Press conference Thursday April 2, 2020
Topic 1: No COVID 19 measures to take the poor and needy out of poverty!
Topic 2: Did employer organizations demand the same package as for businesses in the NL?
Topic 3: COVID 19 relief measures for all consumers poor, needy or rich
Topic 4: Windward Island Chamber of Labor Unions proposals for a COVID 19 stimulus package
Topic 1: No COVID 19 measures to take the poor and the needy out of poverty!
As Anti-Poverty Platform we mentioned last week how Finance Minister Ardwell Irion at the government press briefing said that details of the stimulus package being put together to cushion the effects of the coronavirus COVID-19 are still to be ironed out. He said that the focus of government will be on persons who are unemployed, those who lose their jobs and those whose employment is at risk.
Well, details of measures proposed in a draft Stimulus Plan dated March 26, 2020 (Emergency Measures to mitigate the effects of COVID-19) started to circulate on social media after our press conference of last week Thursday. Until today we have not received any final version of the measures government of St Maarten wants to implement.
A week before on March 19th, some private-sector employer organizations (SHTA, SMMTA, SMTA, IMA) proposed to government a short-term rescue package for 6 months.
As Anti-Poverty Platform we looked into the proposed government measures suggested to the Council of Ministers and the proposal of the private sector employers organizations. What are the measures for the more than 13.000 poor and needy households in St Maarten?
INCOME COMPENSATION MEASURES ONLY FOR THOSE EMPLOYEES AT RISK OF LOSING THEIR JOB
- Payroll supplement for employees at risk of being laid off (between 750 ANG – 1,350 ANG) whereas the employer organizations demanded a 90% compensation of their total payroll expenses. In other words, the employer organizations were asking the same compensation as the Dutch government presented for the businesses in the Netherlands affected by the Corona Virus pandemic!
- Income supplement for bus drivers, taxi drivers, independent tour operators, licensed vendors, market vendors (same amount between 750 ANG – 1,350 ANG)
- Food vouchers of 450 ANG a month for above-mentioned persons
Why not providing all the above mentioned 450 ANG in cash? The total compensation for workers at risk of losing their job proposed was thus 1,350 ANG + 450 ANG = 1800 ANG a month or less. Workers with a higher wage would not get more than the minimum wage earners as compensation. So these measures will provide workers at risk a relief, but will keep their households in poverty! What about the seniors and pensioners? What about the unemployed persons at home before the Corona pandemic hit the island? There is nothing in the draft measures for them. None of the proposed measures will bring the social protection floor to an equal level as in the European part of the Kingdom as is the case on the French side.
Topic 2: Did employer organizations demand the same package as for businesses in the Netherlands?
The government of the Netherlands announced two weeks ago what they called “exceptional economic measures for employees and companies on the BES-islands because of the Corona virus”. Where the draft measures proposed by the St Maarten government and the proposals of the employers organizations on St Maarten the same as the ones from the Dutch government for the Netherlands and the BES-islands ?
As Anti-poverty platform / Consumers Coalition we reviewed the Dutch measures announced and compared the draft proposal from government and the proposal from the private sector employer organizations:
- A three month 90% compensation for loss of wages and income due. Also, employees who have already lost their jobs as a result of the coronavirus can qualify for this scheme.
- Government of ST Maarten draft proposal which leaked announced a payroll supplement for employees at risk of being laid off between 750 ANG – 1,350 ANG.
- The employer organizations SHTA, SMTA, SMMTA, and IMA demanded a 90% payroll subsidy for all employers (including government and NGO’s) for the duration of 6 months.
- In other words, the employer organizations were asking the same compensation as the Dutch government presented for the businesses in the Netherlands affected by the Corona Virus pandemic! Employers organizations seem to want equality in the Kingdom for all employers.
- Consultation on ending island taxes (in particular the tourist tax and the surcharges on the property tax).
- The draft measures proposed by the government of St Maarten is the postponement of filing and payment of provisional profit tax return until june 30th and extension of filing Final Profit Tax return. Nothing is said about tourist taxes (room tax).
- The St Maarten employer's associations propose to reduce the Turn Over Tax (TOT) to 0%. Their arguments were to do this in order to stimulate economic activity and for longer on island circulation of funds and to help foreign reserve risk by spending more locally. According to them, it will also bring down the cost of living by the tax percentage which is now included in almost all prices. It will lower the cost of the purchases from suppliers and will have an effect on the cost of goods.
