What the Budget prescribes
There are no new taxes but some fees and licences will be increased (see below). Tax holidays will be re-introduced for pioneering industries. Laws will be passed to regulate securities trading, update the insurance industry, set up a private sector development bank and to provide a structure for mortgage financing to push the housing drive. There is no wage freeze. Government will soon begin negotiations with the public sector unions for wage increases for l998. Government also expects to have a wages policy in place later this year after further consultation with the union. Measures to stimulate private sector development l. Securities legislation In l998, the Government will introduce legislation for securities trading and regulation. Currently, the main source of financing investment is the commercial banking system and financial intermediaries. The new legislation will create the framework for the establishment of a securities market. This will provide another avenue for financing in the public and private sectors. 2. New insurance laws The insurance industry performs an important role as a mobiliser of investible resources and holds a sizeable part of the assets of the banking system. The industry is operating under the Insurance Act l970. The Government proposes to enact new regulations to improve competition and protect consumers, and which will enable the resources of the industry to be put to more productive use. 3. Private Sector Development Bank There is a dire need for the private sector to have access to long-term financing. Many companies borrow short-term funds at high interest rates for productive purposes. Often these funds have to be repaid before returns are realised on the projects. In l998, the Government will work closely with the private sector to etablish the legislative framework for a private sector development bank. 4. Tax Holidays In l994, tax holidays were abolished. In an effort to stimulate pioneering activities and open up new locations, for example, the intermediate savannahs, tax holidays will be reintroduced. Measures to stimulate the housing sector l. A Mortgage Financing Act One constraint to the housing drive is access to affordable mortgages. The government will, in l998, enact legislation to cater for mortgage financing. The main objective is to increase the availability of concessional lending resources for housing. The intention is to give financial institutions incorporating under this Act the same concessions as those currently enjoyed by the New Building Society (NBS). Measures to compensate labour l. Wage increase In l998, the government expects to have a wages policy in place. During l997, discussions were held with the unions representing public servants with a view to finalising a wages policy. It is hoped that these discussions can be concluded quickly, so that the policy could be in place before the end of the year. There will be no wage freeze in l998. The government has had tentative discussions with the Public Service Union and shortly will begin negotiations for wage increases for l998. Members of the disciplined services, teachers, pensioners and recipients of public assistance will also benefit from the block funds budgeted for this purpose. 2. Key supplements The Government has committed itself to pay $l80 million over three years to certain categories of officers whose posts are deemed to be vital in the civil service. Last year, approximately $70 million was spent on key and critical positions. About $60 million should be paid this year. Poverty Alleviation $l50 million has been budgeted to continue the poverty alleviation programme in l998. Subventions to NDCs $l95 million has been budgeted to assist Neighbourhood Democratic Councils in the implementation of their programmes. Fees and Licences The following fees and licences have been increased: Shot gun $2,000, Pistol and revolver $500, Rifle combination $5,000, Removal of licence $7,500, Registration of premises $l,000, Certificate of character $500, Brand application fees $500, Pound fees large animals $l,000, Pound fees small animals $500, Pound fees overnight $l00, Cost of copy of report $500, Dance processing fees $500, Cost of precept/ID card $l,000, Old metal dealer licence $40,000, Cost of finger print chart $500, Sales of blanks $200, Sale of passport form $200, Sale of renewal form $l00, Learner driving fees $l,000, Storage of explosives $5,000 and Airport departure fees $2,500. 
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