ISSUE NO.55 July 2001
BACK TO TOP
 Official
opening ceremony CARICOM
Pomp and pageantry opened the 22nd Meeting of the Conference of
Caribbean Heads of Government of the Caribbean Community (CARICOM),
which took place at the National Centre for Performing Arts in
Nassau. CARICOM Heads and delegates were treated to the finest
of Bahamian culture in dance, poetry and song.
BACK TO TOP
PM
Bird among nominees
Prime Minister, Lester Bird, is listed among a group of outstanding
regional personalities who will be honoured at a gala Award Ceremony
in October on Grand Bahama Island, in The Bahamas.
The ceremony is being organized by the Caribbean Tourism Organization (CTO),
to honour fifty individuals who have contributed significantly to the growth
of tourism in the Caribbean.
Prime Minister Bird is known to be a strong advocate of the development of
tourism in Antigua and Barbuda and the wider Caribbean expressed delight at
being chosen among the fifty nominees.
The honourees would be in two categories: thirty-three persons
selected by our member countries, and seventeen individuals who
will be chosen by a distinguished panel of judges based on nominations
received from a wide cross-section of tourism stakeholders.
BACK TO TOP
Prime
Minister instructs "No salary reductions"
Prime Minister, Lester Bird, has instructed that the salaries
and wages of non-established workers in the public service should
not be reduced.
Mr Bird sent this instruction to the Ministry of Finance from
The Bahamas, while attending the 22nd Meeting of the CARICOM Heads
of Government Conference.
The Prime Minister said, "There must be a more creative
and sustainable approach to the reduction of government expenditure".
"Reducing the salaries and wages of non-established workers
is not sustainable over time and is not the kind of permanent solution
that is required", Mr Bird said.
"The country and the economy needs greater productivity
from the public service at this time, and reducing salaries and
wages will not encourage such productivity", the Prime Minister
declared.
BACK TO TOP
 PM
Bird signs MOU with CACCI
The Caribbean American Chamber of Commerce and Industry Inc. (CACCI),
and the Government of Antigua and Barbuda have entered into a partnership
agreement through a Memorandum of Understanding (MOU) and have
agreed to work together to accomplish the following goals:
The agreement was signed in New York by Prime Minister Lester
and the Chairman of CACCI, Mr Roy Hastick on 30th June. Mr Bird
had been invited to deliver an address to CACCI on the occasion
of the opening of its trade centre.
 The
Prime Minister spoke on the topic, "The Caribbean - a place
to live, a place to do business," during which he highlighted
the benefits which can be derived from investing in the Caribbean,
more so Antigua and Barbuda.
Under the terms of the memorandum, CACCI will plan, co-ordinate
and execute a fact-finding mission to Antigua and Barbuda to initially
source, identify and explore market potential to facilitate two-way
trade and investment opportunities between New York State and Antigua
and Barbuda and the wider Caribbean Region.
CACCI and the Government also pledged to work in concert to identify resources
within CACCI's membership and the wider business community, to advocate for
business investments in Antigua and Barbuda and the wider CARICOM region through
the Caribbean Trade Centre Inc.
The Caribbean Trade Centre will establish partnership agreements
between New York City/New York State and Caribbean region, the
CARICOM Secretariat, CARICOM States, CARICOM Export Promotion Agency
and the Caribbean Association of Industry and Commerce (CAIC).
Following the signing, Mr. Hastick said that, he was very delighted and pleased
that a Memorandum of Understanding has been worked out, adding that, a new
level has been reached.
BACK TO TOP
CACCI'S
Fact Finding Mission in October
A fact finding mission from the Caribbean American Chamber of
Commerce and Industry (CACCI) is expected to be in Antigua during
the second week in October.
In a trans-atlantic telephone conversation with GISNEWS on Thursday 19th July,
Mr. Roy Hastick said his team is looking forward to visiting Antigua and Barbuda,
noting that, the Prime Minister's address at the International Forum created
quite a bit of interest among investors and business people.
The Mission is expected to be in Antigua and Barbuda for one week.
BACK TO TOP
UK
lifts financial Advisory on Antigua
The United Kingdom government on the 16th July lifted a financial
advisory on Antigua and Barbuda that was imposed in April 1999
and congratulated Prime Minister, Lester Bird, on his government's
actions.
Baroness Valerie Amos, the Minister in the UK Foreign and Commonwealth
Office responsible for the Caribbean, said:
"I welcome the decision to lift the advisory and congratulate
Prime Minister Lester Bird and the government of Antigua on the
progress made in improving its legislative and regulatory regime
in the international fight against money laundering".
In revised advice to financial institutions in the UK issued
on 16th July, the Economic Secretary to the Treasury, Ruth Kelly,
said:
"We no longer believe that UK financial institutions need
pay special attention to their dealing with persons or institutions
domiciled in Antigua and Barbuda".
By a letter telling Prime Minister Lester Bird that the decision
to lift the advisory "had not been taken lightly", Economic
Secretary, Ruth Kelly said, "It is a recognition of the efforts
that your government and you personally have taken to reform your
country's anti-money laundering system".
Both Kelly and Amos in separate letters also thanked the Antigua
and Barbuda High Commissioner in London, Sir Ronald Sanders, for
his personal efforts in assisting his country "through the
events of the last few years".
