Ian Boyne THE BUDGET debate this year was not one of the finest. There were rare flashes of brilliance, and not many moments of creative intellectual thought. It showed every sign of the absence of Edward Phillip George Seaga.
The presentation by the new Leader of the Opposition Bruce Golding, while by no means
boring or dull, lacked the stature, depth and intellectual force of Edward Seaga's previous
presentations.
Perhaps Golding never had enough time to prepare, though a resourceful and strategic leader should have prepared himself
adequately in anticipation of PJ Patterson's 'flying the gate' for him to speak in the Budget debate. Whatever the reason or excuse, it is undeniable that Golding's
presentation fell short of that of the previous Opposition Leader's, especially those of the past five years. Perhaps there was too much 'bangarang' on his mind.
Prime Minister P.J. Patterson struck some important notes. He finally addressed some critical overarching issues, rather than the usual triumphalistic trumpeting of achievements. He had some solid announcements which made the headline writers' job very easy:
$5 billion for education, significant assistance to students, major
inner-city improvements, rural town development, big housing programmes and job creation
programmes.
CORRUPTION
The Prime Minister's biggest, unforgivable blunder is that he did not deal substantially with the issue of corruption.
Perception is reality, as the Prime Minister full well knows, and for him not to deal with the issue on the minds of large
numbers of Jamaicans was a major communications blunder.
It is not just an issue which the Opposition is worked up about. And even if the Prime Minister believes that he and his Government are pristine pure, the level of national concern over the perception of corruption demanded serious engagement by the Prime Minister.
Perhaps the biggest failure on the economic side of the budget presentations (on the Government's side) is the failure to deal seriously with small business development and to come up with a serious plan to boost job creation outside of Lift Up Jamaica projects which are necessarily temporary.
Here Golding was absolutely flawless in articulating the
importance of small business expansion and facilitation.
"We need to develop a strategy to encourage and strengthen small business investment and development", Golding told Parliament. "There are persons, many of them young people, with innovative ideas eager to grasp opportunities. We must find a place for them in the scheme of things ...The Development Bank of Jamaica was designed to drive development financing, to go where commercial banks were unwilling to go. It, too, has shifted its focus. It now
concentrates on funding large Government projects". Excellent critique of Government policy or the failure thereof!
Golding's proposal for a task force to be "set up as a matter of urgency" to "hammer out strategies and modalities that energise the small business sector and stimulate a new wave of investment activity and the creation of new jobs" is perhaps the finest recommendation made to the Government in the entire Budget debate. Golding rightly pointed out that the new Companies Act should do more than merely pull people into the formal tax net. "Let us help them to make a start, help them to expand and grow and taxes will follow". Right on.
We need a massive plan to fund entrepreneurial development. A lot has been talked about small business development and some efforts have been made but not on the scale that is needed. The Opposition needs to continue pressing the Government on this one.
PROTECTING THE PUBLIC PURSE
We must continue to be grateful to Opposition Spokesman on Finance Audley Shaw for his keen interest in watching the public purse and in being diligent over the very suspicion of corruption. We must encourage him in this role. But he has to find a balance between that very necessary vigilance and the histrionics to which he is given, along with exaggerations. Shaw is too disingenuous. He needs to know that in debate, you don't lose-- but rather score points-- by acknowledging the strengths on the opposing side. This increases your credibility.
To say that this Government is "reckless" in terms of macroeconomic management is as absurd as it is vulgar. Serious investment analysts, institutional investors and economists overseas won't take you seriously when you make such outlandish statements. Say that interest rates are not where they should be, but no visitor to the island hearing him say that interest rates have only gone down marginally would know that interest rates were reduced by as many as 11 times last year and two times this year already.
To hear Shaw, and even Golding speak, one would never know that just a few days ago the authoritative Jamaica Conference Board Survey of Business Confidence showed that the survey for the first quarter of this year posted its largest quarterly gain in business confidence since surveys started four years ago.
No one would know that the hard-nosed business people themselves said they expected record profits and that the investment climate was the best in four years. The business people themselves pointed to declining interest rates, stable foreign exchange and buoyant investments as some of the reasons for their record levels of confidence in the economy. This is what the market itself is saying. The international rating agencies--which don't have a subjective interest in Jamaica, but which are sworn to protect their clients-- have also been favourable in their comments on the Jamaican economy.
