INSIDE GRENADA WEDNESDAY December 12,2007 by Lloyd Noel Whether it is an Election Budget, an Xmas Budget, or a Budget to ensure that the progress continues under the NNP Administration – only time and the Voters choice will determine, one way or another when “D-day” finally comes along. The Prime Minister and Minister of Finance punch line was – “Let the progress continues under NNP” - every time he announced a new measure during his budget presentation on Friday November, 30th, 2007. And a very novel addition to Budget day in Parliament was the showing of a video for one hour – before the official opening of Parliament for the Budget presentation. In that video showing the Government highlighted a number of things done during the past four years especially, and some things going back to its arrival on the scene in 1995. Naturally, all the things shown were positive and nothing was said about the negative aspects pertaining to wasted moneys in Court cases over-seas, guarantees given to Con-men investors – who fraudulently drew down huge sum of those guarantees and then disappeared over-night – nor the empty thousands of acres of lands lying idle in every parish, while our people have to depend on imported foodstuffs we should be growing. The Government had passed some amendments to the standing orders of the House, to restrict the length of time each member was to be allowed to speak on the Budget. But the Administration, by the un-usual Video showing, gave itself nearly and hour extra of showcasing the positive things it had achieved over the past four years. Nothing was said about the huge costs, and now strangulating national debt hanging over the people’s head for repayment – because of the reckless and wasteful bad money – management that clouded most of the achievements. And as for the very best prospect of Grenadians ever seeing the benefits from our natural off-shore gas and oil deposits, that we now know exist in our territorial waters – all we got was silence, although we are well aware of the millions that have been spent and passed under the bargaining tables. It is against that background many pundits are saying this is an Election Budget, aimed at lulling people into a false sence of forgetfulness on the one hand, and on the other hand making promises that the powers –that – be know very well they cannot fulfill. The short-term efforts in supplying the so-called food baskets to most needy families, and foregoing some duties at the Customs on basic food items, so as to facilitate cheaper prices to consumers – will be fully achieved, no doubt. And that is so, because the eight to ten million dollars that will be needed to pay for the food baskets, or make up for the lost duties at the customs – have already been guaranteed by Developers, who have undertaken to spend whatever it may take to ensure that “the progress continues”. As for the duty-free concessions to farmers, and fishermen, and Tax-drivers, on new vehicles and Engines for their boats – all sound very nice and generous, but coming long after the damage has been done. It is a straight case of attempting to close the stable doors – after all the donkeys have moved out for one reason or another. Nothing, or very, very little, has been done for Farmers and fishermen over the years – and especially since “Ivan and Emily”. The economic situation with those two sectors had almost reached rock bottom –to the extent that farmers especially have been seeing hell before barely making a living, after their tremendous losses from those natural disasters, and the top heavy cost of living has made matters that much worse than ever. Because of the above situation, I would be very surprised if there are any Farmers or fishermen who can afford to go out there and try to purchase a new vehicle – even with a 100% duty-free concession – where he has to face the bank for a loan to be paid back over three to five years. The Bus and taxi owners can try it, because those vehicles will start producing no sooner they leave the Customs – but not so with the Farmers and Fishermen. The concessions and promises are more window-dressing than realistic economic provisions for development. With every million dollar supposedly granted or given to whichever sector, there should be corresponding measures to replace the said sum to meet the usual and on-going administrative expenses – in addition to the very heavy national debt repayments, that are virtually strangulating the Economy. With the on-set of the Caricom Single Market and Economy (CSME) – at least part of it – the government is committed to introduce (VAT) Value Added Tax, to replace the Customs duty losses on goods coming from the Single Market. The same has been postponed twice already, and in this $751 Million dollars Budget nothing concrete was forthcoming on that vital matter. Since it cannot be postponed indefinitely – and especially because we have nothing now-a-days to export duty-free to the other Single Markets – the pundits and analysts are firmly predicting, that the Elections will be called early in the new year and before the