OFFICE OF THE PRIME
MINISTER
ADDRESS TO THE
NATION BY PRIME MINISTER HON. TILLMAN THOMAS
AT TOWN HALL
MEETING,
GRENADA TRADE CENTER
MARCH 31ST,
2009.
“Fellow Citizens, Good
evening
Once again I am
delighted to address you on issues of national
importance. This address is in keeping with our
commitment to continuously engage you, and to keep
you informed as we implement our plans to rebuild
our beloved Country for the benefit of all.
We also pledged regular
and active consultations. So this is why we are here
this evening to engage you the people in an
interactive and consultative forum.
A PERIOD OF
TURBULENCE
Ladies and gentlemen,
we live in a time of turbulence.
During the past two
years, the world has experienced a series of crises
which has severely affected the way of life of all
peoples everywhere. A food crisis, a fuel crisis, a
financial crisis and now an unemployment crisis is
now sweeping through all countries of the world.
Every one is at risk as we endure this very unusual
situation. Indeed, even here in Grenada, there are
some families where both breadwinners who only a
month ago had good paying jobs are now on the
breadline.
We in Grenada, and
indeed all of us in the OECS, have felt the impact
particularly through price increases in virtually
everything. Thankfully, fuel prices have fallen in
the past few months. Furthermore, many have
experienced a reduction in much needed monies sent
from family members living oversees. As we sat in
our homes and viewed the financial turmoil in the
United States, many were unaware that very soon, we
would also be addressing a similar crisis in our
front yard.
However, recent
developments with CL Financial demonstrate that we
are vulnerable to the global crisis as many
Grenadians have invested very heavily in that
company and its affiliates.
I wish to assure
persons affected that your Government, in
partnership with other Governments across the
region, is working to resolve this issue. It is a
regional problem and requires a regional solution. I
expect to provide more information on this issue
very soon.
Already the Government
of Trinidad and Tobago has moved expeditiously to
address this situation. The government of Barbados
has also taken certain steps.
Further, our regional
regulators are now working together to ensure better
regulation of the insurance sector in our region.
We in Grenada have also
begun to feel the effects of the economic downturn.
Most of the large tourism development projects have
slowed down or stopped due to a lack of financing.
Tourist arrivals have declined, bank liquidity has
tightened and some jobs have been lost.
In addition, we have
also found ourselves saddled with burdens inflicted
by the previous administration. On assuming office,
we found unpaid claims of EC$ 53 million to
suppliers of building materials and local building
contractors, truckers, caterers, and other
suppliers. Of this sum, $37.0 million was
accumulated in the 60 days leading up to the
general elections.
In an attempt to ensure
that our local businesses continue to operate on a
stable footing we immediately moved to satisfy their
claims and reduced this figure by EC$41 million by
the end of December 2008. We still have EC$ 12
million more to pay.
During 2008, EC$ 28.0
million in back pay alone was paid to public
servants and teachers. Government pensions were
also increased.
At the same time,
increased monthly interest payments on loans
restructured by the NNP government are also being
paid. Moreover, these interest charges continue to
mount with every passing month.
For example, in 2008,
interest payments were $8.0 million. In 2009,
interests payments will be $18.0 million. Earlier
this month, on March 15th Government made
a major payment of $9.0 to service these
restructured debts. The fulfillment of these
commitments, together with the ongoing monthly
obligations of wages, salaries and pensions, have
put tremendous pressures on our cash flow.
Yet in the face of all
these challenges, your government has taken several
bold and decisive steps aimed at stimulating
economic activity, alleviating the cost of living
and easing the burden of the poor and vulnerable.
Permit me to state for
the record some of the things that we have done so
far.
-
We have removed the
National Reconstruction levy putting back $ 10.0
million of disposable income in the hands of
ordinary Grenadians.
-
We have offered a
tax amnesty to give businesses and individuals a
chance to make a fresh start.
-
We have implemented
the Free School Books Program at a cost of $10.0
million.
-
We have increased
the monthly allowance under the Public
Assistance Program from $150 to $200.
-
We have also given
tax credit opportunities to hoteliers and
developers in the tourism sector who assist with
our Airlift Program.
-
We have extended
tax credits to businesses for approved Human
Resource development and training.
-
We have granted
concessions to all Grenadians under the duty
free barrels programs effected in the months
leading up to Christmas.
-
We have reached an
agreement with the bus owners to offer a
reduction in taxes on tyres for buses.
All of these actions
have contributed towards easing the financial burden
on all our citizens and are completely in line with
the commitments given in our election manifesto to
the people of this country.
