PREMIER: We met a running deficit of $51M, $19.8M in unpaid bills for capital projects
Premier Dr. the Honourable D. Orlando Smith - Wednesday, December 7th, 2011 at 2:08 PM
Dr. the Honourable D. Orlando Smith, OBE
Tuesday, 6th December, 2011 6:35 p.m. - My fellow citizens of the Virgin Islands: As Minister of Finance I promised to inform you at the earliest possible date of the current status of this Territory’s fiscal position.
Today, I crave your indulgence as I now provide you with this information. In the New Year we will complete the preparation of the 2012 budget and I will deliver our first budget address which will be shaped by these circumstances. At that time after consultation with my colleagues and with HMG as necessary, I will present our strategies, plans and programs detailing how we intend to proceed with fixing our economy.
On 7th November 2011, you entrusted this Government with the responsibility to lead this country and to be in your service for the next four years. This is a distinct honor and trust and we do not underestimate the gravity of this responsibility I therefore reiterate my solemn promise to do all in our power to rebuild an economy that is vibrant, where fairness and justice prevail, and where the future of our children promises to be better than it is today.
We have many challenges ahead because the reality is that my Government has found hardly any financial resources and a high stack of financial commitments and bills waiting to be paid. Recognising that Government is a ‘trust’ and an institution with obligations to its citizens; in the time honored traditions of this Territory, as Minister of Finance and Premier I have a responsibility to honor the debts legally incurred by the previous Administration.
My Government has started and will continue to press ahead with an independent and in-depth review of the current fiscal position of the Territory. I will report these findings to you at a later date. What I can tell you at this stage is that thus far, we have carried out an initial review of the fiscal status of the Government of the Virgin Islands. I have reviewed the commitments against the public purse in addition to assessing our liquidity levels, better referred to as the cash we have on hand. My fellow Virgin Islanders, the situation is grim, the financial state of the Territory, to put it bluntly, is not good. Fellow citizens it is far worse than we anticipated.
The grim reality is that on assumption of office we met a running deficit of some fifty one million dollars ($51 million) that had been incurred by the previous administration despite their full knowledge that revenue collections were down during the same period. Of this running deficit, our findings are that there are unpaid bills for capital projects to the tune of some 19.8 million dollars. As we peeled away the layers on this commitment we have to date identified some 14.8 million dollars in individual contracts signed, a large portion of which were petty contracts signed by my predecessor in the waning hours of the last administration.
Coupled with this, are numerous project overruns and variation orders that made a mockery of budgetary allocations, compromised the execution of other projects and severely weakened the fiscal position of the Government of the Virgin Islands and by extension, the prospects for the immediate future for you the people of these islands. Cash balances as of the 4th November 2011 were slightly over forty million dollars ($40 million) but when taken in the context of the running deficit of fifty one million dollars ($51 million) this presents a picture that is worthy of serious concern.
Current projections by the Ministry of Finance indicate based on the spending patterns thus far for the year that total revenue will be in the region of two hundred sixty eight million dollars ($268 million). This is a shortfall of 18 million dollars compared to what was budgeted and approved by the House of Assembly for the 2011 fiscal year. Recurrent, that is operational expenditure, is anticipated to be in the region of two hundred sixty four million dollars ($264 million) with capital expenditure at some forty six million dollars ($46 million).
These figures represent a three percent increase over last year’s recurrent expenditure and a 50percent increase on last year’s capital expenditure. This compromising fiscal position has resulted in the Virgin Islands breaching the liquidity requirements of the borrowing guidelines agreement signed between Her Majesty’s Government and the Government of the Virgin Islands in 2005, and thus preventing any additional debt or in this case, borrowing, from being placed on the books of Central Government without the express permission of the Foreign and Commonwealth Office (FCO).
Ladies and Gentlemen, it is important to note that according to the Auditor General’s report 2007, when my Government left office in 2007, we left healthy cash balances of $82 Million and that we were compliant with all the provisions of the borrowing guidelines. Indeed this same report showed that there was a surplus of close to four hundred thousand dollars (407,535) in that year.
The current breach of the borrowing guidelines potentially has very serious implications for our Territory as it suggests that we are on a path of un-sustainability. Further, as a result of our current state of play with respect to this, the loan that was approved by the Caribbean Development Bank (CDB) in May of this year for fixing our roads cannot be finalized without approval from HMG. As of today we do not have that permission. But I am confident that my Government’s commitment to prudent financial management as we go forward will help us to address the concerns of the Foreign and Commonwealth Office and secure this approval.
