Cloud hangs over Grenada’s 5 percent levy

by Kishawn Thomas
Caribbean Net News Grenada Correspondent
Email: kishawn@caribbeannetnews.com

Friday,  December 30, 2005

ST GEORGE’S, Grenada:  The Grenada Trades Union Council (GTUC), the Grenada Chamber of Industry and Commerce (GCIC) and the government of Grenada met on Thursday to thrash out differences over the 5 percent National Reconstruction Levy due to be implemented on January 1, 2006.

The GTUC strongly opposes the decision, threatening a month of protest if government does not withdraw the levy by December 31.

Finance Minister Anthony Boatswain said Thursday’s meeting was centered on seeking the nation’s interest. “As far as the government and the Ministry of Finance is concerned, this move is in the interest of the country”. He said the GCIC has been very instructive and useful at the meeting. Minister Boatswain also commended the GCIC team for its mediating role in the process.

There will reportedly be a series of meetings, and there is no other official word on the issue. Caribbean Net News understands that this is a process but there is a deadline, which is the budget, due on January 20, 2006, and it will define when the final meeting on the issue must take place.

Minister Boatswain now has to take the matter to Cabinet where a decision will be made as to what will be the next move but whether or not the 5 percent levy will take effect from the 1st of January, Minister Boatswain said a statement will be made next Tuesday and he remains confident that no action will be taken by the TUC on December 31.

The GCIC is playing an important mediating role in this process. President Nigel John who was also present at the meeting said major progress would be the fact that both parties have come together for a second meeting.

“Indeed we have agreed that the Chamber will continue to play a mediating role in that we would receive revised proposals by the government and counter proposals or agreements/disagreements to the government proposals by the Trades Union Council.  We have our own proposals as far as what the Chamber would like to see by the 11th of January.”

President of the GTUC Madonna Harford said the GTUC is willing and ready to continue with its discussions and make the sacrifices that are deemed necessary in the country's rebuilding and developmental process.

“What is on the table now the government has to decide on Tuesday whether they are going to maybe have a stay on the implementation date. We’re recommending one month, so therefore in the meantime we could hold with the three sectors (GCIC, the government of Grenada and the GTUC) and come up with some concrete or alternative ways of raising revenue.”

The GTUC has decided to put off its planned December 31 action, at least for now, until they hear what the Minister has to say when he presents the government's decision on January 3. And on January 7, the GTUC will hold a special convention on government’s decision.

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