Scheme illegal, claims Opposition

A farcical BOSS plan!

That’s how the People’s Party for Democracy and Development (PdP) has described Government’s proposed Barbados Optional Savings Scheme (BOSS) and has called for the resignation of those who formulated the programme.

In fact, one spokesman for the Joseph Atherley-led party say the move by the Government to convert a percentage of some public servants’ salary to bonds is not legal.

Last night, Prime Minister Mia Mottley and Senior Economic Advisor Dr Kevin Greenidge explained the details of the initiative which is expected to raise $100 million for capital spending.

It gives public servants the option of investing a portion of their salaries in Government bonds.

Those bonds are for four years and interest will be paid at five per cent per annum.

However, during a Zoom press conference this afternoon, PdP spokesperson on Tourism and the Economy Scott Weatherhead and Opposition Senator Caswell Franklyn ripped apart the proposal saying that BOSS would make the rich richer and the poor poorer. Weatherhead also slammed Government’s $40 million VAT Loan Fund and the $200 million Tourism Facility.

He charged that only the “few rich business magnates” would benefit from BOSS.

“This farcical and deceitful proposal by Government presented to the social partners yesterday has gone through several name changes. First it was called a forced savings scheme, and then they called it a national meeting turn, because I suppose they thought that title would be more palatable, now they call it “the Barbados Optional Savings Scheme” and say it is voluntary.

“Under this scheme, whose name may yet change again, Government proposes taking $100 – $110 million per year away from a total of 14,437 workers, or 57 per cent of its workforce, money which these workers would have spent in the local economy,” Weatherhead claimed.

“This Government proposes to give this money to a select few rich business magnates and construction companies in the form of contracts to do capital works projects. The majority of that money will go directly to imports of concrete, steel, wood and building materials for those capital works projects.

“The next largest sum will go to profits into the pockets of the few already rich business magnates and construction companies. The smallest portion will go to wages for labour, and these projects will not employ the 41,836 people or one third of the entire workforce who lost their jobs as a result of COVID-19… It will only make the rich people in this country richer, and the poor and middle class poorer.

“This money will do nothing to drive economic growth in Barbados, and public workers should not accept this proposal.”

Referring to it as a “BOSS hog plan” Franklyn warned that it would be ill advised to “trust Government paper” considering what happened during the last restructuring exercise.

Furthermore, he argued that Government did not have the right to pay public servants with bonds as it was illegal to do so.

He said the law outlined that public servants must be paid in legal tender, which bonds were not.

Franklyn accused Government of forcing workers to take the bonds.

“You are forcing people to do something and saying they can volunteer. They are not volunteering because it is not optional and they cannot do that. You cannot require them to take their monies. It is criminal to do so and an employer who does that breaches the law and could face the courts for it,” he said.

“…You cannot cut their salaries and you must pay them in legal tender. The law says you must pay salaries in legal tender and legal tender is money, so you cannot give me a bond because a bond is not legal tender.

“This Boss Hog Plan is flawed in many respects. The Government is seeking to do what other persons would be jailed for.”

Franklyn said while road works would be done with the money garnered from BOSS, Government had already enforced a tax of 40 cents per litre on fuel to fix roads.

“They have money to fix the roads already. They want another set?” he questioned.
randybennett@barbadostoday.bb