Estimates to address oil prices
Wednesday March 02 2011 | 01:08 AM

Conflicts in the Middle East and their domino effect on world oil prices that have already crept above $100 per barrel will fall under the radar in the upcoming Estimates of Expenditure debate.

Minister of Finance Christopher Sinckler stated today that the conflicts and resulting increases in oil prices presented serious issues for Barbados, which he intended to deal with when the Estimates debate gets underway on March 14.

"Commodity prices continue to rise and those increases are going to be brought right here to our doorstep," he said.

During an interview following a presentation at the R. L. Seale Distribution Centre in St. Philip this morning, Sinckler said Government would have to look at the matter on a product-by-product and issue-by-issue basis and decide how best to assist Barbadians.

He said Barbadians needed to move forward over the next six months with open eyes, and with the understanding that the country was going through a "truly difficult period".

Sinckler stated that there were a number of structural issues to be addressed in the Estimates related to the cost of living. And he noted the relevant ministries, including the Ministries of Commerce, Agriculture, Finance and Foreign Trade would be examining the situation to see what adjustments can be made.

Making reference to the fiscal deficit, the finance minister gave the assurance that Government would be continuing its efforts to reduce it substantially by 2014 or 2015. Another area that will be in focus is that of the public service, which Sinckler said would continue to be delivered at a high quality over the coming years.

He stated that Barbados' economy went into recession in 2008 and intensified in 2009, resulting in a 4.7 per cent decline. He added that the 0.3 increase in growth, though slight, should be noted, given the context of the situation.

Sinckler noted that with the British economy still performing sluggishly, the American economy struggling and still not sustainable, and CARICOM affected by the recession, it was only Canada that was showing some measure of resistance.

Financial issues

The minister added there were also issues with Barbados' public finances and productive sectors.

"Recovery is very tepid but it is going in the right direction," he said.

Come March 14 attention will also be paid to education, health, the productive sectors and tourism.

"In education there are issues pertaining to schools that have to be properly restructured, some that have to be built and one or two other things that you will hear about when the time is right," he said during the interview Tuesday.

As it relates to agriculture, Sinckler said Government would be looking to improve the standards within the sector to secure both local and export markets.

He added that the Estimates would also address efforts in the area of small business development, in terms of businesses increasing their technology platform and their capacity with technology to be more competitive. Sinckler also disclosed that they were working on issues with the Small Business Association to ensure that companies obtain their small business status in a speedier time to ensure that they were more competitive.

Value Added Tax will also feature in the Estimates debate as Government seeks to raise the threshold from $60,000 to $80,000 from April 1.

"What Barbadians have to do, and what I will be calling on them to do is to stay the course. Don't get diverted, don't lose focus, stay the course," the minister urged.