IMF:
Get rid of COLA
By Driselle Ramjohn
Trinidad Express
Port
Spain
Petroleumworldtt.com
07 22 07
THE International Monetary Fund (IMF) has suggested
that the Government do away with the addition of
the Cost of Living Allowance (COLA) in new collective
agreements.
Max Alier, mission chief for Trinidad and Tobago
of the IMF, told members of the media yesterday:
"We
see that inflation is coming down. It was ten
per cent in October. It is now close to
seven per cent. The COLA is to protect people from
inflation but if you are making progress with inflation
there is no sense to have a COLA."
Alier made the statement at the Ministry of Finance
during a press briefing to reveal the outcome of
discussions for the 2007 Article IV Consultation
with various members of the Government, the Opposition,
executives of the Central Bank, Tobago House of
Assembly executives, the private sector and labour
unions.
Conrad Enill, Minister in the Ministry of Finance,
said that the Government would take the IMF's suggestion
under consideration.
"We have moved away from anything that has
to do with an artificial type of negotiations.
We are looking at market rate determinations with
a complement of productivity and this is really
to make sure that wages and salaries are competitive
within the market place and then you get the whole
question of productivity built-in," Enill
said.
The
IMF executives said that they were pleased with
the way the Government and the Central Bank
was handling the problem of inflation and that
the country "is rightly aiming at using energy
resources to reach ambitious development goals
before energy reserves are exhausted".
The organisation reiterated concern over the rate
at which the Government is spending, calling for
tighter fiscal policy in signs that the economy
is operating at full capacity and to help contain
inflation pressures.
Alier commended the establishment of the Heritage
and Stabilisation Fund legislation and the diversification
of the economy but added that some more diversification
of the economy using the energy dollars at hand
should be encouraged.
Trinidad
Express
Saturday, July 21st 2007
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