Walwyn blasts new minimum wage
Opposition spokesperson on Financial Services and Macro-Economic Planning, Myron Walwyn, has expressed serious concerns that the recently increased minimum wage may raise the cost of living without corresponding measures to mitigate such effects.
He emphasised the need for a comprehensive economic strategy to accompany the wage increase.
“The increase cannot be done in isolation. If you give an increase of $2.50, what prevents the supermarket from then increasing their prices? In fact, their prices will have to increase because they also have employees who are working. This cost is going to affect their cost of operations, and that cost now has to be added to the cost of goods,” Walwyn said while speaking on ZBVI radio recently.
He also pointed out the cascading effect on the economy, arguing that the increase will, in fact, increase the cost of living if other measures are not implemented to stem the rising and high cost of living that people in the country are already experiencing.
Beyond supermarkets, Walwyn highlighted that the rental market and other sectors could face similar upward pressures on pricing, leaving residents with potentially higher expenses. “You’re giving with one hand and taking back with the next because the things that needed to be done were not done,” he said.
Expanding on his economic view, Walwyn expressed that a “global view of the economy including the minimum wage should have taken place so that when the increase is done and given, it results in more disposable income for people and certainly a better quality of life.”
In the meantime, Walwyn also focused on the plight of small businesses, renewing previous calls for proper funding of the National Business Bureau. He relayed concerns from local businesses about the increased burden, saying, “Small businesses have been saying we are having a difficult time. We have been advocating strongly for the National Business Bureau to be reinstated and funded.”
He added, “The reason why we’ve been asking for that is so that businesses can go on. Small businesses can get grants. Some can get loans and stabilise their businesses.”
Raising tax-exempt income threshold more effective
Walwyn also criticised the government’s fiscal priorities, suggesting that raising the tax-exempt income threshold could have been a more effective measure to boost disposable income without straining small enterprises.
“The government could have increased the ceiling to $20,000, and that way, you would have been able to give persons more disposable income who make under $20,000, but you would not have had that difficult burden on the businesses at this time,” he suggested.
Walwyn viewed the minimum wage increase, which aims to improve living standards, as a well-intentioned measure that might not achieve its desired outcomes without a broader economic strategy.
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I agree percent with Hon. Walwyn. The government is just flinging things to the wall to see what sticks. Cost of living going up from now. There were other things that could have been done to put more money in the pockets of employees that did not require breaking the employers backs.
As I would recall NDP only talked about raising minimum wage and were pretty weak too. All of these elected officials are trash no matter the party
Minimun waged employees will now be taxed from the 7th month on a higher amount. they knew exactly what they were doing. tax the poor!!!!
I’ve heard this arguments in the states many times. What keeps the supermarket from raising its wages is… competition. If one market increases their prices and another keeps theirs lower then most likely the one with the lower prices receive more customers forcing the one that raised it’d prices to try and be competitive with the other supermarket. Also a $8.50 minimum is good but probably still a bit low when you thinking long term. My home states minimum wage is 12.50. The average fast food job here pays 20.00.
And the fast food restaurants that pay $20 per hour are doing so because of a government mandate, and they cannot make a profit with such hight labor costs for an unskilled job. They are either laying people off or going out of business.
@ capitalist who loves the BVI, can you please point me out to the restaurant that pays $20.00 per hour cause we work at hospital saving lives and taking care of the sick and injured and we can’t see pass $15.00 per hour on a 12hr shift. Help
Why would you compare the US to the BVI. We are talking about 50 people entering a local business per day versus a possibility of 500 in the US. One can sustain, the other cannot.
The BVI economy is solely based off of tourism. How many customers is a restaurant may receive in a day is far off of what you would see in the states. So your saying a restaurant in road near the ferry has more or less traffic then a business in the suburbs of California. I compare the two because the BVI runs on the US dollar.
Competition works in a competitive market. BvI market is a monopoly. RITEWAY brings in 70% of the goods and so controls the market.
Dear Walwyn,
Maybe a compromise would be to lower your wages to $7.0 and rise everyone else to $7.00. Then all prices would come down for everyone. Especiaily the ridiculous lawyers fees.
“Raising tax-exempt income threshold more effective”
This is absolutely right. And there should be no tax exemption at all for those earning above a certain amount, say $150k. Do persons earning this much really need $10k a year tax free, saving them $800? Let them pay just a little more and those who can least afford it a little less.
I’ve never thought I would ever agree with something he says but this time I must admit that he is right.
I’ve never thought I was ever agreeing with him but this time he is correct
This man who has been arrested … is now against the poor
I don’t think he is against the poor. He might be against the stupid. Hint hint.
Okay. You have done your best to contribute to this very serious discussion. Now please exit so that grown folks could continue the dialogue. It is annoying to have simple and malicious minds in serious conversations. You really have nothing more to contribute?
