budget2016

2016 Budget Doodle

Barbados Parliamentarians 2013

Barbados Parliamentarians 2013

BU thought to share a few doodles from the BU note pad about 2016 Budget and related.

We should declare that except for listening to some of Sinckler budget presentation and most of the reply by the leader of the opposition one was left with a feeling of ‘what next’. It is obvious that government’s fiscal and monetary interventions to date have not realised the improvements ALL Bajans have yearned the last five or six years.

There is talk about the economy turning the corner but how it this possible if the Central Bank continues to print money against the advice of all? Isn’t it a commonsense position if a country (or individual) spends more than is earned over a protracted period there will be no discretionary money to invest and develop? BU commented before the budget was delivered that the government would have added more taxes to slow consumer demand to protect falling foreign reserves. On the other side of the equation the economic model we have calls for consumer spending to fuel growth. We are caught between a rock and a hard place as they say.

Prime Minister Owen Arthur use to preach during the period of plenty that tourism revenue will never be adequate to pay the bills, we have to supplement with revenue from foreign direct investment (FDI) and international business. This is the model Arthur bequeath to the country. Barbados continues to feel the brunt of such a policy. With FDI drying up and international business not as robust the Stuart led government has struggled mightily to maintain the economic model it inherited with a deer caught in headlights policy approach. One thing we should have learned since 2007/8 is that the world has shifted how it does business. Capital flows from North to South is receding, oversight bodies mandated to track how money flows across the globe to support criminal activity means that the economic model we are tied to is under constant threat. How the international banks have been slimming down operation in the Caribbean is a bellwether of what is in the forecast for the region. The Caribbean Development Bank, a homegrown independent financial institution, has been posting concerns about the debt burden of Caribbean countries for more than a decade.

The inability of our governments in the last ten or fifteen years to build relevant policy and not implement lazy policy prescriptions means we proudly wear the title of banana republics.  Managing economies is a complex business in today’s world. To place blind trust in a group of individuals who we refer to as the political class is reckless. Bear in mind our best people are not motivated to offer themselves for political office. This means that the majority of those who represent us in government come from the bottom of the barrel. A reminder that the people get the governments they deserve. The parliamentarian will shout across the divide in parliament to ‘char yuh mudda skunt’ then want to play the role as leader in civil society. The Attorney General will succumb to political narrative then wonder why violent crime is on the increase. Sir David Simmons has chaired many Commissions across the region and therefore must be privy to sensitive information about criminal networks and level of endemic corruption. Why not leverage the fact that he is Barbados based for the benefit of the country? We all have skeletons don’t we AG Brathwaite? You do not want BU to expand.

The idea of having to pay a 2% levy so that the monies can be placed at the disposal of Minister Lowe to buy trucks we find repulsive. Lowe should have been fired given a poor performance at Sanitation and Drainage. He should have been fired given his lead role in Cahill Energy scam. He should have ben fired given that he was a Peter Allard stooge. The bigger doodle (or dawdle?) is that in 5 years we will be back to where we are today, trucks not maintained and taxpayers having to saddled the burden of cleaning up after an inefficient, ineffective and or corrupt politician and minions. In addition, at a time we should be discussing waste management in the context of leveraging what we have that is working, we have Bizzy Willliams cussin Anderson Fat Child Cherry, Cherry cussin Lowe, Bynoe from B’s Recycling retreating to the protection of God and so forth. Does it not make sense for all of the players in Barbados to sit around a table, serve them generous portions of soup and come up with an approach for a  waste management approach for Barbados that is homegrown? If you need support from consultants it would be requested on our terms? And the requite transparency of course.

Finally, it must be stated that there is no public trust in the mouthings emanating from our parliament. Young people and millennial could care less and even independent civic minded Barbadians (like the BU household) are struggling to remain engaged. Lack of confidence in this government would have been reinforced by the calling of a Budget in the middle of the Olympics. One has to conclude this was delibere by the government to deflect public scrutiny of the 2016 budget.

We agree with the leader of the opposition that the period 2008 to present deserves to be labelled the the lost years.

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33 Comments on “2016 Budget Doodle”

  1. Bernard Codrington. August 20, 2016 at 11:22 AM #

    This is a real doodle . Carefully read the two main speeches first then return. There are nuggets hidden somewhere in this submission but I do not really know what interpretation to put on them.

