New Year 2003 Broadcast Address

By Hon Lester B Bird MP

Prime Minister of Antigua and Barbuda

On 31^st December 2002

Fellow Citizens

The year 2002 is behind us.

Certain events dominated the year.

Because of their dominance, they distorted the year’s image and we had the impression of calamity and crisis.

But, in reality, our nation experienced a relatively successful year.

We enjoyed real economic growth in every quarter of this year. 

By the end of September, we already had 2% growth in the economy.

It is projected that, by year-end, we will have 2.1% growth.

It is not the phenomenal growth rate of the late 80s and early 90s, but the fact that we had any growth at all is exceptional given the present economic problems that beset the world as a whole.

The vast majority of other countries, including the most powerful in the world, had no growth at all.  The Inter-American Development Bank has just released figures showing that, on average, throughout Latin America and the Caribbean, there was no growth at all.

Indeed, the global picture is a gloomy record of economic decline, stock market failure, commercial collapse and high unemployment.

We performed much better.

With the exception of 1995, the year of Hurricane Luis, we have enjoyed economic growth in every year since 1978.  No other country can make such a claim.

Importantly, we maintained a high level of employment, and we witnessed no collapse of significant businesses.

The jewel in our crown continued to be tourism.

Despite the downturn experienced worldwide, and the decline in visitors from the United States, our tourism continued to perform well particularly from the United Kingdom.  Never before have we had so many British visitors at this time

We now have the highest number of aircraft from London arriving on a weekly basis.  By March, there will be 14 flights per week.

Over this holiday season, we saw the return of cruise ships to our shores after the summer’s lull, and each week several thousand new visitors landed on our shores. Never before have we had so many cruise ship passengers on the island

This is not by chance but by hard work in the overseas Tourist Offices, especially in the, and the Ministry and Department of Tourism, as well as the supporting private sector groups and hotels that rely on Tourism. Both public servants and businesspersons led the way to re-energise this key sector of our economy, and they did so with limited budgets and resources.

We have done well in other areas too.

In financial services, we have been consolidating the sector.

We are regarded internationally as one of the cleanest and well-regulated jurisdictions in the world. 

While we have continued to negotiate with the Organisation for Economic Cooperation and Development (OECD) to ensure that we compete on level-playing field with all other countries, we have strengthened our anti-money laundering regime and provided a secure base for offshore banks, Insurance Companies, Trusts and International Business Corporations that operate in our jurisdiction.

We have continued to give strong and enlightened leadership in the negotiations with the OECD, and our efforts were rewarded earlier this year when we were unanimously elected as Deputy Chair of the Caribbean Financial Action Task Force.  We will assume the Chairmanship in October.

In 2002, we witnessed a remarkable commitment by the indigenous financial sector to developing the local economy.

Our first penny bank group, ACB, has positioned its Mortgage and Trust Company in new premises on High Street, and almost immediately commenced the makeover of its Antigua Commercial Bank building.

ACB is playing a key financial role in developing the new pier at Redcliffe Quay and related downtown improvements.

Similarly, ABI Financial Group continues to demonstrate its support to the financial, tourism and insurance sectors of the economy.

Antigua's oldest provider of international financial services, Swiss American Bank, was purchased by its local management team who changed the name to Global Bank of Commerce.  This has increased the share of local ownership in the offshore sector.

Global Bank of Commerce immediately began to contribute to the improvement of local economy by investing in local development.

Bank of Antigua continues to provide strong support to local investors and to expand its services across the country.

The local credit unions and the Antigua Barbuda Development Bank have also strengthened their activist role, and are more aggressive in the market place.

The re-engineering of the financial sector is extremely good for the economy.  The confidence that all of the institutions have demonstrated bodes well for the future financial landscape of our country.

In agriculture, we have seen considerable strides especially in niche products.  For instance, we saw the value of our exports to the European Union market rise significantly principally because of the sale of melons. 

This is all good news.  But, it found little space in the headlines.

Instead, the public was bombarded by three unpleasant events that dominated news coverage, and created a distorted impression of gloom in our country.

The first was the Inquiry into the operations of the Medical Benefits Scheme.

As I have said before, the manner in which the integrity of the Scheme was compromised is a matter of great regret.

However, as a nation, we faced the unpleasantness the Inquiry revealed and the Government took all the necessary steps to ensure that the Scheme is well respected and fulfils its obligations to all the people.

The Director of Public Prosecutions, assisted by the local police and officers from Scotland Yard, is carrying out the investigations recommended by the Commissioners.

He is doing so without any interference from the Government, although the attempts by others to intimidate him and to influence his work should be condemned.