Walwyn is correct and should be the minister of finance AKA the Premier. A vote for Walwyn is a vote for COMMON SENSE!!!!!
telling it like it is is the way to go , but your haters are too conceited to admit the facts , and the implosion in the NDP was caused hypocrites who was envio of your ability plus ( xenophobia ) was justifiable to use against you / nothing in those jokers mind was what was in the best interest for the country , so the ignorance & hypocrisy CONTINUES • AND cyo add insult to injury – THOSE WHO TRULY KNOWS WHAT YOU ARE BRINGING TO THE TABLE IS IN THE BEST INTEREST OF THE VOUNTRY , IS QUIET LIKE LAMBS . FEAR *MIGHT* BE A FACTOR , BUT NOT A FACT , BECAUSE THE 3 KILLERS OF US ADVANCING TO A HIGHER LEVEL OF INTEGRITY STILL EXISTS , AND THEY ARE ( IGNORANCE – HYPOCRISY & XENOPHOBIA ) so walwyn you got an uphill battle
Walwyn is correct! The Government doesn’t want to contribute anything, just TAKE TAKE TAKE! The Government could’ve simply increased the tax-exempt threshold and make adjustments to duties/port fees but NO, they do not want to lose anything, let’s put the burden on the businesses and the people instead. Welcome to $10 bread and $20 box of cereal!!
If you are paying your staff $6 an hour or less than $8.50 you should be ashamed of yourself.
This should not affect too many people. Even cleaners and manual workers are paid more than the new minimum wage.
the same politicians they in it for self benifits
What you and many others, including govt. fail to realize is that this does not only affect min wage earners. The person you are now paying $10 per hr wants $12 because the person making $6 now makes $8.50. Watch them regret this move big time!!!
Mr Walyne I trying to figure you out, you blast the cost of living and when government try to adjust the wages you find fault and reading your post government should have left it at $6.00 because you telling the supermarkets to increase their price because wages raise when in fact they increase their prices every week and what would you say has contributed to that Walyne instead of you lobbying for price control policy you trying to justify the supermarkets increase they robbing us every time we go to the counter. You claim to be for the people but you really it’s the opposite it will affect you as a business owner that doesn’t want to pay more in wages so you letting us know from now when anyone comes to eat at your establishment expect to pay more.
Someone made the comment that raising the minimum wage will just increase the cost of living. I think the more important thing to keep in mind is that the costs of living has already increased and those poor people stuck at $6/hr are just being given an opportunity to catch up.
Lord knows it will be a long time after this before they get another raise so lets throw them a life line and accept the consequences.
Walwyn is correct, but many of the comments here beating the drum in favor of this increase (or wishing it was larger) reflect the economic ignorance of too many people.
Why not make the minimu wage $50 an hour if you’re so convinced that a minimum wage is a good idea? If you believe in them as a construct, a minimum wage is for entry level or part-time workers – NOT for full-time workers. A minimum wage cannot be expected to sustain an adult lifestyle, and if your skill set is so limited that you cannot command a wage that will indeed sustain an adult lifestyle, therein lies the problem.
Also, this government squanders money that it collects from over-taxed small businesses (and the ridiculous number of paid holidays is another tax on business that nobody wants to discuss – but it’s a very real one).
@capitalist: you are correct that after emancipation we keep all the colonial costly structures that was paid for from our slave labor in cane and gotten fields under the whip, now it’s under tax of the poor we are paying for maintaining colonialism, all these stupid religious holidays base on white gods or all whites supremacists is ignorance, when you look at Puerto Rico the shopping malls are open on Sundays keeping up the stock market trading unlike stupid us, because while the white slave holder terrorist rested on Sundays and Saturday,his white bible only stated it gave rest to his horse and pets they loved, we were things and had to work till sun down every day,to bring wealth to white people, but now we adopted the privilege that the white people gave to their horse and pets and close our business and have our economy regulated by superstitious religious beliefs, so black people self regulate themselves with neocolonism, one day our young generation will remove all this crap.
The comments also reflect illiteracy and lack of basic understanding of how economies work.
“BuzzBVI”, you are so correct!
Did the representative STATE how he and those of the legal fraternity, will lower their costs, to 8 USD PER HOUR, for services rendered?
Did he also STATE, WHEN, Homeowners, and others of the accommodations industry, will lower rental rates, to reflect ALL apartments, villas, etc.,regardless of room and square footage, to 800 USD, PER MONTH, in rental fees?
Did the representative, all state, when the Medical Professionals, will lower their fee schedule, to 8 USD, per transaction, at each office, regardless of the level of care provided?
Did he also state, when the Grocers will lower food costs, to 8 USD, per item, at every store, regardless of item and weight incurred?
Did the representative, also state when the Construction industry, to include Masons, electricians, and other service providers, in the maintenance and care of homes, WHEN, will they lower their costs, to 8 USD, PER JOB rendered, regardless of the length of time spent on a given project?
Did the representative, also state, when the retail industry, hotel industry, car sales industries, will lower their costs to EIGHT USD, per night stayed; per item of clothing sold; per car sold- regardless of brand name/ and or costs per purchase of each item, required for business?
Did the representative, also state, WHEN, the lift industry- taxis, limousines, rental cars, et al., WILL lower their costs to 8 USD, per transaction, regardless of destination, or time spent, waiting for individual?
