LEAD OR LEAVE!

Budget Debate Speech

by: Hon. John Briceño

Leader of the Opposition

Belmopan, Belize,

Thursday, 25 March 2010

All across this nation Belizeans are saying that there is something terribly wrong in our country.

All across the nation our people are saying that the government cannot deliver on their promises.

All across the nation Belizeans are saying this administration is failing to move our country forward.

If this government was something you bought off the shelf, Belizeans would be demanding a refund.

It is not difficult to see what’s wrong with this year’s Budget: it is one that offers no hope to the Belizean people; there in not a single initiative that will move the nation forward and once again it falls way short on those 21 pledges promised to Belizeans by this UDP administration.

With all the Prime Minister’s verbosity; he could not stop Belizeans–those who watched and listened to his two hour presentation–from coming to the obvious conclusion that this is the biggest tax ‘wap’ handed to the Belizean people since independence.

The saddest part of this is the fact that this could not have come at a worst time in our Nation’s development, a time when Belizeans are struggling at home to make ends meet; when they are being held hostage by the crime and violence that rule our streets; when the productive sector is fighting to keep its competitive edge; the private sector is at its most vulnerable; the middle class disappearing and when our people are getting poorer and poorer each day.

For Belizeans who were promised that this budget would mark the beginning of a recovery from the pain and suffering of the last year there is no silver lining.   For the single mother whose education bills continue to grow each school year, that promised $300 you hoped you would get this year will once again not be there for you.

For the poor in the north, in the villages along the Belize River Valley and those in the west of the country who were waiting in hope that NHI would come their way this year, you will just have to wait another year.

And for every Belizean whose food bill, light bill, water bill and house rent are higher, this budget from a government that promised people that they would “realize the possibilities,” offers neither relief nor recovery.

For the thousands who have lost their jobs, for those whose land were taken away, for the boledo vender who will soon have no means of income, there is nothing in this budget for you either.

For all those Belizeans farmers, and day workers, pensioners, school teachers and the few remaining sanitation workers whose cost of living has gone up by 30 percent and for all those who are struggling to make ends meet; there is nothing to hope for in this budget other than more pain and more sorrow with the compliments of Mr. Barrow.

Budget Framework

Mr. Speaker, like last year, the Prime Minister started his speech with a list of excuses for his government’s poor economic performance. And just as he did last year, the Prime Minister set the backdrop for his budget by saying that the world economy was in a crisis, caused by what he termed as financial chaos in industrialized economies.  This is not news; everyone knew that the world was in a recession and all across Europe, Latin America and the Caribbean, governments large and small alike braced for the worst. What they also did was bring together their brightest minds, they consulted with their producers, manufacturers, economists and other specialists so that together they could find a way to lessen the pain and make ready for the recovery.

But not this government Mr. Speaker, not this Prime Minister Mr. Speaker! At a time when more than ever our Government needed to talk to the experts, meet with those in the productive sector, listen to the Belizean people and plan for the recovery, they chose to forgo consulting with the Belizean people.

Of course we in Opposition know full well why there was no consultation by this administration. After failing once again to bring down the cost of living, after failing to keep our cities and towns clean, after failing to grasp control of the crime situation, after failing to deliver on their promise of cheaper utilities, this government could not face suffering Belizeans.  They knew only too well that this time the people would not accept the same lame excuses and they know that two floods and volatility in the price of oil is no consolation for the people’s pain.

Under the PUP administration there were 4 hurricanes in 5 years, the price of oil went so high it hit $130 US per barrel; there was a major war, terrorists were using planes to blow up buildings in New York and bombing trains in Europe. The financial markets were crashing all over the world and through all this we doubled the Belizean economy from 1 billion to over two billion dollars. We created jobs and for sure Belizeans were better off than they are today.

In his presentation, the Prime Minister told us about all those things he had no control over, however, what he didn’t tell us in his speech was why he reneged on taking off that $1 tax on fuel once the price of fuel jumped $7, for sure he had control over that.  How about the stimulus package?  Nowhere in his presentation did the Prime Minister mention about his stimulus package.

Last year he said that it was in the stimulus that we would “realize the possibilities, where we would “go for broke, it was Prometheus unbound.”  Of course for Belizeans this never happened.  It is at these moments that the words of his former colleague Hubert Elrington ring through, that famous quote that the man is “all glitter, no substance.”

