PM puts nation on alert - JamaicaObserver.com

Saturday, November 21, 2009 12:54 AM

LATEST NEWS:

News

PM puts nation on alert

Budget favours the poor as Shaw opens debate

Thursday, April 23, 2009

PRIME Minister Bruce Golding last night sought to put the country on alert against disturbances, in anticipation of tax increases expected to be announced by Finance Minister Audley Shaw, who opens the 2009/2010 budget today.

Shaw goes to parliament to tell the nation how the Government intends to finance the $574.74 million budget tabled on April 7, and he will also say how the administration plans to plug the gaping hole in the national finances, in the face of a biting world economic recession.

What's in it for us? The expression on the faces of these four young Jamaican children photographed in Rocky Point, Clarendon seems to ask 'what's in the budget for us'? Finance Minister Audley Shaw opens the 2009/2010 budget debate today in parliament. (Photo: Karl McLarty)

Addressing the nation by radio and television, Golding appeared to be preparing Jamaicans for the tax increases, saying that his Government had no choice as it could not continue current levels of borrowing that resulted in a $309 billion debt service burden, but admitting that "increasing taxes is never easy or pleasant".

"We are going to have to find our own money to close the budget gap. We will have to raise more revenue and...the minister of finance, in opening the budget debate, will outline the tax package that is required to close the gap," Golding told the nation.

"We have sought to spread the burden as wide as possible so that it doesn't fall too heavily on any one set of people. We have had to devise methods to get those who have been getting away to pay their fair share. But we have had to take into account the low-wage worker, especially the PAYE worker, who has been bearing more than his fair share. And we have had to look out for the very poor, the pensioners and the vulnerable who need to be protected."

"...Every Government likes to be able to announce that taxes are being reduced. Some countries have, in fact, reduced taxes as a means of stimulating the economy.

We would love to be able to do that, too. But then, they don't have a debt burden that gobbles up all of their revenue. They have accumulated fiscal surpluses that allow them to reduce taxes. Ours is a different story. We have lived with fiscal deficits for years and they only pile up more debt that leads to more deficits. We just cannot go on like this!"

At the same time, the prime minister warned lawless elements against the folly of disturbances that would only hurt the country while not preventing the hard choices Jamaicans had to make.

Golding, in his broadcast, and his minister without portfolio, Daryl Vaz speaking with the Observer, said there were rumours of disturbances on the street, apparently linked to the belief that among the taxes would be a cess on petrol.

Transport Minister Mike Henry had, for the past months, been pushing for the gas tax, which he said could raise badly needed money to repair and rehabilitate the nation's shabby road network.

There have, however, been opposition to Henry's proposed gas tax. Just last week, a newly formed group of transport operators warned that there could be demonstrations islandwide, like that 10 years ago, if motorists were asked to pay more for petrol because of additional taxes.

Gas retailers, fearing that the imposition of the cess would drive down their margins, said yesterday their grouping, the Jamaica Gasoline Retailers Association, would make a statement today if the gas tax was imposed.

However, Golding appealed to the nation not to disrupt activities of the country over measures to be announced by the finance minister.

"As one would expect, there has been speculation about the likelihood of tax increases and rumours about planned disruptions. What purpose would that serve?

Would it close the budget gap. No! Would it force us to restructure the budget by reducing the grants we give to our basic schools, or the provision of medical supplies to our hospitals, or by laying off thousands of public sector workers? Absolutely not!" said the prime minister.

".Let us not sacrifice the interest of the country on the altar of expediency of whatever kind or motivation. Let's not hand the country over to lawlessness and anarchy," the prime minister appealed.
He said, however, that the security forces were on alert and prepared to respond to any situation where public order is disturbed.

"But I appeal to all Jamaicans: Let that not become necessary. Let good sense prevail. Let us confront our challenges no matter how difficult they may be."

Vaz said he had heard about the rumours but he was satisfied the Government had put the poor at the centre of the budget. "This is a responsible Government and no matter how bitter the pill is, we are not prepared to take the short term and expedient measures that jeopardise the long term well-being of our people. This is not a 'run-wid it' Government."

Asked about police preparations for riots, Assistant Police Commissioner Owen Ellington, steered clear of pre-empting Shaw's presentation, but warned that the police were always ready to stamp out any form of violent upheaval.

"I will not get caught into guessing what the minister will say or what will be the outcome but the police force is always in a state of alertness and readiness," Ellington told the Observer.

Senior officials of the Opposition People's National Party could not be reached last night, but president of the party's youth organisation, Damion Crawford dismissed rumours that the party was planning to lead street protests against the budget.

"We are not planning any protest; we leave that up to the JLP," said Crawford.

What's your position on mandatory HIV testing for employees in Jamaica?
	I support it
	I don't support it

View Results
Results published weekly in Sunday Finance

Username:
Password: