declared,” she charged.
Mottley also questioned the timing of the Budget, and suggested that it is being held before an IMF meeting scheduled for Monday.
She said the Budget will have a serious impact on Barbadians and urged them to go to supermarket and take note of main times which she predicts will see a significant increase within the next two months.
Mottley also challenged the high level of money being printed by the Central Bank of Barbados. “A restrictive fiscal policy stance like what you got yesterday [Tuesday] again with the $160 million, an expansionary monetary stance like what you get with the Central Bank printing money, aggressive fiscal consolidation programmes that were outlined in the financial statements and budgetary proposals of 2011, 2012 and 2013 are not going to achieve their stated objectives without significantly undermining economic growth and investor confidence.
She noted that economic growth is the barometer used by investors and rating agencies while considering economic stability. (JH)
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