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 ******

a) Introduction

Government has for many years enunciated its policy that the efficient implementation of a programme of capital spending can by itself stimulate growth and at the same time allow for the active participation of the private sector in the economy. Government shares the view that growth must be private sector led and the role of Government must be to create the enabling environment, physically, legally and otherwise for the private sector to grow and flourish. The tool used by Government to create this environment is the capital expenditure programme and it is for this reason that over the years, Government has embarked on an expanded capital programme. I will now proceed to outline the allocation of the 2007 capital budget.

b) Cricket World Cup 2007

Mr. Speaker, from March 11th to April 28th 2007, Grenada and the rest of the English Speaking Caribbean will host one of the biggest sporting extravaganzas in the Cricket World Cup 2007.

One year ago, when our economy was still in an early stage of recovery, many doubted our ability to stage this spectacular event. But once again, we have confounded the skeptics, and silenced the “doubting Thomases”.

Grenada has come in for high praise from ICC officials for its advanced state of preparedness to host CWC 2007. The National Stadium, which is now substantially structurally complete is rated as one of the most spectacular in the region, and maybe, in the cricketing world.

It stands as a monument to the strong desire of a people, as a vision of the country's future growth and development and of the commitment of our leaders to bring the best possible development to our country.

This Stadium does not only reveal the generosity of the Government of the People's Republic of China, but also it demonstrates through the Chinese workers, a work ethic that we as a nation and people must emulate. This positive work attitude, Mr. Speaker, notwithstanding the economic benefits to be derived from this project, is perhaps the greatest lesson that we as a people can learn from the construction of the National Stadium.

Undoubtedly, the stadium will have a long lasting impact on the economic development of the country. In preparation for the games, hotels have been built back better resulting in an increase in the number and quality of rooms; the home stay programme has not only increased the number of rooms, but has given rise to a multiplying impact of the sector on the economy through the creation of a new kind of tourism in Grenada, i.e. community and village tourism. In this regard, our agricultural production is to increase, our taxi operators, rentals, restaurants, vendors, craft producers all stand to receive direct benefits from the activity; our cultural performers will also benefit from this event. Obviously, Mr. Speaker employment will increase as businesses have an opportunity to establish new contacts for their products.

On the financial side Government stands to collect substantial revenue from the event. For example, in keeping with the Host Venue Agreement, all gate receipts belong to the host Government. In the case of Grenada, Mr. Speaker, our Stadium has a seating capacity of 16,000; the average price of a ticket is EC$195.75; and the games are to be played over a six day period; if we assume a 100 per cent attendance on each day, then Government can collect EC$18.8m from gate receipts alone. When we subtract EC$12.9M in expenditure incurred to date, there is a profit of EC$5.9m.

But that's not all Mr. Speaker. Through WICB, Grenada is to receive a share of the profit from the entire event to be used for the development of cricket in the islands.

With the international media coverage of the Games, Grenada will receive exposure to the rest of the world which under normal circumstances would have cost the Government millions of dollars.

Our people have become much more aware of security issues and are now better able to deal with mass crowd control, traffic management, and disaster emergency response. Moreover, we have seen a strengthening of our national pride and patriotism through the volunteer programme. 327 Grenadians have registered and willingly offered their services to their country without asking for anything in return. Mr. Speaker, one of the legacies of the 2007 event would be the establishment of a National Volunteer programme for future events ranging from sporting activities to national celebrations. We as a people will have the confidence in ourselves to show the world that we are capable of successfully organizing world class events.

I must inform the Nation that contrary to the views expressed by others, preparation for the hosting of the CWC games has to date cost the Government EC$12.9m broken down as follows: EC$6.5m preparation and secretarial support; EC$2.7m preparatory works; EC$3.3m rural sport facilities; EC$0.3m cultural activities; and EC$0.1m craft initiative. Expenditures related to security and anti-doping are covered by CARICOM. The cost of the Stadium, which is approximately US$40m, is a gift to the People of Grenada from the Government and People of the People's Republic of China.

