Inside finance - Volume 6, Issue 4, July - September 2010

FinanceINSIDE

Volume 6, Issue 4, July - September 2010

GRENADA

A Publication of the Ministry of Finance, Planning, Economy, Energy & Cooperatives

Now available online at www.gov.gd/documents.html and click on documents newsletters

The Chairmanship of the Monetary Council of the Eastern Caribbean Central Bank (ECCB) was thhanded over to Minister V. Nazim Burke, on Friday July 16 , 2010, when the Monetary Council held

thits 67 Meeting, here in Grenada at the Grenada Grand Beach Resort.

The meeting witnessed the coming together of the Ministers of Finance of the Eastern Caribbean to discuss the Governor's report on monetary and credit conditions of the region. The meeting also received an updated on the Eight Point Stabilisation and Growth Programme and reports from the various sub-committees on economic reforms and financial issues.

MINISTER BURKE HOLDS CHAIR OF ECCB MONETARY COUNCIL

“... the engine room of the Public Service...”

• Read the text of the Minister's speech upon accepting

the Chairmanship on page 3.

“... the engine room of the Public Service...”2 INSIDE FinanceFinance

Just browsing the internet This being the case does not mean that we have to give mediocre one day, I came upon this performance and do the job 'just because it's a pay check at the interesting article entitled end of the month'. It may not be the best job situation there is or “Five Ways to Put Pride, the job of one's dreams, but when employed by someone, it is Energy and Ownership only fair that you deliver what you are asked to do 100%. It Into Your Job.” The article makes no sense going on the job in a lack luster manner, with a

was written by someone poor attitude and constantly complaining about the situation, called Kristin Robertson. with the thinking that you are just here for 'awhile'. You may be

What really got my attention surprised to find that 'awhile' could turn out to be the rest of your was the story which the author working life. In the long run, a negative work attitude will only

told as a preface to the article. It serve to hurt you because your performance record will remain goes as follows: with you for life. You took the job, so make the best of it! It is the

responsibility of each worker, from the highest to the lowest “The scene was a late Friday night at paid, to take pride in their job and do it to the best of their

O'Hare airport in Chicago. The flight was delayed and all the abilities.passengers were crabby. As they entered the aircraft, passengers were greeted by the first class flight attendant, who The following are some tips on how one can take pride in their had a personality that filled the aircraft! "Welcome aboard, and jobs. These tips were taken from the article by Kristin how are you doing tonight?" he would ask each person as they Robertson.boarded. When a young mother with a crying toddler came on, he greeted the young girl with, "Honey, it's your lucky day -- you 1. Decide to give it 110%: What your mother told you is true: if a get to fly on my airplane tonight!" As the aircraft pulled away job is worth doing, it is worth doing right. Do it to the best of from the gate, he continued his banter during the safety briefing your ability. Own your job output and put your good name on it. announcements, making jokes and wisecracks, and You don't have to love your boss, have the perfect co-workers or encouraging the other flight attendants to do the same.” the best working conditions to take pride in your work and go the

extra mile to ensure high quality results. Notice, however, that The author was a passenger on that flight and explained that the we are talking 110%, not 200% percent. There are many over-experience got him or her thinking how remarkable this achieving executives who have exhausted themselves trying to attendant was to have such 'positive spirit' in such challenging be all things to all people in a difficult environment. Pace times. A time when flight attendants and other customer- yourself, set priorities, identify the areas that you can exert the oriented employees of the airline industry tend to be de- most influence and delegate or defer the rest.motivated, demoralized and tired, being faced with salary cuts, longer working hours, limited room for advancement, terrorism 2. Exert control over what you can: You may not have control in the skies, and the list goes on. All this explained the author, over all aspects of your job, but you can identify areas that you made the attendant's performance that night, “unusual and do control and focus on them. The flight attendant had control noteworthy.” The most noticeable thing about the attendant was on the airplane he was on, and he focused on how he could the pride, energy, and ownership he put into his job. influence the atmosphere of that environment. You may not be

able to influence the performance targets the Vice President How many of us are proud or satisfied with what we do? Is the sets, for example, but if you are a manager or director, you do job you are doing now what you aspired for when you were have control over how you communicate them to your work younger? Is this where you want to be? I am sure you always group. Concentrate on supporting your group so they can do the hear people say “I am just hanging onto this job until I get best work possible. Then try to let go of the need to control what something better to do”. What does this mean really, since most you cannot.of them have been there for years (too many to count)? A major complaint in the education system is that the 'young' teachers 3. Make it fun: We spend too much time at work not to have a use teaching as a stepping stone to get where they want to be and little fun at it! The flight attendant customized his safety so are not dedicated to the job. Therefore, they do not give of announcements, using his own talents, to make it amusing. their best. Although not everyone is a comedian, we each have a unique

approach to humour and having fun. How can you give your co-Why is this so? Is it because we cannot find what we want? Or do workers a smile and make their day? How can you lighten up not know what we want? Or is it that what we want is not your workplace?available at the point in time? A recent survey in the USA revealed that because of the current economic situation many 4. Speak and act positively toward co-workers: If you change people today feel stuck and unappreciated in their jobs, because your attitude and behaviour, often other people will change, too. options are just not available. Sometimes people get locked into a negative relationship with a

Am I Proud of My Job?

Continues on pg. 6

Hon. V. Nazim Burke

3INSIDE FinanceFinance“... the engine room of the Public Service...”

Continues on pg. 4

consequence of these realities, the ECCU is projected to under-perform for a second consecutive year with a decline of 2.3 per cent being projected. It is our fervent hope that the Currency Union will emerge from recession next year when it is forecast to grow by 1.8 per cent.

