Inside Finance - Volume 6, Issue3, May - June 2010

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

FinanceINSIDE

Volume 6, Issue 3, May - June 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

IMPLEMENTATION OF IMPLEMENTATION OF

NEW OPERATING SYSTEMNEW OPERATING SYSTEM

(ASYCUDA PLUS) (ASYCUDA PLUS) UNDERWAY AT UNDERWAY AT

Story on page 7

CUSTOMS CUSTOMS INCREASED

REVENUE FOR GOVERNMENT

ONLINE PROCESSING OF ENTRY FORMS

FASTERCLEARANCE

TIMES

INCREASED EFFICIENCY AT

CUSTOMS

“... the engine room of the Public Service...”2 INSIDE FinanceFinanceContinues on pg. 5

Decisions, decisions worried about making and more decisions! serious decisions is like

sitting on a rocking chair-it Should I do this today? gives you something to do but What if I do this does not get you anywhere. Therefore tomorrow instead? I worrying about making a decision is a don't think I can deal with waste of time.t h i s t o d a y ! S o u n d s

familiar? I am sure it does to the majority of us. Indecision or procrastination is based in fear;

including, the fear of failure, the fear of success, fear of losing autonomy, fear of being alone, the fear of

Everyone of us have at some time or other found ourselves attachment and the fear of being judged by others. It is hesitating to make one decision or another. We put things believed that procrastination and perfectionism often go off because we don't want to do them, or because we have hand in hand. Perfectionists tend to procrastinate because too many other things on our plates. Putting things off, big they expect so much of themselves, and they are scared or small, is part of human nature. (they fear) about whether or not they can meet those high

standards.

Another name for indecision is procrastination, and again, everyone procrastinates. However, some persons are More often than not, indecisiveness/procrastinating excessively indecisive and this can result in dire consequences results in task being put off until the very last minute. If from a personal and professional point of view. fear of failure or success made you anxious when faced

with a difficult task, imagine the anxiety you will feel when you have a deadline approaching for a critical task The theory of the Mind says that the Mind is what your that will not be completed because of your action. Now brain does consciously. It goes on to say that our minds think about if you have multiple tasks that are to be perform a series of information processing in order to completed around the same time. You are probably getting form strategies needed to live our daily lives. This process nervous just thinking about situations like this: you have is known as decision making. However, aside from either put yourself in or are about to put yourself in. It is making decisions, because of many kinds of uncertainties not worth it and if you are not careful, the effects of we also face a problem called decidophobia. procrastination can have damaging consequences on your Decidophobia is the fear of making serious decisions or life, mentally, emotionally and financially. the fear of making the wrong decision combined with

nervous agitation. This concept was developed by Walter Kaufmann at Princeton University in 1973. There have been studies that suggest that anxiety may

compromise our immune systems, and therefore render it susceptible to infections diseases. When one is feeling The fear of making the wrong decisions is well known to anxious about things one tends to lose his or her ability to any responsible manager. It is a fact that wherever you see focus, therefore increasing the chances of being involved a successful business, someone once made a courageous in accidents. When one decides not to deal with things and decision. There has never yet been a person in the history put them off, all one is doing is making more work for of mankind who led a life of ease whose name is worth himself or herself in the long run. And the more work one remembering. The difficulty in life is the choice. Eleanor has, the more stressed one will feel because of all the Roosevelt said, "You gain strength, courage, and backlogged work that still has to be done. Remember, just confidence by every experience in which you really stop to because a task is avoided today does not mean it will not look fear in the face." have to be done tomorrow!

Decisions are at the heart of success, and at times there are critical moments when they can be difficult, perplexing, At one's place of employment one has to work toward and nerve racking, but they have to be made. Just being deadlines, these deadlines can help organize workload and

THE CONSEQUENCE OF INDICISION “If you want to make an easy job seem mighty hard,

just keep putting off doing it." ~Olin Miller

Hon. V. Nazim Burke

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

Continues on pg. 4

partners namely, the private sector, the trade union movement and the non governmental (NGO) community.

Nevertheless, our conditions remain adverse and we remain challenged in many respects. Grenada has unacceptable unemployment levels; poverty rate which was estimated at 37.7% by CDB in 2008; the global commodity and liquidity crises; the rising cost of energy; the high debt to GDP ratio; and the general instability and tremors in the global economic system have increased the vulnerability of Grenada.

We must find ways to convert our adversity into opportunities.

To do so calls for maturity, good judgment, timing, patience and most importantly, creativity.

It is in this light that we must view all Multi-lateral Environmental Agreements (MEAs). They must be treated as investment opportunities for Grenada.

Grenada can benefit immensely if it has a plan and a strategy to make maximum use of all MEAs.

In the context of the GEF it means taking full advantage of the three investment levels of the GEF, that is, the Small Grants for investments up to US$50,000; the Medium GEF for investments up to US$1 million; and the Big GEF for

I would like to express my thanks to the organizers for investments over US$1 million. inviting me to this important workshop and to express my pleasure to be here.

It takes approximately 22 months to develop Medium or a Big GEF project proposal and during that time Grenada

It is no secret that while there are some nascent signs of can benefit from several Small Grants Projects so that recovery, the world remains engulfed in an economic crisis there is no delay or hiatus in investment. Take for the likes of which we have not experienced since the 1930's. example the issue of energy and food security. We can

envisage a strategy in which we use the first 22 months to In this crisis, few countries have been spared. Our country implement a series of Small Grants Projects in alternative experienced a marked reduction in tourism earnings, a fall in energy and farming, while we develop a Medium or a Big remittances, a fall off in foreign direct investments, a fall off GEF for upscaling these projects. Therefore by the time in government revenues, which threatened to plunge our we have gone through a 22 month process we have not country and a large number of our citizens into poverty and wasted time and the People of Grenada can be our country into despair. benefitting.

We are happy to say that despite the great challenge we were For this to happen we have to be creative, strategic, and able to steady the ship and avert disaster thanks to the spirit of work in partnership with all sectors which includes the unity and cooperation exhibited by our multipartite social Private Sector and Civil Society.

REMARKS OF THEHON. V. NAZIM BURKE,MINISTER OF FINANCE

AT THE COUNTRY PROGRAMME STRATEGY

WORKSHOP FOR GRENADA – May 12, 2010

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

Minister's Note cont'd from pg. 3

This is why Government has been pushing so vigorously for • Most had a more organizational-centred approach the completion of a multipartite social protocol between rather than a people-centred approach; Government, the Private Sector, Civil Society.

• Groups viewed capacity development as mostly an internal organizational matter without considering We must seek to build a partnership for progress between the external enabling environment and the role of these partners and our donors.Government;

Ladies and Gentlemen, I am confident that we can achieve • Governance structure and decision making was top-this. For as the Small Grants Programme has shown when down; there is dedication, commitment, and leadership we can rise to the top. • Most had poor project management skills;

Between July 2008 and June 2009, Grenada rose from the • Several engaged in unproductive competition and bottom of the Barbados and the OECS GEF SGP Programme secrecy and tended not to create beneficial to the top, utilizing some 47% of the GEF SGP funds. The partnerships among themselves; actual total investment was US$296,597 or EC$800,812.

