Headlines:
| Bonds in lieu of payment a bad idea – Davies |
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| Tuesday, 26 May 2009 | |
 Opposition Spokesman on Finance Dr. Omar Davies has expressed
reservations about suggestions that
Government bonds be offered to public sector workers who have been asked to
forego a wage increase. Some trade union officials have signalled that they would be in favour of bonds in lieu of the 7% increase which was due under MOU3. But Dr. Davies says issuing bonds could trigger more problems for the cash strapped Government. "That is just a postponement of the problem because that is more debt and the resolution you're seeking is not to simply postpone meeting the problem head on but to face that difficulty somewhere down the line. No one knows when revenues will recover to facilitate that payment," said Dr. Davies. |