Economic woes are upon us

Published: Thursday | July 9, 2009



Devon Dick

Last Friday, at the Press Association of Jamaica's (PAJ) launch of its Press Institute with its focus on being a public-affairs think tank, Claude Robinson, veteran media practitioner, spoke on the historic role of the media in Jamaica's development. And Dr Hopeton Dunn, chairman of the Broadcasting Commission of Jamaica, bemoaned that much of the opinion pieces in Jamaica were not data driven. I agree and so I have tried to base my columns on research.

In 'Where are the taxes to come from?' (May 7), I argued that it is unrealistic and unreasonable of the Government to craft the largest tax package in Jamaica's history in an environment of economic decline of 3.5 per cent. I ended the article by saying, "Mr PM, it cannot come from the people." And the latest government data state that the revenue was down by $5 billion. Should I say, I told you so? It is amazing that the Bruce Golding administration and private-sector leaders could not perceive that the Budget could not work.

Adverse ripple effects

I also said, "Furthermore, the European Union is due to decline by four per cent this year and I cannot see Jamaica doing better than the European Union when it is realised that Jamaica normally does three per cent worse than the world economy 1962-2007. In other words, the economy is likely to decline more than the Government expects." The latest projections have said the economy was expected to decline further than figures given by the Government in April.

On April 23, I wrote, "An increase in gas tax will have adverse ripple effects throughout the economy. Furthermore, my understanding of the oil futures market is that by June 2009, a barrel of oil will increase to US$60." As we are aware the June price did reach that price tag. It is not that I have predictive abilities. It is just doing one's homework. When Clive Mullings was minister of energy, while the price of oil was increasing and had reached US$120 a barrel he said it would decline to $80, and it did. These forecasts are based on following trends and examining economic variables. Therefore, good and smart leaders make plans based on certain expectations.

In the United Kingdom, a study was done to indicate the likely number of homeless persons as a result of the economic fallout. Where is a similar study in Jamaica? We are like the Biblical priest and Levite in the parable of the Good Samaritan, who ignored the man who fell among thieves. Do you sense that there are more beggars on the streets? Do you have more people with genuine cases of hardships? As the economic woe is upon us we are in denial and also ignoring the persons who are hurting. Because financial institutions are doing well and some persons have never had it better, does not mean it is okay for the majority?

The Budget needs to be recast. The Government must look at the $75-billion worth of contracts in the Budget and prune. The Government needs to act quickly and institute a US$100 fee for visas for non-CARICOM citizens to enter Jamaica (See 'An Alternative to the Gas Tax', April 23). This could raise US$120 million.

Environmental tax

Since my suggestion, Delta Airlines has imposed a US$50 charge on luggage for international travellers. And the British government has imposed an environmental tax on British travellers. The idea of a visa regime is that holidaymakers have disposable income and a $100 will not affect those travellers. Visa fees add billions to the coffers of Britain and the United States and we need to try it.

Economic woes are upon us and it's time to try something different.

Devon Dick is pastor of the Boulevard Baptist Church and author of 'Rebellion to Riot: the Church in Nation Building'. Feedback may be sent to columns@gleanerjm.com.