• Groups did not use a 'rights-based' approach as a We believe that we can do better than this. motivator for action;

We therefore throw out a challenge to the groups to increase • Groups worked within a culture with high visual and the investment of the GEF in Grenada.

oral literacy, but poor written literacy;

The Government of Grenada is particularly pleased with the • They adapted to changes too slowly; success of the GEF SGP in Grenada and for that we have to congratulate the volunteers of the National Focal Group of • They undertook insufficient self-criticism and self-Grenada and Ms. Valerie Gordon who is the GEF SGP evaluation; National Focal Person of Grenada. Valerie and that group have worked with an indefatigable spirit to raise fair Grenada • They took few income or revenue generating from the valley to the mountain top and we salute them for initiatives to lessen the dependency on donors; that.

• Several were not focusing their resources for maximum impacts, yet requested more and more I am also particularly pleased with the focus of the GEF SGP funds to cover core administration costs; andProgramme on environmental sustainability, poverty

reduction and capacity development. • Some were confronted by a political culture which

viewed strong NGOs, CBOs and individuals as Ladies and Gentlemen, through the GEF, we are called to

competitors and adversaries rather than partners.design Projects which protect the basis of our livelihoods, i.e. the environment, and in so doing develop sustainable

Government will work with all donors including the GEF enterprises which create employment and new income SGP to address these deficiencies. streams, while building our capacity for sustainable actions

in the future. But there is much to be done by Government - we must never underestimate or undervalue the importance of This is an opportunity to build from within and to bring VOLUNTEERISM to sustainable development. Grenada to the next level where we can consolidate and build

on the achievements and gains made since our political Despite the best efforts of some, our country remains independence. constrained by the absence of a vibrant entrepreneurial spirit. We must work to strengthen the culture of business Ladies and Gentlemen, a recent study by the GEF SGP enterprise. UNDP (2009) in which the Consultant compared the

performance of CSOs in the Caribbean and Latin America In closing, I wish to call upon the participants present to be found out that our CSOs in the Caribbean had several imaginative, let your creative juices flow and take advantage deficiencies as follows: of the opportunities provided by the Multi-lateral Environmental Agreements.• No clear and well defined philosophy of

development;


help stay on task. Putting off undesirable task can have • Make a schedule of the tasks you have to do and stick to it. serious implications. For example, one may be viewed as • Eliminate distractions that interfere with working on tasks. unreliable, incompetent, or just plain lazy. It is important • Set reasonable standards that you can meet for a task. that one's responsibility at work is executed to the best of • Take breaks when working on a task so that you do not one's ability for the sake of one's integrity and relationship wear down. with colleagues and co-workers. • Work on difficult and/or unpleasant tasks first.

• Work on a task you find easier after you complete a difficult task. Financially, hesitation may be the result of losing out on a

great deal, having to pay more interest and having to pay In life there are many things that need to be done to ensure fines and late fees, which does not benefit anyone, except we are able to function day to day. These tasks range from maybe the bank or person with whom one is doing something simple as brushing our teeth if not the result business. For sure, having to pay more or losing out on a will be rotten teeth or bad breathe, to something as critical deal that could have made one financially sound, is of no as paying the mortgage, if not one can loose their house benefit at all! and land. No matter how insignificant of a task we may

think we are faced with, it is important to avoid indecision In short, indecision interferes with success as much as possible. You can be certain that postponing

tasks will almost always result in unexpected problems Here are a few tips that can help in eliminating indecision: arising. So as much as you would like to do something • Motivate yourself to work on a task with thoughts such other than the job at hand, just buckle down and take care

as "There is no time like the present," or "Nobody's of what you are faced with. perfect."

• Prioritize the tasks you have to do.• Commit yourself to completing a task once started. • Work on tasks at the times you work best. • Break large tasks into small manageable parts.

FINANCIAL TipShop weekly. If you try to shop once a month or Bring your calculator. Especially if you are on a every other week, you will ultimately buy food that budget, using your calculator with each purchase spoils. Shopping weekly for specific items will help ensure you stay within your budget. You prevents that, as well as additional trips to the store will also avoid purchasing items you don't need for “forgotten” items. because you will know that you will not be able to

afford them.Plan ahead. Decide on Saturday morning what your menu for the week will look like. Determine Eat before you go! Silly, it may seem, but you do which ingredients you will need for that week, and not want to go to the grocery store hungry. A curbed hit the grocery store as early as possible to get the appetite will keep you from buying things that best deals on meat and other specials. sound good to you at the time, but are not really

what you had in mind for that week.Make a list. Using your planned menu, make a list of all ingredients you will need, and stick to it when Effective grocery shopping can be attained by wandering through the store. Don't be tempted by implementing a few or all of the above items. The “taste testers” or by your kids' desires for extras. most important thing is to ensure that you plan in Lists make grocery shopping easier and much more advance, and stick to your plan. You will save effective than wandering around blindly. money, time, and spoiled food.

Effective Grocery Shopping

Petra

Editor's Remark cont'd from pg. 2

References: www.livereal.com; Dr. Hossein Arsham, Merrick School of Business University of Baltimore;

www.unc.edu.

“... the engine room of the Public Service...”6 INSIDE FinanceFinance

Economic UpdateMinister of Finance, Hon. V. Nazim Burke, welcomes stakeholders including the Ministry of Finance and other Grenada's reaffirmed 'B-/C' credit rating by Standard and Government bodies; the leader of Her Majesty's Opposition; the Poor's, particularly in these tough economic times. Grenada Authority for the Regulation of Financial Institutions

(GARFIN); the United States Embassy; and representatives from the Board of Tourism, the Grenada Chamber of Industry According to Minister Burke, “This rating validates the and Commerce(GCIC), and the Banking Sector. Government of Grenada's commitment to strong economic

management as stated in the 2010 Budget Speech.”Standards and Poor's is known to investors worldwide as a leader of financial-market intelligence and rates over 100 countries The Standard and Poor's team visited Grenada in March 2010, internationally. Credit ratings are usually awarded relative to to conduct their annual review for reassessing Grenada's other countries in the world. sovereign Credit Rating. While here, they met with various

It is a slow day in the small Minnesota town of Marshall, and the 5. The hooker rushes to the hotel and pays off her room bill with the streets are deserted. Times are tough, everybody is in debt, and hotel owner.everybody is living on credit.

6. The hotel proprietor then places the $100 back on the counter so the A rich tourist visiting the area drives through town, stops at the rich traveler will not suspect anything.motel, lays a $100 bill on the desk and says he wants to inspect

At that moment the traveler comes down the stairs, states that the the rooms upstairs before selecting one for the night.rooms are not satisfactory, picks up the $100 bill and leaves town.

