Barbados economy on growth path, says finance minister

BRIDGETOWN, Barbados (CMC) — The Barbados Government says the local economy is on a growth path once more and that the fiscal deficit is now on a “downward trajectory”.

Over the past months, the Freundel Stuart Government has implemented a number of stringent policies including laying off thousands of public servants in a bid to turn around the ailing economy.

Finance Minister Chris Sinckler told legislators that the island’s fiscal consolidation programme had been effective in restoring balance to the foreign exchange market and securing the value of the Barbados dollar.

“Our foreign exchange reserves have stabilised, our fiscal deficit is on a downward trajectory and the economic growth is returning. By any objective standard the programme is working.”

But he warned that “we now have to stay the course with the fiscal consolidation programme and do what is necessary to protect the gains we have made over the last 16 months”.

Sinckler said that based on information up to the end of last month, the expenditure targets set out in the fiscal consolidation programme had been achieved and that the Government was on track to record savings of BDS$68.5 million (BDS$1 = US$0.50 cents) from reductions in salaries and wages and BDS$229 million from reductions in transfers and subsidies.

“The expenditure reductions are now projected to generate total savings of BDS$290.8 million, or approximately 3.4 per cent of GDP (gross domestic prouct), over half of the proposed fiscal adjustment. The new revenue measures, (namely the) Consolidation Tax, Municipal Solid Waste Tax and Bank Assets Tax, are now projected to yield BDS$91.2 million or 1.07 per cent of GDP, and a special dividend from the sale of BNTCL another BDS$70 million or 0.82 per cent of GDP.

“Therefore, the fiscal adjustment measures currently in place are now projected to yield a reduction of BDS$452 million in the deficit or a reduction of 5.3 per cent of GDP,” Sinckler said, adding he was also confident that the targets set out by the Government would be met in 2014.

Sinckler added that Government had decided to delay the introduction of any major new tax reform measures until the budget presentation next year.

He said that while a tax study done by the International Monetary Fund (IMF) had provided a comprehensive basis for reviewing the island’s tax system, Government was not satisfied that the necessary impact analyses of any proposed adjustments to key growth sectors and vulnerable groups in society had been completed.

“The economy is showing its strongest signs of recovery since 2009, and we want to exercise an abundance of care in introducing new measures that may derail a return to sustainable growth.

“In light of this, and together with the discipline which we intend to place on supplementary budget allocations, we have determined that additional smaller expenditure cuts across the board, and more efficient targeted collection of existing taxes to effect gains of BDS$32.8 million will be sufficient to get us close to our deficit reduction target,” he said.

The finance minister also announced a short-term amnesty to all taxpayers across all tax categories on the interest and penalty accrued on taxes owed at December 31, 2014, to assist the Barbados Revenue Authority in its tax administration and collection efforts.

He said access to this facility would be on the basis that the taxpayers paid their total outstanding principal on or before March 15, 2015.

Sinckler said the Government was also extending the existing revenue measures that formed part of the 19-month programme until April 2016.

However, he noted, the Government would be reviewing the Municipal Solid Waste Tax with a view to determining whether its continued existence in its present form was justified.

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Barbados economy on growth path, says finance minister

Barbados profile

27 November 2014 Last updated at 17:08 The eastern Caribbean nation of Barbados was historically heavily dependent on the export of sugar as its main revenue earner, but in recent decades the economy has diversified into tourism and offshore finance.

Known for its beaches and cricket – its national sport – the former British colony has a dual heritage: English – evident in its stone-built Anglican churches and Saturday race meetings – and African, reflected in its music and dance.

Continue reading the main story Politics: Freundel Stuart first became prime minister after his predecessor died in office in 2010. His Democratic Labour Party was narrowly re-elected in 2013Economy: Tourism, financial services and the sugar industry are economic mainstays

Country profiles compiled by BBC Monitoring

Barbados is one of the more populous and prosperous Caribbean islands. Political, economic and social stability have given it one of the highest standards of living in the developing world. As well as being a centre for financial services, it also has offshore reserves of oil and natural gas.

However, the economy took something of a knock in the wake of the 2008 global financial crisis. The country’s public debt rose sharply in 2009-11, mainly because of a slowdown in the tourism and financial services sectors.

Bajan singer Rihanna is one of the world’s top selling artists

Prior to the economic crisis there was a construction boom, with new hotels and housing complexes springing up. The trend accelerated as the island prepared to host some of the key Cricket World Cup matches in 2007.

However, a shortage of jobs has prompted many Barbadians – more often known as Bajans – to find work abroad. The money that they send home is an important source of income.

Most Barbadians are the descendants of African slaves who were brought to the island from the 17th century to work the sugar cane plantations.

Limestone caverns, coral reefs and a warm climate tempered by trade winds are among the island’s natural assets. Barbados is relatively flat, with highlands in the interior.

Cricket is a big part of life in Barbados, which hosted the 2007 Cricket World Cup

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Barbados profile

Barbados clamps down on importation of meat, animal products

BRIDGETOWN, Barbados (CMC) — Barbados health authorities are clamping down on the importation of meat or animal products into the country, reminding nationals that poultry and poultry products from the United Kingdom are prohibited at this time due to the Avian Influenza outbreak.

They also reminded nationals travelling for the holiday season that they must first obtain an import permit from the Veterinary Services Department of the Ministry of Agriculture, if they are planning to bring meat or other animal products into Barbados.

“Commercially packaged cooked chicken and chicken products are allowed from the Caribbean,” a Government statement stated, listing what it considers to be food products of animal origin.

The statement said that pastries containing meat fillings, meat rolls, rotis and pizzas as well as dairy products including ice-cream, yoghurt, cheeses and eggs and egg products “must be in the original sealed commercial packaging and must not exceed 25 lbs (11kg)”.

