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Gov't may have to adjust budget to accommodate storm damage
ALICIA DUNKLEY, Observer staff reporter dunkleya@jamaicaobserver.com
Friday, September 05, 2008

PRIME Minister Bruce Golding has hinted at a possible upward adjustment to the $489.5-billion budget his administration presented in March, because of the significant damage caused by Tropical Storm Gustav.

In a special statement to the House of Representatives on Tuesday, Golding said the recovery "cost is expected to be significant and pose challenges for the budgetary framework".

"There are challenges that must be met, and appropriate adjustments will have to be made to meet these unforeseen obligations while preserving the integrity and credibility of the government's fiscal programme," he said without elaborating.

In explaining further, Finance Minister Audley Shaw said while the assessment of the total damage from the storm was still being done, it was clear that "in accommodating the cost, adjustments will possibly have to be made in other areas to seek to address the most urgent requirements".

"Quite likely, there will have to be an upward adjustment to the budget, we didn't budget for a storm, so whatever it is (the final cost) that is going to be an additional requirement," he said.

Shaw, while expressing a reluctance "to start throwing figures around at this stage", said "there might also have to be some realignment of other areas of expenditure".

"I really can't go into any other details at this stage. We didn't plan for it, but we have to deal with it. We have no choice," Shaw later told the Observer.

He said he was waiting on more detailed assessments from the various ministries, chief among them the transport and works, education and health ministries.

"We really have to take the time to do a proper assessment and once that is done, we then have set out our priorities as to what can be accommodated within the present fiscal year," Shaw said, pointing out that this did not mean that everything could be done in this fiscal year.

"After you do the assessment, it doesn't mean you can do everything within this fiscal year. We will have to examine our priorities and make decisions," he added.

Meantime, estimates of the cost to repair the damaged roads, infrastructure, public buildings, water and sewage systems and to provide assistance to persons whose houses were damaged or destroyed, should be completed within a week.
At least 12 persons were killed in the storm as it made an almost 16-hour trek across the island between last Thursday and Friday.

Preliminary data suggest that more than 200 houses were totally destroyed or severely damaged during the storm ,which also caused extensive damage to roads, drainage structures, river courses and agriculture, particularly banana cultivation.

The Government is to receive international assistance to boost its relief efforts. Already, the Spanish Government - through the Spanish Agency for International Development Corporation - has arranged for a shipment of seven tonnes of relief supplies from its logistic humanitarian centre in Panama, while United States Ambassador to Jamaica,
Brenda La Grange Johnson, has indicated her government's willingness to assist.

The labour and social security ministry has begun the necessary fieldwork to identify families whose houses were destroyed or extensively damaged - most of which are in Portland, St Thomas and sections of Eastern St Andrew. The ministry has also been instructed to assist with funeral expenses for persons who died in the storm.

Members of Parliament, in the meanwhile, are to be permitted to use $2 million of their Constituency Development Fund balances for relief/repair-related expenditure.


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