BASSETERRE St. kitts, December 12th, 2011 -- In the recent PRESS CONFERENCE the questions hinged on NEW TAXES on INCREASES IN TAXES. It would have sounded weird but no one had the savvy to ask the prime minister if there would be any REDUCTION IN TAXES. Dr. Douglas would have spewed fire if added to the question was “FOR THE RICH.”
In mid 2011 the country was in awe on hearing that Dr. Douglas gave a TAX BREAK TO THE RICH, by reducing the STAMP TAX on land sales over in the South East PENINSULA. In contrast a few weeks ago Dr. Douglas told the average Kittitians that they would have to pay more for their dogs. Prior to that Dr. Douglas brought back the FUEL SURCHARGE after removing it to fool the people coming up to the 2010 elections.
Dr. Douglas has spoken of WIDENING THE TAX NET. The net has been very effective in choking the minnows (small people). However, Dr. Douglas’ net has allowed the BIG BOYS, e.g., THE PINK PLANTATION to escape – to hold on to millions in HOTEL ROOM TAX.
Why should the Labour government allow a hotel to hold nearly one hundred million dollars but defaulting on 2.6 million it owes to BOND HOLDERS? Apparently Dr. Douglas prefers to tax the people before demanding the money from the hotel. The hotel is in fact getting a tax break.
Dr. Douglas says there will be no new taxes BUT taxing is a WAY OF LIFE FOR LABOUR. It must not be forgotten that Dr. Douglas denied the coming of the VAT even after signing the agreement and was establishing a VAT OFFICE. By May 2012 the people will know if they have to pay more for cooking gas, whether the VAT will be increased.
The people have been paying indirectly and many services are on the decline. In the same way that the BOND AGENCY operates via the ECCB so does DRUG PURCHASES in the OECS. All the OECS countries put money into an account at the Central Bank for the purchase of medicines. It is left to wonder if the lack of basic drugs in our public pharmacies is due to the Labour government DEFAULTING on its contribution to this FUND.
The IMF report has already stated that since 2008 the government has been in arrears. What was 75 million dollars must be now well over 150 million dollars. With the recent default on another 75 million dollars the state is further in arrears. The default will carry a penalty which makes the debt much greater.
It is a report that the Labour government would easily have hidden but the ECSE has said that the government has not put the money into the system. Government cannot pay bond holders their interest; what if these bond holders had asked for the principal?
Dr. Douglas and Labour have put the country in so much debt that the government is presently paying at least two agencies to negotiate our debt. The Labour government must be paying these two agencies more than the 2.6 million that was due to bond holders on November 25, 2011. What if one day soon the government defaults on paying these agencies? This is the dilemma that Dr. Douglas has caused.
Dr. Douglas is obviously trying to slight this matter but it is another serious RED (Labour) FLAG. Labour’s RED is really putting the country further and further into the RED. Until a bond is cashed in or retired, INTEREST is the important matter, especially since government usually offers a luring interest rate.
Government on issuing bonds understands the psychology involved. The maturity date of November 25, 2011 is just before Christmas when most persons need the extra money. This must be very disappointing for many especially in these hard times created by Denzil Douglas.
These Bonds that the Labour government is defaulting on were issued through the ECSE and certainly regionally. This raises the matter of CONFIDENCE in government’s ability to raise money in the future. In terms of the OECS, St. Kitts’ default can be systemic, affecting government’s ability to raise money. Just a few years ago shareholders at National Bank had to wait for near one year before getting their dividends.
Maybe National Bank is now learning a lesson it should have learned long ago. The government could not get the 2.6 million from National Bank. There must be a clause in the bond contracts which would demand that the government pay more on default of the interest.
Ours is a journey from SUGAR COLONIALISM TO DEBT COLONIALISM. St. Kitts under Labour has become a mendicant state, the Greece of the Caribbean. The IMF is our new COLONIAL MASTERS. Dr. Douglas once said that the IMF is at our doors. He should have said the “I” brought the IMF to “OUR” doors.
In admitting to the default, Dr. Douglas said clearly, that his government was under DIRECTIVES/INSTRUCTIONS. It is the IMF that is giving the orders. The IMF has ordered the Labour government to sell land, freeze wages and increments, to bring back the fuel surcharge, increase taxes, spend less on medicines, etc. The IMF has now ordered Dr. Douglas to default on the interest payment.
It cannot go unnoticed that many who are sitting exams, have to make their payment to the Treasury. In the past such monies were paid to the Ministry of Education. Will we one day hear that the government has defaulted in its payment to CXC?
It is sad to know that in the Hall of government of this our independent nation, the IMF is located FIRST DOOR on the RIGHT. Everybody entering have to say “GOOD MORNING MR. or MRS IMF”. We thought that we had gone beyond RULE BRITIANIA, GOD SAVE THE QUEEN, THE MARCH INTERLUDE – BRITISH COLONIALISM.
THE IMF is raising its flag over St. Kitts and apparently the IMF THEME SONG or ANTHEM will soon be played in our government offices. OR, ZIZ Radio and TV will very soon begin and end programming with the IMF theme song. Instead of our National Flag fluttering on ZIZ TV the IMF logo might be in our faces – DEBT COLONIALISM.
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