Prime Minister the Hon. Gaston Browne has made a commitment that lay-offs of public servants will not be a priority in his government’s efforts to restart the economy and keep it vibrant while it battles the effects of the COVID-19 virus on the nation’s economy.
Speaking during a national broadcast on Sunday, a day before the observation of Labour Day, Prime Minister Browne outlined there are many projects, both economic and social, that the Government had budgeted to deliver this year, which cannot now be done because of the comprehensive bludgeoning of our economy by COVID-19. This he said will result in government attracting much needed revenue.
“In these circumstances, the obvious policy option is to reduce expenditure drastically. In doing so, the government would be forced to reduce employment in the public service by lay-offs and terminations, as has been done in the private sector. But, my Government will not take that action; except at last resort. We are a caring government – one that always puts the interest of the people first,” Prime Minister Browne stated.
He further outlined that his government is cognizant that laying-off public servants now would bring immense hardship to families, particularly where there is only one breadwinner, or where other family members have been laid-off from the private sector.
He said that his government will continue to do all in its power, to retain the staffing of the public service at its present level, for as long as it can, including by borrowing and the issuance of bonds.
“This action will increase our debt, and push-up the level of our debt to Gross Domestic Product (GDP) – something we would have wished not to do, particularly as, over the last five years, we have worked diligently to reduce the debt to GDP ratio,” he said.
In January of this year, Government reduced the debt to GDP ratio from 104% when the ABLP administration came into office to 69.1% – a 35% decrease in five years, while growing the economy by five percent per annum.
Prime Minister Browne pointed out that in seeking to maintain employment in the public service and to deliver services, the country’s debts will certainly rise; and, in combination, with limited economic activity, the debt to GDP ratio will also rise.
Despite this, Prime Minister Browne gave the undertaking to public servants, as part of his government’s contract with them, that his government will not lay-off personnel at this time. He however called on workers to perform at the highest possible level to help get the economy up and running.
“Of course, if the adverse economic effects of COVID-19 are prolonged and government is unable both to improve its intake of revenues and to borrow enough funds, the time may come when the public service will have to be significantly reduced. But, as I said, any such action will be a last resort, and it could be avoided by increased national productivity as soon as the country’s lock down is lifted, commercial activity is restored, and tourism regenerated,” Prime Minister Browne concluded.
Advertise with the mоѕt vіѕіtеd nеwѕ ѕіtе іn Antigua!
We offer fully customizable and flexible digital marketing packages.
Contact us at [email protected]
Mr. PM, we are not interested in any debt to GDP ratio. What concerns us is the amount of debt the country is incurring and how these debts are going to be repaid. We are also tired of hearing about projects that never materialize. How were you going to finance these projects when your last budget showed a huge deficit? You will have to borrow if needs be to keep the civil servants employed as I can’t imagine the situation in Antigua with more people added to the 20,000 already unemployed.
Solutions people, no time for politics at this time. I think they should forgive our debts , since this is an unusual situation.
It is sad to say but Antiguans will suffer because of the people we elected to govern us. When we have a PM who boasts about how much he is worth, why would anyone consider forgiving our debts. We do not even know who is owed these debt. We know it is not the World or the IMF as we know how the PM loathes these organizations. Are any of these organizations going to come to our rescue with this government in power? We will have to wait and see while the ordinary people suffer.
The PM and his ministers’ assets can payoff a significant portion of the debt. Does any other Caribbean leader bragged about what they are worth?
The PM should realize that what he says is posited on the internet for all the world to see.
Correction. World Bank.
We have to tap into the international remote industry that existed before social distancing. This includes IT services, call center services, medical transcription services etc. Its going to be highly competitive but if this dot on the map can break through the ceiling from now in one of the niche areas of this industry, maybe we will seem like less of a threat to the big countries.
We can do it people. Let us be as productive as we can in these times.
1) We have to get rid of all negative thoughts.
2)Think of different ways you can make money.( e.g delivery services, selling of vegetables, ect).
3) Become more self sufficient.( Rearing of animals,growing vegetable, ect).
4) 30 minutes to 1 hour of exercise every morning.
@Javk Qui
You must have positive thoughts.The UPP would like to see the Prime Minister Lay off Civil Servants for Political Gain. UPP playing Political Games but our Prime Minister is much smarter than that….No Civil Servants will be LAYED OFF. UPP looking for votes. UPP politicize everything. SHAME on the UPP.
Both governments wud’ve done things with similar outcome…all politicians are the same and in as much both parties have caring MPs, both also have some uncaring ones. But the bottomline is,must&will forever be: de people must nyam.
@True Antiguan
Why are you always defaulting to UPP? Is it the fault of UPP that the labour government has tripled the debt of this country since they came to power? I am surprised that you do not blame UPP for the corona virus. The truth is that the labour government has racked up enormous debt for such a small country and what do the people have to show for it? The only people who are pleased with this situation are the politicians who know how to get rich not too creatively and the clique that become rich from stealing the country’s assets. Look at a country like Nigeria. Billions of dollars have been generated from oil revenue but most of it has ended up in the foreign bank accounts of high level government officials. Nigeria is now resorting to borrowing billion of dollars from the IMF.