The statement also said that individuals and places of entertainment planning to import items such as headdresses, masks or decorations which contain feathers or other animal-derived products for the holiday season or for personal use, are reminded that import permits are also required.

“Non-food animal products include but are not limited to: loose feathers, for use in costumes and craft; products made from skins, feathers, antlers, hair, hooves, horns and bones; meat scraps and treats for pets,” the statement added.

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Barbados clamps down on importation of meat, animal products

Barbados initials oil exploration licence with BHP Billiton

BRIDGETOWN, Barbados (CMC) — The Barbados Government says it has initialled an exploration licence with the international oil exploration giant BHP Billiton, to begin the search for oil and gas off-shore.

Finance and Economic Affairs Minister Christopher Sinckler said Prime Minister Freundel Stuart, in his capacity as minister of energy, would make a public announcement shortly on this new arrangement. But he said the principals of BHP Billiton would sign the formal documents at a public event.

“With the new strategic off-shore oil exploration policy framework in place, it is expected that within the coming months, other similar licences will be signed following the appropriate tendering process,” he told legislators.

Sinckler said that the expansion in alternative energy production and consumption, the continued push in building the international business and financial services platform to protect and grow this vital sector, along with “exciting” tourism prospects, augured well for further growth and diversification of the economy.

He said that the stabilisation and move towards some “green shoots” of economic growth in 2015 would be led primarily by the tourism and hospitality sector, which had seemingly begun a turnaround after some very difficult years.

Sinckler told legislators that at the end of November 2014, arrivals from the United Kingdom (UK) had increased by 9.1 per cent over the same period last year.

“This is extremely important because the UK is the market which has always recorded the highest expenditure per tourist. Airlift from the US and Canada will increase by nine per cent and 23 per cent respectively, for this winter season. Importantly, the period October 1 to November 29, 2014, saw a stabilisation of arrivals from the USA (up 0.1 per cent) and Canada (up 0.7 per cent) after a series of declines.

“Total long-stay arrivals for the period October 1 to November 29 were up 5.0 per cent over the same period last year, with a 14.3 per cent increase in arrivals from the UK, a 20.5 per cent increase in arrivals from Germany, an 11.9 per cent increase in arrivals from the rest of Europe and a 115.1 per cent increase in arrivals from Brazil,” he said.

Sinckler added that the experience of October to November and current bookings all point to a major rebound in tourist arrivals. He said that tourism value-added was estimated to have increased by 0.6 per cent so far for this year, and was predicted to grow 3.6 per cent in 2015.

He expressed the view that these early results and the anticipated ones were a direct consequence of Government’s decisions to change the investment matrix in tourism through the granting of the so-called “Sandals concessions” and the aggressive efforts to increase airlift into the country.

He told Parliament that multi-million dollar private sector investments were now being executed or would unfold throughout 2015, listing among them Sandals resorts, a new Hyatt hotel in Bridgetown, and a new multi-faceted family resort at Sam Lord’s to be managed by the world-renowned Wyndham properties.

“The remodelling and reintroduction of both the Sandy Beach and Amaryllis properties to the local tourism market will complement the work on a complete rebuild of the old Settlers Beach Hotel into a new up-market villa hospitality establishment, together with the early 2015 start of the much-anticipated Beachlands Villa Project, the recently announced exclusive high-end residences project at the Crane, and the multi-million dollar Kings Beach Villa Project which has already started.

“Between these projects and the others to come, Barbados’ economy is expected to receive a much-needed boost of new FDI (foreign direct investment) of over 1.5 billion Barbados dollars (BDS$1 = US$0.50 cents) over the next two years or so.

“This will no doubt create major economic activity, including job creation, spending during construction and increased tourism value added once the projects are completed,” Sinckler said, noting that with the exception of the Sam Lord’s project, the other projects were all private sector developments.

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Barbados initials oil exploration licence with BHP Billiton

Chamber pushes for IMF deal for Barbados

BRIDGETOWN, Barbados — THE Barbados Chamber of Industry and Commerce (BCCI) Wednesday said it had urged the Freundel Stuart government to consider entering into a standby agreement with the International Monetary Fund (IMF) as the island grapples to turn around an ailing economy.

BCCI president Tracey Shuffle, addressing a business breakfast meeting here, said that the private sector had suggested that once a reasonable portion of the present fiscal deficit had been reduced, “the government of Barbados could then consider the feasibility of engaging the IMF to enter into a standby arrangement.

“We believed that would have allowed government to avoid any further erosion to the balance of payments while gaining access to funding to help fuel growth through critical project activations.

“We also believed that would have given Barbados the flexibility to determine its level of engagement with the IMF while meeting agreed fiscal targets and having access to lower cost funding for capital projects to feed major sectors of the economy.”

She said that it would appear that a permutation of the first part of our suggestion has been undertaken while the second part has so far been roundly rejected.

“What is clear is that the 19 -month adjustment programme undertaken by government has been sluggish and well behind targeted pace in both revenue generation and expenditure cutting.

“Reserves have been shored up by borrowings and seem to have stabilised for the last several months. So has this 19-month adjustment programme brought with it the confidence that our economy will be fuelled up and ready for growth over the next three to five years? Clearly not,” she noted.

Shuffle told the breakfast meeting discussing the “Merits and Demerits of a Formal IMF Programme”

“We all know that a formal IMF engagement can only be established by government invitation but we believe that whether or not such a decision is taken in coming months, the business community must be adequately informed about what that is likely to mean.”

She said as a result it was important to have a “well researched, experiential and balanced discussion about such an important topic”.