My Government will work tirelessly to ensure that our Virgin Islands, once again, will be brought to the place where responsible and prudent fiscal management and sound economic planning will be the cornerstones of the Territory. We will also work tirelessly to ensure that we are reinstated to our previous position of liquidity which would allow us to fulfill the promises we have made to our children and to the people of the Virgin Islands. We have already begun that journey. We will continue it over the next four years and trust that our stewardship will allow you to use us as your custodians well into the future. However, I must be honest and forthright and emphasize again that it will not be easy.
Coincidentally even though we have had an average economic growth rate of some six percent, before 2009, with the arrival of the global recession we experienced negative economic growth into the double digits (around 11 percent). Government’s revenue however was surprisingly resilient with revenue decreasing by some four percent in 2009 from the previous year 2008. Despite the contraction in the economy and the subsequent decrease in revenue realised by the Government of the Virgin Islands, we experienced an average increase of some ten percent (10 percent) in operating expenditure, with wages, salaries, and the cost of goods and services to the public accounting for some eighty percent (80 percent) of this expenditure. This is an untenable situation. In simple words this cannot continue.
Ladies and gentlemen, we are all aware of the global recession and the effects that it has had on the Virgin Islands. We are also aware of a conscious decision made by the previous Government to bridge the recessionary period and the effects it would have had on the local economy, by beefing up its public infrastructure investment program. In the case of the former it is a fact of life with which we were all faced, and in the latter it was a policy stance that on the face of it sought to protect the people of the Virgin Islands.
While not criticizing the principle of temporarily bridging the gap during an economic downturn as a way of providing a reprieve for our citizens, I am very troubled by the manner in which the previous Government effected this policy. Public infrastructure investment cannot be defined by the personal favors that are granted to individuals at the expense of the taxpayer; the circumvention of checks and balances in the system created to promote transparency and value for money under the guise of expediency; nor does it involve pork barrel projects that are in effect conceived to promote the political life span of individual members in the House of Assembly. Instead, it means investing in the public infrastructure and directly in the productive segments of the economy such that it results in a higher quality of life for all of the citizens of the Territory and includes as well, a more pleasant experience for its visitors.
This kind of investment translates to, for example, good roads throughout the Territory, reliable water and sewerage systems, and well-maintained public buildings. Let us be clear ladies and gentlemen, the industries that sustain BVI are tourism and financial services. We should have ensured that those sectors were being managed in a way that allowed revenues to flow into the Territory rather than trying to create an economy out of the finite resources of the Treasury.
Indeed the primary failure was using the Treasury as if it were an independent printing press for money and ignoring the very industries that have put BVI on its feet. Based on our investigations thus far, overwhelming evidence suggests that we have not been providing for our citizens en masse, but instead have been channeling resources towards special interests and a very small segment of our community. This has resulted in the Virgin Islands facing as a significant matter of consideration, the escalation of expenditure and a growing debt burden with no appreciable increase in quality of life for the hard working citizens of the Territory.
I cannot therefore, in light of the evidence which we have unearthed, justify to any degree the choices that have resulted in the reckless endangerment of the future of the Virgin Islands and its people during the last administration. I will, as stated, bring you a full and comprehensive report once we have completed our investigations which should give a more detailed picture where my Government found itself when it assumed office on 9th November 2011.
Our two main industries suffered significantly in recent years with tourist arrivals falling consistently each year from 948,425 in 2007 to 842,497 in 2010. Company incorporations fell from 77,033 in 2007 to 47,477 in 2009 and then began to improve, coming in at 59,624 in 2010. The figures which I have just quoted to you illustrate quite clearly that either through neglect, insufficient work or investment on our part or overwhelming competition, we have been losing ground in the two main industries of this Territory.
The two industries I must add that are responsible for the Virgin islands having one of the highest per capita earnings in the Caribbean. This slide must be reversed, or other avenues successfully pursued if we are to be reasonably assured of a bright future for the Virgin Islands. This question is being examined thoroughly by my Government; I expect to respond to it in the budget address of 2012 as well. The thoughts and suggestions of every citizen are welcomed in wrestling with this all important question.
Ladies and gentlemen, I have just provided a snapshot of the current state of the central Government’s fiscal situation as I met it, and I am certain you will all agree that it is one which will create significant challenges for us in the coming years. Sacrifices will have to be made by all of us as we cut back on expenditure and seek to grow our revenues and expand our revenue base. We expect everyone to join us, in the public and private sector to strive more than ever to be efficient, productive and resourceful as we work to rebuild our economy.