1. As soon as he walks upstairs, the motel owner grabs the bill No one produced anything. No one earned anything. However, the and runs next door to pay his debt to the butcher.whole town is now out of debt and looks to the future with a lot more

2. The butcher takes the $100 and runs down the street to retire optimism.his debt to the pig farmer.

And that, ladies and gentlemen, is how Stimulus works!3. The pig farmer takes the $100 and heads off to pay his bill to

Source: unknownhis supplier, the Farmer's Co-op.

4. The guy at the Farmer's Co-op takes the $100 and runs to pay his debt to the local prostitute, who has also been facing hard times and has had to offer her "services" on credit.

(a) Current Revenues – above target by $6.8M. However, categories: personnel expenditure, retirement benefits, there were shortfalls from Customs and Other Sources by telephone, electricity, water and other goods and services. $6.6M and $2.3M, respectively. On the other hand, the Inland Revenue Department exceeded their target, which (c) Capital Expenditure = $53.9M; approximately EC$4.6M was able to offset the shortfall of the other sources. less than projected or 92% of the budgeted figures.

(b) Current Expenditure – above projections by EC$5.5M. This was as a result of higher outlays on the following

STANDARD & POOR'S REAFFIRMS GRENADA'S 'B-/C' RATINGS

BUDGET PERFORMANCE JANUARY - JUNE 2010

THE STIMULUS AT WORK


In an effort to improve its operations and services to the At the strategic level:general public, the Customs and Excise Department of the - Better management and control of Government Ministry of Finance is upgrading its operating and finances.

- Strengthening the economy through increased efficiency at the Customs and Excise Department to the trading community.

reporting system to the ASYCUDA World Computing System. In this regard, a formal launch was held on Wednesday June 30th 2010 at the Public Workers' Union

- Well-trained staff thus building the capacity of the Building, Tanteen, St. George's.

Department.- Better conditions for trade.

The implementation of this new operating system is - Reliable source of information on foreign trade.

expected to bring big benefits to Customs and Grenada in - Platform for e-government.

general. Essentially, ASYCUDA World will allow the - Support for e-commerce and providing the capability

Customs administration and their clients to handle most of for better reports from Customs.

their transactions, from Customs Declarations to Cargo Manifests and Transit Documents, via the internet. This

Other more immediate benefits include: will improve the ease of doing business with the Customs

- Improvement in the efficiency and effectiveness of and reduce the time taken in getting items cleared from the

the Department.Port. More specifically, the following are the expected

- Facilitation of data integration with SIGTAS, the benefits from investing in this new system.

operating system used by the Inland Revenue Department.

- Technical training to staff to ensure their capabilities in using the ASYCUDA System.

- Uniformed application of the Customs Laws and Regulations – a better command on the collection of duties and taxes.

- Availability of timely and accurate statistics thus harnessing trade.

- Improvement in revenue control. - Reduction in the clearance time of cargo and

inspections

NEW OPERATING SYSTEM NEW OPERATING SYSTEM FOR CUSTOMSFOR CUSTOMS

Continues on pg. 8CARTAC Consultant at Launch

Minister Burke delivering Feature Address at Launch

Invitees at launch


- The minimization of administrative costs. - Enhancing the Government's support for exports - Establishment of a valuation database. through improving access to trade and

information and strengthening the capacity of the The implementation of ASYCUDA World at Customs is Bureau of Standards to provide services related to a sub-project of the Grenada Technical Assistance conformity assessment and quality assurance; and Credit Project (GD TAC) which is jointly funded by the - Modernizing investment promotion.International Development Association (IDA) and the European Union (EU). The GD TAC, which was

As such, in March 2010, an Agreement was signed with the United Nations Conference on Trade and Development (UNCTAD) for the installation and

launched in Grenada on October 20th, 2009, is aimed at implementation of the ASYCUDA World improving the environment for private sector led Computing System, the latest version of ASYCUDA growth, through the modernization of key public sector institutions and the implementation of an export strategy. Specifically the GD TAC has the following

software, at the Customs and Excise Department. The ASYCUDA operations will be housed at the Public Workers' Union building. The installation and implementation is expected to be completed in 18 -

objectives: 24 months.- Improving the efficiency and effectiveness of

Customs; Customs administrations through the world, play a - Improving the efficiency of tax administration critically important role in the implementation of a

through, among other things, a decrease in the range of government trade, economic and social transaction costs of paying taxes and consequently, policies and contribute to the achievement of a number an increase in tax compliance; of national development objectives. Without efficient

and effective national customs administration, governments will not be able to meet their policy objectives in respect to revenue collection, trade facilitation, trade statistics, and the protection of society from a range of social and national security concerns.

The upgrading of the operating system at the Customs Department will most definitely position the Grenada Customs Department to achieve the aforementioned objectives.

New Operating System for Customs continued from pg. 7

Deputy P.S. Mike Sylvester at Launch

Director of Private Sector Development, Mr. Christopher De Riggs at Launch

Invitees at Launch

Invitees at Launch

CARTAC Representatives at Launch


Europe Day through a consultative process that involves stakeholders from the public sector, private sector and civil society.

Europe Day – celebrated annually on 9th May – was commemorated in Grenada with activities on 7th and 8th May. Budget Support Ambassador Valeriano Diaz, Head of the EU Delegation to Barbados and the Eastern Caribbean, hosted a cocktail function The EU provides grant funding for specific projects and also for on the evening of 7th May for the Prime Minister and other invited direct support to the Government's budget. This mechanism guests and a European Film Festival was held on Saturday 8th involves the disbursement of funds directly to the Treasury to May at Reno Cinema in Paddock, St George's. support Government programmes and policies. To be eligible to

receive budget support, countries must have in place adequate

Projects public finance management systems and must demonstrate a commitment to continued improvements in transparency and accountability. Additionally, the Government should have clear Work on the Southern Grenada Water Supply Improvement macro-economic policies with measurable objectives and targets; Project, which began in mid-2009, has continued satisfactorily disbursements are contingent on demonstrating the Government's during the second quarter of 2010, inspite of delays due to progress in achieving its stated goals. problems with the supply of asphalt. Ambassador Diaz and

several members of the EU Delegation to Barbados and the Eastern Caribbean were given a tour of the Project during their The Government submitted a request for disbursement of €1.8 M visit to Grenada to commemorate Europe Day. under the 9th European Development Fund (EDF) budget support

programme. A decision on the disbursement request is expected from the EU by the end of August. The Ministry of Agriculture and the EDF Support Services Unit

have begun implementation of SFA 2008 – Establishment of a Spice Research Station and Farming Systems. Mr. Ronald Missions and Studies O'Neale has been hired to manage the Project and tenders will be issued in July for the supplies and works needed to upgrade and The EDF Support Services Unit provides administrative support expand Ashenden Propagation Station. to facilitate various EU related missions and studies, including

co-ordinating meetings with stakeholders and conducting follow-Implementation of the Technical Co-operation Facility and up to receive feedback on draft reports. Support to Non-State Actors Project began in June. This project will fund technical assistance in critical areas such as the A CARTAC mission visited Grenada in June to provide technical development of a comprehensive Land and Marine Management assistance for the preparation of a Public Finance Management Strategy, and it will also provide funding to support the NSA (PFM) Reform Action Plan. The PFM Action Plan, which will be Panel's activities. The process of drafting Terms of Reference for finalised by the Government during the third quarter of 2010, will the various strategies and feasibility studies will begin in July, provide greater focus and co-ordination of Government's ongoing

Media update for the period 1st April to 30th June 2010

European Union's Development Assistance to Grenada

Continues on pg. 10

Prime Minister Thomas at EU Day Celebrations with EU Ambassador Minister Burke at EU Day Celebrations with EU Ambassador


reform efforts by assigning priority levels to tasks and ensuring appropriate sequencing of activities.

