There was perhaps no other time, in the recent history of Anguilla, when the hearts of the people of the island felt “strangely warmed” and delighted with their relationship with the UK Government than when Prime Minister Theresa May announced, in November 2017, a grant of sixty million pounds (EC$250 million) for Anguilla’s recovery from Hurricane Irma. The announcement was made during the Joint Ministerial Conference when she met with the leaders of the Overseas Territories, including Chief Minister Victor Banks, at her 10 Downing Street Office in London. It was in fact a new package totalling 70 million pounds for the three worst-hit territories by Hurricanes Irma and Maria – namely: Anguilla, the British Virgin Islands and the Turks and Caicos Islands. That 60 million of that sum, for Anguilla alone, seemed to have indicated a special feeling for the island and its people – perhaps to the envy or consternation of the other territories.
The UK Prime Minister said in part: This new, long-term support, will add to the UK’s efforts to help the region recover and rebuild in the wake of Hurricanes Irma and Maria, which affected more than two million people. It will be supplemented by up to three hundred million pounds of UK loan guarantees for territories that need support to access [additional] finance. She continued: While substantial progress has been made already in the region, the UK is committed to supporting long-term reconstruction efforts so that each Overseas Territory can continue its important work of recovering essential services such as schools, medical facilities and ports as well as power and water supplies.
There are two points to note here. The first is that not only did the promised 60 million pounds delight the people of Anguilla and make them feel really loved and special, but that Chief Minister Banks, ever a man of much gratitude and statesmanship, described the grant as “unprecedented” UK aid to Anguilla. Well, really and truly, so too was Irma – an unprecedented category 5 hurricane that devastated the island, requiring even more than that amount of promised assistance!
The second point is that probably, because of Anguilla’s already debt-ridden situation, and low economic activity, it was not wise for the island’s leadership to even think about borrowing additional money in terms of a UK-guaranteed loan, and so that tantalising temptation was correctly brushed aside. As it turns out, if Anguilla is now experiencing so much difficulty in securing the release of the 60 million pounds, how much more difficult it would have been to obtain approval to borrow money from other sources to supplement the UK hurricane grant? Furthermore, the UK Government reportedly does not even want Anguilla to accept monetary assistance from anyone in the first place!
There is reason for much concern and disappointment that, eight months after Hurricane Irma, a very large percentage of Government buildings and offices including schools, are still virtually in ruins, presenting sad and depressing images on the island. Added to that, it is not known when the 2018 Government Budget, and the revised Medium Term Economic and Fiscal Reform Programme, will be approved. This unfortunate dilemma comes in the face of the steady recovery of the island’s vital tourism industry; the resurgence of investor interest and confidence in Anguilla; and the consequential need for the island to demonstrate a high level of economic and fiscal stability to encourage and sustain both local and foreign investment.
It is understandable that, if the UK Government has decided to give Anguilla money for reconstruction aid, there should be some measure of accountability and oversight in place to safeguard its spending. But this can be an overkill exercise, as it now appears, taking into account that the promised money is in fact humanitarian and not really developmental aid. Yes, the financial situation in Anguilla is deplorable, but it certainly appears to be ridiculous that so many attached conditions, including proposed wide-ranging increased taxation, are being brought to bear by the UK Government, on a struggling people just emerging from a destructive hurricane. Many of them urgently need to repair or rebuild their badly-damaged homes, in advance of the fast-approaching hurricane season, and to find gainful employment.
What is really hard to accept is that when the UK Prime Minister spoke about the reconstruction aid to Anguilla (and the other territories), it was taken at face value with no mention whatsoever of onerous and discouraging conditions. All of a sudden enter Mr. Ben Merrick, Director of the Overseas Territories, and Lord Ahmad, the Minister of the Overseas Territories, springing the surprising conditions on the people of Anguilla. What the demands of the UK Government have done, including the threat to take over the Ministry of Finance, where there are highly-qualified, knowledgeable and hard-working Anguillians, is to have disappointed, if not angered, the people of the island. Rather than causing internal political division, it has brought about a spirit of unity and resolve among the people.
Some persons in Anguilla have gone as far as to suggest that the financial squeeze being applied to the hurricane-devastated island, and its people, is tantamount to the 1969 British invasion and the embarrassment and ridicule the UK eventually experienced. Similarly, to take over Anguilla’s Ministry of Finance, and by extension the Government, may be a mistake the UK Government may regret, and be embarrassed about – especially if there is a consequential international outcry and condemnation.
The way forward is for the UK Government, while closely monitoring the progress of Anguilla and the spending of money, is to desist from taking control of the island’s finances; quickly release the promised 60 million pounds in humanitarian aid now that the UK Government’s financial year began on April 1; and exercise faith in the Anguilla Government and the highly-qualified and responsible local financial and economic experts in the Ministry of Finance. That done, the people of Anguilla will feel loved and trusted, rather than despised and cast aside. And the Government will realise, even more, that it needs to demonstrate responsible leadership and accountability in the management of the island’s financial affairs – and empowered to do so by the UK Government itself.