Without doubt, the past year was one of the most challenging for our region. In this regard, I must express my profound admiration of the Heads of Government of the Currency Union and the Ministers of Finance for the manner in which they have collaborated. During the year, the OECS Authority and ECCB Monetary Council met in joint sessions to address some very challenging issues and to assess progress on the implementation of Eight Point Stabilisation and Growth Programme.

On this note, Ladies and Gentlemen, I wish to applaud Prime Minister Ralph Gonsalves for his strong leadership of these joint sessions.

The official signing of the Eight Point Stabilization and Growth Programme in December 2009 and the signing of the

I am delighted to extend a special welcome to our visiting Treaty of Basseterre establishing the OECS Economic Union delegations. Welcome to the Spice, the Isle of Spice! We are are our key responses to the global economic situation. They honoured to have you here in Grenada. are the platform upon which the economic future of our region

now rests. We must now work them, so they, can in turn work I congratulate my predecessor, Honourable Roosevelt Skerrit, for us. Prime Minister and Minister of Finance of Dominica, on his successful chairmanship during a very difficult period for the With respect to financial stability, the Bank will closely Eastern Caribbean Currency Union (ECCU). monitor threats to financial sector stability. In particular, it

will develop and implement resolution tools to address weak This morning, I am honoured and humbled to assume the banks. As the regulator of commercial banks, the Eastern chairmanship of the Monetary Council for the next year. I am Caribbean Central Bank has played and continues to play a conscious of the many challenges which confront us but very critical role in the stability of the financial system within confident that, as a Currency Union, we will achieve our goals. the ECCU. Nevertheless, the ECCB, by itself, cannot assure

the stability of the financial system. Governments and As a Council, we work diligently to implement all elements of financial institutions must also play their part. Governments the Eight Point Stabilisation and Growth Programme but our top have a responsibility to regulate the non-bank financial sector priorities will be maintaining financial stability and resuming since the chain is as strong as it weakest link. By non-bank, I economic growth. I will return to these priorities shortly. refer to insurance companies and credit unions among others.

Ladies and Gentlemen, the leading economic indicators for the For that reason, the implementation of single regulatory units major economies continue to improve suggesting that the global across the Currency Union must remain a very high priority economic recovery is gaining some momentum. That said, we this year. note that the recovery is slow and accompanied by a great deal of uncertainty. Consequenttly, tourist arrivals and private capital In that regard, the commitment of the Government of Grenada inflows are likely to remain below pre-crisis levels in the near- is now being demonstrated by the enactment of modern term. This situation is having a dampening effect on government financial legislation and significantly better supervision of the revenue and is keeping unemployment at elevated levels. As a non-bank financial sector through the Grenada Authority for

THE HONOURABLE V. NAZIM BURKE, MINISTER FOR FINANCE

REMARKS BY THE INCOMING CHAIRMAN OF THE MONETARY COUNCIL OF THE ECCB

GRENADA 16 July 2010

4 INSIDE FinanceFinance “... the engine room of the Public Service...”

Minister's Note cont'd from pg. 3

the Regulation of Financial Institutions (GARFIN). Ladies and Gentlemen, I am pleased to note that GARFIN is earning respect both at home and abroad and is now considered as a model in the Eastern Caribbean Currency Union.

In the past year, Grenada has passed ECCU harmonized legislation in money transfer services, payment systems and insurance.

Since its inception as a statutory body in 2007, GARFIN has made remarkable strides. It has:

· recruited qualified and competent staff from both the public and private sectors;

· embarked on intensive staff training given the dynamic nature of the financial sector; and

· strengthened its original legislation to ensure its powers to effectively supervize through the provision of rights to demand information and conduct inspections.

We are all painfully aware of the current hardships being experienced by policyholders of British American and CLICO insurance companies as a consequence of CL Financial's difficulties. With the implementation of the new Insurance Act in March of this year, GARFIN has commenced on-site inspections of insurance companies. Furthermore, GARFIN has requested and received submissions from most insurance companies on the establishment of statutory funds to ensure that all liabilities in Grenada are covered by fully pledged assets.

As I said in January of this year when I presented the 2010 Budget, insurance companies that do business in Grenada must maintain assets in Grenada to cover their liabilities. This means that the practice by some companies of simply collecting premiums, investing them abroad while maintaining little or no assets where the premiums are collected is not permitted. This provision is necessary to ensure insurance company is not left naked and helpless if the parent company runs into difficulty. GARFIN has also commenced supervision of pension funds under the new Insurance Act.

In the past year, GARFIN undertook on-site inspections of all the major credit unions and will complete inspection of all credit unions this year. Working closely with the Co-operative Credit Union League, it has facilitated the merger of some smaller credit unions with the three major credit unions. This is an important step towards consolidation, stronger regulation, and ultimately, consumer protection in respect of financial cooperatives. The new Cooperative Societies Bill is currently before Parliament and will be passed by August of this year.

I have taken time to share Grenada's recent experience because it is noteworthy. More importantly, I urge fellow members of Council to stay aggressive with the implementation of these the reforms and to draw lessons and support from our recent efforts in Grenada.

Colleagues, Ladies and Gentlemen, the high rates of unemployment across the Currency Union are a source of grave concern for all of us. If we are to effectively tackle high


unemployment and reduce poverty, our economies must return to growth in the shortest possible time.

Our already high debt levels across the Currency Union mean that we cannot borrow our way out of this recession. If we had any doubts, we just need to look at the recent experience of Greece and other European countries which have over-borrowed trying to spend their way out of recession. In recent weeks, we have seen developed countries in USA and Europe announce measures to cut their budget deficits. This means that developed countries could find themselves in a pattern of low growth or worse in the next several years. The implication is clear. We must ensure our fiscal houses are in order through resolute fiscal consolidation and strong economic management.

