You’re accountable for delivery

The American Chamber of Commerce (AmCham), while applauding Government’s initiatives to ensure greater equity in the distribution of wealth, said inflation needed to be carefully looked at.

Addressing a breakfast meeting at the Courtyard Marriott Hotel last week, AmCham vice-president Raymond Gatcliffe said the Chamber was pleased to note that the new energy tax regime instituted by Government "significantly increases Government revenue take by $2 billion" and it remained to be seen if this renegotiated regime will continue to provide incentives for further exploration and activity as articulated by Manning in his Budget presentation in Parliament last week.

Gatcliffe also said AmCham commended Government for injecting $1.8 billion into the Revenue Stabilisation Fund. However, in light of the significant increases in budgeted revenues, Gatcliffe said "it is entirely reasonable to ask if more should be set aside."

"We are discouraged that no mention was made about previously announced plans to pass legislation formalising the fund and including intergenerational equity and strategic investment components," he stated.

Gatcliffe added that "notwithstanding this omission, we again press the Government to enact this pivotal legislation."

Gatcliffe said AmCham welcomed Government’s decision to reduce corporation and personal income tax to 25 percent but reminded Government about putting proper measures in place to deal with a projected $1.7 billion in excess liquidity which could lead to higher inflation if not addressed.

Gatcliffe said AmCham shares Government’s frustration about its inability to execute the Public Sector Investment Programme (PSIP) efficiently and will hold Government to its promise of accountability and transparency on the 15 new special purpose state enterprises formed to execute the PSIP.

While recognising the need for social expenditure, Gatcliffe said AmCham was heartened to see initiatives by Government to place a mandatory training component in CEPEP and "reverse the ever increasing dependency surrounding the Unemployment Relief Programme."

He added that AmCham was mindful of the work required by Government to execute delivery in several areas and was ready to assist Government in achieving its fiscal 2006 objectives.