Boyce defends Govt’s reliance on NIS funds

A Government Senator has argued that funding for much of the infrastructure required to make the country appealing to the private sector must come from the National Insurance Scheme (NIS).

Speaking in the Senate during debate on the National Insurance and Social Security (Amendment) Bill 2017, Minister of State in the Prime Minister’s Office Senator Darcy Boyce insisted that an important role of national insurance schemes everywhere was to generate resources for a country’s economic development.

“National insurance schemes have to be concerned to see investments occurring constantly. Investment must be in infrastructure which promotes the growth in the private sector. National insurance schemes succeed when employment is created, they succeed when incomes are generated,” he said.

Amid concerns about Government’s borrowing of NIS funds, Boyce suggested that Barbadians should recognize the large number of developments in the last five decades that have been made possible through the National Insurance Fund.

He highlighted a $70 million loan to Government to rebuild and renovate police stations and courts as example of such projects.

Boyce contended that it was better to invest the money in Barbados, than to use invest it overseas and create jobs for other people.

However, in recent months Government has been warned by international credit ratings agencies including Moody’s

about its mounting debt burden, which reached 111 per cent of GDP at the end of 2016.

In downgrading the island back in March, Moody’s pointed out that the local authorities had accumulated a large stock of arrears to the private sector and the NIS, estimated at a further 11 per cent of GDP at the end of fiscal year 2015/2016.

“Large refinancing requirements and the high interest burden, which consumes around 27 per cent of government revenues, pose increasingly severe credit risks,” the credit ratings agency said at the time while lowering  Barbados’ Government bond and issuer ratings to Caa3.

“Given the scale of the fiscal and structural reforms needed to correct the rising imbalance, the likelihood of a credit event is now very high,” it had also warned.

15 Responses to Boyce defends Govt’s reliance on NIS funds

  1. Ali Baba
    Ali Baba July 21, 2017 at 4:25 am

    why am i not surprise……cash cow for the teethsssss

    Reply
  2. Tony Webster July 21, 2017 at 6:31 am

    Yon Cassius is indeed, an honourable man, and I come to praise him, as well as to together consider that while all men have sinned, there are some sins that are greater …more repugnant…than others, and that it’s not the mere fact, but the extent…the size of the sin…that will cast us all into the pit!

    Forsooth , Sir…why did we take such great care, in setting up the N.I.S., to segregate such “family savings”, from the day-to-day coffers of that voracious creature called the Consolidated Fund?

    As Ossie Moore once told me…”Yuh cyan eat yuh cake…and have it”. My good late friend Gearbox, also once consoled me by reminding me that …”Too far East…is West”…right there by Rocky Gully…with the mini-bus park-up…wid flat tires…and no gas.
    Verily.

    Reply
  3. chris hill July 21, 2017 at 6:37 am

    for the longest time gov has been warned about their unlimited use of the NIS funds, now gone too far, cannot repay at the interest rate promised so it was lowered. will mr sin clear lower the interest again to ease the government books. just a lot of folly.

    Reply
  4. Mack July 21, 2017 at 8:13 am

    The problem with Barbados finances, is the stupid spending. the priminister just acquire a 700.000 vehicle while complaining that the country don’t have any money.

    If maintainance of his vehicle was a problem, he should have given it to the Defence force to maintain. They know how to take care of anything. The dealers will milk you on these vehicles services. He should know that.

    Reply
  5. Philip F. Corbin
    Philip F. Corbin July 21, 2017 at 8:19 am

    Boyce can easily defend his administration using NIS funds because there is no other source available to them where they (govt) can dictate the terms of the loans. Someone needs to tell Boyce and Denis Kellman that NIS funds belong to the policyholders of the NIS, e.g. The people who pay their premiums on a monthly basis from their salaries. The NIS does not belong to the govt. They happen to have appointed themselves managers of the funds …..that’s all. The time is right for a few NIS contributors to challenge Govt in a court of law on this matter, otherwise people who have contributed for their entire working lives will find that the NIS is bankrupt just like CLICO.

    Reply
  6. Carl Hunte
    Carl Hunte July 21, 2017 at 8:20 am

    NIS funds should not be used to fund the everyday activities and general expenses of government. Such funds should be separated and segregated from general revenues and used solely for the purposes of paying pensions and other benefits to qualified members. Furthermore, NIS funds should be employed in investment portfolios that offer the best return on the capital invested. Interest rates are relatively low worldwide, and consequently, capital must be invested prudently.

    Reply
    • Philip F. Corbin
      Philip F. Corbin July 21, 2017 at 9:40 am

      Carl Hunte, NIS is a National Insurance Scheme which is funded by working Barbadians who pay premiums into the scheme. The govt are simply the managers of the funds. This govt would have people believe that NIS funds are similar to taxes. As a result they use the fund to finance their operations. The contributors to the fund should pursue legal action to preclude govt using the NIS as their private ATM.

      Reply
  7. jrsmith July 21, 2017 at 8:54 am

    What ever happens in barbados with politicians , is no real concern to them, because everything is set up in they favour , they do what they like , say what they like , when they like everything to the black masses is lies , tricks being con and crooked…………………..

    Reply
  8. Lilian Lloyd
    Lilian Lloyd July 21, 2017 at 9:00 am

    ANOTHER DEFENDER OF THE DEMS HE WAS WITH OWEN NOW WITH THE FROON PARTY IN POWER THAT IS BOYCE

    Reply
  9. Dennis Connell
    Dennis Connell July 21, 2017 at 10:03 am

    Now adays if one happens to be sick,claims and recieves sick benefits it is taken back from any monies due to you as income tax returns..in essence you dont really get what you paid NIS deductions for..thats your money after all

    Reply
  10. Paula Husbands
    Paula Husbands July 21, 2017 at 10:30 am

    This Government is ‘stealing” for lack of a better term what does not belong to them and it should be a crime this is so wrong on so many levels and it will soon be bankrupt GOD help the sick when need of their monies this Government want locking up for the injustices its doing to the poor sad so sad smfh .How can anyone in good conscience Still support Dems is beyond me for all the degrees every one of them lack basic common sense

    Reply
  11. Gearbox1964 July 21, 2017 at 4:59 pm

    I really would prefer the criminals to target these politicians when they looking to rob and kill. Dah is all I gine say.

    Reply
  12. Sunshine Sunny Shine July 22, 2017 at 6:10 pm

    Coming from the mouth of senator Darcy Boyce, or better known as Darcy Hiddenagenda, no one should be surprise that he would put up an argument for a continuance of utilising NIS funds. In the absence of no accountability, transparency, and proper disclosure on how government monies are spent, Darcy Hiddenagenda Boyce is not the type of politician you want promoting NIS monies to assist with infrastructural problems now plaguing several government owned buildings. You will notice that Darcy ain’t taking into account the warnings of over and away financial agencies because them do not understand the inner workings of how Barbados does run their economic machinery. NIS to Darcy is an agency that has untapped millions; therefore such money should be looked upon as disposal income used for the benefit of the country, but with a reciprocative clause.

    Reply

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