A taxed pinch of salt

Published: Sunday | May 3, 2009


With each passing day, it becomes ever so much clearer that there is a direct relationship between the administration's obligation to enlist the cooperation and support of the Opposition and our country in extricating itself from its present state of economic stress.

And it is our duty to continue to urge the Government that the longer it takes to appreciate that connection and lead the process towards that imperative, the longer we will remain in the eye of the economic storm.

It is said that the PNP Opposition must change its posture and its mindset to "become more relevant" on today's political landscape. That party would be unwise to ignore that challenge, for renewal is the lifeblood of the unending obligation to organise, which itself is the anchor for the survival and continued "relevance" of entities such as political parties.

In any event, a refusal to renew and refashion its processes and its strategies would mean that the party would be content to be less than faithful to its predominant objective, which is to promote the interests of our people.

Trimming the sails

The methods that are to be employed to pursue its objectives will change from time to time and the processes that may be applicable at a certain point in time will not be appropriate in another set of circumstances. The captain and crew of the PNP ship, as has been done throughout its history, will no doubt trim its sails to suit the prevailing winds.

The leader of the opposition and her spokespersons have certainly given depth to the ongoing Budget Debate. The route that the governing party has embarked upon in these perilous times, however, remains a mystery.

There are three main elements which must form part of the fundamental principles by which we must be governed under today's circumstances. These are: fostering an atmosphere of cooperation in seeking after consensus; an appreciation of how the global challenges are likely to affect us here in Jamaica and levelling with the people in good time; and structuring a macroeconomic and budgetary platform that will be least burdensome to those among us who can least afford any real sacrifice and which plots a developmental path.

Prudent approach

At the best of times, a prudent approach to governance must rely on these principles; in the worst of times, such as now, there are no substitutes.

Along its governance journey up to this point, including the present Budget exercise, the administration has failed on every count in accepting and acting upon these bedrock principles. And, for the Government and the people, story is coming to bump: the administration must change course.

The minister of finance and the public service, in opening the Budget Debate, proceeded to echo certain sentiments expressed by his party leader on the night of the last general elections.

According to the finance minister, "If ever there was a time to put away selfish, partisan political differences for the greater good of the Jamaican society, that time is now. We believe that we must use this crisis to come together and address our long-standing economic problems."

He continued "Let me say, and I say it with every ounce of sincerity, this is not a time for recrimination. And neither is it a time for undue remonstration about past policy errors. Whether those who governed before were wrong on some issues is no longer the central issue. Neither is it a time for baseless criticisms and obstructionism in the face of these new and unprecedented challenges."

Constructive engagement

Did not Bruce Golding, in signalling a path of "constructive engagement", speak in much the same sensible and measured tones on the night of September 3, 2007, and at King's House when he was being sworn in as prime minister?

Neither had he, at that time, nor his minister of finance, a few days ago, proceeded to tell us how they intended to lead us along that route of "coming together to address our problems". Did Golding, at the time that he spoke in the early moments of a change of government, not perceive a time of "new and unprecedented challenges"?

They and others in the leadership of government must ask themselves whether they are satisfied that, in these almost 100 weeks at the helm, they have acted in a manner that inspires confidence in the utterances of the minister of finance as he opened the Budget Debate. Or, should we continue to take such words of theirs with a pinch of salt?

Again, it is generally agreed that the Government gets another low grade by their failure to assess, and share frankly with the public, in good time, the potential breadth of the negative effects of the global economic crisis on our fortunes here in Jamaica.

The governing party and some of their supporters have sought to live in denial by choosing to forget that when this administration came to office, the global economic storm clouds had already started to gather.

In fact, the new government had three immediate challenges, none of which was of their own making or that of their opponents. First, they were called upon to govern with the slimmest majority in our history of parliamentary elections. That was a message sent by the electorate.

Second, they assumed office on the heels of the battering that Jamaica had received from Hurricane Dean, which was quickly followed by the kind of prolonged rainfall that had not been witnessed in a generation. Those were as a result of acts of God.

Third, it was recognised that a global recession was imminent and that its potential impact on Jamaica was incalculable. And yet, while government leaders in other countries had long set about 'trimming their lamps' and alerting their citizens to the impending meltdown, up to more than a year after assuming office, our government ministers continued to make light of the threat of the tsunami.

Astonishingly, at least one minister was satisfied that it would be a good thing for Jamaica and that there were rich benefits to be reaped. And it was no less of a person than the prime minister who recently told us that he was of the view that Jamaica would begin to see the light out of this dark economic tunnel by yearend.

Spending power

The truth is that, even up until this very moment, our citizens have not been made fully aware of the onslaught that is upon us. Within a couple of months or so, when their spending power has substantial dwindled or completely evaporated, then the story will truly come to bump.

And that surely brings us to a third imperative of the times - the structuring of a budgetary platform that will be least burdensome on those who can least withstand any economic burden whatsoever.

During the gas tax riots of April 1999 here in Jamaica, Michelle Faul, an Associated Press writer, traced the protests to globalisation. She was of the view that "P.J. Patterson thought he could get away with what no Jamaican leader has before: impose a huge hike in gas prices and survive the wrath of the people." Well, Bruce Golding might "get away with what no Jamaican leader has before". The question is: will the people escape the "wrath" of the recent mountain of taxation?

The "huge hike in gas prices" to which the AP writer made reference was the imposition of an increase of 12 cents ($0.41 to $0.53) per litre. Patterson said the increases "provided the best means to continue critical expenditure in transportation, education, health, roads and inner city projects".

Eventually, there was some roll back of the 12 cents imposition after the violent protests caused severe devastation to Jamaica's economy. In my view, Jamaica has not yet fully recovered from the fallout caused by those three to four days of the destructive acts that were unleashed on the society.

What we witnessed in the opening of the Budget Debate last week by the minister of finance was a historic tax package at a time of history-making economic stress. So the question has been asked: did the gas tax have to be imposed at this time, and in such an amount of $8.75 per litre?

Equitable answers

Were there other means that could have been employed, as has been suggested by the Opposition? Will the prime minister and his team proceed to share with the public reasoned and equitable answers to the contrary?

And this would have to be approached against the background of the admonition of the minister of finance: "Mr Speaker, navigating our way through these challenging times will require tough decisions and shared sacrifice."

The administration continues to hold the wooden spoon for its abysmal failure to meaningfully create the atmosphere within which cooperation, "constructive engagement" and the path to consensus may be developed.

It continues to carry the wooden spoon by its failure to level with the citizens of Jamaica and, in particular, those whose earnings must be spent primarily on consumer goods. And it carries the wooden spoon for the imposition of an unimagined levy on the kinds of items that are necessaries to the vast majority of Jamaicans, including a tax on every pinch of salt. How did this come to pass?

A.J. Nicholson is Opposition spokesman on justice. Feedback may be sent to columns@gleanerjm.com