So how will we resume growth?

We must tap into the areas of global growth for which may have a comparative advantage. These areas include: tourism, health and wellness services, agribusiness and ICT. We can pursue these investments through the private sector and public-private partnerships.

We must continue to mobilize resources from the international community on the best possible terms. We must also engage traditional and non-traditional bilateral sources of funding to support our public sector investment programmes.

Within the Currency Union, ECCB will seek to improve the operational efficiency of the Regional Government Securities Market (RGSM) and support the participation of a more diversified investor base while also encouraging greater participation of member states on the market.

As we seek to resume growth, we must not merely work harder. We must work smarter; accomplishing more with less. This imperative applies to each of us - individuals, companies and Governments.

All of my comments thus far have been directed at what the Bank and the Governments must do but our citizens also have a key role to play in our recovery.

Ladies and Gentlemen, every country that has experienced sustained growth and prosperity has done so through innovation and higher levels of productivity and entrepreneurship. Based on this experience, our current efforts at improving the business climate must be accompanied by improved work attitudes and a versatile and flexible labour force capable of delivering world class services.

Ladies and Gentlemen, it is reforms combined with strategic investments in our human capital and infrastructure that will position our economies to take maximum advantage of the upswing in the global economy. These are the factors that are likely to make a significant difference to how fast our economies grow and how sustained that growth will be.



FINANCIAL Tip

co-worker or manager because of personality differences, Simple self-care can include taking time to walk outside at miscommunications, annoying personal habits or past lunchtime, talking to a good friend and having an active affronts. If you find yourself in this position and the other social life. Self-care might also include massages, regular person is basically an OK person - not a bully and not acting exercise, and, ironically, community service. Community illegally or unethically - try this experiment for two weeks and service can broaden your perspective by getting you out of see if it makes a difference: Speak and act only positively to your normal environment and can fulfill the human need to that person. Compliment the person when it is warranted. serve others.Notice the good things they do. Support them in their job. Do not speak disparagingly about that person to anyone, By applying these pointers it is believed one's attitude to work including your spouse or partner. If you are able to do this for will change and this in turn will change the entire work just two weeks, it is highly likely that you will notice that the atmosphere. other person responds in kind, and that you have repaired the situation. The result: a happier, less stressed YOU. And as Kristin said in the article: “take a lesson from the flight

attendant, and you may find that the job you thought was less 5. Practice extreme self-care: If you are in a high-stress job, than perfect is actually pretty darn good,” after all.take good care of yourself. Self-care is highly individual and dependent on life stage, financial resources and time So set high standards for yourself, smile, be proud of what constraints. Seek ways to manage your stress and balance you do, even pretend that you like what you are doing, if you your energies in ways that make sense for your situation. have too; who knows, you may eventually do!

Editor's Note cont'd from pg. 2

- Give yourself a pocket money allowance. Your spending should not exceed your allowance. After the money is gone, it's gone.

- Never enter a store without a predetermined spending limit.- Pay cash. Interest and fees can quickly transform that great bargain into an

overpriced extravagance.- Avoid impulse purchases.

Staying with reforms, I must also state that our current drive in EC dollar, despite the challenges that confront us, and in the area of Public Sector Modernization is essential not just from support of the development aims of the Currency Union. the standpoint of fiscal consolidation but also in enhancing our competitiveness as small states. Ladies and Gentlemen, I now accept the chairmanship of the

ECCB Monetary Council with honour and humility. I look th forward to the support of my fellow Council members, the Ladies and Gentlemen, this year marks the 34 anniversary of

Board of Directors, Management and staff of the Bank as we the pegging of the EC dollar to the US dollar at the rate of pursue financial stability and growth and work to transform EC$2.70 to US$1.00; an achievement which we should not take our economies for the benefit of our people. lightly and should never take for granted.

I thank you all.As the incoming chairman of the Monetary Council, I wish to express the Council's commitment to protect the integrity of the


(Pictures in article compliments ECCB)


Ms. Nita Thacker, head of an but the containment of capital International Monetary Fund (IMF) staff spending kept overall outlays in line with the

mission to Grenada, issued the following statement budget. Higher than expected grants from donors, with the today at the conclusion of the mission: associated adjustments of the IMF targets, also gave the authorities

extra fiscal space to undertake some countercyclical policies. As “An IMF team visited St. George's during September 20–28 to agreed under the program, no new external loans were contracted to conduct discussions on the first review of the government's ensure that the debt burden does not increase and quarterly budget economic program that is supported by the IMF's Extended Credit reviews with line ministries helped to ensure that spending plans Facility (ECF) approved by the Fund's Executive Board on April 2, matched available resources. Domestic arrears have also declined.2010. The focus of the mission was to assess performance under the

Significant progress was also made on meeting the structural benchmarks under the program. Significant progress was made in streamlining the government's bank accounts and the process towards establishing a Single Treasury Account is well underway. The Grenada Authority for the Regulation of Financial Institutions

program at end-June 2010 and review recent economic developments. The mission held discussions with the Minister of Finance Hon. V. Nazim Burke and other cabinet ministers, senior officials of the Ministry of Finance, heads of statutory bodies, representatives from the political opposition, labor unions, and the financial sector as well as the business community. The mission

(GARFIN) is working closely with insurance companies to would like to thank the authorities, the technical staff at ministries complete the establishment of statutory funds as required under the and the private sector for their excellent cooperation.Insurance Act of 2009, and is currently conducting on-site inspections of these entities to ensure a healthy financial sector.