    Like

  2. Bernard Codrington. August 20, 2016 at 11:37 AM #

    One fundamental truth is that the international capitalist system has changed since1995, and the measures employed by OSA then are no longer relevant. There is no policy template to follow. And yes ,the rate of change has accelerated.Policy makers must constantly ask:Where are we now?.and: What is the best route to take ?

    Like

  3. Vincent Haynes August 20, 2016 at 11:42 AM #

    David

    I am still off island but I thought I had heard that 15 trucks for waste had arrived at our port some months ago,whatever became of them?

    Any idea who bought 4 seasons as stated by the MoF in the budget speech?

    Any idea as to the plans for 2000 acres of CLICO in St.John?

    By now you should realise that the development of ones country and playing politics do not mesh.

    Like

  4. David August 20, 2016 at 11:51 AM #

    @Vincent

    Hope the weather is fine in old bligty country?

    The MoF promised we will hear about the Four Seasons matter soon, just like he did on all the other occasions.

    The trucks we understand and reported on BU are consigned to Brathwaite. We wait to see how that matter develops. Bear in mind Fat Child has 3 trucks parked on the Warrens highway for rent. Oh what a mess!
    The St.John lands will probably be gobbled up by Massy soon.

    Like

  5. Gabriel August 20, 2016 at 12:03 PM #

    The Caribbean Community might want to engage the assistance of resources at UWI to provide possible solutions on the way forward .

    Like

  6. Hants August 20, 2016 at 12:31 PM #

    @ David,

    Barbados too sweet fuh Canadians eh! lol

    “Canadian energy company Emera has landed a $67 million windfall after reducing the insurance covering its subsidiary Barbados Light & Power (BL&P) against catastrophe. –

    http://www.nationnews.com/nationnews/news/84454/reduced-cover-emera-usd67-million#sthash.3rd3LFnX.dpuf

    Like

  7. David August 20, 2016 at 12:37 PM #

    @Hants

    Imagine that, hope Jeff is observing.

    Like

  8. Bernard Codrington. August 20, 2016 at 1:28 PM #

    So all the gains went to the shareholder? None to the consumer? None to the pensioners? None to the current employees? Barbados too sweet.

    Like

  9. Bernard Codrington. August 20, 2016 at 1:32 PM #

    Does anyone recall how much Emera paid for BL&P?

    Like

  10. Bernard Codrington. August 20, 2016 at 2:04 PM #

    We spend so much time on reparation that we have little time for preparation.

    Like

  11. Gabriel August 20, 2016 at 4:19 PM #

    Imagine Emera saw all this hidden largesse and said not one word.To be sure it wouldn’t have happened to the sharks Bizzy has for accounting advisers.Emera should be made to give the equivalent of that unearned profit back to the consuming public in shareholder equity.The likes of Stuart,Quisling Boyce and Sinckler are too for words.God knows what Kyffin and his accounting sharks are doing with BNOC

    Like

  12. Gabriel August 20, 2016 at 4:21 PM #

    …..are too effing stupid for words

    Like

  13. Hants August 20, 2016 at 4:29 PM #

    “Twenty-three years ago, BL&P established a special self insurance Fund (SIF) to cover its

    transmission and distribution assets against hurricanes and other natural disasters.”

    Twenty-three years ago.

    I doan have to read an spell fuh wunna.

    Like

  14. Hants August 20, 2016 at 4:30 PM #

    The financial injection allow BL&P’s immediate parent Emera Caribbean to boost its second quarter profit to $89.7 million. Overall, the Caribbean operation’s net income for the year was $104.8 million compared to last year’s $21 million.”

    Sweet fuh days!!!!

    Like

  15. David August 20, 2016 at 4:38 PM #

    @Hants

    Stupid motherfuck***s we pumped education into their heads sold us down the river? And we get these polical yardfowl posting their BS on the site? These motherfuck***s who are only interested in a luxury vehicle playing golf and maintaining a side woman? It makes you want to puke. All of the gains building local enterprises, SOLD.

    Like

  16. Anonymice - The Gazer August 20, 2016 at 5:32 PM #

    @Emera,
    Always interested to hear others who are more knowledgeable on these matters give a detailed explanation.

    Is this like selling a house and leaving a large amount of cash in one of the rooms? Is this an item that could have been taken into consideration when selling the company? Was the best interest of local shareholders served at that time? it done? Were the local wheeler and dealers outsmarted?

    This could be a story on its own right and someone here need to dissect it so that even mice can understand.

