Prime Minister Golding misses the mark in his National Broadcast!

It is now 8:13 pm Sunday, April 5, 2009. I have just listened to Prime Minister Golding deliver an approximate 11 minute national broadcast ostensibly setting the context and preparing the nation for the 2009-2010 Budget, whose estimates of expenditure are due to be laid at Parliament’s opening on Tuesday. Mr. Golding attempted to lecture us on Macro Economics 101. He was clear that it cannot be business as usual, and we should expect some expenditure cuts. He also spoke at length on the need to implement tax reforms now. I wait with baited breath hoping that huge tax increases are not sold as tax reforms!


The most interesting part of the broadcast was the Prime Minister volunteering to reduce his salary by 15% and asking all Members of Parliaments to do so. While I laud the prime Minister for giving up a portion of his salary, I must remind everyone that salary constitutes a relatively small portion of the cost to maintain the Prime Minister and his fellow Cabinet Ministers. Other costs include entire ministries, travelling etc. Instead, Mr. Golding should have announced a reduction of 15% in the number of Cabinet Ministers and consequently Ministries. There should also be a reduction in the number of State Ministers/Parliamentary Secretaries.


The Ministries would then include: 1) Office of the Prime Minister(OPM), Planning & Development; 2) Finance & Public Service; 3) Agriculture; 4) Education & Youth; 5) Labour and Social Security; 6) Health & Environment; 7) Foreign Affairs & Foreign Trade; 8) National Security; 9) Justice; 10) Industry, Commerce & Tourism; 11) Transport & Works; 12) Water & Housing; 13) Energy, Telecommunications & Mining; 14) Information, Culture, Sports & Entertainment. This would mean a reduction from 16 to 14 Ministries. Tourism is added to Industry and Commerce as the Jamaica Tourist Board is the main driver of that portfolio, not the Ministry. Energy can return to Mining & Telecommunications as these were separated to find a job for Minister Derrick Smith after returning from surgery. Only two Ministers without Portfolio are needed: 1 each for OPM and Finance. As the House Speaker is a Cabinet position, this then results in 17 members of the Cabinet, down from 20, which gives us the 15% reduction.


The reduction in Ministries and Cabinet Ministers would send a strong message through the Public Sector that it is not business as usual. Mr. Golding’s idea to take a 15% cut and hope that others will follow suit will have little impact on the overall public sector expenditure. The Prime Minister has clearly missed the mark!