3. RECURRENT EXPENDITURE 2018
Mr. Speaker, the Recurrent Expenditure Estimate for this 2018 fiscal year is projected to be EC$202.15 million excluding amortisation of EC$27.2 million. This is a 4.63 per cent decrease or EC$9.80 million difference when compared to the 2017 approved recurrent budget of EC$211.96 million. This reduction is due, in part, to an expenditure review undertaken by Ministries and Departments.
Personal Emoluments has an estimated 2018 budget of EC$85.93 million with a change of 3.08 percent or EC$2.73 million difference over 2017 approved budget of EC$88.66 million. This reduction is as a result of the deferral of filling some vacant positions across Government. The Retiring Benefits remains at the 2017 approved budget of EC $10.76 million.
Interest Payments, which includes both domestic and foreign, has an assessed budget of EC$18.89 million, an increase of EC$1.46 million from the 2017 approved budget of EC$17.43 million. This increase is to facilitate an upturn in the variable interest rate and proposed new debt from the Caribbean Development Bank.
Goods and Services saw an overall reduction of EC$7.67 million, taking the 2018 budget to EC$41.64 million from a 2017 approved budget of EC$49.32 million. This reduction was as a result of savings accrued from the expenditure review undertaken. The Training budget of EC$3.19 million falls within this category and suffered a significant reduction of EC$5.55 million when compared to the 2017 approved budget of EC$8.74 million. Mr. Speaker, this drastic reduction was not an easy decision to make, as it is a reduction in funding that supports the training needs of the young people of this country. Hence, the Training budget allocated for 2018 is assigned for students currently abroad and the expected 2018 Island Scholar.
Current Transfers has an estimated 2018 budget of EC$44.92 million. This is a reduction of 1.87 percent over the 2017 approved budget of EC$45.77 million. Under this account, payments are made to statutory bodies, medical treatment and social service initiatives.
Mr. Speaker, I will now detail each Ministry’s 2018 expenditure allocation and initiatives planned for 2018.
3.1 H.E. THE GOVERNOR & DEPARTMENTS
The 2018 recurrent expenditure budget for H.E the Governor’s Office and Departments is EC$25.18 million. This represents a decrease of 17.51 per cent or EC$5.34 million over the 2017 approved budget of EC$30.52 million. This cut is mainly as a result of a reduction in Training which falls under the Department of Public Administration.
Public Administration
Mr Speaker, Public Administration will continue to collaborate with DITES in 2018 to improve the online recruitment experience for customers as well as implement other phases in the automated online system. Public Administration also hopes to review the recruitment processes to ensure transparency, equity, fair-play, justice and consistency.
Public Administration will continue to focus on reforming the Anguilla Public Service (APS) and building the necessary leadership and management capacity. Public Administration will work with ministries and departments over the period April to June 2018 to undertake the Change Readiness Assessment, a key part of preparing to implement change initiatives and the Cultural Assessment to assist in understanding barriers to change, the current culture and subcultures within the APS and identifying positive cultures that exist to support change.
Furthermore, Public Administration hopes to undertake an assessment of the Human Resource Management systems, policies and practices to assess their effectiveness.
3.2 MINISTRY OF HOME AFFAIRS & DEPARTMENTS
The Ministry of Home Affairs has seen a sharp increase in the 2018 recurrent budget with a total of EC$38.22 million, compared to the 2017 approved budget of EC$7.32 million. This increase is as a result of the transfer of the departments of Education and, Library Service from the Ministry of Social Development. Additionally, the Department of Environment was transferred to the Ministry of Infrastructure.
Mr Speaker, the Ministry of Home Affairs and Education are committed to providing high quality service to the public in all areas under its remit. Even with the devastating blow received by the Ministry as a result of the passage of Hurricane Irma, the Ministry remains steadfast in its quest to provide wide-ranging educational services to the Anguillian community, relevant and reliable sources of information, modern labour legislation and sound border control and immigration services. The focus for 2018 will be to redevelop and improve existing infrastructure, build human resource capacity and work towards ensuring better preparedness and resilience for our labour force and our general operations.
Education
The Ministry and Department of Education remain committed to provide quality education services at all levels. Mr Speaker, this year, work will continue on the implementation of the 2015-2020 Sector Strategy “Education and Training for a better Future- Vision 2020 ’’. Special emphasis will be given to a number of priority areas. At the Early Childhood level, focus will be placed on review and renewal of the national curriculum and its alignment with the OECS document as well as continued institutionalising of the Standards for the Regulations of Early Childhood Services. At primary, continued improvements in Literacy and Numeracy will be the focus and for the Secondary level, certification of courses in Technical, Vocational Education and Training as well as greater use of technology in teaching and learning and in decision making. There will also be increased emphasis on school safety and building resilience at all levels of our education system.
