Barbados Opposition Leader blasts budget

BRIDGETOWN, Barbados, CMC – Opposition Leader Owen Arthur Wednesday described the BDS$3.3 billion (US$ (US$1.65 billion) national budget as “an exercise of nothingness”, and accused the Barbados government of having no clear strategy for development.



“This budget was devoid of any serious framework concerning the growth and development of the Barbados economy as they now exists or as they are likely to evolve in the future.”



“This is a nothing budget and if I may use the words of Shakespeare put in the mouth of King Lear, nothing will come of nothing,” said Arthur, a former finance minister.



He told Parliament that the Freundel Stuart government’s lack of management of the economy should not be blamed solely on the current global economic and financial crisis.



“The difficulty this country is facing is not only because of the global economy but has been due to the irrational policies by the government of Barbados and have been due to inertia and malaise in critical ministries where there were opportunities that could have been grasped and were not grasped.”



Arthur insisted the economy has been under performing and Barbadians were reeling under the government’s stringent economic measures introduced in the 2010 budget which were not rolled back in a new fiscal package.



“Mr. Speaker our people are suffering they cannot make ends meet. Where there was once optimism there is now despair. Our standard resilient middle class is now becoming the working poor. The working class has now been reduced to a new poverty. They are confronted daily by measures that bite into their standards of living.



“It is not only at the level of the individual and the household, our enterprises of Barbados have lost significant income and wealth and are now operating under financial siege,” said Arthur, who led this country for more than two decades until he lost the 2008 general election.



Arthur called on the government to “come clean with the people” on the real state of the economy and to stop blaming the global recession.



He said that the government has not been painting an accurate picture of the situation or implementing policies to put the economy on a growth path.



Arthur said there is a clear need for changes to the government’s medium term fiscal strategy and he warned that the economic crisis cannot be solved by a “little tinkling of expenditure here and there.



“This fiscal crisis cannot be silenced by juggling expenditure and revenue but it is to be addressed by a common framework that allows fiscal issues, growth and development matters to be simultaneous and harmoniously addressed.



The Opposition Leader also severely criticised Finance Minister Chris Sinckler on his failure to address the issue surrounding the failed Colonial Life Insurance Company (CLICO) during his budget presentation on Tuesday.



Arthur said that “it is a very serious thing and a very serious defect” that the Finance Minister can make a presentation to Parliament and not comment on CLICO.



Arthur said it is even more troublesome given the fact various stakeholders, including the Prime Minister and the Central Bank Governor have all given commitments and “ where there is a possible BDS$300 million (US$150 million) that has to be addressed next year, and not a word has been spoken about the contingency arrangements the government is putting in place, to ensure that those persons who are potentially in peril can have the risk and uncertainties pertaining to their existence lifted”.



The debate on the budget is continuing.