Archive for October 30th, 2009

FOREIGN RESERVES GENERATION PART OF THE PROBLEM

Friday, October 30th, 2009



DENIS KELLMAN’S COLUMN – THE DEBATE

Barbados Advocate

October 21, 2005

Recently, I have been asked if persons with whom I am associated, appreciate what I have been saying and writing over the last 11 years. I was told that institutions that accepted what I said were able to gain from such pronouncements.

These persons are now openly saying that they do not want me to make any predictions about them that are negative. They have been able to repeat many things which I have said previously that have happened and are now of the opinion that those who do not listen to what I am saying, will fail miserably.

I have been reflecting on what these persons have been saying and recognized that some institutions and the country have not developed at the required rate, because some persons do not want to acknowledge that I am capable of providing the solutions to the current problems.

Over the years, I have written that the problem facing this economy has more to do with the capacity to generate foreign reserves and not revenue. Within the last 11 years, I have witnessed a propensity to brag about revenue and foreign reserves that have not been earned by productive means. Our foreign reserves for the past 11 years have increased because of borrowing, property transfers as it relates to local properties and the relocation of returning nationals.

Some time ago, I wrote that we as a country have not appreciated the contribution of returning nationals and neither have we fully studied their financial planning. Had we fully appreciated how we could gain from them, by allowing them to enhance our reserves, we would have put instruments in place to truly measure their contributions and compensate them by encouraging them to relocate their full savings in order for us to get that needed foreign exchange.

For this suggestion to be fully appreciated, we must first understand that the costs of external borrowing are far greater than the costs of compensation for returning nationals. These persons have created new foreign reserves without any negative outflows. I am suggesting that we have to first look at how it will benefit them to fully relocate their savings, measure the benefits and look to see what it would costs us to fulfill that dream.

When this Government sought to borrow $300m, I suggested to the government to seek help from the returning nationals, in order to fulfill their foreign reserves need. The reason I was concerned  was because we were about to pay out $442m in interest charges to outside sources without this initial amount generating any revenue and foreign reserves to service itself.

People must appreciate that the inflows from returning nationals are to service their current demands while their savings are still located in the country of their production, therefore these savings will not be brought to the country of residence by accident.

These persons see their savings as their investment to generate revenue and they will continue to maximize their returns. We must offer them something better than what they are receiving now, and the same way that we pay interest rates above par for loans, we must be prepared to offer them rates above the current savings rate which they are now receiving elsewhere.

In 1973, we set up our own Central Bank and created our own currency. This action caused us to increase our purchasing capacity by 25 per cent by linking our currency to the US dollar, a country that practices the Republican style of Government, even though seven years previously, we took independence from England, but refused to do it fully to make sure that we could practice a foreign policy of “friends of all, satellite of none”.

Twenty-five years later, the economy is supposed to be a lot better than in the early 1990s, yet we are now hearing that we should be adopting the EC currency. This decision will devalue our currency by about 25 per cent and will put us back to our 1973 position.

The key players are now admitting that we have not progressed over the last 11 years and that the decision not to devalue in the early ‘90s was a vote of confidence in the leadership. We are now worse off in 2005. This has occurred because we now have all our eggs in one basket. In the early ‘90s, we had our eggs in many baskets, even though they might not have been performing at the rate we expected.

I saw in another section of the press that a Special Conference will be held on November 19, 2005, and on the same day an amendment to the Constitution will be debated and voted on.  This action is not as simple as the reporter would want one to believe. The importance of this amendment can create debate for a whole day.

The ballot for the constitutional change must be secret and this must be treated as a serious matter. Those persons supporting the change must be given an opportunity and this must be treated as a serious matter. Those persons supporting the change must be given an opportunity to present their case and those against must be offered the same opportunity.

After the two-thirds majority is sought, the party must be in a healing position and those persons in charge of the party must do nothing to interfere with the good name of the party. If the two-thirds majority is achieved,  persons must be given an opportunity to decide whether they want to contend the position, acknowledging that the chairman will now be the Political Leader to suit the party’s constitution and will not be binding  on the supreme Constitution.

The vote for Political Leader should not be on the same day, because it will be too time consuming and all candidates should know the persons eligible to vote by name and address for verification.  Please note that I have always taken a stance to suit circumstances and when they change I am subject to change also.

