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Mottley: Solid waste tax unfair

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The Municipal Solid Waste Tax is simply a bad and unfair tax and the Government of Barbados must do right by its people.

Opposition Leader Mia Mottley levelled the charge today while addressing members of the Press on the impact the new tax on Barbadian society.

Speaking from the conference room of her offices in the Public Building, Mottley said: “Government must do right by the Barbados Association of Retired Persons. The Government must do right by the various private sector organisations that have spoken, from the BPSA [Barbados Private Sector Association] to the Chamber of Commerce to the hoteliers, who will feel it most because they have the largest investment capital in terms of real estate.

She also pointed out that people who live near to commercial operations and coastal areas “will pay a higher amount than people who live in the country.

Opposition Leader  Mia Mottley.

Opposition Leader Mia Mottley.

“These things cannot be right. All of us accept that the Government has a revenue problem, but you cannot get blood from stone. If the economic activity
is not taking place, you are not going to get people able to pay that which they do not have,” she added.

Mottley charged that the irony of the tax was that the majority of the commercial banks in Barbados whose profits were still there unlike other businesses, rent office space and therefore were not liable to pay the tax.

“Large land developers, people who buy 20, 30 40 acres of land, and may not have started the process of building on it, will not be asked to pay the tax,” she added.

“They have large capital bases and intend to build houses for people, but they do not have any buildings on the land as yet. They will not pay this tax.

She also pointed out that “town Houses will have low site values because they represent a density on a piece of land such that the value is in the building, but not the land. And the majority of people who live in Town Houses are middle to upper middle income,” she noted.

“I happen to know that in relation to some one set of town houses, where the values are $500,000 to $600,000 for the buildings, the Solid Waste Tax is $120 and $130, but an old lady living on 5,000, 7,000 square feet [of land] in St Michael or St James may well be paying $250, $300, two to three times what that person in that town house is paying. That cannot be right,” Mottley argued.

Mottley pointed that other governments around the world had repealed taxes, as she reiterated her call for the Government to do right by the people by repealing the Municipal Solid Waste Tax Act.

 


STUDY BLOCK

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Inter-generational theft!

That’s how the president of the Guild of Students Damani Parris today described the current financial packages on offer by some leading commercial banks, which have made available loans to the University of West Indies (UWI) students to assist them in covering their tuition costs.

Parris, who also levelled the same charge against the Government, has rejected the proposed financial help saying the packages are “overly harsh” and the interest rates being charged are both “absolutely ridiculous” and “alarming”.

During a press conference at the Cave Hill Campus, the Guild Presiident said he had been receiving numerous complaints from frustrated students who were now unsure if they would be able to return to school or would have to abandon their studies because they had not qualified for bank loans.

He said there were some individuals, who had actually accepted loans on condition that they must complete their studies. However, the Guild President said many could not accept the offers because they simply could not afford the interest rates, which varied from 2.5 per cent to 16 per cent for commercial institutions.

“To request 16 per cent on a student loan is unheard of in the general student loan market speaking from the experiences of non Barbadian cases,” Parris said.

“The fact that 16 per cent is even considered is a little bit alarming and it seems as if we are being the victims of what can only be described as inter-generational theft.

“It is very unfortunate that not only are we victims of inter-generational theft on the side of the Government, but also on the side of even the institutions that are supposed to offer loans to the future of the country,” Parris complained.

“We are going to be these persons’ future customers and this is what we are being offered now? It is absolutely ridiculous in the opinion of the Guild of Students!”                  he stressed.

Insisting that the current conditionalities for accepting the loans were too onerous, he cautioned students that “if you take this loan tomorrow, by the next month you have to start paying back interest on the amount taken.

“That is simply unsustainable for most Barbadian households. The average Barbadian household would not be able to attain a situation where they are paying 16 per cent on a loan of tens of thousands of dollars. It is unattainable for the majority of working class households in the country, if not all of them,” he said.

Given the current concerns, the president said the Guild believes the commercial banking sector needs to urgently sit with representatives of the student body and the University to discuss tailor-made packages that would benefit the students and the institution.

The Guild President also plans to raise the matter with Minister of Finance Chris Sinckler next week during a scheduled meeting.

However, he said they were still awaiting responses from Prime Minister Freundel Stuart and Minister of Education Ronald Jones to their requests for a meeting.

anestahenry@barbadostoday.bb

 

Bar threatens court action over tax

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The Barbados Bar Association is threatening to take the Government to court over the new Municipal Solid Waste Tax.

The association is objecting to what it said was an informally notified policy decision taken by the Barbados Revenue Authority to link the issuing of land tax certificates to the full payment of the tax.

President of the Bar Tariq Kahn said such a position had no legal ground. As a result, the Association has written the Chairman of the Authority cautioning that if it did not get a response to its concerns by the July 28 deadline for payment of the municipal levy, the Association will take the matter to the Supreme Court.

“As the issuance of the land tax certificates under the LTA (Land Tax Act) has a crucial impact on the timing of completion of property matters, we would appreciate having your response at your very earliest convenience.  “Should we not hear from you by July 28, 2014, the Barbados Bar Association, as an interested property owner itself, is prepared to apply to the High Court for a declaration that the withholding of land tax certificates for any reason other than non-payment of land tax under the LTA, is ultra vires, and for an order of mandamus to secure the issuance of certificates once the land tax is paid,” stated Kahn.

The contentious policy, according to the association president, is that land tax certificates verifying the payment of land tax, would only be issued when the Municipal tax was paid in full.

“It is our understanding that the reason given for this stance is that the Municipal Solid Waste Tax is regarded as a lien over the property concerned,” he said.

But he said when the Bar reviewed both Acts, including the subsidiary legislations, it could not find any legal connection between the two separate taxes.

“Nor do we interpret any part of the LTA to say that the issuing of a land tax certificate confirming the payment of land tax depends on any other taxes being paid,” he added.

The Bar head also argued that the Land Tax Act provided that a valid certificate issued by the Commissioner certifying that all tax due on the land has been paid or that no tax is due on the land, is required in order complete the conveyance and certain lease processes.

