CATEGORY:BUDGET SPEECH
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The following excerpt is taken from the 2006 Estimates of Revenue and Expenditure,delivered by the Hon. Anthony Boatswain, the Minister of Finance, under the theme, "Consolidating Growth, Enhancing Revenue and Providing Safety Nets for the Vulnerable.”



****** CONSOLIDATING GROWTH ******

d) Tourism and Culture

Mr. Speaker, the Tourism industry in Grenada is poised for a spectacular take-off, and the impact on the economy in general will be monumental.

Over 90% of our hotel room stock has been rehabilitated at a much higher standard. In this regard, we must applaud the efforts of owners and proprietors of such facilities like the Spice Isle Beach Resort, Coyaba Beach Resort, Grenadian by Rex Resort, the Flambouyant and the many other properties that have undergone significant upgrading over the past two years.

In preparation for CWC 2007 approximately 1,300 rooms will be added to the total room stock under the Home Stay Programme.

For both the Hotel upgrading and the Home Stay Programme, Government has provided support by way of duty and tax concessions on building materials, furnishings and equipment as well as corporate tax exemptions in excess of $15m.

Mr. Speaker, this is a good example of Government/Private Sector Partnership working in the interest of the nation.

Much of the work of the Ministry of Tourism in 2006 concentrated on training and improvements to attraction sites. In this regard, a number of students from NEWLO and TAMCC were trained in hospitality arts aboard the Princess Cruise Lines. Some ten students have started one and two year hospitality training programmes in Antigua; and the Ministry also facilitated the recruitment of thirty one persons aboard the Norwegian Cruise Lines. Several Tourism attraction sites were upgraded including, Leapers Hill in Sauteurs, Concord Falls, Grand Etang, and Grand Anse. Work is continuing on others.

With regards to product development several private sector initiatives such as the Mollinere Marine Park and the Helvellyn ceramics projects were undertaken in 2006; the construction of lifeguard lookout towers started on selected beaches; a new vendor's booth is under construction at Concord; the national beautification campaign commenced and park benches and picnic tables were placed at public attraction sites.

Mr. Speaker, probably the greatest prospect for growth in this sector lies in the renewed interest by both local and foreign investors in undertaking major investment projects in the Tourism Sector.

One reputable British Newspaper, recently described Grenada as “the Millionaire's Playground”, in obvious recognition of the new found interest by reputable investors in our country.

Just over one month ago, we witnessed the historic ground breaking ceremony to mark the commencement of work on the EC$1.6 billion Port Louis Project. This Project involves the construction of a World famous marina in the Lagoon Road area, a modern five star hotel and night life facilities.

The Renovation of a 250 room facility at Cinnamon Hill has also commenced. The same developer has also purchased the Mt. Edgecombe Plantation in St. Mark which will be transformed into a major eco-tourism facility.

Mr. Speaker, 2007 will also see the start of a Four-Season Hotel Project in Grenada.

Mr. Speaker, work is also progressing on a major hotel and marina project in the True Blue area, spearheaded by local Entrepreneurs. Construction work on the hotel project in Fort Jeudy will also commence shortly.

The Levera Hotel Project

I wish to make a special statement on the proposed Levera Hotel Project.

This project had commenced under a previous developer, but due to unforeseen circumstances was not complete.

Mr. Speaker, the proposed development was condemned, ridiculed and scoffed etc, by Members of the Opposition who did not have the vision, much less appreciate the tremendous benefits that such a project would bring to the northern and eastern parts of our country.

Mr. Speaker, I am pleased to inform this Honourable House and the nation that this very important project is back, although modified under a new developer.

Mr. Speaker, this new developer, a man of reputable international standing, and with strong Grenadian connection has decided to continue with the development of the three hundred and sixty acres site at Levera, as a High End Eco Tourism Project.

