BASSETERRE, St. Kitts – THE Federation’s Prime Minister, Dr. the Hon. Timothy Harris, is adamant that the almost three-year People Empowerment Programme (PEP) is not working as it should.
He also declared that it is unfair for the Government to pay the wages of those on the programme who are full-time employees of entities in the private sector.
Dr. Harris made these revelations during his address at the 2015 National Consultation on the Economy held at the Marriott Resort on Thursday (Oct. 22).
“I just want to say now, giving early notice that those employers, wherever they are, to have persons on PEP programmes for a very long time, they have to make up their mind. It will not be fair and it will not be proper for the Government to be paying the wages for persons who really are an extended basis, part of the regular and full time staff for those in the private sector.
“We cannot continue on that! And so if all of us are serious about a new beginning, about fiscal responsibility, we are expecting genuine partnership about this matter. For two years you have a man there, a woman there working with you and the Government paying.”
Prior to making these revelations, President of the St. Kitts and Nevis Chamber of Industry and Commerce, Damion Hobson had stated at the consultation that the PEP was bleeding the public’s purse.
“One of the revenue drains that we have seen in the last two to three years is the PEP. It is bleeding the public purse. Urgent reform is required before it is too late.”
He also made reference to an IMF Report that stated over 3,000 people are on the programme and it had caused the Government to disburse some $60M annually in salaries and wages.
Hobson therefore recommended that discussions be held between the Ministry of Finance and the CIC to find creative remedies to craft a new model for the PEP.
Responding to Hobson’s comments and recommendation offered, Prime Minister Harris asserted that the programme is a very important one and outlined what he believes it should be.
“PEP is an important programme. PEP is a programme that really ought to be one of training people, of adding to the skills where there are clear deficits in the economy; training the steel benders, helping those in special areas with need their engagement. PEP should be about genuine apprenticeship of people. PEP, we agree, shouldn’t be an extended programme going on where people are there one year, two years, three years, and they will go on forever.”
Dr. Harris proclaimed that the programme in its current state is not viable and declared that his Government would engage the CIC in discussions to rectify the situation.
“PEP then, is not working as it ought to work. And here again we will have extended discussions with the Chamber on this matter. The Chamber has made the point which we have made. PEP, at near $5M per month, is not a viable preposition for the country and we therefore have to do things better without creating disruption to the economy and without creating unnecessary endangerment for the 3000-plus people who are on it.”