The private sector leader said that there is a belief in the country that when the IMF is formally engaged by a government, that government has completely “failed” to adequately manage its financial affairs.

“In fact, many countries wait until they are in absolutely dire financial straits to engage the IMF as the Fund is often seen as a rescue of last resort, a time when financial power is handed over to outside interests.

“Others believe that a formal programme is one of the most effective ways to access lower cost loans and to signal that the hardest structural decisions are more likely to be successfully implemented, giving an overall confidence boost to the economy. “

Shuffle said that as always, there are shades and nuances not captured in either of these two positions, noting that there are some Barbadians who believe “our only hope is the IMF, because government can’t properly execute a home grown programme quickly enough for us to move into growth in the next few years.

“Others believe the IMF is insensitive to small, open economies like Barbados and they will essentially imperil the foundations of the economy we have collectively worked to build, even if the fiscal deficit is markedly improved.”

But she told the breakfast meeting that IMF programmes have traditionally consisted of reforming the tax system, making the exchange rate more competitive or allowing devaluation to occur, liberalising trade regimes, increasing privatisation and reducing fiscal deficits.

“While it is clear that some of the traditional IMF approaches have become more member-sensitive in their recent Caribbean engagements, devaluation is usually placed firmly on the table as part of the standard toolkit along with removal of a number of concessions and comprehensive tax reforms.”

– CMC

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Chamber pushes for IMF deal for Barbados

Barbados to benfit from Chinese donation of LED lights, air-conditioning units

BRIDGETOWN, Barbados, Tuesday September 16, 2014, CMC – Barbados has signed a Memorandum of Understanding (MOU) with the People’s Republic of China resulting in the donation of 25,000 LED lights and 1000 air-conditioning units to support the island’s climate change efforts.

A government statement said that Energy Minister Darcy Boyce, who signed the agreement with Chinese Ambassador, Wang Ke noted that electricity accounted for a significant percentage of government’s operating costs estimated at more than BDS$100 million (One BDS dollar =US$0.50 cents) annually.

He said that lighting and air-conditioning accounted for the majority of electricity usage and costs.

In an effort to reduce these recurring expenses, the Energy Minister said government intended to retrofit 75 state-owned buildings with energy efficiency lighting. It is also planned to replace aging and inefficient air-conditioning units which have been identified through energy audits.

“It is the view of the government of Barbados that the utilisation of LEDs would reduce the energy consumption, through lighting, by 50 per cent in Government-owned buildings,” Boyce said, adding that replacing the air-conditioning units with more energy efficient models would also assist Barbados in complying with its international obligations to phase out the use of ozone depleting substances.

He said the saving as a result of the new Chinese donation is estimated BDS$1.4 million annually.

Boyce said that government’s original goal was to attain 29 per cent of electricity generation from renewable energy sources and a 22 per cent reduction in the use of electricity consumption by 2029.

He said these goals are expected to be achieved before that year.

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Barbados to benfit from Chinese donation of LED lights, air-conditioning units

Stuart defends Barbados as a reputable, sustainable international financial centre

Barbados Prime Minister Freundel Stuart (File photo)

BRIDGETOWN, Barbados, Friday September 12, 2014, CMC – Barbados Prime Minister Freundel Stuart Thursday said his administration places high priority on ensuring the sustainability of the international business and financial services sector, (IBFSCs) and is seeking new ways to improve the value offered to those who view the island as the international financial centre of choice.

Addressing the one-day international conference on international financial centres (IFCs) in a borderless digital economy, Prime Minister Stuart said that over the years, progressive legislative changes had been made to provide investors with the tools needed to do business.

“This has meant, in many cases, upgrading existing products and introducing new ones. In recent times, the moves to allow for Private Trust Companies and Foundations bear witness to our recognition of the need for evolution and adaptation,” he told delegates.

He said the term “International Financial Centre” now appears to focus mainly on the small developing countries providing business and financial services, and some have been labelled as “offshore financial centres”, tax havens, or “sunny places for shady people.

“In every area of economic endeavour where developing countries have managed, through a spirit of independence, and by dint of hard work and investment in the development of their human and other resources, to perform as well as or better than developed countries, the playing field ceases to be level, and new and creative obstacles are placed in their way.

“There are, therefore, increasingly robust debates, discussions and empirical studies on the contribution of IFCs to the global financial system, focused in particular on the contribution provided by developing countries.

“IFCs offer competitive tax rates and other concessions which attract business, and this raises concerns about tax evasion, and more recently about money laundering. In spite of adverse public comment fuelled by vocal critics, however, an increasing body of research contradicts this negative narrative,” Stuart said.

Prime Minister Stuart noted that a number of world-renowned academics had rejected the notion that IFCs were locations of choice for secret accounts and other vehicles for international tax evasion.

He said that some findings point to this being the reality in larger, more developed countries, rather than in small developing countries.

Prime Minister Stuart said Barbados’ strong regulatory framework gave assurance of its commitment to operate according to global standards.

He said the sector is of great benefit to the international partners, as well as the Barbados economy. He said it not only generates taxes and salaries for employees, but also revenue in the areas of real estate, tourism, health and education services.

The conference, targeting officials in the local, regional and international financial services sector is sponsored by Invest Barbados and The Central Bank of Barbados.

The organisers said it will demonstrate the Barbados value proposition with an examination of the Canada Barbados relationship, and will take an objective look at the role of nation states in protecting the efficacy of IFCs.

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Stuart defends Barbados as a reputable, sustainable international financial centre

UWI Cave Hill campus sees Barbados student enrollments plummet

University of the West Indies Cave Hill Campus in Barbados (Credit: Facebook/UWI Cave Hill)

BRIDGETOWN, Barbados, Wednesday September 10, 2014, CMC – The Cave Hill campus of the University of the West Indies has confirmed a drastic decline in the number of Barbadian students enrolling at the tertiary institution this academic year as the government’s austerity measures begin to take effect.

