Perspective: Mark Golding Was Statesmanlike

May 14, 2020 | By Hopeton O’Connor-Dennie |

With JA120 billion Fallout in our economy

“In the cut and trust of politics … it is our constitutional role to oppose where necessary. It is a great shock .. we support the setting back of the debt to GDP of 60 percent to 2025. The people want to see its leaders working together ” stated Mark Golding, Opposition spokesman on Finance responding to the disclosure that JA$120 billion fallout in Jamaica’s economy.

Responsible

The utterances of MP Mark Golding in Parliament by supporting the government in this C19 crisis is very responsible conduct by the Opposition. They must be commended. This is rare as politics is usually a dog eat dog affair.

It is no secret that COVID 19 has hit most economies like a ton of bricks. Jamaica is no exception.

Debt Crisis

When the Andrew Holness administration took office in 2016 it took the baton from the People’s National Party (PNP), led by Portia Simpson Miller as PM. The JLP continued the harsh policies of the IMF and enjoyed success. So with belt tightening and prudent financial management reserves have been built up. Tax collection was improved and expenditures closely monitored. So we now have a surplus in the form of cash reserves of JA$70 billion

Gains Wiped Out

COVID 19 has wiped away the gains Jamaica has made over the past 4+ years. Jamaica has been put up as the international poster folks by the International Monetary Fund (IMF).

Cash Reserves

The finance Minister indicated that the JA70 billion accumulated from two IPOs namely Whigton Farms and Trans-Jamaican shares income, over performance of tax collection and funds from State Entities which should be used to pay down the debt will now be used to help to fill the hole left in our budget due to expenses incurred and also shortfall in projected income as a result of COVID 19.

Perspective

It is my perspective that the use of this cash reserves to fill the hole left by shortfall in income is ill advised. We should stay the course. We need to unshackle ourselves from this long term debt. The oppressive debt is like being in slavery as the interest and debt paynents are depriving Jamaicans of a better life.

Pay Down The Debt

The main objective of accumulating these reserves is to be used to save interest on long term debt and pay down the debt. The use of these cash reserves should be to pay down the debt. We should have accessed the emergency funding window made available to countries in need including Jamaica by the IMF. The Finance Minister Dr. Nigel Clarke should have stayed the course. COVID 19 too will past, but that debt is weighing us down.

Jamaica has had its economy seriously shrink due to CORVID 19 and cash reserves being used up to meet domestic expenses like a “We Care” government programme to assist citizens in the form a cash payout due to unemployment, underemployment or to help the most vulnerable like the elderly and disabled.

JA$120 Billion Fallout …

We hope that we will open up the economy quickly safely and be conscious of the negative impact of doing nothing or moving too slowly. We see a JA$120 billion fallout due to COVID 19 to date. We cannot afford any further slide as all the gains made over the past 4 years or so is being evaporated in a few weeks. Amazing!

Hopeton O’Connor-Dennie is Senior National & International Correspondent for Vision Newspaper Canada.