Anguilla Community College
Mr Speaker, The Anguilla Community College (ACC) will continue to pursue its mandate to service the needs of varied persons across Anguilla. The College will consider alternative matriculation and foundation courses to ensure that individuals who had not previously met entry requirements could do so with support and intervention. It is hoped that those youth who have now been more convinced of the advantages of post-secondary education would avail themselves of this opportunity. The College will also seek to enhance its student support systems to promote greater retention of students and a higher rate of programme completion. In 2018, emphasis will be placed on vocational education and a range of short courses aimed to meet niche areas of need in the community. The ACC anticipates the commencement of the building at Long Path and will also continue to prepare for the eventual full transition of the Sixth Form to the institution. As ACC moves forward it will also strengthen systems for financial and operational accountability.
Library Services
The Department of Library Services continues to work at ensuring its continued relevance in a time of changing media priorities. The department’s Strategic Plan for the ensuing five years is presently being finalized and will feature four broad priority areas (i) Human Resource Development (ii) Financing of Library Services (iii) Remaining Relevant and (iv) Customer Focused and Management of Resources. Mr Speaker, among the new initiatives being undertaken is the Wall of Art highlighting the work of artists operating locally, the Mover and Shakers, and a wall dedicated to those who helped to build Anguilla. Permission has also been granted for the Library to begin offering coffee to its clientele at a minimal cost with the funds raised going towards augmenting the department’s budgetary allocation.
Department of Information and Broadcasting
Mr Speaker, after valiantly surviving a devastating blow by Hurricane Irma in 2017, the national broadcasting station is on track to becoming more resilient with equipment that will ensure that coverage is better than ever. Following decades of renting transmitter and antenna space, the station is now set to transmit from Government facilities at Crocus Hill. 2018 will see the return of the Departments regular local broadcasting hours – 17 ½ hours a day – from 5:30am to 11pm. Just as the entire community is reinventing itself, Radio Anguilla is looking to do the same in 2018 with revamped and refocused programming. Radio Anguilla will focus on local output, with community outreach being priority. Its news and information will remain as reliable as ever.
Department of Immigration
Mr Speaker, in 2017 emphasis was placed on improving the processes within the Immigration Department. Effective June 1st, 2017, there were changes to the Immigration Policy that are intended to encourage travel to Anguilla and facilitate ease of entry without compromising border security. There were also changes to the Immigration and Passport Act to allow children born in Anguilla and grandchildren to reside and work without having to pay fees and obtain a work permit. During the year continued focus was placed on improving the human resources within the department by ensuring that officers received the relevant training. The department continued its effectiveness of illegal immigrant monitoring through increased patrolling and operations within the Task Force Section.
The Immigration Department plays a pivotal role in the development of Anguilla and will continue to improve the systems within the department that would lead to more efficiency while ensuring that the security of the island remains paramount. For 2018 Mr Speaker, there will be ongoing training for officers in the areas of customer service, fraudulent document detection and other areas relevant to their job. The aim is to ensure that the officers’ skills are enhanced and the services provided to residents and visitors are at a high standard. In addition, the department would move towards implementing an online visa process. This would be beneficial to Anguilla as a whole and in particular, the tourism and hospitality sector.
Department of Labour
Mr Speaker, The Department of Labour is poised and ready to embrace a new Labour Code that comprehensively addresses the needs of the labour force of this country. We are also embracing the technologies which will lead to greater efficiencies and improved service to our valued customers. We applaud the resilience of the labour force of Anguilla in this trying time and their willingness to develop new skills and re-tool themselves. We will continue to strive to ensure that we provide the best possible service to the public and that we carry out our functions with fairness and integrity.
3.3 MINISTRY OF FINANCE, ECONOMIC DEVELOPMENT AND DEPARTMENTS
The 2018 recurrent budget for the Ministry of Finance is EC$76.63 million. This is a 0.20 per cent or EC$153 thousand decrease compared to the 2017 approved budget. This is mainly attributed to the transfer out of two departments, namely Department of Lands & Surveys and Department of Physical Planning to the Ministry of Social Development. Likewise, the Department of Information Technology has been transferred to the Ministry of Finance, from the Ministry of Infrastructure.
Economic Development, Investment, Commerce & Tourism
Anguilla, like other small islands and microstates, faces unique challenges due to its size, transportation and accessibility issues, distance from major population centres, population size and density, level of autonomy, limited diversification of economic activity and high-energy cost and dependency on fossil fuel.
Mr Speaker, Hurricane Irma has reminded us of these peculiarities, challenges and vulnerabilities but also of the need for Anguilla to accelerate and build out the ongoing work to make better use of our significant sustainable and renewable energy potential, our unique and diverse ecosystem and potential exclusive economic zone, our resilience, social capital and our indomitable strong sense of what makes us Anguillian- proud, strong and free.
Therefore Mr Speaker, the focus has been and will continue to be on development that combines social, economic, environmental and technological opportunities and solutions that will create and enhance a smart, diverse and integrated island that can sustainably manage its natural resources and the life cycle of its current and future infrastructure.
