BASSETERRE St. Kitts – “I am renewing my call to Government to stimulate the economy by providing the private sector with the appropriate incentives,” said President of the Chamber of Industry and Commerce (CIC), Michael Morton.
He made this statement while making his address at the 29th Annual Private Sector Banquet, which was held on July 23 at the St. Kitts Marriott Hotel, organized and hosted by the CIC and the FND Enterprise.
Morton first explained that we are living in interesting times, with countries all over the world wrestling with a number of significant challenges and surprising changes to which not even the economic superpowers are immune.
He made reference to some of the troubles that other countries - USA, Japan, China, the European Union and Brazil, Russia, India and China (BRIC) - are currently facing.
“In the USA, Republicans and Democrats are locked in a budget–balancing exercise, as lawmakers rush to reach a deal and save the country from defaulting on its debt. The people of Japan are consumed with recovery and rebuilding efforts following the recent earthquake and tsunami, at a time when theirs is the largest national debt. China is fighting to control spiralling inflation, to moderate the growing gap between rich and poor in a so-called communist country, and to maintain its one child policy as a means of alleviating poverty.
“In the European Union, which boasts a range of economic strengths, from Germany, the world’s fifth largest economy on its own, to the fiscal basket-cases of Greece, Spain and Portugal, the value of the Euro is under tremendous pressure as a result of national debt burdens; and the BRIC Countries- Brazil, Russia, India and China are now primed to overtake and control the world economic superpowers in the next quarter century,” he said.
The president appealed for special incentives to encourage the growth and development of the Small and Medium Enterprises’ (SME), a sector which he said is so integral to boosting our economic multiplier, and one that has been severely impacted by the economic downturn.
“If the private sector is to remain the main engine of growth, what we sorely need now is a stimulus package to allow us to inject more money into the economy and provide more jobs,” he said.
He underscored his pleasure at the Government’s recent announcement that taxes applicable to building materials will be reduced for a period of 18 months for first time homeowners whose homes are valued up to EC$400 000.
He voiced that the Chamber expects a positive impact on construction, and noted that measures such as that indicate what is required to stimulate the economy and generate critical employment opportunities for the Federation’s people.
He mentioned the growing number of foreign businesses in St. Kitts and Nevis, stating that the local private sector is committed to the free enterprise system and have no fear of competition so long as the playing field is level.
He, however, noted that the business culture of some of these nations is noted for tax evasion and bribery.
“If these unsavoury features of those cultures are brought here, the local private sector, which already pays most of the taxes, will not be able to compete and Government revenue will suffer.
“We call on the Government to keep a careful eye out to ensure that this does not occur and to stamp it out if it does. The Chamber invites all genuine businesses to join its membership and to benefit from the effective representation which such membership offers as a group, as opposed to individual efforts to influence Government and members on the same issues," he concluded.
