The government should use revenue collected from value-added tax (VAT) to assist with relief efforts in the wake of Hurricane Joaquin, Free National Movement (FNM) Chairman Michael Pintard said yesterday. On Wednesday, Prime Minister Perry Christie estimated the damage Joaquin left behind to exceed $60 million. He said the government will consider borrowing money from the Caribbean Development Bank and the Chinese to assist with relief efforts.

When asked to respond, Pintard said, "The original intention of raising VAT revenue is to pay down the national debt. Therefore, if you are borrowing you are contributing to increasing the national debt. So it stands to reason that revenues earned from VAT can in fact be used in the recovery and reconstruction efforts.

"If the government decides it does not intend to use any revenues from VAT, it is reasonable for the public to expect the government would explain how are they presently using the revenue that has been raised from VAT. Any borrowing should be very specific and completely guided by objective assessment and taking into consideration the long-term needs of these communities."

When asked whether revenue collected following the January implementation of VAT would be used to fund the government's reconstruction program, Christie suggested this was unlikely.

"We are feeling very, very good about the success of VAT as a revenue source and clearly it has helped us, but we have to make the assessment as to the amount of money necessary," he said. "We can't wait fully for that because I have already directed now that we move on a proactive basis in places where there are difficulties."

Christie said the country cannot afford to wait to assist those in need. However, he was unable to say how much the government is considering borrowing. An estimated 5,000 people were impacted by the Category 4 storm that ravaged the central and southern islands on October 1 and 2. It remains unclear how many homes were damaged or destroyed. Pintard said while he believes borrowing is a realistic option, the government has yet to quantify the amount of money in damage to the islands impacted by Joaquin.

"In the absence of a careful assessment it would be premature for the government to commit to borrowing," Pintard said. "The government should certainly have that as one of several options in terms of funding,  but for them to predetermine that they are going to borrow, in our estimation would be premature."

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