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Facts | Dominica:
IDP Final Document
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The Government of Dominica has announed
that it has received EC$6.83 million dollars
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Germaine
Royer-White
ÇAKAFETE
Inc News!
 OSEAU,
March. 19----In a press release issued from the Government Information Service,
Wednesday, the Government’s public sector investment programme has been given a boost with the receipt of the second tranche of the Stabex 96-97, amounting to EC$6.83 million.
The release states that a number of projects will be executed or brought to completion by the ministries receiving the monies which is the Ministry of Health, $2,144,417.00, the Ministry of Education, $2,608,481.00 and the Ministry of Agriculture, $2,077,102.00.
“In order to qualify for draw-down of resources under Stabex 96-97 each benefiting ministry has had to prepare a programme plan”, the release stated, and pointed out that the plan had to be approved by the European Commission in Brussels.
The release of the second tranche of Stabex 96-97 follows the release of the first tranche in August last year, after the Dominica Parliament passed a budget aimed at stabilization and recovery of the local economy. The release said that $6.83 million of the second tranche will contribute to the overall recovery effort of the Coalition Government.
The release also added that the Ministry of Finance and Planning is currently in dialogue with the Head of Delegation of the European Commission in Barbados and the Eastern Caribbean on the matter of programming Stabex ’98, ’99 and 2000, amounting to EC$18.2 million. This dialogue the release stated will culminate in the preparation and signature of a Framework of Mutual Obligation (FMO), which will lay down commitments to be met by the Commission and by the Dominica Government respectively for
drawing-down and the use of the 18.2 million dollars.
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The official opposition in Dominica
believes that bad management is the island problem
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ÇAKAFETE
Inc News!
OSEAU,
March. 18----Former Finance Minister Julius Timothy is of the opinion that for Dominica to start moving out of its present financial difficulty, the government must find ways to bring new money into the economy.
The former Minister commenting Coalition Government handling of the Dominica economy and on the IMF/World Bank team visit to Dominica, said that no among of money placed in the hands of this present administration will turn the economy around be the Government cannot manage and that's Dominica's biggest problem at the moment.
Mr. Timothy pointing to some of the areas which needs to be tackled immediately, feels that the financial institutions here need to reduce interest rates, there must be economic activity and there must be growth, money must be placed in people's hands and let them spend because for the economy to turn around, some of the key pointers are need now.
The island was doomed from the inception when former Finance Minister Ambrose George, he said indicated in his maiden address Budget (2000-2001) that he knew nothing of Finance and would rely on the technocrats. He said that the situation was further compounded with the introduction of what he calls a barrel economy and the imposition of an increased Sales Tax to five (5%) percent, policies that had the effect of making less revenue available in the economy, he sighted.
Reflecting on the former Minister of Finance saying that he would rely on the technocrats to guide his decisions, Mr. Timothy seeking to explain the roll of the Technocrats in government said that they are responsible for executing policy set out by the elected officials but it is the minister of finance who is in charge of the country's finances.
In the former Finance Minister's opinion what later also added to the downturn in the Dominica's economy was the introduction of the Stabilization Levy, which has proven counterproductive and has led to disaster.
Mr. Timothy speak directly on his meeting with the IMF/World bank team, said that he informed the officials that the stabilization levy was a fundamental error, a point he said that the Team agreed with, but noted that the levy was the only measure the Coalition Government would acceded to.
"While it is one thing for the economy to be in bad shape, but when compounded with the absence of hope, depression sets in" said Opposition Leader Edison James, and pointed to the fact that the Coalition Government must raise questions in the peoples mind about the methodology used by the Pierre Charles administration in what he calls a massive deception campaign.
Mr. James feels that rescuing Dominica from the current economic disaster it finds it self in presents several challenges, even in the face of Government's stabilization and adjustment programme, and cites the 2002 Independence Day speech, and the Labour Party's Delegates Conference and also at the recent Inter-sessional Heads Conference in
Trinidad and Tobago, when misinformation was actively practiced by the Coalition Government, added more distrust in the people thinking toward the government.
Therefore, Mr. James is questioning the level of trust that the people of Dominica currently have in the Labour led Coalition Government, to take the country out of its economic malaise and believes that this is the reason why the people are reluctant to support the government, therefore the present situation can be characterized as hopeless.
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Dominicans warned to prepare themselves
for further though economic messages
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By Germaine
Royer-White
ÇAKAFETE
Inc News!
OSEAU,
March. 14----The people of Dominica are called
upon to tighten their belts for harder times are ahead as the government must
implement harder measure than were announced in the 2002-2003 National Budget.