The authorities have updated the draft letter of intent that outlines policy responses to the challenges posed by the difficult economic environment and high debt level. The authorities remain firmly committed to the program's policies and objectives, which aim at fiscal consolidation to reduce the debt-to-revenue ratio and hence free up resources for priority spending, address the strains in the financial sector to ensure that the sector remains strong, and improve the business and investment climate to achieve broad-based economic growth, increase employment, and reduce poverty. However there are significant downside risks, given the still uncertain economic external environment. Efforts regarding expenditure and debt management, customs reform, and enhanced efficiency of social spending will help Grenada tide over these The authorities have made significant progress in implementing challenging times. Upon the team's return to Washington, it will their economic program. Based on the information received to date, prepare the necessary documentation for Executive Board all quantitative targets for end-June 2010 appear to have been met, consideration, expected to take place mid-November. Approval by despite a very difficult external and domestic environment. the Board will result in the disbursement of SDR 1.25million (about Revenue collections in the first half of 2010 were in line with US$1.89 million).”projections. Spending on goods and services was somewhat higher,

Statement by the IMF Mission to GrenadaSeptember 28, 2010

Ms. Nita ThackerMs. Nita Thacker

Ms. Nita Thacker, Hon. Nazim Burke and Mr. Timothy Antoine

EU, ECCB and CDB Representatives

Members of the IMF Team

the computer


The development of a Growth and The development of the Strategy will also Poverty Reduction Strategy (GPRS) for put Grenada in a better position to unlock Grenada went into 'high gear' on Monday funding from various development (September 6, 2010) when the National agencies.Assessment Team and Government representatives held a first briefing The time frame for the development of the session with representatives from the strategy is four (4) months. Caribbean Development Bank (CDB) and the Cultural Marketing Community The strategy is being developed with (Caribbean) Ltd., the consultants support from the CDB. contracted to develop the strategy.

The need for the development of the Minister of Finance in his 2010 Budget GPRS is an outcome of the results of the Speech, placed Government in a better Country Poverty Assessment Survey and position to more effectively target its the assessment of the national social response to the poor and vulnerable in the safety nets programmes which were country. completed in 2009. These results pointed

to the fact that Grenada's poverty rate The aim of the strategy is to transform increased by 5.6% between 1998 and Grenada's poverty landscape over the next 2008, even though Grenada has a wide few years by developing an action plan to range of safety nets programmes. This address the factors responsible for poverty revelation identified the need for and reduce the incidence of poverty in the Government to reassess the current safety country. net initiatives and, according to the

GROWTH AND POVERTY REDUCTION STRATEGY IN THE MAKING FOR GRENADA

GROWTH AND POVERTY REDUCTION STRATEGY IN THE MAKING FOR GRENADA

An application was for employmentA programme was a TV show I guess I'll stick to my pad and paper A cursor used profanity And the memory in my headA keyboard was a piano! I hear nobody's been killed in a computer crash

But when it happens they wish they were dead!Memory was something that you lost with ageA CD was a bank account! UnknownAnd if you had a broken disk,It would hurt when you found out!

Compress was something you did to garbage Not something you did to a fileAnd if you unzipped anything in public You'd be in jail for awhile!

Log on was adding wood to a fireHard drive was a long trip on the road A mouse pad was where a mouse livedAnd a backup happened to your commode!

Cut - you did with a pocket knifePaste you did with glueA web was a spider's homeAnd a virus was the flu!

There was life before

the computerthe computer

Consultants with CDB Representative

Deputy Permanent Secretary Mike Sylvester and other participants at meeting

9

was celebrated throughout the world on Thursday September 16th 2010.

For the first time ever, the National Ozone Unit (NOU), of the Energy Division of the Ministry of Finance, Grenada, organized a week of activities to commemorate World Ozone Day.

Under the theme, “Ozone Layer Protection: Governance and Compliance at their best”, this year's activities began with the erection of a banner, displaying the theme, on September 1st, at the front of the NOU's Office on the Carenage, St. George's. This was done as a means of creating awareness of World Ozone Day.

During the week of activities, which ran from September 13th – 16th,

a special ceremony was held at the Wesley College to recognize young Jonissa Auguste, a student of the school, who created the painting that was used for the calendar that was produced by Ozone Officers of the English Speaking Caribbean as a regional public awareness activity. Jonissa received a cheque for EC$500.00 and a certificate of recognition.

At the school, the NOU also took the opportunity to make two presentations to the school body. They were presented with:

1) A billboard with the painting created by

daily radio quizzes were held on two local radio stations.

On Monday 13th September,

201201

World World

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Jonissa. This billboard was unveiled at the school following the assembly; and

2) Poster size paintings of art – given to each classroom and the staffroom.

Mr. Smith, the Ozone Officer of the NOU, used the opportunity to remind the students and teachers of the need to protect the Ozone Layer and the effects to human health by destruction of the ozone layer. He advised them on protecting themselves from the damaging effects of the ozone layer depletion.

Another major activity of the week was the launch of a scholarship programme in which ten (10) students received full two year scholarships to attend the T.A. Marryshow Community College in order to complete the Refrigeration and Air-conditioning programme there. The scholarship package includes financial assistance to cover all of the associated costs for the two year programme, as well as toolkits for practical purposes. Funding for the scholarship program is provided by the United Nations Environment Programme (UNEP), through the NOU, as part of Grenada's Terminal Phase-out Management Plan (TPMP) for Chlorofluorocarbons (CFCs). The tool kits were provided by the Grenada Refrigeration, Air-conditioning and Ventilating Association (GRAVA). The total cost of the scholarship programme is approximately EC$15,000.00.

