Dear Editor,
First of all: I am not an expert in anything.
It seems like the people are misrepresented by their officials. The voices of mistrust are echoed by the citizens of the country. Tourism has brought millions of dollars over the years, but mismanagement and misappropriation have led the country into financial crisis. Tourism is the only hope for the country and its people. For a long time, each and everyone are fascinated by the number of motor vehicles as a driven force to economic growth and prosperity, but it has been proven differently.
Unemployment is on the rise, the cost of living is extremely high, and dollarization over-run the national currency (the guilder). Speaking of currency! What’s happening with the Antillean guilder these days? The United States dollar is slowly taking over the national guilder, a process called dollarization. As a result, huge increase in food prices, the cost of living is out of control, and many workers have been laid off. Many businesses are closing. There’s a huge increase in the national debt figure. In future this could lead to currency devaluation.
When new notes go into circulation, two important elements are considered: security reason and the old notes are worn out. This will lead to a sharp increase in prices and inflation will be on the rise. We are now into the hurricane season. All who survived Irma must give thanks to the “Almighty”. To those in authority: A lot of mistakes were made during Hurricane Irma. We must be vigilant this time around. This country may once again find itself on the world stage. Was the 550 million enough to cover the cost of destruction? How was this estimate carried out?
Before Hurricane Irma struck St. Maarten, the country had a huge balance of payments deficit. In economics term: the country didn’t have enough United States currency in reserve to back its guilder currency in circulation at the time. When this happens, a country has to borrow money to correct the deficit and correct its reserve problem. This could be one of the reasons for the IMF rescue, and the amount was considered a loan. Economics played an important role in this situation. The country could have gotten financial assistance for the devastation without a loan. It could approach a different institution at the World Bank.
IMF lends money to correct a country’s deficit problem and sells US currencies to country in need of dollars, not to fix roofs. All trading currencies of the world are measured against the United States dollar. If we want a strong guilder currency, we must keep US dollars in reserve, Do not let too much of it out of the country. Buying and selling currency can lead to an increase in revenues for the country. We are facing many global challenges: Problems such as migration issues, the problem of immigration, global trade and the environment. The country needs bilateral instead of unilateral trade. Not just importing cars, but by producing by-products to sell at home and overseas.
Put a limit on the number of migrants entering and control your intellectuals leaving. Find work for them to do in the country or this could lead to brain drain. Start introducing subsistence farming and help jump-start informal businesses. Fishing is not only a sport, but it’s also a way of life. Help fishermen market their catch. Make use of hilltop land to plant fruit trees and cultivate crops to help climate change. Let cruise lines and other vessels know we are serious about dumping garbage at sea. This will help keep the environment clean.
Cash flow is the life source of all businesses, including government: Control and manage all departments’ budget by doing so will help control and manage revenues. Stop selling property to foreign buyers; instead, have your people own them. The university here should be able to advise government on economics and financial issues affecting the country instead of bringing experts from abroad. It should introduce courses to help the politicians in Public Administration, Economics, and Costing methods. These are subjects needed to run the country.
Those with doctoral degrees should create a chair at the University of St. Martin and offer a professional diploma, bachelor, or a master degree in their chair of study. For example, someone with a doctor of philosophy (PhD) in Linguistics can create a bachelor degree in that field study at the university.
It is time for the people to do things that will benefit the community and the country.
Joseph Harvey
Dear Editor,
The draft budget for the country St. Maarten was received on November 15, 2018. This draft was subsequently retracted by the government on March 4, 2019, and a new draft budget was presented. As is required before we take any draft ordinance to a public meeting, Central Committee meetings need to be held. This was done for the draft budget on March 19, 20, 21, 22 and 25. In the Central Committee meetings many questions were posed and answers were given, which answers were also provided by the government in writing in its Report to Parliament.
The written questions and answers encompass a total of 106 pages and these were received on May 13. The public meeting on the budget started on May 14 with the Minister of Finance who, after a brief presentation, asked for time to be given for him to present an amendment to the budget.
These amendments or the so-called amended budget were received on May 28. The amendments can be grouped together in six major parts according to ministries. The major items in these amendments are under the Minister of Justice: namely, the support for the police department in St. Maarten, as well as the cost involved with keeping detainees longer in the Netherlands for the year 2019. These two items come up to a total of 6.6 million guilders.