And while he went on record and told us that the overall deficit would be $60 million, it was actually $81 million, 33 percent higher than projected. The Prime Minister also said he had the money to cover the deficit—he never did.

So the real backdrop for this year’s budget Mr. Speaker is: higher taxes, a higher cost of living, high interest rates, and low economic growth.  It will mean more Belizeans losing their job and more pain and suffering for the Belizean people.   Those are the facts and this Prime Minster cannot disguise it with fancy words and his vulgarity.

Recent Economic Developments

The UDP came to office in 2008 fully aware of what was going on in the world economy, and although they knew what was going on, they offered 21 unrealistic promises which we now know was just a pie in the sky.   By now all of us know why things are this “dread” in Belize.  This administration rode into Belmopan without a plan and more so without a clue about how to run a country.

So now we are in the grips of a major crisis and there is a serious lack of leadership.  The Prime Minister is out there on his own trying to work with a team that lacks the competence to give him the support he needs to put things right.  And the few who may have some idea of what is going on he can’t trust, and we all know why.

The true test for any government is not how well they do in the good times, but how they manage through the pain and the struggles.  When the PUP had to deal with hurricane Mitch then Keith, then Iris and later Chantal, we did what was necessary, we fixed what was broken, rebuilt what was torn down and we made it better.  This crowd still can’t figure out how to measure a bridge or fix a simple stretch of road, they can’t even fix potholes.

When the economic crisis started to affect us the Prime Minister changed his reading list to include a few economics books, he talked about Keynesian economics and said we would spend our way out of the problem.  Willing to give the government a chance, Belizeans waited for this spending to commence, but it never really did and government came up short on many of the very things he said would stimulate the Belizean economy.

Remember the solid waste management programme?  How about the tourism project, and how about the fixing of streets in Belize City?  By his own admission the Prime Minister said the problem his government faces is one of capacity.  He said: “some of the Cap III under-spending for the year just ending is a clear result of capacity constraints locally that must be corrected.”  This is nothing new for this administration, I want to remind the Prime Minister that some of the very projects he is putting forward in his 2010-2011 budget are the same ones he presented in his first budget back in July of 2008, projects like the Kendall Bridge, and the completion of the Placencia Road and the solid waste project, these were all a part of “realizing the possibilities,” then in 2009 they were supposed to help us “overcoming the challenges pursuing the opportunities,” and once again they are back with “recovery today, prosperity tomorrow.” Three UDP Budgets in a row and the same list of incomplete projects.  This is why we say this government lacks the competence to get the job done.  Once again Mr. Speaker we are reminded of Hubert Elrington’s other famous quote that “this crowd will land us right on the reef.”

Budget Performance in 2009/2010

Each time the Prime Minister gets an opportunity he likes to run out and blame everything on the past administration.  One of the issues he loves to hurl at his predecessors is the issue of the super bond.  He calls it the “dreaded super bond.”   Well let me say this, the Superbond was not the problem, it was the solution to a problem and what it did was to allow government, including this UDP Government, to manage our debt.  It is allowing us to spread out payments over a longer period of time so that we can meet our payments and not have to default.   Mr. Speaker, last year the government made payment in respect of the Superbond in the amount of $48 million that was actually 6 percent of the Government’s total spending last year.

This year, the government will have to pay $65 million towards the Superbond that will amount to 8 percent of government expenditure for 2010.  This is what the Prime Minister is calling “onerous.”  But I continue to wonder Mr. Speaker, if the Prime Minister believes that what was done with respect to the Superbond under the PUP was so bad, then why hasn’t he gone out and renegotiated the package?  Why did he not dispatch his advisors to New York to renegotiate?  Perhaps it is because they can do no better.  In fact looking at what was passed in this House last week some are saying the Prime Minister has created his own super bond, only this time with the savings of the Belizean people.

Let’s look at revenue performance. Lousy, Mr. Speaker!  The Prime Minister in his budget speech said revenues fell below budget expectation by 10.2 percent.    He attributes this to shortfalls in both tax revenue and nontax revenue.  But here is the real mind-numbing thing Mr. Speaker, the Prime Minster expects to collect more money in taxes in the coming year, a year he himself declared will be worse than this year.

