STATEMENT ON THE APPROPRIATION BILL
MADE BY
SENATOR THE HONOURABLE ASOT A. MICHAEL
LEADER OF GOVERNMENT BUSINESS IN THE SENATE

INTRODUCTION

Madam President, I rise to make my contribution to what thus far has proven to be one of the most contentious and acrimonious Budget debates in living memory in this Country. Whilst the House of Representatives battled over our fiscal deficit, an issue that this Honourable Senate will no doubt address, I became increasingly concerned and alarmed that there was another gap that must of necessity be closed if we in this fair land are to come to grips with the realities that confront us.

Indeed Madam President, not only has recurrent revenue been outstripped by recurrent expenditure, but the virtues of decency, integrity and good sense have been swallowed up by the vices of intellectual dishonesty, baseless allegations and character assassinations. Those three witches - lies, half truths and slander - rose up from the ranks of the Opposition, but also from the Back Benchers of the Labour Party Government, who themselves lacked the courage to be honest, who placed political popularity over public duty and who set what was expedient above what was right. Innuendo, venom and bile, Madam President, have now become the stock in trade of the current sitting of Parliament, and it is my sincere hope that the level of engagement will be elevated and the adversarial nature of our politics be less evident, as debate on the 2003 Budget continues in this Honourable Senate.

THE CONTEXT

Madam President, the difficulties that face Antigua and Barbuda are not unique to us. The World Bank has already articulated what we know to be true: that external forces have battered the economies of Latin America and the Caribbean. In this regard countries like Antigua and Barbuda have been especially affected by unfavourable developments in the external environment. With the downturn in the global economy there has been a significant decline in foreign direct investment (FDI) to developing countries and this occurrence has been described in a recent World Bank report as "the most sustained fall in foreign direct investment in developing countries since the global - recession of 1981 - 83". With particular reference to infrastructure, the report in question also indicates that private foreign investment is down 25% from 1997 and projects undertaken in respect of power generation, water systems and road works are not attracting the necessary private capital.

Madam President, this relatively recent reversal in the FDI flows has contributed directly to the significant deterioration in the fiscal performance of small developing countries such as ours, as government~ have been forced to resort to domestic and external sources for budgetary support, and for financing Public Sector Investment Programmes. This, Madam President, is the context within which the 2003 Budget Estimates have been prepared and presented.

GOVERNMENT-LED GROWTH

Madam President, with limited resources but with an abundance of talent, Antigua and Barbuda has managed to maintain an enviable record of growth, development and prosperity that is difficult to match. Comparisons with other sovereign member states of the Eastern Caribbean Currency Union, show that Antigua and Barbuda's estimated growth rate of 2.7% for 2002 is the highest in the sub-region. What is more, our projected growth rates for fiscal years 2003 and 2004 of 3.6% and 4.0% are also higher than those projected for the other independent territories over the same period.

Our superior record of growth and economic prosperity, Madam President, must beg the question, "what is so special about this country of ours, that it continues to defy the odds
and to record positive growth rates year after year?" The Honourable Prime Minister, in
his 2003 Budget Statement eloquently provided the answer when he stated: -

"The Government of Antigua and Barbuda has involved itself directly in the
productive sectors of our economy and continues to do so. The landscape of our
Country bears me out on this point for it is dotted with the results of our foresight
and innovation: the Royal Antiguan Hotel; the Heritage Quay Shopping Complex;
the Heritage Market; the recently commissioned Nevis Street Pier; and the Mount
St. John Medical Centre, just to name a few".

Simply put, Madam President, successive Labour Party Administrations have continued
to be the dynamo and catalyst that turn and stimulate the Antigua and Barbuda economy.
This situation must call into question the role of the private sector.

