The Executive Council of the Government of Anguilla met on August 11, 2021. Among the decisions taken were the following extracts:
EX MIN 21/252 EX MEM 21/142 MEDIUM TERM ECONOMIC AND FISCAL PLAN (MTEFP) 2022 – 2024
Hon Parliamentary Secretary for Economic Development, Hon Special Ministerial Assistant to the Hon Minister for Social Development/ Education and Financial Specialist remained.
The Economic Development team presented to Council the 2022-2024 Medium Term Economic and Fiscal Plan (MTEFP). The paper outlines that the baseline projections within the 9-year fiscal framework have a positive cash balance, but the 2022 estimate is inadequate to cover amortization, resulting in a financing gap that impacts subsequent financial periods.
The financing gap is narrowed by the second and third programmatic stability and resilience building policy-based loans by the Caribbean Development Bank. The remaining financing needs are to be met from the credit facilities provided by the National Commercial Bank of Anguilla and the Eastern Caribbean Central Bank.
To improve medium-term planning the Government assesses the impact of all fiscal policies and decisions on expenditure, revenues and borrowing in the context of a MTEFP covering a period of at least three (3) years. The Framework for Fiscal Sustainability and Development (FFSD) requires the development and thereafter an annual update of the MTEFP. Government remains in non-compliance with the FFSD and therefore annually requires written approval from the Secretary of State of the United Kingdom Government before the MTEFP is finalized.
Government has agreed to set out measures to return to compliance with the debt sustainability targets by 2030, with a transitional provision to demonstrate the ability to reduce net debt-to-recurrent revenue to below 100% by 2025 and below 80% by 2030.
Council:
1) noted that UKG approval of the MTEFP is needed, but the 2022 Estimates if consistent with the MTEFP would not be required;
2) noted that a moderate recovery of the tourism industry is forecast, with an anticipated full return to pre Covid-19 levels by 2024. Notwithstanding that the industry partners anticipate a promising last quarter for 2021 and first quarter for 2022, there remains an element of uncertainty in forecasts, as bookings do not always equate to revenue, and therefore assumptions cannot be overly optimistic;
3) noted that the Hon Deputy Governor will discuss further work on the budgetary allocations for the 2022 Census;
4) noted that a review of the fiscal projections baseline shows a deficit for the years 2021 – 2024 and funding gaps of EC$25 million and EC$24 million in 2022 and 2023 respectively, that shall need to be accommodated by the government credit facilities. As it relates to Domain Name Registrations and reform of the Companies Act, the fees are harder to quantify and there may be some optimism as it relates to the potential revenues. The downside fiscal scenario forecasts a EC$27 million deficit for 2022 if tourist arrivals do not increase;
5) noted that for the 2021 outturn a EC$12 million deficit is projected, however, this is predicated on a higher tax to GDP return than Anguilla has had before, meaning there is a possibility of risk associated with the sum;
6) noted that an aspect of tax arrears recovery is built into the revenue projections although there is uncertainty with the recoverability of interest and penalties. A paper is to be presented to Council at a future date detailing what sums are deemed recoverable and proposing a sum to be written off;
7) noted that debt amortization repayment of the principal of historic debt is the key concern now as grace periods for repayment have expired;
8) noted that there are some key dates to be observed if the second tranche of the CDB policy based loan is to be drawn down in quarter 4 of 2021 and that the MTEFP should be submitted to the UKG for approval by August 16;
9) noted the new policies proposed to increase revenue, including, new revenue measures, changes to existing structures and GST. Revenue expenditure is expected to decrease because of reduced outlay in the response to COVID-19, expenditure controls, and less expenditure on social protection programmes and social contributions;
10) noted that the proposed fiscal and economic policies are key to meeting the MTEFP fiscal projections and must be implemented in a timely manner. The Companies Act legislation is to be prepared by the end of August 2021 and implemented soon thereafter. The Hon Deputy Governor will supervise the preparation of a Public Service resources and prioritization schedule of tasks to be completed, in order to achieve the Key-Medium Term Policy Measures;
11) agreed that departmental savings should not be used for departmental expenditure, but rather reserved as a contingency measure, as such new expenditure decisions had to be reviewed by Council. Incremental expenditure relating to the over 70’s medical costs should be removed from 2022;
12) approved the draft Medium-Term Economic and Fiscal Plan 2022 – 2024 subject to the redistribution of the GST expense and removal of the 2022 over 70’s medical costs that was used to defer the implementation of GST to July 1, 2022;
13) instructed the Ministry of Finance and Health to provide to the United Kingdom Government the Medium-Term Economic and Fiscal Plan 2022 – 2024 and the fiscal framework out to 2030 for consideration and approval; and
14) noted that if necessary, any policy changes or adjustments will be communicated to the Ministry of Economic Development for assessment and revision of the MTEFP.