We were wondering how this will work if under current conditions Belizeans are buying less? Perhaps this economic policy will return us to the mid 90’s when Belizeans would go in greater numbers to Chetumal or Melchor in an effort to stretch their dollar.

Last year the Barrow Administration approved about $170 million for Capital expenditure. In introducing his plan the Prime Minister said: “this is where we enshrine the luster of a comprehensive, progressive and people-centered UDP development agenda.” It was in these projects that we would “Overcome the Challenges and Pursue Opportunities.” This was the “planned step-up in Capital Spending,” his version of a “Stimulus” Package.  This included $30 million in municipal streets and drains, $4 million for Belize City Streets, $6 million for rehabilitation of feeder roads, streets, and drains, $10 million for solid waste management Project; $7 million for upgrading of the Western Highway, $3 million for permanent replacement bridge structure at Kendall and the list goes on.

But the true extent of the Cap II and III spending is that many of these projects never materialized, so that while the people continued to suffer because of a slumping economy, government left $43 million dollars that could have been used to create economic activity, untapped.

That is the consequence of the Barrow stimulus package; it never made it from imagining to realizing and as a result of that, the productive sector is today worse off and the Belizean economy is worse off than it was a year ago.

Budget Proposals for 2010/2011

Turning now to the 2010/2011 budget, I want to begin by supporting the government’s proposal to spend $10 million helping the poor and the marginalized.  I also want to lend support to the government for its decision to relieve 3,000 Belizeans who earn between $19,000 and $24, 000 from paying taxes.  As I said before, any relief we give to the Belizean people is welcomed by those of us on this side of the House.

Mr. Speaker there is not a person on this side of the House who would not want a budget that would result in prosperity for the Belizean people.  We love this country, so when we stand here we are not only doing so in fulfillment of our electoral mandate, but also out of our love for Belize and from a sincere desire to move this nation forward.

Over the past two years, we in the opposition have stepped forward and offered a number of suggestions, on issues from crime to the economy, we made recommendations on managing our local governments and we have actively engaged with government on issues involving foreign policy.  Each time we have done so, our recommendations were met with insults and condemnation, except for the rare occasion when the Prime Minister would give consideration on an amendment to a legislative issue.

Of course we will not abandon our oath to the Belizean people, nor will we flinch with respect to our commitment to Belize, even in the midst of insults and personal attacks, the PUP will stand up and speak for those who are not able to speak for themselves.

And so on behalf of the quiet masses I say that the People’s United Party unequivocally rejects the proposal by the Government for a 25 percent increase in GST.  We reject any call for the introduction of any new tax which will result in added and undue hardship on the Belizean people.

Mr. Speaker we heard the Prime Minster talk about his tax relief, I hope that in his speech it was a genuine mistake and not some trick that he is playing on the Belizean people when he said that anyone earning $500 per week will not pay income taxes, for if the threshold is $24,000 then indeed someone earning $500 weekly will be paying income tax.  The annual salary for someone earning $500 weekly is $26,000.  I trust someone on the government’s side will correct this.

When a government really cares for the people they do everything possible to avoid raising taxes, they cut government spending, NOT government jobs, stimulate the productive sector, and they do all possible to encourage foreign investments.

This is what I would do if we were the government, instead of quarrelling with the productive sector, I would work with them.  Instead of quarrelling with the utility companies I would encourage them to find ways to work with us to ease the burdens on those in the productive sector and the poor.  We would be looking for new markets to sell our tourism product instead of creating division by making inappropriate racial comments.

And we would go as far as we need to go to ease the burdens on the poor.

More specifically, with the implementation of the Partial Scope agreement we would have given priority to the opening of the Export Processing Zone in Benque Viejo.

To create jobs and prepare for the recovery we would invest in new information and communication technologies to attract new industries and support the expansion of existing ICT based businesses.  We would cut taxes, increase capital investments and make affordable credit to the productive sector.

Now Mr. Speaker, we are all happy to hear that import duty will be removed from cereals, but we would have preferred that the tax relief on items like luncheon meat and potted meat be given to products with better nutritional content.

