When the Anguilla House of Assembly met on Tuesday, March 22, Leader of the Opposition, Ms. Palmavon Webster, fielded a number of questions to Chief Minister and Minister of Finance, Mr. Victor Banks, who replied appropriately.
One of Ms. Webster’s questions was about the on-going cost to taxpayers to resolve the banking crisis. Mr. Banks replied that the cost had now moved from $302 million to $325 million, and he stressed that the longer the situation continued, the costlier it would become.
The Opposition Leader’s written questions were as follows:
QUESTION 1
The Honourable Member for Island Harbour to put the following question to the Honourable Member for Valley South, the Chief Minister:
WHEREAS although the Honourable Chief Minister has spoken in his press conferences and elsewhere of meetings in Brussels and London concerning the problems faced by the Anguillian economy, both in terms of a resolution of the banking crisis and from the standpoints of the Government’s Budget proposals and the Government’s Reform Programme, and of decisions taken in Executive Council, it is not clear that he or his Government have consulted with the Anguillian people, nor is it clear from the Chief minister’s pronouncements what decisions have been taken.
To ask the Honourable Chief Minister:
(a) What revisions have the Government made to their proposed resolution of the banking crisis to meet the British Government’s and my concern that the plan for resolving the banking crisis should be affordable to the Government of Anguilla and, by extension, the Anguillian people?
(b) In what ways have the Government met the Governor’s call for a medium term economic strategy and reform programme that boosts the economy and improves the delivery of public services?
(c) What will be the ongoing financial cost to Anguillian taxpayers of the revised proposals for resolution of the banking crisis?
(d) What amendments have the Government made to their budget proposals which he anticipates will lead to an early assent to the revised Budget?
(e) What will be (i) the tax consequences and (ii) the consequences in terms of utility prices for Anguillian taxpayers of the revised Budget?
The written replies of the Chief Minister:
Question (a):
“The Government of Anguilla has not made any revisions to the proposed resolution of the banking crisis – the model has not changed. The Government’s proposal as adopted in November, has always been the most affordable option of all those advanced to protect customers’ deposits.”
Question (b):
“The Government of Anguilla presented its Medium Term Economic Strategy and Reform Programme document as requested by the FCO in January of 2016.”
Question (c):
“The financial cost of the banking resolution has changed because, as a result of the delay, the quality of assets in the banks has deteriorated. It means therefore that the cost of the resolution has increased to $325 million from the $302 million estimated in December 2015. It is evident that the longer it takes to resolve the banking crisis, the more it will cost taxpayers.”
Question (d):
“The Government has not made any amendments to the budget estimates that were presented in the House of Assembly. As far as has been demonstrated, the late assent of the Budget has nothing to do with the details of the Budget passed in the House of Assembly in early December 2015. All the FCO continues to ask is for the supporting documentation and enabling legislation.”
Question (e):
“There is no revised Budget.”