The second event that dominated the last part of the year was the impasse in the Electoral Commission.

It is a great sadness that the task entrusted to the five Commissioners has been derailed by an unwillingness by some to be constructive.

My Government has maintained an arms-length relationship with the Commission. 

It is an independent body that should be non-partisan and fair. 

My Government has been scrupulous in its non-interference in the Commission’s work except to provide it with the resources it needs to perform.

I take this opportunity to make the point that, contrary to the claims of some, at no time did the Commonwealth Observer group describe the last general elections as either not free or not fair.  The Group specifically said:

“We also expressed our belief that the electoral process we observed on polling day had allowed the people of Antigua and Barbuda to freely express their will at the polls, exercising their democratic rights with great responsibility”

They also stated quite emphatically:

“The democratic culture in Antigua and Barbuda is well rooted and vigorous”.

Early in the New Year, I would welcome the resolution of the differences between the Electoral Commissioners in a manner consistent with their mandate and the law.  

It is important that they establish the machinery to create a completely new register of electors and introduce a system of voter identification cards.

I have a particular interest in this, because when my Party wins the next general election, there must be no cry of an unfair process.

Those who contest and lose the next election must have no excuse for their failure except the people’s lack of confidence in their capacity to manage the affairs of this country.

The third event that troubled the year was the unfortunate call by the Leader of the Opposition and others in his Party for what he called “civil disobedience”. 

By this he meant that people should break the law and disrupt civil society.

It is significant that this call for “civil disobedience” was not based on any fact or reality, but on rumour.  In other words, it was nothing but an excuse to create confusion and chaos.

In one illegal march, business people and their employees were threatened and intimidated to close shops and stay away from work.

In a spirit of tolerance, my Government allowed this illegal march to take place.

But allowing illegality is to condone it and encourage it, and no society can long endure if the rule of law is threatened.

In the New Year, therefore, all parties will be expected to respect the law and uphold it in the interest of the peace and stability of the nation. 

It cannot be unreasonable or unwarranted to ask all parties to act lawfully.

In this connection, I intend, early in the New Year, to invite the Leader of the Opposition, the Honourable Mr Baldwin Spencer, to participate with me in a dialogue on matters that affect the nation – matters that should be of a non-partisan nature.

Among the matters, I will invite him to discuss, so that together we might find a bi-partisan consensus, are: capital punishment – what should we do about hanging, reform of the prison and penalties for breach of the law – how, for instance, should we treat first-offenders, and crucial issues such as the negotiations in the Free Trade of the Americas Association and the World Trade Organisation in terms of how we mitigate the effects on local businesses.

Fellow Citizens

We have a great task ahead of us in the New Year.

It is likely that we will see a war in the Middle East with severe repercussions for the price of oil and the tourism industry.

Oil prices will surely rise if a war occurs.  In turn this will drive up the cost of air transportation making tourism more costly.  It may also mean that fewer Americans will travel outside the United States.

Altogether, we may witness a further decline in tourism especially from America.

Higher prices for oil will also have a deleterious effect on virtually everything since they will undoubtedly push-up the cost of electricity and local transportation.

But, despite the burdens imposed upon us by events in the international environment.  I want to see our economy grow again next year.

We must complete the record of 25 years of growth. 

To do so, my Government will initiate action at the local and regional levels.

Within the Organisation of Eastern Caribbean States, we will work to establish an Economic Union. I want to see the economic space expand for our producers and service providers from a market of 70,000 to a market of almost half-a-million people.

This will generate new jobs, new exports of goods and services and new revenues for the economy.

Locally, it is a fact that our economy grows when the tax burden is small.  That is why, in this year’s budget, not only did we not introduce any new taxes, we also lowered the rate of corporation tax.

Despite the propaganda by the opposition that we have high taxes, the reality is that Antigua and Barbuda has the lowest taxes in the entire Caribbean and most of the world.

Our problem is not high taxes; it is non-payment of taxes that are legitimately owed.

It is no secret that if we collected all the taxes on our books, the Government would not have a problem paying salaries and continuing to provide goods and services for the community as a whole.

We have now embarked upon a programme of collecting the taxes owed.  We have done so without fear or favour and directed the campaign at all non-payers, without regard for political affiliation. 

The collection of corporate taxes demands a high level of public responsibility and we have been pleased that, in most cases, the business community have displayed a great deal of responsibility in the current tax collection process.

While there are a few entities that will use the courts to resolve the level of their corporate liabilities to the Inland Revenue Department, and it is their right to do so, more and more businesses have begun filing their income tax returns.  In most cases, these returns do not raise any queries.

