Not all waivers will go, says Hughes
Published:Thursday | August 5, 2010 | 12:00 AM
Financial Secretary Dr Wesley Hughes says charitable organisations might be spared the effects of a new government policy to freeze the granting of waivers on all imports.
At the same time, Hughes, who admitted Tuesday to not being fully au fait with the contents of Prime Minister Bruce Golding statement on the issue, said it was still possible that sector interests could continue to benefit from discretionary waivers.
"I would be surprised if all waivers go. There are some that are applicable on humanitarian grounds ... Someone getting some medicine or some medication or heath equipment or things like that. Those (waivers) would remain," Hughes told The Gleaner.
Golding said on Monday that "Cabinet took a decision that, as of August 1, there will be a freeze on all new waivers and incentives, pending the outcome of the study.
"The Government has undertaken, has given a commitment, to conduct a comprehensive review, a re-evaluation of all waivers and incentives, not just in agriculture, right throughout the economy," Golding said in his address on the final day of the Denbigh Agricultural and Industrial Trade Show in Clarendon.
"It is necessary for us to do it ... . We have some incentive programmes in place. We have a tradition of granting waivers for certain things when the circumstances that led to them being introduced in the first place no longer exist."
Hughes told The Gleaner that from Cabinet gave approval for "freezing or limiting of waivers specific reference was made to humanitarian concessions".
Golding's announcement, however, will not have an affect with regard to the imports in certain sectors as bauxite and tourism, for example, are guaranteed certain waivers by law.
The statistics
Data published by the Ministry of Finance and the Public Service show more than $916 million being granted as discretionary waivers by Finance Minister Audley Shaw.
Charitable organisations got $677 million in waivers while agriculture received $182 million in waivers. Most of the agriculture waivers related to the importation of red kidney beans and beef trimmings.
It was unclear up to yesterday evening the extent to which discretionary waivers would be affected by the policy, as Hughes believes the finance minister can still exercise those powers.
"I think that what was alluded to is 'no increase in the scope of waivers from now on'," Hughes said.
Discretionary wavers are normally driven by policy but Golding said this has been abused.
"We have incentives being provided in sectors and in segments of the economy where the purpose of incentives is to stimulate new investment, new production, new job creation. But they are getting incentives, but no new investment is taking place, again because of the assumption on which they were based long ago, or the circumstances have changed," said Golding.
Government has long signalled its intention to reduce the granting of waivers. The prime minister, in his contribution to the 2008-2009 Budget Debate, said "For every $100 of revenue we collect, $60 goes back out in tax relief, waivers and concessions.
"Discretionary waivers are a matter of great concern. They are granted primarily by the minister of finance and, to a lesser extent, the minister of agriculture. They come under a lot of pressure from waiver seekers. I don't like it one bit! They (the ministers) don't like it either," the prime minister had said.