‘Roll it back’

‘Roll it back’

PNP issues another call for salary increases for politicians be withdrawn

BY BRITTNY HUTCHINSON Observer staff reporter hutchinsonb@jamaicaobserver.com

OPPOSITION Leader Mark Golding is doubling down on his call for the reversal of the massive salary increases to the political directorate, noting that is irrational given Jamaica’s economy and widespread disapproval.

Golding, who was addressing a People’s National Party’s (PNP) press conference on Wednesday, stressed that the pay hike is unconscionable in Jamaica and is out of whack with the political directorate in other countries.

“I repeat the call for this entire salary package for the political directorate to be rolled back, to be discontinued, and for the matter to be considered afresh by an independent panel,” he said at the press conference held at the PNP headquarters.

He said the independent panel should be able to guarantee equity across the public sector, and ensure that the salaries determined are consistent with Jamaica’s economic performance.

“This is a watershed moment for our country. Is the Government led by Andrew Holness going to retain this massive increase for the political directorate in the face of widespread dissatisfaction and opposition, given where Jamaica is now and how our people are suffering?” he asked.

In the meantime, Golding reiterated his pledge to give back 80 per cent of the salary increase he will receive as part of the Government’s compensation review for the public sector, until the salary increases are rolled back.

“If it is not rolled back and I received the increase they have allocated to me, without any consultation with me or any other member of the Opposition about this matter, I would be retaining only the minimum increase that our public servants were rewarded of 20 per cent — and anything in excess of that I would be redirecting to worthy causes. I will stick by that until this matter is resolved,” he said.

Added PNP General Secretary Dr Dayton Campbell: “Looking at what the savings would be for next year, if they pegged the ministers’ salary to where they have put all of [the] other public sector workers, and just for 2024 alone, the country would save $200 million. That’s the difference that would happen if they adjust the salaries and not put it at the higher end,” said Campbell.

“If it is that you intend to put accountability measures in place to judge your ministers, how can you start them at the highest point? It simply means that there was no plan in place to have performance-based pay for ministers because you already started them at the highest point,” added Campbell.

On Monday, Prime Minister Andrew Holness said he will not accept the salary increase granted to him under the public sector compensation review, stating that as leader of the country he has a duty to show solidarity with Jamaicans who are experiencing economic hardships.

Since the announcement about pay hikes in Parliament last week there has been an upheaval about the adjustments, with several protests staged by Jamaicans who have been expressing disapproval.

Opposition Leader repeats call for impeachment legislation for MPs

Opposition Leader repeats call for impeachment legislation for MPs

By Racquel Porter

Opposition Leader Mark Golding is calling for Prime Minister Andrew Holness to revise the performance evaluation mechanism for Members of Parliament, saying as it lacks key elements that will make it more effective.

Speaking at a press conference on Wednesday, Mr. Golding argued that while the party is not objecting to the measures announced by Mr. Holness on Monday, he feels that some critical mechanisms, including the tabling of the impeachment legislation, have been overlooked.

Mr. Golding said he tabled the impeachment legislation as a constitutional amendment in Parliament two years ago.

But he claimed it was essentially blocked by the government. 

“I’m calling on the government, again, to refer to a joint select committee so that the wider society can play a role in finalising that legislation and then it can be passed into law so that parliamentarians who behave in a manner which is offensive and inconsistent with the status and requirements of their office can be accountable for that,” he declared. 

Mr. Golding said the PNP would also be interested in the development of recall legislation that would allow the constituents to petition for the recall of a Member of Parliament.

The PNP leader argued that the petition would trigger a process that could result in an MP demitting office prior to the next general election. 

“These are mechanisms which exist elsewhere and which would help to ensure accountability for political representatives,” he suggested. 

WATCH: Golding responds to Holness salary announcement

WATCH: Golding responds to Holness salary announcement

Opposition Leader Mark Golding on Tuesday responded to Prime Minister Andrew Holness’ announcement that he will be giving up his massive salary increase under the controversial compensation review that has seen members of the political directorate receive huge pay hikes, by more than 200 per cent in some instances.

Following public outcry, Holness announced at a press conference Tuesday evening that he will forego his salary increase that would have seen his pay balloon to $28.6 million in April 2024.

However, Golding has dismissed Holness’ move as merely an attempt “to try and take pressure off himself”, questioning whether the prime minister even has the authority to exclude his office from the pay hike.

“He was feeling the pressure and belatedly tried to take pressure off himself. I don’t know how he can give an instruction that he is not to be paid when the Cabinet has already made a determination as to what the salary levels are, including for the prime minister,” Golding said, adding “I am not sure where his authority to do that lies.”

Last Friday, Opposition Leader Mark Golding announced that he would be giving up 80 per cent of his 240 per cent salary increase that would have seen his pay jump to more than $25 million by next April, to charitable causes.

“I have no power to stop them putting that money in my salary but I have indicated from last week that I am not comfortable with it without these issues being resolved, and I intend to do what I have announced,” Golding said.

In the meantime, Golding repeated his call for the appointment of an independent panel to review the salaries of ministers and members of parliament.