BALANCED APPROACH TO DEVELOPMENT
As Don Robotham said in this newspaper a few Sundays ago, one can't credibly mount a wholesale critique of the Government's macroeconomic management. One can perhaps critique the Government on the level of "trickle down" which is taking place, the pace of job creation and the facilitation given to small business. But some of the criticisms which could be levelled at this Government have more to do with the broad neo-liberal model which is being pursued--- which is the same broad model which the JLP would have to pursue, without punishment from the international market. It's just that kind of cruel choices which we have in this era of globalisation.
For Shaw to talk about "Draconian tax package" is to be in a time warp. What draconian tax package when Omar Davies has wisely rejected the right-wing tax proposals of the Matalon Committee which would have heaped burdens on the backs of the poor? Omar's explanation, in his closing presentation, for his rejection of the Matalon proposals and for his piecemeal implementation was highly persuasive. The country should breathe a sign of relief that the Government is not as doctrinaire about its neo-liberal, Washington Consensus model which it is following.
Indeed, the Prime Minister's presentation demonstrated that the Government is attempting to take a balanced approach to economic development. The Prime Minister put it well: "Our challenge now is to accelerate that growth and to spread the benefits to the poor and the unemployed". This is precisely what the PNP administration needs to concentrate on now. The poor can't wait too long for as it is said, "While the grass is growing the horse is starving."
ASSISTING THE POOR
Mr. Patterson did give every indication that he was going to put his money where his mouth is and "Run wid it" when it comes to financing projects for the poor and marginalised. The programmes for the youth and the expansion of the National Youth Service are highly commendable. The re-socialisation programme, which is an attempt to put some substance in the values and attitudes programme, is excellent. The recognition of the need to increase the social safety net is precisely the kind of thinking which will increase national and popular support for the macroeconomic path the Government is taking.
The Prime Minister made some very important statements which for those of us championing the need for values and attitudes and the strengthening of social capital was most encouraging. The Prime Minister's recognition that our youth have to be taken "beyond maths and English, science and computer literacy... to the moral ethical creative life that this country will have to depend on if it is to develop in a holistic way" is most welcome.
The Prime Minister went on to note that a recent higher education symposium had acknowledged that areas such as culture, literature and philosophy " do provide students with a social reference and moral and cultural compass for the application of their professional skills." And he said this was also required at the primary and secondary levels. It is gratifying to see someone at this level of the political directorate giving voice to these views.
Golding missed an opportunity to deal with the broader and deeper challenges to the society. He raised some critical issues, indeed, which were necessary but not sufficient for his first major Parliamentary and budgetary presentation since becoming Opposition Leader.
The Prime Minister, however, waxed eloquent in articulating the importance of the moral and cultural aspects of development. He expressed the hope that "civility, generosity of spirit and just plain good manners will prevail to defeat the ragamuffin coarseness and bling bling 'style' which are assaulting on the sensibilities of so many of us"; the closet he has come to decrying the decadence of the dancehall among other cultural corrupters.
POLITICS AND CRIME
His call for colleagues in Parliament to distance themselves from criminal elements is welcome. But he must go further. He must enforce it in his party and make examples of members who violate that rule--no matter who they are.
"A people who take their stand on the high mountain of morality will be a people that will be lifted above poverty and shame. A country with moral compass is a country that can face down hopelessness and despair". Of all the budget speakers, the PM came out on top this year. And especially because of the high notes he struck on values and attitudes the failure to address the corruption issue substantially was a major, major strategic blunder.
His closing, where he paid tribute to the Jamaican people, was rhetorically and strategically brilliant. He closed his presentation by applauding the Jamaican people rather than applauding himself and his Government. Brilliant move.
If this was his last presentation, it was not a bad way to go. PJ Patterson has certainly been a demonstration of the civility, generosity of spirit and non-tribalist approach which he has preached.
Ian Boyne is a veteran journalist. You can send your comments to ianboyne1@yahoo.com or infocus@gleanerjm.com
