Mitigating the cost of living increases

During a recent united-front press conference, GOA had just announced a lower tariff for electricity, as of January 1st, 2020.

We welcome all price reductions. Thank you.

Because as a nation we are getting poorer. One of my friends reported this week that the bailiff offices have been especially busy enforcing the collection of debts on behalf of SETAR, WEB, CROWN and ISLAND FINANCE.  

Many people are broke.

But if you look at the reduction realistically it is just an accounting wizardry measure, a political move, to make our cost of living look better and mitigate the recent sharp increases as reported by CBS, the Central Bureau of Statistics.

For October 2019, they reported: The CPIC (core inflation) –  excluding the effect of energy and food – was 3.1% in October 2019. The energy index – which consists of the products: electricity, water, gasoline and diesel – was 0.3%. The food index showed an increase of 13.1%.

So you know, our money doesn’t reach that far these days, but the national numbers will look better on paper, when the Dutch accountants, in charge of our spending-control, peruse them.   

GOA announced that residents will get a 10% reduction, businesses 7%.

They guarantee the reduced rate for one year.

They emphasized that they have reduced the cost of living for citizens as well as cost of doing business for commerce, as a yearend gift.

It’s a good move, but at the end it will not avoid our cost of living increases, as you can see above, with the October numbers.

ALSO: If Utilities makes less money, will it be able to upgrade and service the system properly to avoid and prevent blackouts. Energy is a serious business, and plunging us into darkness because 10% of the maintenance budget was cut, is a lousy idea.

Meanwhile, we are still waiting for details on what the government’s decision is for a second phase of tax reform in 2020. 

Is this energy rebate greasing the skids for what the future holds???



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December 14, 2019
Rona Coster