The other day, during a photographic tour of some of the various public sector projects, being funded under the 60 million pounds of UK aid to Anguilla, a construction worker shouted: “Tell them the work will soon finish and we want more work”. Put to Governor Tim Foy, OBE, by The Anguillian newspaper, in an interview days later, he said he was now engaging the UK Government in further talks to obtain funding for additional projects for the overall development of Anguilla.
“My conversations with the United Kingdom have already been that, if I look to 2021, it is going to be an extremely challenging year,” he stated. “Our revenue position, in 2021, is probably not going to be much better than it was in 2020. I sincerely hope, and pray, that we get some opening of the tourism sector. What I really want to see is to encourage the United Kingdom to renew the current process of topping up revenues so that Anguilla can continue to spend wisely, all it does, in terms of health and education. I am encouraging the UK to balance that up with some capital spending so that we can continue to see activity in the construction sector. That is very important because a lot of the projects will begin to tail off into 2021 as many of the school projects will come to an end – and then, what will happen? I don’t want to see workers laid off, without jobs to go to. So, it is a mix of revenue support and capital support that will keep the construction industry working. If we can do that, it will be great.”
He went on: “That project activity has given a real stimulus to the economy. I am very keen that, as we look towards 2021, Anguilla will need further assistance because I don’t see Covid disappearing that quickly – I am afraid to say. So I will be looking to make sure that there is a continuation of the revenue support which allows Government to continue to function. And, as I said, to match that, as far as possible, with continued and expanded work on construction because it just keeps people working – and we get something out of it at the end. It is not just putting money into the Government. It is actually putting money into getting a piece of infrastructure that makes a difference to people’s lives. I will be working very hard, and I think there is a recognition in the United Kingdom that they have a responsibility to Anguilla and they will do their best to make sure it is delivered. Things are quite tight, and Britain itself is suffering, but we have responsibilities and have to deal with those.
Early Talks Between UK And Premier Webster
One of the other important things Governor Foy stressed was the need for early talks between Premier Dr. Ellis Webster and UK officials regarding Anguilla’s financial situation and the recent UK Memorandum signed by former Premier, Mr. Victor Banks.
“For me, the key thing is that I get the bilateral funding relationship right into 2021,” Governor Foy explained. “I have been talking very closely with Premier Webster about beginning those conversations with the UK early because we know our budget support finishes at the end of December. The need won’t go away, then, so we need the conversations to begin in a matter of weeks – and I know Premier Webster is anxious to do so, and I know that UK would welcome those early conversations as well.”
Pressed further about those discussions, the Governor continued: “I know Dr. Webster is in contact all the time with the Foreign Office and he clearly has a good relationship with the Minister – and other people in the Overseas Territories Directorate – so I know a conversation is happening now. It has been very frank and there have been three sets of [funding] partnerships. I expect that both parties will look to finalise any arrangements well before the end of the year because Anguilla needs to have the certainty and that is important. I have impressed upon the UK the importance of Anguilla having early certainty for 2021 because, as I said, it will not be an easy year.”
Asked about the possibility of further talks later this year at the Annual Ministerial Conference, the Governor replied: “There will be the normal Joint Ministerial Meeting and I think the plan is to do that virtually this year. But the important thing is that the discussions that go on between Premier Webster and the Foreign Office happen all the time. It is as very good relationship and so people are working all the time and working out all the arrangements – so it won’t be one meeting around the table where everybody says ‘that’s it’. People are working up the ideas right now for approval by British Government Ministers and approval by Ministers in Anguilla. It is more like a dialogue than talks in the formal sense, and that dialogue is happening all the time. People in the United Kingdom are well aware of the challenges that Anguilla faces and they want to provide the best possible assistance that they can; and I know Dr. Webster will know what he wants as well.”
Changes to the UK MOU
A matter on which there has been some discussions, following the election of the new Government of Anguilla, was the UK MOU the Government found on coming to office. Asked about that matter and requests for a review by Premier Webster, Governor Foy responded:
“The talks went very well. There was a review of the Memorandum of Understanding within the first week of Dr. Webster taking the reins. He met a couple of requests regarding certain deadlines to be extended, recognising that his administration is new. The British Government agreed to those and the arrangements are working very well. So far, we have had three flows of cash in respect of revenue shortfalls in April, May and June. I expect that in the next couple of weeks the requests for July and the August shortfalls will be dealt with.”
The MOU which had various attached conditions, including taxation, provided for the provision of one million EC dollars from the UK Government in budgetary support to Anguilla. It takes care of revenue shortfalls which the island experienced as a result of Covid-19.
The Governor was asked for his comments in view of the overall financial situation in Anguilla, and the need for a 2021 Budget to be drawn up and approved.
“The British Government will find it a lot easier to look at providing support if there isn’t an agreed Budget before the end of 2020.”
