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BALFORD HENRY, Observer writer balfordh@jamaicaobserver.com
Thursday, October 11, 2007
TUESDAY'S efforts by the government and the opposition to avoid a clash in Parliament between their finance spokesmen, has exposed their bipartisan co-operation in dealing with current economic issues.
The Observer understands that the government has been promoting a policy of co-operation with the Opposition to avoid confrontation over the economy and help restore confidence in the country's finances, especially in terms of raising external budget funding for this financial year.
The Ministry of Finance and Planning is also having discussions with international investors, sensitising them on policy directions and emphasis in seeking to raise funds in the market at more attractive rates and compatible with its debt objectives. Discussions are also to be pursued in meetings with investment bankers in Washington.
"There is some fragility out there in the perception of and confidence in the economy and, therefore, the government cannot afford to entertain a brawl between the minister of finance and the Opposition spokesman at this time," a highly-placed government source confirmed.
The effort, however, seemed to be unravelling on the weekend. Opposition spokesman on finance, Dr Omar Davies, obviously peeved by remarks made by government members about the $15.4 billion in extra-budget spending inherited by the Jamaica Labour Party, took his case to the media and threatened a firm response to finance and public service minister, Audley Shaw, in Parliament on Tuesday.
Davies seemed particularly hurt by a statement made by Minister of Industry, Commerce and Investment, Karl Samuda, in his capacity as JLP general secretary, at Sandals Grande Ocho Rios on Sunday. Samuda said that the new administration was shocked by the revelation of the deficit and promised that Shaw would deal with it in Parliament Tuesday.
Davies' response raised concerns in government circles that Shaw's efforts to woo stakeholders in the capital market, including briefing them two days before the successful launch of a reopened US$350-million bond issue aimed at completing the government's external financing for 2007/2008, could be undone by a brawl in Parliament between the two
finance spokesmen.
But, Prime Minister Bruce Golding was proactive in intervening leading to a revision of Shaw's statement, by cutting the references to the role of the previous government in the $15.4- billion deficit to appease Davies.
As Golding explained in Parliament Tuesday, "The first draft that was delivered for the minister's statement was not what he delivered. He and I had discussions and we both agreed that we were going to make the issue as non-contentious as possible. Therefore, in his statement, he sought to attribute no blame, he ascribed no motive."
"I should indicate that I was really prepared to answer the charges from the first time that they were uttered, but will refrain from so doing," Dr Davies told the House.
"I was aware of the imminent return to the bond market and realised that any controversy on the eve of the reopening could have had a negative impact on the bond issue," Davies explained.
The former minister was referring to the Ministry of Finance and the Public Service's reopening of the bond issue, which has been more than three times over-subscribed, successfully completing the government's external financing for 2007/2008.
The success has been a tremendous boost for the government, and the country's best economic news since the new administration took office last month.
Dr Davies commended both the Ministry of Finance and the Bank of Jamaica on the successful launch. He also commended Shaw, personally, for showing what he saw as the proper approach to the matter of the deficit which was the basis of Shaw's statement to the House on Tuesday.
http://www.jamaicaobserver.com/news/..._OPERATION.asp
Thursday, October 11, 2007
TUESDAY'S efforts by the government and the opposition to avoid a clash in Parliament between their finance spokesmen, has exposed their bipartisan co-operation in dealing with current economic issues.
The Observer understands that the government has been promoting a policy of co-operation with the Opposition to avoid confrontation over the economy and help restore confidence in the country's finances, especially in terms of raising external budget funding for this financial year.
The Ministry of Finance and Planning is also having discussions with international investors, sensitising them on policy directions and emphasis in seeking to raise funds in the market at more attractive rates and compatible with its debt objectives. Discussions are also to be pursued in meetings with investment bankers in Washington.
"There is some fragility out there in the perception of and confidence in the economy and, therefore, the government cannot afford to entertain a brawl between the minister of finance and the Opposition spokesman at this time," a highly-placed government source confirmed.
The effort, however, seemed to be unravelling on the weekend. Opposition spokesman on finance, Dr Omar Davies, obviously peeved by remarks made by government members about the $15.4 billion in extra-budget spending inherited by the Jamaica Labour Party, took his case to the media and threatened a firm response to finance and public service minister, Audley Shaw, in Parliament on Tuesday.
Davies seemed particularly hurt by a statement made by Minister of Industry, Commerce and Investment, Karl Samuda, in his capacity as JLP general secretary, at Sandals Grande Ocho Rios on Sunday. Samuda said that the new administration was shocked by the revelation of the deficit and promised that Shaw would deal with it in Parliament Tuesday.
Davies' response raised concerns in government circles that Shaw's efforts to woo stakeholders in the capital market, including briefing them two days before the successful launch of a reopened US$350-million bond issue aimed at completing the government's external financing for 2007/2008, could be undone by a brawl in Parliament between the two
finance spokesmen.
But, Prime Minister Bruce Golding was proactive in intervening leading to a revision of Shaw's statement, by cutting the references to the role of the previous government in the $15.4- billion deficit to appease Davies.
As Golding explained in Parliament Tuesday, "The first draft that was delivered for the minister's statement was not what he delivered. He and I had discussions and we both agreed that we were going to make the issue as non-contentious as possible. Therefore, in his statement, he sought to attribute no blame, he ascribed no motive."
"I should indicate that I was really prepared to answer the charges from the first time that they were uttered, but will refrain from so doing," Dr Davies told the House.
"I was aware of the imminent return to the bond market and realised that any controversy on the eve of the reopening could have had a negative impact on the bond issue," Davies explained.
The former minister was referring to the Ministry of Finance and the Public Service's reopening of the bond issue, which has been more than three times over-subscribed, successfully completing the government's external financing for 2007/2008.
The success has been a tremendous boost for the government, and the country's best economic news since the new administration took office last month.
Dr Davies commended both the Ministry of Finance and the Bank of Jamaica on the successful launch. He also commended Shaw, personally, for showing what he saw as the proper approach to the matter of the deficit which was the basis of Shaw's statement to the House on Tuesday.
http://www.jamaicaobserver.com/news/..._OPERATION.asp
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