The entire project will provide 250 rooms on completion and will be undertaken in various phases. Phase one of the project shall include the following:
(1) 40 room boutique hotel and villas.
(2) The development of turtle watching.
(3) The development of nature trails within the Levera National Park.
(4) Promoting visits to Carriacou and the Grenadines as part of the marine experience offered by the Grenadines.
(5) Integrating the local restaurants on Bathway beach and in the town of Sauteurs by providing assistance to the owners to blend with the standard of the restaurants at the resort.
(6) Assisting farmers involved in Organic farming.
(7) Horse back riding.

The developer has also agreed to undertake the underwriting of the guarantee of the outstanding debt. Bonafide claims of property owners whose properties were acquired will be satisfied.

Estimated cost of the project is US$112million.

Mr. Speaker, hundreds of Grenadians will be employed during the construction and operational phases of these mega projects. We have already started to prepare our young people to take advantage of the opportunities these projects will bring, by sending our people abroad for advanced training.

Mr. Speaker, it was refreshing to hear the Leader of the Opposition express his support for these projects, by indicating that the reason for the renewed interest in Grenada by foreign and local investors is the ascendancy of the Opposition in Parliament. We urge the Leader and his team to continue their ascendancy in opposition.

Mr. Speaker, I must admit that in our eagerness to attract investors to our shores, we made some mistakes in the past, by not scrutinizing them more closely. We have paid a price, but we have learnt from our mistakes.

That is why I am confident that the investors behind the Port Louis Project, the Four Seasons project and the Levera Project will deliver, because they have been tested internationally, and have not been found wanting.

Mr. Speaker, our time has come!

Culture

In the area of culture, in 2007 Grenada's carnival will be given special attention. Not only will the allocations for mass bands, steel bands and for the carnival committee be increased, but also the business sector (including banks, insurance companies, hotels, shops, restaurants, taxi drivers, etc) will all be called upon to do their part in promoting Grenada's carnival for 2007. In fact, this task has already started as the Department of Culture has produced a document detailing the major cultural and entertainment activities to take place in Grenada during the staging of the CWC games. Government has allocated EC$0.3m for cultural activities in 2007.

In keeping with the suggestions arising from the national consultation, Government has allocated EC$1.6m for the rehabilitation of Seamoon Pavilion. In addition, again arising from the consultation, Government has allocated EC$0.5m for a national beautification programme, which involves the planting of flowers alongside the main roads of the country.

With this heavy focus on tourism and its related activities in 2007, the allocation for marketing and promotion has increased to EC$14m and the total Budget for Tourism is EC$24.1m as compared to EC$15.7m in the previous year. The industry is to increase its contribution to GDP to well over 10 per cent in 2007, and will be placed on a path of sustained growth and development.

e) Housing

In 2006, the Government continued to satisfy the housing needs of the population through the implementation of the Emergency Housing and Recovery Plan. This plan was funded by a soft loan from the Government of Trinidad and Tobago, a grant from the Government of Venezuela and from the National Reconstruction Levy. During 2006, 500 homes were built and 300 have had some repairs done to them. Additionally, some 10,000 families received material assistance for the rebuilding of their homes. A total of EC$35.7m were expended on the project. In addition, under the Home Owners Soft Loan administered by the Housing Authority of Grenada, a total of sixty five (65) loans were disbursed. Nevertheless, there are still unsatisfied needs.

Therefore, in order to effectively plan and provide up to date information on the status of Grenada's housing needs, a list outlining the status of repairs to all residential, commercial and public buildings is essential. To this end, the Department of Housing in collaboration with the ARD initiated a Listing Exercise in July 2006.

As of November, the Exercise has been completed in 10 of the 15 constituencies. This information is vitally important. It will assist the National Disaster Management Agency in preparing an evacuation plan, allocating relief supplies and identifying buildings to be used as shelters. It will also assist the Government and others in identifying outstanding housing needs.

Mr. Speaker, the Government of the Peoples Republic of China has graciously offered 2,000 housing units to Grenada. A team from the Peoples Republic of China was recently in Grenada to visit the sites and obtain preliminary drawings. During the first year of implementation some 554 of these units will be constructed on six sites throughout the island.

