One economist has given the Mia Mottley administration top marks for its handling of the economy since taking office in 2018, saying it deserves a second term in office.
Economic advisor to the Minister of Finance, Economic Affairs and Investment, Clyde Mascoll presented this assessment at the Barbados Labour Party’s (BLP) mega meeting at the Emerald City car park in Six Roads, St Philip on Thursday night.
He pointed to a number of initiatives undertaken by the Mottley-led government since taking office in 2018, including increasing the reverse tax credit, the introduction of a compensatory income credit, and a reduction of the corporate tax from 25 per cent to five per cent.
“I do not understand why an administration that has performed the way this administration has performed would even pretend to be defensive,” he said. “In this thing called politics, you are judged by what you do. And if you have done well, you come and you report to the people of Barbados what you have done. You are not boasting, you’re simply saying I found this situation difficult, I have done X, Y and Z.
“So there’s no doubt in my mind because prior to COVID the economy was starting to pick up, tourism was returning, and then COVID came along. But what is fascinating is how remarkably the Prime Minister and her Cabinet responded to the challenge…. I cannot see how a government could have performed so outstandingly well and in the most difficult times would have to even think about getting a second term. The question is how large will the opposition be,” Mascoll told BLP supporters.
He also noted the economic benefits to be gained from investments in renewable energy.
“For the first time in our history, we now have a resource that all can enjoy. You do not any longer have to have a big income in order to get the benefit from putting photovoltaic panels on your roof. And that is what is going to drive part of the process of growth in this country, because we can now give the Transport Board access to panels in order to generate electricity, in order to have a revenue stream that therefore takes pressure off of the government to find financing to give them,” Mascoll said, adding that the Barbados Water Authority and the Sanitation Service Authority will also reap similar benefits.
There has also been improvement in the agriculture sector, the economist reported, pointing to the sugar industry.
“[Agriculture Minister] Indar Weir introduced a climate mitigation subsidy for the payment of sugar cane in such a way that this year we paid $186 for a tonne of cane. In 2015-16, under [David] Estwick, we paid $215 per tonne of cane – $31 more five years ago than we did this year. So what has happened? Indar Weir and his leadership have now given the industry an opportunity not only to survive but to thrive.
“It is important because food security requires the sugar industry. Because non-sugar agriculture has to have sugar in order to be able to get us where we want to go in the provision and production of food,” he said.
Mascoll told the audience the government has also embarked on several other initiatives to encourage growth, including the establishment of a trust fund to assist individuals who were not bankable and therefore not eligible to borrow money.
“We have been able now to lend over 4,000 such people loans in order to be able to get involved in small business. They could never have gone to a commercial bank.
“We’re also improving our business facilitation at the Town and Country Planning and CAIPO [Corporate Affairs and Intellectual Property Office], where we’re improving how things are done in order to improve the quality of service such that we can improve our business acumen in this country and also deliver business services to encourage people to come to Barbados and invest….
We’re also encouraging our people to get involved in investment because there’s a difference between making a profit and becoming wealthy,” he pointed out, adding that investing will help Barbadians build generational wealth.
Mascoll said the BLP has demonstrated its competence in the last three and a half years.
“There is no need now to give anybody (else) any chance, this is not a little bicycle that you’re giving to a fella in the village to teach him to ride; you cannot take that chance with an economy and a society,” he said.
(BT)
