Whilst welcoming Mr. Goldingʼs belated recognition, for several reasons, the Opposition assesses his statement as inadequate as it fails to address fundamental questions about the countryʼs economy.  

The Opposition wishes to inform the country that the problem goes far beyond the potential difficulty in accessing loans from the international capital markets.  This Administration has an obligation to the Jamaican public to provide clear and immediate answers to legitimate concerns, including the following:

• (1) What are the specific precautionary actions to ensure that the global liquidity crunch does not spread to local institutions?

• (2) There were many warning signals even before the presentation of the Budget for FY 2008/09. What explanation can the Administration offer for the unrealistic set of assumptions on which the Budget and the macro-economic progamme were based?

• (3) What assurance does the country now have that greater realism and analytic rigour will be applied in assessing the present situation and in planning the countryʼs response? Specifically what are the new parameters within which the Administrationʼs economic programme is cast?

• (4) What are the factors which have guided the chopping of the Capital Budget to date? Whilst some priority areas have been starved for funds, other activities seem to face no constraint. Are these cuts permanent and, if so, what are the implications for economic activity and social stability?

• (5) What is the explanation for the steep increase in domestic interest rates and what is the additional cost to the budget?

• (6) What steps does the Administration intend to take to counter the downturn in private sector economic activity?

Once again, the Opposition calls on the Administration to facilitate a full debate in Parliament on the countryʼs economic status and readiness to meet the challenges brought about by both domestic and external conditions.

The Opposition also stands ready to work with the Administration in the national interest. However, this collaboration can only be achieved if there is a realistic appraisal of the problems facing the country, as opposed to superficial and empty statements from those who are entrusted to act on our behalf.

Omar Davies
Opposition Spokesperson on Finance & Planning