Commenting on the lifting of the Advisory, Sir Ronald said, "Led
by Prime Minister Bird, we have worked very hard to ensure that
Antigua and Barbuda applies the highest international standards
in the fight against money laundering. We are irreversibly dedicated
to maintaining a clean jurisdiction where we can grow our financial
services sector on legitimate business".
The High Commissioner noted that, in June of last year, the Financial
Action Task Force (FATF), a G7 grouping, had also declared Antigua
and Barbuda a "fully co-operative jurisdiction in the prevention
of money laundering".
"We passed all the FATF criteria as a nation that resists
money laundering and financial crime, and we intend to remain that
way by working closely with friendly governments including the
UK and the US", High Commissioner Sanders said.
BACK TO TOP
 Antigua
and Barbuda and Société Générale
reach debt settlement
The Government of Antigua and Barbuda and a consortium of banks,
led by Société Générale of France,
on the 27th June signed an agreement in London settling a debt
incurred in 1986.
The agreement, which was negotiated by Antigua and Barbuda's
Senior Ambassador, Sir Ronald Sanders, involved a significant reduction
in the principal and a write-off of interest including penalties
for delayed interest payments.
The debt was incurred as part financing for the rehabilitation
of the main runway at the VC Bird International Airport.
The small remaining portion of the loan was paid and the debt is now regarded
as fully settled.
In a joint statement, Sir Ronald and the representative of the
lead Bank, Société Générale said:
"The Banks recognised the present difficulties of Antigua
and Barbuda following the heavy costs of rebuilding after five
hurricanes in a many years. Both parties believe the agreement
will contribute to the continuing normalisation of Antigua and
Barbuda's relationship with the international financial community".
Ambassador Sanders paid tribute to the Ministry of Finance and
Junior Finance Minister, Asot Michael, for their support in the
negotiations to settle the debt.
BACK TO TOP
Governments considering
Montserrat evacuation accord
Antigua and Barbuda is studying a draft Memorandum of Understanding
(MOU) from Britain on the evacuation of neighbouring Montserrat
if there is a major volcanic eruption that will affect life in
the safe zone.
Permanent Secretary of Antigua and Barbuda's Foreign Ministry,
Colin Murdoch said that this country's Ministry of Legal Affairs
and the Defence Force were studying the draft.
"I think that Antigua and the British government co-operated
very well over Montserrat during the volcano crisis they had and
after that the British came and said we had good co-operation," Murdoch
told Caribbean News Agency (CANA).
"We did it in (an) ad hoc kind of a way and would like to
have an agreement so that everything is laid out and we know who
have responsibility for what," Murdoch added.
Outgoing British High Commissioner to Antigua and Barbuda, Gordon
Baker, spoke of the need for the two countries to sign the accord
on evacuation and other procedures regarding any future disaster
on the British dependent territory.
The Foreign Ministry and the British High Commission in Antigua
were not in an immediate position to provide details about what
would be Antigua and Barbuda's role under the MOU.
Antigua and Barbuda, Guadeloupe, and St Kitts are listed in an
evacuation plan called "Operation Exodus", in the event
that violent volcanic activity takes its toll on the safe northern
zone of Montserrat where the remaining 5,724 persons live and work.
The operation includes the deployment of high-speed ferries from
Guadeloupe to get residents off the island to Antigua and St Kitts,
an air medi-vac component for casualties who cannot travel on the
ferry, and the treatment of injured persons in Guadeloupe.
As a result of a fiery explosion in 1997 that killed at least
19 persons, over half of the then 10,600 persons fled Montserrat
to Antigua.
Many Montserratians still reside in Antigua.
Scientists say the northern zone of Montserrat, a 39.6 square mile island,
is still safe for residents and visitors.
BACK TO TOP
Antiguan proposed to
head OECS
The Prime Minister of Antigua and Barbuda, Lester Bird, announced
that his government has proposed one of its nationals, George Goodwin,
to head the OECS Secretariat, replacing Dominican - born Swinburne
Lestrade, who resigns as Director-General on 31st July.
The Prime Minister said, "George Goodwin is an outstanding candidate.
He has worked for the sub-region for many years, starting in 1975 with the
Eastern Caribbean Common Market before joining its successor, the OECS, as
an early pioneer. "
Goodwin is now the Director of Functional Co-operation in the OECS Secretariat,
and on 4th July OECS Heads of Government appointed him to act as Director-General
when Mr. Swinburne Lestrade's resignation takes effect at the end of the month.
"I am delighted to put the full weight of my government behind George Goodwin.
We believe he is the right man to take the Organisation forward at this time," Mr.
Bird declared.
BACK TO TOP
 Residents
respond positively to National Clean-up Day Campaign
Scores of nationals participated in the National Clean-Up Day
organized by the Antigua and Barbuda Independent Tourism Promotion
Corporation (ABIT/PC) on Saturday 14th July.
The programme began with an early morning launch at the Dredgers
Playing Field where Prime Minister, Lester Bird, launched the campaign
and picked up the first piece of trash in a symbolic gesture.
Mr. Bird called on nationals to come together and "make Antigua shine." He
said he was pleased to be associated with the programme, adding that it was
not about politics, and commended the organizers for putting the programme
together.
 Volunteers
could be seen in every village throughout Antigua working together
to clean their communities.
Co-ordinator of the programme, Martha Watkins-Gilkes, said she was very happy
with the response and expressed the hope that the campaign would become an
annual event.