The Island’s Prime Minister who
last year in his Independence Day Message indicated to the Nation that the worst
was over and enforced that statement when he addressed his party’s Delegates
Conference in January, where he said that although overall revenue collection
has been low since the implementation of the levy, he was happy to report that
there was improvement in some areas of the economy. In his Independence message
he said “Fellow
Dominicans and well wishers, I wish to report to you today that the sacrifices
you have made over the past six months and which you continue to make are
already impacting positively on our financial situation and the perception of
this country as being serious about putting its economic house in order”.
But in
his first public address since his illness, the Prime Minister has told the
nation that the country needed to change its ways. It needed to bring a
halt to the widening of the fiscal gap, because otherwise it would face
financial and economic collapse.
The country needed to put its fiscal
house in order, the Prime Minister said if it was to attract the resources, the
project finances that were necessary to grow the economy. He said that it was
made clear in the 2002-2003 Budget that the country should brace itself for a
period of stabilization and adjustment that would take two to three years. There
was no way he said that a situation that was as bad as we know it was, could be
reversed in a period of just one year.
Prime Minister Pierre Charles in his
opening remarks at a press conference at the end of the IMF and
World Bank review mission said that perhaps this is the most important
mission that the IMF and the World Bank have ever undertaken to Dominica. He
pointed out that the IMF/World Bank team mission began here on March 6 and that
purpose of the team was to review the economic performance of the country since
the start of the Stabilization Programme last year. He reminded journalist that
the state of affairs of Dominica was in a very bad shape and that the economy
had gotten itself into a downward spiral that was manifested in massive arrears,
large and unsustainable foreign debt, and a tight liquidity situation that
compromised the country’s capacity for growth. Mr. Charles added the
country’s fiscal gap was widening and unsustainable, and if the situation were
allowed to continue, it would result in almost certain collapse of the economy
and the banking system. “Drastic
actions would be forced on the country” he said and pointed to the fact that
the measures taken by his administration were necessary to avoid actions such as
non-payment or massive layoffs in the public service, further contraction and
retrenchment in the private sector and default on domestic and foreign
indebtedness.
The situation of Dominica’s economy
addressed by Mr. Charles was further reinforced by one of the IMF team member
Jurge Guzman when he said that Dominica’s economic situation is entering into
a very serious period which if not addressed urgently, has the potential of
converting itself into a full blown economic crisis. “The main reason is there
is a serious cash constrain” he said with public finances which if
un-addressed in a comprehensive fashion threatens to undermine an instant
recovery that is taking place immediately from a low base given what has
happened over the last two years. The IMF financial expert, Jurge Guzman,
emphasized that none of the government benchmarks were met and that the
projected estimates turned out to be wrong.
“The government system on a whole
is not doing a very good job in managing its cash” Dominica’s Financial
Director Swinburne Lestrade said and pointing to the cause he said its because
the government has failed to stick to the limits on expenditure that were set
under the programme to manage government finances.
To see Dominica out of it
predicaments, Mr. Lestrade is suggesting that there is the need to reduce on the
cost of utilities, changing some of the laws, which are not conducive to operate
productive business environment in the country. He also pointed to charges at
the Dominica ports and wants to see the ports operate more efficient, therefore,
the Island’s Financial Director feels that the right business climate must be
put in place to turn things around for the Dominica economy.
For Prime Minister Pierre Charles,
the state of Dominica present economy is not something that was engineered
overnight. “It is a situation he said that had been in the making for many
years as the indebtedness to the National Commercial Bank and the Dominica
Social Security which did not begin with his Government, and also pointed to the
country’s indebtedness to the Trinidad and Tobago commercial banks which was
not negotiated by this Government. “Truth is that while in the first year or
so after assuming office, this Government may have been guilty of continuing the
ways of its predecessors, to its credit, it realized the dangers of a
continuation of such mismanagement, and had the courage of its conviction to
take hold of the situation” he said and this is how the stabilization
programme came about.
“As everyone is aware, our
stabilisation programme included engagement with the IMF and the World Bank, an
engagement which was formalized in a Stand-By agreement with the IMF, reflected
in the Government’s Letter of Intent to the Fund. The reason for this should
by now be clear to everyone. The country needed to change its ways. It needed to
bring a halt to the widening of the fiscal gap, because otherwise it would face
financial and economic collapse” the prime minister continued to state. He
said that his government needed to put its fiscal house in order, if it was to
attract the resources, the project finances that were necessary to grow the
economy.
Mr. Charles said, it should not be a surprise to anyone
that the IMF and the World bank Mission have found that Dominica is not in
compliance; and questions may be raised about the extent to which Dominicans
understand the economic realities facing our country and pointed to the fact
that perhaps even more drastic action may have to be contemplated to bring the
country back on track, so that the regional and international communities can
continue to support the efforts of his government to stabilize the economy.
