…..but take the $1,000 though
Introduction
There is no doubt that we have a cost-of-living crisis in our country just like most countries in the world. Every day the price of something is going up and despite the Government providing duty exemptions on basic items, we are feeling the impact. The vendors claimed that the reason is due to the high cost of freight and the fact that the goods coming from their suppliers have increased
Now despite the rumours that the Government was planning on giving out stiumulus, I didn’t think it was going to happen, so I was surprised when the announcement was made during November 5th, 2024, House of Assembly Meeting.
Let me say this I am not against the Government giving the citizens this one of relief because after all, it is our money and the country has so much money and I know by the end of the fiscal year ended March 31st, 2025, there will be a lot of money that will be unspent in both recurrent and capital areas. Therefore, I don’t support the argument that money can be used for something else because there is more than enough available and quite frankly if the Government wanted to assist with the cost of living, they need to give out more than $1000. Furthermore, we need some real long-term solutions.
However, what I do not support is the timing of this relief given that the elections are around the corner. Take the $1,000 though and I know you will not let this relief persuade you on how you vote. If you feel that this Government has done a great job and was better than the previous administration, then keep them in. Likewise, if you think that the Government did not do a good job, then vote them out.
Budget
Let me break down this, the recurrent budget is $473m and the recurrent expenditure is $414m resulting in a recurrent surplus of $59m. Therefore, that $15m allocated for the cost of living is more than affordable.
Long term solutions
Housing and food prices continue to escalate, and we must find some long-term solutions to address these. There is an argument for the implementation of price control. I don’t think we need to put price control in everything, but I think some consideration should be given for certain areas such as apartments.
I am a landlord and while mortgage rates have gone up over the past couple of years, the rental for some apartments does not have to be as high as it is. The Government should do a study on apartment rentals and consider a price control on rent and pass legislation so that landlords cannot increase the rent beyond the designated price.
It is believed that we have deeper water harbours to accommodate larger vessels, which would allow suppliers to get larger quantities of products and hopefully get a volume discount thus helping to reduce the cost of energy and food items. It is estimated that costs can be reduced by as much as 30% or more.
We should also consider seriously engaging in trade for food supplies with some of the Caribbean and South American countries. After all, America is importing food from these countries and reselling them to our merchants in Turks and Caicos. Cut out the middle person, increase your demand from the Caribbean and the ships will go there and then the price of the food can be lower.
Conclusion
The cost-of-living crisis is real. One-off payments are temporary measures, but we really need long-term solutions which I know may not happen overnight. However, serious initiatives must be considered and implemented.
While the $1,000 may be small to some (although maybe significant to others), I encourage you to use the money wisely.
Now my question to the Government, if you win the next election and the cost of living continues to increase, what will you do? Will you provide another stimulus?