CLICO’s Noose Draws Tighter

Submitted by Bajan Truth

TWO WEEKS OF DISCLOSURE AND DEBATE and not a word from Thompson only comments on Families First. Not a  word to allay the  fears of those 2400 policy-holders, the number of  policies sold since Aug., 2009. Any vendor in the market selling without a license would have felt the long arm of the law, not CLICO, Thompson’s financier.  No discipline on Estwick, when a review of the security tape would assist in establishing the veracity of the claims.  If a yout had a firearm and assaulted a citizen in the same manner he would be before the courts. THESE WERE THE CLAIMS OF MOTTLEY AT THE EAGLE HALL BLP MEETING ON SUNDAY NIGHT. Is Thompson running scared, hiding out, or has Hartley Henry advised him to lay low until it blows over because his political  capital is such that he can disrespect Bajans so. Or has HH advised him to lay low until another situation can be created or used as a distraction?

Standing at political meetings is not my speed, especially these BLP meetings long before an election is called.  My thought was what was the point of that strategy until a supporter indicated to me, that if you can’t get media coverage what else do you do. I got there late and was quite surprised to see the crowd at Eagle Hall. Wow BLP in a fighting mood. I am not good at estimating but don’t let Hartley Henry fool you, it was a crowd, like what you would find at a political meeting in the swing of things. Watching crowd reaction I realised that it was not made up of only BLP’s but had a mix of ordinary Barbadians and DEMS. They are easily recognisable by the non-responsiveness to partisan shots.  But by far the most non-BLP’s were ordinary Barbadians, who seemed to be concerned and wanted to hear what had happened and  get the other side of the story. They had very strong reactions to the revelations made during the meeting.

Here’s what they got from Dale Marshall: He stepped outside of parliamentary privilege and called Estwick’s bluff, and stated  Estwick drew a gun on me’.

Here’s what they got from Mia Mottley :

The Utilities Raping Barbadian Consumers

First it was water, followed by electricity, based on recent reports Barbadians will suffer another increase in the telephone rate of $1.77 per pricing plan, whatever that means. The biggest of all ironies is the recognition that the Barbados Water Authority (BWA) is owned by government and not regulated by the Fair Training Commission (FTC). Cable & Wireless aka LIME and the Barbados Light & Power fall under the oversight of the FTC. In both cases the PEOPLE lose.

BU can join the esoteric debate by the academics and analysts to argue the merits of hiking utility rates at the hike of a recession. We have always been more comfortable using arguments rooted in commonsense.

Barbadians have had to pay by decree up 60% increase in the water rate. Most Barbadians given the value of water to maintaining our existence would have been persuaded to suffer the increase,  balanced by the argument the BWA was insolvent and in dire need of a overhaul. Prime Minister David Thompson told Barbadians in June 2009 that the increase in the water rate was necessary to ensure the BWA meets its mandate to deliver a quality water management infrastructure to Barbadians. Approaching one year the customer and other support services at the BWA remain abdominal. Minister Denis Lowe who is responsible for the BWA has been silent regarding progress in restructuring at that state body. Last week Barbadians were treated to the news that a consultant contracted by government will recommend the discontinuation of sucks/ pit toilets. Additionally current water zones may have to change.

Is this another case of the chickens coming home to ruse? It wasn’t too long ago when politicians Don Blackman and Trevor Prescod were defending the rights of squatters in the Belle. Other politicians have been known to put politics above the health of the nation by ignoring the growing problem of squatting in water zones.  A lack of leadership in our water management perhaps?

The Barbados Light & Power Rate Hearing Commences

Back in May 2009 we underscored the The Important Role Of The Intervenor At FTC Hearings as advocates for the PEOPLE. The fact they are not paid and are expected to engage corporate entities with significantly more resources makes the Intervenors heroes in our eyes.

The long awaited BL&P Hearings under the aegis of the Fair Trading Commission commences tomorrow (2009.10.07), from 9.30AM at the Lloyd Erskine Sandiford Centre.  The Hearing is expected to continue week-days until 2009.10.23.