Let me be clear: it is important that all of us – the Government, the people and HMG – are all on the same page as our primary goal in the short term must be to control spending and grow our economy. I am immediately putting in place initiatives to get the economy going again, to get our tourism moving, our people fully employed and engaged with me and your other elected servants. I assure you that the mess we inherited will be cleared up. This too will pass with hard work and an eye on the future.
Perhaps the greatest hope is to get small businesses going, our small contractors working and more tourists coming and spending – confident that tourism will bounce back with our hard focused efforts. In this regard, all hands must be on deck and on a mission to restore the BVI to its days of having not only a healthy economic surplus but full employment for our people. I therefore ask each of you to be patient in these trying times as we seek to bring our Territory back from the brink to an even keel, and restore it back to its rightful place regionally and globally.
Thank you all for listening. God bless you all, and may he continue to bless these Virgin Islands.
This article was posted in its entirety as received by bvinews.com. This media house does not correct any spelling or grammatical error within press releases and commentaries. The views expressed therein are not necessarily those of bvinews.com, its sponsors or advertisers.
97 Comments
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I was told a long time ago that money do finish.And the more we ran after it, the more it take wings and fly. and it do not go down! it goes up so we hv to ask God to send it down or we might not have any at all.
My people are destroyed for lack of knowledge, because you have rejected knowledge, I have rejected you and your children says the LORD. If you all need understanding then read the comments written by “@The Truth”. What you all are buying into is the divide and rule scheme. No not be fooled and mislead like sheep having no master. Man has been a liar ever since sin came into the picture. Watch out for the deceiver is rising and his children are beginning to rule. Hint, they are all in politics. Have you ever really seen a politician prayed to God consistently before the nation and the people? Does that man believe in your God? Did you ever ask him? Be ye not deceived people. Israel asked for a king in 1st Samuel 8 and rejected GOD, chose Saul, and from there it was down hill. These Politicians are no Moses and will never lead any of you to the promise land. But I can bet you life will be more of bondage than anything.
You forgot to take your medication this morning???
What is your point?
What is your point? LOL
Alred Frett? Is that you? LMAO!!!
AC has the courage to use his own name; not afraid to say and defend his philosophy.
Alread Frett? Is that you? LMAO!!
If you all don’t get what is written then it is not for you to understand it but be a victim to it. If one reads and cannot comprehend, who can make them understand? Many of you are reading this article and cannot even see the numbers and what they represent. That is sad and it sings to the lack of knowledge tune. This is the reasons any government can and will deceive the people. Again who is there to make a blind man see?
Cut expenses .. its that simple, there will be political fall out but someone has to do it. VIP or NDP. If not I imagine the Crown will do it for us ..
Blessings to all
Revenue $268m expenses $264m means no money for capital expenditure or to pay the $34.6m owed. Foreign investments an answer, ie Disney loan for the cruise ship dock. Brainstorming 50 year lease for greenhouses, can the hospital be leased? let Hung build hotel/maintain Beef Island….. Renegotiating rents & salary perks also has to happen.
Woman lie, man lie, but numbers don’t, I can’t understand why everyone making the Dr. out to be the bad one in this thing, would we have preferred he had come out and said that things are great knowing that they’re not or if he had said nothing at all like how there was no finacial report for the past years, this thing is more than politics and party right now,it is what it is,no need for pointing fingers at anyone there is a job to do in trying and getting this country back to where it once was. So lets atop all the critizing and so on and lets work together for the better-ment for our country,if not for us for our children’s future.
Well perhaps you never head that there are ” lies, dmaned lies, and statistics”
Still, you are right that finger pointing will not solve the problems.
Now that the good doctor has told us what we expected to hear I am anxious to see the 2012 budget estimates and plans to improve the economy.
Indeed this same report showed that there was a surplus of close to four hundred thousand dollars (407,535) in that year.
OK doc is 400,000 a healthy reserve for a country? kiss my teeth lol. My company has more than that in reserve. Dont come with that
Is that so? We truly hope that you have paid your fair of taxes to the Treasury in building up your company revenue.
It is sad we have yet to hear anything from the Opposition leader. thats because he is ill and not able. Yet he wants to stick to power.
i’m convinced that dr smith dont know how governments function during a recession
It is a fact that most Politicians have very little financial understanding. most doctors, teachers, and most of the decipline studied by these politicians do not include any financial training. Remember that this system of government is a popularity contest, not a system of getting the best qualified minds in positions to the benefit of the people. This should not be taken as a criticism of the current or past government, jsut stating the facts. Also be careful because these guys can manipulate statistics to reflect what they want to report to the people, it does not have to be the truth, and this is what we need the truth all the time. COME ON PEOPLE LETS MAKE THIS TERRITORY A PLACE WHERE ALL CAN LIVE IN COMFORT AND MOST OF AL PEACE.
