CM DELAYS SIGNING PROVISIONAL BUDGET Governor Says It is Puzzling

Mr. Hughes, who delivered statement to the media at a press conference which he called on Tuesday, January 3, was responding to a delay by Governor Alistair Harrison in signing the Government’s 2012 budget passed in the House of Assembly late December. The Governor said he was awaiting instructions from British Ministers who were not available after the Christmas holiday period.

“Once a Budget has not passed, the Government is entitled to utilise the option of signing off on a Provisional Budget,” Hughes said in his press statement. He went on: “The Provisional Budget means that we cannot use the initiatives that we have planned for in our 2012 Budget and have to stick to what was done in 2011. In that case, it means that our proposed revenue generating measures – not taxes – are compromised, and it means that every single day that we are unable to put our 2012 Budget into effect we become compromised in meeting our monthly targets and in meeting the overall deadline set by the UK.

“If you recall last year, as a result of not getting a timely assent to our Budget, we lost over EC8 million dollars in revenue. Of particular significance for Anguilla, however, is that every year we are supposed to receive funds of about EC$9 million from [the] European Development Fund in the form of budgetary support.

“We did not get it last year, however, because of the fact that our Budget was not assented to and we had to utilise a Provisional Budget. I have been informed by my technocrats that already the European Department has been enquiring as to our state of affairs on the Budget, and if again I am forced to sign a Provisional Budget there are strong chances that we would have jeoparised being able to receive those funds.”

While delivering his press statement, the Chief Minister claimed that the British Government’s agenda to move his two Permanent Secretaries was to replace them with UK personnel.

Governor Harrison, who indicated that he might issue a more formal statement later, made the following comments on the budget in reply to those by the Chief Minister, and to concerns expressed by four Permanent Secretaries in emails to him, regarding his delay in signing the 2012 budget:
“The Chief Minister’s announcement that he will not sign a provisional budget for a week is puzzling. I told him and other members of EXCO on 22 December that it was unlikely that I would receive instructions to assent to the budget until the first few days of January, so he has known for some time that the budget is likely to be assented to within another week at the latest. There is therefore no need to withhold what is normal operating procedure in the circumstances. This procedure has been used no fewer than 10 times in the last 16 years fore various reasons.

“Revenue gathering can continue without a budget as the legislation is in place. It is only expenditure, including wages and salaries, that would be affected. It is normal procedure for the Finance Minister to sign a provisional warrant to allow bills and wages to be paid and there is no reason for him not to do so this time.

“Ministers in the UK are being consulted and I am sure will take a decision very rapidly. It is a pity that the budget was not taken to the House until so late in December since, as the Chief Minister says, consultations with the UK were completed in late November.

“It is worth clarifying that the technical assistance the UK has offered in connection with the Chief Minister’s concerns about the re-shuffle of Permanent Secretaries would be at his request. There is no intention of imposing anything he does not want, although the British Government was trying to help. Also, previous TA [technical assistance] has been in the form of the services of independent (not necessarily) British consultants – not UK public servants.”