KINGSTON, Jamaica — The second of the three election debates kicked off tonight with Dr Nigel Clarke from the Jamaica Labour Party (JLP) and Mark Golding from the People’s National Party (PNP) facing off on issues relating to finance and the economy.

Golding opened by listing the achievements of the PNP on the economy just before the JLP took power in 2016, where the PNP had turned the country around, and restored its international reputation. He said unemployment and poverty had been trending down, the Jamaica Stock Exchange was the number one stock exchange in the world, and the architect of the recovery was PNP leader Dr Peter Phillips, who was awarded man of the year.

“The JLP inherited a situation well poised for growth,” he said.

But Dr Clarke rebutted, stating instead that Dr Phillips was an “architect of destruction”, and over the past four years under Prime Minister Andrew Holness’ leadership, a new Jamaica has emerged.

Listing the JLP’s achievements, he said there has been record low unemployment, low poverty, reduced taxes, and taxes did not go up even in the face of a pandemic.

“We now face the greatest crisis of our lifetime and we are best prepared to lead Jamaica to a strong recovery,” he said.

Golding was then asked about the PNP’s WEALTH plan, which promises, among other things, relief for Jamaicans in bill payments, and how the party planned to fund the programme when revenues were expected to fall after the economic fallout from COVID-19.

Golding assured that his party had looked at the budget, and will use the discretionary component of the budget.

“We don’t intend to levy any new taxes. We can’t impose taxes at this time. We will prioritise our people’s agenda,” he promised.

The plan was blasted by Dr Clarke as a “big bag of tricks”, and he warned those who may fall for the tricks that the resources of the government come from the people.

“Taxes are the only way for them to finance this,” he warned.

But he was challenged with a journalist’s question about the JLP’s manifesto, which also includes billions in grants and support packages.

Dr Clarke assured that the JLP’s 10 point recovery plan introduces new central govt expenditure.

Golding rebutted, stating that the JLP programmes will cost billions, and the party hadn’t credibly answered how they will finance it.

He promised that the PNP’s Quality Living plan will be paid for out of the existing budget, and through reallocated funding.

Asked about the slide of the Jamaican dollar, which has passed $150 to $1US, depreciating 12 per cent since the first COVID case in March, Dr Clarke advised that the JLP was committed to the maintenance of macroeconomic stability.

“This forms the first plank of our recovery plan,” he said, explaining that it entails the maintenance of low, stable and predictable inflation.

He reassured that the central bank has $3.7 billion in gross reserves, “more than we’ve ever had in history”, and in addition, $2.8 billion of Net International Reserves, representing more by way of import of goods and services than we’ve ever had. He said the central bank governor has committed to achieving inflation targets, and is prepared to do what’s necessary to ensure that the exchange rate doesn’t interfere with the inflation objective.

But Golding reminded that the dollar devalued by over 14 per cent, adding to the national debt, and reserves have fallen.

“The dollar slide affects people in their pockets,” he said. “We believe the foreign exchange market needs tighter regulation.”

Asked what projects the PNP would prioritise if it comes to power especially with the economic impact of COVID, Golding said there would be a phased implementation of pledges — with a focus on the ones that will stimulate the economy and strengthen the social safety net. He said the $70 billion plan will be phased appropriately.

Asked about the PNP’s tax policy and whether they will roll back the JLP’s ‘1.5’, Golding introduced the plan for a “balanced approach” to taxation, saying he believed that those people “who can bear should bear”.

“We will not roll back the ‘1.5’; it’s part of the tax and people are used to it. We want to bring down the tax rate by improving the economy,” he said. “We believe in a balanced approach to taxation, not an abolition of all direct taxes, but a balanced approach.”

A question from social media raised the issue of regulating banking fees, and Golding agreed that the banking system is inequitable. He said the PNP’s Fitz Jackson had introduced legislation to address this, and the JLP blocked it.

“We intend to introduce it again so customers are protected,” he said.

Dr Clarke rebutted, stating that the JLP’s plan was to introduce consumer protection in the financial services in a broader sense, with an avenue for complaints, so the appointed authority can levy sanctions, including restitutions and fines.

Regarding how the parties expected to ensure that the economy becomes less reliant on tourism, after the industry fallout from COVID, Golding said Jamaica had to find a way of expanding and growing other areas that can supplement the loss from tourism — including agriculture food security, “an area where we feel there’s considerable potential for growth”.

He said there was also opportunity in the global logistics area.

In the final segment, where both parties were allowed to ask the other questions, Golding, whose party promises Dr Clarke had warned Jamaicans that they couldn’t trust, said the JLP government had promised to double minimum wage, among other promises, but instead had “delivered corruption scandals in abundance”.

“You have no credibility to discuss the issue of trust,” Golding said. “The government of Andrew Holness is the most corrupt in the history of Jamaica. The Office of the Prime Minister (OPM) is a holding cell for corrupt politicians.”

He said the PNP had shown it was serious about corruption, by developing the Major Organised Crime & Anti-Corruption Agency, and conceptualising legislation for the Integrity Commission.

“Our record stands for itself,” he said.

But Dr Clarke insisted that Jamaicans had stated that they trust Holness to lead, and the JLP had delivered for the people.

Dr Clarke then posed his question to Golding, asking about the economic problems Jamaica faced under the PNP, where the exchange rate was declining every single year, and growth averaged 0.4 per cent.

“You have a record of promises,” he said.

But Golding indicated that the PNP, in the last administration, was focused on turning the economy around, and establishing a platform for economic growth and development.

In closing, Golding said what Jamaica is facing is the deepest crisis the country has ever been in.

He said a PNP government would take astute measures to turn the country around.

“The last time we were in crisis was 2011 — the JLP brought us in that crisis. In 2011 Jamaica turned to the PNP because they knew we would deliver,” he said.

“This government inherited a situation where Jamaica had been righted,” Golding said. “The people need the PNP again.”

But Dr Clarke said the JLP administration was prepared for the global crisis, and protected lives and livelihoods.

“Do we return to the dark and uncertain days [we had with the PNP], or do we continue with the government that listens, responds, and works with the people to get things done?” he asked.

“We have a carefully thought out plan that we can work [with] to recover to be stronger. We are here because we care for you, and we demonstrate it with our actions,” he said.

Tonight’s moderator was The Gleaner’s Damion Mitchell, and the questioners TVJ News Editor Dashan Hendricks and Kalilah Reynolds from Nationwide News Network. Marjorie Gordon from Nationwide News fielded comments from social media.