The governor of the Bank of Jamaica Richard Byles is understandably concerned about wage increases making it more difficult for him to achieve his inflation reduction targets. Specifically, in a recent announcement, he fears that any great increase in private sector wages may spur inflation to levels that may be unsustainable for the economy.

I do not recall, and beg to be advised, that there was a corresponding concern raised when the massive increases in salaries to public sector workers were given. If such increases would spur aggregate demand and lead to cost push inflation, then there is merit for the argument that what is good for the private sector goose ought to be good for the public sector gander. But that aside, the governor is on sound footing in his concern for the inflationary impact of massive increases in private sector wage bills.

I believe the governor is well aware that with the country almost reaching full employment, whereby the employee is becoming king and queen, it will be very difficult for the private sector not to dangle higher wages as the carrot to get the best talents available. In this regard, the private sector is in a tough spot. The wage environment is bound to become more competitive as companies vie for the best talents in a dwindling pool of the real talented. There is no doubt that where there is a shortage of good workers wages have to be the best incentive to attract the available.

I was talking to a person who runs a hemodialysis operation in a rural town. She is having a warm time attracting the workers she needs to help in her operation. She wants to expand into doing mammograms and recently imported equipment for this. Her biggest problem, however, quite apart from the frustration she encounters from customs, is the difficulty in getting trained radiographers to employ. There is apparently a dearth of these professionals in the island. Sufficient technicians are not being trained in the areas of these technical skills. This is something the ministry of health may want to look into.

I know of at least two people from the so-called Diaspora who are willing to engage in similar types of businesses but are experiencing “hell on earth” to get their operations moving. From the bureaucracy imposed through customs to getting licences, to the chicanery of local operators they have tried to partner with, to the downright skulduggery of some they have employed, it is a picture of frustration . One operator is at the point of selling out and returning to America. I have been permitted to give details to the relevant authorities that may be interested in assisting these people. So much for the appeal to the Diaspora to invest in Jamaica!

But back to Byles. There is a corresponding concern that the governor has and this is where I believe he is on sounder footing than perhaps the more fragile one of expanded wage-driving inflation. I refer to his concern for productivity. I am no economist, but I have been around long enough to know that to avoid inflationary trends, higher wages in any economy must be buttressed by higher productivity on the part of workers. Higher productivity acts as a sponge to suck up excess demand. Where the production of goods and services remain stagnant or anaemic and wages are going through the roof, there is bound to be inflation – too much money chasing too few goods and services.

So if there is going to be high wage increases then this must be pegged to increased productivity. It is the same concern this column had when the gargantuan increases were given in the public sector. They were just given without any clear indication that productive output had to increase. There was just the expression of hope that people would step up to the plate and do better. But this kind of scenario does not work in Jamaica. Deliverables have to be clearly specified and people watched to produce these. This has not been insisted on and this is one of the major reasons the country continues to lag behind its Caribbean counterparts in this most important index of economic growth.

So I am with the governor here. By calling attention to this matter, he is doing his job and showing that he is on top of his game. But it is not just the private sector that begs scrutiny here, it is the public sector as well.

The wearying silence on the SSL debacle

For fair disclosure, let me state that I am one of those whose accounts are trapped in the beleaguered Stocks and Securities Limited (SSL) institution. These are stock brokerage accounts which, technically, should not be embroiled in the wider financial shenanigans at the institution. It is just a matter of leveraging the accounts to another brokerage house that is willing to take them on. There should be no question as to their viability. Why it is taking such a long time to have them transferred befuddles the mind.

In a conversation with principals at SSL and the recovery office, one gets the distinct impression that they, too, are in waiting mode for certain things to happen. SSL is desirous of migrating existing stock accounts to a brokerage house, but there are the finer points of legality to be worked out. They are awaiting word from the Financial Services Commission (FSC) as to what to do next. All paths seem to lead to the FSC, but even this outfit seems to be in need of a few solar-powered lights to give further light to their pathway.

From what we have been able to glean so far, for all intents and purposes, SSL is an institution in which billions of dollars belonging to rich and poor alike are trapped. Dr Julian Robinson, the Opposition spokesman on finance, has once again bewailed the lack of public information on the Government’s probe into the operations there. The Government seems not to have learnt the lesson, and if it has, is being disingenuous in not acknowledging that the lack of information on any matter leads to all kinds of speculation.

Public information on the probe has been virtually non-existent and this has only exacerbated the angst, frustration, and deep worry of investors about their assets. The Government owes them a full explanation of what they have been able to glean and what is the possible way forward. One is not asking for details, but for heaven’s sake, say something! Dr Nigel Clarke, minister of finance, the ball is at your foot. Kick it!

Dr Raulston Nembhard is a priest, social commentator, and author of the books Finding Peace in the Midst of Life’s Storms; The Self-esteem Guide to a Better Life and Beyond Petulance: Republican Politics and the Future of America. Send comments to the Jamaica Observer or stead6655@aol.com.