Calls for Proposals

One of the mechanisms through which the EU provides grant funding is through establishing funds that specialise in a particular theme such as energy, water and sanitation, the environment, etc. Periodically a fund issues a call for proposals which is published on the EuropeAid website; information provided includes the submission deadline, eligibility requirements, counterpart funding requirements (usually 20 - 25%), project criteria and guidelines, etc.

Next Quarter

The Ministry of Agriculture will be holding a formal launch to celebrate the commencement of SFA 2008 – Establishment of a Spice Research Station and Farming Systems in August. A tour of the Ashenden Propagation Station is expected to take place immediately following the launch.

A series of workshops will begin in September that are geared towards improving Grenada's capacity to implement and benefit from the commitments made under the Economic Partnership Agreement (EPA) between the European Union and CARIFORUM Member States. (The CARIFORUM grouping comprises CARICOM plus the Dominican Republic).

The EU launched a Call for Proposals in February, inviting institutions responsible for water supply and sanitation to submit proposals for Water, Sanitation and Hygiene Projects. NAWASA submitted two proposals for Projects designed to upgrade its water supply and sanitation systems within the deadline of 2nd June 2010.

Based on a pre-qualification exercise that took place in January 2010, Grenada was invited to submit two Proposals to the Energy Facility's Call for Proposals with a July 9th deadline for submission. The Government of Grenada will submit proposals for (i) A Rural Electrification Project using Wind and Solar Energy in Carriacou and Petite Martinique and (ii) Establishment of a Centre for Renewable Energy and Energy Efficiency in Grenada.

European Union Report Continued from pg. 9

EU Project underway

EU Project underway

EU Presentation

TH5 ANNUAL PRIVATE TH5 ANNUAL PRIVATE SECTOR CONFERENCE SECTOR CONFERENCE

On behalf of the Government of Grenada, let me first congratulate the Caribbean Association of Industry and Commerce (CAIC) for staging this conference. I also wish to congratulate CAIC for having the foresight to choose Grenada as the conference venue. I extend a warm welcome to you and I wish to express our pleasure at being afforded the opportunity to be a sponsor and host.

We note the stated purpose of the conference, namely, to improve the interface between the Governments and the Private Sector in the Region. We are therefore gathered here in the spirit of partnership.

Ladies and Gentlemen, our Government feels at home in this forum because we believe in partnership. For us, partnership is not a buzzword, but a fundamental pillar of Governance. It is also a rational and practical response to the challenges we face as we struggle to navigate our way in the stormy waters of the World Recession that is unfortunately still with us. Partnership, ladies and gentlemen, helps us to stay afloat and maintain steadiness. That is why we preach partnership and we practice partnership.

I have taken note of the issues around which you intend to wrap your minds during the course of the day, as indicated in your agenda.

They include: * The OECS Economic Union Treaty;* The Caribbean Tourism Recovery Plan; * Turning Agricultural Products into Competitive Export

Commodities;* The Export of Professional Services;* A Regional Energy Policy;* Investment Promotion;* The Issuance of Diaspora Bonds.

It is an interesting coincidence that only this week the OECS Economic Union Treaty was debated in our Parliament and was endorsed by both Government and Opposition.

I am pleased to say that your chosen agenda is evidence that there is a shared recognition of priorities among Regional Governments and the Regional Private Sector. This is not altogether strange, for Regional Public-Private Sector dialogue, as the one being held here today, has been going on for some time now, and is mandated by the CARICOM Heads of Government. It should also be pointed out that CAIC has a seat at the table of CARICOM Heads.

I take pride in saying that many of the areas of focus in this meeting are consistent with what we in Grenada have elevated to the status of the highest priority, otherwise referred to as our transformative economic sectors.

Minister of Finance Address at Opening Ceremony of the

TH5 ANNUAL PRIVATE

TH5 ANNUAL PRIVATE

TH5 ANNUAL PRIVATE

SECTOR CONFERENCE SECTOR CONFERENCE SECTOR CONFERENCE th

12 June 2010

11

In our budget presentation in January 2010, we identified these transformative sectors to be the following:

· Health and Education Services;· Tourism and Hospitality Services;· Energy Development;· Agribusiness;· Information and Communication Technology.

Ladies and Gentlemen, please allow me share with you some of the thinking of our Government with respect to some of these matters.

Health and Education Services

With regard to HEALTH CARE the challenge we face across the region is how to take a more strategic view of this sector in the context of the contributions it can make, not just in improving the quality of life of people, but in terms of its wider macro-economic potential. We need to undertake health care projects that will give our nationals first world health care, provide platforms for developing medical tourism, earn foreign exchange, facilitate the preparation of health professionals, as well as create linkages to other economic sectors. Teaching hospitals can do exactly that.

EDUCATION represents another area within the service sector which provides for significant economic transformation. Tertiary Educational Institutions like institutes of Technology can dramatically improve the human resource stock and technological capabilities in a country, as well as serve as drivers of heightened economic activity in depressed regions and diversify the export sector in the direction of service exports.

Tourism and Hospitality Services

The Recovery of TOURISM in the Caribbean is a legitimate and urgent concern. Before the recession tourism was the fastest growing sector in the economy and was the largest component of our service sector. It is a known fact that, since the recession, the key players in this sector have been trying to devise new and ingenious ways of raising capital to restart the many stalled projects across the region. Such initiatives are particularly taxing in Grenada, since they are coming on the heels of the massive effort exerted to physically rehabilitate our hotel plant that was wrecked by Hurricane Ivan.

The recovery effort is, however, an opportunity to remodel our approach as a region. We must seize the opportunity to explore new Public-Private partnerships in this sector. This partnership can and should cover a wide spectrum of collaboration.

Governments are challenged to move beyond the provision of fiscal incentives and regulation. The industry requires a more pro-active intervention on the part of Government that involves joint ventures, joint exploration of sources of finance, as well as a shared responsibility for the generation of airlift and the development of tourism products. This new, pro-active approach, is the approach that the Government of Grenada is following.

AGRIBUSINESS

In the area of Agribusiness we start with the basic realization that the pursuit of agriculture improves our food security as a nation.

Yet, we must accept that the full exploitation of the opportunities arising from agricultural based activities go far beyond the production and sale and consumption of agricultural products in their unprocessed form.

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We recognize that the pursuit of secondary and tertiary alternatives derived from food processing and the development of toiletries, cosmetics and pharmaceutical products create infinite opportunities to strengthen our manufacturing base, consolidate the inter sectoral links in our economy, boost exports and foreign exchange earnings, and resuscitate the rural economy by creating long term employment and income.

