BASSETERRE, St. Kitts, May 31, 2010 (PAM Public Relations Office Press Release) - The Prime Minister has told the nation that VAT is a good thing for the Federation – it would lower the cost of living. VAT cannot be a good thing for the Federation because the Federation should not have been brought to the point where an IMF-suggested VAT is to be introduced in November 2010. If VAT would have lowered the cost of living Dr. Douglas would have brought it a long time ago, for sure before the elections of January 2010. It must be understood that Dr. Douglas is INCAPABLE of doing anything to make better the life of ordinary Kittitians. The fact is that the VAT will make life harder, mainly for the poor that Labour claims to love.
Dr. Douglas has been cross and disdainful to the people, has been mendacious. All sectors of society have been asking for the proposed rate of VAT but neither Dr. Douglas nor any agency of government could give a figure. At the “Consultations” over at the Marriott Dr. Douglas did not provide a figure, on his Tuesday show on Radio Labour (ZIZ) he did not give a figure. All the leaflets and government-produced documents have not given the public a figure. About one week ago in the Bahamas Dr. Douglas told the press that the figure could be about 19%.
There will be an iceberg in the Basseterre harbor if the rate is less than 19%. Knowing Dr. Douglas for his compulsive and habitual dishonesty the figure could be 20-25%. The state of the economy demands that the St. Kitts VAT be the highest in the region.
The economic decay is due to Dr. Douglas’ profligacy and gross incompetence, such levels never before a part of the economic profile of St. Kitts. Dr. Douglas has spoken of cancers in our socio economic system, not willing to accept the responsibility of being the main carcinogenic agent. The economic decay has metastasized, needs a miracle cure – the VAT will not be the miracle potion.
Dr. Douglas has a record of trying a number of drastic measures, none of which has eased the people’s burden. Church Street is dictated to by the World Bank and IMF. Electricity and water rates were increased by hundreds of percentage points. A punitive fuel surcharge of 80.90% was put on the people. That did not solve the electricity problem and St. Kitts continues to rent generators, is presently in the process of repairing faulty ones at the main power plant.
Dr. Douglas went as far as to swap land to pay the huge and crippling national debt. All of those measures plus others have not prevented St. Kitts from being one of the economies necessitating VAT introduction in the OECS. Dr. Douglas has behaved like the sailor at the bar after being at sea for three months.
It is understood that both the IMF and the World Bank have described St. Kitts as a runaway, brakeless, down hill moving freight train. Unlike the PAM-NRP government this Labour government has placed no restrictions on itself. The removal of Personal Income Tax was a self-imposed restriction by the PAM-NRP government. Anyone who claims that the removal of PIT was an error is a bloody fool. Sadly the present alliance of Labour-NRP is on a road contradicting to that of the PAM-NRP.
St. Kitts will be a typical VAT case in that historically VAT has been introduced to cope with a high national debt and chronic budget deficits. After World War II, a ravaged France introduced a VAT to assist in the rebuilding process. There has been no war in St. Kitts but over the Douglas Tenure the budget deficits have accumulated to 700 million dollars, i.e., three (3) times the total national debt of 1995, the inception of Labour.
World VAT rates average 15.25%, GREECE having a VAT of 25%. Clearly this 25% VAT did not solve Greece’s problems, neither locally nor from the EU perspective. There may never be any riot on the streets of St. Kitts but Dr. Douglas’ reckless incompetence will bring pain to the family table, the household.
In the manner that GREECE is putting STRAIN on the EURO currency; the Labour government is putting great stress on the EC dollar, National Bank and Social Security. Again it must be mentioned that plundering National Bank and Social Security did not PREVENT the need for VAT. IT IS NOT WORKING! WILL NEVER WORK UNDER LABOUR! LABOUR IS AN EPSOM SALTS government, designed and functions to purge the people.
Under the P.A.M. government St. Kitts had the most robust economy, maintaining the EC dollar.
Dr. Douglas is a blatant liar, telling the people that VAT will lower the cost of living. In Jamaica, St. Lucia, Dominica VAT led to almost a 50% increase in the cost of living. It led to 18 months of economic depression.
In all of these places compared to St. Kitts the people grow more of the food they consume. In St. Lucia there was a 75% drop in the revenue from tourism.
In St. Kitts there is a contracting middle class and a level of unemployment that the Labour government has been less than honest about. A few months ago some 1100 young people (mainly females) ran to the YES programme seeking financial assistance. Eleven hundred persons paid to be trained are not exactly 1100 employed persons. Soon the YES Programme will cease, the government will lay off civil servants and a many of young people will leave school. A vast number of unemployed persons is not congruent with the VAT.
The experts have recommended that the VAT be introduced after about two (2) years of public education. This must be thought of in the context that many of the persons on the YES programme were trained to offer services but had to exercise on the VAT.
Dr. Douglas would typically argue and find the excuse that VAT is an OECS commitment. Be that is it may a well managed economy in St. Kitts would have meant a smaller VAT. Each county’s VAT is determined by the soundness of its economic foundation. There was a recession in St. Kitts long before the onset of the world’s financial crisis. Dr. Douglas has been proven to be of such poor vision that while he plans to build an economy on borrowing the world was going into a recession with companies collapsing, banks folding and in general less money for loans and grants.
The PAM will educate the people as to how to cope with the VAT. Kittitians are advised to plant and laid that they already own and apply to government for land for farming. The rearing of birds and small ruminants will reduce the food bill for eggs and meat.