The Intervenors are:

– Barbados Association of Retired Persons Inc.

– Barbados Small Business Association

– Barbados Association of Non-Governmental Organisations (BANGO)

– Barbados Consumers Research Organisation Inc.

– Dr. Roland R. Clarke.

– Mr. Errol Niles.

– Mr. Douglas Trotman.

– Canbar Technical Services Ltd.

– Sentinel Group Caribbean Inc.

BANGO has promised to record the hearings as is practicable and make available for the PEOPLE for following. We wish all of the Intervenors the very best. Many of us talk but few are forced to act.

Time-For-Lime To Deliver On The Promises

Submitted by Adrian Loveridge

It would really be difficult not to have noticed the various mission statements recently put out in the print and electronic media by Cable and Wireless or LIME, including ‘a better greener business’, ‘go green with us’ or ‘go paperless’.

Yet the latest ‘ads’ placed to get your new Directory today,17^th September, (well actually from 19^th September), makes absolutely no mention of taking your old directory to the collection point where LIME could have partnered with one of the recycling companies to dramatically reduce the number that will eventually go to the landfill.

While is perhaps too easy to knock the company for its huge declared profits, they could at least effectively implement some of these admirable objectives. I stumbled across one of their media releases dated 31^st October 2008, where among many other ‘promises made in this manifesto’ included ‘calls to LIME’s customer service centres will be answered within one minute’ and ‘no LIME customer will be without the ability to communicate, via at least one of LIME’s services, with their friends, family or colleagues, for more than one day’.

Economists And The Central Bank Report

Submitted by Looking Glass

Click to read 6 month review 2009

Given the plethora of utterances flooding the various media, if our survival depends on the understanding of the socio-economic dynamics of the country then we are in deep trouble. It would appear that we understand little about the country and less about how the real world spins. We appear to be lacking in ideas, have a blurred image of reality and terribly short on philosophical contemplation. Here Cave Hill comes into view.

The influx of 40,000 plus foreign residents, mainly European, radically alters the socio-economic dynamics but we don’t even have an up-to-date manpower study, which means a) that analyses based on the old study will likely be way off the mark, b) social science and marketing grads will know little about the country in which they will likely work.

I raised this issue on a couple of occasions in the past and was told that it is a “teaching institution.” True but even private institutions engage in ongoing research. Except for a handful of ISER papers there is a woeful absence of even descriptive data. And much of our history appears to focus around race and colonialism. Chances are few know anything about Drax Hall, Locust Hall, Fortesque, Holborn, Holland Bay or Jew Street. It says a lot when Cricket Management takes precedence over the socio-economic and psychological dynamics of the country. Would the other cricketing nations send personnel to us for training? The money would have been better spent on a manpower study and books for the library.

Barbadians Can’t Be This Stupid

Historically Barbados has been a most profitable market for LIME formerly Cable & Wireless. It should concern Barbadians how LIME has betrayed the willingness of Barbadian consumers to stupidly buy its high priced products and services over the years. It should concern Barbadians how the relevant regulatory agency, the Fair Trading Commission has ruled on policy which facilitates the perpetual raping of Barbadian consumers, namely the Price Cap Mechanism by LIME.

In the current economic downturn which has seen many of the small islands in the Caribbean scurrying to the International Monetary Fund, and despite super profits, LIME continues to send home Barbadians under the guise of a restructure. A company has the right to act in the interest of its shareholder, it is acknowledged most companies recognize it has a social investment obligation. There is no commercial enterprise which can profitably exist in a market which collapses i.e.high unemployment.

It is time for stupid Barbadians to demonstrate that the investment in free education which previous governments have supported was not a wasted effort. The most profitable revenue centre of LIME is the revenues it generates from long distance calling. One way Barbadians can protest the inhumane management practices at LIME is to access the many alternatives available to facilitate long distance calling at super low prices.