The goal is to commit and accelerate Anguilla becoming a SMART ISLAND. Using a modified definition of Smart Island from the Smart Island Initiative, Anguilla will “follow a climate resilient pathway, combining climate change mitigation and adaptation efforts, in order to create sustainable local and foreign direct economic development and a high quality of life for the local and transient population by implementing smart and integrated solutions to the management of infrastructure, natural resources and the environment as a whole, supported by the use of Information and communication technologies, all the while promoting the use of innovative and socially inclusive governance and financing schemes.“
Mr Speaker, this government will continue the diversification of Anguilla’s economy through
• Enhancing and attracting diverse foreign direct investment,
• Mixing and matching technology and tourism for smart and sustainable experiences and connectivity,
• Creation of a special economic zone that is focused on knowledge based businesses through the use of information and communication technologies, biomedicine and commodities,
• Rebooting of the financial services industry, including attracting businesses and investments in Financial technology (Fintech), distributed ledger technology, and blockchain. To this end the Anguilla Utility Token Offering (AUTO) Act has been given the green light by the UK Government and will be enacted in the next few weeks,
• Addressing Anguilla’s international and national transportation needs through increased airlift and access from the current major gateways, the redevelopment of the Clayton J Lloyd International Airport, the Blowing Point Port Facility, Road Bay Jetty and the plans for Corito Development,
• Focusing the UK Grant funds on areas such as education, health, access, and integrated digital by default public services for a more holistic, cohesive and collaborative delivery of public services,
• Enhancing empirical data and statistical based decision making, thereby enhancing government’s openness, accountability and transparency in its decision making,
• Making the best use of our own resources such as Anguilla’s potential Exclusive Economic Zone (EEZ) and
• Diversification of the tourism industry by creating additional attractions and investment opportunities in the areas of marinas, heritage sites and gaming (if the benefits outweigh the risks).
Anguilla Tourist Board
Mr Speaker, as a part of the restructuring process, the Anguilla Tourist Board is engaging in a comprehensive staff development programme and continues to strengthen its core divisions of Marketing and Destination Experience. The ATB will also implement a data, results and digitally driven marketing plan; an innovative website and an increased presence in the market place. In addition, the Anguilla Tourist Board Head Office will embark on a number of policy development initiatives as well as continue to engage more closely with its stakeholders. The ATB will give more focus to delivering its Beyond Extraordinary Anguilla Experience to our visitors. The Destination Experience division will be embarking on a number of initiatives aimed at developing and enhancing Anguilla’s tourism product for the promotion to and encouragement of visiting guests so that they can enjoy the island’s offerings, products and services. A key objective of the Destination Experience division is the creation of new products that will provide exciting and engaging experiences for a new target market of visitors thereby ensuring the sustainability and success of the tourism industry.
The Anguilla Tourist Board and the Ministry of Tourism will continue to work with local, regional and international airline partners as well as ferry operators, to enhance the guest travel experience and improve connectivity to the island. The Anguilla Tourist Board and the Ministry of Tourism’s collaboration will also be manifested in programmes to enhance standards, customer service and facilitation of visitor and product enhancements.
3.4 MINISTRY OF SOCIAL DEVELOPMENT
With the transferring out of Library Services, Education Department and the Department of Library Services, the Ministry of Social Development has a 2018 recurrent budget of EC$48.27 million. This is a 39.10 per cent reduction from the 2017 approved budget of EC$79.28 million. The Education Department accounted for 35.0 per cent of the Ministry of Social Development budget. Also, the Ministry of Social Development has gained the Departments of Lands & Surveys and Physical Planning.
Mr Speaker, The Ministry of Health has been engaged in extensive work on health financing and has engaged in partnership with the Pan American Health Organisation and the Anguilla Social Security Board to review and revise the National Health Fund Act in an attempt to progress Universal Health Access for the people of Anguilla.
The Ministry has prioritised mental health and undertook a review of the National Mental Health Policy, training of non-health professionals such as school counsellors, social workers, probation officers and prison officers in the identification of persons at risk or showing signs of mental illness and the referral process. One registered nurse has recently completed training in mental health and a second registered nurse in currently in Jamaica being trained in mental health and will return at the end of 2018. Additional work on strengthening mental health services to address the emerging mental health needs of the people of Anguilla is being pursued with partnership from the Pan American Health Organisation.
National Chronic Disease Unit
The analysis of STEPS and Global School Health data and production of the respective reports was a major achievement for the Ministry of Social Development in the fight against the Non-Communicable Diseases (NCD). Mr Speaker, recommendations will be used to guide action and monitor and evaluate progress. Based on the findings the following will be prioritised for this year (2018):
• national behaviour change and media campaigns to increase physical activity and improve nutrition,
• legislation to reduce exposure to tobacco smoke,
• the development of protocols for screening and management of the major NCDs and
• capacity building for communities to support self-management programmes which enable patients to take responsibility and manage their condition.
