The French Parliament has decided to inject 20 billion Euros into the French economy, by significantly reducing the labor costs for companies. However, because of the fiscal competence of the Collectivité of Saint-Martin, local companies have been excluded from the measure. President Richardson as a result has decided to petition the Minister for the Overseas, Victorin Lurel on what he has termed the "unjustified exclusion of Saint-Martin from the benefits of the new tax measure."
Within the framework of the "National Pact for Growth, Competitiveness and Employment", the Parliament, on the initiative of the Government of Prime Minister Jean-Marc Ayrault, decided to inject 20 billion Euros into the French economy, by significantly reducing the labor costs for companies.
The companies will, as a result, be given an aid equal to 6% of their overall wage costs that they incur during the year for remunerations lower than or equal to 2,5 SMIC (4% in 2013). This aid package will take the form either of a tax cut or of a check issued by the French Treasury for those who do not incur sufficient taxes to allow them qualify for this help.
Taking into account the fiscal competence that the Collectivité has, the choice of a "tax expenditure" as the mode for financing this important aid package, excludes Saint-Martin companies from the measure. President Alain Richardson, supported by the entire majority in the Territorial Council, considers that this exclusion is completely unjustified. According to the President, the fiscal competence that the Collectivité enjoys cannot have as a consequence that companies established on Saint-Martin be excluded from benefiting from a national policy aimed at reducing labor costs. A cost, Richardson further explained, on which the Collectivité has no control, since the labor laws, the social costs and the Employment Policy falls under the responsibility of the State.
Already confronted with the perpetual competition from companies established in Sint-Maarten, where the labor costs are lower than that of the French side and where the labor laws are much more flexible, the local companies will now also have to submit to the additional competition provided from companies originating from Guadeloupe or Martinique who will benefit from a major competitive advantage because of the CICE.
In a letter dated January 14, the President of the territorial council drew the attention of the Minister for Overseas to the need for finding a solution quickly so that Saint-Martin companies are provided with an equivalent aid. Senator Louis-constant Fleming, and Member of the National Assembly, Mr. Daniel Gibbs, who attended a meeting on the issue at the request of President Alain Richardson, were informed of this situation and committed themselves to supporting the Collectivité's initiative towards the national political authorities.