A SPADE IS A SPADE IS A SPADE

Madam President, our private sector over the years has played a very subdued role, and I
must be frank and describe their contribution .to national growth and development as disappointing. Their response to this portrayal of their involvement is predictable. Its
representatives will counter by laying all the blame for their dampened enthusiasm at the
feet of the Government. Madam President, I afu not intereoited in continuing the blame
game, but if we in this country are to be honest with ourselves and move forward, a spade
can be called by no other name but a spade. The private sector in Antigua and Barbuda,
as well as in the wider Sub-region, has not stepped up to the plate. This is not simply the
view of Lester Bird; it is also the complaint of most if not all of the other Heads of Government in the Currency Union. In this connection, representatives of the private sector might again respond by questioning the objectivity and validity of this criticism. I can assure its membership that independent, well-placed persons in Agencies having no vested interest in our internal politics have also made this particular observation. Our private sector, with the exception of members like the ABIB Group, the F.E. Hadeed Family and the E. Alex Benjamin Group of Companies, has not been inclined to engage in entrepreneurial endeavours. Rather, its members have conducted themselves more like the New Testament character who buried his money, in order to safeguard it; but I am also reminded of that other passage of scripture which admonishes, that whosoever tries to save his life might very well lose it. It is time, Madam President, for the Private Sector to be less mercantile and more entrepreneurial: for its members to become risk-takers; to become adventurous; to be daring; to be audacious; to be willing to leave the familiar and to pursue the unfamiliar. This was the policy that the Government chose to follow, when it became so directly and heavily involved in the productive sectors of our economy; but as is now clearly evident, it needs to undertake a more facilitative role in our country's growth and development process. No longer can the Government maintain its current employment levels; no longer can it continue to maintain debt at current servicing levels; and no longer can the Government continue indefinitely its existing levels of spending to stimulate the economy. In this connection, the Government shall continue to do all that it prudently can to encourage private sector business development by creating an environment conducive to investment. In short, we will do all that is possible and necessary to encourage entrepreneurship. We will expect, as the Honourable Prime Minister articulated, that unions and workers should make no unreasonable demands for wage increases, and that patience would be exercised 'when delays in payment occur. Madam President, our sustained development and growth are dependent upon the concerted involvement of all parties representing our various interests. Let us therefore rise to the challenge, determined to succeed.

ACCOUNT OF STEWARDSHIP

Madam President, thus far, the 2003 debate has seen great attention paid to two Ministries: the Ministries of Finance and Public Works. For reasons best known to the critics, these Ministries have borne the brunt of the criticism, or more appropriately, the denigration, that has been recklessly and wantonly thrown about. I get the distinct impression, Madam President, that there is a personal vendetta that is being waged in this regard, but I shall rise above that, for let me assure those persons that I shall rise like a Phoenix out of the ashes, and I shall rise to conquer for the People of this country. There have been calls for a report of my stewardship, and rightly so. I shall therefore attempt to address these calls.

MINISTRY OF FINANCE

Public Sector Employment

Madam President, when the Honourable Lester B. Bird, the substantive Minister of Finance appointed me as the Junior Minister with direct responsibility for Finance, the economy of Antigua and Barbuda was already in the midst of a difficult period. Indeed, the sub region, the wider Caribbean and the world at large had moved beyond the dizzy heights of one of the most vibrant periods of economic growth and were on a course of steady decline. Between January 2001 and now, world events have not been kind to us. You will recall the September 11th catastrophe - one from which Antigua and Barbuda has not yet recovered, as receipts from Tourism related activities continue to be disappointing. Add to this the ever-present demands of the OECD, which have adversely impacted our revenue streams from the Financial Services Sector. But to date, Madam President, we have survived - survived and thrived with only token assistance from multilateral institutions that have for some time not seen eye to eye with our fiscal policies, which have been designed to ensure that poverty is kept at bay, unemployment held at minimal levels and opportunities for realizing one's fullest potential are denied none. I am proud to say that by and large, and in spite of the many challenges that confront us, poverty and unemployment are low and that human development remains impressive.

Honourable Members of Cabinet are aware that as early as February 2001, I have been inviting technicians in the Ministry of Finance to make presentations on the state of the economy; not simply for Cabinet Members to listen, but in order that we, together, could consider solutions and find ways to move forward. One of the recommendations that the technicians continually make is that there has to be some measure of wage and salary reduction. Indeed, the ECCB has suggested reducing the wage bill to 50% of revenue, representing a savings of EC$ 100 million per annum. As a percentage of GDP at current factor costs Government's expenditure on salaries and wages is valued at 17% of GDP or 70% of recurrent expenditure, Madam President, the Government has not been unmindful of this fact. It is clear that the size of the public sector has reached unsustainable proportions; but what is equally pellucid is that Government's attempt to rationalize its workforce must not incur disastrous consequences.