Kahn also contended that in contrast to the LTA, the Municipal Solid Waste Tax Act does not state that the solid waste duty was a charge or lien on property.

“And so it does not seem that unpaid solid waste tax can have effect or otherwise prejudice a property owner’s rights to deal with his property in accordance with the LTA or any other legislation,” reasoned the Bar president.

The Association also wants to know if the tax is not yet payable, then how can a certificate be withheld for non-payment.

 

Shortsighted!

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It is meant as a major revenue-earning measure for Government and one that will put millions of dollars into the Treasury.

But Opposition Leader Mia Mottley today issued a stern warning to the Freundel Stuart administration that it could end up losing more money than it makes from the collection of the Municipal Solid Waste Tax.

Speaking to reporters at a press briefing at the Opposition’s Office, Mottley, who was strongly backed up in her argument by fellow lawyer and Opposition MP Edmund Hinkson, said a stipulation by the Barbados Revenue Authority (BRA) that the municipal tax must be paid in full before a land tax certificate is issued to a property owner could result in the loss of 10 per cent of the expected revenue to the Treasury.

“As everyone would know there are several lawyers who at this time would be processing documents for the transfer and sale of properties for clients. With this new stipulation, Government is holding out for the 0.3 per cent Municipal Solid Waste Tax, but losing 3.5 per cent in Stamp Duty and Property Transfer Tax or almost 10 more in taxes in a land transactions,” explained Mottley.

“It is a decision of a confused mind,” she added.

Expanding on Mottley’s observation, Hinkson, who is the parliamentary representative for St James North, said:

“The major and immediate direct implication of this stance is that no sale or other transfer of property in Barbados can be completed until the Municipal Solid Waste Tax has been paid, since under the Land Tax Act, the Registrar of Titles can only stamp and record the document of sale or transfer if a valid land tax certificate is produced.

“The BRA is clearly acting ultra vires in law by taking this policy decision,” Hinkson charged.

“Municipal Solid Waste Tax, unlike land tax, is not a first charge by statute on the land in respect of which it is being levied. It is not a lien or encumbrance on any property. The Municipal Solid Waste Tax Act has not given the BRA the legal power to adopt this position which it has taken. The BRA cannot act on its own whim and fancy outside of the laws as enacted by the Parliament of this country,” he added.

Hinkson, who is a practising attorney-at-law, further argued that “the policy decision, until reversed, will in fact deprive the Government of hundreds of thousands of dollars in stamp duty and vendors property transfer tax which are both payable at the combined rate of 3.5 per cent of the purchase price or value of the property on its transfer.”

He contended that as Minister of Finance, Chris Sinckler should have given written directions to the BRA indicating that it has no legal power to adopt such a policy that is so contrary to and in breach of the existing Laws of Barbados.

Hinkson also warned that the could face legal action if it does not reverse its stance in the very near future.

The St James North MP dismissed also claims made by Sinckler that the Municipal Solid Waste Tax has to gain parliamentary approval to be extended beyond one year, pointing out that he could either lower or raise the percentage rate without parliamentary approval.

He called on Sinckler to repeal the Act, a decison which he claimed the Opposition would readily agree to at the next sitting of the House of Assembly on Tuesday.

nevilleclarke@barbadostoday.com

 

Where are our thinkers?

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Education Minister Ronald Jones believes the region’s people should desist from practising self-doubt as they confront economic challenges and their impact
on education.

Jones has further urgied administrators and educators of higher learning to refrain from this way of thinking.

The Minister made the plea yesterday as he addressed the official opening of the 13th Annual International Conference of the Association of Caribbean Higher Education Administrators (ACHEA) in the Roy Marshall Teaching Complex of the University of the West Indies (UWI), Cave Hill Campus.

Ronald Jones

Ronald Jones

“Don’t let us have the self-doubt which says to us that we cannot make good out of what we have. We in the region are in fact persons with great ingenuity . . . We should not be into self-doubt as we confront the challenges as they impact on education.

“What it is saying to us is that we have to work harder; we have to think more; we have to collaboratively pull everything together to see how we can traverse these difficult arenas that we face at this time. It is not about surrendering or raising the hand,” he said, while noting that the Caribbean had for years been able to impact the world.

Acknowledging that it called for more productivity and creativity despite recessionary measures that include lack of salary increases and challenges in our personal lives, the Minister, who is also responsible for Science, Technology and Innovation, contended that people should redouble their creative ability and their God-given talents to ensure the Caribbean survived the difficulties.

He also maintained that there should be greater clarity of mind and the interests of people should not be limited to their own country, whether Barbados, Dominica, Trinidad and Tobago.

“They should not be interested in their own little space . . . but take a wider, regional view of how we, working together, can make our institutions stronger; our institutions of learning which stand in the vanguard of whatever we have to achieve in this region – all of our institutions of learning, not only our higher educational institutions but secondary and primary,” said Jones.

Caribbean people, he noted, must be part of the fullest development of Guyana, with its massive land resource that could reduce hunger.

“Where are our thinkers, where are our brains? Where are our people who have been able to before do things that boggle the minds even now? Where is the ingenuity? Where is the talent?” It is not just about the money but the willingness of people to recommit.

“It is about people forgetting partisan divide [and about] fighting over nothing” he said.

The three-day conference runs from July 10 to 12, at the UWI.  A key aim is to promote high professional and ethical standards as well as the continued development of management capacity in higher education in the Caribbean. It also seeks to provide opportunities for effective networking and collaboration among those with interests in education.
(BGIS)

Principal defends UWI study

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Principal Sir Hilary Beckles say a recent study conducted by Cave Hill campus, entitled The Impact of the University of the West Indies – Cave Hill Campus on the Economy of Barbados was not a publicity stunt.

In fact, he suggested that it was a mere coincidence that the research comes at a time when most of Government’s teritary education funding has been cut and those attending were being asked to pay their own way.