Not most, some
The NDP is setting up basis for a nice excuse not to perform and make good on its election promises. In 4 years all will be achieved are more pretty flowers in road town, paved sidewalks, more green spaces and clean surroundings while people starve and crime soars. Remember i said so
Situation| i hope that you are not holding a job in Tortola, where you have to talk to anyone you need to be hidden, beacause you sound like a real jack$$$ why dont you go and sit with Dr Smith and see what the problems are on paper for yourself.Get serious I dont need to be in the BVI to see there is a big problem in my country Ray Charles coult see it.
Thats why I would have leave the VIP in there to clean up the mess and not take on the stress with this hard global financial matter. But you know it’s power some people like and want so take it and hope you all do your jobs and don’t coming with lies on the radio to the people cause you all have already started.
exactly my thoughts. NDP thought there was a bed of roses waiting for them
To Liberal, leave VIP in to do more damage, you honestly think they would have ease their spending habits with Distric 1 and 3 respresentatives doing what they wanted with the people’s money. Are they educated people or people just filled with hot air. Think for a second.. we are in a recession, it is not the right time to be spending just because we have money to throw away… prime example (stop light placed by a natural stop light”round a bout”, and the great wall”).
Yes! Can it possible.. get any worse than it already has been. People starving, they can’t afford to buy food to put in their homes even if they work 2 jobs.. and what was VIP doing.. breaking the back of the regular joe’s.
is doc a politician? how he expect to find a surplus in the middle of a recession?
you sound like a blooming fool. there are countries doing well in the recession. a recession is no excuse for not having a surplus.
Government is not a for profit organization…a deficit is not a bad thing it is in fact better than a surplus. There is no need for a government to have a surplus.
Name some quick, quick
Now it’s time for the VIP to tell us what they left in the kitty . I’ll like to hear what the man from the third and the one for the nine have to say.
They cant say a word. Ralph is on the brink of collapse and Fraser is as arrogant as ever. happy riddance
Tooooo late for that now. When we begged them to reveal what they found in 2007, The VIP leader in his wisdom decided that no matter what these are still our people and after everything that was going on between T&C and the mother country he was not going to give them ammunition to use aganist us. Of course the spin is in high gear and after telling the people of the BVI there was no recession here, you do need an argument to explain why you won’t be able to fix all that ails us toute suite.
ONE PEOPLE, ONE COUNTRY BVI!
We need to hear the “other side of the story now”. There are three sides to a story.
Money only have one side: the INside. If you got no money INside your wallet, that is the story. Looks like VIP spend all the money like drunken man on pay day. 14 million at last minute? Smells like bad fish to me.
A commission of inquiry should be set up.
Yes, a commission of inquiry! Something for our gov’t to spend millions on in the midst of a GLOBAL recession to deepen the deficit! What a great idea!
Yes let’s spend more stupid money to set up a commission of inquiry. In the midst of GLOBAL recession yet.
SMH
Elections here starting to resemble Congo.
The question is how did we get in this allegedly dire financial position. If it were due to mismanagement or incompetence, then no scarce dollars should be waste on a commission of inquiry. Additionally, if a commission of inquiry is commissioned just to make the other side look bad, then no scarce dollars should be wasted either.
I know it is tempting that when it appears that a political opponent is on the mat the conventional wisdom to keep him there. Governing is about the territory, not political score keeping.We need to focus then territory’s effort in righting the ship. There is a difference bad form and breaking the law.
On the other hand if there is evidence of malfeasance or corruption then some type of investigation might be warranted
When there are accounts and figures there is only one side of a story – the story the numbers tell. A thorough audit of the past 10 years can tell us who did what when. But of course that will cost a lot of money and will not change the fact that we are in a very, very, very deep hole. Instead of trying to assign blame, maybe we will better served by letting the sitting government get on with the job of trying to clean up the finances of the country.
Hmm poor ralphy, we all know this is just a bunch ah lies.
If the VIP had a more alert premier who had the energy, all this would not be happening
Yes if the premier health was better, the global recession could have been avoided.
Obviously.
Well doc should take some blame. They sat down for four years and watch the VIp self destruct and almost destroyed the country and said nothing until election. talk about deceit. Now they are in power and facing the music they wanna talk about working together lol laughable
dont be a moo moo…2 to one in the HOA is no voice, is poeple like u who were rolling arounf road towan in the pot holes, and chanting VIP all the way and your “smart” effort in wiping out an opposition who would have a say when the incumbents were giving themselves an additional £2000 for living in their own houses and you have a the nerve to talk…not to mention they would have a say to biwater, the traffic lights and the rundown rat infested green houses standing stagnant, dont even get me started on the purcel ghut that alsomost drowned the spanish people!
come on, man for once stand up and admit you were worng….a good opposition is always need to be certain things are done properly…I strongly advise the ruling party to initiate a system of fiscal responsibility and accountability by Ministers of government, enough is enough!