While we have nothing against the importers of Dak pork luncheon meat, we have to note that this is a product high in salt and carries three kinds of sodium, sodium triphosphate, sodium ascorbate and sodium nitrite. This product also carries starch.  Armor Potted meat contains 620 milligrams of sodium, 9 grams of fat of which 2.5 grams is saturated fat and 20 percent of this is cholesterol.

When you consider these products in the context of healthy living, whatever Belizeans gain today from the removal of duty and GST from these products could very well be lost tomorrow when we continue to have more of our children and young people diagnosed with diabetes and hypertension.   The very ingredients I mentioned earlier add to these kinds of complications and while we are getting relief to buy these products that are making us sick, the cost of the very medicine we use to help Belizeans suffering from diabetes and hypertension will see no relief from GST, in fact these very products will see a rise in GST by 25 percent.

On April 1, 2010, metroprol, a drug used for patients suffering from hypertension will go up in price, metformin used by diabetic patients will go up in price, lanoxin used for patients with heart problems will go up come April 1^st and Lipitor a drug used to lower your cholesterol will also go up dramatically on all fools day.  Need I remind this honourable house that sugar and high blood pressure are the two leading causes of morbidity and mortality in Belize?

We have to stop looking at things in isolation and see them all as a part of a bigger picture.  We cannot be banging the table in approval of 10 million dollars in relief when at the same time we are sucking $110 million from the poor.

The hypocrisy of all this Mr. Speaker is that this is the same Prime Minister who got up in this house just three years ago and decried the collection of $21 million in additional taxes, calling it  a “monster” and going further to say that we were squeezing this from Belizeans with “ already empty pockets.” Well, after squeezing $30 million in fuel taxes alone in 2009, he intends to squeeze an additional $110 million from these already “empty pockets.” SHAME!

So the Prime Minister, in good conscience, should not be asking Belizeans to bear the additional burden of $110 million dollars in taxes, when his government shows no sign of making the slightest sacrifice and instead is increasing its operating expenses. This year he is increasing the budget for the Foreign Ministry by another $900,000. Since the UDP took office they have increased spending in the Foreign Ministry from 10 million to 13 million dollars. They are also increasing spending in the Ministry of Tourism by another half a million dollars on administration alone.

We need to lead by example and stop wasting government’s money on fancy vehicles and the like.  Since this administration came to office they have increased government spending by $123 million in recurrent expenditure.   This year, which is supposed to be the worst ever, they intend to increase recurrent expenditure by another $32 million.  And of this $32 million, he is contemplating putting $3 million on what he terms a “place holder” what he calls a modest improved incentive he is determined to give to our teachers and public officers. What would this contemplation amount to? Is this the 30 percent cost of living adjustment that the teachers were marching for?  It cannot be! This incentive, “if” materialized, would amount to 8 cents a day for each teacher or public officer.

So when the Prime Minster talks about big government as a practical imperative, this is just fancy speak for tax and spend.

After looking at this budget, we respectfully submit that indeed the UDP subscribes to an “ism”  which can only be described in the words of the Calyposnian Lord Laro as “sufferism”  For this is what this budget will do the Belizean people.

Conclusion

Mr. Speaker we on this side concluded our consultation with the Belizean people on Tuesday.  Whether we were listening to business executives in the board room or to the man on the street, the message was the same.  We are in the worst of times.  In such times everyone looks to their leaders for hope and for direction.

The Prime Minister, in his budget is promising recovery now and prosperity tomorrow. For a people already, battered, broken and bruised, tomorrow’s prosperity is just too late.

For the people who must bear the brunt of the suffering—the poor, the government must be compassionate and show that they care.   For those in the middle they must inspire confidence.

From those at the top they must demand sacrifice.  I believe in the strength and good will of the Belizean people. Likewise, I believe that if we effectively support the productive sector the Belizean economy will grow.

I know that Belizeans are prepared to work harder if it will mean success, prosperity and development.  I believe that our people are prepared to do their part.  The time has come for the Prime Minister and his government to stop the quarrelling and start to work so that they can deliver on their promise to the Belizean people.

If we are to develop this nation, government must encourage job creation, make our communities safe, provide opportunities for our young people, provide adequate health care and they must grow the Belizean economy.

Mr. Speaker it is time for the UDP to lead or leave.  We on this side say it is time for the PUP.    Thank you.