These efforts by your
government have been recognized and applauded. Only
one week ago the International Monetary Fund (IMF)
had this to say about our efforts: I quote:“Reflecting
the strong measures, taken after the new Government
took office in July 2008, the authorities have made
significant progress with their economic program,
including a sizeable improvement in the fiscal
balance. The mission welcomed the government’s
success in bringing down the large stock of unpaid
claims (domestic arrears).”
As a result of our
demonstrated commitment and progress, the IMF
mission has indicated their intention to recommend
that we have successfully completed the third
review. More importantly, this recommendation will
lead to a higher disbursement of funds. Indeed,
subject to IMF Board approval, we expect the
disbursement to Grenada to double to approximately
$25.0 million this year. Further, our good
performance would unlock approximately $20.0m in
grants from the European Union.
Fellow Grenadians,
these funds were denied to the NNP administration as
they failed to perform. Yet, while all this have
helped, life remains quite challenging for most
Grenadians.
Ladies and gentlemen,
in this extraordinary crisis we are challenged to
come up with extraordinary responses.
GOVERNMENT IS MOVING
TO IMMEDIATELY STIMULATE THE LOCAL ECONOMY
In recent weeks, the
Cabinet of Ministers have been engaged in a very
detailed and disciplined review of the economic and
social situation in the country aimed at creating
spending power, increasing investments, stimulating
economic growth and improving welfare. As part of
that exercise, we undertook a complete strategic
review of the Public Sector Investment Program and
we evaluated the State Owned Enterprises, paying
particular attention to their investment plans for
2009-2010.
In collaboration with
the Grenada Industrial Development Corporation (GIDC),
we carefully reviewed all private sector projects so
as to identify their true status, and in particular,
the actual and potential bottlenecks that may impede
their timely implementation and completion.
Ladies and gentlemen,
as a result of these exercises, I wish to announce
the following package of measures aimed at
stimulating the national economy and arresting the
economic decline brought on by the global crisis.
Starting yesterday, Monday, the Ministry of Works
commenced implementation of the Road Improvement and
Maintenance Programme.
Under this program,
seventy five (75) gangs comprising of five (5)
persons each- for a total of 375 persons will be
employed on a monthly basis-over the next eight
months to maintain our roads. These teams will be
rotated monthly to ensure that the widest cross
section of unemployed persons get an opportunity, to
support themselves and their families. The total
injection from this program would be $3.0 million.
It should be noted that
this program is not intended to, and will not
replace the De- bushing program, which shall
continue to run in the months of August, November
and December. A total of 275 additional gangs of
seven persons each (for a total of 1925 persons)
will be employed in each of the three months to
de-bush our roadways. It is intended that the
injection for this program shall be $3.5 million
Commencing in the third
week of April, the Ministry of Agriculture will
initiate the Farm Labour Support Programme aimed at
revitalizing the agricultural sector through the
provision of labour for specially targeted farms and
agricultural activities.
Specifically, this
program will center on the clearing and replanting
of cocoa and nutmegs on the government estates.
Similar assistance will be provided for the
revitalization of cocoa, nutmegs and the fruit
sub-sector to the general farming community.
There will also be a
focus on the development and maintenance of the
propagation stations at Ashenden, Boulonge and Maran
as well as the repair and maintenance of some farm
and feeder roads. This program will run for a period
of 12 fort nights with 4 batches of workers hired
for 3 fortnights per batch. A total of 792 people
will be hired in this program over the 12
fortnights. The allocation for this program is $2.5
million
In an effort to create
short term employment and at the same time
rehabilitate many of the Government buildings that
have remained in a state of disrepair since the
ravages of Hurricane Ivan, a building renovation
initiative will be undertaken. In this regard,
priority will be given to the health and education
buildings. Work will shortly begin on the
refurbishment of Duncan’s Ward at the General
Hospital. In addition, a new Health Centre shall be
constructed in Gouyave.
The Ministry of Works
will also soon commence work on the Bishop’s
College, Carriacou, Calliste Government School and
phase 1 of the St. Mary’s Roman Catholic School in
St. Andrew. These projects will cost approximately
$1.7 million and create at least 225 jobs in 2009.
In St. David, $ 1.5
million will be spent on the La Calome Housing
Project for the completion of infrastructural works.
This will create several jobs and in the end provide
badly needed housing for 100 families.
In addition, the
Ministry of Youth Empowerment, Sports and Culture
will establish night lighting facilities in at least
one playing field in each parish at a cost of
$600,000.
Social Programs
Ladies and gentlemen,
government stands prepared to increase the number of
persons eligible for assistance under the Public
Assistance Program from the present 4000 to 4600. It
should be noted that this process will take place
throughout the remainder of the year as the audit of
the list continues.
The Ministry of Social
Development is presently undertaking a field survey
to identify all eligible persons not presently on
the list so as to ensure that the neediest persons
do not fall through the cracks.