Whilst the planned reduction in the workforce has not occurred, this has been due in no small part to the Government's concern that the seeds of social and economic disorder, such as poverty and unemployment, should fmd no fertile ground. Hence, the Government has continued to absorb into the Public Service new entrants into the work force from the annual pools of qualified and eager school leavers as well as workers severed from the private sector. We are proud, that even though the going has recently been tough, we continue to meet our obligations to our Public Servants. As the Honourable Prime Minister pointed out in his 2003 Budget Statement, the price of massive layings-off to effect a dramatic reduction in the wage bill would not be worth the economic and social backlash. In wrapping up the debate, he once again underscored this policy stance when he stated:

"My Government has made it clear that we do not support such an action. For, by
doing so, we would commit a very large number of our population to a life of
deprivation and poverty. We would also harm the private sector by reducing the
purchasing power of the nation, we would reduce savings in the banks, and we
would cause the economy to spiral downwards".

Madam President, we make no apologies for our employment policy, which over the past two decades has been directly responsible for the high standard of living that our citizens and residents enjoy today. However, Government has reached its optimal level of employment, and I take this opportunity to emphasize once again that the process of rationalizing the public sector is not simply "Government's problem"; it is a national dilemma, which requires the participation of all: Citizens, Government, and Civil Society, in finding the best way forward.

Debt Payment and Management

But Madam President, not only have we been meeting our commitments to the Public Servants, under the leadership of the Minister of Finance, commitments totaling US$198,390.45 have been met to Alenia, so that our radar at V.C. Bird International Airport could be operable; payments of US$213,208.50 to the Kuwait Fund for Arab Economic Development were made to fund our road programmes; the University of the West Indies also received payments totaling S$2,344,912.83, thus enabling our students to pursue higher education without let or hindrance; Moorjani Edghill has been paid in full, US$l ,294, 194.44, and as a result the Antigua and Barbuda Hospitality Training Institute has been turned over to the Government. Other significant payments have also been made to the ECCB, EC$7,000,000.00 for loan payments; the CDB for the Basic Education Programme, approximately EC$1,500,000.00; Kharafi, approximately EC$2,000,000.00 for works at the V.C. Bird International Airport; the Commonwealth Secretariat for outstanding dues, £150,000.00; C.O. Williams, in excess of EC$l,OOO,OOO.OO for capital works, DIWI Consulting International, US$260,677.47, also for capital works and European Investment Bank, US$452,823.89 for projects including the Solid Waste Project.

Madam President, effective debt management has become a fundamental issue in Antigua and Barbuda, especially as international events such as 9/11, and the war in Iraq, continue to affect the country's fiscal performance and leaving the Government little option but to resort to deficit financing to fund development proj ects and provide essential government services.

At its current level of more than 80% of GDP (est. 125% of GDP), Antigua and Barbuda's debt burden warrants the implementation of innovative management strategies that would correct the country's macroeconomic and fiscal imbalances. Towards that end, the Ministry of Finance will resuscitate the Debt Coordinating Committee to ensure that Government's financing requirements and payment obligations are consistent with prudential guidelines. The mandate of the committee, Madam President, is to manage all contracted debt and optimize the flows related thereto.

Madam President, our attempts to improve the management of our debt portfolio have already reaped dividends. As indicated in the 2003 Budget Statement, public debt servicing represents 17.6% of budgeted expenditure as Government, during fiscal year 2002, was able to successfully refinance a portion of its domestic debt. The resultant monthly savings of $ 90,682 testifies to the skill and dedication of senior officers in the Ministry of Finance in managing the efficient allocation of our scarce financial resources. The further repayment of $ 5.8 million last year, has also contributed to the reduction of the 2003 budgeted allocation for debt servicing.

Madam President, as the Honourable Minister of Finance pointed out during the House debate, there is nothing wrong with debt in itself. It is the capacity to manage the debt that is the issue and we are working tirelessly to improve our debt management capabilities.

The facts indicate, Madam President, that the most indebted nation in the world is the United States of America, and it continues to accumulate further debt.

In the 2003 budget in the United Kingdom, the Chancellor of the Exchequer announced that over the next five years it will be borrowing £98 billion.

