The recently-dissolved Anguilla House of Assembly voted for two salary reductions on May 8, the last sitting of the House.
The first was for a fifteen percent reduction with respect to elected members, ministers and special advisers with immediate effect. The second reduction is a proposed five percent from the salaries of public servants at a later date, if necessary.
The salary cuts were provided for in the Public Service Salaries Reduction Act, 2020, which was introduced in the House on May 8, by outgoing Premier Victor Banks. He explained that the passing of the Act did not mean that the salary reduction for public officers would be implemented before it was necessary.
Mr. Banks continued: “Mr. Speaker, since this pandemic a number of our citizens have been affected: over 3,000, almost 4,000 persons, …in the private sector – persons working in the hotels, in other private businesses and so forth. In addition, several businesses, both small and large, have been closed during the period of the lockdown as a result of the containment programme to stop the spread of the covid 19 disease. Self-employed persons have also been out of steady work including fishermen, farmers, trade persons and the like – hair-dressers, barbers and vendors. Indeed, Mr. Speaker, many small businesses may end up closed permanently.
“We also have to recognize that investors, both local and foreign have endured considerable losses to their investment. These people are legal residents and citizens who pay their taxes to the Government of Anguilla so that the Government can provide critical services to them and indeed all the people of Anguilla.”
He said the Government’s simple answer was to find ways and means to ease the burden and pain on such persons who were impacted by loss of jobs, business opportunities, steady work, investment and even loss of businesses as a whole. He stated that there was a need for social solidarity which required that all persons must be prepared to make some sacrifice to help those persons.
Mr. Banks further explained: “Mr. Speaker, I made that introduction to this Act because of our quest to find ways and means to fund the impacts of this pandemic on our people over the next nine months. It will include the support of 20.4 million dollars for persons who are unemployed, whether or not they have paid social security, because after six months in this situation we have to fill the gap…”
Speaking about the proposed salary cuts for public servants, he said that a very disturbing letter had been received from the staff associations. “That letter seems to indicate that public servants are in some way immune from making sacrifices,” he went on. “I have spoken to a good cross-section of the public service and so I know that these views in the letter do not represent the views of the majority of persons in the Anguilla Public Service. I commend all those persons who did not believe in the contents of the letter that was sent to the Deputy Governor – obviously for him to relay to the Executive Council…
“What is amazing is that while this letter from the associations suggests that their salaries should not be touched, they go on to tell us whose salaries and allowances should be cut, by how much and for how long.”
Mr. Banks added: “We have not determined whether or not that [public service salaries reduction] will happen and at what time. This Act, by being passed, does not say it will happen on the first of July, or the first of August, or that it will happen at all. But it says that this facility is in place given the uncertainty of the times and the unlikely event that we will be brought back to this Honourable House to carry out something like this, when we have already have in place the wherewithal to make it happen.”
The passing of the Act was supported by all members of the Government’s side of the House of Assembly. The Leader of the Opposition, Ms. Palmavon Webster, agreed that it must be a challenging situation for the Premier and the Government. She observed that “even in the last days, this administration listens to the representations that have been made.”