introduction of VAT, because once that tax comes on board – the cost –of-living ship will hit the “roof” and that is no election winner. The pensioners will no doubt get their $20.00 increase, the Policemen just recently got their increase – so it is just left for the Teachers to get the balance of the package agreement that was agreed three or four years with the authorities. It is a very sad blot on the Government responsibility chart, that the Teachers of all workers had to resort to industrial action to bring their problems to the forefront; and this should be a wake up call to those in authority, that the people as a whole have had more than enough and they are not prepared to keep or swallowing empty promises. The other matter, that is giving serious causes for concern, is the whole question surrounding “CAP BANK” – and the state of affairs involving people’s Fixed Deposits and ordinary Savings Account with that Bank. Two matters have already been filed in the High court – the one involving Anslem Clouden’s Carriacou client and his $1.2 Million dollars account, and the one in which CAP BANK sued Mr. Clouden – claiming that he had libeled the Bank, by the Statements made to the Grenada Today Newspaper, and the Paper and its Editor were also joined in that Suit, for an order to stop them publishing the so-called Libel and future defamatory matters touching and concerning the Bank. The preliminary application, for the injunction to stop future publication of the matters complained of, was not granted by the Court – because the issue of people’s hard-earned Savings, deposited in a Bank for their use as and when they require those savings, or when the same becomes due and payable by prior agreement – must be the most public oriented issue in the public oriented issue imaginable. And fair comment on that issue in the public interest should not be restrained by any Court. But this is not just a matter for the courts and those who will choose to take that route – it is a much bigger issue, and assumes national and far-reaching regional proportions, on the whole very delicate question of confidence in our monetary and financial institutions. And it is specifically in that context that I am surprised there has been no public statement from the Minister of finance on the matter. The Bank itself published a letter written to the Government on the matter – in which the Board of Directors claimed that the Government had promised to use its good offices, to persuade the (ECCB) Eastern Caribbean Central Bank in St. Kitts to grant Central Banking facilities to CAP BANK. A lot of little people, and some bigger ones in between – had un-suspectingly taken the decision to go with that local bank – partly because they wanted to support something local, and partly because the rate of interest was much better than in the bigger foreign owned Banks. The Government of the day gave the Bank a Licence to operate in the Tri-Island Estate – Eastern Caribbean Central Bank (ECCB) did not grant them Central Banking facilities, and that refusal is also a matter pending in the Court. CAP Bank has more Island-wide outlets than any other Bank in Grenada, and by extension employ for more employees than the others. So whether it is “Under God” or otherwise, that is the reality the powers –that-be have to face. I am of the considered opinion that the government has a very serious responsibility – to intervene on behalf of the public as a whole, and the Depositors in particular – because the situation is becoming more desperate as fixed deposits mature and the bank continues to face liquidity problems. Time is clearly running out. And as we come closer to the end of another callendar year, and to the highlight of the Christian Celebrations in honour of the birth of our Lord and Saviour Jesus Christ – people of all denominations, or none at all, are feeling the serious hard times and many are praying to the Almighty, or simply offering up cries and pleading for some spiritual being to come to our rescue. A whole lot of people are quite correctly, in my opinion, saying to me that no matter what changes are made, or whoever replaces whichever party in control or in opposition in the New Year – we will need very much more than mortal men and women, to see us through the trials and tribulations that lay ahead of our people in these isles. We have a tendency in these parts to sit back and wait fir the Hurricane, or land slides, or serious accidents of one of a kind or another to hit us – before we fall to our knees to beg for relief and salvation for the future. Some who are claiming to have had visions, or even meaningful dreams more than once – they are saying to me, very sincerely in my view, that as a people we have to wake up, before its get too late and further damage be inflicted on us all. During this season of fun and frolic and making merry – with whatever we may be blessed with for so doing and for helping those in need – I sincerely hope we heed the warnings and the pleadings to put “CHRIST” back in our Christmas this year – to help us prepare to face the years ahead.