The Antigua and Barbuda Public Utilities Authority (APUA) donated
a number of cellular phones to the various clean-up groups in an
effort to "have proper co-ordination in this effort," an
APUA official said.
BACK TO TOP
Antigua
State College Graduation ceremony
362 students graduated from The Antigua State College. The ceremony
took place at the Precision Centre at Paynters on 13th July.
Receiving diplomas were 16 students from the Teachers' Training
department; 108 students from the Advanced Level department; 52
students from the Engineering department; 144 students from the
Commercial department and 42 students from the School of Nursing,
the School of Pharmacy and the Business Studies department.
BACK TO TOP
Five-year
development plan for Barbuda to be enacted in the New Year
Chairman of the Barbuda local Council Fabian Jones says the five-year
development plan for Barbuda, as suggested by the Commonwealth
Review Committee, should be in place for the New Year.
Jones indicated that topping the plan is the development of the island's ports
of entry. Another issue that has been deemed a priority, is the confirmation
of the financial arrangement between the council and the government.
The plan will be presented at a meeting of the Joint Consultative
Committee (JCC).
However, Jones says that before a final decision is made, the council will
be hosting public forums in the village to get an input from members of the
community.
BACK TO TOP
Population
and Housing census completed
The Statistics Division has lauded the efforts of all those who
contributed towards the population and Housing Census held in May
and June.
A release from the division says qualitative and quantitative analysis of the
data is presently being done, after which a preliminary population count will
be released to the public.
According to the release, though the census was conducted during a difficult
period of the country's development, the office is certain that the information
gathered should provide critical indicators for informing adequate policy formulation
at all levels of the society.
BACK TO TOP
 Japanese
Ambassador pays farewell visit: Signs Fisheries Agreement
H.E. Mr. Yoshio Yamagishi, Japan's accredited Ambassador to Antigua
and Barbuda, bade farewell to H.E. The Governor-General, the Prime
Minister and senior Ministers and officials on a recent visit to
Antigua.
Ambassador Yamagishi's first call was on Prime Minister, Lester
Bird. The Prime Minister and the Ambassador reviewed bilateral
relations between Antigua and Barbuda and Japan, and discussed
several issues of international concern.
The Prime Minister and the Japanese diplomat then proceeded to a signing ceremony
for the Agreement relating to the Rehabilitation of Artisanal or Fishery. Mr.
Bird said: "Fisheries is a key to the future development of Antigua and
Barbuda. Having as we do large maritime areas under our jurisdiction, we are
well-placed to exploit the resources of the ocean to achieve our national development
goals. In order to do this successfully, our fisheries sector must be able
to utilize modern and scientific methods to advance our fishery from an inshore
artisanal activity to profitable ocean-going enterprise. Antigua and Barbuda
must also enhance its capacity to penetrate export markets for fish. These
projects will allow our fishermen to do exactly that."
 For
his part, Ambassador Yamagishi spoke of the close cooperation between
Antigua and Barbuda and Japan. He outlined Japan's commitment to
the socio-economic development of Antigua and Barbuda Fisheries
sector, which he stated was symbolized by the Agreement.
PM Bird presented Ambassador Yamagishi with a gift on behalf of
his Government.
The two projects, valued at over EC$40 million, will be sited
in Parham and Urlings. Upon completion, the projects will feature
marketing and distribution facilities, berthing areas, repair facilities,
storage areas and the provision of advanced fishing gear. The projects
are being constructed with Japanese funding, and the first phase
is approximately six months from completion.
BACK TO TOP
 Sod
turned for new Fisheries Project
A large crowd turned out to witness the sod turning exercise to
mark the commencement of a new Fisheries Project in Parham on 12th
July.
In his address, the Minister responsible for Planning and Implementation,
Gaston Browne, said the new fish-landing facility, will provide
a number of jobs during the construction phase and when completed.
He also noted that the facility would greatly improve the Parham
community, making it another major business centre in the country.
Minister Browne stated that the Parham project is all part of the Government's
multi-million dollar plan for the continued development of Antigua and Barbuda
as a whole, adding that a similar project will soon begin in Urlings.
Also speaking at the Opening Ceremony were Public Works Minister, Senator Asot
Michael, who gave a spirited address recounting some history of Parham, the
Parliamentary Representative for the area, Mr. Longford Jeremy, the out-going
Japanese Ambassador to Antigua and Barbuda, His Excellency, Mr. Yoshio Yamagishi
and Agriculture Minister, Vere Bird Jr.
BACK TO TOP
 Probe
into Medical Benefits Scheme opens
A Commission of Inquiry into alleged fraud at Antigua and Barbuda's
Medical Benefits Scheme (MBS) began Monday 16th July with an announcement
that the three-man commission would seek information dating back
to the beginning of the fund.
In opening remarks, Commission Chairman, Sir Alister McIntyre,
said that going back to the inception of the MBS in 1978 depended
on the availability of documents and the memory of former officials
of the scheme.
"If at the end of our exercise, it appears that there is
insufficient information, documentary or otherwise, to enable us
to commence our inquiry from 1978, we would have to advise the
Governor-General and respectfully request that the time frame of
the inquiry be amended in order to permit us to start at a later
year," he told the gathering at the Multipurpose Centre.
