For three solid hours this afternoon the Cabinet Finance Committee along with their so-called social partners were locked down in a closed door meeting at the Central Bank conference room. Minister of State in Finance Joe Coye flanked by Ministers Ralph Fonseca and Godfrey Smith along with Financial Secretary Dr. Carla Barnett led the meeting to discuss Prime Minister Musa's budget which he'll present this Friday. While the $660 million budget was the topic, of interest was the gaping fiscal deficit which government needs to fill. And while those who attended thought they would have been given answers, President of the Chamber of Commerce Arturo Vasquez says that after 3 hours of meeting, none was given. Vasquez concedes that given the figures, taxes might be inevitable.
Arturo Vasquez, President Chamber of Commerce
"If there are increases in taxes, which may be inevitable, we cannot at this point say to our membership exactly where the taxes will increase. And that is the part where I think, at the end of the day, should have come out of this meeting; to be very clear as to where so we can go back or at least look at it and say 'that is a good one or maybe that is not a good one,' and we can look at other areas. So in recapping, that is really what I think happened."
Horris Patten, NTUCB President
"The union's position is that we don't expect to pay no new taxes; no new taxes. I think what the government is saying is that there would be no new taxes, but there might be taxes in other areas."
Keith Swift,
Mr. Patten the government presented you guys with a budget with a $198 million deficit (or $144 million) and they asked for your recommendations. What were those?
Horris Patten,
"Well we had both long term and short term recommendations. Brother Frazer is giving you a copy of our recommendations and in that copy you'll see the necessary things we would like to do."
Keith Swift,
So you are saying that in there you told government that the deficit can be bridged without raising taxes?
Horris Patten,
"Without raising taxes. This is what we are saying."
Dylan Reneau, PSU President
"Several proposals were made from all the different entities, none including new increases in taxes. But from gathering from what the chair was saying, the Honorable Jose Coye, it appears to be that it is a foregone conclusion that on Friday we will not be surprised to hear that there will be a lot of new taxes."
Keith Swift,
So what came out of this meeting?
Dylan Reneau,
"Basically I do believe, as I had mentioned a long time ago, I don't think that we are getting the back and forth consultation that we should have gotten from day one. We requested certain information and the government does not want to put itself in a position where it's making certain recommendations. They want to do it the reverse-way all of a sudden and to me its only lending to an atmosphere of mistrust because come Friday when we hear all the tax increases, then what do you think will you happen then? Our constituency won't be too pleased about that. I am certain."
Keith Swift,
Will there be new taxes come April 1st, which is the start of the new financial year?
Arturo Vasquez, President Chamber of Commerce
"I believe we may see some increases but, like I said, we were hoping they would be specific as to where these increases would happen. This committee today, now that we have provided them with all the recommendations, they will not necessarily come back to us and tell us which one they'll use and which one they won't or they might have their own ideas which we also are not privy to."
Keith Swift,
Did the Chamber recommend any specific increase say for sales tax or business tax?
Arturo Vasquez,
"No, no. We were very clear that those are the areas we would prefer not to look at."
Keith Swift,
But again at the end of the day you think it's inevitable?
Arturo Vasquez,
"I believe it will be, except that we may not know what it is until its read on Friday."
The meeting was also attended by minister of national development Assad Shoman and attorney general and minister of education Francis Fonseca. Teacher's union president Anthony Fuentes told us that during this afternoon's meeting, minister of the public service Jose Coye committed to paying public officers and teachers their promised increases...but not on April 1st. The unions will meet with Coye to discuss the issue in the Cabinet room tomorrow afternoon.
