The recent IMF Report submitted in February 2017, is a serious eye opener to the government, the opposition, and the country at large. Read on, it may be the difference between Seychelles excelling or imploding down the road. No joke, the last president has planted a economic time bomb in his SONA, suggest the IMF.
Household Budget Survey (HBS)
The National Household Budget Survey conducted by Bureau of Statistics did a nationwide survey on poverty in 2016. They went house to house, asking residents what their monthly cash revenue was. Most said under SCR. 10,000.00 which is just below the poverty line. Based on this single issue, the Bureau of statistics issued the report, announcing 39% of the country lives under the official poverty line, without qualify other relevant points that effectively remove the population from the poverty line, for man does not live on cash alone.
Panic Sets The Mode
Panic set in the Le Pep camp and LDS routed them over the issue. Le Pep asked themselves, where did we go wrong? LDS teased them, saying, " after all these years, the liberation movement is a failure". This statistic prompted Minister Adam to come up with a new scheme on taxing salaries. In James Michel' s last SONA , he raised minimum wages by 30%, he went on and on about a 13 th month salary. Eventually, this household statistic may have been the cause of his resignation.
Who prompted the Survey?
3% GDP Remedy Proposed By Michel
In his last SONA Michel proposed a package of incentives for the poor that will cost Seychelles not less then 3% of its GDP every year,cutting into capital projects, improvement programs for housing and hospital, and education.
In 10 years, the programs will have cost Seychelles 30% seed money, of hard earned GDP.
In 15 years, the programs will be a mine field of bankruptcy again. These programs include: 1. Increase in retirement benefits, 2.Increase in home careers ( half day - 3,607.50/ full day 5,772.00), 3. 25% reduction in PMC houses, 4. Increase in government gratuity, 5. Pensions for Ministers, MNAs, 6. Free duty for first time home buyer, 7. Drug court, anti corruption agency, 8. house repair scheme, 9. 13 th month salary, public and private sector, plus welfare subsidy for companies that cannot afford this luxury, which ends up in the shop keepers coffers.
IMF Says Not Too Fast Le Pep - LDS
IMF says poverty in Seychelles is not 39% but rather, only 1.4% stricken poverty, and 2.4% median poverty level. IMF says the government and National Assembly, got it wrong. Why?
The household survey, when calculating poverty did not include international best practice criteria . They relied only on the cash aspect of the survey. The Report, and the government did not include other criteria for best international practice when assessing poverty, which includes : 1. Free Universal Health care, 2. Free Universal Education 3. Subsidized Bus System, 4. Expansive housing program, 5. Other welfare benefits households enjoy in Seychelles, where per capita income is over $15,000.00 per annum, and unemployment rate is 0 % . This means, anyone who wants a job, can get a job or two, to increase their monthly income. The problem of poverty, IMF says has been aggravated by drugs.
IMF Warns Seychelles
"In light of the widespread concern over poverty,the government announced a number of social initiatives ( see above) in early 2016. While the need to address social concerns is understandable,the announced initiatives were NOT well targeted and entailed substantial permanent fiscal costs-around 3% of the GDP on a full year basis. Without credible measures to counterbalance the SONA measures, Seychelles would risk squandering the gains achieved through the bold reforms implemented since the 2008 crisis." ( end of quote).
What Does It Mean?
Basically, Michel Administration fooled LDS and the entire country, even his own people, to justify hikes in income, when 39% of the people are not living in poverty. Why? To win an election. What a blunder that was.
What Should Be Done?
Now that Michel is gone, now that he has fooled all of us, the Le Pep team, with LDS team should sit down, reassess the measures taken to inflate social welfare by 3% of the GDP each year, see what can be curtailed, trimmed, to bring our economy back on track, to keep on rail to achieving 50% - Debt to GDP ratio by 2020. It is possible if everyone works together to do the right thing.
Sesel Pou Seselwa!
May God Bless All Freedom Loving Seychellois!
One Country, One People, One Destiny!