Dr. Eric Williams once said that one from ten leaves zero, but that was in his time, because today, one from ten leaves nine equal persons. Please let us fight fairly and think party not self.

Peace, love, unity, fairness and truth.

(Denis Kellman is the Parliamentary Representative for the parish of St. Lucy, Barbados)

POLL ABOUT LEADERS MISLEADING

Friday, October 30th, 2009



DENIS KELLMAN’S COLUMN – THE DEBATE

Barbados Advocate

September 30, 2005

Last Friday, another section of the press reported that it would be publishing the results of questions asked in its poll. The main question was: “How do you rate the leadership of Owen Arthur, Clyde Mascoll, Mia Mottley and David Thompson?”

It was later reported that Owen Arthur got 33 per cent, David Thompson 28 per cent, Mia Mottley 22 per cent and Clyde Mascoll 10 per cent. These four persons were the ones identified in the poll as the only possible leaders. The two BLP leaders got 55 per cent of the votes, while the two DLP leaders received 38 per cent.

The percentages must be carefully monitored and the political scientists must tell the public how they arrived at the combination of candidates for the poll. The person who commissioned the poll did not match the candidates fairly. How can you have a poll about a party leader and an Opposition Leader versus a party leader/Prime Minister and a Deputy Prime Minister?

It is clear that the person who commissioned the poll did not realize that Dr. Estwick is the Deputy Leader of the DLP and should have been included. If Dr. Estwick was not included as the Deputy Leader of the Opposition, then Mia Mottley should not have been included as Deputy Leader.

It seems that in Barbados, it is not about who the people want, but it is about what too few want. It is obvious that the leadership in Barbados is being planned in rooms and some persons in the press have already dedicated their time to the cause.

Politicians like myself believe in pride in oneself and cannot claim to be part of society only because of profession and politics, but because of roots, cannot allow people who have been accepted late in their lives to behave as though they are the new masters. Nobody who knows my background can tell anyone that I have ever been a snob. It worries me when I see people who have recently gained something in life behaving foolish.

People say that I am arrogant because I do not accept foolishness from anyone. Pride was a virtue instilled in us from the time we were kids and things our friends could do and say, we could not as a result of our upbringing.  We were always told by our dad that money does not make you a man, but manners and your deportment.

We have seen changes in society and we sometimes wonder why the changes are occurring, but have never stopped to consider that the ones who are the leading lights are so full of snobbery that the youngsters are no longer seeing them as role models. Young political scientists will soon question the conclusions of their seniors when they are able to analyse their conclusions based on statistics and data that do not match.

How can political scientists and commentators continue to conduct polls and one name keeps recurring in every poll since 1999, and they never stop to highlight the particular fact, even though it is so obvious? The public is not only speaking about this lapse, but they now have a clear picture of the snobbery in society that has more to do with cliques than anything else.

I am now in a better position to understand why some persons have always ignored the positive movements of the O’Neale family. I would be stupid to believe that the movement that was started by Duncan O’Neale continued by Errol Barrow and now being carried on by myself with the same type of opposition, be any different.

One thing I cannot do is to change the approach, the fight must be for all. Duncan fought for the rights of the underprivileged to be accepted, Errol fought to make sure that they were empowered and I will continue to make sure that they have a role in the isosceles triangle.

Many have made technology and the capital owners are now using man to destroy themselves by using that which they have created. The educational system and movement created by the Right Excellent Errol Barrow is now being used by the beneficiaries of the system to destroy their equals and seniors. The name Denis Kellman has embarrassed the gurus who continue to believe that they can tell the masses who should be their hero and who is the one best to represent their interest.

We are seeing a repeat of what occurred in the 1960s when certain comrades did everything to stop the Late Right Excellent from leading the party from which the movement was started. The Barbados Labour Party has treasured the Mottley, Miller, Adams and hopefully the Arthur name, providing that he can get them to accept his contribution after he has been used to deliver the goodwill that should have been inherited by the DLP.

The Democratic Labour Party can feel good about the poll, if it can get its members to focus on what its political leader has stated in response to the poll. We must accept what the poll has provided and reflect on what brought the BLP to Government in the nineties. The message sent to the BLP then is now being sent to us by the same public who will not allow a too few to dictate to them.