Those present included local and foreign lawyers as well as the
three men -- Dr Errol Cort, Bernard Percival and Bernard Walker
-- who the Prime Minister dismissed from the government based on
statements of a forensic audit.
McIntyre emphasised that the three-man commission, comprising
himself, British Queen's Counsel Sir John Roberts and LIAT (1974)
Limited auditor Oscar Frederick of Antigua, did not regard the
probe as a "naming and shaming exercise," a witch-hunt
or a vendetta.
Lawyer for the Commission is Barbadian Queen's Counsel, Dr Richard
Cheltenham.
McIntyre promised that those subjected to criticisms would be
given an opportunity to defend themselves.
The Commission Chairman assured that any violations of the law
would be made public but pursuing such breaches of the law rested
with the Director of Public Prosecutions (DPP). Already, the DPP
is in possession of a copy of the forensic audit report.
Gaps and deficiencies in the administration of the MBS, he said,
would be stated in the recommendations of the report.
A Commission of Inquiry is not be governed by court-room rules
of evidence and procedure and so anything that is considered relevant
would be considered to get to the truth.
He warned that those who are subpoenaed to attend but fail to
do so would be cited for contempt in accordance with the Commission
of Inquiry Act. Provision has been made for private hearings in
rare and exceptional circumstances.
Witnesses are expected to first submit written statements on which
they would amplify or expand in their oral appearances.
In an effort to guarantee fair, accurate and balanced coverage
of the Inquiry, the commissioners have called for a meeting with
the media.
"We are conscious of the fact, however, that vital as the
role of the media is that there is always the danger in the course
of a Commission of Inquiry, that evidence may be distorted and/or
exaggerated and that as a consequence reputations may be damaged
and/or destroyed and often irretrievably so," Mc Intyre said.
Terms of reference for the Commission of Inquiry were proposed
by the 15-affiliate coalition of labour, professional, business,
religious and political organisations and accepted without amendment
by the government.
The Commission of Inquiry will probe the disbursement of funds
from each account established and operated by the state-run fund,
and the procurement policies and practices for administrative,
medical and pharmaceutical supplies and equipment with special
regard to weaknesses and abuses of the said policies and practices.
Other terms of reference are the overall financing of the construction
of the MBS' pharmacy building and community clinics and in particular
whether the projected costs were exceeded; the disbursement of
funds not qualified for benefits, and the overall operation of
the MBS with a view to recommending the improvement in the management
of the scheme.
BACK TO TOP
 Health
Minister pleased with EMS operations
The Minister of Health, John E. St. Luce, expressed satisfaction
with the country's Emergency Medical Services (EMS) performance
during "Operation Barbuda Airlift" on the afternoon of
Tuesday 10th July.
The drama began when a bus and a heavy-duty vehicle collided in Barbuda, killing
3 persons and injuring several others.
Assistance had to be sought from the mainland of Antigua, prompting the EMS
into a "Rapid Response Mode" that included the deployment of an EMS
team to Barbuda and the airlifting of the injured to the Holberton Hospital
on the mainland for treatment.
"When I heard of the tragedy, I immediately rushed to the hospital where
I met the Prime Minister and there I saw first-hand, the speed and precision
with which our EMS and the medical personnel at the hospital went to work, I
felt pleased", the Minister said.
"I think everyone got involved. It was a great show of the commitment to
duty in the hour of crisis, and everyone in the medical world who rallied to
the call on Tuesday evening must be complimented," the Minister concluded,
before expressing sympathy to the relatives of those who died in the accident.
BACK TO TOP
PM moved by accident:
Expresses condolences to families
Prime Minister, Lester Bird, expressed condolences to the families
who lost loved ones in a road fatality on the island of Barbuda,
late on the afternoon of Tuesday 10th July.
Upon hearing of the tragedy, Prime Minister Bird went to the V.C. Bird International
Airport to personally oversee the airlift operations.
"As you know I have always regarded myself as half Barbudan, as the majority
of my maternal side hails from Barbuda. As I listened to the names of the deceased
and the injured, I recognised that some of them are my relatives. Therefore,
this is a personal tragedy for me and I want to offer personal condolences to
the families of those whom we have lost in this awful tragedy," Mr. Bird
said to the GIS News at the V. C. Bird International Airport, before going to
the Holberton Hospital to visit the injured.
The police has launched a full investigation into the cause of the accident
which is said to be the worst in the island's traffic history. Meanwhile, families
of the injured who were forced to make the emergency trip to Antigua to be
with their loved ones and were without a place of abode, were accommodated
at hotels, courtesy of the Government of Antigua and Barbuda.
BACK TO TOP
Call for establishment
of a national blood bank in Antigua
Director General of the Red Cross, Gerald Price, has called for
the immediate establishment of a national blood bank.
His appeal came against the news from the American Red Cross that the cost
to import blood here has increased from US$196.81 per unit, to US$326.29. Mr.
Price said persons purchasing the blood must pay the money in advance to the
American Red Cross.
He declared this new cost now puts the purchase of blood from overseas out
of the reach of most Antiguans and Barbudans.
Mr. Price says the local organization and the Health department have been advocating
the need for the adequate blood bank to serve the nation, and the latest news
of the increase only brings the points further home.
BACK TO TOP
Prime
Minister's Address to the nation
Prime Minister Lester Bird made a comprehensive statement to the
nation at as press conference on Friday 13th July on a variety
of issues facing the nation.
