It appears that one of the hurdles to Anguilla overcoming some, if not all, of its public sector financial difficulties, lies with the Framework for Fiscal Responsibility or Sustainability, as it may eventually be restyled, and the hesitancy of the Government to sign it. The FFR is a highly technical document and one which severely challenges the comprehension of the man on the street and even, to some extent, other persons in the community with an appreciable understanding of financial and economic jargon. Anguilla is the only Overseas Territory that has not signed on to the FFR and it begs the question, why?
Although the intended partnership policy has been published on the Government’s website, and there has been much talk about it, it does not appear that the public is sufficiently cognisant of its provisions. What may have been useful to this process of public understanding, is some sort of analysis of the main issues involved to simplify the proposed agreement. For instance, one of the stipulations has to do with the need for the British Government’s approval of an investment ceiling of 15 million dollars. It has only now been understood that this only applies to public sector projects and not private sector investment where a developer might wish to embark on a tourism project, for example.
It is said that the British and the Anguilla Governments are still discussing the policy and may be close to an agreement, but yet this appears to be long in coming. Meanwhile, we have entered the month of March without a British Government-approved 2013 budget for Anguilla, and the end of April is just around the corner by which time the run-over period will run out. Obviously, some action has to be taken, before then, on reaching agreement on the FFR which signing is key to the approval of the budget. Without an approved budget in place, the Government runs the risk of a financial shutdown which would further deepen the island’s fiscal and economic woes.
There are indications that the British Government may be willing to assist Anguilla with some financial capital for public sector investment projects, and probably might even allow some borrowing from third party sources.It is understandable that the framework safeguarding such processes must be of such a standard that there would be no room for error regarding financial management and accountability. At the end of January, the British Government sent an emissary to Anguilla in the person of Tim Colley, Deputy Director of the Overseas Territories Directorate, who said he had not come to talk, but to listen to the views of the people on a wide spectrum of issues. One of them was the FFR which would assist Anguilla in getting access to funding and investment.
On that matter, he told this newspaper: “The immediate issue on our plate is resolving the issue of agreeing on a set of principles for good financial management. I think that these are principles which everybody should be able to agree with very quickly. This is about Anguilla being able to send out a signal to potential investors, and the outside world, that this is a well-run administration; that there is due process; no tolerance of corruption; and that decisions are made in a regular democratic way in support of the community. UK Ministers have decided that it is important not to be any further delay in agreeing the FFR here in Anguilla…It is absolutely time for the Government of Anguilla to agree. All the Overseas Territories agreed in November to put in place a framework for the sound management of public finances. I hope that the Government of Anguilla will be able to act in line with that commitment and to agree this very quickly.” That is about the latest we have heard about the FFR which still appears to be an elusive matter.
This week the Chief Minister’s Office released a letter it wrote on December 14, 2012, to Mark Simmonds, the Minister for the Overseas Territories, in connection with the FFR, Anguilla’s need for UK capital grant assistance, and obtaining funding from third party sources. The Chief Minister said its release was to dispel the notionthat his Government was not doing anything about the FFR, and he blamed the UK Government for not responding to his letter.
If his long letter was in fact brushed aside, could it be a reaction to the Government’s failure to reach agreement on the FFR and the repetition of matters already discussed in detail? At the same time, however, it is conceded that the Anguilla Government reserves the right to express disagreement on matters it thinks are not in the best interest of the island. But as it extends its hand for badly-needed assistance, attention must be paid to the need for compromise and good faith rather than confrontation and constant bickering. It is not clear what the difference is between the application of the FFR to Anguilla on one hand, and on the other hand to the rest of the Overseas Territories.
Minister Edison Baird, one of the Anguilla Government’s most moderate member, and who is conversant with financial and economic matters, has called for the signing of the FFR. He had this to say last week: “It is a good document. It will ensure the absence of corruption. It will ensure that projects are professionally evaluated and it will ensure that we get value for money. So we need to go ahead and sign the Framework for Fiscal Responsibility, and my understanding is that we are near agreement. We must simply make one final attempt to reach agreement with the British Government in respect to the Framework for Fiscal Responsibility. The British Government has said ‘we are ready but you, too, have to do your part.’ It is a partnership. They have done their part and we now need to our part.”
Whatever or whoever is holding up agreement on the FFR, it is certainly time for the matter to be concluded between the British and the Anguilla Governments. With its 2013 budget not yet approved by the FCO, Anguilla is in a limbo situation and cannot continue like this much longer, and this is only part of the island’s fiscal and economic dilemma.