We also have as an amendment the management cost of the garbage dump; we have the APS pension premium payment which needed to be increased again because of the delay in the implementation of the changes to the pension system.
The government also projects some savings, amongst which a cut in the legal and other expert advice; a contribution from the [social and health insurance provider – Ed.] SZV, due to incomplete information supplied. There is also calculated a reduction in the salaries of the members of parliament and these extra costs as well as the savings bring the budget total to 483,833,964 guilders.
That is the new amount of the budget for its expenditures as presented to the Parliament in the amended budget.
The capital account of government was also reduced to an amount of 93,542,513 guilders, and it should be noted that the loan ceiling for government, however, is at 40 million guilders.
In addition to that, the budget amendment includes the authorization to the Minister of Finance to execute what needs to be done as far as the loan for the Princess Juliana International Airport is concerned.
So, while indeed the amended budget is over 300 pages, so was the budget itself, which was received on March 4 and, as mentioned, was debated in several Central Committee meetings. It is not an “almost entirely new” budget!
To suggest therefore, as was done by the three members of parliament who submitted a letter for postponement, that MPs did not have enough time to peruse, study or comment on the budget, is not factual.
If Parliament wants to redesign the budget with total disregard for our financial limitations, for agreements, for laws, for conditions, etc., then, yes, not even the three weeks’ postponement requested will be enough.
Amendments by members of parliament could have been submitted on the draft budget since the budget was put in schedule for the public debate.
For example, if we look in the initial elucidation of the budget that we received from the government, it is mentioned that when the police function book is completed, a budget amendment will be drafted. Now that the police function book is completed, then this budget amendment, in my opinion, would have to follow.
In addition to that, because of the adjustments to the pension system, the budget amount had been reduced to reflect an implementation as of August 2019. Even this is no longer realistic, so this savings in premiums needs to be even further reduced.
Amendments will have to continue to come because managing our finances as a country is dependent on so many factors.
MPs might want to amend the budget and that is their full right, but the question is how much room do we actually have for any of this? Unless we want to throw everything in a tailspin and let the chips fall where they may. That would be irresponsible!
We can’t increase the expenditures budget randomly without increasing the revenue accounts. There is no shortage of ideas for new revenues, but how realistic are they at this time? For example, we have had many persons speak often about the so-called “sin taxes”, taxes on alcohol and tobacco, but these same revenues would require legislation before they can be put in the budget.
To come with “pie in the sky” type of ideas is not going to cut it as far as the 2019 budget is concerned. Rather than kicking the proverbial can down the road, we should be having a hard discussion on the situation we are in right now financially speaking, with a total reliance on Dutch assistance even though via loans, for our liquidity deficit. For many, including myself, this is a hard pill to swallow, but rather than play around it, let’s face it for what it is.
If we don’t want Dutch liquidity assistance, then what? Subsidized school boards, for example, are already facing hardships, the outstanding compensation for the police requiring another budget amendment; SZV to pay government because the 10 per cent deductible from civil servants was not done, just to mention a few things that impact or will impact the budget and our liquidity.
The budget is late anyhow, some have argued, and late it is, but why should we as a responsible Parliament further exacerbate this, when legally next year’s budget is due in September.
No one mentions the authorization in the budget amendment as presented by the government to make the loan agreement to PJIA possible. Are we saying that too can or must wait?
Sale of our UTS shares is no longer a priority either, it seems. Is this a deadline too we are willing to play brinkmanship with?
Is it just a coincidence that the letter for postponing the handling of the budget comes from three of the members of parliament who are scheduled to travel this weekend for Par Latino committee meetings?
Will these and other members of parliament be willing to forgo IPKO meetings in The Hague the week thereafter, and deal with the budget of the country?
Yes, this is the government’s proposal for a budget for the country and yes, the government must understand we are the parliament; we are elected, the ministers are appointed and yes we can amend and change the budget or any other law for that matter, but guess what?
Our political system is such that if Parliament and government can’t work together, each within their own sphere, nothing will get done. Let’s think about that while we study the 300+ pages draft budget 2019, in parliament since March 4, 2019.
Sarah Wescot–Williams MP
Dear Editor,
Earlier on I expressed already my concerns about this topic. See letters to the editor on April 5, 2019, called “Consider and decide asap” and April 12, 2019, called “Let us not wait until it’s too late”.
