Jamaica Gleaner
Published: Sunday | September 13, 2009
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Cock mouth and sticky hands

Lambert Brown

Oh what a tangled web we weave when first we chose to oppose just for the sake of opposing! Three years ago, then prime minister, Portia Simpson Miller decided to lend $1 billion from the National Insurance Fund (NIF) to various financial institutions for unlending at relatively low interest rates. The loan was intended to stimulate the growth of small businesses and the creation of jobs to reduce unemployment in Jamaica.

This decision was roundly condemned and attacked by then Opposition Leader Bruce Golding and others in the Jamaica Labour Party (JLP). Several other organisations and individuals, including public commentators and sections of the media, joined Golding's crusade. 'Surplus from pension funds should not be used as loans in the manner Mrs Simpson Miller had proposed' became their mantra. It was not important to them that new jobs would be created, and the new workers would become members of the National Insurance Scheme, increasing the pool of contributors.

While delivering his Budget speech on May 4, 2006, Golding said: "Let me issue a warning to the Government: keep your sticky hands off poor people's NIS money and Housing Trust money! Let me tell you, if you try to touch it, it a go be bangarang! Or let me tell them the law as per Mr Golding in language that they will understand: forget it!'

Bangarang was promised. No government was to lend money out of the NIF. In fact, speaking at a Generation 2000 (G2K) seminar on May 24, 2006, at the Knutsford Court Hotel in New Kingston, Golding went further. As the Gleaner of May 26, 2006, reported, the opposition leader told the gathering that it was illegal for the Government to take funds from the NIF because Section 39 (3) of the National Insurance Act stipulated that no payment could be made from the fund except for approved benefits, refund of contributions, and administrative expenses. Golding also indicated that the Jamaica Labour Party's legal team had been asked to examine whether it was legal for the Government to withdraw NIF surplus funds. The lawyers were to submit a formal report to the party, and the Opposition said it was willing to take the matter all the way to the Supreme Court.

why the change of course?

That was then when he was in opposition. The JLP 2007 election manifesto pledged to amend the existing legislation to require that the National Insurance Fund be invested in the best interest of the fund and not be available for use by the Government as it saw fit.

Well, we are in the present and he is the prime minister. What is the situation with loans from the National Insurance Fund? Why has Golding's government secretly changed course from his party's manifesto? Labour Minister Pearnel Charles recently laid on the table of Parliament the annual report of the Ministry of Labour, including the financial statements of the NIF. Those statements revealed that in the financial year 2007-2008, "loans receivables increased by $1.6 billion, or 213.5 per cent, from J$ 749.7 million to J$2.35 billion". If it was illegal in 2006 to borrow money from the NIF, how come Golding's government is presiding over the lending of $1.6 billion in the last financial year? Is this a case of the current government putting "sticky hands" on "poor people's NIS money"? Where is the chorus of public commentators and watchdogs of the media whose cacophony accompanied the irrationality of the then opposition? Is this a case of cock mouth kill cock? If it is right now for this Government to lend from the NIF, Portia Simpson Miller must be vindicated and the critics of 2006 owe her a profound apology.

History has a wonderful way of absolving those who act in a principled manner, putting national interest over narrow partisan advantage. In his Gleaner column of May 21, 2006, Edward Seaga, former prime minister and once leader of the JLP, while criticising the economic policies of the then government, made the point that "there is nothing wrong with the NHT funding houses for the very poor as it is already doing, nor the NIS funding a limited amount of welfare for the poor and vulnerable as may be determined by actuarial study".

bad politics

Today, I, too, feel absolved. I was a panellist at that May, 2006, G2K seminar, and made it clear as The Gleaner of May 25, 2006, reported: "I can't agree with the sticky-finger comments and the confrontation ... . It is bad politics." My trade-union colleagues also feel absolved. With the sweetest roll of his tongue, Golding poured scorn on the trade-unions leaders who had acted in an enlightened manner in supporting the loan from the NIF.

"To loud applause from the partisan crowd bussed to the seminar, Golding said, "I am particularly disappointed at the gleeful endorsement of some trade-union leaders and the silent acquiescence of others." At that time, Dwight Nelson, Ruddy Spencer and Pearnel Charles were trade-union leaders, not ministers of government. Maybe my trade-union colleagues have now convinced the prime minister of the folly of his criticism and unjustified opposition of a prudent move that was in the best interest of Jamaica. If this is the case, they need to go one step further and get Golding to tell the people of Jamaica to whom and for what purpose was the $1.6 billion of 'poor people's NIS money' loaned. Why was there no public announcement of these loans? Where is the transparency in public affairs that was promised?

In hindsight, I now know what Portia Simpson Miller meant when on May 25, 2006, while addressing the launch of the Private Sector Development Programme. She said: "It is obvious that people, when they want to understand, they understand, and when they want to misunderstand, they do so. And there are people who go to bed every night just praying for Portia to slip, and wake up every morning repeating the same prayer."

Creating misunderstanding appears to be good politics. It works, especially when your opponent springs from the wrong side of the social divide. Just ask Barack Obama.

Lambert Brown is president of the University and Allied Workers' Union and may be contacted at Labpoyh@yahoo.com. Feedback may also be sent to columns@gleanerjm.com.


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