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Castellanos Says GOB Can Afford It
posted (January 24, 2013)
So the APSSM and the PSU are down to demonstrate - while also still ready to negotiate. And those negotiations will be based on numbers - bearing in mind that while working with the same figures, the bottom line for the unions is far different than Government's. Take for example the cost of the increment package. Government says - and you've seen ads about this - that it will cost over three hundred million dollars over three years. But the unions say those three years will cost - at the most - 200 million dollars. And more importantly they say that with sound economic stewardship, government can afford it:..

Jose Castellanos, President APSSM
"This year we had 7% growth as opposed to what they were saying in December which is 3.5% - that means 35 million dollars more in additional revenue which we it and now will show it to them. In fact this year the economy grew as much as it grew in 4 years."

Jules Vasquez
"Remember we still have a financing gap."

Jose Castellanos, President APSSM
"A financing gap of 34 million dollars. Next year you will get the full brunt of the bond, so you will get 66 million dollars in relief. Every time the economy grows by 1% you have an addition of 10 million dollars in revenue. If we grow another 7% next year, we will have 70 million dollars more in additional revenue plus 66 million dollars' worth of super bond savings, so there will be no deficits - that's why I am saying that we are prepared to link the adjustment to the surplus which PM made last night. Based on those figures and base on what he said yesterday the salary adjustment is possible without the objection which the government has always been saying - that it would employ additional taxes and fees, increases in GST - that will not happen. It will come from the growth in the economy and from the state in the super bond."

Those figures will be the subject of what IS sure to be spirited debate when negotiations resume - presumably after next week's demonstration.

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