Government’s decision to appoint temporary public officers across the board in the coming months, would likely serve as a substantial activity generator within the Barbados economy, says Minister in the Ministry of Finance Ryan Straughn.
Yesterday Straughn told Barbados TODAY that given the large number of workers who will finally get security of tenure, some after being temporary for well over a decade, he anticipates an upsurge in the number of persons accessing loans. He also predicted that there would be an increased appetite for investment.
“Obviously for the public servants who receive those letters of appointment, they along with their financial institutions, would be in a position to have greater certainty in terms of loans, mortgages or other projects, which would help to build out the economy. With that said, the financial institutions would still have to assess on a case-by-case basis, which would factor how much persons are making and their debt-profile at the moment,” said Straughn.
He further explained, ”This, from an administrative perspective should provide a greater level of stability for those public officers and it should give greater certainty with respect to persons to be able to access financing and this would obviously mean that whatever economic activity that persons may wish to pursue, could only be an added boost with respect to the economy.”
Earlier this week, president of the National Union of Public Workers (NUPW) Akanni McDowall revealed that Prime Minister Mia Mottley, during a meeting of the Social Partnership this week, announced that she would be appointing all temporary public officers with three years or more of unbroken service. As a condition, those to be appointed must not have had any adverse reports against them.
McDowall upon breaking the news said he was over the moon at the decision, as the union had been championing this cause for years.
“Some officers have been temporary for as long as 15 years and lacked security of tenure. Because of this, officers have not been able to improve their circumstances and have been unable, for example, to secure mortgages or plan their family life. The NUPW is satisfied with this long-awaited policy decision taken by the Government,” he said.
However, one economist, who spoke to Barbados TODAY on condition of anonymity, said while the appointments could be a good thing for spurring economic activity, he was concerned that this could potentially be problematic for the country’s current expenditue. The source contended that with more persons no longer getting acting allowances but would be now entitled the salaries associated with their role, there is likely to be a spike in the current account. It was further argued that this would not augur well for Government’s goal of a six per cent surplus.
“I really can’t say much until I see things actually beginning in terms of persons getting those appointments, but the current expenditure is something which Government has to certainly keep an eye on, especially since they have not sent home any additional persons. On the other hand, this could be good news for merchants and businesses if these appointments take place around Christmas time,” the source said.
colvillemounsey@barbadostoday.bb