Campus Registrar, Ken Walters told reporters that overall, there had been a total of 1,468 students registering this academic year, as compared with 2,240 at the start of the last academic year in 2013.

Last year, Finance and Economic Affairs Minister Chris Sinckler in his 2013-14 budget presentation, said that effective 2014, Barbadian students pursuing studies at the university’s three campuses will be required to pay their own tuition fees, while the government continues to fund economic costs.

Sinckler said the tuition fees range from BDS$5,625 to BDS$65,000 (One Barbados dollar=US$0.50 cents) and that the new policy would reduce the transfer to UWI by an estimated BDS$42 million a year.

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Walters said that the faculties most affected by the decline in student population were Humanities and Education, and that a high percentage decline in medical science and post graduate students.

Walter said that the decline in post graduate students could also have further effect for the future socio-economic development of Barbados given that management studies were developed in collaboration with the public and private sectors.

“If our students are not looking at these seriously, I think that is where the gap may occur in terms of the development plans,” he said.

There were only 477 graduate students registering in 2014, compared to 875 in 2013, a 45 per cent reduction.

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UWI Cave Hill campus sees Barbados student enrollments plummet

Sandals to give Barbados foreign exchange boost with US$53m hotel purchase

Almond Beach Village, Barbados (File photo)

BRIDGETOWN, Barbados, Sunday July 27, 2014, CMC - Jamaican hotelier, Gordon ‘Butch’ Stewart’s, Sandals Group will within a few days purchase a Barbados flagship tourism property, Almond Beach Village, for US$53 million.

Reporting on the matter, the Sunday Sun newspaper, hailed the pending transaction for providing a boost to Barbados’ highly stressed foreign exchange coffers.

“It will all be in the form of badly needed foreign currency,” the paper stated.

The property is currently owned by state corporation, Barbados Tourism Investment Inc.(BTI), through which government has been borrowing money from another state entity, National Insurance Service, to keep that premier real estate afloat.

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Sandals Chairman, Gordon “Butch” Stewart.

The sale of Almond to Sandals was recently examined by Cabinet and approved by prime minister Freundel Stuart.

The Sunday newspaper quoted from a note sent to Cabinet by BTI when the purchase was being considered, “It is also worthy of note that Barbados would have been able to convert a Barbados dominated loan facility, namely borrowings from [NIS] and Almond Resorts Inc., which was all in Barbados currency, into United States dollars at a rate of $2 to $1?.

The emphasis on the foreign exchange gain from this anticipated purchase comes against the background of an analysis by international rating agency Moody’s on the perilous threat the Barbados dollar faces if its foreign currency reserve suffers further drops.

“Any further erosion in reserves would likely put further pressure on Barbados’ currency, which is pegged to the US dollar,” Moody’s stated in a July 21 report.

Moody’s added, “After recovering slightly during the previous three quarters, foreign exchange reserves have resumed their decline, and as of 30 June remained around 25 per cent below early-2013 levels,” Moody’s noted. “This decline occurred despite a slight recovery in long-term private financial inflows that traditionally help support the central bank’s international reserves”.

Half-year figures from the Barbados Central Bank show the foreign exchange reserve falling from BDS$1,219.9 (One BDS dollar = 50 US cents) at the end of June 2013 to BDS$1,093.3 at June 30 this year.

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Sandals to give Barbados foreign exchange boost with US$53m hotel purchase

Patrick Hoyos: Mia Mottley settles the Barbados leadership question

Leader of the Barbados Labour Party, Mia Amor Mottley (Credit: Mia Mottley/Facebook)

Patrick Hoyos

BRIDGETOWN, Barbados, Monday July 28, 2014 – Last week proved to be a turning point in the career of Mia Amor Mottley, both as Opposition Leader and potential next prime minister of Barbados.In short, there is no doubt now who leads the Barbados Labour Party, not just in name, but in deed.

Some people (including me, if someone were to have asked me) may have advised her not to lead last Thursday’s march from Parliament to Government Headquarters, where the increasingly embattled cabinet of the Freundel Stuart administration was having its regular meeting, but Ms. Mottley did as her leadership instincts advised, and went ahead anyway.

Even the rain accommodated her, falling late in the evening as the sun went down so as not to disturb the sunshine-filled midday event.

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Her brief speech from the back of the lead truck at the Bay Street-Beckles Road stoplight – the march been made to end there by the police in an over-abundance of caution – was a metaphorical victory lap for Ms. Mottley, as she surveyed the thousands who had followed her and her parliamentary colleagues, but she displayed no unseemly pride in her new unchallengeable status.

She can now move forward with confidence in taking the fight to the government without looking over her shoulder all the time.

Even on the day of Mia’s complete ascension to the title of undisputed leader, Owen could not resist asking for attention. 

What a difference a day makes, goes the lyric to an old jazz standard. And that difference is Mia Mottley. You might think I am making a big thing of this, but I say – knowing nothing about politics and all of its strategies – to give credit where its due.

The announcement of the demonstration, the first held by one of the two major political parties in a very long time, was openly criticized by one MP, who went on the air – as if he were her equal in party status – to say he wasn’t going to take part and that it was a bad idea. Something about raising the expectations of the people too high, which would only disappoint them and turn them against the party, if the hated Solid Waste Tax was not repealed as a direct result of the march.

It was an argument that was a solid waste of broadcast time. Nobody in their right mind who takes part in a demonstration is crushed if they don’t get their way. They accept that they may not achieve their goal, but they want those in power to understand how they feel. They know that cumulatively this may in time tip the balance in their favour.