The study found that the UWI contributes more direct foreign exchange to the local economy than sugar and rum exports, based its generation of almost $87 million in foreign exchange in 2013.

“It was meant for information purposes, it was meant for purposes of stakeholder knowledge and bear in mind that the public of the Caribbean is an important stakeholder . . . and the public has a right to know all the information relative to how their taxpayer monies is being used.

“But what was the response?  ‘Why is the University wasting its resources in carrying out such surveys?  Why is the University trying to prove that they make more foreign exchange in the country than the rum industry or agriculture?  What’s their agenda?  Those are the questions that were asked by people in high places,” Sir Hilary told the opening session of the 13th Annual Association of Caribbean Higher Education Administrators Conference, being hosted by the campus over the next few days.

His comments come in response to criticisms levelled by Minister of Commerce Donville Inniss who dismissed the UWI study as a public relations exercise and Minister of Education Ronald Jones who suggested that the University should adopt a more commercial focus.

In response, Sir Hilary said “all institutions have a responsibility to carry out those impact analysis on a regular and systematic basis.

“That ought to be part of any well-managed and governed institution to carry out their impact analysis. You would imagine, therefore, thatthat information should have been welcomed with enthusiasm.

“And you would have imagined therefore that a rational response to that information would have been, ‘ok, well if that is true, how the can we use the information to promote further foreign exchange earnings, to promote more economic growth and to help us to build the potential for our flight out of poverty.

“You would have thought that would have been a rational response,” Sir Hilary reasoned.

 

‘House of garbage’

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Residents of Wellington Street and nearby King William Street in the city arose to an unpleasant and unsightly pile up, which made the road leading into to their homes impassable.

A visibly upset Public Relations Officer of the Sanitation Service Authority, Carl Alff Padmore decribed the pile up as a “house of garbage” and an “eyesore”.

Here PRO of the SSA Carl Alff Padmore points to the worrying eyesore.

Here PRO of the SSA Carl Alff Padmore points to the worrying eyesore.

He said it took four Mitsubishi trucks to remove it while two other trucks helped remove the remaining rubbish,

Padmore also pondered aloud: “What is going through the consciousness of Barbadians?”

“This is now an eyesore and it is a risk to people’s health. Something has to be done about it. We at the SSA are really upset about this because it is one thing to have one are two bags of illegal garbage, but a whole house!” he exclaimed.

With the rainy season upon us, he said the situation was of top priority since the garbage could have made its way into the nearby Constitution River. He is appealing to Barbadians to engage in proper waste disposal habits.

(RB)

 

Good news for BADMC

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A University of the West Indies study has cleared the state-run Barbados Agricultural Development and Marketing Corporation (BADMC) of importing poultry to the detriment of the local industry.

The study, conducted by Senior Lecturer in the Department of Economics, Dr Winston Moore and Dean of the Faculty of Social Sciences, Dr Justin Robinson, examined the BADMC’s poultry imports and their impact on the poultry sector, amidst claims that such imports have proven injurious to local production. It also followed a recent controversy sparked by the BADMC’s decision to recommend approval of a licence for a food business to bring in two containers of chicken wings, a move which stakeholders including the Barbados Agricultural Society suggested could take bread out of the mouth of farmers and force layoffs.

But the survey found that there was little or no relationship between the corporation’s imports and any decline in sales or production. The research, which was released this morning by Chairman of BADMC, Shawn Tudor at its Princess Alice Highway office, looked at two main questions: is there a correlation between BADMC’s imports of poultry and local production/sales; and are there any other factors that predict local production and sales, besides imports of poultry products? “The analysis suggests that the annual poultry industry [excluding eggs and turkey] is worth around $150 million in sales, with the BADMC importing an estimated $5.5 million, or about 4 percent of total industry sales,” the researchers concluded.

“The proportion of total industry sales accounted for by BADMC imports are therefore relatively small and have always remained below the quota of 1.68 million kilograms per year.

Given the small size of the poultry imports, it is therefore not surprising that the analysis suggests that there was little or no relationship between BADMC imports and poultry production,” the experts discovered.

The study also attempted to identify other potential determinants of poultry production and consumption.

The analysis indicated that a determinant was the production of other meats.

“Chicken production tends to be associated with the production of meats such as pork, lamb, beef and the like. The analysis also demonstrates that there was a strong negative link between production and prices [wholesale or retail], which might be indicative of rising prices leading to reduced consumption and therefore production on the part of farmers,” according to the researchers. The entire industry was also found to be worth about $150 million in sales of chicken per year, but Tudor noted that when local turkey and egg sales are included, the value of the sector amounts to nearly $200 million.  He wanted to know if the BADMC was earning $5.5 million in imports and to whom was the rest of the money going.

He is of the view that another more broad-based study commissioned by the farming community, would help to answer a number of questions that could position the producers to attract greater government investment. Such research, the BADMC chairman suggested, should examine ownership structure, employment levels, profitability and tax contributions to the treasury.

He believed that study would reveal the contribution of the local poultry industry in relation to a billion dollars which has been invested over the past several years.

Tudor disclosed that the sector produces an average nine million birds per year, but their sizes have
decreased significantly.

He is of the opinion that the decreasing size of the chicken coming on the market may be attributed to the decline in the producers’ profit margin.

He also suggested that the 300,000 kilograms of excess chicken on cold storage could be cleared, if the farmers reduced the price.


Govt offers 3,000 UWI bursaries

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The Government of Barbados has provided a lifeline for students of the University Of The West Indies (UWI) who have been experiencing difficulties in meeting their tuition costs.

Minister of Education Ronald Jones announced today that, in just about a week’s time, 3,000 bursaries will be made available to the students. He also said that 2,500 first year students would benefit from loans under the Student Revolving Loan Scheme.

Ronald Jones

Ronald Jones

“I have read that young people have been saying that we need to do more now that we have made the adjustment in tuition fees, so based on the resources which we have under the Ministry’s control we should be able to do about 3,000,” said Jones, while addressing the groundbreaking ceremony of the Chinese government funded Confucius Institute today at the UWI.

