Opposition Spokesman on Finance Dr Omar Davies made an important point in his budget presentation last Tuesday when he said Jamaicans should recognise that the country is in deep social and economic crisis. Therefore, the country should recognise that the US$1.3 billion IMF and US$2.4 billion multinational loans (and I would add the $40 billion saved from the debt exchange), should not be regarded as a solution to the problem, but rather as a means towards solution.

I think that it is necessary to point out that a section of the country believes that government has a lot of money. But this is not so, having regard to the magnitude of the debt we still owe. So it should not be regarded as a time for rejoicing, but a time to tighten our belts and cut out waste and corruption, and most of all pay our taxes on time.

In a far-reaching contribution to the debate, Davies’s discussion of the participation of the National Insurance Fund in the Jamaica Debt Exchange was of special interest to many. He explained that the forecast is that investment income of the Fund for the fiscal year 2010/2011 would be reduced by $2.6 billion, 31 per cent compared to that which was earned in 2009/20l0. It is now projected that the net contributions would be increased by $2.3 billion as a result of the plan to lift the ceiling on contributions to the National Insurance.

Davies was perfectly right in saying that the National Investment Fund represents funds held in trust to provide pension to NIS contributors, with contributions coming from workers and their employers. Hence, any decision taken about the Fund and its investments cannot be taken from the perspective that this is government’s fund and this is being done in the government’s interest. Workers and employers must also be involved in any decision regarding the fund. Future changes to the NIF must have the full involvement of Parliament, workers and their representatives, Davies argued.

He said that the Opposition supported the objective of the JDX. The truth is that Jamaica did not have many options from the perspective of reducing the

debt-servicing burden. However, there are several outstanding matters to be addressed. One was the impact of the JDX on the National Investment Fund.

His criticism of the manner in which the government announced some tax measures was justified. He gave as an example the announcement of the increases in property taxes by Finance Minister Audley Shaw during a Standing Finance Committee meeting for the Estimates of Expenditure. He wants Parliament to be brought into the loop every time.

I should point out that people are not receiving their property tax notices on time. Two years ago, Jamaicans got notices for property tax from both the KSAC and the Inland Revenue Department weeks before the due date, April 1. At the time of writing this column last Saturday, for example, I had not received any property tax notice. This delays the collection as people are reluctant to pay without notice, especially with the increases this year.

The discussion by Davies on health and education was most interesting. He said the health sector was in a crisis in terms of accessing services, noted the shortage of some pharmaceuticals and that people put on a priority list for surgery had to wait for years.

I am aware that the abolition of user fees at hospitals and public health facilities has placed these institutions under severe pressure as the economic situation has forced far more poor people and the lower middle class to use them. I do not know how these people would survive without the abolition of the user fees. The middle classes are uncomfortable going to these facilities and are also under pressure from the high fees charged by doctors and surgeons. Indeed, the abolition of the fees was a good move by the government.

I expected Davies to speak on the ridiculously high fees charged by surgeons and some private hospitals. These are areas that need some review. The problem is that these two areas are beyond the control of government, but both the government and the Opposition should use moral suasion to get surgeons and private hospitals to reduce their charges. Many middle-class Jamaicans are suffering because of the high fees.

Davies debated with a considerable amount of energy whether the abolition of tuition fees in secondary schools was the correct course taken by the government. His proposal for a means test is worth consideration. He backed up his argument for a means test by calling for reasoning on the issue as to whether people who are able to the pay significant sums for their children to go to preparatory schools need a subsidy at the secondary level. What was needed is an efficient and equitable means test.

This was one of the most constructive budget speeches by Davies, who is a former minister of finance, and he deserves some commendation.