Ausar cannot list all services rendered in this country to place on this list, but y’all get the gist;
There has been no reduction in these services, since 2016, when the minimum wage moved to 6 USD, per hour,
THEREFORE, Ausar IS IN FULL AGREEMENT, with the wage increase in this country;
SHALL ALL SERVICES RENDERED, in this country, be reduced to 8 USD, per transaction, per item, hour, or per person, then AUSAR would be satisfied with a rescindment!
This is longest and most nonsensical post I have ever read. Why do we always have to get personal? What does lawyer fees and $8.50 salary increase have in common? Pure nonsense . Stick on the discussion and try to enrich it from talking fart.
“@Ausar”, my post is not personal!
Based on your statement, it is safe to conclude, YOU ARE, of the legal fraternity!
Why don’t you, “@Ausar”, state your profession, and when you plan to charge eight dollars, per person, per service?
This is all Ausar wants; That those who cry the most, about the wage increase START to work at similar wages, for professional services rendered..
And let all of us know, how well you were able to handle, daily living responsibilities!
FEEL,similarly, the same way, as the common man, about the town,feels!
And, if your living expenses were unable to be handled responsibly, then you should understand. WHY, 6 USD per hour, was not sufficient, and the minimum wage increase was warranted!
..That’s all..
..Nothing personal!
Ausar or whatever name you go by you should try to have a better understanding of how economies work before pretending to know. You have a demonstrated a severe lack of understanding.
So he is clearly saying that supermarkets is paying below $8.5. per hour
i would say $7.00 to be exact.
Increasing the tax exempt threshold would be a loss to government revenue but increasing the taxable income is a big bonus for the government.
We don’t need to worry because its only 3 -4 % of the working population working below $8.50 per hr.This ain no real increase. This is all games. What we need is an Increase in the Tax exemption amt for the bottom owners to supplement this minimal increase. Not for everyone.
You all are very confused! Increasing the min wage is an increase in wage across the board! The person now making $9 will want $12. The person now making $12 will want $15.
This decision should not be over the board. Meaning…people who earn tips or work on % of sales should not be included. They also make tips which brings their take home way more. This must be considered. Can’t just say ‘miminum wage’ is over the whole board. There goes restaurant prices for sure.
Reading and comprehension seems to be a major challenge for us in the BVI. My analysis of this article is that Walwyn wants the increase in wages to better benefit the recipients by government reducing the cost of living or prevent it from rising higher. This is not the same as him not in support of the increase. I agree with his analysis fully.
You see through the smoke screen of the wigged one ,who has a personal vendetta with walwyn – with Cindy – the governor and the UK , so we have to pity
the fool his overgrown EGO is in control of him , sadly being the premier eludes him , but message hasn’t registered in his brain as yet , so his in his own fantasy world
I believe he is correct,such methodology would enable more people to build , houses, operate a small business, pay for more stuff, and most of the money surround in this community. I could never be wrong. He knew it, but most person will be in a broke situation.
The high cost of living in the BVI is based on Greed. Supermarkets prices are so high because one owner is buying up restaurants and hotels and the other one is paying off their mortgage. Healthcare providers are putting up large buildings financed by the broke NHI since there is no price-control.
NHI has controlled the price to be higher than private insurance and allowed the one provider to be paid for anything he desires. This is why its called National His Insurance and he can be putting up all these big buildings, buying expensive cars, and properties.
Unfortunately as noble as this wage increase sounds it will cause an increase in cost in all service based goods in the economy across the board and further inflationary pressures on the cost of living. What increases the persons intended to benefit will get will be absorbed by inflationary cost of living increases and tax.
Well intentioned but ill conceived. In fact I take back “well intentioned” and replace with political gimmickery. As Walwyn alludes to this needed to be part of a menu of economic measures to broaden the safety net and make a meaningful difference to persons at the lower end of the employment market.
Based on the simplistic debates in our HOA we can understand why we are where we are at this point.
The long and short of this is that the BVI is a cowboy country when it comes to cost of living. Anything goes. Service providers can sporadically increase price on a whim and there are no laws or political will power to protect us from it. Neither of the two parties have worked in our favor while being the ruling government but they have awesome insights as opposition members. Where there is no vision the people will perish.
What will happen to people with no wages at all. Like those recently get fired from charter company in east end. And person who came after doing the same job have not been made redundant because of their nationality and ethnicity.
They need to go to labour department. Plain and simple.
Sometimes I wonder about Myron. Why would we not want people to earn more? it is scandalous that some businesses pay people $6 p/hour. How do you live here on that wage? But Myron wants to keep it the way it is in order to keep inflation in check. Trust me, he’s no economist (nor a lawyer).
luck with that, when one supermarket has paid an emloyee $0.13 as a wage increase. Now, how evil and exploitative is that?
The Hon Walwyn has a point, ie, the minimum wage will increase the already high cost of living. But not for the reason he expressed. It will because of the greedy, selfish business people as himself who are solely about profit and don’t give a rat’s ass about employees and their families.. Interestingly, every time there is a wage increase, ie, COLA, etc, businesses find some excuse for raising prices..