Gov’t could reopen applications for compassionate grants
MINISTER of Finance and the Public Service Dr Nigel Clarke indicated Monday night that the Government is considering reopening applications for compassionate grants, but admitted that it would have to be for a moderate increase.
Dr Clarke, who was responding to questions from the Opposition about the sudden closure of applications for the $10,000 grant, which has become the most sought-after benefit in the Government’s COVID-19 Allocation of Resources for Employees (CARE) Programme — a temporary cash transfer initiative designed to cushion the economic impact of the pandemic, said that while it is a justified call for others to benefit from the grant, it would test the capacity of the public system.
“I wholeheartedly share the concerns expressed, not just by Opposition members but by Government members as well, about the closure of the compassionate grant applications under the CARE programme after we have had over 402,000 applications. But, at 402,000 applicants, there was no processing of payments anywhere in Jamaica, at any time in our history, that has even come close to 402,000,” Clarke said.
He admitted that despite the huge response to the offer, the Government recognises that there could still be more people who could seek assistance from the programme and intends to review a possible reopening.
“Therefore, we intend to review a possible reopening of applications for the compassionate grant,” Clarke said.
However, the finance minister explained that there were some obstacles to achieving any sizeable addition to the current commitments, which the Government intends to review prior to a possible reopening of the applications.
He said that it will take time to process the large number of applications already in hand, and that the verification is a two-way process in which text messages and e-mails are sent to applicants after which things might need to be adjusted. Verification is essential, but there are fixed capacity limits to that kind of interaction, Clarke said.
He said, too, that the compassionate grant allows applicants the right to choose to receive payments through remittance companies. He said that, at the time he first raised the issue, there were 158,000 applicants who had sought payments through remittance companies, an action which requires physical collection with photo identifications and application reference numbers.
Additionally, there is the question of processing of more than 158,000 people queuing to receive payments through remittance companies within a certain time.
He said considering the logistics and health challenge, an effort would have to be made to work it out in a pragmatic way and develop an efficient process for individuals having to collect their grants.
Dr Clarke said that another challenge was the possibility that the total grants would exceed the $10.5 billion that the Government had budgeted, as well as an additional amount for the Programme of Advancement Through Health and Education and the grants for the tourism industry.
”What we want to have is the assurance that all who apply and are eligible, and are positively identified, that we know they will be paid. It is not prudent, in my capacity as the minister of finance, regardless of how much it is obviously seen as desirable from one perspective, for us to run too far ahead of the space reserved for this expenditure. Best practices in public financial management require that the minister of finance and the public service seek parliamentary approval prior to allowing the expected grant payouts to too far exceed the amount,” Dr Clarke said.
“Yes, there is some latitude to go about, but we want it to be assured that the amount by which we go above is moderate, prior to going back to Parliament and seeking approval,” he added.
The compassionate grant is available to anyone, including tertiary students, unemployed people, the informally employed, the elderly and pensioners, who are not formally employed and have not received or intend to apply for any other cash benefit under the CARE Programme.