The Minister said in light of the recent changes in the financing of tertiary education, Government was committed to offering assistance.

“Government is committed in its own way with all of its challenges to working with you through those challenges so we are able to conquer the journey.”

He added that the bursaries would not just be available for Cave Hill students but for those studying at the sister campuses as well.

“We are very conscious of those studying at Mona and St Augustine. We know that in order to study, you still have to carry something for accommodation, food, books, travel and so on. We are aware of that so the bursaries would impact them as well,” Jones said.

In addition to the bursaries, thousands of students will also benefit from the Student Revolving Loan Fund.

“We do not have all of the money but 2,500 students in the first year, would be able to access the fund which is like one third of the numbers,” he added.

He further stated, “for those going to Trinidad to do the Certificate in Law, there will be no charge.”

With regard to those studying Medicine, Jones said they would be told what the procedure was shortly.

Just yesterday, the president of the Guild of Students at Cave Hill, Damani Parris, complained that loan packages on offer by some of the commercial banks, carrying interest rates as high as 16 per cent, were simply too harsh for the students.

“It [loans] would not be like what we saw in the paper yesterday. Those figures are way beyond our own comprehension and understanding,” Jones said.

He added that students from all faculties would be able to benefit.

“They are not going to be 100 per cent but we are starting around 50 per cent of the cost so that you have a wider spread. We are working to deal with all the students at the university,” he said.

He urged everyone to stay focused in the midst of all the noise and disturbance.

(DB)

 

ANGRY SPLIT

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After serving for almost 20 years combined in both the Party Monarch and Barbados Festival bands, musician Mikey Hulsmeier and the National Cultural Foundation (NCF) have parted ways, unamicably.

Today, Hulsmeier was handed his official walking papers after publicly criticising the organisers and this year’s Sweet Soca judging panel via a series of posts this week on social media.

While not surprised by his sacking, Hulsmeier believes that it was his passion and desire to see the standard of music on the island improve that had landed him in hot water with the Crop Over organisers.

When contacted today, the Chief Executive Officer of the NCF, Cranston Browne confirmed the split but did not give a reason for it. He said every year members of the bands are changed and Hulsmeier “is no longer with the band for 2014”.

However, Hulsmeier, who told Barbados TODAY he had received a hand-delivered a letter today from the NCF informing him that his services would no longer be required, concluded that he was dismissed over comments he made on his Facebook page following last Friday’s Sweet Soca semifinals. The musician also referenced comments he made about the overall standard of music and culture on the island.

His removal has therefore not come as a surprise to him.

“This was pretty much expected,” he said in a Facebook post today, announcing that he had been given his walking papers.

“Maybe I pushed it too far, but hey! I was willing to put it all on the line for what I believe in,” he said.

“I bear no malice towards the NCF or anyone there. My posts are never meant to be personal but I am aware that through my total frustration that sometimes I may offend. Good luck to all the artists and artistes out there who are serious and have to suffer through the jungle . . . hope better comes some day. Peace!,” Hulsmeier wrote.

Earlier in the week, he posted that on Friday, July 4 the judges had committed to his mind, “one of the gravest acts of musical injustice in recent memory” at the the Sweet Soca semifinals.

“. . . as someone with more experience and accolades in this specific sub genre than the lot of them will ever dream of, I give them the lowest failing grade.

“In my opinion they should be stripped of their duties forthwith,” he said in his angry post, in which he accused the panel of leaving out one of “brightest sparks” for this year’s Crop Over season.

He also said he had contacted the producers of the show but it appeared they would rather “push it under the carpet” than deal with the situation.

“I am not one to complain about competition results. I don’t really care who wins,” Hulsmeier wrote. However, he said the panel had made a “terrible decision” and as a result “a very promising young talent could be tarnished after giving an above par performance on the night and deserving to be in the finals before most of the rest. That bothers me. Hence  my anger.”

He continued with his tirade against the NCF and the judges, charging that “they would rather recycle the same average artistes year” or persons with “no star quality” and those who have “reached [the] pinnacle at the little Crop Over” instead of dealing with an issue, which he said “could greatly shatter the confidence of one of the most promising young ones”.

The musician for almost three decades, who has worked with a host of Barbadian, regional and international acts in further explaining his dismissal, told Barbados TODAY “I believe I said things they didn’t like and they decided to remove me from their stages – simple!

“But what I will say in a nutshell is that we settle for way too much mediocrity and there is still a lot of amateur mentality around the music and culture,” he maintained.

kimberleycummins@barbadostoday.bb

 

No pain, no gain

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A leading political scientist today warned of serious fallout for the Freundel Stuart Government over its implementation of the controversial Municipal Solid Waste Tax, even as Minister of Finance Chris Sinckler insisted that Government would be sticking with the revenue measure.

Dr George Belle went as far as to suggest that even if the Government was to withdraw the tax at this stage in a quest to silence strong public opposition, it was now too late for it to recover; therfore the matter could only be settled through a return to the polls.

Dr George Belle

Dr George Belle

This as, Sinckler called on Barbadians to stay the course with him and the Government, despite the pain. In an interview with Barbados TODAY the Minister of Finance maintained that the tax was necessary.

“Stay the course, it is painful and in some instances it is inconveniencing . . . but it’s absolutely necessary,” he said.

“Regardless of who is Minister of Finance, who is Prime Minister, who is Government and who is Opposition, this course of action, absolutely has to be done. There is no escaping it,” Sinckler insisted.

“So we can chose to do this in support of the country and ensure that we get to the place that we want to be in 2015/2016, in relation to our economy, have it growing, get those investments . . . Sandals, Four Seasons, the greening project, cruise terminal, the waste-to-energy plant; all those things are nice things [that] are lined up to be done,” he said.

However he cautioned that if the fiscal situation was not brought under control by cutting expenditure and raising sufficient revenue “so that we are living within our means” then, “all of these things that people like to hear about – tourists coming – none of that would matter, because you would just be too unstable, in order to achieve that.”