Ms. Mottley seems to be succeeding in stirring up a national whirlwind of countrywide opposition

A couple of hours after it ended, I spoke to one of the people who took part in the demonstration. She was at work keeping the dining area of a popular mall clean and tidy for patrons. For her, she said, it was more a victory for Barbados than for the BLP. She felt so good that she had been able to let the government know her view on the tax and how hard they had made life in general, even if nobody knew that she was there individually. It was good for her psychologically, she told me, to actually go out and peacefully protest against what you thought was unjust in your country.

That was why it was a good day for Barbados, as the people didn’t do enough of these kinds of demonstrations, she said. And then she went back to work.

Ms. Mottley, I realised, had reached past all of the intellectual ‘long talk’ about political strategy and gone out on a limb. She might have failed, but she would have done so with her heart in the right place. Many people (yes, including you-know-who) have wondered about her overall strategy, which is reflected in the public sessions which the Bees have been hosting all over the country of late, and in her speech from the back of that lorry on Thursday.

Ms. Mottley, I realised, had reached past all of the intellectual ‘long talk’ about political strategy and gone out on a limb. 

There she read from her letter to the prime minister, offering ideas for the way forward and calling on the administration to bring the Opposition into its confidence and work towards a bipartisan approach to getting us out of the economic whirlpool dragging us to the bottom.

Ms. Motley has take an all-inclusive approach and while I would never have come up with it myself (which is why I am no politician) I have to admit that it finally seems to be gaining traction.

Instead of just trying to stir up a political storm, Ms. Mottley seems to be succeeding in stirring up a national whirlwind of countrywide opposition to an administration whose policies may leave the country bankrupt, given a little more time.

Two opponents of Ms. Mottley were swift to harden their positions. Minister of Finance Chris Sinckler said essentially that you could march wherever you liked, but you will eventually have to march over to your bank for money to pay the solid waste tax anyway.

And Owen Arthur, the sole MP not to take part, whose lack of support for Ms. Mottley was as much in evidence as much as it was unmissed, however lost no time in calling up a newspaper to try to re-direct the spotlight on himself. He hinted at an early resignation from Parliament, claiming he was tired of always being made the centre of controversy, or words to that effect.

Even on the day of Mia’s complete ascension to the title of undisputed leader, Owen could not resist asking for attention. Like Winston Churchill, the great man can not concede that his era of leadership is over. (Source: Broad Street Journal)

The opinions expressed in this commentary are solely those of Pat Hoyos. Pat Hoyos is a business writer and publisher of the Broad Street Journal.

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Patrick Hoyos: Mia Mottley settles the Barbados leadership question

Barbados prime minister ‘opens door’ for Owen Arthur following resignation

Barbados prime minister, Freundel Stuart (left). former Barbados prime minister, Owen Arthur pictured right. (file photo)

BRIDGETOWN, Barbados, Sunday July 27, 2014, CMC - Prime Minister Freundel Stuart has expressed no surprise at former prime minister, Owen Arthur’s resignation, from the Opposition Barbados Labour Party (BLP), and BLP Leader Mia Mottley, thanked Arthur for his service.

Arthur, on Friday, handed in his letter of resignation with immediate effect to the Office of the Opposition BLP, ending 43 years of membership in which he led the party and country as prime minister for 14 years.

Owen Arthur, who led the party to defeat in the 2013 general election but retained his parliamentary seat in the constituency of St Peter, indicated that he will remain in parliament as an independent member until his term of office comes to an end in 2018.

Arthur was Prime Minister of Barbados from 1994 to 2008, making him the longest serving Barbadian Prime Minister to date. He was also Leader of the Opposition in Barbados from 2010 to 2013.

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Stuart, who heads the Democratic Labour Party (DLP), on Friday cited a historical example of a sitting BLP member of parliament – at the time representing what is now Arthur’s constituency of St Peter – resigning to cross the floor and join the then governing DLP, led by Errol Barrow.
Stuart suggested Arthur is free to follow the example of history.

“Soon or later members of parliament get to realise that the Barbados Labour Party is not the place to be…if Mr Arthur has now got to the stage of this realisation, I am glad for him…I’m glad that he has seen the light, the light was there ever since.”

Opposition Leader, Mia Mottley, said, “Owen Arthur served the Barbados Labour Party and Barbados at a critical time before the end of the last century. He helped to lay the foundation for the Barbados that is and the Barbados that we are struggling to preserve”.

She added, “These are extraordinary times, and extraordinary times require of us courage and extra ordinary action”.

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Barbados prime minister ‘opens door’ for Owen Arthur following resignation

Former Barbados prime minister, Owen Arthur, resigns

BRIDGETOWN, Barbados, Friday July 25, 2014, CMC - Former Prime Minister Owen Arthur Friday announced his resignation as a member of the Barbados Labour Party (BLP) which he has led as Prime Minister for 14 years.

He handed in his letter of resignation with immediate effect to the office of the Opposition Barbados Labour Party Friday morning.

Owen Arthur, who led the party to defeat in the 2013 general election but retained his parliamentary seat in the constituency of St Peter, indicated that he will remain in parliament as an independent member until his term of office comes to an end in 2018.

Arthur was Prime Minister of Barbados from 1994 to 2008, making him the longest serving Barbadian Prime Minister to date. He was also Leader of the Opposition in Barbados from 2010 to 2013.

Below is a recent video clip of Owen Arthur addressing his St Peter constituency:

He led The Barbados Labour Party (BLP) to victory in the 1994 general election and also won the 1999 and 2003 general elections.