I don’t know where your argument that the UPP would like to see civil servants laid off comes from except from your stupidity. How could anyone want to see more people on the street without a source of income? Unfortunately, the longer the tourism sector takes to rebound, the more the labour government will be exposed for what it is. Who is going to lend this government money, except at high interest rates, when the government is in no position to repay the debt. Will the Chinese government give more loans? What security will the government have to give for these loans?
Are we going to realize one day the Chinese government has taken over the airport and the port and also own most of the country’s lands.
Maybe it is time for all the government monies that were not deposited in the treasury be returned to the government. The finance minister needs to account for all the loans incurred and all of the people’s assets misappropriated since labour came to office.
The Chinese may not take over the airport and the port. They will Just send more Chinese to open supermarkets where they can sell foods they manufactured for black people around the world. They then can repatriate all their profits to China.
Tripled the debts? Take the time to understand what is happening. If you understood what the term debt to gdp meant, you would not be chatting the crap you are. There is no way the debt can be 3 times more, our GDP has increased by some 43% (3.2 in 2013 to 4.59), yet the debt to GDP stands now at 69% of GDP vs 104% of GDP, in 2013 (a 35% decrease). Essentially the 2014 debt of 3.32 billion, is now 3.17 billion. Now one would think a wise person would salute the government for this considering they have expanded the economy in the process. There were debt in 2013, which were off the books in 2013 (Half moon bay, IMF), that this government has recognized and not only started to pay but for the latter paid off. In essence you are making the mistake of being foolish, by trying to belittle success.
@getsense
It is pretty obvious that you have never studied economics or finance so you should not be taking about what you do not know. Do you know what is GDP and how it is calculated? The debt is a known amount. It can change when additional debt is added or amounts are repaid. GDP is some number governments come up with to let people know how they think their country is doing economically. Gaston is well aware that the majority of Antiguans know nothing about what GDP means so he keeps talking about debt to GDP ratio. Whether the ratio is high or low the amount of debt is what the government owes. Gaston should tell people the amount of debt and the government’s ability to repay. Debt to GDP is a term the government throws around constantly knowing that you and most Antiguans have never studied Finance or Economics and have no clue what is means. Suggest you google GDP and tell me if you understand it’s meaning, before you call people foolish.
What in the world…? Honestly I feel ashamed for you. The GDP you claim is made up is actually reflected in not only ECLAC’s reports, but our central bank and the IMF (google their global outlook). You suggesting you know more them them yet you need me to tell you what GDP means? The government has stated what the GDP was for the specific years. Its also stated what the debt to GDP ratio was. Now you telling me even with a computer available or calculator, you need Gaston Browne to break the number down for you? Please find another forum, may I suggest a rum shop
I expected better from Gaston Browne. Under his leadership we have reverted to days of Lester ie corruption and poor management all round. There is no denying personally he is flourishing while setting the country back 30 years.
The covid 19 just show him up lies pure lies that comes from his mouth. Worst Prime minister Antigua has ever had. No accountability we dont even know what the CBI monies are being use for.
I am thinking back to 2014/2015 to a statement made by Gaston Browne.Did I read on line at that time.Where he said he would borrow Antigua and Barbuda out debt.Did I read incorrectly.Could someone refresh my memory.I think what I did read was in the old Observer Newspaper on line.At some point if the economy is not resuscitated fast.There is no doubt.You Gaston Browne would have to make the ultimate decision and cut the Public Service.There are too many non-established workers on the Government Payroll at this time.They are financially crippling the Country.One of the ways Leadership is measured making touch decisions.
He said grow us out of debt. Note the debt has gone from 3.32 billion in 2014 3.17 billion (69% of GDP) GDP has gone from 3.2 billion to 4.59 (a 43% increase). Note our often heralded neighbor BDS, its debt as of the end of 2019 stood at 116% of GDP (12.76 billion ec) hence 14.37 billion EC. In 2018 it was near 150% of GDP but they have managed to get some debts written off, due to the IMF program (laid off some 2500 workers)
@ getsense
No country can grow itself out of debt. They either repay their debt or it is forgiven. No need to post nonsense as it makes you look foolish.
Yes countries and persons can. Its called find ways to increase your income so you can more easily pay the debt. We did this by for eg. increasing the number of hotel rooms and then essentially increasing stay over guests from 250K to 309K. Poor you, you are overdoing the weed
I have tried avoiding having discussions with labour supporters as I found some of you to be loyal to the point where you appear to be lacking common sense and talk a lot of foolishness. There are a lot of UPP supporters who also talk nonsense. I guess this is a common trait in Antigua. Why else would some Antiguans curse out people for politicians who are living the good life at their expense while they live in shacks, some without electricity and running water. Hope you are not one of these individuals and you are living the good life at the people’s expense. You need to get sense. I am tire so I am finished with you.
In the statement to the nation on May 3rd, the PM stated that over $2billion in private and public sector investments were planned. Now that these investments have been panned, why not use the government’s portion to help the people of Antigua. Even at 50% this was a substantial amount of money that the government said it was investing. You know what? This could just be fake news. Mr. PM, the IMF and World Bank is listening.
