And while the Prime Minister bristled at Espat's reproachful review of the
Ashcroft/GOB relationship, that wasn't the end of the backbench bombast. When
the bill to increase the excise tax by 50% was presented, the PUP's Lake Independence
representative, Cordel Hyde stood to make his position clear. Hyde opposed the
last increase in March, and today said that he also opposed the first Increase
in Cabinet before he resigned in December. Well now, the government plans to
take that excise up to $6, more than 300% of what it was a year ago but still
half of the $12 dollars that Hyde has repeatedly called for. So today, it wasn't
surprising that he said it isn't enough, it's how he said it. Here are those
remarks.
Cordel Hyde, PUP Lake Independence Rep.
"Madam Speaker I don't know how many ways we have to say it but this
token increase on the beer tax is not cutting it.
On March 18th when I opposed
the Brewery Amendment Bill in this House it was because it did not go far enough.
That bill raised the excise tax on the beer company $3.60 to $4 instead of the
$12 where it was in 1998.
Madam Speaker the economic times are such that there
can be no sacred cows, there can be no exemptions on the special interest. Madam
Speaker I ask this question of the front bench and those who propose to support
this amendment. Have the financial conditions improved such that the government
can afford to settle for only $6 a gallon, to settle for only $12 million revenue
instead of $25 million that they would fetch if they raised the tax to $12?
All indications are that things are not getting better in this country, they
are getting worse.
But this government will not, and it appears cannot, increase
the excise tax on beer to the 1998 level eventhough they need the money and
eventhough Mr. Bowen benefited from over $80 million in tax cuts over the last
6 years; a whopping $80 million in tax cuts. Madam Speaker a responsible government
would not forego a single dollar of potential revenue, especially from a so-called
special interest. The same way we could have given the company a massive rollback
of their taxes from $12 to $1.80 in 1998 and direct the Customs Department to
enforce this beer monopoly, the same way we can prevent this increase in the
beer tax from being passed on to the consumer.
When the beer company got the
tax cut in 1998, the cost of beer dropped a quarter, a solitary shilling. But
when the beer tax was raised to $4, ½ of what it was in 1998, the cost
of beer was increased by 50%. Everybody from the government's technical team
to the social partners to the Opposition to my colleague the representative
from Albert has been telling the government the same thing, raise the excise
tax on beer to $12; tax the beer before you send home public officers, tax the
beer before you tax the poor. But for whatever the reasons, the Government has
been pussyfooting around the issue.
The government can collect upwards of $25
million from the beer tax if they raise it to $12 but they prefer to collect
$13 million. Government needs to revenue, but as usual, it is the poor who will
foot the bill.
Madam Speaker, the government has said that it is planning a
"review of the tax system to make it more broad based," a review that
most Belizeans believe will result in more taxes on the most convenient victims:
the working poor, the disadvantaged and the middle classes, those who can least
afford another penny in taxes.
Madam Speaker, in this bill the Government is
saying forget about social justice and equity, forget about the poor, we need
the money but we can't tax the rich. Madam Speaker the government should stop
putting the special interest ahead of the national interest.
The government
could save hundreds of poor people's jobs but it won't just because raising
the beer tax to the 1998 would make some special interest annoyed. Many others
are paying more taxes than they did in 1998 but poor Mr. Barry, he can't afford
it. The rest of us are fools you see. Madam Speaker, I cannot support this beer
tax, it just does not go far enough."
At the end of those remarks, there wasn't much a clearly beleaguered Prime
Minister could do, other than laughingly issue a cryptic remark. Here's what
he said.
Prime Minister Said Musa
"Madam Speaker it is become very clear today that the Opposition's work
is being done for it [Laughter in the House] by others. Democracy is in full
bloom in this House today. But you know if you can't stand the heat you must
get out of the kitchen."
What does that oblique comment mean? Well, we couldn't quite figure who's
in the kitchen with all that heat and who has to run from it. But after the
meeting the Prime Minister said that as leader he could not comment on whether
he would expel Espat and Hyde from the party. But the two representatives did
comment on their own future and we'll have those remarks, plus commentary from
the Leader of the Opposition later on in the newscast.