He acknowledged “the difficulties of it and the pain of it” but in this instance, he said “the pain would lead to gain”.

Therefore, he said, Barbadians must endeavour to help each other to ensure everyone got through this period as a country.  He noted that sometimes when a country was going through a rough time, sacrifices had to be made “and as one person put it, ‘there is no Easter Sunday celebration without the pain of Good Friday’.

“You have to go through Good Friday for Eastern Sunday to make sense,” Sinckler said.

He said while he did not enjoy putting measures in place that caused pain, he wanted residents to rally around their flag, their country and the Government and themselves.

But political scientist Dr Belle told Barbados TODAY the country was in big trouble, with little light at the end of the tunnel.

“We are in a lot of problems, the Government needs the money, the society is at the point where it cannot afford to give very much, the middle class is under tremendous pressure, the working class is being laid off, the business class is saying that it doesn’t have a surplus to invest or employ people, they cannot be confident about giving investment when they do not know what is the next policy which might impact on them negatively. It is not an easy situation if you put all those things together, the picture is very difficult to see light at the end of the tunnel.”

Dr Belle added that in a situation like that even if you are accused of being partisan, one must ultimately conclude “there is a need for political solution in Barbados”.

“You have to have something that says we are going to try something differently and the way to deal with that is by constitutional means by which you have a national debate which is definitive and that means that you have to go back to the people,” he told Barbados TODAY.

The political scientist has written off the municipal tax as another case of the Government acting under pressure to raise badly needed revenue without properly studying the implications.

“This tax is characteristic of this attempt to gain revenue because of cash flow problems and as a result you tax people who are already overtaxed. It is being done too in a context where people have not had raises in income for a number of years, where there are other taxes and where there are expenses that have been increased in relation to the cost responsibilities that people are being asked to carry now where they had formally assumed that the taxes they were paying would cover those expenses. So it is being done in a context of desperation, ” he said.

He further argued the Government was in a sense trapped and it would not be easy to scrap or review the tax which would mean returning to parliament.

“That is going to have some fairly serious implications for alternative sources of revenue and the Government does not have much space to play with so that it is easy to say that, but it is not easy for the Government to reverse the position at this stage.”

The political scientist said the Government could not escape political fallout from the controversial measure as he pointed out that it only serves to “increase insecurity and a lack of confidence in the regime”.

“The only way that you can hope for a change is if there was somebody else who could carry out policies that would facilitate the possibilities of growth, that could facilitate the possibility of increased disposable income; without that you are sustaining a condition of insecurity and lack of confidence to investors.”

But Dr Belle was quick to caution that while it was the prime opportunity for the Barbados Labour Party (BLP) to take up the Government, the Opposition needs to get its house in order.

“The problem is the divisions within the Opposition and it means that people will have a difficulty in relation to being sure about whether they can steer the way forward especially when they see contradictory things. If you have that kind of dilemma presented to people, it compounds the situation so there is a problem with the Opposition, but it is the only viable, sufficiently organised force to be an alternative to the current regime.”

sandydeane@barbadostoday.bb, emmanueljoseph@barbadostoday.bb

 

Farewell to Forbes

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Governor General Sir Elliott Belgrave and Prime Minister Freundel Stuart headed a list of distinguished Barbadians who turned out today at the James Street Methodist Church, the City, to bid farewell to community worker and businessman Basil Forbes.

Prime Minister Freundel Stuart is accompanied by members of the clergy at the conclusion of the funeral service.

Prime Minister Freundel Stuart is accompanied by members of the clergy at the conclusion of the funeral service.

Also attending today’s funeral service were General Secretary of the Democratic Labour Party Donville Inniss and other politicians, as well as Magistrate Douglas Frederick, leading members of the business community and a large contingent of scouts from the Barbados Boy Scouts Association.

During the funeral service Sir Elliott, in his capacity as Chief Scout of the Association, read one of the Bible lessons.

In his eulogy, attorney-at-law Lemuel Rawlins recalled that over the past 39 years, Forbes was his close friend, mentor and confidant.

Rawlins further recalled that during his long life Forbes was a committed member of the South District Methodist Church and the wider Methodist Church community in Barbados.

Forbes was also remembered as a pioneer in furniture manufacture and an entrepreneur at a time when very few Barbadians knew what the word meant.

Noting that Forbes always sought to build the communities in which he lived or frequented, Rawlins said he established the Breakfast Club at the South District Primary School and at the Blackman and Gollop Primary School.

Rawlins also told the packed church that Forbes played a pivotal role in the World Scout Jamboree which was held in Barbados in 1972 and remained a committed member of the DLP even after their defeat in 1976 by the Barbados Labour Party.

Forbes’ mortal remains were later interred at the Coral Ridge Memorial Gardens, Christ Church.

 

Get on board

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Head of the People’s Empowerment Party, David Comissiong is urging Barbadians, especially the young people, to get on board with his initiative which aims to get the nation back on track.

He was speaking at a press conference to inform the public of the upcoming meeting of the ‘University of Independence Square’ on July 19th in Independence Square in The City.

Comissiong said the young people were essential to nation building.

”We have to craft a new developmental agenda that the educated and trained young people of Barbados can be a part of. They are the nation’s single most important asset and should be at the centre of any national development programme,” he told reporters.

Comissiong reinforced the importance of the young people while announcing that recent graduate of the University of the West Indies Damien Francis will be one of the speakers at the upcoming meeting.

Other speakers will include Hally Haynes, president of the Barbados Co-operative Credit Union League, who will address  the role of the credit union as an institution in getting Barbados back on track; and  Lynette Holder, chief executive officer of the Small Business Association.

He urged Barbadians to put aside all else for just few hours and come out to the meeting to brainstorm and further discuss the nation building agenda.

“We have to seriously come together to see how we can solve this crisis that we are in. What we cannot do that we seem to be doing right now  . . . is exist in a state of hopelessness,” he said.

He reminded Barbadians that the ‘university’ was established to search for a solution for a country that is in dire straits.