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Coalition Government tells PSU its will
not pay striking public officers
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By Germaine
Royer-White
ÇAKAFETE
Inc News!
OSEAU,
March. 12----In a letter to the Public Service Union, dated March 10,
2003, Prime Minister Pierre Charles told the PSU that the government would not
withdraw its proposal to reduce the work force of the civil service and also pay
striking public officers. However, the union met with its membership Tuesday to
discuss statements made by government officials in respect to their seven days
pay while being out on strike and the latest letter from the prime minister.
The government is saying that the decision not to pay the
striking public officers is a matter, which is governed by the civil regulation
and the law of the land, as well as a major principle of common
law, which has being re-enforce by a recent ruling by the Privy Council, in a matter of the law officers of Jamaica, and
the government of that country.
However, General Secretary of the PSU told reporters
Tuesday that the union has resented government’s decision not to pay and has
written to the government in this respect. The General Secretary is also stating
that the government letter is not in keeping with the signed agreement between
his executive, the Government Task Force and the three mediators.
In a government statement to the press following the joint
meeting between representative of the three parties, part of it read “…The
union made further representation on this matter and submitted the following
options that "There shall be no detriment or penalty to the public officers
as a result of the present action" but (b) "That a confidential
agreement be entered into which contains this clause"; or "That one
single document be signed which states clearly and unambiguously that there
shall be absolutely no financial measures, punitive action or other measures to
Public Officers as a result of the present action." Government later
conceded, in a spirit of compromise, to inclusion of the statement.
"Government will not take any action against Public Officers engaged in the
protest action that is not in accordance with the law or applicable
regulations." I need to
emphasize here that contrary to recent disclosure of the General Secretary of
the union, the agreed position was that the Task Force would examine
Government’s proposal. The
measures proposed by Government, as well as recommendations from all Public
Sector Unions and other interest groups or individuals will be presented to the
National Working Group for consideration.”
However, the Prime Minister in his letter to the PSU states
“the agreement to which the union, government and mediators are signatories
does not reflect in any way, a recall, suspension or withdrawal of
government’s proposal”, and made reference to the meeting held in February
of this year where the Government proposed a 6 percent deferred payment for the
months of April, May and June of public officers which would be refunded within
18 months beginning with the lowest paid government employees and this the union
rejected. Mr. Charles however is suggesting that the proposals presented to the
PSU are not negotiations but measures to arrive at a feasible approach for
containing government public sector wage bill. The prime minister’s statement
seems to differ from Honorable Charles Savarin while Acting as Prime Minister
when he said that the proposals were just proposals and nothing else.
The Government in its Letter of Intent to the IMF outlined
measures, which the government is to put in place to meet the agreement signed
with the IMF. In the government’s letter of intent, the “fiscal program
envisages an increase in tax revenue from 21½ percent of GDP in 2001/02 to 25
percent of GDP in FY 2002/03”. This increase the letter outlined will result
from revenue measures announced in the 2002/03 budget, including among others a
stabilization levy of 4 percent on all payroll income, broadening the base for
transactions-based taxes, curtailment of tax concessions and streamlining fiscal
incentives, imposing the increased rate of sales tax on petroleum products and
increasing the price of fuels at the pump consistent with generating annual
revenues of 3 percent of GDP”.
The Prime Minister in his letter to the PSU states that the
issue of discipline or punitive action on the part of his government as
complained by the PSU clearly
understands that there is a well-established producer for instituting
disciplinary action against public officers. He however agreed to a meeting with
the PSU on Thursday March 13.
Presently on the Island is an IMF team reviewing the
government’s economics stabilization programme.
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Several hundreds of Dominicans could be
employed in an oil refinery soon
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By Germaine
Royer-White
ÇAKAFETE
Inc News!
OSEAU,
March. 07----Dominicans will know in about sixty days if
the country will have a major oil refinery setup here once the government can
find a suitable location to have the refinery built. That’s the word coming
from Acting Prime Minister Charles Savarin.
 Speaking at a press conference Friday, Mr.
Savarin said
that his Government had received a proposal from Global Resources Corporation of
the United States of American, for the establishment of the major oil refinery,
and in principal has entered into an agreement with the United States based
company.
envisaged
that the oil refinery will employ a significant number of persons” according
to Mr. Savarin, during the construction
phase he said which is targeted to
extend over a three-year period and would employ several hundred persons on a
permanent basis once the refinery is in operation.
He
further said that the oil refinery project is designed and intended to operate
as an Eco-friendly project patterned on an affiliated oil refinery in Germany,
where ecological considerations are paramount. Mr. Savarin added that the
suitable location to setup the refinery is a request from Global Resources
Corporation and he is suggesting that its on this basis it will be determine if
the refinery will be setup in Dominica. “The project represents one of a
series of major capital-intensive projects being given consideration by
Government as part of its programme for economic recovery” the acting prime
minister told journalists.