19 comments:
Where would we be without Gill keeping us on track each week????
Thanks for this.
I'm glad you simplified this for the common man. Often the implications get missed in the financial jargon and we need someone to break it down for us. Clearly from the report, we have been hoodwinked and government resources were used to buy votes, the question now is will LDS do something about it?
the author is absolutely correct, we need a correction to the last year SONA's initiatives.
rather than remove taxes on lower bracket salaries, it would have made more sense
to remove VAT on several household goods, lower the business tax rate and encourage
competition to bring down the cost of living.
How do they correct the mistake now? well first they have to admit it!
There have been many mistakes. President Faure has been addressing them. Perhaps he will not waste time on this one. LDS proposed the 13 month salary. It too should admit it's mistake.
I am certain we can eradicate poverty in Seychelles once and for all with a united effort. Look at the waste in the budget. 140 million down the drain. This money could go towards finishing off poverty once and for all. The tricks Michel did at JJ spirit as a charity - how many millions in his slush fund?this can be sequestered and allocated toward eradicating poverty once and for all. All those diamond class trips add up.
Michel fooled the whole country to try to win elections. No wonder he resigned! This explains a lot.
Ok hen we need to see what Le pep and LDS will do about it.
Mistakes there is lots ..not only the 13th monthly salary of the ofrests of taxes on Busiernses ..it is also the fact that poverty is a results of Pl replacing Seychellois workers by unemployed from india and sri lanka----In other words Pl import unemeployed from Sir lanka and india to to put Seychellois out of work.
Pl passed a law to suppsoedyl help unemployed or rather "PAY someone to find a job"You pay someone to find a job?well findi9ng a job should be a civic duty of each indidivudal......I would prefer Pl introduce a DUAL VOCATIONAL SYSTEm whereby those who failed GCSE. A_ levels and did not accesss any further education(UNi,Technical schools ,hotel schools etc)could be trained simultanueosly (Theroy/practical)..zthus making them fit to for work after the course-Because a DUAUl vocational system provides both practical training and theory at the same time ...unlike noramol school whereby one msut first sit on a school chair two t5o three years for the theory and after this three years school probably aover two years for pratical training ...a DUal vocational system provide faster training and bring the individual after course directly on job market with both theory and pratical.........
You donot pay someone to find a job pl?
Radicating poverty in a challenge but also an indispensable requirement for sustainable development.
Inequality,monopolies which kill existing small Seychellois small busineses,All inclusive five star hote,s which have same effects as monopolies ,dependency of cheap expats all that have help disfranchised Seychellois......One might assume that chronic economic insecurity and an off-kilter economy are the new normal and that nothing can be done to fix it.But there is nothing normal or inevitable about elevated poverty levels and stagnat incomes.They are the direct result of policy choices that put wealth and income into the hands of a few at the expense of growing of a strong middle class.The good news is that dsifferent polcies can bring different outcomes:when for instance the govt invest in jobs--( I say invest in job creation) look govt create jobs with infrastructure buildings ups the problems are that literally all big contracts are given to foreign contractors employing expats like VIJAY.....while also Seychellois contractors are following foreign contractors by importing cheap labour forom indai ,sri lanka too......these actions kill Seychellois jobs but also the quality of salary.....invesat in piôlcies that increase workers wages,famiies economic security,chlidrens which hwill see imporved outcomes in both short and long term.
Now On the infamous and destructive 13th mothnly salary ......should be abandone and replace by for instance......A carbon tax ..which is more equitable for it will be paid by all citizens having boats ,cars etc ..than sucking always busienses with astronomic taxes......
