In a significant policy announcement, Barbados Labour Party (BLP) representative Kerrie Symmonds has revealed plans to address chronic payment delays affecting businesses working with the government. Speaking at a political gathering in Welchman Hall, St Thomas, the St James Central candidate acknowledged the severe financial strain caused by the government’s inconsistent payment practices, which often leave contractors waiting months for owed compensation.
The proposed solution involves implementing a financial mechanism known as factoring, designed to bridge the cash flow gap for businesses. Under this system, approved financial institutions would provide immediate payment to contractors for government-owed debts, with the government subsequently settling these debts with the financial institutions according to its own timeline.
Symmonds illustrated the practical benefits using a hypothetical scenario: a business awaiting $50,000 in government payments could receive most of these funds immediately through a financial intermediary rather than facing months of operational uncertainty. While acknowledging that businesses might receive slightly reduced amounts (approximately 4-6% less) to account for the financial service, Symmonds emphasized that this compromise represents a significant improvement over the current system that jeopardizes business continuity.
The candidate highlighted how this approach would enable businesses to meet payroll obligations, purchase necessary inputs, and maintain operations without being constrained by government payment delays. Financial institutions such as Fortress and Signia are expected to participate in this proposed program, providing vital liquidity to the contractor ecosystem while awaiting government reimbursement.