Council authourised the issue of the Action Sheet before confirmation of the Minutes.
EX MIN 21/253 EX MEM 21/143 A BILL FOR THE LICENSING OF BUSINESSES
Hon Parliamentary Secretary for Economic Development, Hon Special Ministerial Assistant to the Hon Minister for Social Development/ Education and Financial Specialist remained.
The PS EDCITENR briefed Council. The legislation governing the issue of business licences is the Trades, Businesses, Occupations and Professions Licensing Act. The legislation is outdated and has several shortcomings, including the following: an individual (the Permanent Secretary, Commerce) is the licensing authority, there is no power of refusal once the application is duly completed and the fee is paid, there is no requirement to present documentation to support the application and there are limited powers of enforcement. To address these shortcomings and in preparation for new legislation, the Ministry imposed a moratorium on the licensing of businesses in March 2019.
The Ministry subsequently prepared a Policy for Licensing of Businesses and Transparency of Business Ownership, which set out the policy framework for the development of the new legislation. This Policy was approved by Executive Council in December 2020, as per Ex Min 20/522. The Bill for the Licensing of Businesses has been prepared in accordance with the approved policy and is presented to Executive Council for approval.
Council:
1) noted that the draft Bill includes:
a) Ministerial Orders;
b) the requirement for proof of qualifications for certain businesses;
c) the ability to extend, revoke, suspend, refuse or apply conditions to a licence;
d) a requirement for a licensee to disclose a change in position;
e) the reservation of industries for local enterprise. An exempt industry, such as fishing and farming, cannot also be reserved;
f) the requirement for a company to be formed where there is non-local ownership; and
g) the commencement date is October 1, 2021, but businesses will be given until January 1, 2023 to become compliant;
2) noted that the Board requires built in co-competence in order to properly regulate the specially skilled areas, as per section 8;
3) approved the Bill for the Licensing of Businesses, subject to the AG’s Chambers undertaking further work, to ascertain that it aligns with international law obligations and requirements in respect of the competence of the Board; and
4) instructed the AG’s Chambers to prepare the Bill for tabling at the next session of the House of Assembly.
EX MIN 21/254 EX MEM 21/144 BLUE ANGUILLA (BANG) TASK FORCE POSITION PAPER ON THE BLUE ECONOMY
Hon Parliamentary Secretary for Economic Development, Hon Special Ministerial Assistant to the Hon Minister for Social Development/ Education and Financial Specialist remained.
The Parliamentary Secretary and the PS, EDCITENR briefed Council. The Blue Anguilla (BANG) Task Force was established by the Ministry of EDCITENR, in February 2021. It is an inter-sectoral Task Force comprising representatives from various Government Ministries and Departments.
According to its Terms of Reference, the BANG Task Force was formed to harness economic growth opportunities for Anguilla from marine resources. The Task Force was specifically required to facilitate the collaborative development of Anguilla’s blue economy in the areas of offshore fishing, renewable energy and energy efficiency, transportation, waste management, climate change and tourism. The BANG Task Force developed a blue economy position paper with situation analysis, along with recommendations to Executive Council, regarding the steps Anguilla needs to take for development of the blue economy.
The Paper and the subsequent approval of the Implementation Plan and Ocean Governance Policy are proposed conditions under the Resilience Building Pillar of Policy Based Loans 2 and 3 from the Caribbean Development Bank, to provide revenue support to the Government of Anguilla.
Council:
1) noted that the SWOT analysis identifies where Anguilla desires to be positioned. The greatest weaknesses are resources and the legal and policy framework;
2) noted that the paper consolidates information, which is useful for capitalising on future regional opportunities and grant/funding applications, it also signals our commitment to development;
3) noted that it would be desirable to partner with an OT that has experience in this area; and
4) approved the Blue Anguilla (BANG) Task Force Position Paper on the Blue Economy.
EX MIN 21/256 EX MEM 21/146 AMENDMENT TO THE PUBLIC PROCUREMENT AND CONTRACT ADMINISTRATION LEGISLATION
Hon Parliamentary Secretary for Economic Development, Hon Special Ministerial Assistant to the Hon Minister for Social Development/ Education and Financial Specialist remained.
The Hon Premier briefed Council. After the consultation period and scheduled first reading of the Bill in the House of Assembly, the executive management staff at the Health Authority of Anguilla (HAA) shared information in relation to the procurement activities of the HAA. After consideration of this information, the Ministry proposes amendments to the Bill, to address the manner in which the HAA operates.