Let me therefore on behalf of the Government and people of Grenada express our profound gratitude to the Government and people of the People's Republic of China for having constructed the Stadium and to say to them that we remain eternally grateful for this and that every effort will be made to protect and use the facility in the best interest of the people of this country.

c) Agriculture, Fisheries and Forestry

Presently, the agricultural sector contributes 5.9 per cent to the country's GDP, as compared to the 4.9 per cent in the previous year.

In 2006, the Ministry continued to intensify its effort to revitalize the sector in a more organized manner. Under the Agricultural Enterprise Development Programme, over EC$3m were approved as loans for distribution to 435 farmers involved in the rehabilitation of cocoa, nutmeg and banana fields. Farmers involved in livestock, poultry and cash crop production were also given special attention.

In addition to providing loan financing, the AEDP provided EC$300,000 in support of drainage; EC$433,000 for the purchase of fertilizer which were distributed to farmers; and EC$986,000 for purchasing irrigation equipment and supplies. Some 27 farmers were trained in irrigation system management and operations.

Also during 2006, the Ministry implemented a programme to strengthen the extension service. A total of 90 persons were trained and were subsequently retained to provide support to the existing extension staff.

A number of activities were undertaken through the Food Security programme, these included:
• 10 cattle distributed to farmers to improve the breeding stock on the island
• 2,500 lbs of corn and 5,000 lbs of ginger distributed to farmers
• Peas, sorrel and ochro seeds distributed to farmers

Through the Agricultural Recovery Programme over 100,000 banana plants and 50,000 plantain plants were distributed to farmers. Ten power tillers were purchased to enhance the Ministry's capacity in providing ploughing services to our farmers.

Mr. Speaker you would recall that after Ivan the GCNA had severed a number of workers employed with the Association. These workers remained without employment for months and had no source of income to attend to their families. Mr. Speaker, this Government, being concerned about the welfare of our people, and with its goodness of heart distributed EC$572,500 to these severed workers. In addition, Mr. Speaker you would recall that a few months ago, when workers of the Cocoa Association were left without pay for months, it was this Government again who intervened by providing EC$500,000 to these workers. Mr. Speaker, this is a Government that undoubtedly cares for the agricultural workers of this country and about the development of the agricultural sector.

In 2007 the Ministry will receive (14.3 per cent of the capital budget) or EC$32.3m, financed, mainly from external grants and from the NRL. The fundamental objective to be achieved with this allocation is the continued rehabilitation of the sector through the implementation of the Agricultural Enterprise Development Programme for which EC$8m have been allocated. In addition, efforts will be concentrated on strengthening the institutional capacity of the Ministry, and on enhanced marketing.

Mr. Speaker, in last year's budget presentation I indicated that approximately 34 farm roads, totaling 39 miles would be rehabilitated with loan funds secured from the Kuwait Fund for Arab Economic Cooperation and the OPEC fund. All preparatory works have been completed in anticipation of the early commencement of this Project. Government is now awaiting the “no objection” from the Kuwait Fund to proceed with tendering. We do apologize to our farmers for this delay, which is due to no fault of ours. We do look forward to a speedy implementation of this very important project early in the New Year.

In keeping with the suggestions expressed during the consultation on agriculture, the Ministries of Agriculture and Education are to work together to rehabilitate and reopen the Maribeau Farm School at an estimated cost of EC$3m. Also in keeping with the suggestions from the consultation on Agriculture EC$400,000 has been allocated for the elimination of the Black Sigatoka which is presently affecting our banana fields. In addition, under the Agricultural Marketing Improvement Programme, the Ministry will work closely with MNIB and the Food and Nutrition Council to promote the consumption of local production through the strengthening of the linkage with domestic supermarkets, hotels and restaurants. Efforts will also be made to increase the export of fresh fruits.

With World Bank funding, priority will also be given to the revitalization of the forestry sector through the restoration of key watersheds, the planting of 300,000 seedlings, and the rehabilitation of key forest recreation infrastructure.

In the area of fishing, emphasis will be on the coastal fisheries development project in Gouyave where just over EC$0.5m has been allocated. Government will continue with its material assistance program, and training of fishermen and fish centers that were not rehabilitated in 2006 will receive attention in 2007. With these projects in 2007 agriculture should increase its contribution to GDP to about 8 per cent.