What is important is that the debt should be managed so that its repayment is on the most favourable and manageable terms. That is what I announced we are doing in this Budget. We will renegotiate the terms of much of this debt which was contracted at a time of high interest rates, and we shall seek to reduce the interest to today's market rates in order to save millions of dollars in interest payments.

Madam President, as early as 1997 the Power and Desalination Plant, Foster Wheeler Sub-contract (IBI) loan was rescheduled with the interest rate renegotiated from 8% to 0% resulting in the forgiveness of $104,003,600 in penalty arrears. In 1999 the Credit Lyonnais loan relating to the rehabilitation of the airport was refinanced with a savings of $ 52,000,000.

As recently as 2000 the Devcon International loans were renegotiated. The interest rate of 10% was successfully reduced to 6%, realizing a total savings of $ 72,873,748. Our past successes have done much to bolster our confidence that the renegotiation of our external debt portfolio is possible. The improved management of our debt portfolio continues to impact positively on the country's fiscal position, thereby ensuring macroeconomic sustainability.

Madam President, these accomplishments were achieved in an unhelpful and at times even hostile environment. You will recall that when the Ministry of Finance launched its campaign to combat the pervasive culture of tax avoidance and evasion, how its officers were vilified and proclaimed to be "Tax Dogs". We had embarked on a mission of tax collection and decided to stop abuse and unnecessary privilege - to end fraud and to collect Government revenue. In so doing we were not popular, but we were right. But Madam President, those three ugly witches to which I earlier referred -lies, half-truths and slander - pranced around their poisonous cauldron, cooking up a brew of trepidation, suspicion and apprehension, aided and abetted by Mr. Lennox Weston. But the people of this country are not blind. They can see through the haze of political smokescreens to the reality of our national needs. They will know that in the world in which we live today. What is needed is not slick salesmanship, but decisive leadership; not popular politics, but positive profits. They are alarmed that 85% of corporation tax was paid by only 12% of registered companies in 2001 and are not fooled by the propaganda that the budget deficit is evidence of Government's inability to manage. Madam President, this year's budget deficit of EC$64,290,978.00 would be wiped out immediately if all taxes owed to "John Public" were paid. You may rest assured Madam President, that the campaign which commenced last year, will continue with undiminished vigilance and without fear or favour.

THE MINISTRY OF PUBLIC WORKS

Madam President, with regard to the Ministry of Public Works, I would like to refer once again to the question of reduced flows of FDI, and specifically to the effect that this reduction has had on agencies that are responsible for the delivery of power generation, water systems and road works. Antigua Public Utilities Authority is best placed to speak on matters pertaining to power generation and water systems, but with respect to road works the Ministry of Public Works can attest to the fact that concessionary funding has all but dried up. In this regard, the Government through this Ministry has had to fund recurrent and capital activities that are necessary for the construction and rehabilitation of main and secondary roads, drains and sidewalks. Loans even at commercial rates have been difficult to come by, but in the absence of such, the Works programmes of Government cannot be allowed to lapse.

Madam President, when concerns of overspending by the Ministry of Public Works are being raised, one must remember that there are always unforeseen circumstances which, depending on their nature, would require huge outlays of resources, or would prevent the Ministry in question from realizing anticipated savings. In this regard, please permit me to cite two such instances: the circumstances surrounding the Bendals Quarry and the situation in respect of Government buildings. Madam President, in addressing the concerns of the residents of Bendals, over one half of one million dollars was expended in bringing two teams of experts from the United States of America to Antigua and Barbuda to undertake a number of tests designed to ascertain the health status of affected residents and to determine the requirements for improving operations at the Bendals Quarry. These circumstances were absolutely unanticipated and therefore not provided for in the 2002 Budget Estimates; but the Government could take no other course of action than to expend the requisite funding to allay the health and environmental concerns of the Bendals community. Second!y, Madam President, with respect to Government buildings, savings of approximately $6 million were anticipated, but remain unrealized for the most part, as work is yet to be completed on a number of buildings including the old Ministry of Education building on Church Street, the Economic Development Building east of the Country Pond, and the Hadeed Building on Redcliffe Street. Funds that were provided for the renovation of the buildings in question, were diverted to address more pressing matters. When renovation on these buildings is completed, hopefully this year, further savings on rents and leases would be realized upon occupation by Government departments.