Department of Health Protection
Mr. Speaker, despite the ravages of hurricane Irma, with limited resources and a non-functional Environmental Health Unit building, officers of the Department of Health Protection worked beyond the call of duty, to mitigate health risks post Irma in the areas of, but not limited to, solid waste management, vector control, food safety and water quality. I must commend the Department of Health Protection officers for a job well done in protecting the public’s health. With regard to Irma Relief or budgetary support we must acknowledge and particularly thank the Pan American Health Organization/World Health Organization (PAHO/WHO), CARPHA and Public Health England, for the provision of technical advice, vehicles, equipment, supplies, and training to mitigate risks post Irma and beyond.
The Department of Health Protection finalized the procurement of waste collection bins and waste collection contracts which when fully implemented will improve sanitation throughout the island. The recycling of aluminium beverage cans, tin cans, bimetallic cans and glass containers are now components of the waste collection contracts and this is a significant milestone enabling Anguilla to promote itself as a “green” tourism economy. Mr Speaker, Anguilla must embrace waste minimization, as a waste diversion mechanism from the disposal site to increase its life span. Waste reduction and recycling strategies require a team approach, everyone must be on board, and we have to take greater responsibility for keeping our premises and Anguilla clean.
For 2018 the Department of Health Protection will continue to work closely with food establishments and vendors to ensure that Anguilla’s food supply is protected and safe.
Health Authority of Anguilla
Mr Speaker, during 2018 there will be a sustained focus on improved, expanded and cost effective health care services, compliance with the HAA Act with regard to completion of the annual audited financial statements, strengthening of the accounting function and maximizing collections. Accomplishing these will be through:
(a) the acquisition of instruments and equipment,
(b) acquisition and implementation of appropriate systems and processes including up-to-date Standard Operating Procedures,
(c) utilizing a newly acquired state of the art 16 slice CT Scan,
(d) rehabilitating and expanding the physical facilities at the PAH to include a new maternity wing, the building of two polyclinics in the central and western health district and
(e) the training and recruitment of suitably qualified human resources.
Mr. Speaker, despite the many challenges, which were compounded by the passage of Hurricane Irma the Health Authority was able to accomplish the:
(a) pre-works for the completion of 2016 and 2017 audited statements within 2018 paving the way for full compliance with the HAA Act in 2019,
(b) implementation of a 24 hour cashiering service at the PAH and
(c) specialised training of Paramedics, Radiographers, Psychiatric, Public Health and Nephrology Nurses.
These initiatives coupled with a continuous concentration on preventative care at the primary level, and expanded surgical and neonatal intensive care services at the secondary level, will ultimately result in a decrease in the government expenditure with respect to transfers overseas and by extension improved health for the Anguilla’s residents and visitors.
Partners Advocating for Violence Eradication (PAVE)
PAVE continues to make strides in promoting a holistic approach to addressing the threats of crime and violence with a hope for eventual eradication. In 2017 Mr Speaker, findings were shared from research on the emergence of gun and gang related violence on Anguilla; and a Civic Engagement Framework with the ultimate goal of empowering individuals and groups to positively influence community circumstances was developed. Projects geared towards changing the lives of individuals and families on Anguilla, while empowering them to make more positive choices through education and other viable alternatives were also presented. These projects, which will be formally launched in 2018, support interventions for parents through a national parenting programme and the establishment of a literacy/numeracy/ICT programme to support most vulnerable members of our adult population. In 2018, PAVE will also focus on identifying, developing and supporting other structures that will strengthen and solidify peacebuilding and citizen security initiatives, thus making them more sustainable.
Gender Affairs
Mr Speaker, The Gender Affairs Unit is working toward realising a vision of being “Actively committed to fostering equal and human treatment in the daily lives of every man, woman, girl and boy; manifesting a united Anguilla” and a mandate “To plan, develop and coordinate national policies, programmes and activities focused on Gender Equality in the Workplace and wider community.” Gender Affairs actively engages in raising awareness around a range of gender issues, namely through media engagement, regional and international relationship building and community outreach programmes and activities. In 2018, the unit will continue to build on its successes and finalise a National Gender Policy and Strategic Plan for Anguilla.
Department of Probation
Mr Speaker, Staff of the Department of Probation and related agencies continued to support the development of services for rehabilitation of offenders, and benefited from major training opportunities in 2017. Among other training opportunities for staff, the Supervisor of Zenaida Haven took part in onsite training and observation in the USA at a residential facility. The department itself celebrated twelve (12) years of operations, and the Zenaida Haven residence celebrated eight (8) years. These two milestones are significant in light of the fact that this means that young people and adults have been afforded alternative sentencing arrangements to incarceration for certain offences. These services point to the maturing of the criminal justice system in Anguilla.
