Dr Friday’s home-grown relief measures from global pressures

When Prime Minister Dr. Godwin Friday appeared on the same forum as the visiting IMF officials and promised home grown austerity measures it was met with derision in some quarters. It was thought that his speaking at the same press conference as the visitors was akin to giving their findings his approval, something few heads of government ever do- giving a visiting IMF team that platform. We waited to see what would constitute the promised home grown measures. Some of these measures are now being spelt out, though they are primarily to do with relief from cost-of-living pressures.

On Wednesday of this week the Prime Minister made a national address in front of the Administrative Complex, which houses several important offices including the Office of the Prime Minister, and the Ministries of Foreign Affairs and of Finance and Planning. Here he announced a 90-day emergency relief package aimed at combatting global inflation.

Faced with the current dire worldwide financial situation, Dr Friday is attempting to cushion the impact of rising fuel costs on the population. He announced a reduction on excise taxes and on the customs service charge on petroleum by 50 percent.

The latter has the effect of putting a cap on the prices of gasoline at the pump which would provide significant relief for motorists. At a time when most of the region has already seen the expected increases at the pump, Dr Friday is making his 6-month-old administration look good, especially to its most ardent supporters anxious for victories.

The new government had seemed to have gotten off to a rocky start with a series of missteps and obvious communication issues. This saw them recently appointing one of their campaign stalwarts Colin Graham in the role of Communications Director in the Office of the Prime Minister. Even the announcement of this national address was first called a press conference which was then hastily pulled in preference for the national address which offered more control over the messaging.

One major campaign promise of the New Democratic Party had been a reduction of the VINLEC fuel surcharge. The prime minister spoke to that issue on Wednesday 26, as he called on VINLEC to reduce this very unpopular charge. Obviously, a public declaration of what the utility’s policy-making Board is expected to work to have done; this is not merely a management issue. A reduction will be a winner for him and especially, with his base.

It would provide a welcome relief for businesses and households struggling to cope with the cost of living. The government intends to absorb roughly $1.90 per gallon of the oil market increases to stabilize local prices. This price control intervention also applies to electricity, cooking gas and basic imported goods which impact people everywhere.

The government also plans to institute a rollout of strategic tax reductions and waivers to keep the cost of essential groceries in check and help manage household budgets.

Throughout his address he placed a lot of emphasis on the impacts rising prices could have on households and small businesses so they can remain in operation and keep down cost to the population.

As a example of how his government sees itself in continuity mode he said he had held discussions through CARICOM with ALBA to secure stable energy arrangements. He saw the energy crisis as an opportunity to look toward renewable energy and regional energy security,and spoke of moving toward solar which is an opportunity being thrust upon us,but one which some in the population have already been making use of. In this era of increasing evidence of global warming, serious efforts towards sustainable, green energy will always be a positive move.

The government would also do well to create alliances in this area for energy generation. We also urge government to look towards encouraging the importation of hybrid and electric vehicles. It may be necessary therefore to offer incentives to importers of such automobiles. Our dependence on fossil fuels needs to be reduced greatly.

The general trust of Dr Friday’s national address must be commended as a step in the right direction, even as his government announces initiatives in the blue economy such as Minister Conroy Huggins speaking in relation to conch and lobster harvesting which are facing serious threats.

This three month series of initiatives is a step in the right direction which, if done right can begin to steer us on a good path that offers relief to the poor.