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EDITORIAL - A sobering report on the way ahead
published: Thursday | November 15, 2007
The Prime Minister, the Hon. Bruce Golding, gave his first major address to the nation since gaining power two months ago. It was a sobering report. While pointing to a number of initiatives which the new Government was undertaking, and to election promises which the government was attempting to fulfil, the message from the Prime Minister was clear - things will get worse before they get better.
This is an important message for the Government to get over to a population impatient for results. The impatience is understandable. As the Prime Minister himself pointed out, he, too, is impatient. With the destruction of our roads, the tight fiscal situation and the deteriorating global economy, especially the spiral in the oil price to US$100 per barrel, the economic situation for the average Jamaican is becoming more and more difficult.
In this context, it took real political courage for Mr. Golding to unequivocally affirm the Government's unshakeable commitment to fiscal discipline and macroeconomic stability. This is a welcome departure from the statements of others in the past, and should have a salutary effect on the Jamaican dollar and on the macroeconomic situation more generally.
At the same time, the Government itself will appreciate that Mr. Golding was strong on medium- and long-term needs, but not so clear on what it intends to do in the short term. In particular, the pressing questions of what we are going to do in this and the coming fiscal year about our $2 billion oil import bill, the rise in our food costs and the overall jump in the cost of living and the cost of doing business in Jamaica, remain unanswered. This is particularly urgent as all of these immediate price increases look set to continue and will put unprecedented pressure on wages in general and on the public sector wage bill in particular. The implications for inflation and interest rates and the plans of the Government to increase investment and employment are extremely serious.
It is imperative that the Prime Minister give early leadership in this area and develop an approach to these problems in the short term. We are completely opposed to any attempt to restore price controls of the old sort, but reports of the reintroduction of the 'marrying' of goods and of flour selling at 65 per cent above the former price cannot simply be ignored either. If the general public is being asked to show patience, then the same call must go out to wholesalers and retailers, large and small. Price increases which reflect real increases in costs are one thing, but rampant price-gouging is a different matter.
Mr. Golding gave an impressive perspective on the country's problems and on the general direction that he hopes to steer the ship of state. Now it is up to him to help us navigate the reefs and storms immediately before us. This will not be easy, but with broad public cooperation from all sectors of society, much can be achieved.
The opinions on this page, except for the above, do not necessarily reflect the views of The Gleaner. To respond to a Gleaner editorial, email us: editor@gleanerjm.com or fax: 922-6223. Responses should be no longer than 400 words. Not all responses will be published.
published: Thursday | November 15, 2007
The Prime Minister, the Hon. Bruce Golding, gave his first major address to the nation since gaining power two months ago. It was a sobering report. While pointing to a number of initiatives which the new Government was undertaking, and to election promises which the government was attempting to fulfil, the message from the Prime Minister was clear - things will get worse before they get better.
This is an important message for the Government to get over to a population impatient for results. The impatience is understandable. As the Prime Minister himself pointed out, he, too, is impatient. With the destruction of our roads, the tight fiscal situation and the deteriorating global economy, especially the spiral in the oil price to US$100 per barrel, the economic situation for the average Jamaican is becoming more and more difficult.
In this context, it took real political courage for Mr. Golding to unequivocally affirm the Government's unshakeable commitment to fiscal discipline and macroeconomic stability. This is a welcome departure from the statements of others in the past, and should have a salutary effect on the Jamaican dollar and on the macroeconomic situation more generally.
At the same time, the Government itself will appreciate that Mr. Golding was strong on medium- and long-term needs, but not so clear on what it intends to do in the short term. In particular, the pressing questions of what we are going to do in this and the coming fiscal year about our $2 billion oil import bill, the rise in our food costs and the overall jump in the cost of living and the cost of doing business in Jamaica, remain unanswered. This is particularly urgent as all of these immediate price increases look set to continue and will put unprecedented pressure on wages in general and on the public sector wage bill in particular. The implications for inflation and interest rates and the plans of the Government to increase investment and employment are extremely serious.
It is imperative that the Prime Minister give early leadership in this area and develop an approach to these problems in the short term. We are completely opposed to any attempt to restore price controls of the old sort, but reports of the reintroduction of the 'marrying' of goods and of flour selling at 65 per cent above the former price cannot simply be ignored either. If the general public is being asked to show patience, then the same call must go out to wholesalers and retailers, large and small. Price increases which reflect real increases in costs are one thing, but rampant price-gouging is a different matter.
Mr. Golding gave an impressive perspective on the country's problems and on the general direction that he hopes to steer the ship of state. Now it is up to him to help us navigate the reefs and storms immediately before us. This will not be easy, but with broad public cooperation from all sectors of society, much can be achieved.
The opinions on this page, except for the above, do not necessarily reflect the views of The Gleaner. To respond to a Gleaner editorial, email us: editor@gleanerjm.com or fax: 922-6223. Responses should be no longer than 400 words. Not all responses will be published.
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