Amendment to Public Debt Management Act passed
Published:Friday | December 15, 2023 | 12:10 AMCarl Gilchrist/Gleaner Writer
Finance Minister Nigel Clarke had full support on Tuesday as he sought to pass an Act to Amend the Public Debt Management Act, to allow the Government to borrow funds for pre-investment planning and development activities.
“Section 10 of the Public Debt Management Act authorises me, as minister of finance and the public service, to borrow for a number of purposes, which include financing the fiscal deficit, refinancing maturing and outstanding debt, facilitating cash management operations and financing investment projects approved by this honourable house, amongst other things,” Clarke told Parliament.
However, it does not allow the Government to borrow for pre-investment planning and developmental activities, hence the need for the amendment.
The minister explained that exploratory services demand critical financial resources which the Government cannot always accommodate in the budget, and pointed out that several multilateral and bilateral projects offer financial services to include project preparation.
The amendment allows the Government to seek funding from these sources.
“Concerning the increase in capital projects being undertaken by the Government, it would be prudent for the Government to take advantage of these offerings, and this proposed amendment allows the Government the flexibility to do so,” Clarke added.
He said that while the act has several reasons that allow the Government to borrow, it does not include project design and project preparation.
Shadow Minister of Finance, Planning and the Public Service, Julian Robinson, supported the amendment but questioned the criteria which the Government uses.
“It’s not a controversial amendment and we don’t have an objection to what you’re attempting to do. In relation to the pre-feasibility study, before you even get to the pre-investment stage, what are the criteria the Government uses to decide whether the clock starts ticking on the feasibility that you would have to pay for?”
Clarke responded: “We don’t have feasibility as one of the reasons to be able to borrow; pre-feasibility will have to be financed from government resources.”
He added that the most important thing is the extent to which it aligns with the Government’s plans.
Shadow Minister, Industry, Investment and Global Logistics and leader of opposition business, Anthony Hylton, also spoke in support of the amendment.
“I fully support the intent; I see the need. I do believe this will advance the process,” Hylton said.