The reason to write again is the recent warning report from International Monetary Fund (IMF) June 7, 2019, about our currency. The report indicates – if you read well – that the solid connection between US dollar and NAf. (1=1.80) already is under pressure and that urgent additional measures are needed to keep it up this way. Part of the findings I have copied below for you to read. I have underscored the most important part related to this topic.
This topic is important to know for all who do not like to see prices increasing here on St. Maarten with 10-15 per cent soon related – among others – to: most of the imported goods (as food and medicine), the debts of existing (study) loans abroad, the cost of study abroad or traveling abroad. This is the consequence if the solid connection between US dollar and NAf. cannot be kept anymore (devaluation).
Here some extracts of the findings of IMF cited.
“Curaçao is facing the fourth year of recession as its economy has been hit by spill-overs from the Venezuela crisis. The spill-overs are exposing long-standing structural challenges and weaknesses in public finances and contribute to external vulnerabilities. Curaçao’s ongoing recession since 2016 deepened in 2018 due to continued spill-overs from the crisis in Venezuela. GDP declined by an estimated 2¾ percent in 2018, bringing the cumulative contraction in the past 3 years to 5½ percent. Declines in refining, oil trans-shipment, and related services were the main contributors. The external current account deficit to nearly 29 percent of GDP and pushed up inflation. Historically strong trade linkages with Venezuela dropped sharply.
“The outlook is subject to significant downside risks – a permanent shutdown of the refinery would deepen the recession considerably and exert significant pressure on public finances via higher social spending. The inflow of undocumented Venezuelan immigrants is generating additional pressure on public finances.
“Central government debt increased from about 51 percent of GDP in 2016 to close to 55 percent of GDP in 2018. The authorities have elaborated plans to restore economic growth and improve public finances. As a result, the stock of government debt would increase to 62 percent of GDP by 2024. Reaching the authorities’ objective of a balanced budget by 2021 would require not only strong implementation of existing plans but also some additional measures. Whereas this gap could be partially filled by better revenue administration and stronger expenditure controls, new measures are likely to be needed.
“The large external current account deficit in Curaçao is a significant vulnerability and requires urgent attention. The deficit, together with excess liquidity in the banking system, poses risks for the Union’s reserves, which have declined from 3.8 to 3.5 months of projected imports of goods and services between December 2018 and mid-May 2019. The Central Bank of Curaçao and St. Maarten is considering options for addressing the excess liquidity and has requested IMF technical assistance in this area. Fiscal adjustment would help reduce the external current account deficit although a strong structural reform is required to increase exports and reduce the deficit more durably. It is important to take steps to bolster medium-term external sustainability. It is very important to follow through on economy-wide structural reforms to support potential growth and increase exports.”
(C) IMF: Main Conclusions of the IMF Staff Visit, June 7, 2019
Please, representatives of the people of St. Maarten, do not wait until it is too late. The solid connection between US dollar and NAf. can only be kept if the Curaçao government is able to act with implementation and execution soon of important changes to improve the balance. As said before in my previous letter: St. Maarten cannot do much about solving the problems Curaçao has and that makes us very dependent on how the government of Curaçao is willing and/or able to act soon. It is a huge challenge and one can wonder if Curaçao is able to fix this fast as needed.
If not then we face inevitably devaluation and the resulting price increases unless … the monetary union will be split up and St. Maarten goes its own way.
This asks for bringing this topic on the political agenda soon and asks for speedy decision-making.
Geert B. van der Leest
Dear Editor,
During my morning prayers I ask the Lord for help for the youth to develop their skills and talents. I also ask to give them a thirst and zeal for knowledge and learning. And pray that they may follow wise counsel, good leadership, inspiring company and godly discipline so that they may take their place in life and be a blessing to the communities in which they live.
And then, even though I do not know the details and likely do not want to know them, I read in the paper of June 8, 2019, about what initially sounded to be a marble fight between Doran and the Prime Minister. As I read further it seemed to be more personal and that the political platform and the little bit of a good name was again been messed up by politicians.
This is doing St. Maarten a disservice, and not doing anything to help with my quest to help lead the youth of the country in the right way. The simplest person could realize that that junk that Donald Trump is doing should not be acceptable in our politics.
