Robinson chides gov't for not accessing available funding to kickstart economy

 

Opposition Spokesman on Finance Julian Robinson says he is baffled by the decision of the government not to draw down on billions of dollars in international funding available to assist the strugging economy. 

 

Speaking on Radio Jamaica's Real Business on Wednesday, Mr. Robinson warned that the government will continue to see a decline in tax revenues due to its failure to pump money into the economy. 

 

"The government had indicated they had a significant financing package lined up - $6.7 billion. I don't know what has been the hesitance to draw down more of that money, because, you know, this is different from COVID. You need an immediate response to put people back on their feet. That has not happened. But that needs to be done. And that don't need to wait on NaRRA to be established. You have to get people back on their feet so that economic activity can return to pre-Melissa levels in a shorter period of time. Otherwise, next quarter, you're going to have a short fall again, and you're going to have to go back to the market and borrow more money," he argued. 

 

Mr. Robinson said the Finance Minister's suggestion to cap wages in order to control the wage bill and spur growth will not solve the economic crisis. 

 

"What you going let go? You going let go policeman, nurse, teachers? You can't. Wage bill is not something which is so flexible that you can just cut when you want. It's not possible. All of those people who are being paid are providing essential services.... So I've been very disappointed in even the conversation. Nothing has been said about what the plan is in the short term to grow the economy," he said, arguing that after three consecutive quarters of negative growth, the country appears likely to record similar negative growth for a fourth quarter. 

 

Meanwhile, Mr. Robinson accused the government of failing to provide the necessary funds on time to carry out repairs to hundreds of schools damaged by Hurricane Melissa. 

 

"But there are many things which need to be done now, not later to help people recover. And people are simply not getting the help.... If you just look at the example of schools, of the 310 schools which were most effective, only 40 of them are going to be ready for next Monday. That is asymptomatic of the government's response to the hurricane. And that is why we're in the problems we're in right now, which forced the government to go back to the market to borrow $30 billion and they couldn't raise the money," he contended.