Government is seeking to cut “extravagant” spending by ministries and state enterprises and will start the exercise by slashing budgets for annual Christmas parties and bonuses for employees.
Staff at several ministries, including the Ministry of Housing and the Office of the Attorney General, were informed of the decision yesterday with the holiday season moving into high gear.
The T&T Guardian learned that Minister of Housing and Development Marlene McDonald met with Housing Development Corporation (HDC) staff in Port-of-Spain yesterday to tell them there would be no Christmas soiree or bonuses this year.
This is a downgrade from last year, when sources said the HDC spent a reported $3 million on a fete-like bash at the Hyatt Regency Hotel which featured performances by Machel Montano.
This year, the HDC staff will be allowed small department celebrations.
According to a source close to the Government, ministries have been cutting costs by either cancelling Christmas functions or lowering the scale of the activities, compared to recent years.
In a telephone interview yesterday, Communications Minister Maxie Cuffie confirmed that a directive had been given by Finance Minister Colm Imbert to place constraints on expenditure for state enterprises.
“It’s a decision that affects not just state enterprises but also ministries,” Cuffie said.
“It is meant to restrain extravagant expenditure within the new economic dispensation. The Government wants to ensure there will be no more unnecessarily expensive Christmas parties and extravagant bonuses,” he added.
Cuffie said only profit-making companies should be expected to pay bonuses. He said organisations that were funded directly by taxpayers had no business giving bonuses.
He said the decision came after review of the spending by the People’s Partnership over the past five years.
“There was no restraint in terms of Christmas parties and bonuses,” he said.
The Ministry of Finance’s Treasury Division will be hosting a staff function to the cost of $424,742 at the Radisson Hotel on Saturday.
The move to cut spending in these areas was forewarned when Prime Minister Dr Keith Rowley, then the Opposition Leader, had criticised the People’s Partnership on its Christmas spending.
The People’s Partnership administration had held annual million-dollar toy distribution drives which then prime minister Kamla Persad-Bissessar said were sponsored by private companies.
In addition, Persad-Bissessar’s government held a number of children’s parties at the PM’s residence in St Ann’s, as well as tea parties, luncheons and dinners at ministries and state enterprises for several groups, including NGOs and media professionals.
Adjustment needed—ECA
Contacted yesterday on the decision, Employers’ Consultative Association (ECA) CEO Joycelyn Francois-Opadeyi said the country could not expect business as usual.
“It is an adjustment staff will have to make. Employees would have gotten used to certain things. Anything that changes what they enjoy may be a problem,” Francois-Opadeyi said.
She said with the economic reality it had become a priority for businesses to scale back on spending.
“The substantiality of business must be a priority because you can’t spend on Christmas dinners and bonuses but having no money to pay staff in January.
“It’s not a case of holding back, we have to trust employers to make decisions in the best interest of the business,” she added.
She said once the rationale was clearly communicated, right-thinking employees would better understand the situation.
“It’s not a secret. Our oil revenue isn’t what we would like it to be. We have been hearing the diversification word around for years. Alternative sources of income are the priority right now,” she said.
Even parang groups are feeling the pinch.
National Parang Association PRO Michael Lezama said in an interview groups who were used to performing at government events were no longer being contracted.
“It is both with the government and private sector. A lot of them have cancelled their events and it is really hurting parang performers,” Lezama said.
He said in addition to not receiving an annual subvention, a situation for the past five years, parang groups were also losing work in the economic climate and had only enjoyed one major event in Lopinot last weekend.