You recall how much of that 2 billion was public sector investment? Why assume the government portion was cash and not land, tax concessions ? Its strange that you would think that government has some 1 billion ec, sitting in some bank account, yet they have some 3.17 billion in debt. Please try and be logical
No need to lay off public servants. Just return to the treasury all of the people’s money hidden elsewhere.
The government should start by laying off all the non Antiguans on its payroll and when flights resume give them a one way ticket home. We know that most of these workers are non established workers. When you go down deep water harbour all you hear are foreign accents. The head of the port knows why she hired all those non-nationals. She should be one of those sent home as she past retirement age. Show me a Caribbean government that has a lot of Antiguans on it’s payroll. The other countries look after their people.
@ JACK QUI and BUGSY
Now I know the effect of THE BLUE KOOLAID on you Guys. You Guys forget that the UPP is in Opposition and would never see Power again in Antigua. UPP with one seat in parliament.Jack Qui why don’t you be an advisor to the UPP. You just have a bunch of FAT CHAT.You will be complaining for the next 30 years. Hope You will get help for the BLUE KOOLAID EFFECT.
@True Antiguan
You and the Labour Party had better pray that the economy improves by the time the next election is due. Antiguans have a habit of kicking out the labour government when they are catching hell. The sad part is That by then the Labour Party has created economic devastation in the country with its policy of running the country on debt. Any successive government is in deep trouble from day one. Don’t worry the labour government will not be in power for thirty years as the country is bankrupt. Who is going to lend them money or give them grants?
Why don’t you suggest that I become an advisor to the labour government? They certainly need some professional advise. But they won’t take any.
I have a bunch of FAT CHAT because I have invested a lot of time and money in higher education.
The UPP who managed to take our debt of 2.4 billion (I have removed the Colombian debt which was early in their term written off) in 2004 and turn it into 3.3 billion by end of 2013. In the meantime they moved our gdp from 1.1 billion in 2004 to 1.13 billion in 2013. Talk about an anchor around our necks. In the meantime this current admin grew our gdp between 2013 to 2019 by 43 percent (3.2 in 2013 to 4.59 in 2019) @Jack Qui Lyn, keep that UPP curse for yourself.
@ getsense
No country can grow itself out of debt. They either repay their debt or it is forgiven. No need to post nonsense as it makes you look foolish.
Actually you have shown why the UPP failed. no ability to find real solutions. The people of this country saw this in 2014 and threw the lot of you out of office. One such was finding ways to increase your income, so you can more easily meet your debts. We did this by for eg. significantly increasing tourism arrivals (stay over) by some 20 percent. Current PM even tried to help the former admin by suggesting another measure to achieve same via implementing CIP. Even that UPP could not get going
True Antiguan:
I do not drink any Kool-Aid.I never liked it at all.For your information.In my life in Antigua.I voted once in 1976 and shortly after that I left Antigua.I do vote where I am living,working, and paying taxes.I do not come back to Antigua and vote there.I leave that to those who are living there.And last election in 2018 thousands did not turn out and vote.
Lets make some money for the government.
1 Reduce the cabinet by 50%.
2 Consolidate all the boards and make them smaller. Boards generally meet once or twice a month, so give the same people at the same rate several boards to run to fully occupy their time, and the country gets value for money.
3 Park 80% of government vehicles at the motor pool for a period of six months in the first instance.
4 Negotiate with all landlords for a six month rent free period. (If the government was not renting the building the building would not be rented any way)
5 A 100% freeze on ALL work permits and extensions (except for government essential workers).
6 Make down town St Johns paid parking, many ministries are over staffed used those staff to collect the tolls in St Johns. Logistics can be worked out easily.
7 Raise the price of gas at the pump by $1.50 for six months.
8 Seek local debt relief and park all those excavators. Get motorized equipment to maintain the road sides.
9 Review all tax incentives given to so called investors, its time the pay their way for at least six months in the first instance. (It is unfair that a born Antiguan cannot get a duty free consession but an expat can get 25 years tax free holiday)
10 Conduct forensic audits at all revenue centers and ministries. Go after missing funds.
11 Ramp up the ganja farm.
See how easy it is for the government to make money.
Though there are a few usable ones, must tell you things like suspending 25 year tax concessions. How will that help you when at least for the next year, these biz will not be making a profit? Will tell you that I do believe we need a better method. The land lord idea would have to be changed to perhaps a bond (defer the debt). Your item 6, is this an attempt to make a joke? You really think you can change the job structure of unionized employees so easily?
@ Jack Qui Lyn
Will you be running in the next election? You will never win St.Georges ever again .We shall take all the seats including Barbuda next election. UPP depend on Damani Tabor , Knight ,Serpent ,Harold ,D.Gisel Isaac to sell Their program. Antiguans think these are the BIGGEST Jokers. Hope you place some of your skills and Talent with UPP.
@Melchisedec, throw your hat in the ring, to help straighten out, and run this thing called, Government!
Comments are closed.