BOSS to boost investment, says Adams

As the Senate took up the BOSS bonds-for-pay scheme, Government Senator Rawdon Adams has suggested it will kick-start much-needed investment in the Mottley administration’s capital programme and could trigger private sector investment.

The senator said a key part of the Barbados Optional Savings Scheme Bill 2020 is that it will boost investment in a smart way, at a time when billions of dollars’ worth in private projects remain in limbo.

But he contends that if the Government gets the ball rolling the private sector would follow suit.

He said: “There is about three billion dollars’ worth of private-sector capital projects in the pipeline and for the most part, those have slowed right down in terms of execution.

“A lot of that is due to the psychological impact of COVID-19. Most people have adopted a wait-and-see attitude you can see this amongst individuals, it is very clear to most people that they are not splashing out lashing out on a new flatscreen television. They are hunkering down. They are husbanding what they have to make sure that they can survive whatever is coming their way.”

Senator Adams suggested companies are being similarly cautious but declared it was time to return to economic activity – with the help of BOSS.

He said: “Businesses are doing the same whether those financiers are domestic or foreign. They also have a wait-and-see attitude. For us, the longer that continues the closer we will be to disaster. We have to break that cycle.

“It is said that a banker is a guy who gives you an umbrella when the sun is shining and takes it away when the rain falls. It is quite true. But look at it from their point of view, they are now pondering am I still going to get the same cash flow that I calculated initially.”

The senator said COVID-19 has brought about uncertain economic times and “guessing” was not the solution.

“In my experience, you can spend a great deal of time guessing what changes might come,” Senator Adams told fellow lawmakers. “You keep changing your strategy but in the end, you are just guessing at change. It is far better to look at those things that are going to remain the same, what is not going to change for us and for our investors.”