BASSETERRE, St. Kitts - PRIME MINISTER Dr. the Hon. Denzil Douglas said Tuesday (May 12) that economic challenges in the Federation as a result from the global financial crisis can only be offset by the “creativity” of the nation’s solutions.
“I believe what is happening in St. Kitts-Nevis is directly responding to the situation abroad. We, however, must continue to take note that we are still very vulnerable. We can still be affected in several different ways.
“We are not America. We don’t have like Obama, the billions of dollars to pump into the economy. We don’t have that kind of stimulus package, but we have our own stimulus package. That stimulus package has come from our own creativity,” Douglas said on his weekly radio programme, “Ask the PM”.
He stated that while some may have questioned his government’s spending on the Youth Empowerment through Skills (YES) Programme, the millions of dollars poured into it would benefit the economy in the long run.
“Although we knew definitely that the financial situation was very challenging, we balanced what good we would do in spending a few million dollars on young people.
“Here we have a balancing act to really perform. Yes, the economy is severely challenged. Yes, financially the situation is challenging, but can we really afford to have so many young people on our streets with nothing to do?” the PM asked.
He noted that other initiatives such as the recently enacted tax amnesty, removal of taxes on basic goods and allowing persons to build on land before they have finished paying for it were all “creative” policies put in place by his government to keep the economy flowing.
The Protection of Employment Amendment, which would allow workers in the private sector to collect a gratuity after 10 years of continuous service with an employer, was also mentioned as a solution to the economic crunch many persons are feeling at this time.
“The workers must be warned; they must save something for the rainy day. It is in this kind of state that a number of workers would probably lose their jobs. A number of them may want to move on to something else that they would want to become self-employed, but they can’t move.
“We need to introduce a gratuity system, so if they want to move before everything crashes on them they should be able to move and get some benefits from the work they have done over the years,” he said.
The stimulus effort of the Protection of Employment Amendment was however quickly met with stinging criticism from the Chamber of Industry and Commerce (CIC).
“It will have a seriously adverse effect on the investment climate and will be a disincentive to investment in labour-incentive industries. It will create an incentive for employees to do 10-year stints and for employers to let go employees under 10 years. It will create a revolving door which will adversely affect productivity and employer/employee relations and increase training costs,” CIC Legal Counsel Charles Wilkin said at the organisation’s Second Quarter Luncheon.
Douglas said that his government stands by their policy decisions as they attempt to shield St. Kitts-Nevis the global financial conditions.
“I believe that the policies of the government, in attempting to stimulate the economy in these specific ways, are going to be helpful.”
