Dookeran: Prudent national wage strategy needed

FORMER finance minister Winston Dookeran on Wednesday declined to comment specifically on Finance Minister Colm Imbert's concern that a collective agreement reached between the Public Service Association (PSA) and the National Insurance Board (NIB), under the former People's Partnership (PP) government, could have consequences that are "far-reaching and could result in tremendous expense to taxpayers" if it is implemented.

But Dookeran said that issue, as well as matters he was dealing with in his own ministerial tenure, underscored the need for a wise national wage strategy that does not jeopardise the economy.

Speaking in the Senate on Tuesday, Imbert said, "I can say off the bat, if that agreement, the wage increase that was contemplated by that agreement, was implemented in the public sector, it would cost $7 billion." He said, "The investigations of the Ministry of Finance so far, have indicated, as far as we have been told, that the management of the NIB did not inform the board of the ministerial directive of March 25, 2011." He added, "So far as I am aware, the management (of the NIB) is being called upon to explain why this letter from the the minister of finance was not made known to the board of the NIB."

Dookeran, finance minister between May 28, 2010 to June, 2012, in his first comment on the issue on Tuesday, said, "I don't have the information available at this point in time to comment on that."

On Wednesday, he said, "As minister of finance then, I was acutely aware of the need to have a national wage policy that will not put at risk the fiscal space and competitiveness of the economy."

He recalled this was why five-11 per cent limits to wage negotiations were contemplated under the PP.

According to Dookeran, "Several attempts to subvert that were made, at the peril of prudent fiscal management."

He continued, "We are facing the consequences...then and with recent developments more so now."

After indicating that Newsday's article about Imbert's statement in the Senate point in this direction, Dookeran said the lesson to be learnt is "adopting a prudent national strategy for wage determination, that does not put the fiscal situation at greater risk as the economy is on the edge."

Vasant Bharath, who served as minister in the ministry of finance from July 4 , 2012 to March 31, 2014, on Wednesday could not shed any light on the PSA-NIB collective agreement mentioned by Imbert.

"I am not familiar or aware of the matter."

Efforts to contact Larry Howai (finance minister from June 25, 2012 to 17 June, 2015) and NIB officials for comment were unsuccessful.

On Tuesday, Imbert said, "This is an active investigation and it is ongoing and I expect to get a report from the NIB in due course."