Please permit me to outline some sobering options for our country as a whole and in particular for the vilified but competent Minister of Finance Winston Dookeran in relation to our looming labour crisis and its possible impact. If we look at our dozens of state companies we would find out that these are chockful with thousands of political hacks employed in cushy positions with exorbitant salaries, benefits and allowances as a general rule. These are not public officers or public servants and were employed directly by these corporations and companies which live off the fat of the land insulated from public glare. Any rational or non-partisan citizen would realise that savings or cutbacks at these state-controlled bodies would mean either more money back to the Treasury or less dependence on the taxpayer to support these institutions. In other words, the central government will have greater resources at its disposal to solve national problems and thus bring about more comfort and equity in the society.
The annual $700 million fuel subsidy to Caribbean Airlines is just a simple case in point. Therefore I suggest post-haste that a sub-committee of Cabinet, including the Ministers of Finance and Labour, be instantly mandated to propose salary inspections or audits for 2011, starting at the top level of these sacred cows. We must bear in mind that they would have participated in ravaging the economy in conjunction with their political masters through years of plunder and mismanagement at all levels. The fete must come to a stop. The PSA, NUGFW, TTUTA, Clico depositors and others would have to wait to exhale. In fact, if we put the cart before the horse and go into a salary settlement with the PSA, it will automatically set the benchmark to trigger increases in all state institutions.
For example, if a 10 per cent award is given, the State will have to borrow billions of dollars not only for directly employed state workers and teachers, but will even have greater wage bills at all state corporations and companies. We must not forget also the demands which will follow from the pseudo state employees in the CL Financial empire. Another aspect for consideration is the long-term trend of expenditure and the consequential escalating demands for pension and gratuities in years to come. If you are not worried yet, think about the ramifications for inflation and how we will service the borrowing in future years.
I can foresee any or all of the following scenarios if the Government grants any increases on account of the financial constraints: The downsizing of workers at state companies and central government which will exacerbate hardship not only for these citizens but also the public because of staff shortages. Of course the Government could continue salary increases to all workers and collect a portion back via harsher taxation as duties and VAT and in the form of reduced fuel and other subsidies. Maybe we prefer to laugh all the way to the bank and then wail and gash our teeth as we withdraw to pay galloping costs of goods and services.
If the unions still cannot see the big picture, then we must go into heavy borrowing in order to sustain our high standard of living at the cost to next generations-let's continue with the motto that greed is good while our piles of savings melt. If we still find it impracticable to implement any of these suggestions, then the next option must be the "D" word which would significantly reduce across the board every single citizen's dollar value two-fold through the multiplier effect. To those of my political friends who feel that the way to shore up your political stocks is still via political patronage and wild spending, I have some news for you. I think if we are prepared to bite the bullet, we can have a bright and prosperous new year and in the years ahead.
Alto Daniel
St Joseph