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$2.4b Constituency Development Fund could be casualty of agreement
BY PATRICK FOSTER, Observer writer fosterp@jamaicaobserver.com
Thursday, July 30, 2009
ONE of the first casualties of Jamaica's impending pact with the International Monetary Fund (IMF) could be the $2.4 billion MPs draw on for critical constituency development projects.
Prime Minister Bruce Golding yesterday refused to rule out a gutting of the Constituency Development Fund (CDF) which gives each of the 60 MPs $40 million a year to spend on a variety of projects.
"We are going to protect health, education and security, and the social safety net; as to what will happen to the CDF, which falls among the rest, I can't say at this time," Golding told journalists at the post-Cabinet press briefing at Jamaica House. "I know what it (the CDF) has done but I can't give a commitment," the prime minister added.
But Golding assured that public sector jobs would not be slashed, even though a job freeze would remain in place for the next three years, as part of the administration's plan in exchange for the IMF's vaunted Stand-by Arrangement.
Golding's commitment that the administration would protect health, education and the security and social safety net, was an indication that the abolition of user fees in hospitals and clinics, the abolition of tuition fees in public schools and the PATH programme for the needy would escape the IMF conditionality knife.
"I have named the priorities, everything else will have to help us to bear some of the burden," Golding said about areas of Government spending that will be reduced or eliminated as the administration seeks to achieve its fiscal target.
The prime minister made it clear that Government's expenditure must be cut, but insisted that the IMF was not dictating where the cuts should come from.
"Our assertion that the IMF is far less strident is something that I maintain," Golding said. "They are no longer as inflexible as they used to be," he added, saying that the Fund has tailored assistance depending on the specific needs of a country.
In the meantime, Golding told journalists that technical discussions regarding the IMF assistance were 90 per cent complete and a final decision would be made by mid-August.
"Talks have gone well, we have laid before the IMF information regarding the challenges we face," Golding said. But he said it was not a "done deal" and that technical details would be sorted out by the end of the first week of August.
The prime minister said the Opposition and other critical stakeholders would be apprised of the developments before the agreement was brought to Parliament and signed off.
"We want to take that decision based on consultation," he said.
Jamaica, said the prime minister, had about 10.8 per cent of gross domestic product (GDP) in relation to public sector wages, while the international norm was approximately 9.6 per cent.
The one per cent differential, Golding contended, would be addressed over a three-year period by freezing public sector wages and curtailing employment.
"There will be no additional employment within the public sector over the three years," Golding said, adding that holding wages over the period should "help us to get back in line".
http://www.jamaicaobserver.com/news/..._CUTS_MPS_.asp
BY PATRICK FOSTER, Observer writer fosterp@jamaicaobserver.com
Thursday, July 30, 2009
ONE of the first casualties of Jamaica's impending pact with the International Monetary Fund (IMF) could be the $2.4 billion MPs draw on for critical constituency development projects.
Prime Minister Bruce Golding yesterday refused to rule out a gutting of the Constituency Development Fund (CDF) which gives each of the 60 MPs $40 million a year to spend on a variety of projects.
"We are going to protect health, education and security, and the social safety net; as to what will happen to the CDF, which falls among the rest, I can't say at this time," Golding told journalists at the post-Cabinet press briefing at Jamaica House. "I know what it (the CDF) has done but I can't give a commitment," the prime minister added.
But Golding assured that public sector jobs would not be slashed, even though a job freeze would remain in place for the next three years, as part of the administration's plan in exchange for the IMF's vaunted Stand-by Arrangement.
Golding's commitment that the administration would protect health, education and the security and social safety net, was an indication that the abolition of user fees in hospitals and clinics, the abolition of tuition fees in public schools and the PATH programme for the needy would escape the IMF conditionality knife.
"I have named the priorities, everything else will have to help us to bear some of the burden," Golding said about areas of Government spending that will be reduced or eliminated as the administration seeks to achieve its fiscal target.
The prime minister made it clear that Government's expenditure must be cut, but insisted that the IMF was not dictating where the cuts should come from.
"Our assertion that the IMF is far less strident is something that I maintain," Golding said. "They are no longer as inflexible as they used to be," he added, saying that the Fund has tailored assistance depending on the specific needs of a country.
In the meantime, Golding told journalists that technical discussions regarding the IMF assistance were 90 per cent complete and a final decision would be made by mid-August.
"Talks have gone well, we have laid before the IMF information regarding the challenges we face," Golding said. But he said it was not a "done deal" and that technical details would be sorted out by the end of the first week of August.
The prime minister said the Opposition and other critical stakeholders would be apprised of the developments before the agreement was brought to Parliament and signed off.
"We want to take that decision based on consultation," he said.
Jamaica, said the prime minister, had about 10.8 per cent of gross domestic product (GDP) in relation to public sector wages, while the international norm was approximately 9.6 per cent.
The one per cent differential, Golding contended, would be addressed over a three-year period by freezing public sector wages and curtailing employment.
"There will be no additional employment within the public sector over the three years," Golding said, adding that holding wages over the period should "help us to get back in line".
http://www.jamaicaobserver.com/news/..._CUTS_MPS_.asp
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