Importantly, detailed
plans are afoot to commence the Skills For Inclusive
Growth programme in September 2009. Under this
program at least 300 young persons will be trained
annually over the next four(4) years.
Investments by State
Owned Enterprises
Within the next 3
months NAWASA will commence a $20 Million water
supply project from St. David to St. George’s. At
least $8.0 million will be spent this year on that
project . It is expected that 65 jobs would be
created.
Private Sector
Investments
In order to advance
private sector projects, cabinet has established a
Business
Facilitation Committee to meet with the
developers on an ongoing basis to identify and
assist in removing bottlenecks in the way of
implementation and completion of these projects.
This Committee will be chaired by the Minister for
Finance and include other senior Government
Ministers and officials. It shall also include
representatives of key business facilitating
institutions.
At this moment,
Government is engaged in negotiations with a foreign
bank aimed at assisting one or more of the
developers in raising concessional financing for
their projects. Given the special disadvantages in
the rural areas at this time, Government has decided
that special consideration should be given to
attracting businesses in the rural community.
Small Business
Development
Ladies and gentlemen
the small business sector is pivotal in the
provision of local goods and services to the public.
This sector accounts for over fifty percent of all
employment. More importantly, it provides numerous
opportunities particularly for our young persons to
realize their dreams to convert a business idea into
commercial reality. As a result, government is
committed to giving its fullest support to this
sector.
In the month of May
2009, the small business entrepreneurs’ programme
will be launched. This programme will provide
finance, training and outreach services by the
Business Development Center of the Industrial
Development Corporation.
The programme aims to
provide financial assistance to a targeted number of
one hundred (100) small entrepreneurs to assist them
in starting new initiatives, and or improving their
current business. The sum of $1.0 million is being
injected into this program.
I want to make a
special appeal to those persons who have been laid
off their jobs but have a good business idea to take
up the challenge. You may well be the world’s next
Microsoft.
Many in the business
community have welcomed our tax amnesty and are
responding positively. However, there have also been
calls for an extension. As a result, I wish to
announce that this amnesty will be extended to the
end of April
2009 with certain conditions. It is hoped that this
extension will be maximized by those who are yet to
do so.
The Rural Economy
In collaboration with
the European Union and a local financial
institution, we will be launching a rural credit
scheme to provide support for many farmers to
increase dramatically local production of fruits and
vegetables.
Within the next month,
the Marketing and National Importing Board (MNIB)
will launch a Market Guarantee Scheme to provide
support for our farmers to dramatically increase
local production of fruits and vegetables. This
programme will be a joint effort by the MNIB, the
Ministry of agriculture and targeted farmers. Under
this programme, the MNIB will be charged with
providing market intelligence and guaranteeing the
badly needed market for the produce of our farmers.
Specific fruits and
vegetables have been identified for both local
consumption and export under the scheme. We view
this initiative as fundamental to the achievement of
our food security goals, the generation of foreign
exchange and the provision of employment to our
farmers. The sum of $1.0 million is being injected
into this programme.
NATIONAL SECURITY
Ladies and gentlemen,
as minister responsible for national security, I
have to report that our RGPF has been doing a
significantly improved job. I wish to commend them.
However, in difficult economic times there are those
who may be attracted to a life of crime. I want to
take this opportunity to urge al citizens to be our
brother’s keeper. We need to pay attention to our
surroundings, seek each other’s interest and to
collaborate actively with the police.
WE WILL GET THROUGH
THIS PERIOD BY UNITY AND SHARED SACRIFICES
Ladies and gentlemen,
if we are to fulfill the plans outlined above, we
need to work closely together as a nation. The need
for a multipartite approach is greater now more than
ever in this crisis.
For this to happen we must arrive at a
consensus hammered out on the basis of mutual trust
and respect for all stakeholders.
We must build a social
pact in which we all recognize the need for unity
and shared sacrifice. That pact should address all
critical areas of concern to the social partners. At
the end we must enter into a social protocol that
will guide our conduct for the next three years.
This will be brought before the Parliament and
passed by way of resolution
Fellow Grenadians, the
survival of this crisis requires bold actions.
We articulated a vision
and plan and we will pursue them vigorously to
improve the well being of all Grenadians. With your
support and commitment, we will surmount all
challenges. We are a resilient people who have
demonstrated the courage and fortitude to overcome
adversity. We demonstrated that before and as recent
as in 2004 when we rebuilt our homes and lives after
hurricane IVAN.
We will do it again.
With our leadership, we
will reposition Grenada to take-off when the
economic tides turn. I urge all of you to be
patient, to persevere and to commit to rebuilding
Grenada for our families, our communities and our
continued prosperity.
May God Bless Grenada
I thank you”
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