Department of Social Development
Mr. Speaker the Department of Social Development continued to be a significant and committed player in the Anguilla Public Service and the community at large. The protection of vulnerable segments of the population remained its main mandate while at the same time promoting well-being among all residents of Anguilla. The passage of Hurricane Irma resulted in significant disruption of the Department’s programmes as personnel were assigned to relief and other activities during the immediate aftermath. Ongoing programmes to combat child abuse and other forms of violence continue. Progress continues to be made with the OECS Family Law Reform Legislation in the area of Maintenance and Parentage, Testing Bills and Child Care and Adoption Bills. In early 2017 a scoping visit was completed by two agencies with regard to child safeguarding and protection issues. A detailed training plan was subsequently devised for the third quarter of 2017. Mr. Speaker the spiralling demand for assistance with medical services reveals that the health of the nation’s people remains critical. In 2017 Government’s contribution to local and overseas medical treatment remained significant and speaks to the larger issue of funding health care. The challenge is for all individuals to adopt a lifestyle of personal responsibility and a commitment to self-empowerment.
The Department of Prisons (HMP)
Mr. Speaker, as with many other government structures, the plant at HMP was severely impacted by the passage of Hurricane Irma. The main roof over the residential area was lost as well as the roofs over the kitchen and classroom areas. While services to inmates were impacted by this damage, the prison service remained committed to protecting the public and the inmates of the institution. I would like to place on record the Government’s thanks and appreciation to the Superintendent of Prisons and her staff for the phenomenal job done during this difficult period. Training continues to be provided to the staff of the HMP by HMG and the positive results of this training are evident in the management of the prison.
Department of Youth & Culture
The Department of Youth and Culture’s principle focus in 2018 is the revision and redevelopment of a National Youth Policy for Anguilla. Mr Speaker, it is now vital, as we plan for the future, that we ensure that our national youth policy is fit for purpose, reflects new challenges, creates opportunities and appropriately positions our young people as active participants in national development. The Department will also continue its efforts to further develop and strengthen our cultural and creative industries. Focus will be placed on creating an enabling environment that can foster greater economic opportunities for cultural practitioners and artistes. Crucial actions to be taken include, the legislative extension of a number of international conventions to Anguilla that can unlock economic benefits to our cultural practitioners and artists; establishment of a National Arts Council and the creation of a national cultural and artistes registry. The Department will also begin work on the establishment and adoption of an incentive package for cultural practitioners and artistes, in line with the National Culture Policy.
Department of Sports
Mr Speaker, 2017 was a very productive year for the department. In addition to support for National Sports Associations, teams and athletes, the Department successfully completed and launched the National Sports Policy, developed and implemented the National Sport Associations Accreditation Policy, hosted Summer Camp 2017, hosted the post-Irma Sports Relief Camp, designed and conducted the first cycle of the Out of School Activity Program and launched a strength and conditioning program for athletes who were earmarked to represent Anguilla at the Commonwealth Games 2018 in Gold Coast, Australia.
Mr Speaker, the department eagerly looks forward to 2018 as it begins implementation of the National Sports Policy in earnest Towards a Healthier Happier Anguilla. The Department will expand its programming to communities, youth and the elderly as it promotes sports for all. In addition significant focus will be placed on renovating damaged facilities and the construction of new sports facilities. Sports facilities were especially hard hit with damages estimated in excess of EC$3.22 million.
Department of Lands and Surveys
The Department of Lands and Surveys has taken on several initiatives to enable the Government to better serve the public. During the course of 2018 the Department will officially launch its informational website. This year the department will be working towards the implementation of its Land Information System (LIS) that will enable on-line submissions. This will assist with streamlining the registry processes which will in turn create an efficient land market.
The department continues to work in collaboration with various Government Agencies and the Organisation of Eastern Caribbean States (OECS) on the Global Climate Change Alliance (GCCA) Project, which is focused on Climate Change Adaptation (CCA). A component is the review and development of Land Policies. The Department is also pursuing amendments to the Land Surveyors Act and Registered Land Act to aid in the day to day transactions with the general public.
Department of Physical Planning
In the wake of Hurricane Irma, and the evident threat of climate change, the Planning Department is determined and committed to build resilience in Anguilla’s planning system. The aim is to promote the sustainable development of Anguilla’s economy through the facilitation of proper land use planning and building practices, the creation of policy, proper planning legislation and to support wise and orderly development. The Department also continues to work in collaboration with various Government Agencies and the OECS on the Global Climate Change Alliance Project. The department endeavours to:
• Effectively manage the planning and building process through proper legislation and a one-stop platform,
• Revise the building code,
• Expand its GIS system,
• Broaden its public awareness programme and
• Conduct National Electric Code (NEC) training courses for all electricians on the island.
