If indeed the CCM takes over the NIA, they will have a bankrupt island to deal with.
According to the Permanent Secretary for Finance, Mr. Laurie Lawrence, the island is bankrupt – I trust him rather than our Premier Joseph Parry who insists all is well. The NRP administration was left with a manageable debt under Vance Amory. Even though Premier Parry is renegotiating debt, and says he has an agreement to forgive/resolve some of it, I do not believe his efforts are worth the paper they are printed on.
At a recent town hall meeting, Vance Amory spoke about the high cost of living, the 17% VAT (which Nevis does not receive as high a percentage of the total generated by St Kitts and Nevis as we ought), the surcharge from NEVLEC (often amounting to more than the bill itself), and lack of jobs and business opportunity. As an aside to this comment, it should be noted that a number of Nevisians want to sell their home and move elsewhere because life on Nevis is so hard. It is no secret that there are also over 50 expat homes for sale.
Quite frankly, why would one move to or live on Nevis when the highest sales tax rates in the US do not exceed 8%. The VAT in Europe is high and regarded as a silent tax, but it has been imposed gradually and as such, is not a great burden. It is accompanied by very low property taxes, as I learned when I recently lived in Germany. The VAT is also included in the prices where it is imposed – and not any food items. This is true for some of our merchants, Rams for example, but not all. I also want to note that there are continual merchandise sales in Europe and the US where prices are discounted as much as 50%. Do we ever see this here?
I also wonder if the $7,000,000 owed by the NRP to the Bank of Nevis shows up as a government debt, and how the Bank intends to collect their money. I also understand that the NRP is obligated to other banks and am curious about the financial arrangements.
From what I understand, the NIA had no choice but to go along with the austerity measures imposed by the IMF and other organizations – and Dr. Denzil Douglas joins with our Premier in this fiasco.
The question is “what can the CCM do and what are their plans?” I support the CCM, but believe that the party owes it to the people of Nevis to explain their ideas on how to solve the debt problem. Is it a property tax increase, an income tax...? No one knows.
All I have heard is the NRP floating the idea of an income tax. In my opinion a property tax increase would be more even handed
In conclusion, what should the CCM do to restore trust in government? As a beginning, publish financial figures to include debt and to whom owed. Our population is owed this information so they can make an intelligent decision on election day.
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