Opposition Leader claims economy in trouble

Opposition Leader Bishop  Joseph Atherley is extremely concerned about the current state of Barbados’ economic affairs, declaring that the country has “a billion-dollar problem which requires a billion-dollar solution”.

Speaking at a press conference Monday at his Worthing Centre, Christ Church office, he said his People’s Party for Democracy and Development (PdP) believes the economy “is in trouble”.

“I think everything the Central Bank Governor [Cleviston Haynes] said indicates that. We are concerned that we are not being given proper figures with respect to the unemployment rate in Barbados. We are told about the number of people who have to rely on NIS [National Insurance] in the current circumstances. We are told that 30, 35, 40, 45 thousand people are on NIS. We are not being made aware as to the total unemployment rate in Barbados,” he told the media.

According to a document provided by the Opposition, nominal Gross Domestic Product (GDP) had fallen by more than $1 billion, when September 2020 ($6.6 billion) was compared with September 2019 ($7.7 billion). It said that to put that in per capita terms, each person in Barbados lost approximately $4 000 when comparing the GDP of each period.

Atherley said what compounded the issue was that funds meant to help businesses have not met that objective.

“We are concerned that the funding allocated to various groups of people and businesses, much of that funding is not reaching the intended targets expeditiously, if at all. We have heard criticism from the very bosom of Government. The head of the Small Business Association Senator Lynette Holder has complained about this on about two occasions now,” the Opposition Leader charged.

“You can set up funds, you can announce big plans to get finances to people, but if the mechanisms in place for getting those finances filtered through to those people, if those mechanisms aren’t functioning expeditiously, then we are back to square one. Businesses are still suffering and people are still suffering.”

The Opposition Leader reported that the tourism sector has lost 66 per cent of its earnings. In September 2019, the sector contributed $1.04 billion to the economy. However, this year’s contribution fell to just $346 million.

He said the PdP is also concerned about the performance of the Barbados Economic and Sustainable Transformation (BEST) programme and the buy-in from the hotel and tourism sector.

The BEST programme, designed to provide assistance to the sector, has two components – financial support from Government in the form of a “loan” for upgrades and refurbishment, and a grant to pay possibly 80 per cent of the salary of workers.

Atherley said while he understands the need to get buoyancy back to the tourism and hotel sector, that cannot be the sole focus.

“The UK lockdown does not portend well for the winter season and that is why we are concerned. Government believes that the solutions to our problems solely lie with the hotel and tourism sector. We have been saying for a long time that we need to chart a course and not rely so heavily on tourism,” he contended.

“This new [COVID-19] wave that is sweeping Europe and North America portends ill for us. We need to generate some other local economic activity. The capital projects driven by the state itself, that is going to be helpful getting employment, but how far will that go? Those projects touted as private sector investment aren’t going anywhere. The limited capital works will help, but just a small bit.”

The Opposition Leader said he was glad the Government finally realised that lowering the primary balance from six per cent to one per cent under the Extended Fund Facility arrangement with the International Monetary Fund, is not sufficient.

“They are actually advocating for what we were advocating for – a negative one per cent. That is what we were advocating for in the first place. The PdP has shown the people of Barbados that there is some merit in what we say and that the people on this side who speak, speak from a position of knowledge and research,” Atherley said.