The Editor, Sir:

The Government, as reported in the Sunday Gleaner of April 5, would apparently like to make public-sector workers responsible for the fate of the 2009 Budget due to be presented in Parliament later this month. Government employees are being asked to show wage restraint, or even accept no pay increases at all this year, in addition to probable job losses.

This is quite a contrast to another article in the same newspaper, where the UNDP resident representative in Jamaica, Minh H. Pham, argues that there is 'a moral imperative not to short-change Jamaicans - especially our children - by not addressing the debt issue as an impediment to national development'. In focusing on the debt issue, rather than public-sector salaries, he asks: "How much can the country afford to pay back on its debt without hurting its chances for growth and development?"

Pham is not quite saying that the promised public-sector pay increases should go ahead as agreed. But he does suggest that it is the domestic holders of Jamaican public debt who should show restraint, as a matter of urgency. This group, even more than the trade unions, should be the main player in any social partnership agreement, since it is they who have been receiving the largest share of the Budget in recent years.

Ministry of Finance figures show that public sector salaries cost about $88 billion in 2007-2008, as against debt interest payments of some $101 billion.

Has the time not come to expect creditors of 'Jamaica plc' to do what other investors take for granted - that is, accept little or no dividend until their company is healthy. Or as Pham puts it 'a healthy debtor is a good client in the long run'.

Public-sector workers, we understand, may have to consider taking deferred salary payments in the form of bonds. So why not the holders of government debt? Reduce the interest rate payable to such creditors, as notable economist Jeffery Sachs also argued in a 2002 article titled 'Resolving the Debt Crisis in Low-Income Countries'.

Confidence

Short of repudiating the debt as an initial approach, this would offer some solace to investors, addressing the matter of confidence, also not forgotten by Pham. It would also not require amending our Constitution, which not surprisingly given its genesis in the colonial era (now superseded by neo-colonialism), has debt servicing taken automatically from the Budget monies, with no debate, and no questions asked.

Non-payment of taxes and their regressive nature in Jamaica is another issue ripe for comment.

I am, etc.,

PAUL WARD

Campaign for Global Justice (Jamaica)

pgward@cwjamaica.com

PO Box 43

Kingston 7