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Laroda: Govt agencies owe NIB $8m

Fri, Jun 23rd 2023, 09:13 AM
Finance Politics Tribune Stories

MYLES Laroda, state minister in the Office of the Prime Minister, said government agencies owe $8m to the National Insurance Board.

He agreed with Free National Movement Leader Michael Pintard that the Davis administration must crack down on this.
#His comments come after the government announced that NIB contribution rates would increase next year.
#“The government has an obligation to follow the law,” Mr Pintard told reporters yesterday. “We know that this administration, they are serial law breakers, so we have very little expectation of them following the law.”
#He continued: “The government has loaned millions of dollars to NIB to other government agencies. What is the payment schedule with respect to that, because we definitely need to know which departments, which agencies have not repaid the government. All of that has to go in tandem with the rate that has been announced.”
#Responding yesterday, Mr Laroda said: “The prime minister, the leader of the opposition and myself, we are all on one accord on that. The government should lead on being compliant.”
# “The ones who have promissory notes, there have been agreements. I can’t give an exact date. But they, the prime minister, has made it very much an urgency. And I think, if I’m not mistaken, maybe two of those funds would be coming from finance or it wouldn’t be as if they would be sent in to us. Those funds would be sent directly from the Ministry of Finance. And so those payments would be insured.”
# Mr Laroda reiterated that multiple contribution rate increases would be needed to stabilise NIB.
# “It wouldn’t be ad infinitum until we are at 100 per cent,” he said. “There will be multiple increases. Let’s just use a figure, it’s going to be eight per cent in total. So, rather than put the whole thing out, we do it incrementally and so it doesn’t create such a shock.
# “So 1.5 per cent for the minimum wage person at $260 is $1.95 per week. The person on $740, which is the highest insurable wage, their portion along with the employee will be $5.55. And so if you do it incrementally, it’s not as shocking as if you just try and go to that figure that will put you in a position where, within one year or two years, you will be in a position financially to stop bleeding.”

He agreed with Free National Movement Leader Michael Pintard that the Davis administration must crack down on this.

His comments come after the government announced that NIB contribution rates would increase next year.

“The government has an obligation to follow the law,” Mr Pintard told reporters yesterday. “We know that this administration, they are serial law breakers, so we have very little expectation of them following the law.”

He continued: “The government has loaned millions of dollars to NIB to other government agencies. What is the payment schedule with respect to that, because we definitely need to know which departments, which agencies have not repaid the government. All of that has to go in tandem with the rate that has been announced.”

Responding yesterday, Mr Laroda said: “The prime minister, the leader of the opposition and myself, we are all on one accord on that. The government should lead on being compliant.”

“The ones who have promissory notes, there have been agreements. I can’t give an exact date. But they, the prime minister, has made it very much an urgency. And I think, if I’m not mistaken, maybe two of those funds would be coming from finance or it wouldn’t be as if they would be sent in to us. Those funds would be sent directly from the Ministry of Finance. And so those payments would be insured.”

Mr Laroda reiterated that multiple contribution rate increases would be needed to stabilise NIB.

“It wouldn’t be ad infinitum until we are at 100 per cent,” he said. “There will be multiple increases. Let’s just use a figure, it’s going to be eight per cent in total. So, rather than put the whole thing out, we do it incrementally and so it doesn’t create such a shock.

“So 1.5 per cent for the minimum wage person at $260 is $1.95 per week. The person on $740, which is the highest insurable wage, their portion along with the employee will be $5.55. And so if you do it incrementally, it’s not as shocking as if you just try and go to that figure that will put you in a position where, within one year or two years, you will be in a position financially to stop bleeding.”

 

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