The DLP has always been seen as the party for all, protecting the interest of the masses, while looking after all, but not being dictated to. We have never been able to capture the imagination of the capital class, but have always done things for the masses, that they the capital class were able to benefit from. Our members never expected to be on their retainership and we have always been their second class citizens due to our philosophy.

We as a party will continue to have politicians who understand their commitment to the working class and who also understand that there is a relationship between capital and labour. Leaders must lead and not be led. It is a proud record left by the O’Neales and Sir Lloyd. This is what has separated the DLP from the BLP and that is why workers were misled in the nineties. It is known that progress for the masses always comes with hardship in the beginning, but glory in the end.

Peace, love, fairness and unity.

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

West Indies paceman Powell signs for Lancashire

Friday, October 30th, 2009
 
LONDON, England (AF) — West Indies paceman Daren Powell has signed a two-year deal with Lancashire, subject to visa and registration, the English county cricket side confirmed on Thursday.

The 31-year-old has won 37 Test caps for West Indies and has experience in county cricket having played at Hampshire during the 2007 season.

Daren Powell in action for the West Indies

Powell is Lancashire’s second high-profile signing of the winter after England Lions opening batsman Stephen Moore earlier this month.

“Daren is a talented bowler with genuine pace, who will complement our existing bowling unit,” Lancashire head coach Peter Moores said.

“Next season we will be playing a lot of cricket, even more than this season, so we needed to strengthen our bowling options to ensure we remain not only competitive, but are challenging for silverware.”

Powell had offers from other counties before deciding to join Lancashire.

“I’m very excited to be joining Lancashire; they are a big club and from what I hear, have big ambitions,” he said.

“I did have other county opportunities but I’ve always enjoyed playing at Old Trafford and believe I can make a real contribution to the team over the next couple of years.”

Agriculture critical to reducing poverty, says Director General of IICA

Friday, October 30th, 2009
 
MONTEGO BAY, Jamaica (OPM) — Director General of the Inter-American Institute for Cooperation on Agriculture (IICA), Chelston Brathwaite, has noted that agriculture is critical for reducing poverty in order to achieve the Millennium Development Goals and for national development.

Director General of the Inter-American Institute for Cooperation on Agriculture (IICA) Chelston Brathwaite, making his address at the official opening ceremony of the Fifth Ministerial Conference on Agriculture and Rural Life in the Americas on October 27 in Montego Bay.

Speaking at the 5th Hemispheric Meeting of Ministers of Agriculture of the Americas and the 15th Regular Meeting of the Inter-American Board of Agriculture in Montego Bay on Tuesday, Brathwaite said that agriculture can help to diminish the impact of the global climate change, improve nutrition and ensure food safety and security.

“It is clear to us that our food security problems are not over and that the recent reduction in food prices is from the reflection of turbulence in international markets, and issues of demand and supply” the Director General of IICA said.

He added that the drivers who were blamed for the food price crisis last year, which include drought, change in exchange rate and the increased demand for food in China and India, have not gone away.

“The increased population and increase in prosperity in the developing world will continue to increase the demand for food, and increase the emphasis on food safety with increasing challenges to agriculture production in a world where land is not increasing” Chelston added.

He said that these factors can cause resurgence of turbulence in the future, if nothing is done.

FRIDAY’S SPECIAL MOON TOWN BARBADOS

Friday, October 30th, 2009

RICE AND PEAS; STEW FOOD AND CHICKEN

CORN MEAL COU COU; MACARONI PIE

SAUTEED BREADFRUIT;  BAKED CHICKEN

BAKED LAMB; BAKED PORK; BBQ PIG TAILS

BBQ SPARERIBS; GRILLED STEAK FISH

FRIED POT FISH; FRIED SNAPPER

FISH GRAVY; LAMB STEW

STEAMED VEGETABLES

TOSSED SALAD

Trinidad cement company failing to meet expectations, says Guyana official

Friday, October 30th, 2009
 
GEORGETOWN, Guyana (GINA) — Noting that there have been developments associated with the provision of cement on the local market by Trinidad Cement Limited (TCL) and its local subsidiary, TCL Guyana Incorporated (TGI), Cabinet Secretary, Roger Luncheon, Thursday, stated the regional cement company is failing to meet the expectations of the Caribbean Region.

