GOVERNMENT HAS a "serious cash flow problem" and is finding it difficult to pay wages and other bills promptly, says the Opposition Democratic Labour Party (DLP).

But Government has dismissed the claim as "ridiculous".

The idea of a cash crunch was raised by DLP spokesman on economic matters, Dr David Estwick, at a Press conference in Parliament Buildings yesterday.

He said teachers, nurses, prison officers, pensioners and some creditors were among the casualties of the cash flow problem, with payment delays stretching into months in some cases.

However, Minister of State in the Ministry of Finance, Clyde Mascoll, told the WEEKEND NATION: "The comment about a cash flow problem is ridiculous. There is no cash flow problem."

Mascoll said if there were a money problem, Government had access to a $244.2 million overdraft facility at the Central Bank "and we are nowhere close to it".

Estwick however charged that "the position right now is that when one group is paid, another group can't be paid".

According to him, some creditors had not been paid for six or seven months.

It could not be argued that late payment was associated with accommodating new people in the system since prison officers, teachers and others who had complained of persistent late payment had been "in the system for a long time", Estwick said.

"The cash flow problem is there, and it will get worse if Government does not find its hand on some money," he added.

Mascoll said, however, the late payment of nurses and prison officers had to do with administrative hitches, rather than a
shortage of cash.

He said teachers had been brought on "a little too late in August" and there was not sufficient time for them to be fully processed, allowing the Accountant-general to meet the payment day in September.

"As a result, they have had to be paid manually . . . but this will not occur next month or any other," he added.

On the other hand, Estwick saw the cash flow "problem" as a reflection of the "fundamental economic mess" the Government had made. (TY)