Key points made by the Prime Minister are featured below:
Electoral Reform
One of the principal recommendations of the Commonwealth Group
who observed the March 1999 General Election was as follows:
The establishment of an Independent Electoral Commission in Antigua
and Barbuda with, among other powers, the mandate to create a completely
new register, introduce a system of voter identification cards,
and arrange the redrawing of constituency boundaries, and, as necessary,
review electoral law.
My Government fully accepted the recommendations of the Commonwealth
Observer Group. We remain pledged to their implementation.
Since the general election, the Attorney-General's Office held
wide consultations with various interest groups and the general
public regarding the Electoral Reform Bill and other aspects of
electoral reform. Written submissions have also been received from
individuals and groups.
On June 14th, the Attorney-General and members of her staff met
the Leader of the Opposition and a delegation of the United Progressive
Party at their request. At that meeting, the UPP asked that Section
9 of the Representation of the People Act be amended to move the
date of registration of electors from 1st July to 3rd December
when re-registration of voters with ID cards could commence and
an Electoral Commission would be established. The Government agreed
to the amendment which has now been made by Parliament.
However, I am personally so committed to the process of electoral
reform that I want it put on a fast-track to completion.
Therefore, I have asked the Commonwealth Secretariat to provide
the services of a legal expert on electoral reform to work continuously
on this task and to bring it to a speedy conclusion.
The expert will arrive here shortly to work closely with the
Attorney-General's Chambers and Parliament with the aim of completing
all that has to be done within the shortest possible time.
Government Accounts
On the matter of the Government's accounts, I have always upheld
the position that there must be full accountability and transparency.
Everyone has the right to know how Government revenues have been
spent.
I gave the undertaking that I would bring in outside experts
to bring these accounts up to date as soon as possible.
I am pleased to report that these experts are now in the Accountant
General's Office at The Treasury and the accounts are being tackled
as quickly as humanly possible.
As soon as each year's accounts are ready, they will be audited
by the Director of Audit and submitted to the Public Accounts Committee
of Parliament.
Even before the experts arrived, four years accounts were submitted
to the Director of Audit and final statements for three of those
years have been printed. I understand from the Director of Audit
that the fourth year will also be printed shortly and all four
years will be submitted to the Public Accounts Committee.
The Accountant General has also assured me that, with the assistance
of the experts, all the remaining accounts should be finished within
the next nine months.
However, each year's accounts will be transmitted to the Director
of Audit and then on to Parliament as it is completed
The Experts are also putting a system in place, with the use
of computers, to ensure that all future yearly accounts are submitted
in a timely fashion to the Director of Audit and then to the Public
Accounts Committee of Parliament for consideration.
Increase in Customs Service Tax
It will be recalled that in the Budget Statement which I made
to Parliament on 21st March, I had indicated that Customs Service
Tax would be increased from 5% to 10% because of our country's
treaty obligations to the Caribbean Community and Common Market
and the World Trade Organisation.
I stressed then that Government is required to lower or eliminate
duties on a number of imported items and, therefore, it would be
necessary to increase the Customs Service Tax to compensate for
the loss of revenue.
It was expected that the lowering or eliminating of duties would
have occurred on 1st July in compliance with CARICOM's Common External
Tariff. In anticipation of this, Parliament passed a law doubling
the Customs Service Tax with effect from that date.
The formula used was to compound the tax. This would have been
fine had the duties been lowered or eliminated on 1st July as was
expected.
However, for a number of reasons outside our control, the Common External Tariff
could not be implemented on 1st July.
Therefore, if we proceed to double the Customs Service Tax while
the duties are still in place at their previous level, the costs
of many imported items would increase.
My Government does not wish the people of our country to face
any prices that are higher than absolutely necessary. Consequently,
we will amend the law in Parliament at the next sitting to ensure
that the doubling of the Customs Service Tax is not compounded.
The amendment to the law has already been drafted by the Solicitor-General
and will be among the first items of business when Parliament resumes
sitting in a few days time.
The Economy
I come now to the economy. It is worth remembering that for 20
years including last year, the Antigua and Barbuda economy has
experienced real growth. While it is true that growth last year
declined to approximately 4%, we still enjoyed growth. Many countries
around the world suffered no growth or minimal growth. This includes
the resource-rich United States of America.
It is significant that Jamaica, with all its vast resources,
recorded 4% growth in the first quarter of this year, for the first
time in 30 years. Our average annual growth in the last 20 years
has been more than 6%. You can see, therefore, how well our economy
has been managed and how much we should be proud of.
Our problem is one of the Government's tightening fiscal position
brought about by the costs to The Treasury of maintaining the relatively
high standard of living that we enjoy.
We should not forget that the average unemployment in the Caribbean
is 12%. In Antigua and Barbuda our unemployment is 5%. This is
so because this Government continued to provide employment for
people even though its recurrent revenue was declining. The decline
in revenue was largely due to a fall in receipts from taxes on
domestic goods and services.
In addition to continuing to employ people, Government also aided
the private sector after several hurricanes beginning with Luis
in 1995 and continuing through 1998. We aided the private sector
by waiving duties and taxes that should have been paid into The
Treasury.
