When Don Wehby left the ministry of finance and went back to the comfort of the private sector, a lot of questions were raised as to Minister Shaw’s capacity to run the ministry without another “bright star” coming in to help him. The question in the minds of many was: could he do the job alone? To the best of my knowledge, this column was the only one to comment publicly that not only could he do the job, but that he could do well at it if he were given the necessary technical expertise that such a demanding ministry requires.

Very few can now say that he is not moving in the right direction. For the first time in over a decade and counting, he presented a budget of which the repayment of national debt (which is a constitutional requirement) is below 50 per cent of the total budget. It is true that he will continue to rely on some borrowing to finance the 2010-2011 budget, but this will be substantially lower than it has been in the past. Bear in mind that the loans the country is now receiving from the multilateral agencies are at significantly reduced interest rates than once obtained when we sought loans on the open market. To be getting loans at one per cent and less, compared to 11 per cent and over in the past, is no mean achievement. This stems from the resurgence of confidence that the multilateral lending community now reposes in Jamaica. But the minister will understand that however low interest rates are, the ultimate goal must be to produce our way to prosperity so that the day will come when debt will no longer be a factor in the crafting of our national budgets.

The successful conclusion of the Jamaica Debt Exchange is a feat that many might have considered unachievable. The argument was that no one would be able to get the Jamaican private sector to forgo income on their investments. In the end, good sense prevailed and we now have an arrangement which is admired by many in the world of finance, both locally and internationally. An important offshoot of the debt exchange is the dramatic lowering of interest rates to almost single digits. If investors and producers can develop confidence in sustained lower interest rates, then the pace will be set for a take-off in production that we have never seen in this country. The too-high interest rate regimes over the years have stymied production. They have sapped the entrepreneurial energy of the Jamaican people and rendered obsolete once-thriving businesses.

Not only do we need lower interest rates but we need to remove the volatility that accounts for the sporadic increases that we have seen in the management of interest rates in this country. It is true that the exigencies of the IMF agreement were critical to decisions reached about the debt exchange and lower interest rates, but it took a certain amount of courage and boldness to even think that this could be done. It is that boldness and resolve on the part of the ministry and its indefatigable minister that should be congratulated.

It is refreshing that a minister of finance has now seen the wisdom of pursuing aggressively those who are not paying their fair share of tax. Significant work has been done in lowering the income tax threshold and there is more that needs to be done. But we cannot have a situation where people refuse to pay their taxes with impunity. Perhaps the most galling are the statutory deductions which are taken by employers from their hapless PAYE workers’ salaries and which are not turned over to the treasury. The same is true of the GCT collections. Vast revenues are being lost to the government by what can only be described as this nefarious practice. It ought to be brought to an end.

It is refreshing also that the government has begun to pay close attention to the operations of publicly owned companies that contribute nothing to the treasury, but are often a drag on the national budget. Rather than being heavily supported by the budget, they should be encouraged to be net contributors to its income side. Some of these companies tend to operate as laws unto themselves or with the feeling that in central government they have an unending slush fund from which their gargantuan appetites can be fed. The Urban Development Corporation is a case in point. Often these bodies are characterised by waste and inefficiency because they have been allowed to operate at the whims and fancies of the political directorate without careful attention being paid to credible economies of scale.

There is a great deal of work to be done, but I believe that Minister Shaw has set the right tone in terms of the new directions in which the country has to go in order to achieve the prosperity that has eluded us for too long. The fight against corruption in the public sector and against the “Anancyism” that is practised by all and sundry to get by without the constraints of law and order must be intensified. There must be change, and change begins with the modification of behaviour. The old paradigms of theft, corruption and “ginnalship” must give way to cogent, deliberate, credible, honest and bold approaches that will work for the benefit of all Jamaicans.

I will be accused of being a water boy for Audley Shaw, but even his most ardent detractors will silently admit that he is on to something that just might work for the good of the country. If we believe that, then we should encourage him and not just tear down what he is trying to achieve in order to score political points. I hold no brief for any politician, but truth ought to be acknowledged when it is evident. There is a new-found boldness and confidence on the part of the minister, buoyed by his ever-present jocular spirit. He cannot be unmindful of criticism that can assist him in doing his work better, but he should not be dissuaded from the path that will lead to fiscal prudence in the management of the financial affairs of the country.

stead6655@aol.com

www.drraulston.com