Some businesspersons have actually expressed the view that they are pleased that the government is insisting on a level playing field for all businesses.

We applaud the corporate maturity shown by most of the business sector.

But, it cannot be fair to the poor, to the elderly, to the young, and to the sick that Government should be limited in providing them the goods and services that they need because a few that are better-off in our society refuse to pay taxes they legitimately owe.

If this is allowed to continue, not only will Government be unable to maintain employment and provide services to the people as a whole, we will be allowing the creation in this country of two societies – one that is rich and comfortable and another that is poor and wretched.

This I will never do.

Such a society will not endure; it will turn upon itself and all will suffer as a result.

We are a generous and caring people. We have never believed in a sink-or-swim society.

Therefore, the policies of our government must heed the universal call of all faiths to love a neighbour as we would want to be loved ourselves.

Our task in the New Year is to continue to build a society in which poverty is addressed, as are the needs of the young, the old and the ill.

We must also continue to promote job creation. 

Government cannot solve every problem, but it can encourage people and communities to help themselves and to help one another.

In this regard, my Government will play its part by lowering taxes and introducing a system of tax deductions for companies and others that contribute to approved charities that are working for poverty alleviation.

Over the years, we have given Church organisations and other bodies considerable tax-free and duty-free concessions without tying them to actual programmes that address poverty, training, and aid to the sick and elderly.

In future, actual programmes of assistance to the poor and the needy will drive such concessions.

In overcoming poverty and dependence, we will help the work of charities, community groups and faith-based institutions.

These organizations, such as shelters for battered women or drug treatment centres, inspire hope that must be encouraged.

We will provide new incentives for charitable giving.

We will also devise ways of rewarding businesses, large and small, for their success particularly when they increase their employment and pay their taxes on time.

Every Citizen of our country must believe in the promise of our nation. 

So far that promise has been fulfilled. 

While half the world’s population survives on less than EC$5.00 a day, our people get an average of almost 15 times that amount. 

Our nation has much to be thankful for, despite the distorted image that is created by those elements in our society who are embittered by their own failures.

Residents of Antigua and Barbuda enjoy better living conditions than those in other Eastern Caribbean islands, and it is rewarding for me to note how the average person is able to enjoy this improved quality of life.

Today, anyone who wants a phone can have one, even a cellular phone.

Power outages are few and far between, and many are saved the expense of having stand-by generators.

Water is available across the island, and few remember the days of drought prior to the investment we made in a desalination plant.

The development of the new finger pier raises our expectation for over 600,000 cruise ship passengers in 2003, and the on-going improvements at the airport will make it the aviation envy of the Caribbean.

We continue to build the country through meaningful cooperation between the public and private sectors.

In the New Year, we will have even more to be thankful for.

We will open the new Mount St John Hospital.

Every person in this nation will be proud of it.  It will be the most modern institution in the Caribbean.

It will provide medical services that are second to none.

And, it will also enhance our tourism product.

The knowledge that we have a modern medical facility will encourage visitors to choose Antigua and Barbuda over countries whose facilities are sub-standard.  For, the risk of illness and accidents is ever-present, even on holiday.  People will be more comfortable knowing that good medical facilities are available here.

The Mount St John Hospital will be both a major contributor to the health of our nation and a symbol of its progress.

None will be turned from its doors; both the sick and the infirm will find sanctuary within it; and the pride of the nation will glow from its portals as its fulfils the hope of life-long care for all.

Fellow Citizens,

In 2003, our task will be to weather the storm that will come from conditions in the international environment.

To do so, we need a strong and confident nation, not one that is weakened by division, and set at its own throat.

No nation has survived assaults from outside while divided within.

It is important to be a confident country.  To be confident, we have to be strong, to be strong we have to be together.

I am confident in the ability of our people to survive. I have seen us, as a nation, rally after one hurricane and another.  I have seen us rebuild our homes and our businesses, our roads and our schools. 

I know that together we have withstood all the trials that Nature has brought to our door. I have no doubt about our ability to overcome the tribulations that man can conjure.

Fellow Citizens

By being concerned about the building of our nation, and by taking responsibility upon ourselves to contribute, we gain the right to be committed citizens, not casual spectators.

We become citizens who hear the call of duty, who stand up for their beliefs, who care for their families, and who treat their neighbours with respect and compassion.

We discover a satisfaction that is only found in service, and we show our gratitude to our country, and to all those who dwelled here before and worked for its improvement, its development and its advancement.

Let us all make committed citizenship part of n our new year’s resolution, and in turning that resolution to action advance our nation and our selves.

I wish you all a healthy and happy new year, and ask that God continue to guide our country’s progress.