Fonseca: No raises for Govt. workers in budget
The occasion was the signing of an amended agreement to allow rehabilitation funds previously borrowed from the I.D.B. to be used for Hurricane Iris recovery. The four million dollars will be spent to repair and retrofit schools and community centres in Stann Creek and Toledo to better serve as hurricane shelters. But while Ministers Ralph Fonseca and Henry Canton, along with the IDB’s Hugo Souza, gathered in the friendly confines of the Central Bank, they could not ignore events in the less predictable world outside. For Fonseca, the I.D.B. agreement was a stamp of approval for a Belizean economy which has been battered from within and without.
Ralph Fonseca, Minister of Budget Planning
“That demonstration of confidence is more crucial today than ever before. The last three years, with four storms and September eleventh, causing over one billion dollars in damages, have placed tremendous strains on our economy and seriously challenged the resilience of our Belizean people, and in particular those invested here in the ground. But the I.D.B., like our investors and the real hardworking Belizeans, have seen the true potential in our now much more diversified economy. While some, for cheap political mileage, have acted like economic terrorists putting wicked spins to every challenge faced by our economy, our investors on the international banking community, continued to work with us to achieve fiscal balance and sustainable economic growth.”
But while the Budget Minister talked about growth, the nation’s merchants were more focussed on finding scarce foreign exchange. If the importers were looking for an overnight solution, they didn’t hear it this morning.
Ralph Fonseca
“We all know the relative pricing problem with the peso, and we all know that some very alarmist headlines of late have affected the parallel market. We just had a meeting with the guys that are involved with this “parallel market” as we call it, and they have now formed themselves into an Association of Casa de Cambios in order to try to be more resilient against that kind of sensationalism. So I guess if there is a message to be sent to the distribution sector, which is the sector that is having some difficulties with getting their foreign exchange, it is that we need to work on this thing together and we need all to follow the rules. I think everyone agrees that there are lots of dollars out there, it’s just a matter of controlling the cost of those dollars.”
That attempt at control will take the form of a fluctuating service charge at casas de cambio. The result is intended to be an exchange rate attractive enough to wean people from the illegal to legal market.
While the business community was looking for U.S. dollars, government employees were clamouring for the Belize variety–specifically, more of them in their monthly paycheques. In an explanation that could have been written by the I.M.F., Fonseca took a hard line on any raise-a-pay.
Ralph Fonseca
“Well, whenever you have a growing economy and you have expansion taking place, people will want to, if you like, put themselves in a position where they can best take advantage of it. That’s a part of the democracy, there is nothing that is nothing that is wrong with that, and this government of course looks on it as just another routine job that it has to do, negotiate with these people. And the reality is that we have been hit by four hurricanes, we did have September eleventh. There are certain measures that have got to be taken, for us to return to the fiscal path that we were at before we were hit with these hurricanes. And we have been trying very hard to explain that to the teachers and the P.S.U., through the negotiating team, and we will continue to do so.”
Stewart Krohn
“Bottom line, the budget that you’re going to introduce on Friday, does it allow for increases in wages and benefits for public employees?”
Ralph Fonseca
“It allows for some normal increases, whether it allows for a specific increase to deal with the kind of demands that is coming from the last document that was put in front of us, no.”
Journalist
“So they are asking for nineteen point five percent cost of living allowance…”
Ralph Fonseca
“Along with an array of other benefits, yes.”
Journalist
“And those will not be in the budget?”
Ralph Fonseca
“No.”
At the same time Minister Fonseca was saying “no”, several hundred teachers and public officers in Corozal demonstrated for a pay raise and improved benefits. A much bigger protest rally is planned for Tuesday in Belmopan.