To that end we believe that Caribbean countries must consciously and deliberately identify and develop niche products for the export market so as to further integrate themselves in the global economy. Energy Development

The question of ENERGY is of such critical importance that it dictates the need for a whole new paradigm of thinking among policy makers. We all understand that the energy question is not purely a Cost Of Living matter.

The dialogue around alternative and renewable energy needs intensification, but more importantly this dialogue must lead to concrete action. Mindful of our fragile ecology we developed a draft sustainable energy policy that encompasses:

• Oil and Gas exploration, including the resolution of the attendant prerequisites, namely, delimitation of our maritime boundaries, existing contracts and new partnerships;

• The Petrocaribe arrangement, including the issues relating to the security of supply and the timely and adequate servicing of Grenada's financial obligations under the arrangement;

• Energy Conservation and Efficiency;• Relationships with existing Oil Companies and

Dealers, including the issues relating to pricing, supply and storage;

• Relationship with Grenlec, the sole supplier of electricity in our country;

• The development of Renewable/alternative sources of energy, including solar, wind, geothermal natural gas and bio fuels; and

• The development of the appropriate legal and institutional framework within which our energy policy and strategy is to be given life.

The implementation of a regional energy policy will necessitate harmonious action between Regional Governments and Private Sector entities such as utility companies who are heavy users of fossil fuel.

Regional collaboration and accommodation in matters relating to Law of the Sea will also be a critical precondition to the peaceful delineation of maritime boundaries, leading the way for the possible sustainable exploitation of hydrocarbons. New investments in the energy sector provide new opportunities for partnership between Governments and Private Sectors.

ICT

I have noted with interest the topic of the keynote address for the dinner later, scheduled for later today.

“Competing in a Technology Driven Global Market Place”

I want to commend the choice of topic and speaker. It is good that businessmen and politicians are prepared to sit down and discuss

13

issues like these. As a region we have not done enough to move our ideas from the laboratory to the market place. Similarly, we need a commitment to encourage our producers in the Private Sector to embrace appropriate technology regardless of where it comes from. As far as the use of ICT goes we are aware of what ICT is doing to raise productivity and service levels globally, as well as transforming the Doing Business climate.

In Grenada and the region we must make sure and reap our fair share of the ICT revolution. We look forward to the implementation of several ICT investments including the development of a National ICT Network and an ICT Centre.

In wrapping up I wish to return to the subject of PARTNERSHIP.

Our policies and blueprints will remain policies and blueprints if we do not practice PARTNERSHIP. Our Government values the partnership we enjoy with the Private Sector and other Civil Society groups. We created an Office of Private Sector Development in order to administratively facilitate the partnership with the Private Sector.

Since taking office we have implemented a number of major reforms and have sought to do so in partnership with our social partners. The Value Added Tax was introduced after hundreds of discussions with various interest groups, including the Private Sector interest groups. Many adjustments to the draft legislation were made as a result of these consultations. The Investment Promotion Act and other business related legislation were crafted by committees with multi-sector representation.

We continue to look for new ways to work as an active partner with the Private Sector, including engaging individual developers with a view to giving institutional support to their projects and fast tracking where possible. The Private Sector in Grenada and in the region will need to take a more proactive role in engaging Governments. It will not be enough to respond when Government calls. It is important to initiate contact and come with solutions! The nature of the courtship requires a review and some change.

It has been said before, but it is worthy of emphasis. In order to survive we have to be prepared to make changes that may be somewhat uncomfortable at first. We have spoken about the need for economic diversification and in this regard, the development of agribusiness. This will happen when business men and women in the commercial and manufacturing sector step out of their comfort zone and bring their business culture to the farming community. It will require direct investments and partnerships.

The regional integration process will also require a change in our thinking. In our Investment Codes we will be forced to redefine such words as Foreign Investor and Domestic Investor.

As I indicated earlier the present global situation requires a new and more strategic level of engagement. Petty territorial sectarianism and insularity will have to give way to a new openness. The global situation demands it.

Here in Grenada, we look forward to moving beyond the crisis into better economic times, towards a sustained and collaborative future in an integrated Caribbean.

Once again congratulations and best wishes in your deliberations and thfor the success of your 5 Annual Private Sector Conference. I

THANK YOU.

14


Continues on pg. 16

Riddle

&

Have a laugh...

FunFacts Did U Know?

Fun Facts

Quotations

Paying in advance

A motorist, driving by a Texas ranch, hit and killed a calf that was crossing the road. The driver went to the owner of the calf and explained what had happened. He then asked what the animal was worth.

"Oh, about $200 today," said the rancher. "But in six years it would have been worth $900. So $900 is what I'm out."

The motorist sat down and wrote out a check and handed it to the farmer.

"Here," he said, "is the check for $900. It's postdated six years from now."

Repairing the phone

A friend of mine was a frequent user of a pay telephone at a popular truck stop, and was greatly inconvenienced when the phone went out of commission.

Repeated requests for repair brought only promises.

After several days, the phone company was again contacted and told that there was no longer a rush.

The phone was now working fine--except that all money was being returned upon completion of each call.

A repairman arrived within the hour!

How could all of your cousins have an aunt who is not your aunt?Ans: Your mother is their aunt

Imagine you are in a sinking rowboat surrounded by sharks. How would you survive?Ans: Quit imagining

What did the doctor say to the man who complained he was shrinking?Ans: You will just have to be a little patient

! That the District Revenue Office (DRO) in Grenville has been temporarily relocated to upstairs the Agricultural Office on Seaton James Street, Grenville?

Due to a fire in Grenville on Sunday June 27, 2010, the offices had to be relocated due to damages sustained.

All payments, including the payment of Property Tax, Vehicular Licenses, VAT and other fees and taxes can be made as normal at the temporary location.

"The people who get on in this world are the people who get up and look for the circumstances they want, and, if they can't find them, make them." - George Bernard Shaw

“Being happy doesn't mean everything's perfect, it just means you've decided to see beyond the imperfections.” - Unknown

!

example, if strong-tasting substance like salt is placed on a dry tongue, the taste buds will not be able to taste it. As soon as a drop of saliva is added and the salt is dissolved, however, a definite taste sensation results. This is true for all foods. Try it!

! Clans of long ago that wanted to get rid of their unwanted people without killing them used to burn their houses down - hence the expression "to get fired."

! The only 15 letter word that can be spelled without repeating a letter is "uncopyrightable".