“Guyana and other (Caribbean Community) CARICOM states contend that the ability of TCL, the regional supplier, to adequately and reliably service the needs of the region is inadequate. They cannot meet the region’s demand,” he stated, indicating that in the Caribbean, demand for cement is at an all time high.
The Cabinet Secretary was, at the time addressing the media, during his weekly post-Cabinet press briefing at the Office of the President.

Luncheon told the media that since the Administration moved to reinstitute the Common External Tariff (CET) on cement from non-CARICOM states in accordance with the recent ruling of the Caribbean Court of Justice (CCJ), reports have been surfacing more and more of TCL’s inability to meet its contractual and other obligations currently on the domestic scene.

Further, he stated that questions have been raised about the technical standards of the cement product by the company.

Together, these two impediments of TCL – their inability to meet local demand and the technical standards of their supplies – have impacted negatively on logistics, Luncheon concluded.

Guyana not worried over British pull-out from security sector reform

Friday, October 30th, 2009
 
GEORGETOWN, Guyana — The Guyanese government on Thursday said, while the pull out of the British government from the reform of the local security sector will have some physical impact on the project, they are not so worried since the state will fill this gap.

Guyana’s Cabinet Secretary, Dr Roger Luncheon

Government spokesman and secretary to the cabinet Dr Roger Luncheon told a media conference that the 4.9 million pounds sterling was just one aspect of the reform with other funding coming from loans by multilateral institutions and an input by the government of Guyana

“The pull-out by the UK for security sector reform for Guyana is not fatal,” Luncheon stated, adding that when the administration crafted the strategic security reform, issues like these were taken into consideration.

“When we crafted this plan we had three pillars that it was built on regarding funding, and what we wanted to ensure was that there were minimal overlapping. So the disengagement of the Brits (British) will not create much of a strain, so we don’t have to panic since the amount that the Bits were putting will be covered by public funds, it will come from the treasury,” he said.

Giving his account of the reason behind the pull-out; Luncheon said the issue that led to the breakdown was that of national ownership of the reform project.

According to the official, during a meeting in December of 2008, an agreement was made on the project which was later approved by the UK and in which Guyana was named as the national owner of the security sector reform.

However in April, the proposal was sent back to Guyana with a number of changes making Guyana just a consultant in the process.

The government spokesman said the government position remains the same as it relates to the sovereignty of Guyana.

“Guyana owes no apologies when it comes to its entrenched position on the inevitability of our national sovereignties,” Luncheon said.

Luncheon adds that filling this gap to ensure the security sector reform is successful is not a big task for Guyana despite the opposite view of some.

“Some obviously feel that Guyana cannot manage a grant of that magnitude… despite a history of sound financial management since we took office in 1992,” Luncheon stated.

However, the main opposition People’s National Congress Reform (PNCR) has a different view of the saga and said at a media conference on Thursday that the withdrawal of the British was as a result of “Jagdeo’s arrogance and deceptive consultations.”

The party noted that the failure was clearly as a result of the bad faith on the part of government and ”its failure to ensure genuine stakeholders consultations as agreed, its failure to ensure genuine parliamentary oversight and refusal to agree to management model that would ensure transparency in the application of the funds by the donors.”

Grenada PM wants more professional public service

Friday, October 30th, 2009
 
ST.GEORGE’S, Grenada — Prime Minister Tillman Thomas has called on public officers to take a more professional approach to delivering service to the Grenadian people. The Prime Minister made the call on Thursday, while addressing the closing ceremony of a three day training exercise for new entrants to the public service.

Grenada Prime Minister Tillman Thomas (R) presents a certificate to a participant

“Government’s services are expected to be at a comparable quality with that in the private sector. As a result, public sector officials need to be proficient, knowledgeable and proactive, if they are to respond adequately to the demands of the Grenadian public,” Thomas told the twenty-four participants.

He said they were now equipped with information and knowledge to be better Public Officers. The Prime Minister said the public service requires officers capable of improving the level of efficiency, effectiveness and productivity to address the many challenges that confront Grenada, in the face of the global economic crisis.

