Moontown

BARBADOS ADVOCATE – DENIS KELLMAN’S COLUMN - THE DEBATE

DECEMBER 31, 2004

 The old year has almost come to a close and we are about to usher in the New Year. Some of us are going to ask ourselves how many of the resolutions we made this year were kept. While some will ask themselves what have they achieved for the year. We must not waste time on what we have not achieved, but must forecast on what we hope to achieve in the New Year.

This year has been a very productive year for me. Persons who previously did not appreciate my foresight have shown an inclination of acceptance for what I had to say.

Serious political commentators are now predicting that President Bush will be introducing a one-tax system. It is being predicted that he will be introducing a sales tax to eliminate income tax, increase production, disposable income and government revenue, while at the same time punishing consumption.

When this occurs, it will mean that we would have had an opportunity to introduce “Kellmanomics” first, but would have foregone the right, because of foolish pride. The commentators also made the observation that the accounting profession would suffer because of the large number of tax accountants employed at present in the United States of America.

I beg to differ as there will be a shift from accountants who deal with taxes to the ones who deal with costs and a significant demand will be created for costs accountants to help with the increase in production.

The Antigua Administration has just made a serious blunder by introducing income taxes and somebody needs to explain “Kellmanomics” to them. Throughout the world, there is a need for increased disposable income. Firms cannot pay large wages and salary increases without Government revenues interfering with the disposable income of workers or the profits of companies.

I have said before that the only reason that income tax is not abolished in small economies is because politicians believe that it is their “carrot” to election victory and the piecemeal approach is adopted to expand the political life of politicians.

When VAT was introduced, income tax should have been abolished. There was enough evidence to show that because of double taxation, the productive sector and the workers were economically choked and were not allowed to produce at their full capacities due to unnecessary taxation.

I have consistently said that the economic program put in place by the Democratic Labour Party should have included VAT and abolishing income tax, while keeping Government costs intact. The progressive piece of economic engineering was too advanced for the great brains at the time and it has cost this country and its productive sectors.

This practice of “government of incentives” will not take us anywhere, but what we need is a “government of productivity” focusing on current account surpluses and not deficits. This can only occur if we forecast more on reducing costs and forget about reducing direct taxation and abolish it.

I have often said that we need to get the tax accountants out of the board rooms and replace them with cost accountants. We should have a system where revenue expenditure is replaced by capital expenditure and profits not seen as a crime by the shareholders and the public alike.

Welfarism must be replaced by opportunism. Whereas, previously a person was given a handout, that person must now be offered an opportunity to work in the expanded economy due to the shift from consumption to productivity.

If President Bush, in his State of the Union address abolished income tax and introduces a single sale tax I wonder what the critics would say about the “I man”. The “I man” is predicting that the scientist will be able to link bombings to the effect of earthquakes.

I also want to wish all staff and patients in the hospitals and the children homes a Prosperous New Year and I hope they had a wonderful and enjoyable Christmas.

To the workers of Barbados, your job is your lifeline, please do not give it up foolishly to the person who needs it more than you, since it is your investment that must be protected. It gives you dividends every week or month.

(Denis Kellman is the Member of Parliament for St. Lucy, Barbados.)

RIGHT EXCELLENT ERROL BARROW REDUCED BUS FARES

BARBADOS ADVOCATE- DENIS KELLMAN’S COLUMN- THE DEBATE

(November 26, 2004)

This week, politics has created the most significant political landmark in its history. It comes at a time when the Prime Minister has shown who is the man in charge.

Minister Wood would do good to listen to genuine politicians who share the same constituency similarities. Mr. Wood has always been seen as a liberal in the eyes of his constituents and this particular feature was sought after and included in the calculation to help deliver St. Philip from the Democratic Labour Party.

His father’s liberal standing within the parish was compromised to deliver goodwill to his son, who then delivered it to the conservatives within the Barbados Labour Party. Mr. Wood must now explain to the public if he has been removed from his social groundings, and if he is at odds with the liberals in his party, who saw a particular feature about him, that would have made the relationship compatible.

The decision by the Prime Minister to reserve his Minister on bus fares is a very social  position, which leaves no one guessing as to who is the liberal and who is the conservative. It is with interest that a very important issue was dealt with within the last week, when the Road Traffic Act was debated.

Those in a particular social position were left intact. I want to hear the Prime Minister on this issue. I would be happy to hear him outlining to his party the importance of public transport to the country.

It is clear to me that when the Right Excellent Errol Barrow was faced with this problem in the ‘70s, instead of increasing bus fares, he actually reduced the cost. As a result of this reduction in cost, the demand for public transport became obvious when the Barbadian public began showing their appreciation by using the public transportation more and at the same time, enjoying the beautiful scenery of Barbados.

In my opinion, the Amendment to the Road Traffic Act would work against the masses. The Prime Minister has to add his voice to this debate, by asking the Insurance Industry officials to negotiate a better deal than the one that has been passed by Parliament. The reason is the same as was used by the Prime Minister as it relates to bus fares. It is the masses that have to travel in the high-risk vehicles.

No one is asking the industry to jeopardize their policies with the reinsurers, but the reinsurers need the business too, and if we have to make changes, the masses must know what they stand to gain in terms of reduction in rates.

The main point that was missing from the debate was that the reinsurer offered US $1m to other victims. How come it was not offered to us?