Dr.Robinson’s Presentation Concerning Credit Rating Agencies

Submitted by Dr.Justin Robinson

Click on the image to view the well received presentation delivered by Dr. Justin Robinson at the 5th anniversary of Caribbean Money Market operating in Barbados – Power Point application required.

Dr. Justin Robinson is Head of the Department of Management Studies at the UWI-Cave Hill campus. His research interests include corporate financial management, derivatives, investments, risk management and financial market efficiency, and he has published on these subjects in a number of international journals.

Corrupt Officials And Politicians

Submitted by BU family member ROK

Former Head of Antigua's Financial Services Regulatory Commission

I see in the news today a call by the USA for Leroy King, The CEO of Antigua and Barbuda’s Financial Services Regulatory Commission, to be held pending an extradition process. The first question that comes to mind is whether we now have to depend on the US to clean up our corruption acts in the Caribbean? Of course, the way I have seen corruption work, there is always a politician in the wings that is shielded when the shit hits the fan.

The best clue is when you see decisions being made that are bizarre. My biggest fear is all the talk about attracting foreign investment. Then we complain of the changing landscape and usually when we attract this kind of foreign investment there is always corruption; for example, to get decision through to facilitate the transfer of money. People in the know buy up properties and get windfall profits; Town Planning or some other department makes a decision to give permission or the OK for something which runs counter to expectation.

Then when these acts are done, we hear speeches in the media, for example, justifying foreign investment or information suddenly becomes available that was not available before but tweaked to justify some seeming irregularity. I think we have to learn to identify corruption, but it is not a question of finding a culprit to prosecute, although this would break the ice, but it is a question of people putting pressure to end arrangements when they run counter to all commonsense.

Marching To The Beat Of The Drum

Prime Minister David Thompson

A comment by an anonymous commenter to BU yesterday resonated for most of the day. The relevant excerpt: to date the land use policies of the Thompson administration and the Arthur administration are indistinguishable. I would dare say the immigration policies are also similar but for the amnesty period now in place. The feeble implementation of a physical development plan by the authorities in the last twenty years has seen a haphazard approach to land development in Barbados and sad to say remains a concern two years into the Thompson government. The fact of the matter is there is truth to the comment if interpreted in a dispassionate way.

The land policy of the former administration which has seen the West Coast of Barbados assaulted with all but a few windows to the sea remaining is well documented. The current government during the last election campaign made some noises about adopting a different approach to land development but so far can anyone say there has been a shift?

On the weekend at the official opening of the Sugar Cane Club Minister Richard Sealy was quoted in the nation newspaper as follows, Government has identified the north-west corridor of the island, as an area for greater tourism development. Sealy is confident tourism projects planned for the island’s north coast will increase the economic and tourism activity in that “northern corridor.” Emphasis on the North West corridor is instructive for two reasons 1) the South and West Coast corridors have already been bulldozed in the name of economic development by former governments and 2) Prime Minister David Thompson is on record that the Eastern Seaboard of Barbados is off-limits.

The Reference Interconnection Offer Oral Presentations Get On The Way

Tomorrow a very important consultation will take place. If we were to judge its importance by the lack of coverage provided by the local media,  the  Reference Interconnection Offer Oral Presentation may just be considered one of many routine events which will occur tomorrow in Barbados. For those Barbadians who are interested you should go to the Lloyd Erskine Sandiford Centre tomorrow Friday, June 19th 2009 between 10:00 a.m. and 1:30 p.m to support those Intervenors who will be presenting oral presentations. We are pleased to note that once again BU family members Chris Halsall and Roosevelt King (ROK) et al will perform in the role of Intervenor operating in the interest of the PEOPLE.

If we understand the objective of the hearing correctly the outcome of the process should eventually lead to an operationalization of a RIO policy to ensure  local competitive long distance providers – Sunbeach, Blue Communications, and TeleBarabdos who have been trying to purchase the required interconnecting circuits from the Cable & Wireless without success, even through they are clearly defined within the Policy is achieved.