    Like

  17. David August 20, 2016 at 5:47 PM #

    The blame is squarely on the directors of BL&P Holdings who would have been privy to the financials and any documentation from re-insurer/Accountant/actuary about the value of the insurance fund. Look forward to an scientific opinion on this mater from Walter Blackman.

    Like

  18. are-we-there-yet August 20, 2016 at 5:51 PM #

    This mouse would also like to know what effect this is likely to have re. the new Emera insurance coverage for hurricane or other catastrophes.

    Like

  19. are-we-there-yet August 20, 2016 at 5:54 PM #

    the above should be re. the adequacy of the new Emera insurance coverage for hurricanes or other catastrophes.

    Like

  20. Gabriel August 20, 2016 at 6:18 PM #

    Australia is vetoing Chinese investment in a power company and in real estate.They have legislation we should be looking at all like now instead of selling off the commanding heights of our economy to the likes of Emera,the people who like to kick Bajans everywhere they turn.

    http://www.nytimes.com/2016/08/12/business/dealbook/australia-china-ausgrid-nsw-sydney.html

    Like

  21. David August 20, 2016 at 6:24 PM #

    @Gabriel

    The BU family discussed this perspective when the government et al decided to sell sell sell. It is commonsense to want to ring fence our strategic assets read only power company .

    Like

  22. Gabriel August 20, 2016 at 7:10 PM #

    We need to retake our assets and protect this country for the generations to come.Mis steps will have to be corrected.

    Like

  23. The People's Democratic Congress August 21, 2016 at 3:58 PM #

    “The reported opinions of Professor Michael Howard on the 2016 Financial Statement and Budgetary Proposals are absolutely laughable. His likely opinion that the 2016 Budget is a “good budget in the context of a small consumption driven economy undergoing fiscal stress” is pure piffle.

    So, rather than place the Financial Statement and Budgetary Proposals in the context of the social, political, material and financial trends that have been taking place over the years in this country, Howard has gone and placed such in the context of his personal ideological beliefs and preferences. For, any serious analysis by anyone of these long term trends will project that TAXATION will continue to help bring about – on the whole – lower and lower levels of business, commercial and receipt activities in the political economy and services industry sectors of Barbados and that thereby the critical sectors earning foreign financial credits will also – directly or indirectly – realize lower and lower numerical contributions to national financial credits, with an increasingly greater proportion of the financial credits earned by these export sectors going to foreign sources – either as debt extinguished or foreign receipts.

    Therefore, many principals of the DLP and BLP and some government bureaucrats – in their false utterances – will continue to grossly and wickedly overstate the foreign reserves of the government of this country – as less and less foreign money continues to be brought into this country by mainly visitors to Barbados, on less spending terms. What makes our local situation more scary than could be thought is that these intellectually and politically backward, bankrupt and discredited DLP/BLP governments have been and will horrendously continue to preempt greater uses of money/credits within the local core financial system by the general human components of the non-financial private sectors and other relevant sectors of this country, as these governments and the leaders/managers of the local core financial system agree to their use of the latter to support obnoxiously high transfer receipts.

    So, what government spending what, when already these governments hardly have receipts of their own. TAXATION will, to some extent, leave these governments with little options but to invite more exploitative foreigners with investment into this country and with them using their leverage as so-called needed foreign investors to negotiate with government less TAXATION on their receipts. Another feckless option of these governments have been and will be the ever increasing borrowing of the relevant portions of the receipts of many entities in this country and of the credits of some others here and abroad, as the costs of use of money/numbers continue to skyrocket – and with interest rates considered – for these very inept and destructive DLP/BLP governments. The international credit rating agencies will continue to down grade, generally, the debt profiles of these governments of Barbados.

    Thus, these backward and decrepit governments over the years have not had any debt management strategies at all for the governments and the society of Barbados that they have been so grossly and recklessly helping to maladministrate and mismanage. The corollary of these relevant governmental and other interactions is that access by the general citizenry to private and governmental social services has been and will continue to in net terms decline, as the infrastructures, facilities and machineries are not properly maintained or renewed or replenished as the relevant persons presiding over these material situations and the processes encompassing them have been and continue to have contractual financial difficulties with these governments and the mainly very unproductive, inefficient and unrational governmental bureaucracies they manage”.

    The above post (with necessary edits done) was taken from a submission made by M Anthony Adamson on Nation news.com

    Like

  24. Well Well & Consequences August 21, 2016 at 4:49 PM #

    http://www.barbadostoday.bb/2016/08/20/pitcher-launches-broadside-against-govt/

    The dude is right…he is being diplomatic by putting it mildly and nicely.

