To: Hon. Victor Banks, Premier, Government of Anguilla
From very early on in the Coronavirus outbreak it was evident that this pandemic would not solely be a health crisis but also an economic one. Our economy’s vulnerability to external shocks rendered it the first victim with closures, laid-off workers and the almost immediate crippling of our main industry. In an ever-evolving state of affairs where borders, whether opened or closed, require immediate internal assessment, any viable economic plan must include 3 phases:
- Immediate relief;
- Post-pandemic relief and;
- Sustainable safeguarding measures to be implemented to strengthen the economy against similar shocks in the future
The Anguilla Progressive Movement believes that this is the time for creative solutions and despite our size, we can still lead the region in producing economic solutions that will not only carry us through this tough period but also create the foundation for strong economic safeguards in the future .
Every economic stimulus idea in the wake of this pandemic will need to be cyclical, consistently feeding into the holistic plan for moving forward so no one is left behind. The APM intends to publish such plans for the benefit of all Anguillians and hopes that the Government of Anguilla will adopt its initiatives.
Below are our suggestions for a multi-million dollar immediate relief plan:
- $1000 EC disbursements to individuals – Utilise the Social Security Unemployment Benefit to distribute to the unemployed with disbursements starting at lOOO XCD for individuals and increasing to meet family needs.
2. Reduce government spending
a. 20% reduction in Ministers’ salaries for 3 months.
b. 5% reduction in salaries of Special Assistants for 3 months.
c. 20% reduction in salaries of nominated members for 3 months.
d. 3-month cessation of all non-essential government allowances including but not limited to
i. Gas
ii. Vehicular Maintenance
iii. House of Assembly Allowances
3. Suspend Interim Stabilization Levy for 3 months. A benefit to local commerce especially SMEs (small to medium-sized enterprises)
- Suspend of “Gas Tax” – for 3 to 6-month. The suspension must be immediately reflected in the price reflected at gas stations.
5. Encourage Public-Private Partnership (PPP)
a. Introduce a Tax Credit for government -related business expenditure which will be redeemable in 2021 to all businesses that commit to paying a month or more of salary to employees;
b. Join with non-profit organisations including the Red Cross and the Chamber of Commerce to create a National Food Bank to encourage community building and collective assistance;
c. Implement a payment plan structure for all government-related business expenses (e.g business licences) and introduce a 3- month waiver period for businesses that demonstrate their inability to pay government-related business expenses to alleviate and manage the financial burden on businesses during this time.
6. 30% Reduction in Water Bill for 3 months to encourage and maintain proper hygienic practices. Devise a 6 month “No Cut” relief plan for water and electricity companies which includes a post relief payment plan.
7. Remove Duties On Essential Goods – Reduce duties and implement price control on essential goods: prescription and non-prescription medication, basic goods (rice, flour, water, etc.) and cleaning supplies.
8. $SO-Mill io n Dollar Fund – negotiate with the British government to provide a Matching Grant to Anguilla’s $25M surplus (as reported by the Government of Anguilla in December 2019). Together, this 50 million dollar fund will be utilized to:
a. Purchase Protective gear for doctors, nurses, EMT and other medical support staff;
b. Provide a funding safety net to subsidize medical costs for COVID -19 related care for persons over 65, under 16, and uninsured personnel;
c. nan event of O cases or excess by May/June this money will then be reverted to a post-COVID -19 economic stimulus package and;
d. Limited coupon plan for elders over 70.
9. Provide Immediate Access to Medical Support – Liaise with British and regional leaders (OECS, CARICOM) to provide immediate access to medical support in the event of widespread outbreak in Anguilla.
10. Mandate NCBA to revisit its moratorium policy- mandate the government owned institution, National Commercial Bank of Anguilla (NCBA), to revisit its moratorium policy to be more inclusive. Exclusion of clients with a limited adverse credit history would sink these loan owners further into debt rather than maintaining the status quo thus providing assistance to all loan owners. Encourage Republic Bank (RBTT) to offer the same policy to its customers.
11. Buy Local Incentives – Encourage the local supply chain to buy local produce as much as possible to safeguard the local economy:
a. Reducing water bills for assistance to local farmers for 3-6 months;
b. Put in place a marketing programme through the Department of Agriculture and the Department of Fisheries to facilitate supply and demand;
c. In the absence of hotel and restaurant demand, encourage merchants to purchase local produce, fish products, meats and poultry and import excess supply to assist persons within the local agricultural industry.
d. Assist local farmers with building their capacity to support the local market (Agricultural Policy). An assessment of capacity to be undertaken by the Ministry of Agriculture to determine the feasibility of this measure.
12. More Data, Better Connectivity – No Increased Cost – Encourage the telecommunications companies to offer increased telephone data and home internet offerings, with no cost increase, to facilitate greater access to the internet in order to aid with e-learning and ‘work from home’ initiatives
Thank you for your kind attention.
Ellis Lorenzo Webster
Leader, Anguilla Progressive Movement