”We felt that we needed to make an effort to bring together representatives of some of the most dynamic sectors of our society. We were searching for a response to a sense of crisis, feelings of hopelessness and despondency that have engulfed Barbados over several years,” Comissiong said, adding that the ‘university’, made up of university students, progressive university lecturers,  Pan Africanists, representatives of the Rastafarian community and  of the indigenous manufacturing and craft making community.

He noted that the meeting will also feature young talent, including the Teen Talent Chorale and the Haynesville Dance Group.

(DB)

 

Fond farewell

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Members of the farming community, the island’s political directorate, relatives and friends, packed the St Catherine Anglican Church, St Philip today to bid farewell to Tyrone Power, an agriculturalist and politician.

Heading the list of dignitaries attending the funeral service and burial were Opposition Leader Mia Mottley and former Prime Minister Owen Arthur, who in a moving tribute described the late Power as “my friend in a very special way”.

“I speak to you this evening with a full and very heavy heart. You know that you have a special friend when a person is always ready to shower you with acts of kindness and graciousness, and to help you to carry your burdens just for the joy of it, with no expectation of getting anything in return. That was what Tyrone Power meant to me,” Arthur said.

Pointing out that during his lenghty term as Prime Minister of Barbados, Power’s home was where he found solace and a sanctuary, Arthur said: “The office of Prime Minister can be a very lonely place, filled with the burden of carrying the well being of a whole people on your shoulders. When the pressures get too great, you need to find a sanctuary, a simple place to go, to reflect, to make great decisions that are right decisions. Golden Grove, Tyrone’s Farm and Tyrone’s company I found solace at those moments. He [Power] did it for the joy of it, and asked for nothing in return.”

Former Prime Minister Owen Arthur speaking fondly of his close friend, the late Tyrone Power.

Former Prime Minister Owen Arthur speaking fondly of his close friend, the late Tyrone Power.

Speaking on behalf of the farming community and the Barbados Agricultural Society, chief executive officer Paul recalled that as president of the BAS between 1998 and 2008, Power demonstrated leadership at a time when the organisation was facing severe challenges.

Paul further stated that Power demonstrated bravery when many wanted to put “great distance between themselves and the BAS and was instrumental in securing the financial stability of the BAS in collaboration with another stalwart, Carlyle Brathwaite”.

The funeral service was also attended by: Minister of Culture, Youth Affairs and Sport Stephen Lashley; parliamentary representative for St Thoma, Cynthia Forde; parliamentary representative for St George North Gline Clarke; parliamentary representative for St Michael North Ronald Toppin; former parliamentary representative for St Philip North Rudolph “Cappy” Greenidge; former parliamentary representative for St Michael South Central David Gill; Senator Jerome Walcott; former Minister of Agriculture Erskine Griffith;  parliamentary representative in the Ministry of Finance Senator Jeptor Ince; former Barbados Labour Party candidate for St Philip North in the 2008 general election, Indar Weir; former Barbados Labour Party candidate for St Michael West Central Ian Gooding-Edghill; former Director of Finance Dr George Reid and former permanent secretary Ellsworth Young.

Following the funeral service, Power’s body was buried in the church’s cemetery.

 

Phillips wins National Innovation award

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Engineer Grenville Phillips has won the National Innovation award for developing a machine that assists in strengthening buildings.

Phillips was named the top Barbados innovator for the 2013 to 2014 period out of a field of just over 100 entries at the National Innovation Awards ceremony held on Saturday at Courtyard by Marriott.

Top innovator Grenville Phillips (left) receiving his award from Minister of Education Ronald Jones.

Top innovator Grenville Phillips (left) receiving his award from Minister of Education Ronald Jones.

“At construction sites, builders normally bend steel reinforcement to the point of failure before putting it into buildings,” Phillips said in explaining the reason for his innovation that aimed at helping builders get around a costly alternative.

“To bend steel reinforcement properly costs around $10,000 for the equipment. I’ve created a product that costs around $600, and it is marketed around the world in earthquake-prone regions.”

Encouraging Barbadians to constantly look for new ways of doing things, he said: “We can invent new products, or improve existing products. And because we are human and we are not perfect, every single manufactured product and management process that we’ve created can be improved. Anyone who uses a product can improve that product”.

Phillips, an engineer and president of Walbrent College, a school for builders, was awarded $75,000 for his innovation.

National Council for Science and Technology Director, Charles Cyrus, said that the purpose of these awards, financed by the Enterprise Growth Fund since 2003, is to promote creativity among Barbadians.

“Even at this point in time many people are not aware of the fact that there is an Innovation Fund that is managed by the Enterprise Growth Fund. The competition was designed to get a number of projects going to that fund.

He said the awards programme was also, “developed to assist in growth of the local business sector through the commercialization of the winning ideas and the development of feasible innovative business ideas.

“I’m aware that a number of business enterprises have emerged from this competition…perhaps there is a need for more enterprises to emerge with greater visibility.”

 


Too much dependence on Govt, complains Kellman

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Minister of Housing and Lands Denis Kellman wants Barbadians to reduce their dependency on the Freundel Stuart administration.

Responding to critics of the Government’s plan to introduce tuition fees at the University of the West Indies Cave Hill Campus from September, Kellman maintained that the country needed to be more realistic.

Last week, the Students Guild called on the Government to step in and help students who were finding it difficult to meet their financial requirements. They also complained that commercial banks were turning away students who were in critical need of funding to complete their education.

In response, Kellman told Barbados TODAY, “I find it very comical when I hear students talking about that”.

The Minister maintained that residents must be prepared to stand on their own two feet.

“Let us be realistic, in the 1960’s Errol Barrow brought free secondary education, free secondary education is still there. The confusion is whether he said free tertiary education,” said Kellman.

“It is true that he added tertiary education and the confusion is not at free secondary school education; it is still there, that is what we promised,” he said.

Kellman questioned the length of time that Barbadians expected this programme to continue.