3.5 MINISTRY OF INFRASTRUCTURE AND DEPARTMENTS
The Ministry of Infrastructure has a 2018 recurrent budget of EC$13.83 million. This is a 23.29 per cent or EC$4.20 million decrease when compared to the 2017 approved budget of EC$18.32 million. This reduction is as a result of the expenditure review and the transfer of the Department of Information Technology to the Ministry of Finance. As mentioned earlier, the Department of Environment has been transferred from the Ministry of Home Affairs to this Ministry.
The Ministry of Infrastructure, Communications, Utilities, Housing, Agriculture, Fisheries and Environment has continued its work despite the challenge of scarce financial resources to address critical infrastructure needs and other issues. A priority for the Ministry is to address the reconstruction of government infrastructure damaged by Hurricane Irma and continue to address transportation advancement. This is a challenge and a case of “do more with less.”
Department of Infrastructure
The Department of Infrastructure played a critical role in securing funds for the repairs to the Road Bay jetty and for advancing the process for the proposed new jetty. The engagement of the Infrastructure Advisor has contributed to moving this initiative forward. The lack of aggressive maintenance of public infrastructure over the last decade, which was highlighted last hurricane season means that a significant portion of the Government’s infrastructure has to be rebuilt or replaced. Nonetheless, the Department of Infrastructure continues to work with scarce resources to undertake maintenance of public infrastructure.
Anguilla Fire and Rescue Service
Mr Speaker, The Anguilla Fire and Rescue Service continues to operate under the most difficult of situations, yet they show the true spirit of what it means to be Anguillian, to be proud and committed to ensure that the aerodrome remains open. 2018 will see the completion of the new Combined Services Building Housing the new Fire Station and Air Traffic Control operations. Additionally, the reconstruction of a training facility will be addressed to ensure that fire service is well trained and has the necessary equipment to meet the aviation requirements.
Department of Fisheries & Marine Resources
Mr Speaker, in 2018 the Department hopes to build on accomplishments made in 2017 and will continue with regular work programmes and specially funded projects. The Department was successful in securing funding for initiatives from DARWIN and Biodiversity and Ecosystem Services in Territories of European Overseas (BEST) programmes over a period of four years. The projects will bring about working collaborations between the Department of Fisheries, local, regional and international environmental agencies. The Department’s regular initiatives will be complemented by the work and outcomes from the initiatives supported by the BEST and Darwin programmes and collectively have greater impacts for the fishery sector. In 2018, the Department will focus on empowering and strengthening fishers and the fishing industry.
Department of Agriculture
The Department of Agriculture both at its organisational and activity levels continues to face many challenges Mr Speaker. In 2018, the Department of Agriculture and the National Farmer’s Association welcome the fact that attention is finally being placed on the contribution that agriculture can make to the economy. The vision of the DOA is to see a significant decrease in imported food by encouraging optimal use of available arable lands for agricultural production. In 2018 the Department will be creative in the provision of services that addresses tractor services, crop production, and surveillance of the genetic improvements of breeds of animals to address sustainable livestock services.
Department of Environment
Mr Speaker, the key national programmes will continue in 2018 focused on enabling sustainable national development. The Department will continue to lead on the Government of Anguilla’s Energy Audit of the various ministries and the implementation of the conservation efforts for expenditure reduction. The development and roll out of a data portal created for the Government of Anguilla aptly dubbed ‘Anguilla’s Data Gateway’, a Web based Portal for spatial data that resides in several agencies across the Anguilla Public Service will also be finalised. The Department’s initiative for a research component saw the Launch and operationalization of the Mid-Atlantic Environmental Research Institute in partnership with the Ministry of Education and the Anguilla Community College. The operationalisation of the OECS Global Climate Change Alliance funded ‘Streamlining of Greenwaste Project’ is also slated for 2018.
In 2018, the ongoing merger of the three agencies (Department of Agriculture, Department of Environment and Department of Fisheries & Marine Resources) will be completed. This will allow for more efficiencies and better use of existing resources. The new agency will be launched in the 2019 budget preparations.
4. RECURRENT REVENUE 2018
Mr. Speaker, the recurrent revenue estimate for 2018 is estimated at EC$177.50 million, which is a 17.40 per cent reduction over the 2017 recurrent revenue estimate of EC$214.89 million. This severe reduction is due to the anticipated economic downturn in the tourism and related sectors following the passage of Hurricane Irma.
Mr Speaker, I will now review the 2018 recurrent revenue estimate by revenue classification.
Under Tax Revenue, Taxes on Property is projected to bring in EC$4.76 million; this is a 33.68 per cent reduction from 2017 collections. This reduction is due to the impact of Hurricane Irma on the housing stock and the relief that will be afforded affected individuals.
Taxes on Income (Interim Stabilization Levy), is anticipated to bring in EC$11.98 million, a reduction of 15.23 per cent when compared to the 2017 outturn EC$14.14 million. This reduction is based on an anticipated reduction in employment and wages resulting from the closure of establishments and the impact of Irma on the tourism sector during peak season.
