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From Left: Barbados Labour Party (BLP) St. Michael South Central, Marsha Caddle and party colleague, Dr. William Duguid at the press conference held at the Opposition’s Office, West Wing of Parliament on Thursday. 

BLP candidate questions reports of economic recovery

 

Barbadians are being asked to be more critical of data which is in support of the economic recovery reported recently.  
 
The call is coming from Barbados Labour Party’s (BLP’s)  St. Michael South Central candidate, Ms. Marsha Caddle, who was speaking during a recent press conference in the Opposition’s West Wing of Parliament.  
 
Her statement was in response to the comments on the economy made by the Honourable Prime Minister Freundel Stuart, at the recently held Barbados Chamber of Commerce and Industry Business Luncheon.
 
During the press conference she highlighted three key points: the fact that presently the stock of foreign reserves is at a 14-year low of $681 million, or only 10.3 weeks of imports as at December 2016; the high public debt; and Government’s now chronic deficit and the sustained pressure on the Central Bank to finance Government spending.
 
“The suggestion by the Prime Minister in his remarks to the Chamber of Commerce Luncheon that the Barbados economy is somehow, nonetheless, in recovery, is alarming,” said Ms. Caddle. 
 
Government Disconnected
The representative for St. Michael South Central said that the Prime Minister and his Government are disconnected as they are unable to see the impact of the “fractured economic environment” on Barbadians.
 
Ms. Caddle argued that although it has been reported that there is 1.3% decline in unemployment and 1.6% growth rate, this is not indicative of economic recovery. She emphasised that even though there was “an average increase in the number of employed persons over last year, wages remain low, so that personal income is also low”. 
 
“The point of employment is to generate income for households. So that if this alleged rise in employment does not accompany a rise in income and purchasing power, it does not matter. The fact that falling, near-zero interest rates on savings have not generated any increase in consumer spending or investment bears this out. In fact, while Barbadians see low to zero returns on savings, we are not seeing what should be the flip side of this dynamic: favourable interest rates for loans and increased uptake of credit by consumers and businesses,” said Ms. Caddle. 
 
“A Perfect Storm”
With low foreign reserves and access to foreign currency affecting the capacity of businesses to conduct their regular business activity and in turn their capacity to contribute to growth, Ms. Caddle explained that this is a critical concern. She said the anticipated increase of $250 million to the stock of foreign reserves is insufficient to give any long-term relief or improved outlook.  Other problems such as high deficit faced by Central Bank and Government’s use of National Insurance Scheme, questions the security of Barbadians who support and rely on the scheme.
 
“There are liquidity limits, there are asset concentration limits. The NIS is not a bottomless bailout and slush fund for a Government that cannot manage its affairs,” she asserted.
 
Underperforming Business Sector 
Building her case for slow economic growth, she mentioned the fact that both international business and financial services sectors “continue to underperform, with the number of international business companies having declined by 5% according to this last CBB report”.  She ended her press statement by stating that the Prime Minister’s remarks at the BCCI luncheon  seem to suggest that Barbados has no control over our economic destiny.  
 
“A government that cannot successfully implement a single adjustment programme, out of six attempts, must take some responsibility for its own economic mismanagement, rather than suggest that we exist solely at the mercy of external circumstances,” said Ms. Caddle.
 
 
Productivity and Economic Recovery
On the topic of productivity, Ms. Caddle explained that “productive employees are appropriately engaged and informed by Government through their unions and employee associations, who receive the necessary information to properly represent workers’ concerns and welfare”. She added that workers’ productivity will rely on productivity of technology and infrastructure.
 
“A worker who cannot count on adequate water supply in the morning and evening, reliable public transport, a safe road network or appropriate health and sanitation conditions at home or in the workplace will not be at his/her most productive," she noted.
 
 
 

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