Government must borrow to fix sluggish economy
Opposition Leader Ronnie Skelton has insisted that the government must seek loan funding if it wants to fix the territory’s sluggish economy and create meaningful, long-lasting employment for residents.
“We are encouraging the government to go out there and borrow the level of funding that is required to fix the infrastructure of this country,” Skelton said recently. “There’s no doubt about it, you hear the members in the districts complaining about the water problems. In spite of us having BiWater and with 2.2 million gallons of production a day … water still can’t get to the homes.”
Skelton added that the numerous infrastructural challenges facing the territory cannot be fixed overnight.
“There’s no doubt in our mind that people are hurting out there,” Skelton stated. “The cost of living is high and as an opposition and a government, we need to find means and ways to assist people who need food, who need assistance with paying house rent.”
Skelton’s comments were echoed by Third District Representative Julian Fraser who said the government must allow the opposition to help make changes to certain laws or introduce new ones that will allow the country to function since it’s currently at a standstill.
Fraser also proposed that the government borrow money from the Social Security fund and said the issue of borrowing money is a necessity and not rocket science.
“The money is available. The legislation which established the Social Security Board states that up to 30 per cent of the pension fund can be borrowed by government,” Fraser said. “And prior to the Protocol for Effective Financial Management – which was passed in April 2012 – the law was that the government can borrow Social Security money.”
Fraser also argued that the government does not have to consult the United Kingdom (UK) to take money from the Social Security fund.
“When you borrow something, you have to pay it back and the government has never defaulted on its debt,” Fraser added. “So government is a safe borrower.”
Premier Dr Natalio Wheatley affirmed earlier this year that his government must seek loan funding but suggested that he needed to first engage the UK government before doing so.
“[The current state of affairs] doesn’t reflect our economy and it doesn’t reflect what it is we want for ourselves,” the Premier said. “So we’re very much committed to borrowing, to improving our infrastructure and giving us that world-class infrastructure that our people deserve.”
The Premier noted at the time that the United Kingdom (UK) had already been engaged on the issue, and related that the prospect of moving outside the ratios of the BVI’s borrowing guidelines had also been broached.
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Got to get the slow one to admit the economy even sluggish first.
As I recall it was Ronnie who led the vote against the BVI taking advantage of the UK loan guarantee for $400m, post Irma.
That would have been by far the cheapest way for the BVI to borrow the sort of money required to fix our third world infrastructure.
We rejected that opportunity because the money had to be spent properly, and it interfered with the usual BVI way of dealing with public funds.
So, he we are with no money and even worse infrastructure. The place looks like a dustbin.
Who wants 30% of their social security fund lent to this government with no credible guarantor of repayment?
Show of hands, please?
Economy would not be sluggish if the government would not make it so hard and expensive for people, planes and boats to enter the BVI. People with deep pockets want to come visit and spend money but will only do so if its easy to enter and exit and the place is clean. Pretty easy ask honestly. Solve these few issues and they will come in droves….
Those that think differently and make all aspects of visiting our island a pain in the butt will see our islands continue to struggle.
Not sure who’ll lend you money when successive governments in a row have yet to even have public accounts audited in over a decade.
Ronnie ain’t build for this. He aint got the passion or the will. He just going through the motion. I will support Marlon as leader. This the Govt that rejected a low interest rate $300 mil guaranteed. Now Ronnie sit there saying this nonsense before he hold those men who sat and supported Foy with his refusal to accept the money accountable..
For God sake leave the people Social Security monies alone. Look at the amount of money Andrew took in 2021 and gave to his Friends and Families. look at the money they wasted up Jose Hill all in the name of affordable Homes.Look at the money they used to purchase properties all in the name of Investment. Whoever is in control of Social Security should be ashamed of themselves. We, the people need to know, Why hasn’t there been an increase in Social Security Benefits in Decades? And now you want to clean out the Kitty about Loan for Government? When will these people of this Country grow Balls and March against Governments after Governments Theifing the peoples’ money all in the name of Loans and Grants? Fraser tell whoever it concern to raise the Social Security Benefits for the Citizens and then and only then we can talk about Loan. All you incompetent Men and Women in Government want to do is make life harder for people instead to looking out for people. BVI needs a wake up call.
Even if loans were to be negotiated for and received, the country and its ill fated economy and infrastructure will remain as is. As, this current government will not use the money wisely. It will just disappear into thin air, in a private account some where..
The level of confidence with this government and its governance is negative zero.
The opposition should be advocating for the dissolving of the house and call for new elections.
The country needs real and effective honest leaders. This bunch is ineffective, unscrupulous, dishonorable and unprincipled. WE must do better than this.
Change is needed.
Not according to leading financial experts in UK, EU and USA. BVI is listed as a ‘risky borrower.’
Please leave social security money alone. the only how I would agree for that loan is after the Government pay back the 40 million dollars they took as a grant in 2021 and wasted and after they get all the buildings on Jose Hill sold. Everything for you politicians is an easy fix.
Who will lend to the Government? They don’t have recent audited accounts, or a credit rating, or proof of how the loan will be repaid! They have a huge and underfunded pension responsibility for Government retirees and a bloated and inefficient bureaucracy. Bottom line, they are not a bankable risk. Better to get their finances in order by cutting the bloated bureaucracy and spending money on infrastructure.
And let’s not forget that any BVIslander can get a job if they want one. There are jobs in the service sector galore!
You all better not touch a dime of my money that I have been paying into Social Security. Go and sell those set of ugly houses on
the hill.
The present debt ratio? Where is the CPI and RPI for the last 3,5,10 years?!?! Can we effectively advise more debt and continue not to receive VfM? Mega projects, mega risk. How would does the public feel about the pork projects and self-serving interests? The members of cabinet are ALL asleep and toeing the power trip limbo while the country spiral deeper into HELL each passing day.
Don’t be surprised if we see a telethon or GoFundMe for these running the circus soon.
…and yet the turkeys voted for Christmas again – ye reap what ye sow
Borrowing is not the answer, that only kicks the problem up the hill.
You need to restructure, you have $400mil in income, plenty of seed money to invest in projects that in turn will bring you more income. Simple upgrades to our infrastructure, beatification, concentrate on healthcare and education, all will heapbenifits back to the government,
Try it you might be surprised.. you will be the first!
This is bad. Existing government are incompetent and the best the opposition can do is suggest a loan in a very waffling fashion to fix the economy/ borrow from SSB? These people are crazy and incompetent. The opposition are the ppl that have acted in Government during the past 30 years and are responsible for where we are. Wow. We don’t have a sovereign fund to use in these times
Every time I hear the Government or opposition mention about borrowing it just makes me sad.
Now it seems they want to borrow the $300m from Social Security.
Do not agree with borrowing from Social Security. Those are funds established for seniors and retirees.
Moreover, why is it they never say/postulate or other, that, given the humongus, unlivable and rising cost of living, and the severe strain such has been placed upon the meager Social Security monthly payments for seniors and retirees, that Social Security benefits must be raised by at least 10% effective immediately..
Next, that all increments must be forthwith paid. This is beyond vexing now! Somebosy playing games with people. And, they silently c=and will be colecting their Greedy Bill check for a long time to come.
WE srill waiting on an epty promise to. come wit water in it.
Our coach said ( we gah money ) as he flex off HESELF with the FREE music fest jam ( if the first coach had plan to use the drug money to jump start the economy , IT BACKFIRED