_Increase minimum Wage instead
Of course introduce Anti trust law to ensure that five star hotles uses local services like boat charter ,car rental rather than providing all services themselves which strangle small local businesses and impede opportunities for locals --
:Increased the Earned income tax credit ofr CHILDLESS workers
-Imperative ...therte must be a reduction of Exapts/gops ...they compete with lcoals on job market and kill quality salry for locals .....there are thousands of them ,thus thousands of jobs for locals now taken by cheap expats.(also create fiancnial leakage in billions ----lost of revenues for govt)
-Support pay EQUITY
_
Create jobs .jobs and jobs PL which is one of the best solution to fighting poverty ....and creating jobs means also reducing exapts ..they a real problem for lcoals due to the sieze of our economy and opportunities --we must feed Seychellois first ...Seychellois must profit from their own economy first pl............
Govt must also build n proven models of Subsidized employment to help long term unemployed and other disadvantaged worekrs re.enter the labour markets.....
etc...etc...etc..etc...
The Minister of Finance stated that 1.3 Billion SR for un collected revenue.....well did he find a solution of how to get it back?....Yet all of them are roaming on Mahe....the system is BROKE if they can't do SHIT.Some of them they come for vacation to escape the cold.....why does immigration deal with them as soon as they put their feet on the tarmac.....PL need to stop using their crack pipe.
Pl must change its way ....just look at this recent scam ..I read on TODAYS Nation ...namely Pl introduce a so called point system for Seychellois searching for public houses ------In other words a system that will hand pcked between pl supportors and others ..it is a crooked system pl ......the system should simply be a faire system calling "FIRST COME ;FIRST SERVE ....in pls case ,,FIRST REGISTERED FRIST SERV pl ... that is who registered first and are first on the list should be given houses first ..not point system or else pl .....When indidividuals visit the doctors ,or other offices the perons who came first or earlier is served first ,,else emergency pl .......simple as that......
More indains and tamil tigers are on the way ...You have seen them ,talking about developing Seychelles blue economy ....Well the mariculture pl is talking about will soon be teemed with under pay.and cheap unemployed from indai and sri lanka ..another disfranchization of Seychellois ........Pl thinks to throw a handful to fish mela/pellet in a fish pond you need foreigners for Seychellois are so uncapble that even throwing pellet in a fish pond they not qualified......
DId Faure said ,,Seychellois first"
6.46
Definetively ,there are too many tax burden of businesses ,especially Seychellois owed businesses but not on property(per squre mter of course not what pl proposes now) ,these yachts ,eden island......fro instance ,the one rupee land for one century should be abrogated and implement the same rules as to Plat4e island development ,namely land is rented ......noting that all those that have benefited from one ruppe land have fialed to abide by their obligation which are supposed to be job creation for Seychellois and revneus for government ........what we have is thousands of unemp'loyed indains taking Seychellois ,,and since all revenues are collected and banked aborad govt has no idea of what these companies really generate ..so make them pay their rent for land ......
Coporate tax which originally should be voluntary act should be cancel and replace by a Carbon tax ...making persons like Alix Michel owing two to three car pay carbon tax for each car separately.....note forget these yacths and other boats also need to pay carbon tax...
An increase on income tax on childless individuals --I guest LDS leader TOn pat would not say know if he has to pay a little more as childless worker.
Taxes on fruits and vegetable,fish import by five star hotels which disfranchise local farmers and fishermen ....higher duty and import tax on them .....
On cost on living
--wages had for decades not follow lelvel of development etc..
Note devaluation of our currency ..while it is good for busineses ,it has made individuals poorer ....for indviduals over night found then buy less for same money ....nothing also that while pl devalutate our currency ..price of good and services increase at sky rocketing level .......
Putting people are work is one of the best way to fight poverty ....and to put Seychellois at work ,,there is two ways .....more infractructure investment ,,encourai^ging devel0opemnt of small business .....and reducing thje thousands of indains and sri lanka unemployed pl imported to take Seychellois jpob and kill the quality of salary ..and indain would work for two seychelles rupee per day he sued to earn one indain rupee per month ...a Seychellois cannot do that ....and of course job ,job and job creatiuon must also accompanied by good salary ,,,not a poor salary .....
