PM: GET ON BOARD!

PRIME Minister Freundel Stuart yesterday threw out a hand to the local private sector to assist Government in its drive towards economic stimulation.

In particular he wants the private sector to lead the way in growing Barbados’ exports to the tune of one billion dollars, so as to earn more foreign exchange for the country.

“I should like to call on the private sector to lead the effort to seriously grow our production export base to levels that would lead to 100 per cent increase in exports of goods and services,” he said, while noting that since Barbados is importing more than it exports that is putting pressure on the foreign reserves.

Addressing the January luncheon of the Barbados Chamber of Commerce and Industry at the Hilton, the Prime Minister, in an almost hour-long presentation, outlined what he called a road-map to respond to the challenges confronting the Barbados economy.

Stuart said that the road-map, which forms part of the Barbados Sustainable Recovery Plan, will be put in place this year. It provides a framework for returning the economy by 2021 to a path of steady state equilibrium, and an average three per cent economic growth. In addition, it allows for an increase in employment while maintaining the existing fixed exchange rate, the earning of foreign exchange, and returning the country to investment grade.

Furthermore, the Prime Minister said, the plan calls for fiscal sustainability through a balanced budget by 2021, and a sustainable debt management plan.

“I am convinced that these targets can be achieved,” Stuart said.

However, he noted that there is a role for the private sector which Government sees as the engine of economic growth.

As such Government is laying an enabling environment conducive for private sector activity.

He pointed to billions of dollars in private investment projects, and said too that the government had been playing its role in bringing the fiscal deficit under control through its fiscal consolidation measures, as well as undertaking capital works programmes.

Stuart acknowledged that there were some setbacks in achieving this goal, one of them being the failure to sell the Barbados National Terminal Company Limited.

However, he told the private sector officials that Government anticipates that the deficit will be lowered from the 6.8 per cent of GDP last March to at least three percentage points lower this year.

He also revealed the Cabinet has approved the Barbados Sustainable Recovery Plan.

“The urgency with which this plan was approved by Cabinet, a mere four months after the Social Partnership meeting, is testimony to the importance and priority which we attach to this plan,” the Prime Minister said while also complimenting those who worked on formulating the document. (JB)