Mr. Foster Rogers
Chief Minister and Minister of Finance, Hubert Hughes, told the print media on Tuesday that the preliminary Anguilla budget for 2014 had been despatched to the British Government, for its consideration, and that a reply was expected anytime soon.
He said his Government was hoping to present the budget in the House of Assembly before Christmas to avoid any late setbacks of disapproval as in previous times. “I do not anticipate that the British Government will continue to withhold assent to our budget,” Mr Hughes stressed. “We did all that was humanly possible under the circumstances because the economic situation, as bad as it is, was no fault of my AUM Government which came to office on February 16, 2010.My Government has struggled to produce a balanced budget.
“The budget for 2009 [of the previous AUF Government] exceeded 335 million dollars, and up to now we are still struggling with a budget of around 180 million dollars after four years of budgeting. But wehave kept the ship afloat. We have avoided borrowing, largely, and we have been trying to pay our own way throughout the turmoil.”
Mr Hughes was joined at the press conference by his two Permanent Secretaries – Dr Aidan Harrigan, Finance, and Mr Foster Rogers, Economic Development. He creditedthe early preparation andsubmission of the budget to them, and other hardworking staff, whom he said were “always very conscientious about producing a workable budget. “
The estimated 2014 budgetary figures place recurrent revenue at 183.4 million dollars; recurrent expenditure at 183. 2 million; and capital expenditure at 40,492,000 dollars.Permanent Secretary, Finance, Dr Aidan Harrigan, explained that the challenge was “to get revenue to match expenditure” and that the Ministry had managed to get the revenue at the above estimated level. Mr Hughes interrupted: “As a matter of fact, Iwould say the reverse. We are trying to cut expenditure to match the projected revenue.”
Mr Rogers explained that the capital budget included such public sector investment project financing as: 8.8 million for the Ministry of Finance; 21.1 million for Education, Sports and Culture; 3.1 million to upgrade or rebuild the Adrian T Hazell Primary School; 1.2 million for health services; and 13 million for the Anguilla Community College.
Asked about new or increased taxes to bolster the budget,” Mr Hughes replied: “Our taxes have always been imposed and we have always been resisting the idea of taxation without economic development.”
“Does that mean no or yes?”he wasquestioned.
“That means what I said,” he responded.
Dr Harrigan stated that the 2014 revenue would largely derive from such usual main sources as Accommodation Tax, the Interim Stabilisation Levy, Stamp Duty, Customs Duty andProperty Tax. Replying to a question, Mr Hughes said that Value Added Tax (VAT) was not considered for the 2014 budget. “We have not accepted the idea as yet,” he commented. “Around the Caribbean, where it has been implemented, it has not been a very good idea…and in St Lucia and the other places, where they introduced VAT, they are crying out loud to have it removed.”
Mr Hughes stressed that the only remaining source of further taxation was the hotel industry. He noted, however, that this was a seasonal industry which he likened to a sugar cane or salt crop, when, after the season had closed, the workers had no money for themselves let alone for taxation to maintain the economy. He said the island was in need of an injection of foreign capital to boost the economy, increase cash flow and provide new job opportunities.
He was asked to comment on whether there was any possibility for public servants to be paid a portion of their accumulated salary deductions/deferred salaries, or given a Christmas bonus. “I would be the happiest man in the world if I can give these hard-working civil servants a Christmas bonus,” he replied. “If the money is available I don’t see why they shouldn’t get it. We always think positively, but it is not always that our thinkingis realised. I can only say that if the money was available I would be too happy to roll it out.”
Foster Rogers joined in saying that payment of monies was very unlikely, given the current economic plight. Dr Harrigan indicated that with the negative growthof the economy and the budgetary constraints impacting Anguilla, as well as other islands, neither payments (deferred salaries or a bonus) to the civil servants could be afforded at this time.
Mr Hughes further stated: “We are supposed to pay deferred money to public servants and we are supposed to do that when the budget increases significantly. I am not happy that people are still asking me for their money – and we are in no position, as far as the budget situation is concerned, to meet their request, and that bothers me because I believe a promise is a debt. The former administration did set that criteria and we can only goalong with it because we cannot change it.
“We have endeavoured to show that we are willing to go along with it. Unfortunately, we find that there are certain segments of the Teachers’ Union who have been giving the impression that the dispute with the Government of the day is over these deferred payments. That is a manufactured dispute because we have always made our position abundantly clear. We have not been ambiguous that we honour the commitment made by the AUF administration, that if the economy increases sufficiently to allow the payments to be made that this government will pay them.
“We have reached virtual agreement as to the formulas which would apply in paying that money. The question is: has that money yet been realised in the strength of our budget and our fiscal position? The answer tothat is categorically no.”
