'Wi lose offah Bruce'
Published: Monday | December 28, 2009
Garth Rattray
Many were hoping that a Bruce Golding-led government would herald a badly-needed era of visionary planning, perspicacious manage-ment, a reduction in corruption and crime, fiscal turnaround and a better life for all.
However, once in office, several signs (unfulfilled promises, multiple budgets, unprecedented resignations, firings and 'retirements' at the highest managerial levels in government) suggested that life under the Jamaica Labour Party (JLP) would bring more of the same 'politics as usual', public sector disharmony, an inability to tackle our fiscal and security problems and a severe paucity of innovative ideas to move the country forward.
When the worldwide financial recession loomed large in the distance, a frightened country was reassured with bold pronouncements that we would definitely be spared and, in fact, may even benefit from it. When the bottom fell out, the Government blamed the combination of previous People's National Party (PNP) mismanagement and the global recession (that they said would never affect us) for our economic despair. When put under pressure to generate (internal) revenue, the administration responded by announcing that the General Consumption Tax (GCT) would again be increased and become almost ubiquitous.
Everything taxed
It was proposed that we pay GCT from the cradle to the grave, for things going into us and for things coming out of us, for freedom from the darkness of ignorance and from the darkness of night. The plan called for us to pay more taxes for fuel and almost all basic food items (even condiments). That plan would further tax everything including electricity and petrol and certainly cause a sharp rise in inflation - which would impact our lives, our savings, our ability to produce and even crime.
Widespread protestations precipitated a review (albeit unilateral), but the initial manner of widening the tax net and raising more revenue was unthinking, insular, rigid, oppressive and dictatorial. It would have stymied economic growth and over-burdened the poor, who are already teetering on the abyss of destitution.
In our democratic society, this admin-istration should have discussed/debated a myriad of kinder, more palatable taxation options, before deciding on and announcing the proposed package on Thursday, December 17. Dr Omar Davies' proposal to raise 21.8 billion by increasing the tax on 'government paper' (Bank of Jamaica certificates of deposit) from 25 per cent to 33 per cent was countered by Prime Minister Golding's argument that the move may result in a compensatory increase in interest rates. No discussion to modify that idea or any other was entertained, even though we were promised bi-partisan co-operation when the JLP took office.
PLAN NEEDED
We cannot tax our way out of debt, yet there was no mention of a plan for authentic economic recovery. We need a plan to reduce the foreign exchange leaving our shores to pay investors in foreign-owned organisations operating on our soil. Offer some sort of incentive for keeping it here as a long-term investment. We need a plan to produce for export or to assemble products for overseas markets. Our few offshore teleservices can't fulfil our needs. And, perhaps most importantly, we need a plan to import far less than we are doing now - too many 'entrepreneurs' are simply importing and retailing items.
This administration needs to 'wheel and come again'. The loss of confidence in the PNP led to their defeat - people wanted and needed palpable change. Therefore, much was expected from the Golding-led administration. A good friend of mine expressed her profound disappointment when she lamented, "wi lose offah Bruce" - a sentiment shared by many Jamaicans (JLP and PNP alike). Hopefully, he will rebound.
Garth A. Rattray is a medical doctor with family practice. Feedback may be sent to garthrattray@gmail.com or columns@gleanerjm.com .