Similarly, the Ministry mandated the ARD to provide Project Management Services for the infrastructural works at the Simon Bolivar Human Settlement at Lacalome. The ARD, in consultation with the Housing Authority of Grenada, has prepared the design works for roads and bridges, as well as completed the competitive tendering process for these works. Government will continue its support for the housing recovery programme in 2007, for which a budgetary allocation of EC$17.8m has been made

f) Youth Development

Mr. Speaker, this Government continues to place great emphasis on the development of our young people as a basis for ensuring that our country remains in good hands, long after many of us would have contributed our part to nation building. The placing of the Department of Youth under the Prime Minister's Ministry did not only reflect the importance this Government gives to our young people in this country, but also served as the stimulus to ensure the programmes for youth development and training were effectively implemented. In deed, this Government is concerned about the holistic development of our youth and has therefore been implementing programmes and policies aimed not just at generating employment for our young people, but more importantly giving them a voice and an opportunity to contribute to nation building at a young age.

In 2006 much of the work of the Ministry concentrated on the implementation of the National Youth Employment and Training Programme. An additional 700 young persons received employment under the IMANI programme; while others were trained in small business development and in some cases were provided with seed capital to start their own businesses.

During 2006, our young people were often called upon and responded positively to voluntary work; as a result, today we see our young people making a more meaningful contribution to, and being less alienated from society.

In the area of infrastructure work on the rehabilitation of the Grand Bacolet facility has started.

In 2007 a total of EC$19.7m has been budgeted for the department of youth, as we continue to give our young people the necessary attention. The department will strengthen its leadership and social skills development programme by providing academic and skills training to over 250 young parents at 15 centres throughout the island. A number of youth groups will be given special support to ensure their efficient management, operations and sustainability. A major project to be completed in 2007 is the rehabilitation of the Grenada Youth Centre.

g) Sport Development

Mr. Speaker, in 2006 capital spending by the Ministry of Sport Community Development and Cooperatives amounted to EC$6.7m. One of the main areas of responsibility was preparing for the CWC 2007 in conjunction with the Local Organizing Committee. With the Stadium now 85 per cent structurally complete work is now being focused on finishes and installation of services by utility companies.

In preparation for the event, training was provided to many persons in pitch management and preparation, in security and simulation exercises to ensure quality security. So far 11,806 tickets have been sold for the Grenada games.

As we all know, the Masters Cricket match was staged in September as a test to the quality of our preparation, and work on Phase II of the General hospital has commenced.

The Ministry was also involved in preparing a number of our athletes to take part in regional events. Grenada was once again champion in the Windward Islands Secondary School games. In the Sir Garfield Sobers Cricket Tournament in Barbados, the team from Grenada placed second. Our national cricketers reached the semi-finals in the 20/20 Cricket Tournament and four of our players were selected for the Stanford 20/20 West Indies team; this was a moment of glory for all of us here in Grenada; Grenada also won two Silver Medals at the CAC Games in Colombia.

In 2007, a total of EC$10.4m have been allocated for the Ministry of Sport capital programme. The upgrading of our rural sporting facilities will receive priority attention in 2007. In this regard, budgetary provision of $2.5m has been made available to facilitate the completion of the upgrading of the Cuthbert Peters Park in Gouyave. As was indicated in the consultation, this project is long overdue and Government will make every effort to have it completed in 2007. The Ministry will continue to work closely with the Local Organizing Committee to ensure that the twenty four deliverables are in place for the successful staging of the CWC Games. Work will continue on the preparation of practice venues at La Sagesse and Progress Park where two new pavilions are now in construction. The Ministry will continue to train young persons in pitch and field management and supervision. And very importantly, every effort will be made to provide night lighting facilities in major playing fields, staring in 2007 with at least one playing field in each parish. In collaboration with the Youth Division, the Ministry will embark on a community based programme that will provide some training and coaching for our young persons in different sporting disciplines.