Just two days ago, the Government again had to waive duties on
food to the Hotels and reduce their utility costs by 15% in order
to help them continue to employ people. This means that the government
is, once again, foregoing revenue legitimately due to it in order
to preserve employment. Yet, many of these hotels pay no taxes,
and the government has great difficulty collecting the guest night
levy which is the Government's money.
The situation in which the hotels find themselves has nothing to do with the
Government's tightened fiscal situation. Their problem has arisen primarily
because there are fewer flights into Antigua this summer than there were last
year. In part, this is due to increased costs that airlines are facing, including
the costs of fuel.
The point is, however, that the hotels claim that in order to
continue to employ our people, they need help from the Government.
Therefore, an already overburdened Government has to extend further
assistance, and we have done so in the interest of the workers,
the hotels themselves and the tourist industry as a whole.
Further, despite all the high costs we have faced throughout the period since
1995 when hurricanes repeatedly damaged the country, we maintained a road building
programme, constructed new health clinics, repaired schools and police stations
and kept the physical infrastructure particularly water supply, electricity
supply and telecommunications in good order.
Indeed, the reality is that while drought is being experienced
throughout the Caribbean, and many countries have faced serious
water shortages, we have continued to receive water because this
Government had the foresight to install and maintain the desalting
plant which now provides most of our water.
In a situation in which less taxes and duties are received, and
we Government continues to spend to maintain our relatively high
quality of life, it is obvious that the Government's fiscal situation
should become tight.
The Government could have chosen other options including not
helping the private sector to rebuild after hurricanes, not repairing
schools, not constructing roads and health clinics and not maintaining
water and electricity. In such circumstances, Government would
have had money, but our country and our people would not enjoy
the relatively high quality of life that they do.
Choices had to be made. We chose to continue to give our people
jobs and a good quality of life in the expectation that the taxes
legitimately owed to the Government would be paid, and we would
be able to cover the expenses. This did not happen.
That is why when I presented the Budget in Parliament this year,
I said two things: we would vigorously collect taxes that are legitimately
owed to the Government, and we would implement measures to reduce
government expenditure. I specifically said "where it is found
necessary, there will be retrenchment".
Tax collection
While several individuals and businesses have either paid little
or no taxes even though such taxes are due and payable, the Inland
Revenue Department has done a good job of collecting taxes this
year. For example, Inland Revenue collected EC$11.2 million more
in taxes for the first five months of this year in comparison with
the same period last year. Most of this, however, has come from
Company taxes.
While some businesses have paid the 2% tax and we collected more
money in the first five months of this year than for all of 1999
from the unincorporated businesses, many of these businesses continue
to enjoy the benefits of this country without paying their legitimate
dues.
If this continues, the Commissioner of Inland Revenue will be forced to use
his powers under the law to compel payment. My hope is that the situation will
not come to that sorry pass.
Retrenchment versus wage reductions
It became clear that given the Government's tightening fiscal
situation, we could not continue to pay the costs for the standard
of living in the country without some retrenchment.
We discussed this matter with the Antigua Trades and Labour Union
(AT&LU) as the representative of the non-established workers.
After long and agonising talks in which both sides tried to find
constructive ways in which we could maintain employment, it was
decided that a wage and salary decrease for all non-established
workers would be preferable to retrenchment of some of them. In
other words, we worked on the biblical principle that half a loaf
was better than none.
At the conclusion of these discussions a memorandum of understanding
was signed between the Union Representatives and the Financial
Secretary.
However, it was not until I was in The Bahamas attending the
22nd Conference of CARICOM Heads of Government that I learned that
the non-established workers claimed that they had not been consulted
on the proposed reduction.
Incidentally, it was never a 20% reduction. Under the formula,
the lowest paid would have had a 10% reduction and the highest
no more than 14% overall.
In any event, I took the decision in The Bahamas that, since
the workers felt they had not been consulted, it would be improper
to reduce their income. In the circumstances, I instructed the
Ministry of Finance to pay wages and salaries as usual, and I stated
that I would discuss the matter with the Union upon my return.
I met the Union representatives yesterday for a lengthy period.
We had a very constructive exchange that I greatly valued. Our
discussions are not yet concluded, we will continue to meet. But
here are some of the conclusions that my Government has reached
on the matter of easing the tightening fiscal situation:There will
be no reduction in salaries and wages. The Government will continue
its programme of freezing all employment in the public sector except
for police and teachers; retiring persons over 60 years of age
except those whose specialist skills or knowledge is still required;
and ending arrangements where any person is paid twice from the
Consolidated Fund.
My Government will also reduce expenditure in the following ways,
and I am instructing the Financial Secretary to implement these
initiatives immediately.
Auction government vehicles except for an appropriate number which
will be kept in a centrally-administered car pool for the supervised
conduct of the business of all ministries between 8.00 am and 4.30
pm after which they are to be parked in a secure government compound.
Those persons who now drive government vehicles will be given the
first option to purchase them, after which they will be sold on
the open market;Reduce by 40% the Government skills training programme
under which persons are sent to the private sector to work. The
businesses to which they are sent will have the opportunity to
employ them directly.Aides to Ministers to be reduced to one person.Ministerial
travel to Conferences to be severely curtailed except in cases
where the national interest of Antigua and Barbuda is at stake.
The size of delegations will also be significantly reduced; and
Institute disciplinary procedures in all Government Ministries
and Departments where employees will have to conform to rules and
regulations and where absenteeism will be tackled appropriately.
