Millions paid OUT

Mindful of the challenges that local businesses face with respect to the slow payment of statutory returns and trade payables, Finance and Economic Affairs Minister, Christopher Sinckler said Government is diligently working to pay out the money it owes.

 

In fact, Minister Sinckler said that between April 15 last year and March 31 this year, Government paid out over $202 million in refunds to Barbadians, of which he revealed some $82 million was in Value Added Tax returns, $72 million in Income Tax and $33 million in Corporation Tax. 

 

He was delivering the feature address at the official launch of Regus Business Centre, located at One Welches in St. Thomas – an international franchise which offers flexible office space to businesses in 107 countries.

 

“Needless to say, payments are continuing apace, at speeds as are necessary to effect liquidation of the booked liabilities and will be done of course as resources allow and cash flow improves. It is a similar case for Government’s trade payables which have also risen to uncomfortable levels as cash remain tight. And much as we have done with tax liability refunds, ministries and departments will continue to work with the Ministry of Finance and with those to whom arrears are owed, to systematically over time  work those done, even as we work to rein in our fiscal deficit through reform, restructuring and effecting greater value-for-money efficiencies,” he said.

 

With that in mind, thanking the various Government partners and stakeholders for their continued patience and support as efforts are made to resolve those challenges, he took the opportunity to call on the private sector to also meet their commitments to Government and pay what they owe.

 

“I say that in all seriousness because the system is interlocked. If one part does not function well enough then the other part is hobbled and then we keep shouting at each other. The private sector is owed and they shout, and then the Government is owed and they shout through whatever channels they can, Parliament more likely than not. In the system nothing resolved, everybody is angry and the system just doesn’t work. We have to find ways of unlocking some of the things that we do,” Sinckler stated.

 

Global appeal

Turning his attention to the opening of Regus Business Centre, the first of its kind in the Caribbean, Sinckler maintained that Regus’ selection of Barbados as its first location in this region is a true testament to the appeal of Barbados to global brands and global businesses.

 

“Government considers that the opening of this global business centre as an avenue to provide numerous benefits to businesses of all types and scales. The benefits for micro, small and medium sized enterprises locating here in the Centre, with the services being offered will include - a diversity in the range of businesses working right next to each other; collaborative working areas for clients and customers; networking events; an environment of innovation and incubation; and affordability and flexibility,” he added.

 

His comments came as he noted that small and medium enterprises form the bulk of the country’s private investors and play an important role in generating employment and enhancing economic development.

 

As such, he suggested that the Regus Business Centre complements the Government’s national strategic thrust to sustain economic growth and promote the private sector as the leading engine of growth and economic development. Moreover, he said the launch of Regus comes as Government is also about to finalise and take to Parliament the national strategic vision and plan for the development of small and medium sized businesses – a plan, which he said, is the most far reaching and innovative road map for the development and sustainability of that sector in over 30 years. (JRT)