Minister to Review Use of Equalization Fund

Minister of Local Government and Community Development, Hon. Desmond McKenzie, says he is going to review the use of the Utilization Fund by the Parish Councils.

The Minister  explained that this will be done to find creative ways to maximize the use of the money.

The Equalization Fund was created in 1997 and is financed by a 10 percent of the money collected islandwide from property taxes. All 13 parish councils are allocated a percentage of the fund to carry out critical infrastructural work in their various divisions.

Mr. McKenzie, who was speaking at a recent meeting with Secretary Managers of the 13 councils at the Hagley Park Road offices of the Ministry, said there has to be a change in how the fund is utilized, and he is determined to lead from the front in the exercise.

“It can’t be just all about cleaning gullies, drains and chopping trees.  There  must be meaningful ways in  which we can use the  fund that will contribute to your revenue… building something that you can either rent or do something with it that can give a fair return,” he told them.

The Minister stressed that it  is  incumbent on them to take a “new look,” as the dedicated source of revenue that is received should assist in the generation of more revenue. That is the only way the councils will be able to meet their obligations, the Minister added.

“We still owe the JPS $3.7 billion for street lights and garbage can’t be collected in an effective way, because we don’t have the trucks. Where we can improve our capacity to earn revenue, we have to do it,” he emphasised.

Parish councils, the Minister said, will have to demonstrate their ability to survive in this new dispensation of governance and the delivery of service to the people.