Note fianance minister said 1 plus billion doe not enter our coffer ....he should make sure it does enter our coffer ..and I guess it is financial leakage the fianace minster is referring too .......where is the promised ANTI TRUST law ,,,when would pl stop monopolies and All inclusive at the five star hotels and provide susutainable development ........?how long would pl need to implement an anti trust law ,,a decade or what?when would pl make theseig luxurious yachts pay their fair dues .?I think it is time for pl to stop blah blahing and act...........too much blah balh ,and hot air but little actions so far .....
.
2:52
The IMF has not addressed the monopolistic practice in the economy. However, this issue has been addressed by the World Bank.
A report was submitted on December 5 , 2016 and President Faure has nominated Vice President Meriton to deal with this issue through adding Praslin and La Digue to his portfolio.
Our business community has now met the Vice President twice.
The next meeting, he will present the World Bank report.
We have asked LDS MNA to address this issue as well, since dealing with the monopoly issue will take all sides United for Seychelles, we cannot polarize on this. The big players are powerful and they are dangerous. But they also do not care what damage they do to social cohesion at the quest for profit. So we must deal with them as Seychelllois united in cause and purpose.
I thank President Faure for his support. I thank Patrick Pillay for his support. I thank W. Ramkalawan for his support. I thank Churchill Gill for his support. I thank W. Woodcock for his support.
Sesel Pou Seselwa!
Christopher Gill
It is very dangerous indeed .they lobby to undercut the free market.While traditional lobbying centered on altering tax rates and encouraging legislation to liberalize and deregulate the economy,it has now evolved into competitive weapons for companies trying to box out competitors and rasied barriers to enter the markets.For the existence of substitutes makes for demand elasticity,which,in turn,makes monopolistic pricing unprofitable;for higher product prices would greatly curtain product demand and thus sales and demands,of the monopolist.Therfore ,he again must act as if he was a competitor among many.
High Time to fix the system.
Allow me a few words of WOMEN DAYS...I hearing lots of empty positive talks on wooemen day from Pl officials ......some saying Education is the key to gender equality etc ...My question is when would pl finally CRIMINALZE DOMESTIC violence whery women in the first victims in our society and has been this way for decades ..We have repeatedly heard Dr MERITON in the last past years parroting on GENDER/DOMESTIC violence ....when would pl act?
Now ,It is not education or else but it is MORALITY that dictates that men and women should be treated equally.
Still awaiting for pl govt to criminalize Domestic violence ......and less blah balh....we need actions pl,not blah blah each year when Women Day comes....
Seychelles continually would need tourist attractions ----the new ,in trent Attractions being developed yet ,,is UNDER WATER MUSEUM like in MExico ,SPAIN ,grenanda and surely other tourist destinations would follow suite...What about Seychelles?Unti lnow ,be it in spain ,mexico ,grenanda the theme of their under water Museum have all been presenting sculptures of human beings ..cars .and other stuffs ....What about execelling on the theme by creating our own under water museum with the THEME MARINE IDNAUSORS sculptures ,...the latter unlike human beings sculpturesoffers by Mexico ,spain ,and grenanda ,,it has a real connection with the OCean ..and moreover their is over 17 000 known ,species ..thus being us a forest of opportunies ..that is in 20 years when the first sculptures would be covered with corals ,seeweeds ...we would be left with thousands of possiblites ,new scukptures etc .....
Or is Pl awaiting that the idea is taken by others and then we will copy ...be first for once Pl..
Seychelles most prominent thug rthugator Michel is preaching about blue economy as if he is a highly experience expert in the field .Michel thinks because he is poor intellectually and took years to understand the definition of Blue economy ,we are automatically idiot on the issue like Michel ,so he will school us ..Dog Michel idiot ,be it blue,yellow,green ,pruple ,balck ,grey and so on ..all has to do with susutainnabiltiy donkey ,,we donot need an idiot like Michel to school us on susutainabiltiy ..we more educated thme you donkey michel ..why not go and prepare you defence for the multiple crimes you committed dog ....
Post a Comment