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Open letter to Prime Minister Golding
B Gordon
Saturday, March 01, 2008
It has been almost six months since you became the nation's eighth prime minister. The job, as expected, has been quite challenging. Nevertheless, your enthusiasm has not waned. Walk good, my friend!
The numerous problems facing government and the country at times appear to muddy the water, so finding a positive direction becomes almost impossible.
In my opinion, John Donne (1572-1631) was correct when he clearly stated, "No man is an island." Mr Prime Minister, you need some serious help. You need help with new ideas; help with planning, help with implementation. So here is a little advice:
(1) Ask each minister in your Cabinet to give you an accurate list of issues within each Ministry before the budget is finalised.
(2) Compare this list to what you are already aware of, and move on.
(3) Compile and prioritise what projects can and will be addressed, financed and implemented over 90, 180 and 365 days respectively.
(4) Compile and prioritise what projects can be financed and implemented over the next one to five years.
(5) In 2007, Jamaica had an inflation rate of 16.8 per cent, the Statistical Institute (STATIN) said. To reduce this figure there has to be significant growth in the economy. Creation of jobs, increasing the exports, reducing the crime, and proper management of our limited resources will go a long way to attaining positive growth. Make your ministers accountable!
(6) Job creation comes with investment and skills training of our workforce.
(7) Investment comes with the reduction in crime, an adequate workforce readily available and in a locale where there are adequate roads, water, electrical power and telephone service.
(8) Our workforce is ready, willing and able when it has strong, disciplined leadership. The schools that produce the best students and the best results have strong, disciplined leadership. The best students have good role models.
(9) Our roads are in very bad condition, so I recommend that you float a bond, specifically to address the repair of the roads.
(10) On the subject of roads. The Palisadoes Road cannot be ignored while we wait for divestment of the Norman Manley International Airport. The current status warrants it to be one of the projects in your "A" list. Unfortunately, you may have to consider a toll for that area also. Funds generated could be allocated for the rehabilitation, maintenance as well as development of the area. Specifically a tourism project for Port Royal.
(11) Our population is estimated to be approximately 2.7 million. No significant new water storage facility has been constructed to address this growing population. The water and sanitation infrastructure is inadequate and inefficiently operated primarily by the NWC. This needs some serious attention. The investors will be reluctant if there is not adequate water supply.
(12) The Police High Command has indicated a willingness to enforce all the laws of the land. If they are able to enforce just the anti-litter law and the anti-dumping law,the fines collected will go a long way to cleaning and maintaining our little country. Send the police into the towns to arrest people who litter, fining them on the spot and taking them directly to court. If they cannot pay the fine, then make them clean the streets. One less person to pay for that job. Send the police to each construction site to verify where material is being dumped. Equip the police with scales to weigh the trucks transporting materials all over the island. If the weight limit was being adhered to, the roads would obviously last longer. When damage is done to public property in a motor vehicle accident, send a bill to the owner of the vehicle as well as the insurance company. That is how it is done in the First World!
13) Your reluctance to increase taxes is duly noted, so why not work with what you have? Is it gazetted that every working resident (excluding the diplomatic corps ) should file a tax return with the local authorities ? The tax department has indicated an intention to widen the tax net but year after year the department only pursues the same people , business owners and professionals. Why is it that the hairdressers, barbers, plumbers, masons, taxi operators, nurses, security personnel, etc, are not pursued and required to file a tax return? Let's face facts, they all live and work here in Jamaica.
14) Commercial vehicles are currently required to go to the transport inspection depot every six months. This is a waste of time! Why not make it once per year and collect the biannual fee x 2 at one visit? If the transport inspection depots are to be privatised, then get on with it!
15) Commercial vehicles are required to get a Transport Authority sticker once per year in March. You are given a receipt and your application is then processed which can take six to twelve weeks. If you are stopped by the police and present the receipt in lieu of the sticker, you are charged for not having same. Most people pay the fine as the time wasted to go to court is more valuable. My question is, why is it processed only in March? What is the purpose of this sticker if the vehicle is already inspected at the transport depot? The Transport Authority does not inspect the vehicle to process and deliver the relevant sticker.
(16) Last but not least, those annoying Alternative Investment Schemes (AIS). Fortunately or unfortunately, they are here to stay. Just like the cable companies of the late 80s and early 90s they were unregulated. Now that those cable companies are somewhat regulated, the government is at least able to collect some revenues in the form of GCT.
Maybe a GCT audit should be carried out on these cable companies to determine if the revenues are actually being paid. Jamaicans love to watch television! It is fair to assume certain things:
. Government does not want the public to be ripped off.
. Government would like this new area of investment regulated.
. Government would like some tax revenue from the AIS.
Well, Mr Prime Minister, it is a give and take. How much tax do you want? It is unreasonable to tax the gains, if there are any, at the same rate as one currently does for, say, certificates of deposit (25 per cent), because the risks are much higher. If the various AIS become registered with the correct authorities, and if they are formally regulated, I recommend you consider a five per cent tax on gains, with the option to review same in, say, 24 to 36 months. If the tax is considered too burdensome, then the majority of members will move their funds far from these shores. Trying to collect tax from gains already earned will be difficult, if not impossible.
Definitely a waste of time and resources, so don't even consider going there! Then there is the privacy matter. I wonder how many members from the government as well as the Opposition have deposits with AIS. I also wonder if these will ever be reported in the annual mandatory declaration of assets. I think as a show of honesty and integrity every member of government as well as the Opposition for the last seven years should be audited, and if found to be in breach should be punished accordingly. I always show my workers that I lead by example! I will not ask them to do what I will not be willing to do myself.
He who knows what to do and does not do it, may live to want to do it, thinking of when he should have done it!
B Gordon writes from Portland.
Copyright© 2000-2001 Jamaica Observer.
