In exactly one week, Prime Minister Said Musa will present the 2005/2006 budget in the House of Representatives. But before he takes the $665 million budget to the House on Friday, his team headed by financial secretary Dr. Carla Barnett will take it to the Chamber of Commerce, Business Bureau, and National Trade Union Congress on Monday afternoon. They will meet to discuss a budget for $665.8 million in expenditure and only $511.4 million in revenue, including grants. Simple math shows that will leave a $144 million deficit which has the unions asking a lot of questions. The National Trade Union Congress of Belize today called on the Musa administration to come clean on his plans, or else.
Keith Swift Reporting,
They have a history of resistance and doing whatever it takes to stand up for workers' rights. In March of 2002 that meant marching on Belmopan to demand a wage increase.
[Unions workers marching on Independence Hill chanting the union's solidarity song and holding placards.]
But despite the union's earnest protestations and singing of spirituals, they never got the wage increase that they demanded. Instead, they got a compromise of 3 years of 8% increments. Now this new budget threatens to freeze wages and forsake the last year of those increments so again the Public Service and Teacher's unions, under the umbrella of the National Trade Union Congress are preparing to take on Prime Minister Musa as he prepares to present his budget.
George Frazer, NTUCB General Secretary
"We believe first in dialogue and good will and if we see its just a matter of talking the talk but not walking the walk, we will have to consider our options."
Dylan Reneau, PSU President
"The public service is run by public officers and I've already gotten some hints from higher ups in the public service that they are willing to go the highest level to get this thing resolved because if the Customs shuts down, the Customs collects 70% of the revenue of this country which this country needs to survive so this country would be hamstrung. This government is seriously playing with public officers and we are tired of it. I've been saying and singing it a long time now and its coming to a head."
PSU President Dylan Reneau today held in his hand the 2005/2006 budget estimates which he says is part of GOB's game.
Dylan Reneau,
"This is just another hint to us that this thing is a charade. I am certain that if we don't make any recommendations, I wonder what the Prime Minister's budget speech will be next Friday; what it will be all about. They would have had to make those decisions."
And at the top of the list of decisions to be made is how government plans to close a gaping $144 million deficit forecasted for next year which today, a week before the budget speech, seems to be GOB's $144 million secret.
Dylan Reneau,
"We had asked, because we knew the budget was already being prepared, for a draft summary of the budget but it would have entailed some of what the Cabinet was thinking already to try to rebalance or balance the budget. Now what we've gotten is just a straight-out calculation of the budget without any of their input when it comes to these IMF recommendations and so forth. So I think that this government is seriously playing some games now where they are going to put the unions and the business sector in such a position where we would have to make recommendations to them and then they would endorse those recommendations and that would be what will be in the budget. All of a sudden the government is stepping back and saying that they're not the leaders anymore, 'we'll be in cohorts or we will dialogue with the unions.' We are not economists and we don't know if say a 3% salary increase, if that will bridge the entire $144 million gap. We don't know these things but they are putting us in a position where it would be us saying this is what we need to do; endorsing it."
Reneau along with teacher's union president Anthony Fuentes also says the new budget makes no mention or allowance for GOB's promised salary increases and both warn that is a promise they won't allow GOB to break.
Anthony Fuentes, BNTU President
"At every opportunity and forum that I have gotten and that I have met with the prime minister, I've asked him over and over about our third salary increase and he indicated to us that its on the table and we need to take a hard look at it. Based on the figures that we have seen, it's all indication that we won't be getting our third salary increase."
Dylan Reneau,
"It has now come out that we will not get our salary increase come April but they have not given us any feedback as to when or where or how it will be paid and that is very serious to us."
Keith Swift,
Do you know that for a fact though that you won't be getting the increases this year or do you just glean that from the budget estimates?
Dylan Reneau,
"Its indicated in the estimates, its indicated in the Cabinet brief that was issued so we are aware of it. You see..."
Keith Swift,
Is this something the union is prepared to fight for?
Dylan Reneau,
"We demand a resolution of this situation. It is a collective agreement; it is a contract with this government. We will not back down from that. That is rightfully ours."
The NTUCB's general secretary George Frazer also says they won't back down on their position of 'no new taxes' until Belmopan commits to change.
George Frazer,
"What it will take, as we have stated, first clean up the mess, let us put the proper structures in place. Let us get rid of all the fat, the abuse, so many contract people, and let us support those revenue collection agencies; sales tax, customs and others to try and bring about a more balanced and fairer way of doing it. Also a restructuring of our tax system because that again is a big problem, we need to restructure the overall tax regime."
The meeting is scheduled for 2:30 Monday afternoon at the Central Bank. For its part, government today responded to the Union and Chamber's letter earlier this week asking the Prime Minister to implement reforms before new taxes. Musa's reply indicated that reform is underway and so is consultation which will include Monday's meeting and a special forum on finance reform scheduled for Wednesday.
