Dear Editor,
I refer to the headline, ‘City council to seek $600M bailout from gov’t’ (SN, Nov 11). There is no other route available. It is necessary that this face-saving temporary curative step be taken; it should have been taken a while back. This is so when the calamitous coalescing circumstances are considered.
First, a public-private partnership might have offered a way out, except that the private sector would not have wanted to venture into such a bottomless pit or to touch with a fifty-foot pole. Even if thought about, I believe that their terms and conditions would have been harshly restrictive.
Second, in view of the financial distress ‒ severe and now perennial ‒ of City Hall, no commercial enterprise would extend more than a token helping hand for the record and cameras, the sum of good corporate citizenship. More specifically, for profit financial institutions would not be able to justify (on any grounds, save for the altruistic) providing stopgap funding. Make no mistake, that is what it is, until the next go around and the professional hair-pulling and tears. In more sophisticated municipalities, instruments such as Revenue Anticipation Notes (RANs) or Tax Anticipation Notes (TANs) would be used as collateral and enticement. The problem is that here such thinking and practices are light years away. Worse yet, there is no faith that any such local RANs or TANs would be worth more than the paper tendered. In other words, there would be considerable doubt that City Hall would be able to collect and honour commitments.
I read that the staggering sum of twenty-two billion dollars is owed, and mainly by businesses. I do not think that it is either inaccurate or unfair to say that personal moratoriums were negotiated at the expense of collection. As an example, fifty million is due, and one hundred thousand is what it takes to make it non-existent for the time being. Everyone is happy for the next several months, or until next year (and the next visit) comes around. That is my take on why this bloated sum was allowed to balloon to the state that it is in now. In other circumstances, City Hall has shown itself to be ruthless and resolute, especially when the little people are involved. It could be pavement vendors or occupants of Merriman’s Mall. Thus, one must question the robustness of its energies and efforts at genuine collection from the business sector; I suggest it is largely lacking. Now I return to this latest episode of municipal panhandling and outstretched palm to central government.
Third, property revaluation is necessary, timely, and appropriate, even though a pinch follows. It is as relevant as parking meters. The problem is that revaluation is a time-consuming process; the garbage is every day and now. Hence, the financial brinkmanship of the political potentates and management failures at City Hall is not understood in the least, as central government had to be in the mix from near the inception. I find today’s behaviour to parallel that of a serial political bumbler who verbally visited a plague upon the city. Now for the other side of this predicament and what ought to be the response of the donor agency-in-waiting.
Central government has no choice. If it plays hardball (unlikely), with City Hall, then citizens suffer, and its own works are reversed. The Granger administration would get a black eye, and a dirty smelly odour. When all is considered, central government and local government are stuck with each other in one contentious, financially demanding and abusive relationship. Where else can the latter go? And what else can the former do, other than deliver?
Having taken this stance, I urge central government to attach hard and binding terms to any monies advanced; or it is like crediting family and friends –there is no looking forward, other than for more of the same. It must be made clear that it is a loan and not a subsidy. As I write, the thought intrudes that this nation could be progressing from settled individual barrel mentality to a growing corporate bailout one. In essence, it represents the same outlook: you have, therefore give; if GuySuCo, why not Georgetown? If for them, why not us, too? After all, this is about family.
As before, my position is that central government has too much at stake to ignore or dismiss or abandon City Hall to its deserved purgatory. I so exhort. Think citizens. Then think visions and programmes and reputation. Sometimes some tough decisions and undesired positions have to be embraced for the greater good, and the sake of the family’s name. This is one of such situations. The check must be in the mail, all 600 million of it and via express delivery.
Last, there must be precautions (as mentioned earlier) to deter the mighty mandarins from Charlotte Street from coming again with open empty hand. They will.
Yours faithfully,
GHK Lall