    Like

  25. Alvin Cummins August 21, 2016 at 7:26 PM #

    Gabriel,
    Either you have a system that allows private corporations cooperate as private corporations, or you have Government interference in their activities. We have a stock market free trade, the buying and selling of shares and allowing corporate entities to run their own affairs. the shares in BL &P were held by shareholders in Barbados and beyond. Why didn’t local corporations singly or in association, get together and buy threes in B’dos Light and Power when they came up for sale? How was it that Emera could bid for and obtain the shares? Because our corporate culture in Barbados is to obtain shares in a company and keep these shares in the family, neither trading in them; thus giving the company the benefit of additional capital, or changing ownership and introducing new atmosphere and ideAS TO THE COMPANY. Why are the elements who are moaning now moaning. This was entirely private; BL&P was not a government owned or controlled company. It is regulated to some extent but it is a private company.
    “We need to retake our assets and protect this country for the generations to come.” What bull. ” As far as I know the shares are still listed on the stock exchange.

    Like

  26. Alvin Cummins August 21, 2016 at 7:29 PM #

    @Gabriel again,
    When BS&T shares came up for sale, there was bidding war involving two Trinidad corporations. How many Barbadian corporations or companies, or even individuals entered the bidding war in an effort to keep those shares (assets) here in Barbados? NONE. Stop complaining.

    Like

  27. David August 21, 2016 at 7:35 PM #

    @Alvin

    Good thing the people complained about Cahill eh?

    By the way, check with the Cattlewash crew why they sold out to the Trinidad companies.

    #goldenparachute

    Like

  28. Well Well & Consequences August 22, 2016 at 6:19 AM #

    http://www.nationnews.com/nationnews/news/84702/limbo

    It took Fruendel the Fraud nearly 10 years to realize this and voice the decades old obvious @elections in the air….

    Like

  29. The People's Democratic Congress August 22, 2016 at 8:58 AM #

    Here is what a certain future coalitional regime of Barbados, and of which the PDC will be part, shall, et al, help bring about in pursuance of the realization of the following objective of the ABOLITION of Taxation, relative to the laying and completion of the social political material financial foundations for a post-TAXATION society of Barbados:

    1) Significant reductions in the size and scope of operations and responsibilities of those persons, businesses and other aspects falling within the province of government of Barbados;

    2) Many areas previously falling under the rubric of government shall be transferred to the PRIVATE PARTNERSHIP OWNERSHIP of those persons who would long have had the experience skills in running them as so-called government ministries, departments, statutory corporations, companies;

    3) Any of those areas that remain part of government and that have not been made more commercial must be made that way, to whatever degrees – areas of the government that are primarily social welfare security infrastructural in nature – although having commercial dimensions – will be reformed to duly emphasize efficiency and efficacy of operations;

    4) The seeking of public share capital subscriptions for any very viable government/private sector ventures;

    5) The proper rightful use of accounting techniques to offset what remunerations/transfers that are owed by the entity managing the government’s affairs to persons and other entities, against what the latter may owe to the same entity (no third party transactions will be involved in these techniques;

    6) The outlawing – by the political directorate of the government management entity, or by any other entity on the behalf of the same government management entity – of the issuing of so-called government paper (treasury bills, debentures, savings bonds, etc)for clear subscription to by members of the public, for for clear subscription to by any financial or other institutions or entities, for whatever purposes;

    7) The emergence of well conceptualized properly coordinated and capably managed voluntary civic citizens corporate initiatives for the expressed purposes of taking over (adoption agreements) and providing for the development or the maintenance of certain aspects of the people’s properties and lands they have ownership of the rights over, for the primary purposes of the people in Barbados’s benefit and gain and not for any personal private benefit or gain on who so ever’s part;

    8) The deriving of financial and other advantages to the new state management entity, as a result of its significant political strategic asset controlling position in the material productive and distributive and financial affairs in this country, and that would have been able to facilitate the getting of substantial remunerations through the growth in national remunerations resulting from the Abolition of Taxation; and

    9) The capitalizing on access – by the political directorate of the state management entity running the affairs of government – to the National Institutional Productive Money Transfer Scheme and to the National Institutional Non-Productive Money Transfer Scheme, for the essential purposes of making sure that this said entity will get the desired actual amount of money from the said Schemes, on the directorate’s presentations and later approvals by the legislature of Barbados of its annual fiscal budgets, and that therefore out of the actual allocations got, its giving of transfers – via the said Schemes – to partners within the government management entity on their having business done for and in the public’s interest, and its giving of transfers to any other businesses on their having business done for and in the public’s interest.

