No more
‘Butch’ Hendrickson calls for Education Tax to be pulled from Consolidated Fund
NATIONAL Baking Company Chairman and CEO Gary “Butch” Hendrickson on Thursday called for the Education Tax to be directed exclusively to the sector instead of being placed in the Consolidated Fund through which government revenues are deposited and withdrawn for expenditure.
Hendrickson, known for his strong advocacy for improvements to Jamaica’s education system, made the call after being conferred with the honorary degree of Doctor of Education in Leadership by The Mico University College, during its presentation of graduates at the university’s Maresceaux Road campus in St Andrew.
Pointing to the critical importance of education to the country’s development, Hendrickson said: “If we truly believe in the importance of education to the growth and development of Jamaica, Education Tax should not be going into the Consolidated Fund. Education Tax should go directly into a bipartisan fund with the appropriate legislative structure promulgated into law for disbursal and monitoring. Achieving this will demand bipartisan support, robust oversight, and transparency at every single step of the way.”
To achieve that transparency he suggested that such a fund would be required to report to the Jamaican people every 30 days and, through an operating statement, give updates on achievements and projections.
The recommendation was greeted with applause and nods of agreement by the teacher graduands.
Education Tax was introduced by the Edward Seaga-led Administration in 1983 to ensure that a pool of funds would be constantly available to assist with the advancement of education in Jamaica.
The tax is charged at the rates of 3.5 per cent for employers and 2.25 per cent for employees, after National Insurance Scheme deductions and contributions, to an approved superannuation scheme. Only the employer’s contributions are tax deductible, and the amounts paid are not refundable to either the employer or the employee.
However, over time the amounts collected from the tax were directed to the Consolidated Fund, sparking criticism and questions as to whether the tax was actually being used for the stated purpose.
In his address to the Mico graduands, Hendrickson said it is now time that Jamaica finds the ingredients for a sustainable education system to lay the foundation for taking the country from Third World to First World status.
He pointed to the success achieved by the Economic Programme Oversight Committee (EPOC), established in 2013 to monitor the implementation of Jamaica’s economic reform measures under its agreement with International Monetary Fund, as well as the voter identification system developed to contribute to free and fair elections, and suggested that similar bipartisan focus is needed for education.
“When faced with economic crisis our leaders sat down, made tough choices, and developed a mechanism for accountability. EPOC was not a commission, I beg to differ, it was a commitment by our country,” he argued.
“We need a national commitment on education. It cannot rest on the shoulders of politicians alone; it requires a collective will,” he said.
“I know our education system has faced setbacks. I know we’ve lost precious time — years — especially during the COVID-19 pandemic. We know all the excuses. It is now time for solutions,” Hendrickson added.
He urged the Class of 2024 to understand that the achievement of macroeconomic stability which Jamaicans sacrificed to accomplish “can only bring true benefits if we convert this hard-earned capital and resources to great increase in gross domestic product, to increase our productivity and our national earnings”.
“Only human beings can do that — our educated Jamaica human beings, our young people, properly equipped with analytic and creative skill sets.
“This must become our mission, our calling,” Hendrickson said.
“Think about it this way: The quality of your degree or certification is not the letters but the degree of your dedication, the degree of your resilience to face life’s challenges, and the degree of your lifelong commitment to growth and impact.
“In a world full of ‘good enough’, you get an opportunity to be exceptional. Be the educator, the mentor, the leader who leaves a lasting legacy.
“As a nation we need to get past the ‘me cyaan bother’ attitude. We need to bother. We need to activate excellence. We need to plug into a joint effort to move Jamaica forward.
“We need to get up from off the verandah, get up off the sidelines. We can’t just sit idly and say, ‘A so it go.’ No sah! Set new norms, new traditions, and actively participate in creating the best future for Jamaica,” he urged the graduands.
“There is work to be done. Let’s adopt a spirit of ‘Let’s fix it’. Let’s ensure every child has a teacher who believes in possibilities, and every classroom a place where dreams are realised.
“Today I challenge you to push forward, be relentless in your pursuit of professional excellence, demand high standards, create meaningful change, be somebody’s hero, unlock potential and build a future worthy of the children we serve. And when you succeed — and I have every confidence that you will — please remember to send the elevator back down.”