Taxes on Domestic Goods and Services is estimated at EC$28.99 million, a 44.19 per cent reduction when compared with the 2017 collection of EC$49.77 million. A major revenue account affected under this section is Accommodation Tax which is estimated to bring in EC$7.24 million, 63.21 per cent less than 2017 collections of EC$19.85 million. This account is directly linked to the tourism sector that has been severely hampered by Hurricane Irma.
Taxes on International Trade is projected at EC$14.87 million, an 11.91 per cent reduction over the 2017 collection of EC$16.88 million. Customs Surcharge is a major revenue account which falls under this category and it is expected to bring in EC$12.87 million, 18.82 per cent less than it did in 2017. Import Duties is anticipated to raise EC$61.78 million. This is a 4.26 per cent increase over 2017 collections. The proposed increase in collections is based on increased activity in the construction sector.
Fees, Fines and Permits collection is estimated to increase by 50.79 per cent to total $29.83 million. This increase is owing to anticipated growth in Domain Name Registration for .AI which happens to be the domain for Anguilla and the acronym for Artificial Intelligence.
Mr. Speaker, as I have just illustrated it is obvious that the impact of Hurricane Irma has much to do with our reduced 2018 recurrent revenue budget. We know that the impact will be similar for many households and businesses. We are encouraging all taxpayers to visit the Inland Revenue Department to make arrangements for settling any outstanding or current debt obligations based on their circumstance.
Mr. Speaker, in the context of the key departments in the Ministry of Finance, I must pause here to comment on the hard work and dedication of the Management and Staff of H.M Customs and the Inland Revenue Department. While these agencies seldom receive the kudos they deserve because of their function as revenue collection agencies — they are indeed the life blood of the delivery of Government services. As Chief Minister and Minister of Finance I am constantly on the phone defending these agencies in the execution of their duties. I am happy to do so because I recognize the tremendous pressure officers can come under when they must insist that persons meet their obligations as citizens. In this role they are also human beings and are subject to error and perhaps a bad day — but for the most part they are simply doing their job and following instructions. It is because of the efforts particularly of the leadership in these agencies that Anguilla is able to see real progress in arriving at our revenue targets. Particularly, in this challenging year I want to pay special homage to these agencies for their dedication and service, often beyond the call of duty, to ensure that the resources are available to provide the critical services which our people deserve. Kudos to all of you!
5. CAPITAL REVENUE & GRANTS 2018
Mr Speaker, capital revenue in 2018 is anticipated to be EC$23.98 million from the ANGLEC share sale.
Capital Grants for 2018 are estimated at EC$84.54 million and comprises approximately EC$68.35 million from the UK Government’s Anguilla Country Programme and a total of EC$16.20 million from the EU’s European Development Fund Programme. Following the aftermath of Hurricane Irma, the Government of Anguilla applied to the European Commission to access reserves of the 11th EDF, specifically the “Reserve B”. This facility finances humanitarian and emergency assistance for the OCTs faced with serious economic and social difficulties of an exceptional nature resulting from natural or man-made disasters. The Government was successful in being allocated approximately EC$8.90 million.
6. CAPITAL BUDGET
Mr Speaker, the proposed Capital Budget for 2018 is EC$85.74 million.
This, Mr Speaker, is largely subject to financing from the UK Government under their Anguilla Country Programme. The UKG pledged a £60 million (approximately EC$230m) reconstruction grant to restore a significant proportion of the public infrastructure destroyed or damaged by Hurricane Irma. To date the funds have been identified to support the repairs, reconstruction and development of schools, health facilities, government offices, ports, roads, the water distribution system, building resilience in information systems and communications, modernisation of public services and tourism sector development. The associated projects will form the bulk of the Capital Investment Programme over the next three years.
The allocation for 2018 is EC$68.35 million and should focus on a first round of priority projects which include – development of the Albena Lake Hodge Comprehensive School, Adrian T Hazell, Valley Primary and Morris Vanterpool Schools, repairs to schools playing fields; repairs to the Princess Alexandra Hospital and development of a Valley Polyclinic; repairs to hurricane shelters and various Government buildings, Information Systems development and Blowing Point Port Development.
This support aligns with the implementation of Anguilla’s EU EDF11 programme where the focus is the implementation of Anguilla’s Education Development Plan including redevelopment of the Albena Lake Hodge Comprehensive School and development of TVET programmes.
Mr Speaker, I am also pleased to provide an update about funding for the construction of the Anguilla Community College. The Government of Anguilla has sent a letter of request to the CDB to access up to US$5.0 million in grant funding from the Infrastructure Fund for Mesoamerica and Caribbean. This is intended to support the construction of the Anguilla Community College and the outfitting of TVET workshops at the secondary school. Mr Speaker, this will enable our students to attain the necessary levels of certification.
