radhica.sookraj@guardian.co.tt
Prime Minister Dr Keith Rowley says that hefty increases for public servants can plunge the country into debt, as he last night cautioned citizens to be responsible while wage negotiations continue.
As public unrest mounts and cries of injustice from the trade union movement escalates over a proposed two per cent offer for an eight-year period from the CPO, the Prime Minister reminded the country that public servants have not lost their jobs and are still receiving their salaries regularly.
Speaking at a People’s National Movement meeting at the Mt Pleasant/ Calvary Community Centre in Arima last night, Rowley said if the Government gave in and granted a generous eight per cent wage increase, this would cost the country $3.6 billion in back pay and an additional annual cost of $1.4 billion to pay public servants’ salaries.
“Do you see that money in the Treasury at this time? Do you see the Minister of Finance being able to find that money so that you with jobs can get paid? Well, it might happen,” he told the crowd.
He added, “When we came into the Government, we met a 14 per cent back pay that cost us $6 billion. We paid it, borrowed and paid it. I want to ask, are you, the people, telling the government to do the same thing again. I’m listening,” he shouted.
“Tell me!”
The crowd roared, “Noooo!”
Dr Rowley said because of the increases in revenue from rising oil and gas prices as a result of the Russia/Ukraine war, the Government had earned $4 billion in additional revenue. However, out of that, after paying debts and expenses, he said there will be just over $1 billion left.
“We went to Parliament and added $3.1 billion. Nobody got up and say don’t do that. This covered expenses that the Government was carrying,” he explained.
The Prime Minister said he was listening to the cries of the public servants and agreed that they deserved more. However, he said people have to remember that the Government’s priority was to save jobs.
“We have to give public servants a reasonable offer. We know the tremendous pressure you all are facing. We said we will not go to the IMF, we will stay here and prescribe our own medicine, giving us the opportunity what no IMF programme will allow us to do,” he said.
He added, “We have not laid off a single public servant because we have said the first objective is to keep your job. The second priority is to have money to pay you and as soon as we can do that, we will improve your earning capacity.”
He noted that in some Caricom countries, public servants had not been paid for several months.
“The important thing is to keep jobs. I know what it is like when we have no money to pay public servants. We don’t want to be in that situation. Let us not overreact and not get carried away. I didn’t say that two per cent was enough. That was my opener.”
He said trade unions are familiar with negotiations where there is a high offer and a low offer.
On the issue of property tax, Rowley said this too will bring money into the Government coffers. He said now that the local government bill has been passed in Parliament, the Government will move ahead to ensure that property tax laws come into effect.