Grenada’s Finance Minister says TUC alternative cannot replace the five percent levy

Finance Minister
Anthony Boatswain

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

Wednesday,  January 11, 2006

ST. GEORGE’S, Grenada: The Ministry of Finance has issued a press release to further clarify the intricacies of the 5% levy.

According to the release, the ministry feels that there are numerous miscalculations about the National Reconstruction Levy. A meeting has been scheduled for Wednesday, January 11 with other stakeholders on the proposed five percent as to whether or not it will be implemented and when. 

Finance Minister Anthony Boatswain said over the next few days individuals within the Finance Ministry will visit Grenadians educating and informing them on the necessity and the reason why they are being asked to contribute towards the country’s reconstruction efforts.

“As you are aware a meeting has been planned for Wednesday without the social partners, but it is our (government's) understanding that the TUC has taken a position to start mobilising its workers and they have already indicated that they have no contribution to make towards the meeting on Wednesday,” said the Finance Minister.

Minister Boatswain said he is left to wonder if it makes any sense meeting with the TUC on Wednesday. The Minister indicated that because they government has an obligation to meet with the other social partners that meeting will surely take place. He said he sees no benefits from the TUC attending that meeting since they have already indicated their position.

According to the Finance Minister the government is willing to be flexible, not by withdrawing the entire implementation of the reconstruction levy but with regard to making changes to accommodate workers who might be seriously affected by the levy. 

Minister Boatswain said the recommendations made by the TUC cannot be considered as alternatives, but it can be considered as complimentary. Boatswain noted that one must realise that for 2006 the financing gap is over 70 million dollars and the levy alone he said will contribute no more than 9 million dollars therefore it means that the country has 61 million dollars more to raise. 

Minister Boatswain noted that the Act establishing the levy provides for additional accountability and transparency. “One: The funds will go into a special account in the consolidated fund. Two: no monies will be withdrawn unless we (government) see the project to which these funds will be applied. Thirdly: The act also makes provision for quarterly reporting on the use of the funds to parliament,” said Minister Boatswain.

It was reported by Mr. Boatswain that anyone who wants to query as to how the monies are collected and how much is collected on a monthly basis and whether or not it is used on a monthly or quarterly basis they have access to that information. 

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