ST. JOHN’S, Antigua – ANTIGUA-BARBUDA’S Minister of Finance Hon. Dr. Errol Cort has declared his confidence in the establishment of the Antigua-Barbuda Unemployment Benefit Fund as a direct response to buffer the impact of the global financial meltdown on that country.
Over the past financial quarter, the country has witnessed an upsurge in job losses as many hotels were forced to reduce staff while the nation’s economy had been recording significant reductions in government revenue compared to previous years. With the more recent threats facing the Antiguan economy including the liquidity problems of CL Financial and the Allen Stanford US $8 billion scandal, the nation has begun to finalize details of its Unemployment Benefit Fund to serve as a safety net for individuals directly affected by the economic downturn.
“In Budget 2009, we indicated to the people of Antigua and Barbuda that if the global financial crisis tended to get deeper, we would seek to implement certain measures that would cushion that impact on the more vulnerable within our societies. Since the budget statement, we are seeing that a number of hotels have lain off individuals.
“To date, we may have had about 500 persons laid off in the hotel sector. So the government has taken the view that we need to step in now to cushion that impact and provide some assistance to those individuals who would be laid off as a direct consequence of the downturn in economic activity,” said Dr. Cort in an exclusive interview with SKNVibes.
Cort informed that the Fund, which is expected to be in full operation in the month of March, seeks to ensure that the government can pay 60% of the weekly earnings (not exceeding a maximum of EC $1200 per month) of individuals who may have been lain off.
“We have also reached out to the various commercial banks in the country and we have gotten them to agree to put in place certain measures that would assist these individuals who have been laid off in terms of their mortgages and other loans. So we are putting in place various instruments to ease that economic burden on persons who may be suffering as a direct consequence of the downturn in global economic activity.”
To be an eligible beneficiary, individuals must have citizenship or legal residency and must contribute to the country’s Social Security Scheme, Medical Benefits Scheme and Board of Education for a minimum of 12 consecutive months. It is also compulsory that individuals would have made all payments of Personal Income Tax for a minimum of 12 months prior to unemployment.
Eligible individuals must not be pensioners and must have been unemployed as “a direct result of downsizing or redundancy by some firm or other company, dating back no later than October 1, 2008” and must be unemployed for a minimum of four weeks.
Dr. Cort informed that the Social Security Scheme would be the agent to administer the Fund.
Antigua News