So, where are the responsible adults in the room?
Over the last two or three years, we have been listening to the discussion and debate in Anguilla with respect to the Goods and Services Tax (GST). Much blame for and criticism of the British Government have formed part of that discussion but we, as Anguillians, need to step back and recognise that with each election cycle, we set up a democratically elected government whose role and responsibility it is to manage the affairs of our island.
As such, funding the operating cost of running the country is embedded in government’s responsibility. Who is responsible for the budgets that Anguilla has had over the years? Does the British Government make up a budget and give it to the government of Anguilla? I don’t think so.
From as far back as 2005, Anguilla’s budget was as low as $100 million and we have seen the progression in the size of the budget over the years – particularly in 2007 and 2008 when we moved to what was called ‘the Big Boys’ Budget’ which grew as high as $339 million by 2009. Who was responsible for that budgetary growth? Was it the British Government? I don’t think so.
Since 2009, the British Government has been pointing out Anguilla’s obvious budgetary shortfall, noting that Anguilla was unlikely to make the revenue that it proposed to run the operations of the country. The age-old conversation initiated by the British has always centred on how to address this issue, with two options guiding the conversation – cut expenditure so that you can cover your expenses with the revenue that you generate, or find some way to generate new revenue by raising existing taxes or introducing new ones.
During this period of discussion, we have seen the introduction of property tax and the interim stabilisation levy, plus an increase in a significant number of taxes over the years. However, what we have failed to see, is any meaningful reduction in the cost of running the operations of the country. To the contrary, what we have seen is an increase in the cost of running the country, thereby necessitating the need for even more taxes to cover government expenditure requirements.
With all the financial pressures facing Anguilla, the government ministers enjoy the highest salaries in the Eastern Caribbean. For example, and by contrast, whereas the Prime Minister in St Lucia earns approximately $12,000/month, our Premier earns $23,000 a month.
As responsible observers, the British Government analyses the fiscal position of its Overseas Territories – including Anguilla. Because of its experience in governance and management, the British Government is well-positioned to anticipate what might be challenges on the horizon for Anguilla, and make certain suggestions and/or recommendations to avert crises.
There has been a failure on the part of our political leaders to recognise that the real solution to Anguilla’s challenges is to re-engineer the entire public service, re-engineer the government processes, have a rethink of the many Boards that government has in place – whether they are justified, competent or top heavy – some consolidation of government departments and services, and a general weeding out of inefficiencies within the system.
In recent times, we have been faced with yet another challenge. Post Hurricane Irma, we accepted from the British Government, a 60 million pounds hurricane relief assistance package, and a 100 million EC in budgetary supplement because of the COVID-19 pandemic. Both of those grants certainly came with conditions. There is an old adage, he who pays the piper calls the tunes.
Let it be known that the same financial pressure that Anguilla is subjected to by the British Government, does not hold true for other Overseas Territories like Bermuda, Cayman Islands, or the Turks and Caicos Islands. That is because these territories are pro-active in managing their economies. Hence, there is no piper calling their tunes.
Anguilla and Anguillians, let us stop blaming the British Government for our taxes. Rather, let us be bold, brave and innovative like the fathers and mothers of the 1967 Anguilla Revolution.