The
announcement by Mr. Savarin, that there is the possibility that the oil refinery
could be setup here on the Island, got a quick response from conservationist Atherton Martin. Speaking to Kairi FM News, Friday, March 07, 2003, the conservationist
is suggesting that such a project on Dominica would “only hurt” Dominica’s
image as the ideal nature destination.
“It
would seem really important” he said that the stakeholders in the tourism
sector who depend critically on Dominica’s image as the nature island” and
its pertain-ness of its environment, information of an refinery in a small
island can only raise initially questions and doubt in the mind of people in the
industry. Mr. Martin is also of the opinion that this announcement of a possible
oil refinery on Dominica can impact negatively on arrivals, occupancy and
businesses in the tourism industry whose income sometimes reach over a hundred
million dollars a year for Dominica and is dependent upon the image of the
island being preserve and sustain.
Martin
feels that even if Dominica is in a desperate economic situation good common
sense must prevail before “we” could even enter into an agreement in
principle which means there must be transparency in the information which has
been put before the government, and that it must be immediately put before a
cross section of stakeholder groups in the society so that the best available
thinking in the country can be brought to bear on this and “we avoid other
fiascos” in the country.
Mr. Savarin at the press conference said
Government has only entered into an agreement in principal with the Global
Resources Corporation, and under the agreement, detailed proposals are to be
presented within 60 days if the suitable location can be identified for the
construction of the oil refinery here.
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Minerve
Lewis
Miss Dominica 2003 |
Observer
Calypso King 2003
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Controversy hit 2003 Carnival biggest
shows
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By Germaine
Royer-White
ÇAKAFETE
Inc News!
OSEAU,
March. 05---Carnival 2003 dubbed
“Mas Domnik” came to an end Wednesday night and from most reports there were
no major incidents. However, the season did not end without controversy
especially with the two biggest shows, the Carnival Queen Show and the Calypso
Monarch Show with one judge of the Calypso Monarch Show publicly expressing his
dissatisfaction with the final results and the sponsor of one of Carnival Queen
contestants threatening possible court action sighting what he refers to as
unfair treatment the girl that his company sponsored.
Miss Minerve Lewis from Good
Hope won the Carnival Queen Show, and sponsored by the AID Bank, first runner-up Lynthea
Augustine from Vieille Case and third place went to Dana Shillingford of Kings
Hill, and the Calypso Monarch went to last year’s Calypso King De Observer.
Lennox Linton said that he
respectfully dissented himself with the decision on the winner during the post
competition deliberations and felt that he now had go public. He feels that the
facts are the facts and in the interest of the public under standing, the facts
must be known.
Lennox said that while the results
represent the output of a process designed by the Dominica Calypso Association
to guide the determination of a bias free final ranking, the system failed the
association Saturday night and that it is “crystal clear evidence that the
system failed to guard effectively against bias” and for that a fair result
was not deliver of the collective opinion of the majority of judges as to who
actually won the completion.
Linton however said that his
dissented opinion is not intended as a criticism of the Observer who got the
Calypso Crown because he came sincerely to defend his Crown and did not judge
himself, and therefore must not be blamed for judging errors and process
deficiencies. “44 percent of four of the judges who judged the show” and
watch the show on Saturday night” he said had De Dice as the King with only
one judge having Observer as the King and that two judges had the Hunter as the
King. He therefore said, with Dice coming behind Observer and Hunter, something
is strange because what the process is saying that as many as four judges out of
nine which is the high single block on the judging panel counted for nothing.
Lennox feels that for this there must be a review of the system.
And Nagico Insurances General
Manager, Vibert Williams said he is not satisfied that the girl that his company
sponsored was not given the Crown that she won because of here size and is
calling on the Dominica Festival Commission to release the score sheet. “This
is an injustice to rub Michelle Paul” he said of the Miss Dominica Carnival
Queen Crown and feels that in terms of financial support from sponsorship it
might be dismal 2004 pageant because of what has happen this year.
Paul won Best Talent and Best
Intelligence and did not get a place in the top three. Williams is of the
opinion that if Paul won these two rounds and still this is not good enough to
represent Dominica than it is frightening. Williams also feels that it was sad
that a senior member of the Carnival Committee made derogative remarks to Paul
just before making her swimsuit wear appearance.
“Parents must now ask
themselves if they want their daughters to face the devastation and humiliation
that seems to have characterize the queen show” William said and that sponsors
must now reconsider if they wan to send money down the drain. “We must ensure
that this tragedy must not happen again,” he said and suggested that the
judging criteria must be looked reviewed and is also suggesting there is the
need to require more competent and knowledgeable judges.
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