A person cannot taste food unless it is mixed with saliva. For


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

The public is further advised that under section 15 (2) of the Insurance Act all registered insurance companies are required to display their Certificate of Registration in a prominent place to which the public has access at each of their business locations. The date of the Certificate should

CANCELLATION OF REGISTRATION be examined to ensure that the licence is valid at the date of – ABBA ENTERPRISES the proposed transaction. A listing of registered insurance

companies is published in the Government Gazette, in the The general public is hereby advised that effective May 11, local newspapers and on GARFIN's website. GARFIN can 2010 the Grenada Authority for the Regulation of Financial also be contacted directly to confirm the registration status Institutions, GARFIN, has cancelled the registration of Mr. of an insurance company.William Aban, trading as Abba Enterprises, to operate as an insurance broker in or from Grenada. This cancellation means that Mr. William Aban and/or Abba Enterprises are not authorized to represent or act on behalf of any insurable PUBLIC NOTICE ON risk in Grenada or to solicit, negotiate or procure insurance WORLD WIDE INSURANCEor the renewal or continuance of insurance on behalf of existing or prospective policyholders. The public is hereby advised that the company trading as

World Wide Insurance Limited is not licensed to conduct All insurance companies registered in Grenada are asked to insurance business in Grenada. Accordingly, World Wide note the content of this notice and to be guided accordingly. Insurance Limited is not authorised to sell any class of

insurance in Grenada.

CONDUCTING OF INSURANCE BUSINESS All persons who have purchased insurance coverage from WITH INSURANCE COMPANIES NOT World Wide Insurance Limited are asked to immediately

REGISTERED IN GRENADA contact the Grenada Authority for the Regulation of Financial Institutions (GARFIN). GARFIN can be

The general public and the business community is hereby contacted at telephone numbers 440-6575 or 440-8717 or at advised that it is an offence, pursuant to section 11 of the its offices at the National Stadium, at Queen's Park, St. Insurance Act, No. 5 of 2010, to purchase insurance from a George's.company which is not registered in Grenada to conduct insurance business. Under special circumstances, the Please be advised that insurance coverage provided by Supervisor of Insurance, which is the Grenada Authority for World Wide Insurance Limited is currently not valid.the Regulation of Financial Institutions (GARFIN), may grant approval for the purchase of insurance from an All affected persons are advised to give this notice their insurance company which is not registered in Grenada to urgent attention.conduct insurance business.


Continues on pg. 18

FinanceFinanceFFiinnaanncceeINSIDE What’s Been What’s Been HappeningHappening

GRENADA QUALIFIES FOR OECD WHITE LIST

On Wednesday May 19, 2010, Grenada signed Tax Information Exchange Agreements (TIEAs) with seven (7) of the Nordic countries. The Agreements were signed in Paris by Grenada's Ambassador to the European Community, Ambassador Stephen Fletcher and brings to thirteen (13) the number of TIEAs now signed by Grenada. This qualifies Grenada to be placed on the

OECD “white list” of jurisdictions which have substantially implemented internationally agreed tax standards. Three other OECS countries signed with these Nordic countries at the same time and also qualify for the “white list”. The Workshop was sponsored by the Ministry of Commerce

of the People's Republic of China and organized by the Training Center of State Administration of Foreign Experts In the months prior to this Affairs. signing, Grenada has been

a c t i v e l y e n g a g e d i n negotiating TIEAs with a The Workshop was facilitated by a number of experts and number of its economically experienced officials in the varying fields, and targeted significant trading partners. representatives from developing countries with strong This was a requirement of alliances with China. Countries represented included Costa

the OECD and G20 nations that countries should subscribe to Rica, Ethiopia, Grenada, Indonesia, Lesotho, Mexico, the principle of transparency in the financial services industry Pakistan, Tanzania, Venezuela, and Zimbabwe. and conclude at least twelve such TIEA Agreements or face sanctions including possible “blacklisting”.

The thirteen countries with which Grenada has now signed Agreements are the United States, United Kingdom, France, Netherlands, Belgium, Australia, Norway, Denmark, Sweden, Finland, Iceland, Greenland and the Faroes. Grenada has also concluded negotiations with Germany and Ireland and is awaiting a date for the signing of these Agreements.

The signing of these Agreements is a further indication of Grenada's commitment to transparency and international co-operation on tax matters and is consistent with the commitment given by the Minister of Finance, Hon. V. Nazim Burke, in his 2010 budget presentation.

The main objective of the Workshop was to provide participants with a brief understanding of the status, function,

OFFICER ATTENDS WORKSHOP on Introducing and necessity of China's Foreign Intellectual Introduction

Foreign Expertise to Developing Countries",Programme during their period of economic development, and an understanding of the organization, implementation,

Ms. Helen Roden, of the Policy Unit of the Ministry of Finance, and administrative work involved when the Government attended a Workshop on "Introducing Foreign Expertise to recruits foreign experts and sends officials for overseas Developing Countries", in China from May 10 - 31, 2010. training.

Ambassador Stephen Fletcher

Ms. Helen Roden at Conference


Minister's Visit to Project Co-ordinating Unit“... the engine room of the Public Service...”18 INSIDE FinanceFinance

Grenada Police Force carried out a routine operation in Carriacou. The operation realized the seizure of 1 (one) The Workshop also aimed to share China's successful schooner and over 350 c/s of contraband goods including beers experience in importing talents with the developing countries and stout valued at over $100,000.00. while establishing win-win co-operative relationships and

improving its autonomous development ability.GRENADA MOVING TOWARDS LOCALISATION OF THE MDGsFINANCE MINISTER AT 40th MEETING OF CDB

BOARD OF GOVERNORSDuring the week of May 17-21, 2010, Ms. Jacqueline Massiah, Research Officer in the Social Policy Unit of the Organisation of Minister of Finance, Hon. V. Nazim Burke, attended the 40th Eastern Caribbean States (OECS) Secretariat, visited Grenada Annual Meeting of the Board of Governors of the Caribbean to meet with representatives of the Government of Grenada and Development Bank (CDB), from May 19 – 20, in Nassau, Civil Society to complete a data collection exercise, with Bahamas. respect to the process of localization of the Millennium Development Goals (MDGs).

The Annual Meeting was preceded by a pre-meeting of the Board of Directors on Monday 17th, and a Meeting of the Procedures Committee of the Board of Governors on Tuesday May 16th. Also on May 16th, the Annual Meeting of the Contributors to the Special Development Fund (SDF) and special seminar on the “Constraints to Growth and Development” was held.

Grenada's participation at these meetings help to guarantee its involvement in key decision making with regard to the policies and strategic priorities of the CDB as well as its specific areas of emphasis in investment and programming. The Minister was accompanied by Mr. Mike Sylvester, Deputy Permanent Secretary of the Ministry of Finance, and Mr. Mervin Haynes, Director of Economic Development and Technical Co-operation at the Ministry of Finance.

The localization of the MDGs is a process by which Grenada can adjust the globalised indicators to the local context while CUSTOMS AND RGPF CARRY OUT SEIZURE IN also pay attention to the CARICOM specific indicators. At the CARRIACOUcompletion of the localization process, the country will have a policy document that will give a clear reflection of the level of On Saturday May 1st 2010 at about 2:30 p.m. officers of the achievement by Grenada, as well as a plan of action for Customs & Excise Division along with members of the Royal achievement by 2015. The report will also feed into the Regional Report which will be prepared by the United Nations Development Programme, Sub-Regional Office (UNDP/SRO) for this MDG reporting year.