I couldn’t agree with you more, and these people were so gullible to them it is truly a shame.
Those VIP people must be hanging their heads in shame. Not Fraser though
HMM I had to shake my head reading this.
How could grown men with education sit for four years and make this happen?
What can they say smart a**
what education?
This is all a bit too much. Thank you Honourable Premier Smith, on behalf of the people of the Virgin Islands I am most grateful for you honesty to the people. Now let’s get to work and clean up this mess and revive this economy. If for no other reason do it for the next generation that does not deserve to inherit this mess. To the people of this beautiful Virgin Islands, let’s start the healing, please a country divided cannot foster.
Assuming the report is accurate(issues often have 3 or more sides), the BVI is in a challenging financial position. But it is a challenge that would have to be faced regardless who won the election: NDP, VIP. Though lamenting on how we got in this untenable position will makes some feel good politically, it will not solve the serious financial problem.
As such the NDP has to forge ahead and attack the problem head-on. Leadership skill and effectiveness are needed during calm period with abundant resources. Nonetheless, strong leadership is more in demand during rough periods/ with little resources like the BVI is currently in. This is the time for the Premier and NDP to show case their skills, ability and managerial talent.
It’s time for bold leadership, it is time for necessary but unpopular action, it is time for personal and national sacrifices, it is time for patience and understanding, it is time to roll up our sleeves and get to work, it time to right the financial ship.
It is time for a severe dose of austerity and belt tightening. For starters: (1) freeze all hiring,(2) freeze all non-essential services spending,(3) cancel all deferrable contracts, (4) suspend and review all capital projects, (5)expedite processing of accounts payable,(6) Review allocations, (7)streamline operations,(8) review tax or fees opportunities or (9) make structural adjusments.
Further, it’s a great opportunity to root out inefficiencies, to streamline programmes, policies and policies; to prioritize expenditures, to restructure government, to right size the public service, to change the constitution to address spending before an election, to plan the way forward.
Solving this financial issues is not only the responsibility of the NDP, it is in the interest of all citizens and residents to do so. The territory appeared to have ran ground financially. The stalled economy, coupled with deficit spending, may have contributed to financial ship running aground. But regardless of the cause, it will take all hands to float the financial ship.
There are lessons to be learnt from any grounding. This grounding is no exception; it should be investigated to finding the causes and implement action to avoid repeating the actions that caused the problems.
Good post and a good time for leadership by example. Elected pols could give up their $ 2,000/mo housing fancy car allowances.
Hell will freeze over before they willingly give up the $2000 per month, Who opposed or voted against it when it was brought to the HOA? For HOA members both NDP and VIP to give up this allowance, they will have to be shamed into it.
And even then I’m not sure they will. They will ask for sacrifices from you and me. But they will hold to their pay and allowances with a vicegrip-like choke hold. Greedy, double speaking, snake oil selling, power hungry, selfish, bas….ds all of them. Show some courage—-most of all show some exemplary leadership.
Boy elton we need people like you here.
UP is on island. Is E. Leonard Elton (UP) Jr? Just curious. Anyway, good post.
E.Leonard is a Edgar Leonard the brother of Bobby and the uncle of Elton Leonard
I am shocked you mean to tell me that renting buildings for $18,000 to $40,000 a month for certain government offices and services from certain people in hopes that they will as they put it “put the money back into the economy” does not work?? You mean to tell me that rather than government building a building for couple million and looking at the long term savings for government the method we used which rents buildings for rediculous sums did not result in a great economy all now..I am really shocked.
I still say lets continue doing the tried and tested BVI model of outsourcing work that could be down by public works and renting those inflated priced places to as they say “keep the money flowing” it has got to work sooner or later giving how the world economy has changed. I mean it’s not like the property owners are then buying most of their goods overseas and speading most of the proceeds overseas
And before any simpleton that does not know the meaning of the word “sarcasm” responds look it up..
Great post Leonard.
This is our wake up call. Time to make changes and do it fast. How many millions did Hadassah Ward and Neil Blyden waste on wendy williams and shopping trips to London?
