Thursday, December 8, 2016


Prominent businessman, Marc Houareau, voices out on social media against the 13th month salary about to be forced on the private sector by the Government.

“If this bill passes, both PL and LDS will be responsible for many jobs that will be lost in Seychelles.
There is an air of entitlement in this country that needs to go away but it continues to linger because of politicians whose judgments are blinded by trying to win votes. Most do not understand how businesses operate, let alone the difficulties of doing business in Seychelles today. Competition is global today, and margins are being eroded year after year. Adding another unnecessary cost burden instead of addressing the minimum wage issue to alleviate poverty in the country is a huge mistake. This is not the way forward to ensure future employment and to grow our tax base. This political expediency bill will simply kill jobs in the country and wages will be frozen for many workers. Adding 8-plus percent to a company's operating cost can only cause prices to escalate as many will have to increase their prices in order to afford this new expense, and the customer/consumer will feel the pinch even more.

Lest we forget, former President Rene also dropped a similar bombshell many years back with his 5-year tenure compensation package which until today, remains a huge burden to most private companies in the country as it became an overnight, unplanned liability on their balance sheet. Now add the highest business tax (30%) in the region, VAT, CSR, and other increasing operating costs, and it does not paint a rosy picture for private sector growth in the coming years.

Meanwhile, the Government continues to expand and overspend, continues to compete with the private sector, and has doubled its budget in 5 years to the tune of SR 7.9 billion. And let us not forget our local and foreign debt of some SR 10 billion which seems to be forgotten by many in Government. But who knows, maybe just before the next election, our smart politicians will come back to the Assembly to propose a 14th month salary as by then, the voters would need a new incentive.”

Source: Facebook