The OECS Secretariat, with the UNDP/SRO for Barbados and the OECS, is assisting Grenada with the process of localization.

Continued from pg. 17

Continues on pg. 19

Ms. Yolande Newton - MDG Focal Point


S ized Goodse

S ized Vessele


Continues on pg. 20

During her stay, Ms. Massiah was supported by a local MDG During their stay, the delegation focused on exploring team, headed by Ms. Yolande Newton of the Ministry of investments in the areas of tourism, infrastructure, health and Finance, and consisting of members taken from both agriculture. In this regard, they met with the Prime Minister; Government and Civil Society. the Ministers and Permanent Secretaries of the relevant

Ministries including Carriacou and Petite Martinique Affairs; the Grenada Chamber of Industry and Commerce (GCIC); SURVEY ON DEMAND FOR HCFC REFRIGERANTS and the Grenada Hotel and Tourism Association (GHTA). AND EQUIPMENT IN THE REFRIGERATION AND AIR They also visited some development Projects already started CONDITIONING (RAC) SECTOR OF GRENADA but on hold due to financing constraints, and met with some of the investors responsible for these Projects.The United Nations Environment Programme, in conjunction

with the National Ozone Unit (NOU), Energy Division of the Ministry of Finance, conducted a survey in the Refrigeration and Air Conditioning (RAC) Sector of Grenada on the current consumption and demand for HCFC refrigerants and equipment during the month of May 2010.

At the end of their stay, a Memorandum of Understanding (MOU) was signed between the Government of Grenada and Sewang One World Co. Ltd. The signing, on Wednesday May

,19th marked the end of Sewang's investment mission to Grenada and the creation of relationship with the Government

The aim of this survey was to collect data that can be used to of Grenada.develop a project that will assist Grenada in phasing out the consumption of Ozone Depleting Substances in the Refrigeration and Air Conditioning Sector.

Local refrigeration technicians were duly authorized to conduct these surveys on behalf of the Ministry of Finance and, as part of the process, visited facilities and technicians throughout the island to collect the required data.

The Ministry of Finance would like to take this opportunity to express its gratitude for the kind co-operation and assistance of all stakeholders in the Refrigeration and Air Condition Industry in ensuring the timely completion of this survey.

KOREAN INVESTMENT DELEGATION MISSION TO GRENADA

The Office of Private Sector Development of the Ministry of Finance hosted a six-person delegation from “Sewang One World”, an investment delegation from Korea, from May 17 - 20, 2010.

The delegation was headed by Mrs. Yeja Park, the Signing on behalf of the Government of Grenada was Prime

President/CEO of Sewang One World, a part owner of Hyundai Minister Hon. Tillman Thomas while Mrs. Yeja Park,

Construction, and a board member of Samsung.

Minister Church with Executive of The Grenada Refrigeration Air Conditioning and Ventilating Association


Prime Minister Thomas and Sewang Representative

Prime Minister Thomas and Sewang Delegation



Continues on pg. 21

Ministers of Trade, at the Grenadian by Rex Resorts, St. George's.

The APSM is a mandate from the CARICOM Heads of Government and brought together regional Ministers of Finance and of Trade, business leaders, and investors. It acted as the platform to discuss issues including:

• The Caribbean Tourism Recovery Plan;

• Investment Promotion;

• The OECS Economic Union Treaty;

• Issuance of Diaspora Bonds, and

• A Regional Energy Policy.President and CEO of Sewang One World Co. Ltd, signed on behalf of the company. It also provided an opportunity to build partnerships, facilitate

networking and create trade linkages.The MOU consists of a commitment by the two parties to explore potential investments in the five lead sectors as Approximately 100 participants, from Grenada and across the indicated in the Government's 2010 budget presentation. The region, attended the event.areas are:

· Tourism and Hospitality Services; The feature address at the opening ceremony was delivered by · Agribusiness; Hon. V. Nazim Burke, Minister of Finance, while Mr. Nicholas

Earle Brathwaite, Silicon Valley Technology Entrepreneur and · Energy Development;International Business Executive, delivered the Keynote · Health and Education Services;address at the dinner. His address focused on “Competing in a

· Information and Communication Technology.Technology Driven, Global Marketplace.”

Within the framework of the MOU Sewang One World Co. Ltd The Annual Private Sector Meeting has been held by the CAIC

made a commitment to engage the Private Sector with a view to across the region for the past four years. Grenada was honoured

partnering for the mobilization of capital and other resources for to have the opportunity to host this year's event. (See Minister

Private Sector Development. Burke's speech on page11)

This mission by Sewang, forms part of the initiative announced CUSTOMS JUNIOR OFFICERS TRAINING

by the Minister of Finance in his 2010 Budget speech where he stated that Government will move to new levels of engagement

From Monday May 3rd and Tuesday June 15th the Customs and with both local and foreign investors in the spirit of mutually Excise Division conducted the Junior Officers Basic Training beneficial partnerships in an effort to improve the business Course. Twenty-nine (29) Customs Officers, who were climate, a priority of the 2010 Budget.separated into two (2) groups, were trained during that period.

GRENADA HOSTS 5th ANNUAL PRIVATE SECTOR MEETING

The Caribbean Association of Industry and Commerce (CAIC) in collaboration with the Government of Grenada, on Saturday June 12, 2010, hosted the 5th Annual Private Sector Meeting (APSM) and Dinner with CARICOM Ministers of Finance and

The training was conducted at the ARD Conference Room and at the VAT training room. The facilitators came from within the Customs Division and other government agencies such as the Financial Intelligence Unit (FIU), the Royal Grenada Police Force (RGPF), the Ministry of Agriculture, the Department of Public Administration, the Accountant General's Office and the Ministry of Foreign Affairs.

Prime Minister Thomas and Sewang Representative signing MOU

Head Table at Opening Ceremony

Comptroller Felix (centre) and other Senior Officers at Head Table



Continues on pg. 22

PUBLIC FINANCE MANAGEMENT REFORM ACTION PLAN

The Ministry of Finance, with technical assistance from CARTAC, will be drafting a Public Finance Management (PFM) Reform Action Plan that will document the Government's priorities and assign a timeline that appropriately sequences the actions to be taken. The development of an Action Plan to guide Government's reform initiatives is expected to enhance and focus implementation efforts, facilitate

Some of the topics covered during the course were Report Writing, Valuation, Vessel and Aircraft search, Classification, Arrest, Detention and Seizure, Plant Quarantine, Staff Orders, Financial Management Act and Treatment of Diplomats.

A closing ceremony was held at the Public Workers Union Conference Room on Tuesday June 15th, 2010. At the ceremony Certificates of completion were distributed in the presence of some of the facilitators and Customs Administration members.