Mr Speaker, when I speak of our plans for capital development, the need to build, or now in this case rebuild a better Anguilla, I always seem to close with some admonishment, or what I prefer to term, food for thought. This is because the development of Anguilla is something that is close to my heart. All of our hearts. It is here that my emotions are close to the surface. This year I can’t help but speak of what I consider to be the very nature of development assistance.
What I speak of now, Mr Speaker, is humanitarian aid, how it is given and how it is received. Mr Speaker, Anguilla is a proud nation; it will always have its pride, its limits in what it can allow or visit on its people, its intimate knowledge of its populace, what is going through and what it can bear. It is therefore untenable in the pursuit or the acceptance of humanitarian aid that it be bound by constraints, tied by conditionalities, not related to correction of any purported human rights abuses, but as a bargaining tool to bring one into line with the agenda of the administering power. The stick and carrot approach is indefensible, where the real casualty of failure to acquiesce is the welfare of children, the sick, an entire country’s rehabilitation following the devastation of a natural disaster.
Mr Speaker, a country in need is one that requires flexibility, time and streamlined processes to access support. This is not a new way of doing things, it is common sense and examples of this approach abound. Despite being in need, it must be a level playing field with mutual respect, where a country is not the underdog. No country should be held to ransom. It is not a nice feeling to be on the receiving end of such and it is also not a good look for any country who administers such.
Mr Speaker, humanitarian support or aid should be just that.
7. CONCLUSION
Mr. Speaker, yet another time I must express my sincere appreciation for the patience and tolerance demonstrated by this almost captive audience of invitees here in the gallery to my lengthy presentation. Of course I appreciate listeners on the various media in the comfort of their homes; cars; and offices as well. Fortunately for them they have the luxury of tuning out without causing the appearance of insult. I humbly apologize if it may appear that I have not shown much consideration for your valuable time. Unfortunately, I must also be careful not to abridge the tremendous effort that all my colleagues in the Ministry put into this exercise. I have genuinely tried to balance these competing concerns in the delivery of this Budget Address.
I have used the phrase natural and manmade in many parts of this presentation because the challenges we face in the aftermath of Hurricane Irma fall into these categories. We all are fully aware of the physical impacts of that destructive storm. Those impacts can readily be quantified. And if we had the resources available, with time, we may successfully return our island to a state of stability. However, at every turn in the process the human factor may come into play, namely, the trauma associated with losing one’s property and other belongings; the feeling of despair associated with being unemployed or underemployed; and the atmosphere of uncertainty that occasionally overwhelms the strongest among us whenever some new setback rears its ugly head. Unfortunately, many of these setbacks are actuated by decisions or indecisions of other human beings.
These are the realities of the setting in which the Government of Anguilla must manage the issues impacting our island in 2018. As the older folks use to say we got it “coming and going”. But, this is not an apology for probable failure — it is rather a call to action. Your Government needs your support to make the case that if given half a chance Anguilla will make it successfully through this period. We have been here before and our natural resilience as a people has brought us safely through with God’s grace. Our administering power needs to know this. We are not asking for a handout but rather a hand-up with dignity and respect. And we would rather do without than have to be treated as if we are “charlatans or fools”.
In 2009, in the wake of the global financial crisis I was moved to quote at that time President-elect Barack Obama as he spoke about the economic situation the United States was facing. He said:
“we‘ve got to provide a blood infusion to the patient right now to make sure that the patient is stabilized. And that means that we can’t worry about the deficit. We’ve got to make sure that the economic stimulus plan is large enough to get the economy moving”
Mr. Speaker, especially in this recovery year the strategy for the restoration and the recovery of our island is clear. What President Obama was suggesting is that sometimes we must ignore otherwise prudent policies or actions to achieve a positive long term objective. Anguilla will not survive this period by having a neatly balanced budget on paper. It will not survive by simply increasing taxation and cutting expenditure — it will require positive capital injection to build back stronger and better and by finding ways and means to increase economic activity. There can be no sound reasoning for further delay in getting the full impact of the generous grant support offered by the British Government in this recovery year. And it would be unconscionable to believe that our people are sufficiently recovered to take on the burden of further taxation in this period.
Mr. Speaker, I have come here to pass this Budget in our House of Assembly and I have been constantly asked the question over the last few days: “Did the British Government approve the Budget?” The very sound of this question suggests that the House of Assembly is a rubber stamp for a civil servant in the Foreign and Commonwealth Office. And indeed there was a threat in recent correspondence that this should be so.
In this context, Mr. Speaker, let me once again thank the highly qualified and capable staff in the Ministry of Finance; Permanent Secretaries; Heads of Departments; other technical officers; my colleagues Minister and other Members of Executive Council for their hard work and support in the preparation of the 2018 Budgetary Estimates. This is a purely Anguillian effort with the specialist resources of regional, international agencies and the UK Government on tap. Let us continue to maintain this relationship cast in mutual respect as we go forward together in this enterprise. Anguilla 2.0 – Green, Smart, Resilent and Inclusive.
Mr. Speaker, I beg to move!
