Private sector concerned about slow pace of promised improvements

President of the Barbados Chamber of Commerce and Industry (BCCI) Anthony Branker has raised concern over several issues hindering private sector investment and ultimately delaying economic recovery.

He has appealed directly to Prime Minister Mia Mottley to step in and help provide some ease.

However, in a rebuttal, Mottley insisted that the private sector should take greater responsibility, saying that a change in attitude and mindset among business operators and the seeking out of new markets were needed to effect change.

Addressing the BCCI business forum and luncheon at the Lloyd Erskine Sandiford Centre on Wednesday under the theme Building Bridges for Successful Economic Recovery, Branker said “We are quite concerned at the slow progress in moving and improving our ease of doing business at the commercial level, with the only significant improvement to date being the implementation of the ASYCUDA World.

“Even then, with the implementation of that programme, other Government agencies are stalling the full benefits of ASYCUDA World due to their inefficient and bureaucratic processes,” said Branker.

He also raised concern about the “slow pace” of Government’s digital transformation, adding that the “extremely slow pace of the approval process for the implementation of photovoltaic projects is also quite concerning”.

“We have set aggressive targets in the alternative energy sector but the bureaucracy is stifling the efforts of the private sector to support you in achieving set objectives. There is a clear need to establish a unit to expedite and facilitate approvals for entities involved in the non-hospitality sectors,” said Branker.

“There are many businesses that continue to struggle with cash flow issues. To this end, we need your support in asking commercial banks to consider the restructuring of loans to take into account the reduced cash flows, and further, that your government legislate a fair possession act that protects the mortgage owners equity,” he added.

Pointing out that the duty-free sector was also severely impacted by the lack of tourists on the island, he pleaded with Mottley to allow duty-free sales for the upcoming Christmas period.

Additionally, the Chamber president raised concern about rising consumer prices, pointing out that while work had been done for a prices and incomes protocol, the business community was “anxious” for it to be concluded.

“The BCCI does not support price controls, but we fully support an approach where all parties involved in the importation process, contribute to the reduction of prices locally. To name a few, port charges, duties, mark ups at both retail and distribution and banking fees,” he said.

However, Mottley, who said she had two prepared speeches but opted not to use them, told the business community in her wide-ranging remarks that a lot of the changes needed depended on them.

She indicated that while several steps have already been taken to improve the doing business climate and facilitate investment in the renewable energy sector, it was an ongoing process.

“We have to adapt how we live and how we do business in this country . . . what we have first and foremost to accept as a nation and as a people is that we have the capacity to change our behaviour and to change our expectations with respect to what we can do. We no longer live in a world where you can take for granted that what you want will be available when you want it, how you want it, if you want it,” said Mottley.

Pointing out that the private sector has been traditionally protected in various ways, Mottley said “The one thing we know now is that nobody owes us a living and no one is going to give us anything. We need to earn our way through this world and we need to rethink our purpose and we need to rethink the urgency with which we act.”

She said in addition to a change in mindset and the need for the private sector to explore new markets, it was about time that the local private sector forms partnerships with others overseas to advance work in some areas including digitalization.

Mottley also expressed concern that there are too few “owners of capital” willing to participate in the private sector in formal ways. She added, “This country will only make it if everybody makes COVID recovery their business, and that means equally the owners of capital.

“Whether you like it or not, and it is in no way intended to be deprecating to those of you who are managers of their capital, but this country must also recognise that it is time that the owners of capital turn up to the table to help turn this country around. It is not simply what government can do for you for your own particular business but it is what we can do collectively to resolve the problems of this nation which are multiple in nature and complex,” she said.

Pointing to the reduction in Government revenue over the past year, Mottley suggested that a duty-free Christmas was unlikely, but indicated that her administration would soon be introducing legislation for a free zone.

Mottley also touched on the issue of food and nutrition security, stating that it was about time that the local private sector did business in other markets and export.

She said she would be having a meeting with the private sector and members of the labour movement on Friday, dedicated to understanding how we put ourselves ahead of the game with respect to food and nutrition security.
(MM)