THE PEOPLE'S National Party (PNP) will be going into retreat on January 10 to assess the limping economy, following persistent reports of a deepening fiscal crisis.
Speaking at a Gleaner Editors' Forum yesterday, general secretary Senator Burchell Whiteman said the party would be looking at what policy changes are required to turn the economy around.
Mr. Whiteman, who is also Minister of Information, was adamant that the economic model being pursued by the Patterson administration was not unworkable, but stressed that given the current public debate and concerns, the party felt that it could add to the dialogue on how to resolve the problems.
POLICY CHANGE AHEAD
"There is national debate and discussion around the issue and if there is a solution out there, then we can become a part of the discovery process," said the general secretary.
"Not even current policies are cast in stone," he added, in what could be read as a slight departure from the line carried in the past by the Government which has maintained that there would be no divergence from its 'low inflation' economic model.
The Government had narrowly defeated a motion in Parliament in January brought by the Opposition to consider what Opposition Leader Edward Seaga defined as a 'low inflation growth model' pegged to a programme of investment.
The Government, having successfully kept inflation at single digits for six years, is now facing the prospect of an 11 to 13 per cent inflation rate, as increased taxes, higher shelf prices, and the slide in the dollar in April and May take their toll on people's spending power.
Most recent figures published by the Government also show that the country now has a $24 billion deficit, having failed to maintain revenue targets.
And, the Cabinet just last week ordered a review on money owed to creditors by its agencies and ministries, which reports indicate amount to about $5 billion in just three of the 16 ministries alone.
Finance Minister Dr. Omar Davies has blamed a 61 per cent increase in public sector salaries in recent times for some of the fiscal problems. Two months ago, he ordered a hiring freeze when it became clear that the Government would soon be facing challenges paying its wage bill.The Forum was attended by Senator White-man, three of his deputy general secretaries: Maureen Webber, Linton Walters, Julian Robinson and Dr. Michael Whittingham.
PNP deputy general secretary, Colin Campbell, who has responsibility for communication, said the party would be devoting an entire day to the economy.
