PHILIPSBURG–Water and electricity company GEBE, like other Government-owned companies, has requested that Government waive its annual concession fee of NAf. 5 million for this year, citing its dire financial circumstances post-Hurricane Irma.
While the company’s financial predicament is widely known, that announcement by Energy Affairs Minister Miklos Giterson about the request received from the company and other aspects in the budget caused several Members of Parliament to question how realistic are the figures in the budget. They queried whether the budget deficit is indeed the projected NAf. 197 million or more.
MP Ardwell Irion (National Alliance (NA)) was among those sceptical about the figures. He questioned in Monday’s plenary session on the draft 2018 budget how pending deletion of the GEBE and St. Maarten Harbour Group of Companies concessions would affect Government’s bottom line.
The inclusion of the full salaries for the vacant post of Tourism and Economic Affairs Minister and Minister Plenipotentiary in The Hague also caused Irion to question Government about the reliability of the budget figures.
Impose a hiring freeze in Government, MP Dr. Luc Mercelina urged Ministers as a way to slim down the gigantic personnel cost in the draft budget now and for future budgets. He called for tightening of border control “to stop the import of poverty in our country” as St. Maarten is already in financial difficulty.
The building of a new hospital for the country “should become an affair of the Kingdom of the Netherlands and not one of “a constituent state as St. Maarten” with an unbalanced budget.
MP Wycliffe Smith (St. Maarten Christian Party (SMCP)) said the budget would not win any stellar award. However, it gives Government room to generate much-needed revenue in a simple way. The repair of the electrical booms at Clem Labega Square to allow for drivers to pay again for parking was one way Smith put forward to put immediate cash into Government’s pocket.
Smith also asked the Council of Ministers whether Government is able to access the insurance settlements for hurricane damage to the old Government Administration Building, the Post Office and other damaged buildings.
He and other MPs will have to wait for the plenary sitting to resume today, Tuesday, at 9:00am to hear from Ministers.
The draft budget cannot fix any of the issues faced by the country post-Irma, said MP Frans Richardson (United St. Maarten Party (US Party)). Critically lacking as support to the budget is “a step-by-step plan” from Government on how the economy will be stimulated, incentives for businesses, especially small hotels, and how to bring life back to Philipsburg.
Richardson pointed out that there is money to be made from garbage dumped at the troublesome landfill. He shared the fees levied for trucks to access the French-side landfill. He issued a call to Government to consider the same for the Dutch side to end the dumping of French-side garbage on Pond Island.
MP Rolando Brison (US Party) called for a parliamentary inquiry, as provided for by the constitution, “to determine the truth” about the always-burning “Mount Dump.” The ultimate goal of the inquiry would be “to find a solution” to an ever-present health hazard. He again voiced his concern about the May 8 midnight deadline imposed on Parliament by the Dutch Government to pass the budget and called for a review of the “methodology” used by Ministers when dealing with kingdom partners.
Government’s plans to rebuild the Tax Office building, a vital link in Government’s revenue collection chain, was called for by MP Jurendy Doran (NA). He also queried the state of hurricane shelters and general Government preparedness for the annual hurricane season that is just weeks away.
MP Silveria Jacobs (NA) again voiced her concerns about the slow pace of recovery with the hurricane season looming. There is still no agreement with the Dutch Government on liquidity support for this year’s budget and that of coming years, she noted.
MP Chanel Brownbill (United Democrats) asked Finance Minister Mike Ferrier to outline whether the money from the Dutch recovery trust fund managed by the World Bank was sufficient to cover the huge deficit in the budget.
The draft budget is NAf. 197 million in the hole with income (from taxes and other fees) standing at NAf. 303.4 million and expenditures at NAf. 505.5 million.
The original budget deficit stood at NAf. 257 million. That amount was reduced to current NAf. 197 million. On the income side, Government has projected to collect NAf. 234.8 million in taxes, NAf. 12.9 million in permit fees, NAf. 32.5 million in concession fees, and NAf. 22. 9 million in other income.
The sitting on Monday commenced with Ministers giving Parliament an outline of some of their Ministries plans and programmes.
Source: The Daily Herald https://www.thedailyherald.sx/islands/76385-deficit-budget-meets-with-heavy-questions-from-mps
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