Madam President, much has been made of the purportedly high level of appropriation given to the Ministry of Public Works in the Capital Estimates. The truth is, that this Ministry is the executing Agency for many of the other Ministries. Hence, much of the spending that will be undertaken by Public Works will be with respect to the Rehabilitation of Sports Centres and Fields, and the Construction, Reconstruction and improvement of Government Buildings. I am prepared, Madam President, if it would allay the concerns of the critics, to recommend that any allocation made to the Ministry of Public Works for programmes to be executed in respect of another Ministry, be reflected under the said Ministry. It is my humble opinion, that this would lower the efficiency of administration and execution of programmes, but if it is the consensus that such programmes should be removed from the Ministry of Public Works, then I shall accede.

On the Question of Impropriety

I must tell you, Madam President, that I am more than a bit peeved at the snide remarks that have been made with respect to excess spending at Public Works. I would like to state for the record, that when in the region of eighty Petty Contracts were awarded by Ministry of Public Works, those who benefited were the 700 - 800 employees that were hired by the small contractors, along with their families, and the business places that these good people patronize. I did not benefit one cent. My benefits were derived from knowing that I was able to playa role in facilitating gainful employment for small men and women, and the attendant sense of self worth
and self-respect that comes with being productively occupied. The only crime that I can be accused of is trying to assist poor people in this country, and I note that even in this I am vilified as offering bribes, whilst others who do exactly the same are hailed as virtuous, and more so since their lifelong acts of alms giving have left them destitute. One act of kindness ought not to be characterized as noble, while the very same act by another is portrayed as ignoble.

In the Interest of the Economv and the Urgencv of the Situation

I am also not amused at the specious allegations, that there is somehow institutional corruption in the Ministry of Public Works simply on the basis of overspending. If this were the case, then the Progressive Labour Movement Administration, and particularly its Minister of Public Works, is equally guilty. Madam President, I refer to the Report of the Chief Auditor on the Accounts of Antigua for the year ended 31st December, 1972 and specifically to paragraph 135 which refers to "...major unauthorized excesses...". Paragraph 136, captioned Petty Contracts, is even more telling. It states:

"During the year under review, the attention of the Ministry was drawn to the
unsatisfactory manner in which contracts were prepared.. For example, in a
number of instances the contracts lacked sufficient information to enable a proper
evaluation of the terms and conditions to be made, and to determine whether
value for money was being received".

Madam President, might I remind the Honourable Senate, that 1972 was the first full year of the PLM Administration, headed by the venerable Sir George Walter.

But Madam President, the tale of excesses and concerns with respect to Petty Contracts did not end in 1972. Paragraph 177 of the 1973 Report again refers to excesses in the Ministry of Public Works and highlights overspending with respect to personal emoluments of between 53% and 90%. But once again, it is paragraph 178 on Petty Contracts, which is most instructive. It reads:

"With reference to paragraph 136 of the last report, it has again been necessary to call attention to the unsatisfactory manner in which several Petty Contracts were prepared during the year. Further unsatisfactory features came to light since the last report where it appeared that some contracts were being split apparently in order to circumvent the provisions of Financial Instruction 162 (5) which provides for all contracts in excess of $5,000 to be processed by a Tenders Committee. An audit request for an explanation for the departure from the Instructions elicited the reply that there was no deliberate attempt to circumvent the Financial Instruction, but that it had been considered necessary in the interest of the economy and the urgency of the situation".

Madam President, this is most interesting: "CONSIDERED NECESSARY IN THE INTEREST OF THE ECONOMY AND THE URGENCY OF THE SITUATION". Having to choose between eschewing excess spending and compromising the interest of the economy, the PLM administration decided that the interest of the economy and the urgency of the situation came first; was top priority; was the primary concern. Madam President, should we vilify them for making this choice? Should we impute evil intentions and improper motives because Sir George Walter and his Minister of Public Works opted to overspend in the interest of the economy? I think not Madam President.

