BIBA 2010 Budget reaction
Tuesday November 23 2010 | 02:06 PM

“A responsible Budget” was the reaction from President of the Barbados International Business Association (BIBA), Mr. Mohammed Patel, to measures announced in the first Financial Statement and Budgetary Proposal by new Minister of Finance, the Hon.  Christopher Sinckler.

Mr. Patel reflected that the private sector understood the stark economic realities that were being faced by the island and therefore it came as no surprise that Minister Sinckler had used this Budget to aggressively widen the revenue earning capacity of Government.

“The fact of the matter is that, while the international business sector has remained the most consistent foreign exchange and tax revenue generator for the island over the course of this recession, we too have been hit hard. Corporate tax has declined by 32 per cent over the past year (of which the international business sector accounts for more than half of what is paid in each year) and therefore Government would need to tighten the holes in its net to ensure that all segments of society were contributing the funds needed to reduce the island’s deficit of half-a-billion dollars,” said Mr. Patel.

The accountant and president of Cidel Bank & Trust went on to add that while there were no incentives presented for the international business sector in the Budget, BIBA remained satisfied with the policies directed at the sector.

“We did not approach the Minister with a ‘wish list of goodies’ for the sector because we recognised that austere measures were needed. However, we are pleased that the Minister acknowledged that for far too long full recognition has not been given to the sector’s total contribution to employment, foreign exchange and Barbados gross domestic product due to a lack of statistical measurement. We are pleased that Government has engaged consultants to devise a methodology for gathering the required data and for updating it on an annual basis and BIBA stands ready to provide input and assistance where required through the involvement of our Economic Contribution Committee, which is headed up by Dr Keith Nurse and includes Dr Justin Robinson – both University of the West Indies economists with specialist knowledge in this area,” added Mr. Patel.

“We are also encouraged by the Minister’s commitment to increasing the promotion budget for Invest Barbados with a special emphasis on direct marketing in Mexico, which is showing the potential to be a strong source market for inward investment to Barbados,” he said.

The BIBA President did say though that with Government increasing its immigration fees, the sector would expect to see those increases repaid with increased efficiency and responsiveness from that department.

“We are all collectively pursuing the goal of returning Barbados to a surer economic footing, but we expect to see Government display public sector commitment to improved productivity and efficiency across the board if we are to feel that the sacrifices being demanded of us are being made for a good cause,” said Mr. Patel.

And while Minister Sinckler shied away in his Budget from any major expenditure cuts from Government’s end, Mr. Patel said he still expected to see some restraint exercised within the public sector and looked forward to seeing that further explicated in the Estimates next year.