In addition to the presentation of scholarship packages, presentations were also made to TAMCC. The Grenada Refrigeration, Air-c o n d i t i o n i n g a n d Ve n t i l a t i n g Association (GRAVA) presented TAMCC with a Recovery and Recycling machine for Mobile Air-conditioning Systems, valued at over US$5,000.00. This presentation was made by the President, Mr. Michael Mitchell. The National Ozone Unit

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presented TAMCC with a package of tools and equipment, valued at EC$3000.00, to be used to enhance their refrigeration and air-conditioning programme. This presentation was made by Mr. John Auguste, Senior Energy Officer at the Ministry of Finance.

Scholarship awardee, Denis Lyons, thanked the NOU and GRAVA on behalf of the ten awardees and pledged that they will take full advantage of the scholarship opportunity to enhance their ability, create opportunities for self employment, and contribute to the protection of the ozone layer.

The highlight of the week's activity was a Student March and Rally on September 16th. Approximately 250 students and teachers from secondary schools throughout Grenada converged in the capital city, St. George's, and marched through the streets carrying banners and waving placards displaying ozone protection messages. This attracted several onlookers and persons were seen lining the streets to view the march and to give support to the participants.

The march terminated with Student Rally at the Grenada National Stadium. At the rally the students were addressed by:

• National Ozone Officer, Mr. Leslie Smith;

• Schools Activities Co-ordinator from the Ministry of Education, Mrs. Michelle Warrick;

• M i n i s t e r f o r E n v i r o n m e n t , Honourable Michael Church, who delivered the feature address; and

• A student at the Beacon High School, Ms. Isis Richards, who read the address sent by the United Nations Secretary General, Mr. Ban Ki moon.

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Other highlights of the rally included:

• The presentation of prizes to the winners of the World Ozone Day radio quiz; and

• The rendition of an original environmental song by the students of the Wesley College, much to the delight of the student audience.


Riddle

&

Have a laugh...

FunFacts Did U Know?

Fun Facts

Quotations

The problem is at your endOne of Microsoft's finest technicans was drafted and sent to boot camp. At the rifle range, he was given some instructions, a rifle, and bullets. He fired several shots at the target. The report came from the target area that all attempts had completely missed the target.

The technician looked at his rifle, and then at the target. He looked at the rifle again, and then at the target again. He put his finger over the end of the rifle barrel and squeezed the trigger with his other hand. The end of his finger was blown off, whereupon he yelled toward the target area, "It's leaving here just fine, the trouble must be at your end!"

A walking economyThis guy is walking with his friend, who happens to be a psychologist. He says to this friend, "I'm a walking economy. "The friend asks, "How so?"

"My hair line is in recession, my stomach is a victim of inflation, and both of these together are putting me into a deep depression!"

- You can draw me, fire me or fill me in. What am I?Answer: A Blank

- Something very extraordinary happened on the 6th of May, 1978 at 12:34 a.m. Can you figure out what it is?Answer: The time could be written as 12:34 5/6/78

- Which is correct: '9 and 6 is 14' or '9 and 6 are 14'?Answer: 9 plus six is always 15

• That persons who provide public entertainment must be registered for VAT whether or not they make EC$120,000 per annum.

• That July 11th 2010 was designated as World Population Day by the United Nations.

• That October is designated Financial Information Month in the Eastern Caribbean Currency Union (ECCU) member countries.

-you spend your money. Money mistakes can be corrected, but time is gone forever.” Unknown

- “An apology is a good way to have the last word.” Unknown

“How you spend your time is more important than how

-made mostly from a special blend of cotton and linen. In 1932, when a shortage of cash occurred in Tenino, Washington, USA, notes were made out of wood for a brief period.

- According to a study by the Economic Research Service, 27% of all food production in Western nations ends up in garbage cans. Yet, 1.2 billion people are underfed - the same number of people who are overweight.

Money notes are not made from paper, they are

14 INSIDE FinanceFinance “... the engine room of the Public Service...”

NOTICE

he Minister of Finance, Planning, Economy, Energy& Cooperatives, Permanent Secretary,

Management and Staff extend condolences to who have lost their

loved ones recently.the family and friends of all those

“Good men must die, but death cannot kill their names”God's Peace Be With Their Souls.

T

In keeping with the VAT Act, persons who provide public entertainment must be registered for VAT whether or not they make EC$120,000 per annum.

All promoters of public entertainment, proprietors of places where entertainment is carried out and persons who from time to time may carry out or conduct public entertainment activities, are advised that they must be registered with the VAT Unit before commencing these activities.

For further information and clarity regarding what is expected of promoters of public entertainment, please contact the VAT Unit on telephone number (435-6945/46) or our Hotline 435-9085.

REGISTRATION FOR THE CONDUCT OF PUBLIC ENTERTAINMENT

ACTIVITIES


FinanceFinanceFFiinnaanncceeINSIDE What’s Been What’s Been HappeningHappening

GRENADA LEADS THE WAY CELEBRATION OF WORLD IN ADVOCATING ASSISTANCE FOR POPULATION DAY

HAITI IN MEETING ITS OBLIGATIONS UNDER THE MONTREAL PROTOCOL The Central Statistical Office (CSO), Ministry of Finance, in

collaboration with United Nations Population Fund At the conclusion of the thirtieth (30th) Open-ended Working (UNFPA), commemorated World Population Day on Group Meeting of the Montreal Protocol, held in Geneva, Tuesday July 20th, 2010 in a ceremony held at the Ministry of Switzerland from June 14th – 18th, 2010, Grenada - represented Finance's Conference Room.by the Project Officer in the National Ozone Unit, Energy Division, Ministry of Finance, Mr. Leslie Smith - introduced a July 11th 2010 was designated as World Population Day by draft decision to allow the Montreal Protocol community to the United Nations. Due to mitigating circumstances, the provide support to Haiti. Upon discussion, the meeting agreed to CSO was unable to celebrate on that day. However, given the advance the draft decision for adoption at the Twenty-second importance of the day, a decision was made to commemorate (22nd) Meeting of the Parties to the Montreal Protocol in the day on Tuesday July 20th. Kampala, Uganda from November 8th – 12th, 2010.