Golding wants 40% increase in income tax threshold

Golding wants 40% increase in income tax threshold

Opposition Leader Mark Golding has stated that Jamaica’s income tax threshold should be increased by about 40 per cent to match the present realities of the country’s working-class population.

Addressing a press conference at the People’s National Party (PNP) headquarters on Wednesday, Golding noted that the current income tax threshold of $1.5 million has not been adjusted since 2016.

“We would have to look at an inflation adjustment. In other words, we would have to look at the increase in the cost of living over the period, and adjust it by a similar percentage. That would be the normal way in which one would deal with these matters, and it would be at least 40 per cent,” said Golding.

“We have had over 40 per cent inflation. It needs to be significantly increased to give the working class a break,” Golding added. “There is no point having a threshold which is out of whack with where the cost of living has moved to, and that means that people are earning less than they ought to be earning.”

The Opposition Leader made the declaration amid public outcry over the increases for members of the political directorate. Prime Minister Andrew Holness announced earlier this week that he would be declining his own salary increase, which would have seen his pay rise from $9.16 million to $28.5 million by April 1, 2024.

PNP General Secretary Dayton Campbell declared that the only acceptable action for Holness to take is to retract the increases for all the members of the political directorate, including members of the Opposition.

-Christopher Thomas

Golding scorns Clarke’s ‘no new taxes’ boast

Opposition Leader Mark Golding says the finance minister’s heralding of “no new taxes” in his opening Budget Debate presentation last week rang hollow, noting that over fiscal years 2021-2022 and 2022-2023, the Government raked in an additional $208 billion in taxes or an overall 34 per cent increase over what was projected.

“The massive increase in the amount of taxes collected from the people over the past two years brings to light just how hollow is the refrain of ‘no new taxes’ that was bellowed in this House, to the predictable but fundamentally empty beating of tables,” Golding said.

Golding argued that the 34 per cent increase in taxes collected over the past two fiscal years is significantly greater than the accumulated inflation over that two-year period, which is projected to be 12.3 per cent.

“So the taxes a bite the people and a suck out dem blood,” Golding charged.

“It comes in a period where people’s living standards are being ravaged by the cost-of-living increases,” he said.

The Government fiscal policy paper points to $766 billion in taxes that will be collected from Jamaicans this fiscal year.

This represents $150 billion – or over 24 per cent – more taxes than the $616 billion the Government collected in financial year 2021-2022. It is also $95 billion more than the $671 billion in taxes originally budgeted to be collected this fiscal year.

Golding said that the Government is projecting to collect $824 billion in taxes in the upcoming 2023-24 fiscal year. That is an increase in tax collections of over 34 per cent over the two fiscal years from April 2022 to March 2024.

“And these massive increases in taxes weren’t limited to the last two years, but if we look at the last seven fiscal years, the tax take has increased from 24.4 per cent of gross domestic product (GDP) to 28.2 per cent of GDP, placing Jamaica among the highest taxed countries in the world,” charged the opposition leader as he made his contribution to the Budget Debate in the House of Representatives on Tuesday.

Giving a further breakdown of the taxes extracted from an individual since the Holness administration took the reins of Government in 2016, Golding said that the tax take from every Jamaican (15 years and older) has increased from $197,000 in 2015-16 to $365,000 in 2022-23, an increase of 85 per cent.

“This JLP (Jamaica Labour Party) administration is now extracting an additional $168,000 from the pockets of every Jamaican. Then they come with the samfie statement ‘bout no new taxes,” he added.

With the majority of taxes locally collected indirectly, Golding said that the poor and lower-income earners bear the brunt of it in paying the general consumption tax on purchases, which is projected to increase by 31 per cent, or $156 billion, in the new financial year.

Golding also took Finance and the Public Service Minister Dr Nigel Clarke to task for apparently ignoring his suggestion to cap the ad valorem special consumption tax on gas this fiscal year. The opposition leader argued that this would have given motorists, transport operators and electricity consumers a break. He said the tax was based on an average projected world oil price of US$67.50 for the year.

He explained that the ad valorem gas tax is a percentage of the price of gas and other petroleum products, so the higher the oil price, the higher the amount of tax charged for each litre of gas.

“The mechanism I proposed was to cap the tax at the budgeted oil price of US$67.50, so that the people would not suffer any additional tax if and when the oil price went above US$67.50, and the fiscal targets for the year would not be affected,” said Golding.

He further added that he had drafted the order to cap the gas tax and delivered the document to the Ministry of Finance.

“I never received a reply, and never heard a word from the minister on the gas tax cap,” he said.

Golding said that the average oil price over this fiscal year has been above US$90.00, and the Government has benefited from billions of dollars of gas tax by refusing to cap the tax at the budgeted price of US$67.50.

The opposition leader said that the special consumption tax on imports for the first nine months of the year was J$7.8 billion or 18 per cent above budget. This, he said, was in line with his projection regarding the amounts consumers would have saved if the cap had been put in place.

“Well, since you didn’t listen last time and it has bitten everyone in their algorithms, please, for the sake of the Jamaican people, listen this time,” said Golding to Clarke.

edmond.campbell@gleanerjm.com