And while the wisdom of the bond may be debated, the timing is hardly in question.
Everyone who works in the public sector or is waiting for a voucher knows that government's is on a very tight fiscal policy. In fact it's so tight that we're told from within the public service that government is scraping to save just hundreds of dollars. We put that to the Finance Minister today and he bristled.
Jules Vasquez,
"They know that government is fighting to save hundreds of dollars to pay its debt servicing which is in the hundreds of thousands monthly and that along with its recurrent demands is just too much for the government to take so this is a maneuver to save while we can because we pretty soon won't be able to meet debt service payments.
Hon. Ralph Fonseca,
"Again Jules you are sacrificing your journalism to try to do the face for the opposition. That is nonsense, absolutely nonsense. I explained that you have in the US over $7 trillion in debt with 260 million people - each person owes about $25,000. In our case in Belize if you do the same thing with our debt, it is less than $2,500. In Jamaica and some of these places their debt to GDP ratio is over 150% and they have big problems. We have big catch-up growth potential here in Belize and people know that though they talk about 92% of our debt - our publicly guaranteed debt being 92% of GDP they are not talking about Central Government's debt. Central Government's debt is less than 60%. They are talking about other debts that are being repaid by BWSL, BEL, and DFC and at the end of the day are run right on track. We are doing what we need to do and we are doing it in a fiscally responsible way."
Jules Vasquez,
"But looking at the question - aren't government departments scrambling to pinch where they can and trying to hold off payments for as long as they can? That's from people that I have spoken to. And not people who are leaking just people who are working everyday knowing that the Financial Secretary won't sign anything until the last minute. Is that not a reality not withstanding what's happening in Jamaica and America? Is that not a local pressing reality that the government is scrambling monthly to meet its debt service commitment?"
Hon. Ralph Fonseca,
"You are sacrificing your journalism again for reality because you know Jules that we are on smart system now. It's not Mr. McSweaney, it is the computer that is not allowing you to go outside the discipline of the budget and that is something that this government has done and we have no apologies for that. Of course public officers are not used to that kind of discipline and of course some of them, especially some of your friends, will be upset because they are used to getting their own way. They cannot get their own way anymore. If the budget says you are supposed to spend so much that is what you are going to spend. If March comes around and you have a lot of unspent money in CAP II and you are trying to get away with putting in air conditioners and everything else in your office - you are going to get stopped and you are going to get stopped by me and my team and our computers."
Today's house meeting went for over 5 hours.