Recognizing the extraordinary difficulties faced by Haiti as a result of the earthquake that struck Haiti on January 12th, 2010, the draft decision requests that the member countries that have signed on to the Montreal Protocol (the Parties); the Multilateral Fund and its Executive Committee for the implementation of the Montreal Protocol; and other relevant organizations, such as the Implementation Committee; provide assistance and support to Haiti in meeting its obligations under the Montreal Protocol.

The proposal received widespread support from the delegates of the Group of Latin America and the Caribbean (GRULAC), Mauritius, Nigeria, United States of America (USA), Canada, Brazil, Trinidad and Tobago and Japan.

At the meeting, Grenada also led the way in requesting that the Ozone Secretariat prepare an information document to

This year's theme for World Population Day was “Everyone look at the possibility of upgrading the office of Executive

Counts”. It placed focus on the 2010 round of censuses and Secretary of the Ozone Secretariat to the level of United

underscored the importance of population data for Nations (UN) Assistant Secretary-General. As agreed by the

development.Parties, Co-chair Martin Diaz of Canada requested that the Secretariat prepare the document for consideration by the

The CSO viewed the celebration of World Population Day as next meeting of the Parties in November 2010.an excellent opportunity to promote why reliable, disaggregated data is so crucial to progress and encourage

Grenada's Minister of the Environment, Foreign Trade and people to participate in the upcoming census and other data

Export Development, the Hon. Michael Church, was also collection efforts, and as such, used the opportunity to start

present at the meeting. Minister Church attended in his sensitizing the public about Grenada's 2011 Census.

capacity as President, Bureau of Parties to the Montreal Protocol.

Continues on pg 16

Participants at World Population Day Celebrations

Minister's Visit to Project Co-ordinating Unit“... the engine room of the Public Service...”16 INSIDE FinanceFinanceContinues on pg. 17

The survey conducted in July was done as a regional initiative under the leadership of the Organisation of Eastern Caribbean States (OECS) Secretariat in collaboration with

At the ceremony presentations were made by Mr. Halim Brizan, Acting Head of CSO, Ms. Nandy Noel, Youth Representative; Ms. Isiuwa Iyahene, UNFPA Assistant

each Member State and the International Labour Organisation (ILO).

The decision to administer this survey at that time was a response to the persistent lack of information on employment and other labour-related issues. Given its importance, governments in the OECS and in particular the Government of Grenada, committed themselves into investing more into Labour Market Information (LMI). In order to enhance the sustainability of these investments, the OECS, in collaboration with the ILO, developed a strategic approach to respond to the structural challenges and the high development costs of establishing Labour Market Information Systems (LMIS).

Representative; and Mr. Mike Sylvester, Deputy Permanent In addition, the need for labour market information has Secretary. They all underscored the importance of accurate become increasingly urgent due to the impact of the global data and population data. economic and financial crisis. As a result Governments, the

OECS Secretariat and the ILO have combined efforts to As part of the ceremony the CSO also launched an Art establish the foundation of a sustainable LMIS and more Competition, reflecting the theme of World Population Day, specifically a sustainable Labour Force Survey (LFS) in the among the primary and secondary school aged population. OECS countries.Cultural presentations were done by the Presentation Boy's Choir. In Grenada, this OECS Labour Force Survey (LFS) was

undertaken by the Central Statistical Office (CSO) and LABOUR FORCE SURVEY FOR GRENADA sought to collect socio-economic data from persons in

randomly selected households across the island.The household Labour Force Survey (LFS) was re-established in Grenada with the conduct of the survey during The basic tool used for the data collection (survey) was a the month of July 2010. questionnaire administered through face-to-face interviews.

The questionnaire consisted of five parts, namely:A Labour Force Survey is a survey that obtains data on a country's population, on persons fifteen (15) years and over, 1. Demographic characteristics, education and who may be in the Labour Force (employed and training;unemployed) or classified as Economically NOT active (i.e. 2. Economic activity, employment status, industry and not in the Labour Force). The survey covers only the civilian occupation;non-institutional population of the country.

Continued from pg 15

Head table at World Population Day Celebrations

PBC Choir at World Population Day Celebrations

Members of the Statistics Department


Continues on pg. 18

Continued from pg. 16

3. Information on those employed; recommendations on the draft strategies that were developed to achieve the Montreal Protocol phase-out targets. Grenada 4. Information on those unemployed; being a party to the Montreal Protocol since 1993, is 5. Information on those who are NOT economically obligated to phase-out all remaining consumption of Ozone active.Depleting Substances in the country.

The information provided by the respondents is now being NEW ACCOUNTANT GENERAL APPOINTED IN used to produce a picture of the activities of the entire target MINISTRY OF FINANCEpopulation (15 year and over) and produced several labour

market indicators some of which includes, labour force size, Mr. Ambrose Louis unemployment rate, levels of underemployment, employed Obike was appointed as by sector, employed by occupation, economically inactive the new Accountant population and reasons for economic inactivity, etc. This General in the Ministry survey was very comprehensive and will be able to furnish of Finance, effective all users with robust estimates on the various labour market August 1st, 2010.indicators.