BU would have addressed in an earlier blog some of the issues affecting its non-implementation of key aspects of the RIO as it relates to a standard offer for services which LIME must make available to any and all requesting competitive telephony carriers. Unfortunately, the previous versions lacked a definition for “Outgoing International Call Termination”. This meant that while a carrier could bring calls into Barbados, they were not allowed to take them out.

Barbados Water Authority: A Failed State Enterprise

Prime Minister David Thompson announced in his recent Financial Statement 2009 that water rates will be increased to Barbadians, possibly as soon as next month. Although the Prime Minister has given the assurance that any increase will be negligible, the  impact must be judged by government on how the increase will affect Barbadians who are below the poverty line and businesses that use water as a significant input to production, we would urge the government to thread with care on this matter.

The revelation by the Prime Minister has triggered a side-debate about  the BWA not falling under the oversight of the Fair Trading Commission (FTC), an institution which remains pregnant with promise to consumers well passed its gestation period.  It is our understanding that the current legislation prohibits the FTC from hearing complaints from government enterprises. Our source confirms that there is a move afoot to change the legislation.

BU understands the thinking and motive of the previous to shielding the BWA and by extension the people of Barbados from a privately run BWA. BU can also understand that oversight of the BWA by the political directorate would more readily feel the pressure to keep water rates down. The experience so far of the FTC and LIME, formerly Cable & Wireless has not been a rewarding one for Barbadian consumers. One shudders to think if the BWA were privatized where would the water rate settle.

The Director Of Public Prosecutions, Director Of Finance, Public Accounts Committee ALL Accused Of Not Prosecuting Malfeasance In The Civil Service By Auditor General

Auditor General Leigh Trotman/Nation Newspaper

It is refreshing to read Nation journalist Wade Gibbons exposing the Auditors General Report. Perennially, just like the 11-Plus Examination the public engages in the debate about the reported irregularities inflicted by the the various government departments on the taxpayers of Barbados. What will make this year any different is the 64 thousand dollar question.

Just last week BU blogged about a few of the eye-raising findings delivered by Auditor General (AG) Leigh Trotman.  It is no secret that BU has been very critical of the office of the AG since coming into existence. While we might agree that the governance of Barbados through the years appears to have benefited from a good civil service, one startling observation has been its inability to visibly discipline itself. How many civil servants have been suspended, fired or any action taken as a result of gross incompetence exposed by the AG over the years?

Perhaps what has made the Auditor General’s Report 2008 so interesting is the fact that Nation journalist Wade Gibbons has encouraged AG Leigh Trotman to vent his frustration by making the following statement:

Maintaining Currency Stability In A Small Open Economy

If it is one thing the macro-economists agree on is that currencies will depreciate, there is nothing a government through its agents the Central Banks can do about it. Countries respond to the challenge of managing the volatility of depreciating currencies in mainly two ways, a free floating exchange rate e.g. the USA and the dollar, and secondly share a common currency e.g. the EC and the Euro or the OECS and the EC dollar. A similar option to sharing currencies is to adopt a major currency e.g. Barbados adopting the US dollar. The Barbados dollar has been pegged to the US dollar since 1975.

Key things to watch for with a pegged currency: the fortune of the country will rise and fall based on the performance of the country to which its currency is pegged and the country will have to manage and dedicate its monetary policy policy to supporting the exchange rate.

In a nutshell the Barbados dollar peg is primarily a tool to assist planners in both the private and public sectors of a small, open but narrow economy avoid the costs and speculative forces of exchange rate fluctuations. By hinging the Barbados dollar to a credible currency like the US dollar expectations of inflation are kept in check and fears of depreciation minimised.  These, in turn, are key factors for achieving sensible wage negotiation outcomes and uninterrupted flows of capital investment among the key considerations.

Sounds simple. But much depends on what external currencies drive import and export prices (i.e. who one’s main trading partners are); and what money domestic public debt is denominated in. By matching up the weightiest of these factors to the composition of the peg the aim is to eliminate – or mitigate so far as is possible – external currency impacts on the domestic economy. The peg has usefully served these goals since 1975.