Budget Address Response – March 24, 2015 – Hon. Lillian Misick
Mr. Speaker,
I salute the Government, and commend the Minister of Finance for presenting the 2015/2016 Budget on time. Mr. Speaker, I believe it is important that as we acknowledge the positive outcomes and the financial performance, and the success that this government has achieved to date, it is also important that we acknowledge that the success that this government has achieved to date, are due to the prudent financial principles and sound structures initiated and implemented by the Interim Administration.
I applaud the Minister of Finance who has embraced and adhered to the stringent measures and guidelines which have enabled the Government to achieve the success it has to date. This Budget Mr. Speaker, vindicates all who have been criticized and berated over the merits of the Sinking Fund and the other structures which form the basis for our financial freedom going forward. The plant is now bearing fruit; I applaud him for recognizing that the astute investor is by no means myopic, he invests for the long term.
This Mr. Speaker is the cornerstone and pillar on which investors are now using as a yardstick in dealing with the country as a whole.
Yesterday in this House, we heard the Minister of Finance, the Leader of the Opposition and the Governor’s Appointed member, male, speak of the positive benefits derived from sound fiscal policies and stable government. Indeed the Minister of Finance paid tribute to the late leader of Singapore Lee Kuan Yew, for transforming his country into an international force to be reckoned with based on the sound financial principles he adopted.
The Governor’s appointed member said that there is a striking similarity between Singapore and us…stable government. This sentiment was also recently expressed when the acting Permanent Secretary and the refinancing Advisor met with regional institutions in Trinidad and Tobago with regards to refinancing the government’s debt…sound financial structures. And the Governor, in the Throne speech presented earlier this month noted the symbiotic relationship between the Public Financial Management Structures and debt restructuring, and cautioned against the tampering of these structures. I again applaud the Minister for his stance in this regard. However, I note with amusement though that the Minister appeared to have overlooked the fact that the officials recognized and commented on the stability of our relationship with the UK as an integral component in our future endeavors.
Mr. Speaker, the Minister of Finance said that not a single dime will come from new taxes to support this $224.7m budget.
I know the Minister of Finance is an avid reader of substantial literature; he opened his remarks by quoting from Charles Dickens “A tale of two cities”. I believe Mr. Speaker that the Minister may have read and been guided by the sound advice of
Ali ibn Abi Talib, the first fourth Caliph of the Islamic state; in his letter to the Governor of Egypt, Malik al-Ashtar some 14 centuries ago. A careful reading of the quote below shows that he explicitly says that revenues might rise in time because of this reduction of taxes. He writes:
“If the tax-payers complain to you of the heavy incidence to taxation, of any accidental calamity, of the vagaries of the monsoons, of the recession of the means of irrigation, of floods, or destruction of their crops on account of excessive rainfall and if their complaints are true, then reduce their taxes. This reduction should be such that it provides them opportunities to improve their conditions and eases them of their troubles. Decrease in state income due to such reasons should not depress you because the best investment for a ruler is to help his subjects at the time of their difficulties. They are the real wealth of a country and any investment on them even in the form of reduction of taxes, will be returned to the State in the shape of the prosperity of its cities and improvement of the country at large. At the same time you will be in a position to command and secure their love, respect and praises along with the revenues.”
Having regard for the foregoing, I believe the people of this country welcome the removal of the Freight and insurance Tax which has made the costs of basic items prohibitive. Mr. Speaker, this was compounded by the unscrupulous practices of some business persons who capitalized on this by increasing their prices weekly, and sometimes daily. The mention of the government’s intent to increase minimum wage, saw an immediate escalation in prices at the supermarkets. The prices of goods are not displayed on the items, and I believe this is deliberately done to manipulate prices on the scanners. If, as the Minister opines that “…we (govt) are on a path that is generally to the advantage of the masses,” then I look forward to an allocation in this budget for increase resources to police this sector.
Mr. Speaker, the Minister in referencing employment said that “The Government is fully aware that the day to day life can be rough for some of our people. But, he said, the notion of unemployment is not borne out by the facts, and pointed to a correlation between unemployment and crime rate. Needless to say, Mr. Speaker, he provided no evidence to support the assertion. I believe that the NIB/NHIB data will give a reasonably accurate indication of the number of persons who are employed. The data used is based on receiving monthly reported employment of all individuals in the employment of employers, plus all self employed. It won’t be absolutely accurate because we do not have accurate population data or accurate labour force data, so it makes it hard to predict unemployment.
However, Mr. Speaker, the issue as I see it, is not the unemployment rate, it is how to get “TIs” fully employed. This requires a three pronged strategy, namely:
1. Undertake a study to identify those persons who are unemployed and under employed. This includes setting up a website and office where TIs can self identify as being unemployed or under employed in a confidential fashion so that the Labour Dept officials can assist them. As part of this process persons would get career counseling and assistance in developing areas of skills aptitude.
