EDITORIAL - Time to replace Shaw at Ministry of Finance

Published: Monday | December 28, 2009


We appreciate how intra-party dynamics and other political considerations may constrain the actions of national leaders. But there are times when the issues are so fundamental that they trump all other concerns.

Prime Minister Bruce Golding is in such a situation. He is faced with a crumbling economy. And after three botched attempts by the Government this year to deliver a credible Budget, it should be clear to the prime minister by now that he is in need of an economic team in which Jamaicans can have confidence.

Sadly, for all his confidence, bravado and jolly good humour, it is obvious that the finance ministry is too much for Audley Shaw and he should be spared the burden of the job before confidence in the administration's capacity to manage the economy dips even further.

It is to Mr Shaw's credit that in the nearly 28 months in the job, he has worked energetically to expand and improve Jamaica's relationship with the multilateral financial institutions as alternative sources of loans to the private capital markets. But whatever success he has had in this area has largely been offset by the poor judgement that Minister Shaw has displayed in other areas.

First, he not only failed to discern the depth of the global recession, but sought to persuade Jamaicans that whatever lay on the horizon would be of little consequence to this country. He displayed less than good judgement in removing key technical staff at the finance ministry, only to have the administration, in short order, struggling to replace the replacements. Then came the Budget fumbles, culminating with the pre-Christmas fiasco over the $21.8-billion tax package.

Internal political considerations aside, Mr Golding might argue that with a thin majority in the House and with the administration's limited talent pool, he has no one with whom to replace Mr Shaw at the finance ministry. We disagree.

It is our view that with adequate technical support either Andrew Holness, the education minister, or Dr Christopher Tufton, the agriculture minister, could adequately do the job. Both have performed with a fair level of confidence in their existing portfolios and are unlikely, as finance minister, to be perceived to be bungling as much as Mr Shaw.

Moreover, neither is burdened with the kind of partisanship that would preclude the recruitment of the best technical talent and either would bring to the job an equanimity that would help to build confidence.

Ministerial talent

Mr Golding could also strengthen his ministerial talent by giving a substantial post to Delroy Chuck, now being wasted as speaker of the House, as well as tap, by way of the Senate, private-sector skills. We recommend two corporate leaders: Richard Byles, the president and chief executive officer of Sagicor Jamaica Ltd, and Douglas Orane, the chairman and CEO of the GraceKennedy group.

Taking the route we suggest will not be easy. Mr Golding has to keep before him the circumstances in which Jamaica finds itself and the difficult job it will be to pull the country out of the rut.

Obviously, increases in taxes, as were imposed last week, are inevitable, although the jury remains out on the equity of the revised package that replaced Mr Shaw's rejected proposals. But increased taxes will have to be accompanied by a reduction in expenditure.

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