Well said Doc. How many millions did Neil Blyden and Hadassah Ward waste on Windy Williams and shopping trips to London?
ndp trying to brainwash the people and turn them against vip…pure tricks
who ever you are you are a real fool
Your are right @school children. The sheeple just dont get it. This is the divide and rule tactic. They need the people in order to get them to adhere to their policies. This is politricks at the finest. I DONT VOTE, because when all the crap comes out, I reserve my right to say I did not vote for that. That is the reason no man should vote. When u vote you say to that man what ever you believe and say I agree with you. Problem is, not every policy is for you. God made everything, but not everything is for GOD.
What has been disclosed by the Premier is well known to most of us. What the Doc. must now do is to get a full accounting of the funds spent by the Ministry of Education including the $10 million which cannot be accounted for in that Ministry. And while you are at it, you need to carry out a ful investigation into the Sea Cows Bay project.
WOW Believeable, this was expected.It was
very noticable. And we wonder how the Tourist Board the way they are, Same Chief.
We need commissioner of inquiry, but FCO need to pay for it.
you wanted the government, you got it now….get on with the people’s work and stop bawling….just yesterday ndp give cline a hefty contract and mark there spending in excess of a hundred thousand on a parking lot that could’ve waited until a next time…take some pressure pills if you cant deal with it…51 mil is chump change to what we collect annually
I agree with you whole-heartedly, this is what they were campaigning about all along, and I cannot understand why he complaining, let us hear what you are going to do, and stop the bitching sounds like a woman and it will not solve anything.
Bear with me folks. My post is a bit long, but there is no short way to say it. I find the Premier’s address quite troubling, and assuming the current financial picture of the country is what it is as stated, then there is lots of work that lies ahead to restore the economy which will probably require some tough choices to be made along the way. Unfortunately, in the short term that may encompass cutting back on government expenditures, possibly reducing the size of government, or raising taxes. Nevertheless, I am confident with the current leadership that we can bounce back as a country.
I find most troubling several things mentioned in this address:
1. A running deficit of some $51 million was incurred by the previous administration despite allegedly their full knowledge that revenue collections were down during the same period.
2. Of this running deficit, a finding that there are unpaid bills for capital projects to the tune of some 19.8 million dollars.
3. 14.8 million dollars in individual contracts signed, a large portion of which were petty contracts signed by the previous government in the waning hours of the last administration,
4. Numerous project overruns and variation orders that allegedly made a mockery of budgetary allocations compromising the execution of other projects and severely weakening the fiscal position of the government, and
5. Breaching the liquidity requirements of the borrowing guidelines agreement signed between HMG & the Government of the Virgin Islands in 2005, which currently precludes further, borrowing without the express permission of the Foreign and Commonwealth Office (FCO).
All the above tell a tale of fiscal mismanagement, and indeed “reckless endangerment” of the future of the Virgin Islands. I am most troubled by that $14.8 million dollars in individual contracts signed in the” waning hours” of the previous administration. That should not have occurred, and this type of spending should be outlawed in the future, as it borders on election fraud by vote buying.
I have said on this forum several times before that our government (all of recent memory) simply borrows too much. Rather than grow and or diversify the economy and generate revenues, it appears that every time some capital project needed to be done, the government of the day was turning to one of the local banks or the Social Security Fund to pay the way. I said then, as I will say now, that is no way to run a government, and future borrowing should be tempered by necessity.
Unfortunately, despite I abhor this practice of borrowing, I still see the need for the loan that was approved by the Caribbean Development Bank (CDB) in May of this year for fixing our roads, and I would reluctantly encourage the current government to try to get final approval for it from HMG as the infrastructure of the country is in dire need of repair.
Meanwhile, I agree with the Premier that “public infrastructure investment cannot be defined by the personal favors that are granted to individuals at the expense of the taxpayer; the circumvention of checks and balances in the system created to promote transparency and value for money under the guise of expediency; nor does it involve pork barrel projects that are in effect conceived to promote the political life span of individual members in the House of Assembly.”
As per the fall off in revenues from the two main industries of tourism and the financial sector, I think some of this can be explained by the global recession which spared no one. With people being out of work, and having less disposable income, they simply travelled less, and the drop off in company incorporations can be explained by the new financial disclosure sharing agreements whereby it’s more difficult for companies from overseas to dodge and hide from their tax collectors with off-shore registrations. But as the global economy improves, the tourist numbers will increase, and while I don’t expect company registrations to go back to peak levels, they may increase over time.
Meanwhile, the Premier surmises the task at hand correctly in my view. The greatest hope IS to get small businesses going, small contractors working and more tourists coming and spending. That should be a short term goal. Long term, the economy has to be diversified and expanded as both major pillars are very venerable to external forces beyond our control.