Could not a phone call from the Governor be a deterrent to the back and forth immature bickering by who are supposed to be the political leaders of our country?
I was taught that if I don’t have anything good to say I should not say anything. That is why there was a lull in my letters to you. But I am not an ostrich so when I believe that certain things are for the better I pass them on to you.
I was on Aruba for a while and the consensus among the people who visited us during our Carnival was “We enjoyed the atmosphere in the Village, but too much nakedness on the road”. I also saw a good many examples on cell phones from Aruban revellers who took pictures to use as examples for their pieces. There are several persons who are involved in the Carnival development who can confirm that it is quite some time now that I have brought this to their attention.
Invoking a dress code would not be inventing the wheel because there are already laws in place concerning dressing in public. One does not have to change nor alter any law. All that has to be done is to relax the laws with conditions, when it is necessary during the Carnival season.
Russell A. Simmons
Dear Editor,
What is food safety? Food safety is the absence – or safe, acceptable levels – of hazards in food that may harm the health of consumers. Food-borne hazards can be microbiological, chemical or physical in nature and are often invisible to the plain eye: bacteria, viruses or pesticide residues are some examples.
Food safety has a critical role in assuring that food stays safe at every stage of the food chain – from production to harvest, processing, storage, distribution, all the way to preparation and consumption.
With an estimated 600 million cases of foodborne illnesses annually, unsafe food is a threat to human health and economies, disproportionally affecting vulnerable and marginalized people, especially women and children, populations affected by conflict, and migrants. An estimated three million people around the world – in developed and developing countries – die every year from food and waterborne disease.
Food is the starting point for our energy, our health and our well-being. We often take for granted that it is safe, but in an increasingly complex and interconnected world where food value chains are growing longer, standards and regulations are that much more important in keeping us safe.
The theme of this year’s Food Safety Day: “Food Safety, Everyone’s Business” invites us to recognize that food safety is everyone’s business. The way in which food is produced, stored, handled and consumed affects the safety of our food.
Complying with global food standards, establishing effective regulatory food control systems, including emergency preparedness and response; providing access to clean water; applying good agriculture practices (terrestrial, aquatic, livestock, horticulture); strengthening the use of food safety management systems by food business operators; and building capacities of consumers to make healthy food choices are some ways in which governments, international organizations, scientists, the private sector and civil society work to ensure food safety.
Food safety is key to achieving several of the Sustainable Development Goals and World Food Safety Day brings it into the spotlight to help prevent, detect and manage foodborne risks. Safe food contributes to economic prosperity, boosting agriculture, market access, tourism and sustainable development.
* Goal 1 – there is no food security without food safety. Ending hunger is about all people having access to safe, nutritious and sufficient food all year round.
* Goal 2 – Food safety has a direct impact on people’s health and nutritional intake. Foodborne diseases are preventable.
* Goal 3 – when countries strengthen their regulatory, scientific and technological capacities to ensure that food is safe and of the expected quality throughout the food chain, they move towards more sustainable patterns of food production and consumption.
* Goal 4 – a globalized world with annual food exports currently in excess of US $1.6 trillion and complex food systems demands international cooperation across sectors to ensure food is safe. Food safety is a shared responsibility among governments, food industries, producers and consumers.
Keeping food safe is a complex process that starts on the farm and ends with the consumer. All stages of the food chain, from production, harvest and storage to preparation and consumption, must be considered. The Food and Agriculture Organization of the United Nations (FAO) is the only international organization overseeing food safety along all aspects of the food chain.
Through a longstanding partnership, FAO and the World Health Organization (WHO) support global food safety and protect consumers’ health. FAO generally addresses food safety issues along the food chain during production and processing, while WHO typically oversees relationships with the public health sector.
Safeguarding food so that it is safe to eat does not stop with its purchase, though. At home, consumers have a part to play in making sure that what they eat remains safe.
Cognizant of the urgent need to raise awareness at all levels and to promote and facilitate actions for global food safety, the General Assembly of the UN decided in December 2018 to designate June 7 as World Food Safety Day.
International days are occasions to educate the public on issues of concern, to mobilize political will and resources to address global problems, and to celebrate and reinforce achievements of humanity. The existence of international days predates the establishment of the United Nations, but the UN has embraced them as a powerful advocacy tool.
Dr. Earl Best,
Inspector General, Ministry of Health VSA