“If in 1960 Errol Walton Barrow gave my father an opportunity to educate me, why in 2014 can I still be expecting the country of Barbados to educate my children? I thought what he did was to educate me, to educate my children.

“So when I hear people, especially professionals arguing over free secondary education, sometimes I ask myself, ‘how long can we expect the country to continue to support us, when it would have built the foundation for us to support ourselves and our children?’”

However, he made it clear that government would lend a hand where necessary.

“I am saying those people who fall through the cracks, that the Government must look after. But I think it’s unfair for people to amass riches and still depend on the state. How can we tell people that two years from now, that we are going to celebrate our 50 years of independence and we are still depending on the state and others to support us?” he asked.

Last week Education Minister Ronald Jones announced that 3,000 bursaries would be made available to students in September. while 2,500 students would benefit from the Student Revolving Loan scheme.

(FW)

 

Economist supports repeal of municipal tax

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Withdraw the Municipal Solid Waste Tax or cause the economic problems in the country to worsen.

Economist Ryan Straughn issued this dire warning to the Freundel Stuart administration today, as Government pushes ahead with the tax that is projected to generate $30 million annually.

Economist Ryan Straughn

Economist Ryan Straughn

“Increasing taxes or introducing new taxes in an already shrinking economy is never a good idea; so I would totally support scrapping the tax, but scrapping the tax must mean that you must take additional measures on the expenditure side that will actually make a significant difference in Government having to rely less on the Central Bank to print money to finance its expenditure,” he told Barbados TODAY.

“At this point in time it has the potential to further diminish economic activity, as well as to drive up the cost of doing business across the board; and that is something that I don’t think that businesses or consumers are in a position to see right now, because I think the economy is getting tougher and it will continue to get tougher under these circumstances.”

Straughn, a past president of the Barbados Economic Society, charged that Government did not educate residents about the tax, leaving many of them ill-prepared to make the first payment on July 28.

“Government failed to communicate very clearly precisely what the rates were, what it applies to and who will actually have to pay,” he said, cautioning that this lack of information could be challenged by some residents.

“If you want people to pay a tax you should make them aware that they should have to pay it, and I mean give them the ability to plan, because a number of people would have thought that because they were below the threshold for land tax, that the [Municipal] Tax would not apply to them either.”

The economist accused Government of making some senseless decisions over the past four years. He also contended that a more systemic approach should be adopted to lower the deficit with “significant rationalization of a number of statutory organizations” being at the top of its agenda.

“I don’t think anybody with any confidence can say that things are on stream, particularly when it comes to this tax, and certainly as far as the expenditure is concerned, I don’t see any reduction in the expenditure levels; and the further we get into this fiscal year without any serious [changes to] the statutory corporations would mean then that we end up with another year of a very high deficit, because in all likelihood the revenue will continue to underperform, and if you’re spending more than you spent last year then you could only get a worse fiscal deficit,” Straughn added.

carolwilliams@barbadostoday.bb

 

CRACKDOWN

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Chief Justice Sir Marston Gibson is concerned about what he sees as “growing instances of attorney dishonesty”.

And in a statement today issued by the Registrar of the Supreme Court, Sir Marston, who is currently in Trinidad, said that while the disciplinary rules required that complainants complete an affidavit, “we may need to consider the possibility of permitting ‘whistleblower’ complaints by lawyers against lawyers on a confidential basis”.

His comments come ahead of a special general meeting of the Bar Association scheduled for Thursday, July 17, at 2 p.m. at which a resolution is to be tabled for the president of the Barbados Bar Association, Tariq Khan, to “commence proceedings for Judicial Review, in accordance with the Administration of Justice Act, Chapter 109B, of the Laws Of Barbados, of the actions of the Chief Justice of Barbados as chairman of the Judicial Council for failing to call and constitute a meeting of the Judicial Council in contravention of Section 93 of the Supreme Court of Judicature Act, Chapter 117A, of the Laws                   Of Barbados”.

When contacted today, the Bar president said he had no comment to make on the matter.

However, in his statement, the Chief Justice said he was worried about reports of lawyers who owed large sums to clients, and tried to settle the matter by bypassing the Disciplinary Committee.

“Even I have heard of lawyers who owe hundreds of thousands of dollars and who are being permitted to repay the money piecemeal, without any formal complaint being filed with the committee.

“This is intolerable and cannot be permitted to continue,” the island’s top judicial officer warned.

He said the legal fraternity was being adversely impacted by what he called a crisis of trust that exists in the country.

“The suggestion which I plan to make, on an interim basis, is for volunteer lawyers to assist the committee with its work, but a long-term solution is desperately needed, if the Bar is not to lose out in the crisis of trust which presently exists,” he added.

“I want to find out what is the Bar’s plan to tackle the growing instances of attorney dishonesty. The twitter in Barbados is that there are several attorneys who are in the same position as the attorney whose case is presently pending before the Court of Appeal,” he said.

However, the Chief Justice said the Disciplinary Committee had been unable to “get its head above the staggering backlog under which it labours”.

He pointed out though, that while the committee had a “huge backlog” of complaints against lawyers, several of them would be found without merit, but several others required investigation.

“This is an issue which the Bar has not dealt with, at least not publicly, and the Disciplinary Committee needs help. Too many Barbadians view attorneys as belonging to some sort of secret organization which protects itself even when its members commit defalcation against clients’ accounts. Nothing could be further from the truth,” Sir Marston insisted.

He said the committee met in the Supreme Court every Tuesday and worked until late in the evening.

The top judicial officer also addressed the issue where he said that certain attorneys had refused to pay their annual Bar fees, despite the “clear language” of the                         Legal Profession Act.

“I have recently sent a letter out to the judges and magistrates directing that such lawyers have no right of audience in the courts. To their credit, the two presidents of the Bar, with whom I have worked, have raised this as a major issue, but until recently with the suggestion of Mr Barry Gale, QC, there has been no discussion of the appropriate remedy.”

All these are matters the Chief Justice said he would be discussing with the current president Tariq Khan, when they meet on July 23.