Some of us might see S10m as excessive, but we also see the minimum amount of $454 545.45 as unreasonable. So where is the compromise?

We expect our insurers to represent their best interest and that of their clients. As a consequence of liberalization of the industry, insurers should take into account Barbadians would react in a negative way to their own.

Local companies must stop behaving as if they do not have to represent the interest of their clients and then find themselves being ignored when globalization is fully on our doorsteps. We ought to understand by now that some politicians only express the opinion of the masses.

A couple years ago, business persons in Barbados were shocked when Barbadians started to express their opinions on how they saw them as business people and they were wise enough to go back to the drawing board, which led them to appreciate their customers. A good case study would be the Barbadian market to Cable and Wireless.

When you have an advantage, you must care it and not seek to defend it only when there is competition.

(The Honourable Denis Kellman is the Parliamentary Representative for the constituency of St. Lucy, Barbados.)

FIELD PEAS AND RICE; MACARONI PIE

CREOLE BANANA; FRIED SNAPPER

GRILLED TUNA; BAKED CHICKEN

BAKED PORK; STEAMED VEGETABLES

LAMB STEW; FISH GRAVY

TOSSED SALAD

ST. JOHN’S, Antigua – The countries of the Organisation of Eastern Caribbean States (OECS) will be seeking financial assistance from the European Development Fund (EDF) to upgrade the Antigua and Barbuda Hospitality Training Institute into a regional training facility.

The National Authorising Officer for the EDF within Antigua and Barbuda’s Ministry of Finance, Ambassador Clarence Henry, said the decision was reached during a recent meeting of CARIFORUM ministers in Guyana to discuss the 10 EDF priorities for funding.

“Officials have agreed to an allocation of 6 million Euros, which will fund 20 rooms, two blocks of classrooms and a student lounge along with equipment and furniture,” Henry said.

Executive Director of the Institute, Calvin Ambrose welcomed the news, saying he was pleased with the endorsement of the expansion project.

“The money is going to be used for additional classrooms plus…the building of a 20-room hotel with all the necessary furnishing and equipment which will help to further enhance the training product for the institute, not only for Antigua and Barbuda but also for the OECS,” Ambrose said.

The EDF is the main instrument for providing community aid for development co-operation in the African, Caribbean and Pacific (ACP) States.

The 10th EDF covers the period from 2008 to 2013 and provides an overall budget of EUR 22, 682 million. Of this amount, EUR 21,966 million is allocated to the ACP countries.

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The city of St. John’s is now the focus of major restoration work.

The effort is being led by the Ministry of Public Works as government seeks to bring much needed relief to vendors and merchants, who complain of flooding when there are heavy showers.

The work follows a series of assessments by Works and Transportation Minister Trevor Walker of work done in the past by both government and private contractors.

The assessment further identified what needs to be done with the physical infrastructure to rid the city of the drainage problems that currently exist.

During a tour of the city in March, Minister Walker, his engineers and the then Director Charlesworth Davis were made aware of the severe drainage problems vendors and merchants in some areas of St. John’s were forced to endure following the improvement work that was carried out for Cricket World Cup in 2007.

The minister made a pledge during the tour to the affected business people that corrective measures will be taken to remedy their plight.

However, due to the limitation of resources and of financial backing work began on St. Mary’s street only a week ago and has been gaining pace since then.

The minister noted that the ministry had to utilise the services of the Cubans that are already on the island, as opposed to private contractors, because of the limitation in resources.

The restoration work currently being undertaken on St. Mary’s street includes an extensive overhauling of the shallow drainage system, as a means of making it more profound.

Work is expected to continue from St. Mary’s Street to High Street and unto other identified problem areas, in government’s aim of doing whatever it can to ensure the citizenry is comfortable.

Political leader of the Antigua Labour Party Lester Bird is calling Thursday a red-letter day as his party prepares to mount yet another protest through St. John’s in condemnation of the performance of the United Progressive Party government.

“When we march together on Thursday October 8th it must be a red-letter day,” Bird stated in his weekly broadcast address.

In explaining the reason for this latest march, Bird listed a list of misdeeds and bad decisions taken by the United Progressive Party government that has brought hardships on the people of Antigua and Barbuda.

“Next Thursday, 8 Oct., we have the opportunity to register our dissatisfaction with the UPP regime that now mismanages our country bringing hardship on our people that we have not known for over a generation,” he stated.

“The UPP’s only answers to this dreadful situation are: more taxes on the people; more dismissals from the public service and an IMF programme,” he stated.

“Just this week, the finance minister, Harold Lovell, revealed that the UPP government is increasing fees and charges for services to the people for which they already pay taxes,” he stated.

He also accused the government of seeking to increase the embarkation tax at a time when the tourism sector is going through its most difficult time ever.

“A further indication of their failure to consider the consequences of their actions is that the finance minister has announced that he plans to double the non-citizen land holding tax,” he added.

He said the country is still awaiting to hear the terms for the US$50 million loan/grant from Venezuela.

“As the people of this nation are aware, all governments are required to get the approval of Parliament for monies they borrow. Yet, this government in the shadows has not brought one of these heavy borrowings to the Parliament of this country,” Bird complained.

He also called out persons to march with the party because of the failure by the government to investigate the charge of bribery levelled by Health Minister Wilmoth Daniel against a fellow Cabinet member.