"There is a deficit for which proposals were made to reduce the deficit to zero. Due to several factors, such as, the severity of the situation – deficit – the fact that this country need Naf.444 million to run the business of the people, as well as the fact that the government has to build many much needed institutions from scratch for which no additional funds were received, certain measures – some of which were extremely unpopular – had to be taken in order to try and avoid measures being taken against this new born country," Minister Shigemoto pointed out.
The only point where no concrete agreement could be reached is the first resolution where the unions and memberships want the total balance of the cost of living adjustment for 2006, 2007 and 2009 to be paid out by February month end, with interest. The National Alliance led government in August 2010 took an Executive Council decision to have the 5.3 per cent paid out to teachers.
The Honourable Minister of Finance Hiro Shigemoto explained to the union leaders about the situation that the new government of country Sint Maarten were confronted with after they took office on October 11, finding a budgetary deficit of between Naf.80 and Naf.130 million left behind by the National Alliance, and Government had to take responsible actions in order to present a balanced budget by December 15 according to agreements made with The Netherlands regarding public finances.
"The decisions taken by the Honourable Council of Ministers and the Parliament of our country were painful, but necessary and taken in a responsible manner and in the interests of the people, civil servants and teachers of our country.
"Seeing the hard work and dedication that our teachers put into their work on a daily basis, and recognizing that the 5.3 per cent is long overdue and goes as back to 2006, Government and Parliament still saw room within public finances to pay out a cost of living adjustment of 2.0 per cent in January 2011 with the remainder of 3.3 per cent in 2012. The reason for this split is that there was more budgetary room in 2012 to allow for a higher percentage.
"Based on discussions with union leaders on Wednesday, I have proposed with respect to union resolution one, to meet again with the unions at the end of June 2011 to evaluate the revenues received from the increase in Turn over Tax, and assess if the remainder of the 3.3 per cent could be paid out in 2011. This proposal is being put into writing.
"Our country is very fortunate when we look at developments around the world where public sector workers are being laid off, benefits are being cut out, and salaries are being reduced. Based on our own circumstances of achieving country status and having to set up a country government structure from scratch, based on having to present a balanced budget, I believe we have done well, and our teachers can rest assured that they will get what is due to them, but we are just asking for understanding and some leeway in the interests and welfare of the people of the island," Honourable Minister of Finance Hiro Shigemoto explained on Thursday after informing the Council of Ministers about his meeting with the unions.