The David Thompson led Democratic Labour Party defeated the Barbados Labour Party in the 2008 general election, resulting in Owen Arthur stepping down as party leader, however Arthur remained Member of Parliament for the constituency of Saint Peter.

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Arthur returned as BLP leader in 2010, however following the 2013 general election defeat he was replaced by the current BLP opposition leader, Mia Mottley.

Arthur’s resignation from the BLP comes one day after thousands of Barbadians took to the streets to protest against the imposition of the Municipal Solid Waste Tax. However Arthur tried to distance himself from Solid Waste Tax issue as seen in this tweet from the local media company, Barbados Today.

Former Prime Minister Owen Arthur has refused to be drawn into the raging controversy … – http://t.co/O3ha9WGJTC pic.twitter.com/HIoBan5heY

— Barbados Today (@BarbadosToday) July 23, 2014

The midday march, led by Mia Mottley – leader of the opposition Barbados Labour Party (BLP) ended outside the office of Prime Minister, Freundel Stuart, where she delivered a letter of protest on behalf of people across the island.

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Former Barbados prime minister, Owen Arthur, resigns

Sandals to give Barbados foreign exchange boost with US$53m hotel purchase

Almond Beach Village, Barbados (File photo)

BRIDGETOWN, Barbados, Sunday July 27, 2014, CMC - Jamaican hotelier, Gordon ‘Butch’ Stewart’s, Sandals Group will within a few days purchase a Barbados flagship tourism property, Almond Beach Village, for US$53 million.

Reporting on the matter, the Sunday Sun newspaper, hailed the pending transaction for providing a boost to Barbados’ highly stressed foreign exchange coffers.

“It will all be in the form of badly needed foreign currency,” the paper stated.

The property is currently owned by state corporation, Barbados Tourism Investment Inc.(BTI), through which government has been borrowing money from another state entity, National Insurance Service, to keep that premier real estate afloat.

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Sandals Chairman, Gordon “Butch” Stewart.

The sale of Almond to Sandals was recently examined by Cabinet and approved by prime minister Freundel Stuart.

The Sunday newspaper quoted from a note sent to Cabinet by BTI when the purchase was being considered, “It is also worthy of note that Barbados would have been able to convert a Barbados dominated loan facility, namely borrowings from [NIS] and Almond Resorts Inc., which was all in Barbados currency, into United States dollars at a rate of $2 to $1?.

The emphasis on the foreign exchange gain from this anticipated purchase comes against the background of an analysis by international rating agency Moody’s on the perilous threat the Barbados dollar faces if its foreign currency reserve suffers further drops.

“Any further erosion in reserves would likely put further pressure on Barbados’ currency, which is pegged to the US dollar,” Moody’s stated in a July 21 report.

Moody’s added, “After recovering slightly during the previous three quarters, foreign exchange reserves have resumed their decline, and as of 30 June remained around 25 per cent below early-2013 levels,” Moody’s noted. “This decline occurred despite a slight recovery in long-term private financial inflows that traditionally help support the central bank’s international reserves”.

Half-year figures from the Barbados Central Bank show the foreign exchange reserve falling from BDS$1,219.9 (One BDS dollar = 50 US cents) at the end of June 2013 to BDS$1,093.3 at June 30 this year.

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Sandals to give Barbados foreign exchange boost with US$53m hotel purchase

Barbados Labour Party plans Sunday anti-tax rally

Opposition Barbados Labour Party leader, Mia Mottley (File photo)

BRIDGETOWN, Barbados, Sunday July 20, 2014, CMC - Dissatisfied with concessions on the Municipal Solid Waste Tax the Opposition Barbados Labour Party plans a mass rally Sunday evening in downtown Bridgetown, where party leaders may announce protest marches.

This new tax was announced last year with a sweeping .03 per cent charge on the site value of every real estate property across the island, but there have been widespread complaints about the financial burden it places on residents.

Cabinet Thursday decided to waive all payments of this levy for pensioners with property valued under $190,000 (One BDS dollar = 50 US cents), slashed it for agricultural land, and pushed back the payment deadline for others.

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But Opposition Leader Mia Mottley Friday, described the changes as a ‘knee-jerk reaction’

“I welcome the news that some pensioners whose properties are valued at $190,000 or less will not now pay the tax. But there are still thousands more pensioners who still have to pay the full tax if their properties are above this value,” Mottley said.

Representatives of businesses and pensioners also welcomed the changes, but said they want more.

The political opposition maintained it stance that this legislation must be repealed.

“We are not stopping short of the complete repeal of this unfair, disgusting, discriminatory piece of legislation,” said BLP Senator, Wilfred Abrahams, in one of the many public meetings held last week as momentum builders for Sunday’s rally.

“It is coming a point in time very soon when we are going to call on the people of Barbados to walk with us,” he said in reference to Sunday’s rally.

View the original article here

Barbados Labour Party plans Sunday anti-tax rally

Barbados businesses, politicians call for more tax breaks

Chairman of the Barbados Private Sector Association, Alex McDonald said the announcement shows that government is listening to concerns of taxpayers, but he also wants relief for hoteliers.

BRIDGETOWN, Barbados, Saturday July 19, 2014, CMC - Government’s announced changes to the Municipal Solid Waste Tax has been welcomed by politicians and businesses, but they are saying the amendments did not go far enough.

On Thursday the Cabinet decided to waive all payments of the Municipal Solid Waste Tax for pensioners with property valued under $190,000 (One BDS$ = 50 US cents) and pushed back the payment deadline for others.

This new tax was announced last year with a sweeping .03 per cent charge on the site value of every real estate property across the island, but there have been widespread complaints about the financial burden it places on residents.