Government salaries and wages must be earned.
These measures by themselves will not eliminate the tight financial
constraints, but they will help to alleviate them so that money
could be spent on more productive and beneficial purposes.
The matter of retrenchment
Recession in the United States has caused large scale retrenchment.
Hundreds of thousands of workers in the private sector have lost
their jobs.
Hewlett Packard, one of the biggest technological companies in
the world, has asked all its workers worldwide to take a 10% pay
cut so that some workers will not have to be dismissed.
In the European Union countries, Governments announced at a meeting
of Finance Ministers in Brussels last Tuesday that they will have
to make unpopular spending cuts in the next few weeks.
In Latin America, Argentina's Finance Minister announced this
week that he will be cutting government expenditure by US$1.6 billion
as part of an exercise to reduce government spending by a total
of US$3 billion.
Nearer to home, both the Governments of Dominica and St Vincent
and The Grenadines are reducing the size of their public services.
We should not linger in the belief that we are alone in having
to institute measures to reduce Government expenditure. The truth
is that we have been fortunate in that, for a long time, we have
enjoyed the fruits of a Government that maintained high employment
while assisting the private sector and meeting the costs of the
country's relatively high quality of life.
It is in this context that there is now widespread consensus
that the Government must reduce its payroll by some retrenchment
in the non-established sector. It is our proposition that Government
should not retrench until 15th November when the winter tourist
season will start in earnest and when the hotels and other tourism
related facilities will be employing people. This will give everyone
more than three months to plan and prepare for an appropriate reduction
of the non-established workers.
Over the next few weeks, therefore, the Government and the Union
will work together to analyse where the reduction can best be made,
and adequate notice will be given to the affected persons so that
they could look to tourism-related activity for employment come
November 15th.
In other words, we will tackle this problem in a sensitive and
helpful manner.
Future economic prospects
Given the fact that our tax collection has improved to the point
where we collected $11.2 million more in the first five months
of this year than we did last year, there is considerable progress
in easing the Government's tight financial situation.
I should mention that we have not yet begun to collect the 3%
on net win from the Internet Gaming operators, the 3% on interest
income less interest expense from the Offshore Banks, nor the 10
cents on every imperial gallon of oil from the West Indies Oil
Company. Collection of these taxes will start by end of July.
In addition, we are refining the billing and collection procedures
for property tax and we expect this to reach its projected target
by year end.
We will also seek the full co-operation of the unincorporated
businesses to pay the 2% tax which is due under the law.
The collection of these taxes along with customs charges and
the reduction of the non-established workers in the public service
will ease the Government's tight fiscal situation allowing it to
spend on productive schemes that will help to energise the economy.
The prospects are reasonably good. The Finance Ministers of the
G7, the largest economies of the world, announced in Rome last
weekend that they expect to see an upturn in the world economy
next year. The US is expected to be in the forefront in leading
the world back to more robust growth.
For our part, once the Carlisle Bay project is back to normalcy
and EC$162 million is spent on its construction and expansion,
there will be a marked effect throughout the economy.
Other private and public sector projects are continuing as you
know. These include the EC$270 million Stanford project outside
the Airport, the EC$46 million fisheries projects including the
one at Parham where we broke ground yesterday.
As far as the upcoming winter tourist season is concerned, this
looks extremely bright. The problem of flights into Antigua will
be addressed. Virgin Atlantic will be adding another flight into
Antigua from 2nd November, British Airways will be moving to five
flights a week early next year re-introducing their first class
service and expanding their club class cabins. BWIA is now actively
considering another flight this winter as well.
Demand for accommodation is also strong from Europe and North
America.
On the offshore sector side, we are doing very well. Despite
the fact that one operator has chosen to leave Antigua, the Industry
now has predictability and security through the new regulatory
and supervisory regime that we have put in place.
We have offered the operators a genuine partnership in our country,
one in which they and our economy can both benefit.
It is significant that in its March 2000 report, even before
we had improved and streamlined our regime for Internet gaming,
the US-and world wide investment banking firm, Bears Stern, said
this:
"In our opinion, Antigua and Barbuda will continue to be
one of the market leaders of Internet Gaming... There are a number
of nations that have not yet established a regulatory framework
but while the world of Internet gaming is overcrowded with a large
number of web sites that are located in relatively unknown and
unregulated jurisdictions, a company located in Antigua would have
a comparative advantage based solely on Antigua's reputation."
Our economy is not unsound. While tourism remains our mainstay, we have now
developed a reliable and predictable offshore sector which will grow over time
given the hospitable environment here. We shall keep it so for everyone's benefit.
Fishing will also contribute much more to the economy than it
has in the past with the considerable investment being made in
the industry.
Our economic prospects, therefore, are bright. We have a rough
patch over which to ride. But it will not be prolonged. We simply
require to cooperate in our efforts to take forward our beloved
country together.
BACK TO TOP
Texas Banking Commissioner
and Antigua and Barbuda Regulatory Authority sign agreement on
Information sharing
The Texas Department Banking and the Antigua and Barbuda International
Financial Sector Regulatory authority singed an agreement for information
sharing on 26th July 2001.
The information sharing agreement is the culmination of over
a year of effort by the two bodies and provides a system for communication
and cooperation between the two banking supervisory authorities.
