Get rid of municipal corporations
Published:Wednesday | October 8, 2025 | 12:07 AM
THE EDITOR, Madam:
Mr John Mahfood, former president of the Jamaica Manufacturers and Exporters Association, has called for cuts to the size of the public-sector workforce as a way of reducing the public-sector wage bill and to spur growth in the economy. This proposal is not without precedent.
In the early 1980s the Edward Seaga-led government, in order to reduce the public-sector wage bill, made approximately 18,000 positions in the public service redundant. Many who lost their jobs readily found employment in the private sector, while more started small businesses with the redundancy payout they received. The plethora of small businesses started in the 1980s contributed to the annual growth rate of eight per cent achieved in 1987. Based on this history, there is merit in Mr Mafood’s proposal.
In my view, there is one section of the public sector that could be easily abolished with little or no effect on the economy or performance of the government. For every function that municipal cooperations undertake, there is a central government agency or department that has the same or similar function. Abolishing municipal corporations and transferring their function to the central government would not be complicated.
Presently, the wage bill for the 228 parish councillors is J$1.36 billion in basic salary. This is approximately 50 per cent more than the wage bill for the basic salaries of members of parliament. Consider, too, the wage bill for the support staff for the parish councillors, and the rent paid by some of the municipal corporations for the buildings they occupy. The savings that will accrue by abolishing municipal corporations will be much more than just the wage bill. So let’s start with abolishing the duplicative municipal corporations and redirect the money saved to much more productive use.
ALWYN GREGORY
Manchester