Madam President, the 1974 Reports cites in paragraph 133 unauthorized excesses in expenditure on six (6) subheads in the Ministry of Public Works, the largest excess amounting to almost 600%. In 1975, the second largest excess was Sixty-four (64) times what was actually allocated in respect of Quarry and Sand Operation, but in respect of Personal Emoluments, over Three hundred and Forty (340) times that which was appropriated was actually incurred. Madam President, I wish not to belabour the point, but clearly, the Ministry of Public Works has a track record of excessive spending under different administrations and several Ministers. Is it not simplistic therefore, to accord such excesses to the innate corrupt nature of public officials? Surely when intelligent analysis is brought to bear on the question of excesses at the Ministry of Public Works, more apt answers will be found.

Madam President, whilst we have the benefit of the referenced Chief Auditor's Reports, there is another point that needs to be made: Actual Revenue always fell short of the approved estimated figure. In fact in 1974, actual revenue fell short of the approved amount by almost 34%. The overestimation of revenue therefore, is not a Lester Bird/Asot Michael phenomenon; rather, it appears to be a convention, albeit one that we are now attempting to put right. Additionally, the issue of timely submission of Supplementary Appropriations is not a new one. In the 1975 Report, in paragraph 24, captioned Control of Expenditure, the Chief Auditor records:

"Control of expenditure during the year under review has again been weak at best,
since during the year under review contrary to the provisions of Section 5 of the
Finance and Audit Act No. 3/65 as amended, One hundred and four (104) Special
Warrants for amounts totaling $1,605,418.86 approved by the Minister of
Finance, had not at the date of this report been passed by supplementary
appropriation."

Madam President, I put it to you that those who now cast stones should ensure that their places of abode are not made of glass. I agree that a number of our processes can be improved but let us not pretend that all was well before the Honourable Lester Bird assumed responsibilities for the Ministry of Finance and appointed me to be his Junior Minister. Indeed not.

Madam President, I wish not to appear as if I am singling out the PLM Administration. I shall therefore make reference to the 1993 Auditor's Report, which reveals a similar trend with respect to excesses and to general cost controls. In the Works Division at the Ministry of Public Works unauthorized excesses amounted to $8,033,189.09 under eight sub-heads of Head E 35 B. The most blatant were in respect of Personal Emoluments, exceeded by 610%; Vehicles and Plant Funding Scheme, exceeded by 473%; and Maintenance and Reconstruction of Drainage, exceeded by over 200%. I am sure that in this situation, the requirements of the national economy was placed above that of fiscal conservatism and that the "urgency of the situation" dictated the supplementary spending.

Madam President, I wish now to focus on the Antigua and Barbuda Recurrent Estimates
2003.

ANTIGUA AND BARBUDA RECURRENT ESTIMATES 2003

Revenue

Madam President, I now wish to address this year's estimates of recurrent revenue and expenditure. Budgeted recurrent revenue for the fiscal year 2003 has been put at $563,107,662.00. The government continues to realize improved revenue yields form the
Inland Revenue and Customs and Excise departments as a direct result of the improved
management. The yield from these departments increased by 13% in 2002. The revenue
profile is as follows:

• Indirect Tax Revenue accounts for 52.25% of recurrent revenue in 2003.
  Indirect taxes comprise Taxes on Trade and Transactions, and Licences and
  Service Fees, which is expected to yield $ 294,236,130.
• Direct Tax Revenue accounts for 18% of revenue and is comprised of Taxes on
  Income and Taxes on Property. The expected yield is estimated at $ 98,625,020.
• Non Tax Revenue accounts for 21.17% of recurrent revenue and is derived from
  Income from Property and Rights, Licences and Service Fees and Commercial
  Operations. The expected yield from this revenue stream is $ 119,231,512.

Expenditure

With respect to expenditure, Madam President, the Minister of Finance has already mooted that the government maintains as its priorities the areas of Health and Education. The Ministry of Health and Social Improvement has been allocated the largest portion of recurrent expenditure. It accounts for a total of, $81,867,716.00 or 13.05% of recurrent expenditure. The departments under this Ministry which account for most of its allocation are the Holberton Hospital, which continues to provide a wide range of general and specialist health care services; the Central Board of Health for the execution of its Environmental Health programmes; and Medical General which is responsible for drug supplies and Dental Health Care delivery and for providing assistance to national seeking medical treatment overseas.

