SHAW... requested list of all outstanding payments for goods and services supplied

FINANCE Minister Omar Davies yesterday called in the heads of government ministries and departments, to drive home the message of the poor state of government finances and to repeat the administration's mantra of the need for prudence in managing state resources.

Davies is attempting to contain a fiscal deficit that is threatening to bust his target of between five and six per cent of GDP and yesterday's meeting came in the face of official admission that several ministries are in arrears to creditors and Cabinet's directive just over a week ago for payment schedules to be worked out.

DAVIES... likely to make statement to parliament today

No official word from yesterday's meeting was available from the finance ministry, but sources told the Observer that Davies discussed the issue of belt-tightening in the ministries in the face of the existing cash crunch. Financial Secretary Shirley Tyndall also attended the meeting.

A finance ministry spokesman said, however, Davies may make a statement to Parliament today, after discussing the state of the administration's financial crisis with his Cabinet colleagues.

JONES... objects to public sector job cuts

In the meantime, Opposition spokesman on finance, Audley Shaw, said last night that it was obvious that a report on the review ordered by the government last week was the subject of yesterday's discussions with the permanent secretaries.

Shaw last week requested a list of all outstanding payments for goods and services supplied to the ministries, agencies and departments. He said he wanted to know full details and arrangements for payments. He is expecting the report to be tabled today in the legislature.

At the same time, Jamaica Civil Service Association (JCSA) president, Wayne Jones, said last night that his association was awaiting a meeting with Dr Davies to discuss the impending cut in ministry spending and the likely impact on workers.

The JCSA had called for a meeting with the minister last week, after raising concerns that government was going ahead with its rationalisation programmes without consulting the civil servants.

"The way is now paved for that meeting and we have been discussing proposals to make to the minister. But this meeting will not be limited to the current crisis, we are preparing more fundamental, long-term and far-reaching proposals," Jones told the Observer last night.

He made it clear that the JCSA would object to any further job cuts in the public sector. A reduction in the size of the public service, he said, may not produce savings, as civil servants with over 10 years service would have to be retired and paid pensions for the rest of their lives.

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