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| Top photo shows Mrs. Jacqueline Armony of the St. Christopher Society making a point during the discussions ahead of the 2005 Budget. (photos by Erasmus Williams) |
BASSETERRE, ST. KITTS, JANUARY 19TH 2005 A strong reform package is being implemented to place the national debt on a downward path.
This was reiterated by St. Kitts and Nevis Prime Minister and Minister of Finance, Dr. the Hon. Denzil L. Douglas when he met representatives from the social and economic sectors in the Federation in his annual meetings in preparation for the presentation of the annual budget.
Dr. Douglas noted that the fiscal stabilisation programme which his St. Kitts-Nevis Labour Government has been engaged in over the past two years and the implementation of a privatisation and commercialisation programme are among the critical issues for discussion with the social and economic partners.
Tighter expenditure control and improvement in tax administration are areas that we must continue to pursue vigorously as a government. A comprehensive privatisation and commercialisation strategy will be developed in consultation with our specific stakeholders, said Prime Minister Douglas.
He said that in its continuing efforts to reducing the stock of public debt, it is critical that the tax systems be reviewed and agreement reached on the role of Government, including the services that Government should offer.
Prime Minister Douglas referred to the development of contingency plans to protect the twin-island Federation from adverse economic shocks and social dislocation.
The National Disaster Mitigation Council has been given responsibility for the formulation of plans for disaster management and disaster mitigation. The council has representatives from various public sector entities as well as from the Chamber of Industry and Commerce, the Hotel and Tourism Association and the Faith-based organisations in the country, said Prime Minister Douglas.
He said that the National Security Plan that integrates the operations of the security forces in times of natural disaster is also intended to ensure a coordinated response to any threat to the society.
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| *Photos of representatives from the social partners in discussion with St. Kitts and Nevis Prime Minister Dr. the Hon. Denzil L. Douglas. (photos by Erasmus Williams) |
The St. Kitts and Nevis leader disclosed also that the issue of a regional insurance scheme for public property is being researched with assistance from the World Bank.
This particular category of issues is of extreme importance considering what we have been through in the past few years with regards to serious hurricanes. What we have seen recently just last September in our neighbouring country of Grenada and what we have seen in the Indian Ocean countries recently with regard to the tsunamis that took place following the earthquake, said Prime Minister Douglas, who noted that this concern has to be treated very seriously.
He said he has just returned from Mauritius where he attended the important consultation of Small Island Developing States on how to protect ourselves and ask for the assistance of the international community to ensure that there is sustained development in our country and ensuring we are not the worst off in situations when we have been threatened by serious natural disasters and changes in the climatic conditions.
Another issue discussed was the restructuring of the St. Kitts Sugar Manufacturing Corporation (SSMC) and the shifting of its focus from the manufacturing of sugar to producing a wide range of agricultural products and services.
The transition process will pay special attention to the protection of the rights of the workers in particular, alternative uses for sugar cane and an agricultural diversification programme, said Dr. Douglas in his opening statement.
The Prime Minister also disclosed that sustained high prices in the petroleum industry have had an adverse impact on local revenue from that source.
The amount budgeted for in this area has already fallen short by over EC$4 million. In addition the Government owes suppliers some EC$2 million as the surtax which buffers consumers from being impacted directly by rising prices internationally, was negative for the most part of 2004, said the Prime Minister and Minister of Finance.
This will have to be reversed. It means that Government must set aside funds to pay suppliers in order to keep the prices of unleaded gasoline, liquid petroleum gas and kerosene at their current levels. I do not believe that we can continue to do this, said Dr. Douglas.
He disclosed that preliminary results on the economic outturn in 2004 indicate that revenue collections surpassed the budgeted amount by over EC$10 million.
This Dr. Douglas said was due in part to increased growth as well as improved vigilance in the Federations tax administration exercises.
Expenditure however outpaced the increase in revenue as the overdue increase to Civil Servants was eventually paid. We expect to implement certain expenditure reduction methods in 2005 without compromising Government services, disclosed Prime Minister Douglas.
He said that as his government continues on the path to the creation of a peaceful and happy society, providing opportunities for the improvement of the lives of all of its citizens, it is important that consultation and collaboration with the private and social sectors takes place as has been taking place for the past several years.
This is why we continue to engage in consultations of this nature so that we would be at the beneficiary end of receiving a wide range of imputs to build our proud nation, said Prime Minister Douglas, who was first elected in July 1995 with renewal of the mandate in March 2000 and October 2004.