The Comptroller of Customs, Mr. Carlyle Felix took the opportunity to congratulate the participants for completing the course and reminded them of their responsibility to give of their best at all times since in his words “to whom much is given, monitoring of progress, and provide a useful tool for obtaining much is expected.” He also commended the efforts of Deputy donor support.Comptrollers Lyndonna Marshall and Donan Victor, Supervisor Martin Felix and Senior Officer Carvel Lett for working In this regard a consultant team from CARTAC visited Grenada together to ensure that the training was a success. during the week of June 14th 2010 to assist in developing the

first draft of the PFM Reform Action Plan. The team facilitated a OPEC'S FID APPROVES GRENADA'S LOAN APPLICATION

Grenada's application for a US$8.5 million loan to finance the second phase of the Agricultural Feeder Roads Project has been approved by the OPEC Fund for International Development.

The approval, by the governing board of the fund, paves the way for the start of work on over 25 feeder roads across the country and would provide jobs for hundreds of workers.

Additionally, the approval of this OPEC loan would have a positive influence on related loan applications which are pending with other institutions, such as the Kuwaiti Fund.

The approval of other feeder road loan applications would allow the Government to embark on the repairs and construction of a greater number of roads than what was previously conceived.

The Government is expected to spend over EC$52 million on the agricultural feeder roads during the next 12 or so months.

The loan is expected to be signed within the next six weeks and plans are being put in place for an early disbursement, in order to commence work across the island.

Customs Officers at Closing Ceremony

Officers at Workshop

Permanent Secretary and CARTA Representative at Workshop



3) The development of Grenada's macro-economic management framework and improving the collection and analysis of statistics required for effective economic planning and management;

4) The implementation of the Economic Partnership Agreement (EPA) and other trade related agreements and obligations; and

5) The implementation of programmes and projects funded by the EU.

workshop of stakeholders followed by individual meetings where required. Participants included members of the Management Team of the Ministry of Finance and Finance Officers of the various Ministries.

The project also provides support for the operations of the Non-State Actors Panel – an advisory panel comprising a variety of organisations drawn from the private sector and civil society – to ensure their effective participation in dialogue with the Government and the European Union regarding Grenada's development policies and the use of EU grant funds.

GRENADA RECEIVES ADDITIONAL SUPPORT FROM THE EU

The Government of Grenada and the European Union (EU) Delegation to Barbados and the Eastern Caribbean have finalised a project that will provide approximately EC$800,000 for technical assistance and training over the next twelve months. These funds, provided under the Technical Co-operation Facility of the 10th European Development Fund, are expected to build the Government's capacity in a variety of areas, including:

1) The development of a Land and Marine Management Strategy for Grenada;

2) The drafting legislation and regulations to improve the legislative framework for physical development planning;


Some Members of Staff at EDF/SSU Office, Grenada

WelcomeTO ALL NEWMEMBERSOF STAFF



• Chartered Accountants Bill – The bill was passed WASTE REDUCTIONby the Lower House in June. This Bill aims to improve accounting standards in Grenada. • Telephone Services – Signed a new two - year

agreement with LIME which reduces the cost of mobile TAX REFORM services. This will save Government over EC$523,000

over the next two (2) years. Government is currently negotiating a new agreement for broadband and internet • VAT & Excise Tax – Successful implementation of services which should also see reductions in the cost. the VAT and Excise Tax. VAT collections are Commitment of 2010 Budgetencouraging, notwithstanding the fact that the

economy is still depressed. Commitment of 2010 Budget PRIVATE SECTOR DEVELOPMENT

ECONOMIC MANAGEMENT • Levera Project – Progress has been made with the Levera Project. All the major non-financial constraints have been removed; the investors should be ready to • PRGF & ECF – Successful completion of the PRGF commence project in six (6) months time.to the point where Grenada was in a position to enter

into a new arrangement. The IMF Board granted approval of the Extended Credit Facility on April • Zublin - Cabinet has reached a decision on the Zublin 2nd, 2010. Grenada received its disbursement of proposal. They have decided not to endorse the Project in EC$5.25M on 19/4/10. Commitment of 2010 its present state. Budget

• Virgin Beach Project – expects to start a more • Jobs – Based on NIS data, 360 permanent jobs have expansive way in September 2010.

been created for the year so far.

• Four Seasons – The Government has issued a notice to • Economic Growth – Preliminary data from the the developers based on their non-performance of the

ECCB suggests that Grenada is one (1) of two (2) contract.countries that has experienced growth in 2010. The recovery is slow based on what is happening in the • Teaching Hospital – Discussions are currently in USA and Europe. progress for the development of a Teaching Hospital in

Grenada. It will likely be a public/private sector • Credit Rating – Standard and Poor's reaffirmed arrangement.

Grenada's ‘B-/C’ credit rating in June 2010. “This rating validates the Government of Grenada's • Potential Investors – A Korean investment group, commitment to strong economic management as “Sewang One World”, visited Grenada on an stated in the 2010 Budget Speech.” Investment Mission from May 17 – 20. (More on page

19)• New Customs Tariff – Effective 01 February 2010,

a new Tariff was implemented by the Customs and OTHERExcise Department. This is part of the Customs modernization process. • A committee has been established to work on the Energy

Relief Programme (Illuminating Lives and Energising DOING BUSINESS Hope). The project is being developed. Commitment of

2010 Budget• ASYCUDA – Commencement of new IT platform

for Customs. It was launched on June 30th, 2010. It is • GRENLEC has done preliminary geochemical work on intended to speed up processing time and improve renewable energy sources. the collection of Government's revenue. Commitment of 2010 Budget • The European Union is looking into a Project for Wind

Energy in Carriacou.

• An ICT Project, which is likely to get full support from the World Bank, has been developed for Grenada.

Ministry of Finance Achievements Continued from pg. 24

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 Joseph, Editor-in-Chief, 440-2731, ext.: 1108/435-0057

FINANCIAL PERFORMANCE assigned to cover local liabilities. This is currently being done. The insurance industry is responding well. Onsite inspection of Insurance Companies will • Signing of TIEAS – On Wednesday May 19, 2010, commence this month. Commitment of 2010 Grenada signed Tax Information Exchange BudgetAgreements (TIEAs) with seven (7) of the Nordic

countries which brings the number of TIEAs signed to 13. With this signing, Grenada has surpassed its target • Continued Consolidation within the Credit Union and is now ‘white listed’ by the OECD. This means Movement – Mergers of credit unions have taken that Grenada is now up to national standards in terms place, for example, the St. Patrick’s Credit Union and of tax information exchange. Commitment of 2010 the Public Workers’ Union have merged. Other Budget (More on page17) mergers are in progress, for example, Western Credit

Union and Grenada Union of Teachers.

• Enactment of New Insurance Act – Came into being th • Co-operatives Bill – The Bill had its first reading in on March 26 2010. This Act brings tighter regulation

the Lower House last month and should come into of the sector, requiring the establishment of a force by the end of this month.Statutory Fund to ensure that there are assets locally

Ministry of Finance…..

ACHIEVEMENTSJANUARY – JUNE 2010

Continues on pg. 23

Minister Burke reviewing TIEA documentation with Ambassador at the Kingdom of Netherlands

Inside Finance - Volume 6, Issue3, May - June 2010

Documents

Transcript of Inside Finance - Volume 6, Issue3, May - June 2010