BASSETERRE, St. Kits – DESPITE the enormous amount of criticisms levelled against Prime Minister the Right Hon. Dr. Denzil L. Douglas for the astronomical debt with which the Federation of St. Kitts-Nevis is burdened, he maintains that it was racked up responsibly.
With a population of approximately 50 000, St. Kitts-Nevis owns a debt of approximately EC$3B and some have categorised Dr. Douglas – who holds the portfolio for Finance – as reckless in his management of the public purse and wasteful in his spending.
During the March 13 edition of his radio programme ‘Ask the PM’, Dr. Douglas – as he has done countless times before – suggested that the excessive debt was incurred of necessity.
“I have spoken on this programme before about my government’s very conscious, very deliberate determination years ago to do whatever was necessary to provide our country with the type of physical educational and technological infrastructure that a modern competitive state needs. And that – as I explained in earlier programmes – has always necessitated the assumption of debt.”
The Prime Minister spoke of the Federation’s national debt against the backdrop of productivity and persistence, noting that more consideration should be given to the purpose of the debt rather than its size.
“…The example I will use to demonstrate this point will be based on the efforts and accomplishments of the government. But I hope that the underlying message will help to remind the public at large of the importance of everyone…believing in the value of hard work, persistence and determination and the importance of reward for hard work. What this government has delivered time and time again significantly has been this government’s commitment to the sober, responsible and visionary management of that debt.
“As is the case with family or personal debt, for example, it is not so much how much you owe but how responsible you are in meeting your debt repayment responsibilities. It is not so much whether or not you have debt, but whether your creditors deem you to be a dependable, upright and responsible partner.
“Finally, it is not so much how much you owe but what that debt has been used for. To use the personal or family analogy again, was the debt used to accumulate fast cars and ostentatious jewellery or was it used and spent in a bar or was the debt used to purchase a family home and to pay for the children’s university education? Was the debt used to finance so-called fun times or to start a family business?”
Describing St. Kitts-Nevis’ debt as “sober” and “intelligent”, Dr. Douglas said the investments which his government has made will continue to yield benefits for the present and upcoming generations.
“The national debt of St. Kitts and Nevis – I am pleased to say – has unquestionably been the governmental equivalent of a family investing in a home, a family paying for children’s university education, a family replacing a roof that has been ripped off by hurricane, a family that is starting a business. The debt has been sober, it has been intelligent…it has been responsible. And these investments will continue to yield benefits for generations to come.”
In recent times, Prime Minister Douglas admitted that the national debt was unsustainable and a debt restructuring process had to be undertaken.