The Ministry of Education receives the second largest ministerial allocation amounting to $69,492,573.00 or 11.08% of recurrent expenditure. Significant allocations within this Ministry have been made to: Secondary Education Division, which provides for the staffing and for other operating costs of all government secondary schools, including the administration of overseas examinations; and Primary Education Division, which provides for the operations of government primary schools.

The Ministry of Public Works, Communication and Insurance receives the third largest share, 9.33%, of recurrent expenditure and has been allocated an amount of $58,529,521.00. The Works Division has been allocated by far the largest share and is responsible for the maintenance of public buildings and furniture and for the maintenance of roads.

Also receiving a significant portion of the Budget for 2002 is the Ministry of Labour, Cooperatives and Public Safety. This Ministry has been allocated $52,966,353.00 or 8.44% of recurrent expenditure and is responsible for facilitating effective administration of the Police Force and for the oversight of disaster management, the regulation of cooperatives, and the administration of drug rehabilitation programmes. In this Ministry, the sub-head Po/ice attracts the greatest portion of its allocation, in keeping with the government's commitment to maintain law and order and to keep Antigua and Barbuda a safe place for residents and visitors alike.

The Medical Benefits Scheme

Madam President, I would like to touch briefly on the issue of the Medical Benefits Scheme in relation to the Recurrent Estimates 2003. The claim that the Government has transferred the full cost of providing health care to the MBS is nonsense. The sum of $81.8 million has been allocated to health in the Budget. Indeed, health gets the largest share of 13.05% of the total Budget. That $81.8 million will come from The Treasury and not from the MBS.

What is more the $50 million allocated from the MBS is a "paper" transaction not a cash transaction. It is arrived at as follows:

• In the preliminary reconciliation of the accounts between the Government and
  the MBS that has been conducted by the experts, it has been found that the
  government is owed in excess of $50 million. We hope that the final figures
  will be ready soon.
• Government has to pay MBS approximately $25 million per annum in
  contributions. We had undertaken that we would keep the payments current.
  Therefore, we propose to have an exchange of cheques with MBS for this year
  2003, and the last year 2002. In other words, we will pay two years of
  Government's contributions including this year.
• The exchange of cheques, therefore, is merely a set-off of $50 million, until the
  final reconciliation of all accounts is completed.
  

CONCLUSION

Madam President, when the Honourable Prime Minister and myself assumed responsibility for the Ministry of Finance, we were at the crossroads of great decisions, not easy decisions, but tough ones; decisions that had to be made, not by sheep, but by lions. Madam President, the economic wall which lay before our Government, as we assumed the mantle of Finance Ministers, Senior and Junior, nearly two years ago, would not be blown down by the bleat of sheep, but by the roar of lions. That economic wall had to be stormed by the spirits of Courage, Vision and Boldness, standing shoulder to shoulder, fearless and unafraid of the steps that had to be taken to return our Country to progress and prosperity.

It is because of this that the Lester Bird Government will not falter nor alter. We will not fail to lead. It is courage, not complacency, that we need today. Leadership, not salesmanship. External economic forces beset us and threaten to push our economy into decline, but we as a Government are resolute and determined to conquer and to overcome them. Our continued socioeconomic development is assured as we - Government, Business and Citizens - cooperate in partnership, towards the realization of our developmental goals and restoration of fiscal balance. It is my firm belief that the time has come for every citizen to invest in our nation's development - each endeavouring all achieving. In so doing we shall ensure that despite the enormous fiscal and other challenges that confront us, our determination and good judgment shall guarantee our country's continued prosperity and growth. Madam President, it is to the credit of our people that whilst we have good reason to look at the world around us and be cynical, we have chosen to look within and to draw strength from our determination, which has been born of our many years of struggle, our periods of triumph, our confidence in our abilities
and our faith in God. Madam President, we must not fail in this quest for continued prosperity for our men, women and children - especially the young children, for they represent what is best in all of us: they are forthright; they bear no malice; they embrace life with a sense of excitement and enthusiasm; when they fall, they pick themselves up by their boot-straps, with little time spent on how they might even the score; they love; they laugh; and they cry when they have to. But Madam Speaker, the tears are quickly forgotten, and then they laugh again.

Madam President, with that confidence and with that faith I commend this budget to this
Honourable Senate.