Aside from UK aid, Governor Foy was asked whether it would be possible for the Government of Anguilla, although heavily in debt, to seek financial assistance from other sources if needs be.
He replied: “Anguilla can always make a request to the United Kingdom to borrow. I think what I know is that the UK Government, and the Anguilla Government, would always look at the affordability of borrowing. The current position is that – and I speak regularly to Dr. Webster about this – is that our debt levels are already high. Do we really want to increase those debts levels further?
“Part of the United Kingdom’s revenue support grant was in recognition of the fact that Anguilla was already heavily-indebted; and to borrowing to balance the Budget in 2020 would not necessarily be in the long-term interest in Anguilla. That is because we just would be saddling the taxpayer here with evermore debt, and that’s not we want. We need to have revenue and our taxes going for medical and health, policing and public services – not to paying off debt because our revenues have collapsed.
“It is a very clear argument with the British Government – and they accepted it readily – that borrowing is not really the thing Anguilla needs. The British Government wants Anguilla’s economy to be vibrant and successful. The last thing it wants to see is Anguilla very, very heavily-indebted because that would have a huge drag on the economy. So the answer is: yes, I am sure they would look at borrowing if [the Anguilla Government] wish to make that suggestion; but I think that, equally, they will just be as happy to provide a sufficient grant to remove the necessity to borrow if that was to come.”
Soft Opening of Anguilla’s Tourism Industry
The Governor has responsibility for the security of Anguilla, and this is one of the matters he discusses in Executive Council in relation to Covid-19. He was asked to comment on the Government’s decision to have a soft opening of the tourism industry – the mainstay of the island’s economy.
“These are very difficult issues and my take on working with this administration is to get the balance right. We need to have some opening of the tourism sector because people need the jobs and the investors need to have some security. The investors have made big investments here and it is not just the hotels. It is the people who run the ferry services. They are all badly affected by this. I think the really important thing is that we have good protocols in place, and I commend the Government for the work that they have done on that. I know that the protocols start with being very clear where people are coming from; they have to be tested before they arrive; tested when they arrive; they will have to stay in certain locations; the way in which they interact with hotel or villa workers. It is all clearly worked out. I think it is good and people have really worked hard. The proof the pudding will be in the eating. But I have to say it is not for the want of innovative thinking – and a lot of hard work – that we are in a position where, hopefully, in a few months’ time, at the most, we will be able to welcome visitors back to Anguilla. That, for me, is so critical because tourism is our blood and the veins. Without that, we will shrivel. So we have to carefully and methodically look at it, with an eye on the risks. What I have seen happening in the last four, five, six months, is Anguilla’s ability to minimise that risk by having a really effective testing capability in place; and the ability to manage the risk if we are unfortunate to get another case. That ability is being strongly developed… There is a point where you have to put your toe in the -water and I think people have done it really well here.”
Working with the new Anguilla Government
Governor Foy has spent the past two years and a half working with the former Anguilla United Front Administration and he is continuing his duties with the newly-elected Anguilla Progressive Movement Administration. He was asked about the transition from one Government to another which he recently experienced. He replied:
“I have always said the same thing and that is: it is the Governor’s job to work with the elected Government irrespective of who they are – and to make sure that the public service delivers on behalf of the people of Anguilla, the intentions of the elected Government.
“I have to say the transition has been very smooth. Dr. Webster has a very clear sense of where he wants to go. He has a very good Ministerial Team around him. It has been very good on both sides. I think I can say that I enjoy working with Dr. Webster and his team, and I think they enjoy working with us as well. We managed to progress business very swiftly without and acrimony at all – which is good, and that’s what the people of Anguilla deserve and what they have a right to. I think the days of the Governor fighting with the Premier – you don’t need them. It wasn’t necessary and shouldn’t happen.”
Governor Foy added: “Dr. Webster’s story is quite amazing. He is a very smart man. He went to university very early. Started in dentistry and then decided he wanted to go into medicine. He has been very successful and has come back to serve his country – and we get on very well together.”
The Governor is due to complete his tenure of office in Anguilla at the end of the year, but is full speed ahead at work. “There are lots to do,” he stated. “We have come a long way, but the challenges in 2021 are going to be serious. They are going to be big; and now is not the time for me to slacken off. Now is the time for me to be working hand-in-hand with the Government so that we get the very best we can for Anguilla in 2021 and beyond. People come and go, but the relationship [between Anguilla and the UK] is a long-term one. If we get the arrangements right, we can make sure that Anguilla is in a possible good place to be able to rebound, while things pick up. We must always try to prevent damage to the economy. That’s why the open-up is really important. We need to keep our investors here. They are good investors who have been with us a long time. So, hopefully, we can get those arrangements right and then we can bounce off and get on the upward curve.”
