By J. Emile Ferdinand
With the annual National Budget session of Parliament approaching, it is perhaps as good a time as any to focus some attention on a rarely mentioned law called “The Saint Christopher and Nevis (Revenue Allocation) Rules, 1983” (S.R.&O. No. 46 of 1983).
This SRO is a constitutionally-mandated Regulation signed into law by the Governor General on the advice of the Prime Minister, but the Constitution states that “no such advice shall be given without the concurrence of the Premier” [Section 110 (4)].
SRO No. 46 of 1983 makes fairly interesting reading. I do not propose to set out all three pages of the SRO but I urge you to obtain a copy and read it in full, as well as Section 110 of the Constitution.
Paragraph #2 of SRO No. 46 of 1983 states that:
“The proceeds of all taxes collected in Saint Christopher and Nevis under any law shall be shared between the Government of Saint Christopher and Nevis and the Administration of Nevis in the manner appearing hereunder and the following provisions shall apply in respect of common services and debt servicing.”
It then sets out a formula for the “Annual Calculation of Distribution of Revenue between the Central Government and the Nevis Island Administration.” The formula appears aimed at giving effect to Section 110(1) of the Constitution which states that:
“Subject to subsection (2), the proceeds of all taxes collected in Saint Christopher and Nevis under any law shall be shared between the Government and the Administration and the share of each shall be determined by reference to the proportion between the population of the island of Saint Christopher and the population of Saint Christopher and Nevis as a whole or, as the case may be, the population of the island of Nevis and the population of Saint Christopher and Nevis as a whole, as ascertained by reference to the latest available results of a census of those populations carried out in pursuance of a law enacted by Parliament.”
I do not recall any National Budget, certainly in recent times, in which there was any active discussion or even articulation as to the operation of Section 110 of the Constitution, or of the formula in or the requirements of SRO No. 46 of 1983. This must either be a result of this SRO being incredibly prescient and durable, or it being ignored by successive governments on both sides of The Narrows. If it is the latter reason, each of the four political parties represented in the National Assembly has at one time or other since Independence been in power in either the Federal or the Nevis Island government, so the responsibility for such is shared by all of the political parties.
With the Four Seasons hotel closed for a protracted period and the National Debt demanding serious and sustained attention by public policy-makers, one clear characteristic of SRO No. 46 of 1983 that is highly relevant to these times is its recognition that both St. Kitts and Nevis are “in it together”. “It” being the financial and economic activity that takes place here in what is a single economic space. A recognition of this common interest is what underpins the constitutional requirement that the Prime Minister and the Premier must agree on any changes to the Revenue Allocation Rules in SRO No. 46 of 1983.
Another significant feature of this particular SRO is that it provides a principled framework for addressing common financial challenges and for sharing of revenue. Implicit in its structure is that the Federal Government and the Nevis Island Administration must keep each other fully informed of each other’s economic and fiscal policies as well as actual statistics in that regard.
Thirdly, population shifts will have direct, measurable impact. So the next census will not only be of importance for constituency boundaries!
If, as appears to be the case, this law has been continuously ignored, then our leaders should explain why. This also begs the question: Are Governments free to select which laws they obey and which they ignore, while the general population has no such choice?
Pronouncements from Nevis suggest that the current Nevis Government wishes to abandon the existing law and levy, collect and rely on their own revenues. An explanation of the economics and logic of this desire is also required as a two-thirds majority of the National Assembly is required to change the Constitution to allow Nevis to legislate on taxes. As a result, this is a matter on which the public should be fully informed and consensus sought.
Attached reference documents:
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Statutory Rules & Orders of 1983, No. 46 - click here
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Section 110 of the Constitution of St. Christopher and Nevis - click here