M r . O b i k e , a n The results of the survey are currently being tabulated and Accountant and Banker will be available in the near future.by profession, brings a wealth of experience to NATIONAL CONSULTATION ON HYDRO this position. He has CHLOROFLUOROCARBON (HCFC) PHASE-OUT been employed with the MANAGEMENT PLAN (HPMP) FOR GRENADA.Ministry of Finance for

the past seven (7) years as Head of the Internal Audit and The National Ozone Unit of the Energy Division of the Verification Unit, having played a key role in the Ministry of Finance is required to develop a project with establishment of that Unit. Mr. Obike was also instrumental specific objectives and strategies for achieving the Montreal in helping to clear the backlog of Government Accounts and Protocol targets of: bringing the Accounts up-to-date. Mr. Obike has also been

involved in training in Government Accounting in Grenada - The establishment of baseline consumption for HCFC and in the region. refrigerants (R-22) on the average of total consumption for the year 2009 and 2010 The Ministry takes this opportunity to congratulate Mr.

Obike and formally welcome him in his new position. - A freeze in consumption of HCFC refrigerants (R-22) by 2013 GRENADA HOSTS 2ND REGIONAL WORKSHOP

ON SUSTAINABLE FINANCING & MANAGEMENT - And a 10% reduction in baseline consumption HCFC ON OECS MARINE ECOSYSTEMSrefrigerants (R-22) by the year 2015.

The Ministry of Finance in collaboration with the World In this regard, a survey was conducted by National Bank and the Nature Conservancy hosted the 2nd Regional Consultants, on behalf of the National Ozone Unit, to gather Workshop of the Sustainable Financing and Management of and analyze data within the Refrigeration and Air- OECS Marine Ecosystems Project from September 13 – 17, conditioning sector in Grenada. This data is of critical 2010. The Workshop was held at the Flamboyant Hotel. importance for the development of the project as stated above. The Sustainable Financing and Management of Eastern

Caribbean Marine Ecosystems Project is a regional project A draft project proposal was prepared by the lead consultant, undertaken by the Governments of Grenada, St. Lucia, St. Mr. John Telesford who was contracted by the United Kitts, St. Vincent, and Antigua. The project is funded by the Nations Environment Programme, Regional Office for Latin Global Environmental Facility (GEF), The Nature America and the Caribbean (UNEP, ROLAC). This draft Conservancy (TNC) and the German Development Bank proposal was presented at a National Consultation on (KFW).Thursday July 22, 2010 at the Public Workers Union Conference Room in Tanteen, St. George's. The objective of the project is to improve the management

effectiveness of existing and expanded protected area At the Consultation, stakeholders reviewed and discussed networks, across the Eastern Caribbean, through the the data that was acquired and provided comments and establishment of sustainable financing mechanisms. The

Mr. Ambrose Louis Obike



Continues on pg. 19

project will assist the five OECS countries to meet their The ECF is a three-year arrangement that has replaced the commitments under the Convention on Biological Diversity Poverty Reduction and Growth Facility (PRGF) in (CBD). These commitments include: Grenada. The government's key objectives in this new

programme are: ensuring fiscal and debt sustainability by placing the debt-to-GDP ratio on a firm downward track; • Establishing a system of protected areas or areas where reducing vulnerabilities in the financial system and special measures will be taken to conserve biological strengthening the supervision of the non-bank financial diversity;sector; generating high and sustainable growth through • Promoting the protection of ecosystems, natural habitat structural reforms that will encourage private sector-led and the maintenance of viable populations of species in growth; and reducing poverty by creating more effective natural surroundings; andsocial safety nets.

• Developing national strategies, plans or programmes for the conservation and sustainable use of biological

The IMF team was headed by Ms. Nita Thacker of the diversity.IMF's Western Hemisphere Department.

TAX APPEAL TRIBUNAL CLEARS BACKLOG OF While in Grenada the team held discussions with various APPEALS stakeholders in the public and private sectors, including:

the Minister of Finance and his team; other Government The Commissioners of the Income Tax Appeal Tribunal completed hearings on all outstanding appeals on Tuesday 07 September 2010, when they met at the Inland Revenue Conference Room of the Ministry of Finance.

Since its reconstitution in March 2009, the Tribunal has met sixteen (16) times, with the first case heard on September 22, 2009. Tuesday's hearing was the fourth (4th) case heard in the list of outstanding Appeals dating back to 2001. With the conclusion of this case, there are now no outstanding or unheard Appeals at this time.

The Tax Appeal Commissioners are:

Ms. Deborah St. Bernard - Chairperson

Mr. Cecil Edwards - Commissioner Ministers and senior public servants; the Leader of Her Mr. Fitzroy O'Neale - Commissioner Majesty's Opposition; representatives from the Grenada

Authority for the Regulation of Financial Institutions Mr. Joseph Bain - Commissioner(GARFIN); the Banker's Association; the Grenada Secretary to the Board is Ms. Rhona Andrew

Members of the public are reminded that in accordance with Section 89 of the Income Tax Act No. 36 of 1994, the Tribunal is established to receive objections and appeals from persons who are aggrieved by an assessment made by the Comptroller of Inland Revenue.

Members of the public are further reminded that in accordance with Section 107 of the Value Added Tax Act (VAT) of 2009, the Board is also responsible for receiving objections and appeals from aggrieved persons in relation to VAT assessments.

IMF CONDUCTS 1st REVIEW OF THE ECF

An IMF team visited Grenada from September 20th – 28th to Chamber of Industry of Commerce (GCIC); the Labour conduct the 1st (first) review of the Extended Credit Facility Unions; and the like. The text of the IMF's Report can be (ECF) which the IMF and Grenada entered into on April 2nd, found on page 7.2010.

