BASSETERRE, St. Kitts - FORMER Minister of the Labour Party Government Dwyer Astaphan described 2010 as a very challenging year for the Federation and warned that the public has a right to demand better governance from those elected to serve.
Astaphan, in an exclusive interview with this media house, pointed out that a number of events would remain etched in the minds of the people of St. Kitts and Nevis.
“Two thousand and ten was very challenging for all of us. We had a very stressful election. Leading up to the election, the country was stressed to maybe even beyond the constitutional limit of the parliamentary term to be served by an elected government, and we went into a very stressful election in which there were a number of misgivings,” Astaphan said.
Astaphan said after the results a number of new measures were introduced to the public, among them being the Value Added Tax (VAT). He noted that the public did not seem to be aware that these new strict fiscal measures were going to be implemented.
This, he indicated, was an election ploy in garnering votes for the re-election of the government.
He noted that the economy continued to be in a very difficult state due to a number of external and local factors, while describing last year as challenging because of governance, economy, political processes and mode of the body politic in the country.
Sharing his thoughts on his predictions for this year, Astaphan said it would be similarly challenging as in 2010, noting that the Federation is currently in a situation where the public is faced with a massive national debt.
He said the government was warned consistently by the International Monetary Fund some 10 years ago that the civil service was too big was getting bigger. He noted that the civil service had some 6 000 employees and claimed that this amount was excessive.
“...that the efficiency in the public service was below standard; that accountability and transparency in the public service were below standard; that the debt was too high and getting higher; that the debt to GDP ratio was too high, yet getting higher, and instead of taking the appropriate steps in phased basics the Prime Minister essentially let most of that slide until he secured an election victory in January 2010, where after he came on like gang busters with all these very stern fiscal measures,” Astaphan said.
Astaphan said there is no record in history that points to where a country has been taxed into prosperity. He said it is clear that the Prime Minister seems bent on using this approach in an effort to reduce the massive national debt; therefore, the introduction of a package of taxes.
The former Constituency Two Parliamentary Representative pointed out that with the introduction of the new taxes, it would place unbearable strain and challenges on a number of companies and individuals.
“It means that businesses’ operating costs would be costlier. It means logically that the costs to consumers will increase, and these increases in expenses by businesses and consumers will result in a reduction of disposal income by businesses to expand and create more economic activity, and by consumers to consume.
“This extra money which is being sought will be coming from sources, namely businesses and consumers, who in effect will have less money to pay the same taxes and less money to enhance themselves economically…all to service this astronomical debt,” he said.
He argued that it is difficult to accept the promise given by Dr. Douglas that the per capita would be doubled in 10 years’ time, noting that if the Federation were fortunate in not receiving any shocks to the economy, then the debt to GDP ratio should be reduced to 140 percent by the year 2014.
“It is therefore going to be very difficult to wrap one’s head around the promise made by the Prime Minister, or the undertaking given by the Prime Minister in his New Year’s Address given for 2011, that the per capita GDP will be doubled in 19 years’ time.”
Making comparisons with other countries, Astaphan said, “Let me tell you that Ireland which is in deep trouble has a GDP of 115 percent. We are about 195 now, Ireland is about 115. We are 195 and if we are lucky and do not have any shocks, the debt to GDP ratio could go down to 140 percent. Greece, which has received a lot of international press, is in a lot of fiscal difficulty. The debt to GDP ratio in Greece is about 120 percent. And here is the International Monetary Fund telling us that if you follow all of these guidelines that we have proposed to you, and if on top of that you are lucky and you don’t experience any major shocks, your debt to GDP ratio might go down in 2014 to 140 percent.
“So, if we think that Ireland and Greece are in a deep hole, then our facts speak for themselves and tell you that we are in an even deeper hole. We cannot fool ourselves because Ireland and Greece have far more wealth, far more resources at their network disposal than does St. Kitts and Nevis,” he stressed.
He listed a number of areas that are in urgent need of assistance, and among them are roads, government facilities, government buildings, electricity supply and cemeteries.
Astaphan noted that so grave are the challenges and difficulties being faced by the government that the school meals programme is unable to provide quality meals for the children.
“It has been reported, and I have not heard any denial, that children are getting back and necks for the school meals programme. There are reports of deficiencies with the supplies for the Ministries of Education and Health for all sorts of things. Government needs money to deal with these sorts of things, but if money is going to come from people who have less and less money, how are they going to live?” he asked.
He pointed out that in an effort to save the Federation from a catastrophic situation, selling of the country’s lands to foreigners would be done.
“The Prime Minister may have some friends who will come in here with billions of dollars, maybe to buy up three quarters of the country. And in the next 10 years, statistics tells us that the per capita GDP would be doubled, but the financial, economical and social conditions of the average Kittitians and Nevisians would be as bad or worst than they are today,” he declared.
He further pointed out that the situation currently being faced by the people of St. Kitts and Nevis is very harsh, adding that the time has come for the public to recognise that they need to hold the government accountable for the many difficulties and challenges being faced.
Astaphan also said that the Prime Minister’s mismanagement, imprudent spending and unprofessional manner in running the affairs of the Federation has resulted in the grave difficulties being experienced.
