The “the limited progress of the Government in acting on our previous recommendations” is worrisome. That the “the key concern for policy action remains domestic: the island’s shrinking workforce and ageing population will put ever-increasing pressure on both taxes and spending” is not news. We all know this, or at least we have all been told this. Some may refuse to accept it for personal reasons.

In one sentence the independent panel of experts has confirmed what I have been saying for some time, which is this. “On tax reform, we regard 2019 as a year of missed opportunity, not just because of the further delay in meeting the target for budget balance, but because of the absence of significant tax reform along the lines of that proposed by the Tax Reform Commission or this Panel, as well as the de facto easing of the government’s fiscal targets facilitated by the suspension of contributions to the Sinking Fund.”

I will conclude now with this comment from the Panel.

“Financing conditions in international markets can change quickly, either because of a loss of confidence in the Government’s fiscal strategy, or as a result of unrelated market developments. Nor, in our view, should the Government take comfort in the relatively sanguine attitude of the ratings agencies, which are generally a lagging indicator – that is, by the time they raise the alarm, it is already
too late.”