The Government is in the process of pursuing a third Memorandum of Understanding (MoU) with public sector workers.

This is according to Audley Shaw, Minister of Finance and the Public Service. Mr. Shaw said that discussions for MoU III have already commenced.

The minister made the announcement yesterday while addressing a graduation ceremony for 97 customs officers.

Mr. Shaw said Senator Dwight Nelson, the Minister without portfolio in the Finance Ministry with responsibility for the Public Service, was leading the process for the successor MoU.

He said Senator Nelson has had discussions with representatives of more than 40 public bodies on the proposed agreement.

The Public Sector MoU II, which was signed in 2006 and expires next year, allows for restriction in salary increases for civil servants.

With the inflation rate expected to exceed the projected eight per cent this fiscal year, deliberations on a third MoU could be more robust this time around.

Outstanding revenues

Mr. Shaw said it was for this reason that the Government was trying to collect all outstanding revenues to be better able to make a favourable offer to civil servants.

He said the Customs Department was among the target areas to rake in more money for the Government's coffers.

In the meantime, the Financial Secretary Colin Bullock has revealed that the rate of tax compliance was only 30 per cent.

He said the rate of corporate tax compliance was even worse, at a mere 10 per cent.