“The role of the bureaucracy in facilitating changes, enforcing and monitoring regulations and delivering quality services, assumes greater significance in this period as we attempt to maximize scarce resources, reduce costs, improve productivity and generate greater synergies,” the Prime Minister said.

“You have been given the requisite tools and information. You are now expected to utilize it effectively to become change agents working in your individual areas to make a difference. The public is looking forward to a visible difference in performance as we seek to cater to their needs,” he said.

The Prime Minister told the young public service employees that their collective actions can positively influence the nation’s perception of the public service.

The training was facilitated by the Department of Public Administration, which is part of the Prime Minister’s portfolio.

Head of CARICOM Office of Trade Negotiations visits Barbados PM

Friday, October 30th, 2009
 
By Gillian Applewhaite

BRIDGETOWN, Barbados (BGIS) — Director General of the Office of Trade Negotiations of the CARICOM Secretariat (formerly the Caribbean Regional Negotiating Machinery), Ambassador Gail Mathurin, paid a courtesy call on Barbados Prime Minister David Thompson on Thursday.

Prime Minister David Thompson chatting with Director General of the Office of Trade Negotiations of the CARICOM Secretariat, Ambassador Gail Mathurin, during a courtesy call

Negotiations on the Free Trade Agreement between Canada and CARICOM, and the World Trade Organisation were the main areas discussed.

During the 20th Inter-Sessional Meeting of the Conference of the Heads of Government of CARICOM, in March of this year, the CRNM was incorporated into the CARICOM Secretariat as a specialised department.

Subsequently, at the 30th Meeting of CARICOM Heads of Government in Guyana in July, another decision was taken to rename the CRNM as the Office of Trade Negotiations.

The Office of Trade Negotiations has extended responsibility for the coordination, development and execution of negotiating strategies for all CARICOM external trade negotiations.

Insurance companies to be adequately regulated, says Barbados minister

Friday, October 30th, 2009
 
By Gillian Applewhaite

BRIDGETOWN, Barbados (BGIS) — The Barbados government is determined that the ability of European and other overseas insurance companies to do business with their local counterparts, would not be compromised because of inadequate regulations.

Minister of State in the Ministry of Finance, Investment, Telecommunications and Energy, Senator Darcy Boyce

That was the promise from Minister of State in the Ministry of Finance, Investment, Telecommunications and Energy, Senator Darcy Boyce, on Wednesday as he delivered an address at the 25th anniversary of Toronto Dominion Bank Financial Group’s (TDBFG) operations in Barbados.

Boyce noted that the new Solvency II Rules, which will be implemented across the European Union Member States in October 2012, would introduce “new economic risk-based solvency requirements” which would be more sophisticated than in the past.

He explained that currently, the solvency regime concentrated mainly on the insurance risk, while Solvency II would also include the asset risk, which he described as “total balance sheet” type of regime.

“Already, the Government of Barbados has obtained, and put in place, international technical assistance for the Office of the Supervisor of Insurance. Government has also established a number of new professional positions for that Office and is in the process of recruitment of staff to fill those positions.

“In addition, the Financial Services Commission will be established in the first half of next year to further strengthen the level of supervision in the non-bank financial services sector,” he stated.

Boyce also mentioned that the TDBFG was interested in partnering with government, and the various supervisory bodies, to ensure that Barbados remained a preferred financial services domicile.

“I know that with the ever-increasing international regulations, the TD Bank Financial Group of companies consider it critical to their future success in Barbados, that the level of supervision in the banking sector continues at a high level and becomes also the hallmark of regulation and supervision in the rest of the financial services sector,” he observed.

Commending the group for “the great faith it showed in a small, new international financial sector 25 years ago”, the Minister said that, together, the companies had a record of solid financial performance and continual business growth since their inception.

“The companies have also been good corporate citizens, donating to a number of charitable and environmental causes annually, [such as] Barbados Cancer Society, Verdun House (Substance Abuse Programme), The Duke of Edinburgh Foundation Trust, Barbados National Trust, Special Olympics, and to various schools and district associations,” Senator Boyce observed.

There are four members of TDBFG currently operating in Barbados, namely, Canada Trustco International Ltd., TD Reinsurance (Barbados) Inc., Toronto Dominion International Inc., and TD Capital Private Equities Investors Management (Barbados) Limited.