JLP vs PNP- This “little” issue of a referendum

A referendum was held in Jamaica  on 19 September 1961. Voters were asked "Should Jamaica remain in the Federation of the West Indies?" The result was 54.1% voting "no", resulting in the country leaving the federation and its dissolution in 1962. Voter turnout was 61.5%.

Let us place this discussion in context. Back in 1961, Bustamante opposed Federation as it appeared that T&T had too much leverage and Jamaica would be better off becoming Independent. Well we all know the result, that is why we became independent in 1962, even though Jamaica's first elections was held on December 12, 1944.  Federation failed then as the Caribbean nations were not on the same page, however Regional Integration is not to be dismissed because of the state of affairs then, which does not necessarily exist now. Fast-forward 54 years and our Opposition Leader is boasting that he is  “a Nationalist….who does not come from the school of those who chase after a fleeting and elusive dream called Integration.”

How bad really is integration, whether it be purely economic? The European Union, The North American Free Trade Agreement, Association of SouthEast Asian Nations, The North American Free Trade Agreement, Union of South American Nations are some examples currently in place.

We are too small to survive on our own and collaboration with like-minded states in the same geographical vicinity has the potential to strengthen our economic voice and position in the free world. Opportunities exist not only in the English-Speaking Caribbean but in our neighbouring Spanish, French and Dutch counterparts, whose market we are unable to penetrate thus contributing to the limiting of our growth and reach.

But I digress, so focusing  on the bone of contention currently is the Caribbean Court of Justice vs Privy Council as our final Court of Appeal, there is a lot of hulla-balloo whether a Referendum should be put to the pople. Reference is made to a covert agenda, and I am curious to know what then is the opposition’s agenda, as I am of the view that both sides need to come together and not push a partisan agenda just because one’s predeccesors promulgated a particular viewpoint. Times have changed, our ecomonic standing has changed, Jamaica needs a savior. That savior is not IMF, the people who are in positions of power need to think and act rationally and put the people first.

Should a referendum be put to the people? The PNP is not for it, and I wouldn’t expect them to be, in light of the last referendum where our past Premier Norman Manley stepped down after losing the not-so- long-after called elections. I believe they are wary of this precedent especially since we are so far into the election term and everyone on both sides of the fence are on their “P’s and Q’s” trying to solidify party votes.

The JLP on the other hand through a statement of their leader has trivialized the issue and has said that if it is to be considered, it should be put to the people. I wholeheartedly agree with putting it to the people but not the trivialization of the issue. A public-education campaign is not bad , educating the populace on the issues so that they can make an informed decision. But announcing a Grand Referendum is ludicrous if that step is not taken. The voters will simply vote along party lines, and we all know that the voter turnout which will not be representative of the true population, nor will it reflect the true wishes of the people.

To “referend” or not to “referend” is the question

Taxation or Extortion: Banking Charges and Taxes crippling the Ordinary Man

By Kymberli Whittaker

Effective June 1, 2014, a new tax will be imposed on all withdrawals from deposit-taking institutions through electronic banking, point of sale transactions (debit cards), cheques, banking hall transactions, ABMs, ATMs, ETMs and internet transfers. The only exception is internet transfers made by a person between his accounts in the same financial institution.

This move has been made in a context where Jamaicans have been pleading for relief from an unprecedented increase in Commercial Bank charges and fees. In an interim report to Parliament, the BOJ said fee income, not including fees for loan processing, now accounts for the larger percentage of total revenue for commercial banks.

For the nine-month period January 1, 2013 to September 30, the BOJ said total fee revenue stood at 19.5 per cent. Fee revenue was recorded at 16.6 per cent in 2012, 13.6 per cent in 2011, and 14.9 per cent in 2010.

The report, which was prepared for the Economy and Production Committee, indicates that the portion of income earned by commercial banks in relation to overhead expenses is the highest in six years. It further shows that in terms of cost recovery, fee income, excluding fees for loan processing, moved from 26.4 per cent in 2008 to 28.6 per cent last year.

It is evident that the commercial banks are looking to increase revenue and the government is looking to increase revenue all at the expense of the law abiding citizens. Banking is a business however where do we draw the line in what is acceptable?

This move to tax withdrawals will affect the group least protected by our Government, the middle class who bear the brunt of the financial burden of this country. This dwindling middle class who is already lawfully paying income tax and other sums which are diverted to mismanaged institutions in the name of attaining growth and stability. Money diverted to pay for roads with huge potholes, to pay exorbitant fees to the money making entities which have been divested by our government in the name of them making a profit, not breaking even.

The local think tank Caribbean Policy Research Institute (CaPRI) has stated that Jamaicans are not paying an unreasonable amount for bank fees, despite the significant rise in fees. In a report following a recently -concluded study, CaPRI said, "When viewed holistically, it is clear that for most of the commonly charged fees, Jamaican banks compare favourably with the banks sampled from other countries."

I assure CaPRI that the dynamics of other countries in terms of the financial spending power of their citizens are not comparable with ours, so referencing  countries, such as Barbados is not an appropriate measuring stick. Their minimum wage can go much further than ours, as I lived in that country myself for two years.

Mr Hylton, Group Managing Director  of the NCB told the  Economy and Production Committee of Parliament  that bank's fees and ratio of fee income to other income are competitive based on local, regional and international benchmarks, it is important to note that our salary and our standard of living do not compare relatively to these same benchmarks.  The people using the commercial banks here in Jamaica are the same ones who are affected by wage freezes, pay cuts etc, no employment, etc.

"Every mickle makes a muckle", and it seems as if no one desires that the working man keeps his mickle. Our salary is taxed prior to being deposited in the bank by our employers, it is subject to banking rates and taxes while in the bank and it will be taxed upon withdrawal of sums for our livelihood. What is the aim of the government? To decrease the revenue of the bank as a result of the foreseen preventative actions of many who will choose not to deposit their few dollars in the bank. Many persons bank for safety reasons, what are the perceived repercussions?

Many people say the ruling party, the PNP is not a government for the poor, I believe they are because the persons living in abject poverty will not be affected by the majority of their decisions. Who is affected? The middle class or the ordinary man.  We are being penalized for earning our money, saving our money, and spending our money.  What more do you want from us?

Jamaica needs a Revolution.