Jamaica Gleaner
Published: Sunday | December 20, 2009
Home : Commentary
EDITORIAL: No to disruptive protests
Mrs Portia Simpson Miller, the opposition leader, warned, ominously, that her People's National Party (PNP) has ruled nothing out with regard to its response to the $21.8 billion tax package that was announced last week by Finance Minister Audley Shaw. Disgruntled Jamaicans, she noted further, could very well engage in "spontaneous" protests.

We all, of course, understand the notion of spontaneity in the context of Jamaica's recent political history. It usually means that while the hands of the political parties may not be overtly engaged, they are, for those who notice, clearly discernible, providing material support as well as strategic and tactical direction.

A decade ago, when Mrs Simpson Miller's party formed the Government, in which she was a senior minister, they were in no doubt that the Jamaica Labour Party (JLP), despite half-hearted protestations to the contrary, was behind the organisation of the demonstrations and riots against a hike in petrol prices, from which the administration had to retreat humiliatingly. Those demonstrations, which halted commerce for several days and caused significant damage to infrastructure, cost the Jamaican economy dearly.

We suspect that there are many people in the PNP who would want to give the JLP, now just over two years in government, what they would consider a political payback. This newspaper, however, would advise the leadership of the opposition party to think clearly about its actions.

Disruptive protests might achieve the political end of humiliating the Golding administration, but would be of no value to the country, especially at a time of global uncertainty and the inability of the Jamaican economy to absorb further shocks.

dire economic circumstances

Our suggestion, therefore, is for a robust national debate - including in a revived House committee on taxation matters - on the efficacy of measures proposed by the administration. Indeed, the legislature's Christmas recess should be abandoned and Parliament reconvened to deal with this matter before the new tax measures are formally implemented on January 1.

Any such debate must be serious and mature, starting on the basis that Jamaica faces dire economic circumstances, including a fiscal crisis, and that there is an immediate need for cash to close the Government's financing gap. It has to be accepted that the problems are not due entirely to management and/or policy failures on the part of the current administration. It must be admitted that the global recession has played havoc with the Jamaican economy, already weak from decades of underperformance, including the long incumbency of Mrs Simpson Miller's party.

But it is not unreasonable to question, we believe, whether the tax measures proposed by Mr Shaw, which will equate to around two per cent of gross domestic product, represent the most creative method of achieving the administration's ends, or whether they represent the kind of compression that will drive the economy into a deeper slide. After all, these measures come after a tax package earlier in the year of a similar size.

Perhaps more important is the need to build national consensus around the recovery effort, for which, as this newspaper has long argued, Mr Golding must be the mobiliser-in-chief. The Opposition, however, contends, and many people agree, that Mr Shaw's package, especially the rise in the general consumption tax rate and the expansion of its reach, is largely regressive, letting off the hook those who can better afford to pay. These issues should be fully ventilated.

The opinions on this page, except for the above, do not necessarily reflect the views of The Gleaner. To respond to a Gleaner editorial, email us: editor@gleanerjm.com or fax: 922-6223. Responses should be no longer than 400 words. Not all responses will be published.

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