But Opposition Leader Mia Mottley on Friday, described the changes as a ‘knee-jerk reaction’

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“I welcome the news that some pensioners whose properties are valued at $190,000 or less will not now pay the tax. But there are still thousands more pensioners who still have to pay the full tax if their properties are above this value,” Mottley said.

She also welcomed the 50 per cent cut for farmers, but asked, “What about the hoteliers and other tourism providers? They must still pay this tax, yet our economy’s return to growth largely depends on their ability to survive and thrive”.

“This is still a bad tax and the Barbados Labour Party still calls for the repeal,” the Leader of the Opposition Barbados Labour Party said.

Chairman of the Barbados Private Sector Association, Alex McDonald said the announcement shows that government is listening to concerns of taxpayers, but he also wants relief for hoteliers.

“I think that is something that is going to take some more lobbying to see if we can get [relief for] them, and for other businesses who are right now to the wall and, even the payment over time may not be enough,” he said

President of the Barbados Association of Retired Persons, Ed Bushell, said he was pleased that some pensioners got the waiver, but thinks all should get it.

“We appreciate this first step in alleviating the burden placed on pensioners and look forward to further considerations for those pensioners whose land value is more than $190,000.”

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Barbados businesses, politicians call for more tax breaks

Barbados businesses, politicians call for more tax breaks

Chairman of the Barbados Private Sector Association, Alex McDonald said the announcement shows that government is listening to concerns of taxpayers, but he also wants relief for hoteliers.

BRIDGETOWN, Barbados, Saturday July 19, 2014, CMC - Government’s announced changes to the Municipal Solid Waste Tax has been welcomed by politicians and businesses, but they are saying the amendments did not go far enough.

On Thursday the Cabinet decided to waive all payments of the Municipal Solid Waste Tax for pensioners with property valued under $190,000 (One BDS$ = 50 US cents) and pushed back the payment deadline for others.

This new tax was announced last year with a sweeping .03 per cent charge on the site value of every real estate property across the island, but there have been widespread complaints about the financial burden it places on residents.

But Opposition Leader Mia Mottley on Friday, described the changes as a ‘knee-jerk reaction’

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“I welcome the news that some pensioners whose properties are valued at $190,000 or less will not now pay the tax. But there are still thousands more pensioners who still have to pay the full tax if their properties are above this value,” Mottley said.

She also welcomed the 50 per cent cut for farmers, but asked, “What about the hoteliers and other tourism providers? They must still pay this tax, yet our economy’s return to growth largely depends on their ability to survive and thrive”.

“This is still a bad tax and the Barbados Labour Party still calls for the repeal,” the Leader of the Opposition Barbados Labour Party said.

Chairman of the Barbados Private Sector Association, Alex McDonald said the announcement shows that government is listening to concerns of taxpayers, but he also wants relief for hoteliers.

“I think that is something that is going to take some more lobbying to see if we can get [relief for] them, and for other businesses who are right now to the wall and, even the payment over time may not be enough,” he said

President of the Barbados Association of Retired Persons, Ed Bushell, said he was pleased that some pensioners got the waiver, but thinks all should get it.

“We appreciate this first step in alleviating the burden placed on pensioners and look forward to further considerations for those pensioners whose land value is more than $190,000.”

View the original article here

Barbados businesses, politicians call for more tax breaks

Barbados Labour Party plans Sunday anti-tax rally

Opposition Barbados Labour Party leader, Mia Mottley (File photo)

BRIDGETOWN, Barbados, Sunday July 20, 2014, CMC - Dissatisfied with concessions on the Municipal Solid Waste Tax the Opposition Barbados Labour Party plans a mass rally Sunday evening in downtown Bridgetown, where party leaders may announce protest marches.

This new tax was announced last year with a sweeping .03 per cent charge on the site value of every real estate property across the island, but there have been widespread complaints about the financial burden it places on residents.

Cabinet Thursday decided to waive all payments of this levy for pensioners with property valued under $190,000 (One BDS dollar = 50 US cents), slashed it for agricultural land, and pushed back the payment deadline for others.

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But Opposition Leader Mia Mottley Friday, described the changes as a ‘knee-jerk reaction’

“I welcome the news that some pensioners whose properties are valued at $190,000 or less will not now pay the tax. But there are still thousands more pensioners who still have to pay the full tax if their properties are above this value,” Mottley said.

Representatives of businesses and pensioners also welcomed the changes, but said they want more.

The political opposition maintained it stance that this legislation must be repealed.

“We are not stopping short of the complete repeal of this unfair, disgusting, discriminatory piece of legislation,” said BLP Senator, Wilfred Abrahams, in one of the many public meetings held last week as momentum builders for Sunday’s rally.

“It is coming a point in time very soon when we are going to call on the people of Barbados to walk with us,” he said in reference to Sunday’s rally.

View the original article here

Barbados Labour Party plans Sunday anti-tax rally

Further erosion of foreign reserves puts Barbados dollar in danger – Moody’s

BRIDGETOWN, Barbados, July 23, 2014, CMC - With Barbados’ foreign reserves standing below the 2013 level, International credit rating agency, Moody’s has warned that strain could be put on the dollar.

“Any further erosion in reserves would likely put further pressure on Barbados’ currency, which is pegged to the US dollar,” Moody’s stated in a July 21 report.

The agency issued its analysis based on the Central Bank of Barbados’ fiscal first quarter report issued on July 15.

The analysis is titled, ‘Barbados’ Mounting Fiscal Challenges and Persistent Economic Weakness Are Credit Negative’.

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“After recovering slightly during the previous three quarters, foreign exchange reserves have resumed their decline, and as of 30 June remained around 25 per cent below early-2013 levels,” Moody’s noted. “This decline occurred despite a slight recovery in long-term private financial inflows that traditionally help support the central bank’s international reserves.”