IMF Team

IMF Team leader and Ministry of Finance Officials



BUDGET RETREAT WITH MINISTRIES AND recommendations for strengthening strategic budgeting in DEPARTMENTS Grenada in the short and medium term.

To jump start the 2011 budget process, the Budget Unit of the ENGAGEMENT WITH BUSINESS COMMUNITYMinistry of Finance held a one-day retreat with Ministers, Permanent Secretaries, Department Heads, and Finance On Friday July 30, the Minister of Finance and other senior Officers of the various Ministries, on Thursday July 29, 2010, officers of the Ministry, engaged members of the business at the Grenada National Stadium. community at the Ministry of Finance Conference Room.

The meeting was requested by the Minister, in an attempt to strengthen the relationship with the private sector and respond to a request made by the Grenada Chamber of Industry (GCIC) to discuss the current economic situation.

The main objective of the meeting was to develop a strategic approach to addressing the economic downturn. Discussions included stimulating economic activity, Government initiatives and incentives for the private sector, Government projects, private sector investments, and job creation.

The main objectives of the retreat were to bring Ministries up-to-date on the 2010 budget implementation, present the fiscal performance for the first half, establish the current economic position of the Government, and set out the priorities and direction for 2011.

The day's proceedings included a presentation by CARTAC on “Strengthening Strategic Budgeting in Grenada.” The presentation revealed the findings of a review of Grenada's Budget planning and preparation processes and provided

Did you look for an authentic VAT registration certificate? If yes then

·Was the price VAT inclusive?·Did you get a VAT receipt/ VAT Invoice?Consumers be VAT conscious?

A message from the Inland Revenue Division, VAT Unit, Ministry of Finance

When you made a purchase:

Tel.:435-9085/435-6945/6946

Participants at Budget Retreat

Ministry of Finance staff with business operators

Designed and printed by Government Printery

Ministry of Finance, Planning, Economy, Energy & Co-operativesFinancial Complex, Carenage, St. George’s.

Tel.: 440-2731-34, 435-0057; Fax: 440-4115; Website: www.gov.gd; Email: [email protected], [email protected]: Petra Charles-Joseph, Editor-in-Chief, 440-2731, ext.: 1108/435-0057

1. Expansion of short term employment opportunities while e. Government will facilitate the simplification of the tendering also preserving key safety net programmes process to shorten the time for approval of contracts in all 3 Allocation of additional resources in the following areas: categories:a. Road Maintenance Programme – an additional 175 - Less than 10,000

contracts from mid-September to December. Over 2600 - Between 10,000 and 99,000persons will get short term job opportunities. - More than 100,000

Government will do this while ensuring transparency and b. Farm Labour Support Programme – the number of accountability in the tender process.

teams in this programme will be doubled. Twenty four teams employing a total of 240 persons will be employed. 4. Under Tourism, Government will implement the following:

a. The removal of VAT on service charge for hotels on the 2. Acceleration of the implementation of Key Public Sector condition that no less than 90% of this Service Charge is paid

Projects to workers. This safeguard is meant to ensure that the service a. Government will make every effort to expedite all Public charge collected is paid to the workers.

Sector Projects for which funding is fully secured. In this regard, work has commenced on the Gouyave b. The grant of a 50% rebate in the VAT on hotel occupancy only Fisheries Project. Close to 100 jobs will be created for the months of September, October and November. during this EC 32 million dollar Project. Similar conditions will apply to those which were stipulated

last year.b. In the case of the Feeder Roads Phase II, the contractor

has indicated to us that work will start in October. As c. Government will continue to support the expansion of airlift. many as 300 jobs could be created. So far this year, Government has already spent $8 million on

direct airlift to Grenada from North America and Europe.c. With respect to Grenville Market Development, work

on this Project should commence before the end of this 5. Reduction in the Cost of Living. year. At least 50 jobs will be created during this Project. a. The removal of VAT on Text Books. This decision should be

great benefit to the students of the T. A. Marryshow 3. Working with the Private Sector to help them to survive and Community College and the St. George's University as the

preserve jobs school year begins.a. Government will continue to work with existing Private

Sector firms, including small and medium–sized b. The implementation of the Duty Free Barrels programme for enterprises to ensure their survival and the preservation the months of November and December 2010. Some might of existing jobs. call this a Christmas gift from Government.

b. Government will provide a 50% reduction in the VAT on 6. Under Agriculture, Government will implement the following:the following construction inputs for the next six months a. An injection of $300,000 into the Cocoa Association to assist commencing October 01, 2010 and ending on March 31, with the Diamond Cocoa Processing Plant. In addition to our 2011: These items are: Steel; Cement; Roofing; and support for agro-processing, we are determined to work with Lumber. the traditionally economic depressed parish of St. Mark to

create more economic opportunities.c. Government will grant the reduction of terminal dues by

50% by the Grenada Ports Authority on the importation b. Facilitation of the voluntary registration of agro-processors of sand immediately. This reduction must be passed on to who fall below the threshold of EC$ 120,000 so as to allow for the consumer. the recovery of input costs.

d. Government will facilitate the creation of sand depots in 7. For the Automobile Dealers, the following will be implemented: critical locations around the country to reduce a. Reduction of the excise tax on the importation of commercial transportation costs for construction works in these vehicles to ensure that the impact of the VAT is revenue communities from next year. neutral. VAT will continue to be charged on these vehicles in

the normal manner.

Government's Initiatives to Stimulate the Economy

Inside finance - Volume 6, Issue 4, July - September 2010

Documents

Transcript of Inside finance - Volume 6, Issue 4, July - September 2010