On another note, we need to do a better job at collecting money owed to the government or its statutory bodies. For example, I read today that millions are owed to the Health Services Authority, and get this; they do not have a proper system in place to know who owes or who does not owe or how to contact those people. In this day and age that is appalling and quite frankly unacceptable. A private company cannot run that way and not go bankrupt, and neither can a government.
It is clear that there will need to be lots of belt tightening in the coming months and years, but I urge this government to make the completion of the Peebles Hospital Extension Project a priority. It’s a shame that this project has spanned multiple administrations and over 8 years and yet remains incomplete to date. I urge the politicians to stop playing politics with people’s lives in particular the poor who cannot afford to go overseas for treatment. And when I say complete I simply do not mean the exterior, but quality service once done. Health care providers need to be compensated with decent wages and work conditions so that the quality of care will be improved. There is not one patient or potential patient who uses or will use Peebles Hospital who gives a darn which political party started or finish the project. It’s our only major hospital. It’s time to get it done!
Finally, it would be helpful to get a response from the Leader of the Opposition on the Premiers address. I recognize that he was recently ill & hospitalized, but it would be helpful if someone from the opposition party give a response to the Premiers address simply to have a balanced view.
At any rate, the long and short is this: We are in a mess, but we are a resilient and strong people. I am confident that we will get back on our feet soon. The public should not expect miracles from this government. Instead we should all roll up our sleeves and get to work, and make shared sacrifices. May God continue to bless our beautiful country.
Grandstanding. Pure and simple.
@Short post. Would you like to add anything meaningful to the discussion? Specifically, what’s your take on the Premier’s adddress? Forgot about me. Waiting….
@ Ray. Refer to the post by The Truth, below. Says it all.
By the way, I know both these men well, nothing personal against either one. I have had my times of vex with one and vex with the other over different things, but they are both good men.
The world is immersed in a world-wide recession that started in the fall of 2008 and has not abated. Yes some countries have done better than others but no one is running a surplus at this time so let’s not tell fairy tales. So yes, belt-tightening will be needed, just like everywhere else at this time. Let’s not blame Ralph for the global recession.
Graft and favours are an old game, been going on the BVI and everywhere else since before Jesus’ time. It’s called ‘Politics.’
Now can we just get on with the business of getting through the current recession without ransoming our future and without selling our birthrights to ex-pats and leave off making our electoral process resemble that of Congo?
Thanks.
@Anonymous. I certainly did not blaime Uncle Ralf for the global recession. That would be silly. Indeed, my comment was even handed, as I did not attribute the drop off in the tourism & corporate registration to the past administration soley. I felt that had to do with other factors as I explained. Additionally, I suggested an opposition response because I am not one to swallow everything I read hook line and sinker.
As I stated the global economy spared no one. And you are right. I cannot think of one country that is running a surplus right now other than perhaps china who seems to be the worlds bank at the moment.
As for the Truth’s posts, I read it like I have read them all. I respect everyones opinion even if I disagree with them. I personally like when people like you comment on a post as oppose to hitting the like or dislike button. It allows me to understand ones point of view more clearly. It certainly is more meaningful to me when someone who disagrees with me clearly state why rather than hurling insults or hitting the dislike button. I find that more constructive.
Anyway, thanks for the reply.
You people are gullable. WOW! Don’t let the numbers fool you and forget the year of 2008. The beginning of the great depression. It is a known fact that the revenues will be down because of the world wide financial crisis. What many of you voters forget is this, the REVENUES(monies brought in)are still within their prospective amounts according to the numbers. But let me educate you all on “THE LITTLE LIES” that every known government both past and present does. They like to let you know how much money they are in the hole first. It is a psychological brainwashing thing. Now for the real analysis I will use a married couple scenario: Say I work and bring home $4000.00 net and my bills are $1500.00 and I say to my wife our total spending monies is $1600.00. My budget for the month will be $1600.00. Now say my wife comes and say “hunny I need to get $200.00 to buy some extra groceries per month”.So I say “Hunny you need to get a night job because we cannot afford and extra $200.00 a month because we will be over the budget. My wife not really understanding what I just said may say to me hunny you are right we will be over budget. The problem with this scenario is my wife is not noticing I have an extra $2500.00 a month and because I never actually told her what I make(my business), she never really asked. So I placed a tax burden(making my wife work for the extra money)while I have the $2500.00 she does not know about, either stashing or gambling or for whatever I want to do with it. Why? Because what my wife does not ask she does not need to know about! That is what governments have been doing to civilizations for 1000 of years. Whenever the budget falls short or they go over the budget, they always are quick to call out the numbers because when they raise taxes or they are getting ready to steal, they have to let you know so to you the voter it can be justified. There is no VIP or NDP. There is just politicians and with politricks there is no “JUSTICE’ there is “JUST US”..You all will soon see this government will be no different from the other one. They will finish the JOB(just over broke) that the previous one did not. Get ready to meet the new boss, YES! the same as the old one!