In its July report the Central Bank set Government’s financing needs for the remaining three quarters of the current fiscal year at BDS$300 million, to be financed by commercial banks, NIS, and other non-bank organisations.

But stating that the fiscal first quarter, ended in June, was an important test for the government’s ability to deliver its deficit reduction program introduced in August 2013, Moody’s raised the level of Government’s estimated financial needs.

Any further erosion in reserves would likely put further pressure on Barbados’ currency, which is pegged to the US dollar

“Given the larger budget gap in the last fiscal year, we now estimate that the authorities need a total adjustment of at least BD$450 million (5.2 per cent of projected 2014 GDP) to reach their deficit objective in the current fiscal year,” Moody’s stated.

Moody’s stated that although it expects Barbados’ fiscal consolidation to accelerate over the next three quarters, “it will remain constrained by revenue underperformance, difficulty reining in transfers and subsidies and rising interest costs.

“Consequently, we are adjusting our 2014 budget deficit projection to 8.5 per cent of GDP from 8.0 per cent, about two percentage points above the government’s target, with risks firmly tilted to the downside.”

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Further erosion of foreign reserves puts Barbados dollar in danger – Moody’s

Leading Barbados economists question Central Bank’s outlook

BRIDGETOWN, Barbados, Thursday July 17, 2014, CMC - Two leading economists Wednesday said that contrary to the Central Bank’s prediction of growth in economy from this year, there’s no sign of expansion in the near future and upward movement may begin in three years.

The Central Bank on Tuesday released its second-quarter report for the year, predicting growth in 2014 of 0.3 per cent based on expected performances in the foreign exchange earning sectors. The bank also stated that the economy is expected to pick up by 1.2 per cent in 2015, and 2.5 per cent in 2016.

“We at least believe at best a flat performance, but the realistic scenario would be that we expect a drop off at the end of the year,” said Jeremy Stephen, President of the Barbados Economic Society (BES).

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“I stick by the prediction that growth would be at least three years off… around 2017 you would see significant recovery.”

Stephen, an economic consultant and part-time lecturer at the University of the West Indies, said his disagreement with the Central Bank’s forecast is based on the quarterly report pointing to government’s continued heavy borrowing from the commercial banking sector.

“So the challenges we expect would remain going forward, particularly in arresting the fiscal deficit, using fiscal consolidation as a major strategy,” he said.

The Central Bank had stated that as of March this year, fiscal adjustment measures started last August, appeared to be restoring a balance of inflows and outflows of foreign exchange.

Those adjustments are part of an 18-month programme.

But Stephen cautioned, “We’re still in the middle of the 18-month adjustment programme…so we still have six months to go to see whether the fiscal consolidation would have been successful, but with where we are going right now it is very hard to say that it’s been significantly successful, I would say that at best it has been tepid”.

Ryan Straughn, immediate BES past president said, “I don’t really see where this growth is going to come from”.

“The government spent more in the period of September 2013 to March this year, so one would have to see some more significant cuts coming on stream this year if they are to meet any of the targets. They are looking to raise an additional $300 million (One BDS dollar = 50 US cents) in revenue this year, and I find that hard to achieve and obtain that growth which is being projected to the end of the year as well.”

He said more government fiscal adjustment measures are going to be necessary, “because the deficit was meant to be around eight per cent the end of March, 2014, but it turned out to be nearly 12 per cent.

“Therefore one would have to see a considerable adjustment, certainly between now and the end of March next year, if we are going to achieve any of the targets that would have been highlighted in the budget of last year.”

Although Barbados’ budget statement is presented in August, the financial year begins March 31 of the following year, hence the 2014-2015 fiscal period ends in March 2015.

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Leading Barbados economists question Central Bank’s outlook

Barbados confirms first locally transmitted case of Chikungunya virus

Chikungunya virus outbreaks have now been reported across most of the Caribbean and as far afield as “Africa, Asia, Europe, and the Indian and Pacific Oceans” the CDC reports.

BRIDGETOWN, Barbados, Wednesday July 23, 2014, CMC - The Barbados Ministry of Health has reported the first case of chikungunya in a Barbadian with no known travel history. The other six cases confirmed so far have all been imported into the island.

The Ministry stated Tuesday that in its effort to stem the spread, it is continuing surveillance and public education programmes, as well as fogging programmes, especially in areas with a high presence of adult mosquitoes.

It has also called on residents to play their part by doing everything they can to prevent mosquito breeding, including getting rid of debris and stagnant water on their premises, especially during the rainy season.

*Does not include countries or territories where only imported cases have been documented. Countries and territories in the Caribbean where chikungunya cases have been reported: Anguilla, Antigua and Barbuda, Aruba, Barbados, British Virgin Islands, Dominica, Dominican Republic, Grenada, Guadeloupe, Haiti, Martinique, Puerto Rico, Saint Barthelemy, Saint Kitts and Nevis, Saint Lucia, Saint Martin, Saint Vincent and the Grenadines, Sint Maarten, Turks and Caicos Islands, US Virgin Islands, and Venezuela. (Credit: cdc.gov)

The Pan-American Health Organisation (PAHO) states, “Chikungunya is a viral disease transmitted by the bite of infected mosquitoes such as Aedes aegypti and Aedes albopictus. It can cause high fever, joint and muscle pains and headaches.

Chikungunya does not often result in death, but the joint pain may last for months or years and may become a cause of chronic pain and disability.

PAHO reports that as of July 18, in 21 non-Latin Caribbean territories, that include the 15 CARICOM member states, there were 579,982 confirmed cases of the virus.

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Barbados confirms first locally transmitted case of Chikungunya virus