 

emmanueljoseph@barbadostoday.bb

 

Eye to eye?

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The controversial David Estwick alternative economic plan for Barbados is being implemented –– at least partially.

DAVID ESTWICK 1

David Estwick

Minister of Finance Chris Sinckler made a revelation in a wide-ranging interview with Barbados TODAY, in which he said Government was prepared to take on board those aspects of the proposals relating to tax policy and investment.

“Those are the ones in particular that could give immediate effect,” Sinckler said, adding that “there are others that have more long-term germination, and we continue to work on those assiduously”.

In terms of investment, he explained that Government was particularly interested in Estwick’s suggestion that it look at countries such as the United Arab Emirates (UAE) as a non-traditional source of funding.

“It’s not only UAE. Everybody emphasizing the UAE. Dr Estwick was giving an example of who and where you may get alternative resources from, as opposed to just constantly going to the capital markets and borrowing at exorbitant rates [of interests].

“I don’t think anybody can argue with that logic, because that’s something that makes sense. So it’s not only UAE. He mentioned the Kuwaitis; he mentioned the Chinese; and so forth and so on.

“So we are looking at all of these in terms of an alternative financial structure that brings down the cost of the capital, which Government has to engage for larger projects and major investments that are necessary for the country to spur economic growth and development,” Sinckler added.

The Minister Finance’s revelation brings an end to months of speculation and debate over how the Government would treat to Estwick’s proposals for achieving sustainable growth and attracting new investment.

The matter had been seen as a source of divide within the Cabinet, especially since Estwick, who’s the Minister of Agriculture and Water Resource Management, had pre-empted its disclosure with a suggestion that the country was headed down the wrong economic path.

The former Minister of Economic Affairs had also written Prime Minister Freundel Stuart before presenting his alternative plan to Cabinet for consideration, but eventually went silent on the whole matter after no word was forthcoming on how the Government would proceed with either him or his proposals.

However, Sinckler told Barbados TODAY he had seen Estwick’s presentation even before Estwick had presented it to Cabinet.

“I saw the presentation before it was made; I spoke to him before he made it; I heard it when it was made. We spoke during the presentation and I subsequently had meetings with him after on that matter,” Sinckler said.

Amid suggestions that he and Estwick were at odds over the way forward on the economy, the Minister of Finance also declared: “We see eye to eye on various aspects of it, as other colleagues in the Cabinet do.

“Dr Estwick has full gamut and support from myself, [and] the ministry to execute the elements of that programme that we think can impact positively on the economy. And I have given my full support,” he promised.

However, when contacted today Estwick warned that Government was still continuing “to use the Budget of taxation and expenditure reduction, which cannot work”.

“It will continue to precipitate a contraction of the economy,” he told Barbados TODAY while highlighting the need for a sinking fund strategy to refinance and restructure the country’s debt.

“I said that you could not use the traditional Budget tools of taxation and expenditure reduction to get out of a current account deficit of $1.5 billion, when your long-term debt cost is increasing and your reserves are under stress and the Central Bank has been printing money for two years plus,” the Cabinet minister said.

“Reducing salaries and wages by retrenchment does not deal with this matter if your borrowing cost increases, as is happening,” he added.

emmanueljoseph@barbadostoday.bb

 

Please see also the 14/07/2014 ePaper edition Pages 10&11 and 12&13 for Today’s Interview with Sinckler – http://epaper.barbadostoday.bb.

 

Public sector workers deflated after retrenchment

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Public sector workers who have survived Government’s retrenchment programme have been left deflated and unable to produce at their optimum.

That assessment was given today by Senior Counseling Psychologist at Network Services Centre, Anderson Kellman, who told Barbados TODAY that many public sector employees were still struggling to come to grips with the situation.

“Understand that the whole issue of retrenchment is not about persons who have not been working well. There are persons who were excellent workers and they’ve gone home . . . . If you have worked in an organisation for the past ten years with someone who was working well and you see that person go home, you are thinking to yourself, ‘perhaps my time will come soon’ and then your response could be such that you become disengaged. You [believe] you are going to lose your belongings and that can impact your productivity. Multiply that across the service and you can see how that can have an effect on national productivity and within the entire public sector. I’m not saying it is to that extent, I’m saying based on my experience over the past 15 years at Network Services Centre where we dealt with some of the bigger mergers and restructuring processes; we know that those are realities that have to be addressed,” he said.

Kellman was speaking after the media launch of the re-engagement seminars in the Employee Assistance Programme (EAP) held at the National Insurance boardroom in the Frank Walcott building in Culloden Road, St Michael this morning.

Meantime, director of Public Sector Reform Michael Archer said the recently introduced Employee Support Programme, which helps displaced workers transition to unemployment status has been well received.

The new EAP initiative, combined with counseling programmes and interventions of the NSC, aims to boost morale and increase productivity among the remaining workers.

While it is open to employees in all Government agencies and ministries, those sections which were significantly impacted by the retrenchments are being particularly targeted.

Kellman disclosed that more than 200 people have utilised the service since the layoff process began this year, seeking assistance in the areas of substance abuse, anxiety, depression and reactive depression.

“A loss of a job is a very serious loss, it doesn’t only speak to the loss of money but the loss of one’s place in the world; loss of friendships. So when we have a job loss it can have a number of effects on our psyche, which at times, if it is not dealt with, can become even more problematic psychologically.

“That is what we are doing now in the re-engagement process . . . . There [are some] persons who have expanded roles, there is less manpower and therefore they have to do more. And so, unless persons are re-engaged, then we will have a major gap in what is expected and where they are, which can then undermine whatever gains are made in the reduction of the wage bill,” he said.

“This is such a critical time in our country that we don’t want to have no stone unturned and we want to get our productivity up because if it was a problem before the cuts, then you can almost be sure it is going to be a major problem after. And so we want to be able to get ourselves back to a level that is comfortable. Sometimes people think if it is not broken then don’t fix it, but it may be broken and you don’t know,” said Kellman, as he called for full cooperation.

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