House tax committee must sit now - Phillips

CHIDING Finance Minister Audley Shaw for presiding over what he called the abject mismanagement of the country's finances, the minister's opposition counterpart, Dr Peter Phillips, yesterday demanded a road map for economic growth be instituted by the Government.

Phillips, speaking during a press conference at the People's National Party's Old Hope Road headquarters in St Andrew, said tax and pension reform in the public sector are critical to such a growth formula.

"The minister should immediately convene a meeting of the committee on taxation for it to begin its deliberations on the tax-reform proposals," Phillips said.

"The country can no longer afford delays. Tax-reform proposals were announced six months ago. The committee was appointed a month ago. There is no reason for delay except mismanagement. These are weighty matters that require careful deliberations," he added.

Shaw is to lead the parliamentary committee which has been tasked to review and make recommendations on the Green Paper for tax reform that has been tabled in the House of Representatives.

Tax committee yet to sit

Parliamentarians have been on recess for nearly a month and the committee has not yet sat to examine the tax-reform proposals.

However, yesterday Shaw appealed to members of the public to make submissions to the committee, which is to examine the proposed tax-reform policy.

On the matter of pension reforms, Phillips said it was high time the proposals which Prime Minister Bruce Golding spoke about be referred to an appropriate committee of Parliament for consideration.

During the Budget Debate earlier this year, Golding noted that pension costs for public-sector workers have risen from $12 billion in 2007 to $22 billion this year. He also said a World Bank report has recommended the implementation of a contributory pension scheme in the public sector.

"Now that the study has been completed, we intend to finalise the proposals for reform and present a Green Paper that will be discussed with the stakeholders and tabled in Parliament later this year," Golding said.

"This matter has to be addressed urgently. The initial cost of reforming the system is likely to be significant with the benefits flowing in later years, but the longer we delay, the greater the crisis that the problem will become," he added.

Yesterday, Phillips argued that those areas of structural reform are critical to Jamaica's economic future. He said Jamaica is continuing to breach aspects of its agreement with the International Monetary Fund that would impede the country's ability to grow.

"There has been the continuing violation by the Government of its commitment under the Fund's programme to cease granting discretionary waivers on taxes. This is particularly significant as a violation given the shortfalls in budgeted revenue collection," Phillips said, in pointing to one example of a breach.

Persons wishing to participate should submit comments and suggestions to: The Chairman; Parliamentary Tax Committee; Houses of Parliament, Gordon House; 81 Duke Street, Kingston.