The Tribune

By LETRE SWEETING

lsweeting@tribunemedia.net

THE Free National Movement is going to seek to get a full briefing from Prime Minister Philip “Brave” Davis on what has been decided concerning the National Insurance Board’s contribution rate, FNM leader Michael Pintard said yesterday.

Mr Pintard told The Tribune that he wants to hear Cabinet’s conclusion on whether the government will heed recommendations from NIB’s board to increase contributions for the public, advising that the government needs to be “candid” with relevant stakeholders.

“We have not seen the actuarial studies and gone through it or been briefed by this administration. We are going to seek to get a full briefing from them,” he said.

“We knew when we were in government that there was a challenge with the sustainability of the National Insurance fund and that there was a need for government to take a hard look at what we must do in order to ensure that future generations are going to receive the required benefits that they are entitled to under the law,” Mr Pintard said.

“It’s a tough decision, but sometimes tough decisions have to be made for the sustainability and so we want to take a look and also be briefed on what has brought the chairman and the minister of state (of NIB) to this conclusion,” he said.

“We want to hear from the Prime Minister and we want to hear to a Cabinet conclusion what has been decided,” Mr Pintard said.

“We are most especially interested in hearing what the Minister of Finance and the Prime Minister has to say, because he clearly indicated that there were other things he was exploring which he believed might not necessitate this action to be taken,” he said.

“This government, if we were to give them some advice, would be to explain to the general public what we are up against, what you believe should be the solution, but do not avoid any longer having a candid discussion with stakeholders who are going to be affected by what you predict is going to happen,” Mr Pintard said.

Mr Pintard advised the Davis administration to “focus” on the “very difficult issues” that the country is facing.

“It is important for the Prime Minister to be focused on these very difficult issues that we are facing, such as NIB, such as the state of disrepair that our health facilities are in, such as the crisis of crime and crisis of immigration in general and the unregulated construction that is going on in a number of our major islands,” he said.

Last week, NIB’s board, echoing the social security system’s 11th actuarial review, was said to have recommended to the Davis Cabinet that contribution rates be increased by between three-quarters of a percentage point and 1.5 percentage points from January 1, 2023.

That would have raised the combined rate to between 10.55 percent and 11.3 percent, but the government did not approve it, so the board is now awaiting a move come July 1.

Many observers, especially following the 11th actuarial review’s publication, have viewed an NIB contribution rate increase as inevitable, the only questions being the timing of the move and by how much.

The Davis administration, following its predecessors, has sought to hold off as long as possible but the delay will only make the magnitude of the correction greater.

Last month, Myles Laroda, minister of state with responsibility for the National Insurance Board, said the government will have to make a decision this year concerning the state of NIB’s fund, which he says remains on target to lose about $70m this year.

In the meantime, he said the government will continue considering its options on how it can ensure the fund’s sustainability.

These options include cutting back on costs or raising revenue or doing both, he said at the time.