In these difficult economic times, our government is correct to establish clear policy as to how we should weather this storm created by low energy prices. To its credit, this administration has articulated such a strategy albeit a short term one.
They have identified ways for dealing with the troubling fiscal deficit–withdrawals from the Heritage and Stabilization Fund, raising of loans, reduction of planned expenditure by seven per cent and one-off asset sales. Those asset sales are mostly of profitable State-owned enterprises. Given the scale of the deficit, absolute adherence to that strategy should be expected.
Why then is the return of control of Clico and its subsidiaries back to its shareholders not a priority? Surely the last thing we should be doing is acquiring companies when there is a credible cash alternative. It makes no economic sense to acquire companies having stated our strategy to dispose of assets in order to plug our fiscal gap. Government must tell us why it is going against its own stated strategy by acquiring Angostura, Home Construction etc, when the economy needs the return of the substantial funds advanced via the Resolution Plan to the Treasury post haste.
We all know that there are many legitimate demands on the public purse that we are struggling to meet. Why should workers be kept waiting for their backpay when that money could be used in order to effect swift payment? This is not a time for personal vendettas or private interests to triumph. The administration should be striving to provide all the financial data required to support an exit strategy to owners of the company. Our government is doing opposite and scorning every offer. We should be testing the ability of interested parties to deliver, as that is the best option.
As Max Senhouse famously once said: "We need the money."
David Walker