Shalom!
And by the way the calculations in the writing is deliberate just like the one in the article. I said $2500.00 when it should be $2400.00 because that is just what I want to place out there..As long as government can get us to fall for the lies we will never actually look at the numbers. However, the numbers never lie just politricksters!
Your name should actually read “THE STUPID”
I will guarantee u this one thing, you all will see how stupid you all look in a few years. Just as it is written in 1st Samuel 8. Call me names now and cry your tears later. While many of u look to man to solve your problems and lead ayu like the good sheeple you are, the justus scenario will play out in your face. Like I said meet the new boss, same as the old boss.
P.S when u vote just know ur right is taken and given to the man that represents u. Therefore his policies are what u support. I will wait for the riots when the dollar crashes and food prices soar. I hope u personally know these people u vote for because in the time of panics, humans tend to forget especially where food and safety is concerned.
Cry tears later? The whole damn country crying tears now from how them morons the VIP left this place.
Who ever you are. You just cannot see it. I DONT VOTE for anyone. There is no NDP or VIP. There is just politricks and politrikians. What many of you all fail to see it that this is the divide and conquer rule in full effect. America is now going through the same thing with Rep and Dem. No matter who is running the country, you will get too much spending. All these leaders in countries have to answer to their higher bosses. There is no govenment in history that has not done this. The country crying now because of the financial crisis which caused every nation on the planet to spend more monies and borrow. This financial crisis is called the mother of all conspiracies to bring this whole one world government into place. Many are looking at the sickness and still cant see the source of the sickness. It is called Politricks and Polytrickians. What is the job of a politrikian? The same as a lawyer, a banker, and the so called men of god Pastors. By words mankind was deceived and man still is today. That is the main causes of problems in society. Like I said, meet the new boss, the same as the old one. And don’t be deceived!
Truth must be Alred..hmm interesting!
This is possibly the most brilliant piece I have ever read. That is it in a nutshell.
Is there anymore space up by Balshum Ghut to send Ralph and the crew for life???
lmao
Who put the country in this crisis- dang I going go listen to the Lashing Dogs song now.
The jar IS leaking and a lot of cookies are missing! Everybody pointing fingers. It’s go time now – we all gotta work together and fix this mess
How about a big round of applause for VIP. You have caused this country to be dis functional and sent us into an abyss of uncertainty. I would highly encourage an investigative body to uncover the millions squandered and funneled back to certain ministers. Starting with Fraser!!!!!!!!!
Law Abiding citizen…..a why u pon fraser so eh? Wha he do you?
The man is a disaster to the VI and it’s future. Very arrogant and egotistical. It’s nothing personal. He does not possess the qualities of a leader. He’s blind as a bat and has no direction. He didn’t do anything to me and the question you should ask is what did he do to ALL of us. He only has one interest in mind and at heart…..his very own.
Heads need to roll. Thank God we the
people spoke loudly at the polls, or we would have already been back in the hands of the Motherland.
Shame on the perpetrators! Spending the people’s hard earned funds as if was their own.
Serious times are ahead, people. We need to make some drastic decisions, and now.
Tighten your belts. Leh we do dis ting!
Will the current Govt begin a policy of transparency by publishing a list (date, amount, name of company) of all contracts that the prior Govt signed and agree to do the same going forward?
Them VIP boys and gals saw $82 million in cash but maybe did not realize it was just the cover on about $81.5 million in commitments.
So what those boys and gals did? They spent about half of the cash and sent us into a deficit of about $43 million and then they racked up about $8 million in additional commitments. So we now in the hole by $51 million.
So it is technically true them boys and gals did not need to borrow much. They just spent half of the cash they saw. Looks like when they finally realize what they were doing, they decided to try to borrow another $15 million.
I wonder if Juggy was advising them?
Good on you Doc for your iniital look at the funds, but I’m sure a very more grim picture is coming after the new year. Sad things that Ralph and Fraser did for the past 4 years. Forever backwards….a total loss of 4 years of possible growth even in bad times. Run dem boys up to balsm….
It’s so sad listening to this address. We are in deep s–
No wonder ralph was hospitalised. He know the crap he did.
Can someone dial Scotland Yard?
dang!
Thank God NDP won the elections. We were on our way to help!
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