The agreement is intended to facilitate the efficient supervision
of financial institutions chartered and supervised by either the
State of Texas or the government of the country of Antigua and
Barbuda which have offices within the geographic jurisdiction of
the other authority.
"This document represents a landmark in cooperation between
financial institution supervisory authorities of the State of Texas
and a foreign government ," said Texas Banking Commissioner,
Randall S. James, "This agreement underscores that seamless
supervision of Texas State financial institutions with offices
in other countries and foreign institutions with offices in the
State of Texas can be achieved."
The Executive Director of Antigua and Barbuda authority, Althea
Crick, hailed the agreement as "an instrument of benefit to
the supervisory authorities of both Texas and Antigua and Barbuda
which will be able to share information about any Antigua and Barbuda
or Texas banks operating in both jurisdictions in the interest
of all parties including depositors."
BACK TO TOP
LIAT's shareholders
back re-capitalisation
 Shareholders
of LIAT (1974) Ltd. Have backed a plan to re-capitalise the airline
company.
The shareholders made the decision at a meeting at the Royal
Antiguan Resort on 5th July.
"Shareholders were briefed on the current phase of the re-capitalisation
of the company. They expressed their full support for the Company
in its efforts and also passed a resolution authorising the board
to raise additional capital through a new share offering," a
statement said.
The statement said the shareholders were updated on progress
in the delivery of the company's business plan - "Co-operation,
the Key to Survival" - including "the fact that the company
is maintaining a very strong market share position on all routes".
"The strategic alliance with BWIA was discussed and it is
seen as a key element in the implementation of LIAT business strategy "Co-operation
- the Key to Survival", the statement said.
"The new integrated schedule with BWee Express along with
LIAT's membership of Carib Sky and its agreements with Air Jamaica
and many of the major foreign carriers serving the Caribbean all
give testament to LIAT;s commitment to playing its part in developing
a strong indigenous airline industry."
LIAT also reported progress in the delivery of its fleet development
plan. Following the sale of the two longest serving aircraft, negotiations
are at an advanced state to sell three more and replace them with
newer and larger aircraft, according to the statement.
BACK TO TOP
Free Movement of OECS
Nationals by January 1st
OECS Heads of Government ended a two day summit in Dominica on
25th and 26th July, with an agreement to work towards a January
1st deadline for Freedom of Movement of OECS Nationals in the Member
States.
Work on the details of this initiative has been handed to a Task
Force to be drawn from technical personnel at the OECS Secretariat,
who will work under the supervision of Prime Ministers Dr Ralph
Gonsalves of St Vincent and the Grenadines and Dr Kenny Anthony
of St Lucia.
Freedom of Movement is expected to involve the removal of current
restrictions on Work and Residency Permits required for OECS Nationals
seeking to move from one island to another.
The Task Force has also been mandated to look at a "common
passport" for OECS nationals, to be issued under an entity
to be called the "Eastern Caribbean Union of Independent States" (ECUIS),
with the holder's country of birth inscribed below. This is geared
towards giving the region a common identity when facing the rest
of the world,
The Task Force will also consider a common ID Card which, among
other things, will be used for inter-island travel.
The two day meeting also saw agreement by five of the OECS Heads
to undertake a joint State visit to Libya during the latter half
of August.
The Heads will seek technical and economic support for the region
and strengthen ties with the Government and People of Libya
The Heads, as an expression of their continued commitment to
the OECS as an Organisation, also agreed to a formula for erasing
the debt owed by Member Countries to the OECS Secretariat and for
keeping their accounts current.
They also agreed to work jointly in bringing a speedy resolution
to the situation in which Venezuela is claiming sovereignty over
Bird Rock, off Dominica.
The Heads are expected to meet on the eve of the CARICOM Tourism
Summit in the Bahamas to discuss the specific tourism and air transportation
concerns of their small island states ahead of the bigger meeting.
Tribute was paid to the outgoing Director-General, Mr Swinburne
Lestrade, who leaves the helm of the OECS Secretariat after five
years in Office.
BACK TO TOP
 Antigua
Carnival begins with colour
About fifteen minutes of sustained colourful fireworks on Saturday
night 28th July ushered in Antigua and Barbuda's Carnival 2001
under the theme "Festivity, Creativity, Culture - All In One."
Officially declaring open the July 28 to August 7 affair at the
Antigua Recreation Ground (ARG), Carnival, Minister Guy Yearwood
urged revellers to work towards a crime-free festival.
 In
Antigua for Carnival 2001 is Trinidad and Tobago's reigning calypso
monarch, Denise Plummer who is expected to make a guest appearance
at a number of the events.
This year's events include the junior carnival, female calypso
finals, Mr and Ms teenage pageant, queen of carnival, junior and
senior steel-pan competition, Jaycees Caribbean queen show, calypso
monarch finals, J'ouvert and the judging of groups and troupes,
a parade of groups and troupes, announcement of winners and last
lap.
Hundreds of persons including cheer-leaders, beauty contestants,
steel-bands, and floats wended their way from Perry Bay through
the heart of commercial St John's to Carnival City for the official
opening.
 During
July and August of 1999, a total of 23,557 persons visited Antigua
while for the same period last year visitor arrivals numbered
23,833.
Apart from contributions from the local business sector, the
bulk of financing comes annually from government which this year
provided EC$1.5m (US$555,000) subsidy for the event.
BACK TO TOP
|
