THE repurposing of the Catastrophe Fund is a step in the right
direction, as it will assist in sustaining the business community at
this time.
That’s according to Senator Dr. Lynette Holder. The Government
senator, who is also the Chief Executive Officer of the Small Business
Association of Barbados, made the comments during the debate on the
Catastrophe Fund in the Senate earlier this week, as she spoke of the
devastating impact that the COVID-19 pandemic has had on the business
sector.
“You look across the pages of the daily papers and you see the
comments, you hear the cries. Where I sit, Mr. President, I have to
deal with this on a daily and weekly basis. I am saying to this
Chamber, that businesses out there are suffering as a result of this
catastrophe, as a result of this disaster – no fault of their own, Mr.
President, no fault of their own – because as I said COVID-19 came
upon us suddenly,” she stated.
Her comments came as she pointed out that prior to COVID-19, Barbados
was on the right track in terms of its fiscal position. She said that
Government’s Barbados Economic Recovery and Transformation (BERT)
programme has, over the last 18 months, been able to “steady the ship
of state” to ensure that the economy did not “fall off the cliff”.
“We know that there was a target of a six per cent surplus that was
met. We got the glowing reports from the IMF ... and so we were on
track to put our economy on a growth path – then here comes this
catastrophe,” she stated.
Holder continued, “Now what is the role of Government in these
circumstances? ...Government has to be able to rise to the occasion
and defend and protect the vulnerable, I hold to that view strongly
and as I said Government is about governing, and so when we have
crises, when we have these kinds of situations, Government is, Mr.
President, the one key player in the overall society that has to do
more to protect, that has to do more to preserve, that has to do more
to steady this ship and I’m satisfied that that’s what we are seeing
in the repur-posing of this Fund.”
The senator made the point while noting that Government has to ensure
that the business sector does not fall through the cracks, and she
said the Fund will provide the necessary help and provide a “buffer”
for businesses that are in need.
“That in my view is worthy of commendation,” she stated.
She maintained that with just 8,500 formal businesses and just as many
operating in the informal sector, contributing to employment
generation in the country and contributing significantly to economic
activity in Barbados, it is imperative that support be given to the
business sector. Holder went further, stating that the interest-free
loans to be provided to eligible businesses through the proposed Value
Added Tax (VAT) Loan Fund, which is to be capitalised through the
Catastrophe Fund, will help businesses to maintain employment, help
cover operating costs and reinvest in their business model to adapt to
the new digital environment. (JRT)