Council approved the following amendments to the Bill to amend the Public Procurement and Contract Administration Act:
1) a provision is to be inserted to provide for commencement of the legislation on October 1, 2021;
2) an allowance shall be made for procurements of food, as micro procurements up to a threshold of EC$10,000; and
3) the definition of “specified professional services” shall be amended to include Clinical Specialists.
Action: PS, FIN; PAS, FIN; HON, AG; HON, PREM
EX MIN 21/258 EX MEM 21/148 APPOINTMENT AND REMOVAL OF MEMBERS TO THE BOARD OF THE WATER CORPORATION OF ANGUILLA (WCA)
Hon Parliamentary Secretary for Economic Development, Hon Special Ministerial Assistant to the Hon Minister for Social Development/ Education and Financial Specialist remained.
Council:
1) noted the recommendations made in the paper, but same were not adopted in totality;
2) approved the removal of Ms Calla Gumbs and Ms Geraldine James from the Board with immediate effect, in accordance with Section 9(2) of the Water Corporation of Anguilla Act R.S.A c W4;
3) approved the appointment of the following persons, for the stated periods, to be members of the Board of the WCA, with effect from August 11, 2021, in accordance with Section 5(1) of the Water Corporation of Anguilla Act R.S.A c W4, namely:
a) Mr Juan Richardson –2 years
b) Mr Victor Nickeo – 2 years
4) noted that all members appointed to the Board must complete Governance and Accountability certification and Public Financial Management certification training within three (3) months, with a body approved by MICUH&T, failure to comply will result in removal from the Board;
5) noted that WCA must inform MICUH&T three (3) months in advance of the expiry of any and all WCA Board member’s appointments or resignations of the WCA Board; and
6) further noted that the Hon Minister for Infrastructure must designate a Government representative to sit on the WCA Board.
EX MIN 21/259 EX MEM 21/149 AUTHORISATION OF AN OFFICER/PERSON TO REPRESENT THE INTEREST AND VOTE THE SHARES OF THE GOVERNMENT OF ANGUILLA AT THE SPECIAL MEETING OF THE SHAREHOLDERS AND THE ANNUAL GENERAL MEETING OF THE ANGUILLA ELECTRICITY COMPANY LTD (ANGLEC) TO BE HELD ON WEDNESDAY 18TH AUGUST 2021
Hon Parliamentary Secretary for Economic Development, Hon Special Ministerial Assistant to the Hon Minister for Social Development/ Education and Financial Specialist remained.
Council noted the following documents:
1) Ex Min 21/225 concerning the request for a Special Meeting;
2) letter from the PS, MICUH&T to ANGLEC requesting a meeting of the shareholders of ANGLEC, dated July 20, 2021;
3) Notice of a Special Meeting of the shareholders of ANGLEC and Annual General Meeting to be held on August 18, 2021, from the Corporate Secretary for ANGLEC, dated July 27, 2021;
4) draft letter of authorization to PS, MICUH&T from Hon Minister MICUH&T to vote the Government of Anguilla shares at the August 18, 2021 Special Meeting of ANGLEC shareholders and Annual General Meeting;
5) ANGLEC proxy form;
6) ANGLEC due Diligence form; and
7) CV’s.
Following discussion Council:
1) noted the recommendations in the paper, but the recommendations were not adopted in totality;
2) agreed to remove from the Board, the following members: Mr Evan Gumbs, Mr Juan Richardson and Mr Victor Nickeo;
3) agreed to appoint to the Board, in accordance with the By-Laws the following members: Mr Arthur Hodge, Mr Patrick Mardenborough and Ms Geraldine James;
4) noted that the other Board appointments would remain the same, so the new Board to be appointed at the AGM, would comprise the following persons:
a) Mr Jerome Roberts
b) Mr Derek Gumbs
c) Mr Jibri Klaren
d) Mr Cameron Lloyd
e) Ms Donna Gumbs
f) Dr Wycliffe Fahie
g) Mr Arthur Hodge
h) Mr Patrick Mardenborough
i) Ms Geraldine James
5) approved the proposed amendments to the By-Laws;
6) agreed the nomination (by proxy form) of Permanent Secretary MICUH&T;
7) agreed that PS MICUH&T should attend the Special Meeting of the shareholders of ANGLEC and the Annual General Meeting to be held on August 18, 2021; and
8) further agreed that PS MICUH&T is authorized to vote the shares of the Government of Anguilla in accordance with Executive Council’s directives.
Council authorised the issue of the action sheet before confirmation of the Minutes.
The Hon Minister for EDCITENR declared an interest, as his father is Mr Arthur Hodge, and he took no part in the deliberations or determination.
