CATEGORY:BUDGET SPEECH
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Presented in Parliament by Grenada's Finance Minister, Hon. Anthony Boatswain.



11. COST OF LIVING, POVERTY ALLEVIATION AND SAFETY NET MEASURES

Mr. Speaker this was another measure outlined by Government in the reform programme. Indeed it is the third aspect of the theme of this year's budget.

a) Cost of Living

Government has recognized and is concerned that the incidence of high prices has been falling disproportionately on the poor and vulnerable members of the society - the aged, sick, the physically challenged and school children. In fact, Mr. Speaker, the question of high prices has been one of the major issues arising from the national consultation on the budget.

Mr. Speaker, it must first be stated that Government is not in a position to regulate all prices. It can only exercise some control on the prices of items that are listed on the Price Controlled List of items. For this purpose the Ministry of Finance presently employs 12 price-control officers (including two in Carriacou), whose job is to monitor the prices of these items in supermarkets and shops, and to report on variances that are not in keeping with the agreed price. We would also like to urge the business community to keep the price mark-up on non-price controlled items within reasonable margins.

b) Poverty Alleviation and Safety Nets

Mr. Speaker, this Government has constantly demonstrated that it genuinely cares about the poor and disadvantaged in our society. In fact, the alleviation of poverty remains at the top of Government's Social and Economic Agenda, as it pursues the primary objective of achieving the Millennium Development Goals by 2015. In 2006, Government spent EC$7.8m in providing assistance to the poor and disadvantaged.

In recent times, the poor and other persons on fixed income have been further marginalized as a result of rising prices. Recognizing the impact of higher prices on the poor and disadvantaged, Government has decided to increase its budgetary allocation to EC$11.4m for poverty alleviation and implementation of safety net measures.

Specifically, Government has decided on the following:
(1) the number of persons receiving public assistance will be increased from 4,500 to 5,500;

(2) the number of persons entitled to “free water” under the Water for the Poor programme will be increased;

(3) Subventions to day care centers and homes for the Aged have been increased;

(4) Government will continue to assist needy students with books and uniforms, and with the payment of tuition and examination fees;

(5) A disaster Fund for fire victims has been established;

(6) Government will continue to provide assistance to persons in crisis and for the burial of the poor;

(7) The programme of assistance to underprivileged and necessitous persons will be increased;

(8) A Senior Citizen Outreach programme organized by the Ministry of Social Development has been implemented;

(9) Government will continue to provide assistance to needy persons requiring medical attention (such as CT Scan, Dialysis, Chemo, radiotherapy, etc) that cannot be provided locally; and

(10) The programme of providing free drugs to needy persons for certain categories of illness will be maintained.


Mr. Speaker, Government also recognizes that with the recent increase in fuel prices, our traveling public and in particular, our school children and elderly citizens have been placed at a disadvantage. In order to alleviate the financial burden on parents of needy children who have to travel long distances to school, Government has decided on the following:

- Effective from the first quarter of 2007 all students attending TAMCC from the outer parishes will be allowed to travel to and from school free of cost.
- A similar programme will be extended to all students from the outer parishes attending secondary schools in St. George’s, once the TAMCC programme is successfully implemented.

- Senior citizens in receipt of Public Assistance traveling from the outer parishes to St. George's will be considered for free travel as well.

The Ministry of Transport in collaboration with the Ministry of Finance and the Grenada Port Authority are working out the modalities for an early implementation of these initiatives.

Mr. Speaker, Government also recognizes that our bus owners and drivers have been making a significant contribution in transporting our workers and children to and from work and school respectively.

Cognizant of the relatively high cost of purchasing a bus, and maintaining that bus on the road, Government has decided on the following:

- Effective as of the first quarter of 2007 all new buses purchased and designated for public transport will be entitled to a 25 per cent reduction of the GCT.

- Government will review its previous recommendation of granting a reduction on the duties and taxes of tyres for buses with a view to implementing the recommendation, once appropriate control mechanisms are in place.

Mr. Speaker, Government is prepared to give similar consideration to our taxi owners and drivers, once the appropriate structure is in place, as discussed with our Prime Minister.

Mr. Speaker, it is hoped that these measures will assist in stabilizing transport cost, thus providing much needed relief to our traveling public.

Mr. Speaker, these are the actions of a Government that cares and is prepared to work in the best interest of our Nation.


12. ACKNOWLEDGEMENTS

Mr. Speaker, on behalf of the Government and People of this Nation, I would like to thank the following Governments and Institutions for providing financial, economic and technical assistance during the past year:

The Government of the People's Republic of China
The Government of the Republic of Trinidad & Tobago
The Government of the Republic of Cuba
The Government the Republic of Venezuela
The European Union
The Government of Japan
The Government of the United Kingdom and the Department for International Development
The Government of Canada and the Canadian International Development Agency
The Government of France
The Government of the United States of America and the United States Agency for International Development
The Government of the Republic of Korea
The Government of Belgium
The Caribbean Development Bank
The Kuwaiti Fund for Arab Economic Development
The United Nations Development Programme
The United Nations Children's Fund (UNICEF)
The United Nations Environmental Programme (UNEP)
The Food and Agriculture Organisation (FAO) of the United Nations
The Federal Republic of Germany
The Organisation of American States (OAS)
The Inter-American Institute for Co-operation on Agriculture
The World Bank Group
The International Monetary Fund
The Commonwealth Secretariat and Commonwealth Fund for Technical Cooperation (CFTC)
The Eastern Caribbean Central Bank (ECCB)
The CARICOM Secretariat
The Caribbean Export Development Agency
The Organisation of Eastern Caribbean States (OECS)
The Caribbean Regional Technical Assistance Centre (CARTAC)

Mr. Speaker, I also take this opportunity to express my deepest appreciation to the Permanent Secretary and staff of the Ministry of Finance including the Government Printery, and to the public workers in other Ministries and Departments who have contributed to the preparation and delivery of this Budget.

Mr. Speaker, I also thank the Acting Clerk of Parliament and staff for their assistance in the preparations for today's Presentation.

Mr. Speaker, I also extend my gratitude to the Multi-Partite Consultative Committee, and other community groups and organisations with whom we consulted during the past year. Your contributions have enriched today's Presentation.

Sincere thanks to the thousands of Grenadians and friends and supporters of Grenada living abroad, and to all of you who have provided constructive criticisms of our policies and programmes. We welcome your criticisms as they serve as a gauge through which we can measure the correctness of our policies and the extent to which we are satisfying the needs of the population.

Mr. Speaker, my sincere thanks and appreciation are extended to my constituents of St. Patrick's West, and the entire population of Grenada, Carriacou and Petit Martinique. In you I found mental strength, in you I found the motivation, drive and serenity that this work requires. I want to sincerely say to you that support has kept me strong.