B Gordon
Saturday, March 01, 2008
It has been almost six months since you became the nation's eighth prime minister. The job, as expected, has been quite challenging. Nevertheless, your enthusiasm has not waned. Walk good, my friend!
The numerous problems facing government and the country at times appear to muddy the water, so finding a positive direction becomes almost impossible.
In my opinion, John Donne (1572-1631) was correct when he clearly stated, "No man is an island." Mr Prime Minister, you need some serious help. You need help with new ideas; help with planning, help with implementation. So here is a little advice:
(1) Ask each minister in your Cabinet to give you an accurate list of issues within each Ministry before the budget is finalised.
(2) Compare this list to what you are already aware of, and move on.
(3) Compile and prioritise what projects can and will be addressed, financed and implemented over 90, 180 and 365 days respectively.
(4) Compile and prioritise what projects can be financed and implemented over the next one to five years.
(5) In 2007, Jamaica had an inflation rate of 16.8 per cent, the Statistical Institute (STATIN) said. To reduce this figure there has to be significant growth in the economy. Creation of jobs, increasing the exports, reducing the crime, and proper management of our limited resources will go a long way to attaining positive growth. Make your ministers accountable!
(6) Job creation comes with investment and skills training of our workforce.
(7) Investment comes with the reduction in crime, an adequate workforce readily available and in a locale where there are adequate roads, water, electrical power and telephone service.
(8) Our workforce is ready, willing and able when it has strong, disciplined leadership. The schools that produce the best students and the best results have strong, disciplined leadership. The best students have good role models.
(9) Our roads are in very bad condition, so I recommend that you float a bond, specifically to address the repair of the roads.
(10) On the subject of roads. The Palisadoes Road cannot be ignored while we wait for divestment of the Norman Manley International Airport. The current status warrants it to be one of the projects in your "A" list. Unfortunately, you may have to consider a toll for that area also. Funds generated could be allocated for the rehabilitation, maintenance as well as development of the area. Specifically a tourism project for Port Royal.
(11) Our population is estimated to be approximately 2.7 million. No significant new water storage facility has been constructed to address this growing population. The water and sanitation infrastructure is inadequate and inefficiently operated primarily by the NWC. This needs some serious attention. The investors will be reluctant if there is not adequate water supply.
(12) The Police High Command has indicated a willingness to enforce all the laws of the land. If they are able to enforce just the anti-litter law and the anti-dumping law,the fines collected will go a long way to cleaning and maintaining our little country. Send the police into the towns to arrest people who litter, fining them on the spot and taking them directly to court. If they cannot pay the fine, then make them clean the streets. One less person to pay for that job. Send the police to each construction site to verify where material is being dumped. Equip the police with scales to weigh the trucks transporting materials all over the island. If the weight limit was being adhered to, the roads would obviously last longer. When damage is done to public property in a motor vehicle accident, send a bill to the owner of the vehicle as well as the insurance company. That is how it is done in the First World!
13) Your reluctance to increase taxes is duly noted, so why not work with what you have? Is it gazetted that every working resident (excluding the diplomatic corps ) should file a tax return with the local authorities ? The tax department has indicated an intention to widen the tax net but year after year the department only pursues the same people , business owners and professionals. Why is it that the hairdressers, barbers, plumbers, masons, taxi operators, nurses, security personnel, etc, are not pursued and required to file a tax return? Let's face facts, they all live and work here in Jamaica.
14) Commercial vehicles are currently required to go to the transport inspection depot every six months. This is a waste of time! Why not make it once per year and collect the biannual fee x 2 at one visit? If the transport inspection depots are to be privatised, then get on with it!
15) Commercial vehicles are required to get a Transport Authority sticker once per year in March. You are given a receipt and your application is then processed which can take six to twelve weeks. If you are stopped by the police and present the receipt in lieu of the sticker, you are charged for not having same. Most people pay the fine as the time wasted to go to court is more valuable. My question is, why is it processed only in March? What is the purpose of this sticker if the vehicle is already inspected at the transport depot? The Transport Authority does not inspect the vehicle to process and deliver the relevant sticker.
(16) Last but not least, those annoying Alternative Investment Schemes (AIS). Fortunately or unfortunately, they are here to stay. Just like the cable companies of the late 80s and early 90s they were unregulated. Now that those cable companies are somewhat regulated, the government is at least able to collect some revenues in the form of GCT.
Maybe a GCT audit should be carried out on these cable companies to determine if the revenues are actually being paid. Jamaicans love to watch television! It is fair to assume certain things:
. Government does not want the public to be ripped off.
. Government would like this new area of investment regulated.
. Government would like some tax revenue from the AIS.
Well, Mr Prime Minister, it is a give and take. How much tax do you want? It is unreasonable to tax the gains, if there are any, at the same rate as one currently does for, say, certificates of deposit (25 per cent), because the risks are much higher. If the various AIS become registered with the correct authorities, and if they are formally regulated, I recommend you consider a five per cent tax on gains, with the option to review same in, say, 24 to 36 months. If the tax is considered too burdensome, then the majority of members will move their funds far from these shores. Trying to collect tax from gains already earned will be difficult, if not impossible.
Definitely a waste of time and resources, so don't even consider going there! Then there is the privacy matter. I wonder how many members from the government as well as the Opposition have deposits with AIS. I also wonder if these will ever be reported in the annual mandatory declaration of assets. I think as a show of honesty and integrity every member of government as well as the Opposition for the last seven years should be audited, and if found to be in breach should be punished accordingly. I always show my workers that I lead by example! I will not ask them to do what I will not be willing to do myself.
He who knows what to do and does not do it, may live to want to do it, thinking of when he should have done it!
B Gordon writes from Portland.
Copyright© 2000-2001 Jamaica Observer.
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