    10) The ensuring of the use of circulated receipts that would have been either saved, lent, or spent, by persons or groups of persons, at whatever times (and that have been long viciously the target of government TAXATION), as a necessary and sufficient basis upon which the relevant leaders/managers of the local core financial system and the relevant human components within the local commercial system will have been made to use their collective and particular powers and authorities to altogether and or particularly determine the amounts of money that would be made available to be used by the relevant core financial authorities for purposes of making transfers to the relevant persons, businesses, and others, that would have done business anywhere in Barbados, and for purposes of making transfers to needy recipients of pensions in whatever forms anywhere in Barbados, and who altogether – in the case of business persons/partners – would have proven that they would have done this business for any given times – and – in the case of pensioners – would have proven that they are to receive pensions for any given times – to the appropriate agency in charge of the financial management of the local core financial system (the National Currency Board).

    Such sound ideological and policy positions of the People’s Democratic Congress (PDC) do make pellucidly clear the contrast between the vision and perspicacity that we, our associates and supporters have for a brighter and better Barbados, and the lack of critical thinking skills and dearth of progressive thought of persons like Dr. Winston Moore and Carol Nicholls – who recently by their very unstudied, negative and reactionary positions on the Gaston Browne Administration’s proposal to have Abolished so-called personal income taxation in Antigua and Barbados, in April of this year, partly reflect why Barbados proceeds deeper and deeper into political economic and financial depression and will become a virtually failed government political system, in less than 5 – 10 years time.

    Like

  30. Artax August 22, 2016 at 2:13 PM #

    Is there a reason why we are seeing differences of “economic opinions” between the Ministry of Finance and the Central Bank of Barbados?

    For example, as it relates to the reason behind government relinquishing control of determining interest rates, Sinckler gave the following explanation in his budget speech:

    “Mr. Speaker, in March 2015, the Central Bank of Barbados took the bold step of LIBERALIZING the MINIMUM SAVINGS RATES (MSR) at commercial banking institutions in Barbados. It was hoped that by freeing banks of this requirement, that as banking institutions received the benefit of a lesser cost burden at this end, it would have fed through for a faster and deeper benefit for consumers of banking services in many other critical portfolios.” [Page 52, Budget Speech PDF document]

    Conversely, in the Central Bank’s economic performance report for the second quarter of 2016, Dr. Worrell gave a different explanation.

    “Government’s financing needs since 2008 have been the main reason for the widening of the gap between the US and Barbadian three-month Treasury bill rates. When the Central Bank removed the minimum deposit interest rate stipulation in April 2015 an attempt was made to narrow this gap and reduce the Barbados risk premium, through intervention at the Treasury bill auction. However, because of Government’s cash flow needs, the minor rate reductions achieved could not be sustained.” [Page 3, Central Bank’s June 2016 press release PDF document]

    Perhaps Sinckler’s explanation was to justify government increasing the Bank Asset Tax from 0.2% to 0.35%.

    Like

  31. Wily Coyote August 22, 2016 at 3:18 PM #

    With reference to:

    “Caribbean Developement Bank” report
    “Public Sector Debt in the Caribbean” dated 2013

    This report analysis the debt situation in various Caribbean countries and has forecast DEBT/GDP FAILURE/DEFAULT scenarios with dates.

    Evaluating this report against Barbados Budgets of 2015 and 2016 would indicate that Barbados is presently in FAILURE/DEFAULT territory. It’s not a question of IF it’s just a question of WHEN.

    Like

  32. Tron August 22, 2016 at 8:28 PM #

    @Wild Coyote

    Exactly!

    Consequence: The foreign investors and expats who got credit in BBD for local property will pay off in no time and Barbadians will default on credits. We will see a massive sellout to foreigners. And the only way to aquire goods in stores will be to pay in USD, EUR or CHF. In other words, the masses are decimated to water from the pipe, rum and the vegetables in their gardens whereas the foreign investors and expats shop on their own in Massa Super Center and the tourists stay in their all-inclusive-bunkers at the beach.

    Welcome back to the plantation, folks!

    Like

  33. barefootinbados August 23, 2016 at 4:48 AM #

    Thanks. I shall be moving to Barbados later this year and find these posts really helpful in informing me of the issues of the island and it’s people.

    Like

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