2. Establishing a customized “Skills Matching” system to match individuals to job opportunities. The job matching would identify what each person requires and to set out an action plan to maximize the changes of employment. Unemployed persons are interviewed to determine skills and expertise and what they need in order to be employed. This might include assistance in identifying jobs, interview training, etc for unemployed persons or “skills upgrading” programs to give persons with basic qualifications additional skills, or setting up specific “mentoring” jobs where the staff persons may understudy other persons. Mr. Speaker, I am of the view that The Immigration Ordinance should move away from broad brush bureaucratic systems and focus attention on ensuring that those who need employment are targeted to places where they can get the employment or are given additional resources to help them get there.
3. Linking scholarships and training funds to giving priority to persons who are un employed or under employed in order to maximize their chances of success and also ensure that those who take the training and succeed are “bonded” to return to TCI to contribute to the country.
And Mr. speaker, if we are truly sincere about vocational training, we need to expunge the negative connotation ascribe to the vocational sector, that this group is not academically inclined and halt the promotion of a caste system in this country. Mr. Speaker, the vocational areas are that sector where the majority of jobs are generated, and the hourly rate for these persons are far above the minimum rate. It is time that we recognize that this is vital not only for the balanced development of this country but that it is the cornerstone of any economy.
There is a fourth strategy element and that is for the Government to become actively involved in developing the SME sector. Mr. Speaker, I note the Government’s decision to slash Business Licence fees by an average of 50%, essentially to the level where it was at before the tax increases. The Minister further said that it is anticipated that this will encourage more Belongers to launch or expand their businesses. Mr. Speaker, many of our local persons who could not find work in the past few years have gone into business and have failed, not because they lacked the characteristics of business persons, but because they need access to financing and they are getting little if any assistance. The SME study has recommended creating a SME Enterprise Center and I fully endorse that concept and I urge the Government to allocate the necessary financial resources for its establishment. The Premier promised a big push on SME development in the Throne Speech and that is a key element of success. I believe therefore that we are on the same page in this regard.
Mr. Speaker, the Business community, residents of Grand Turk, particularly Community College students and taxi drivers, who must endure the treacherous ordeal each and every day commuting on the Lighthouse Road, are disheartened by the fact that the government has made a conscious decision in this budget not to make provision for works to be undertaken immediately to repair the worst road in Grand Turk. Traversing this road places every commuter at risk. A college student has describe this commute as “the HOLEY experience.’ (I repeat HOLEY)
Mr. Speaker, taxi drivers and other service providers have also expressed their concerns given the negative feedback from their clients, and the adverse impact it is having on their business, and the country as a tourist destination. It is noteworthy and appalling that the students and visitors who are such an integral part of this economy have to endure such an ordeal. Drivers have taken to the bush, creating new road to avoid the increasing craters. The question asked by many is why is the government consciously seeking to destroy the economy of Grand Turk, given the importance of the industry and on which the financial well being of so many hinges? The Minister acknowledged that cruise ship passengers increased by 24.8%, and he further noted that this sector is the real bone to the economy of Grand Turk. It has been mooted that the Government says it is not their responsibility to fix the road. Pray tell, whose responsibility is it? This is a serious concern and I urge the government to address it forthwith.
Mr. Speaker, I have commented in this House about the importance of ensuring that public servants receive the requisite training to execute their tasks efficiently and effectively. The myriad complaints about locals not having the opportunity to ascend to top positions in this country, is on going. While, Mr. Speaker, I understand the need to source skills from outside in certain instances, there is a critical need for oversight to ensure that those charged with the responsibility have the relevant experience and there is transferal of knowledge and skills to ensure continuity. I am therefore heartened that the government has recognized its importance to sustainable development and allocated $250,000 to ensure access to personal and professional opportunities.
Mr. Speaker, it behooves our young public servants, and young people in general, to understand that no position in this country is tattooed on their umbilical cord. I believe in and subscribe to the principle of meritocracy.
It would be remiss of me therefore if I do not add a word of caution and advice particularly to our young public servants and by extension to the youth of this country. And that Mr. Speaker is, ‘the elevator to success is out of order, you need to take the stairs, one step at a time.’
Mr. Speaker, Alfred North Whitehead, a 19th century mathematician and philosopher said,
“No one who achieves success does so without the help of others. The wise and confident acknowledge this help with gratitude.”
I wish therefore to join the Minister of Finance and the Leader of the Opposition in commending the public servants who have worked tirelessly to ensure the completion of this budget for its on time presentation to the House.
Thank You Mr. Speaker
