The fiscal deficit in Costa Rica has finally emerged from the closet after years of immurement. The previous government tried to take measures to resolve the problem but, having no majority in the National Assembly, could not get its legislation passed.
The new government…a sort of shabby rethink of the Ministry of All the Talents…has half a chance, as even the blowhard opponents of reform in the previous National Assembly feel the hot breath of the financiers on their backs and worry about a reduction in their personal wealth.
Accordingly measures have been proposed to impose tax on the proceeds of property rental – collapse of stout rentiers – the replacement of sales tax by Value Added Tax on both goods and services – collapse of stout lawyers and dentists – and a measure which was probably proposed by those holding crucifixes and garlic as a prophylactic – the removal of some of the privileges enjoyed by public service workers above and beyond those enjoyed by those in the private sector.
No one has suggested looking closely at the tax efficient co operative status of big firms which are co operative only in name, like Dos Pinos whose dairy products sell in Costa Rica for double the price that they command in, for example, Panama…
No one has suggested having a blitz on big firms who pay little or no tax until Hacienda – the Tax Man – gently suggests that they might like an amnesty by which they pay about twenty per cent of what is owed…..
No one has suggested having a look at the agricultural subsidies which keep the big rice producers in the pink – including the ex President who expanded the public sector enormously in order to bolster his party’s power base – while abstracting water from the surrounding population…
Which is why most of the members of the National Assembly are in favour of the reforms as they do not touch their precious pocket books.
The public service unions, however, are distinctly unchuffed by the proposals.
They are quite attached to their bonuses for turning up to work on time, for maintaining confidentiality, for not taking a second job in their spare time, for having the government pay for professional education for which they receive a further bonus once the course is completed, receiving aid to educate their children, having their car, their mobile .phone and their food in working hours paid for from public funds and any number of other odds and ends, depending on which public body employs them.
People in general are demanding an end to institutionalised profiteering from the public purse….in particular calling for a halt to the ‘luxury pensions’ by which university professors, judges, top staff of the state banks and other institutions receive enormous monthly sums on their retirement, regardless of whether or not they have made full payments to the appropriate pension schemes.
Oddly enough, while the government has proposed some modifications in this respect neither members of the National Assembly nor the union bosses are very interested as both groups look forward to receiving such pensions….one union boss retiring and taking his monster pension the day before calling his members out on strike.
a national strike in Costa Rica is like a walk in the park…which generally it is, as in the capital, San Jose, the marches start at the Parque Merced
then proceed along Avenida Secunda – the main traffic artery of the capital – past the central park, then uphill to the national park by the National Assembly which they picket assiduously while the fat cats within vote through the legislation.
It has all been relatively peaceful…on hearing of the strike, trained as we were in France, we shot out to fill up the car, buy gas tanks and stock up on animal feed….but within days the blockades on the refineries had stopped and supplies were getting through…
The unions have blocked roads…but not for long….the President was jostled as he left the Teatro Nacional…Costa Rican Presidents don’t have much by way of bodyguards…but the legislation has rolled inexorably through the National Assembly and will shortly be presented to the Constitutional Court.
Here, however, it might meet an obstacle more effective than the unions….
Judges and many of the staff of the Justice Ministry have the union perks…and the luxury pensions. They are not at all eager to see these go up in smoke.
Already some self righteous spokesperson has warned that if the judges are deprived of their perks they may feel obliged to accept bribes…
As a friend said…what, then is obliging them to do so at the moment and what would be the difference?
Feeling that this approach is not receiving good publicity the judges have now announced that, given the separation of powers under the constitution, the justice ministry is self governing and so can decide for itself on the terms of employment of its members…..
While I am not aware that ‘Through the Looking Glass’ is required reading for employees of the justice ministry that pronouncement could have come straight from the lips of Humpty Dumpty.
“When I use a word,” Humpty Dumpty said, in rather a scornful tone, “it means just what I choose it to mean—neither more nor less.”
“The question is,” said Alice, “whether you can make words mean so many different things.”
“The question is,” said Humpty Dumpty, “which is to be master—that’s all.”
And just in case, the presiding judge of the constitutional court has declared that as the proposed legislation involves changes to labour contracts, he is not at all sure that his court is legally able to hear arguments ….
Strikes here are completely different beasts to those in the U.K.
Until a strike is declared illegal by the courts strikers continue to be paid. When their strike is declared illegal they have three days in which to appeal, or to return to work. The norm is for them to return to work, under the cover of an agreement with their employers that they will not suffer any financial liability for going out on strike illegally. In the U.K. the union pays its members….
The police, while being unable to strike, have a great deal of sympathy with the strikers…having similar perks to defend…unlike the police in England who were paid double time to break the strikers….so violence is rare.
But there are similarities with the U.K. too…the fat cats look after their own.