The Chief Minister’s Office in Anguilla has released to The Anguillian, for publication, a letter which Chief Minister Hubert Hughes wrote to the Minister for the Overseas Territories, Mark Simmonds, on December 14, 2012.
He told the newspaper on Wednesday (27th February) that he decided to release the letter because some persons were of the opinion that his Government was hindering the process of the FFR,but that in fact the UK Minister did not respond to his correspondence and the matters he raised therein. He repeated his view that the draft partnership policy, already agreed to by all the other Overseas Territories, was bad for Anguilla.
Mr. Hughes stated in his letter to the British Minister that, in principle, the AUM Administration he was leading as Chief Minister“has no difficulty with the desire of the UKG (UK Government) to see the OTs like Anguilla move towards a higher level of governance in terms of public expenditure and financial management.” He, however, stated “that the common view is that while a framework to replace the 2003 [Borrowing] Guidelines is desirable, how it is designed is of great importance and given Anguilla’s context it must avoid an anti-development bias”. He also said that, “Another common view is that the new framework ought to be anchored by more conventional solvency and adjustment ratios.” He indicated that the foregoing observations were feedback views his Government’s technical officers had received from three regional and extra-regional stakeholders.
Meanwhile in his letter, the Chief Minister, notwithstanding his own views on the FFR, which is still to be signed, asked the UK Government for a capital grant of EC$140 million to finance a number of public sector investment projects. The relevant paragraphs of his letter are as follows:
“Assuming that UKG capital grant assistance can again be assessed GOA (Government of Anguilla) is seeking a minimum of EC$140 million from the UKG in capital grant assistance over the period 2013-2015, focusing on the following areas: Ferry Port Development – Blowing Point Ferry Expansion (EC$60 million), Road Development (EC$40 million) and Social Development Infrastructure ($ EC40 million).” He stated that both a FCO Economic Report, and an IMF Report for Anguilla in 2011, “point to the need to improve access to Anguilla as a matter of urgency to regenerate economic activity” on the island.
The Chief Minister went on: “Improving the facilities at Blowing Point, which is the main port of entry for tourist arrival, is therefore essential. Similarly, the recent Value for Money study for roads highlighted the need for major investment to arrest the state of disrepair of the road network in The Valley. Of equal importance is the need for major investment in Social Development infrastructure, including schools, the hospital and community recreational centres.”
Chief Minister Hughes’ letter also mentioned the need for Anguilla to obtain funding assistance from other sources outside the United Kingdom. He wrote:
“It has often been stated that the GoA is not eligible for capital grants from ‘third party’ countries except in the case of certain ‘regional projects’. This issue was raised with Permanent Under-Secretary of State at the FCO in November 2011 and a response (attached) was received from the Governor’s Office in September 2012 which suggests that it is indeed possible for Anguilla as an OT to access bilateral funds from countries other than the UK.
“GoA is also inclined to support capital investment through the use of Public Private Partnership arrangements. A regional project is currently under way within the OECS, funded by the EIB (European Investment Bank), with the aim of enhancing public officials’ capacity to design and implement PPP projects in infrastructure, both at regional and country level. The Commonwealth is also undertaking a similar initiative. The framework which is to replace the 2003 borrowing guidelines will allow for the possibility of PPPs, something that wasn’t previously accepted.”
The Chief Minister’s letter referred to above is published elsewhere in this edition of The Anguillian as a public service.
