THE PNP RESPONDS TO AUDLEY SHAW

The People’s National Party
9 hrs ·
1. The People’s National Party has always indicated by way of advertisements and national broadcasts that the JLP’s proposal for raising the tax threshold to $1.5M was not affordable nor feasible in the way they had proposed it.
2. Let us remember too, that the analyses done by the private sector group and published in the national media, reaffirmed this view.
3. The JLP claimed they were going to use proceeds of the Energy Stabilisation Fund to finance their plan. That would not have been practical because;
a) The bulk of the resources in the Energy Stabilisation Fund were used to pay back advances made to purchase the oil hedge (approx. J$3.3BN).
b) Any surplus collected above this would be relatively small and could not make up the revenue shortfall needed to implement the JLP’s tax plan.
c) Shaw’s claims is ludicrous since resources for FY 2015/16 could not be used to finance revenue needs for FY 2016/17.
d) The Energy Stabilisation Fund was set up by the Cabinet in August 2015 as a dedicated sub account of the Consolidated Account. All resources by law have to flow into the Consolidated Fund.
4. Drafting instructions were given to the Chief Parliamentary Counsel to establish the Energy Stabilisation Fund in law. A first draft has been completed and was to go back to Cabinet. The Fund is to be used for:
a) Hedges to protect the country against sharp upward movements in the price of oil
b) To finance capital investments which would reduce Jamaica’s dependence on oil for its energy needs. For example, it could finance plans to install solar power systems in our schools
5. Shaw’s complaint is a total diversion from the real issue which is that the JLP has no firm proposal to implement their tax plan
6. The JLP can only implement their tax plan on the basis of raising taxes from the same people that they claim they want to provide relief