PdP concerned about money being taken from Catastrophe Fund

With an active 2020 hurricane season in the forecast, Opposition Leader Bishop Joseph Atherley and his team are concerned that money is being taken from the Catastrophe Fund to help the COVID-19 fight.

On Thursday, Prime Minister Mia Mottley announced that companies registered to pay Value Added Tax (VAT) but can prove that their cash flow was severely disrupted by the COVID-19 pandemic and have implemented measures to contain the outbreak, are being given a lifeline in the form of a new $40 million VAT Loan Fund.

The Prime Minister said the Fund would be capitalized by taking the money in the Catastrophe Fund, which has accumulated over the years, and re-purposing it to avoid insolvency and bankruptcy and further unemployment.

However, Atherley said he was concerned about the proposal since, after all, VAT collections represent government revenue, which would simply have been collected by the businesses.

The Leader of the Opposition contended that the Catastrophe Fund should be left alone in case the island is affected by a natural disaster.

“It is a further and very strong concern of the Opposition that this fund is to be supported by a raid on the existing Catastrophe Fund. This is especially so at the start of the hurricane season. The last administration was chided for similar action.

“I really don’t feel comfortable with the fact that the Government will make recourse to the Catastrophe Fund on the eve of the hurricane season, notwithstanding the stress caused by the COVID. I am saying that I am not comfortable with the use of the Catastrophe Fund even in the face of the current situation,” he said during a press conference on Saturday.

Admitting that though he considers the COVID-19 pandemic and the impact it has been having on the economy and social landscape a catastrophe, Atherly noted that he believes there are Barbadians who are also worried about the way in which the Catastophe Fund would be used.

Also speaking at the press conference, Opposition spokesperson on the economy Senator Crystal Drakes urged Government to be mindful of where it is spending expenditure at this time.

Drakes suggested that given the fact the hurricane season is approaching, it would be wise for Government to roll out a programme to upgrade the country’s housing stock.

“That would be fortifying your housing stock in the event that there is a hurricane rather than you putting it into other places that you are just not going to see the returns on investment in the immediate future.

“These are the types of things that we are saying we are not seeing from government in terms of being creative and building resilience at the same time, rather than doing traditional things like building roads and refurbishing markets. Right now there is a lot of our housing stock that is below the status that they need to withstand let’s say for instance a strong category two hurricane,” he said. (AH)