- As Consumers Coalition we do not believe that suppliers will bring down the prices of goods and services. Our fresh produce program has proven that food suppliers on the island did not change their import pattern either their pricing level when we have proven that we can get better quality and durable produce for affordable prices! To think that other businesses will bring down the price we think is very naive.
Four proposals of the Dutch government for entrepreneurs in the Netherlands and in the BES-islands were not copied by the employers organizations, but three of them were tipped in the ST Maarten government draft stimulus package:
- Liquidity support for companies announced in the European Netherlands will also be extended to the Caribbean Netherlands.
- Business liquidity support loans are also one of the proposals in the draft measures of the St Maarten government.
- The employer organizations SHTA, SMTA, SMMTA, and IMA did not copy this Dutch proposal.
- a possibility for special deferral of payment will be temporarily introduced for entrepreneurs who have been or will be experiencing liquidity problems as a result of the corona crisis.
- Also, the ST Maarten governments draft measures mention “Extended payment arrangements for businesses experiencing cash flow problems (on a case by case basis)”
- The employers organizations did not copy the Dutch proposal.
- The temporary facility under the BMKB for the banks in the Caribbean Netherlands in consultation with the Chambers of Commerce Bonaire, St. Eustatius and Saba. The GO scheme for larger companies, for loans above $ 1.5 million will be extended in the same way as in the European Netherlands.
- The government of Sint Maarten draft stimulus proposal proposed “special working capital to businesses by several banks (on a case by case basis)”
- The employers' organizations did not ask for this
- The expansion of Qredits for jobs and the economy for the European Netherlands is also valid in the Caribbean Netherlands. Neither the government of ST Maarten draft proposals neither the employer's organizations have copied this measure.
- An emergency allowance in the form of a gift for the primary need of entrepreneurs who are affected. Again neither the government of St Maarten stimulus draft package, neither the employers' organizations copied this Dutch proposal.
We can conclude in other words that the draft measures proposed to the Council of Ministers are not the same as the ones proposed by the Dutch government. The employers' organizations started to demand equal treatment for their payroll expenses but did not request the same treatment as the entrepreneurs in the Netherlands and in the BES-islands will be given by the Dutch government.
Topic 3: COVID 19 relief for all consumers poor, needy or rich
As Anti-Poverty Platform / Consumers Coalition we have taken note of the measures in the leaked government proposal for all the consumers in St Maarten. We have not been consulted. So we start to give our opinion publicly on the proposed measures based on the proposals we have been advocating for in the Eradication of Poverty Declaration:
- Update of MAXIMUM PRICE LIST with additional items that could prevent price gouging on basic consumption items. Any addition of items to the maximum price list is welcome. In the Eradication of Poverty Declaration, we have suggested political parties commit to expanding the basket of basic goods to 100 items. The government of Aruba has increased the basic basket to 200 items. Why we cannot get the same 200 items as legislated for the consumers in Aruba on the maximum price list?
- Reduction of THE FUEL CLAUSE of GEBE electricity bills for 6 months and no disconnections. In a newspaper article, we read that the CEO of GEBE said that the fuel clause will be lowered with 8 dollar cents per kWh. This will give a reduction in the electricity bill yes for all consumers. But the price of crude oil on the market has dropped much more than the fuel clause reduction GEBE wants to give! In the Eradication of Poverty Declaration, we have been advocating for the elimination of the fuel clause. GEBE has some explanation to give about the fuel clause calculation.
- Decrease in FUEL PRICES as of March 31st. Today is April the 2nd and we have not seen any relief yet in the price for gas or diesel at the gas stations.
- TELEM/UTS will relax payment deadlines. Disconnection dates will change, but we do not know yet until when. And the data plans will increase the amount of data we will get for the same amount of money. In the Declaration on the Eradication of Poverty, we have proposed the political parties to commit to bringing us faster internet speed and affordable internet rates. Will the rates of our phone minutes and our internet data rates become as cheap as on the French side and as in the mainland of France and in the Netherlands?
- Moratorium on loans for 3 to 6 months from banks. No capital payments nor interest. Some bankers (Windward Islands Bank, Banco di Caribe) announced a 3-month moratorium on capital payments, but the interest will continue to accumulate. The Central Bank of Curacao and St Maarten proposed also a moratorium on the interest for those 3 months! How the government will enforce their no capital payments nor interest proposal? In the Eradication of Poverty Declaration, we have asked the political parties to commit to bringing down the interest rates the local banks are charging for loans and mortgages because it makes the cost of doing business and ultimately the price of goods and services much higher than necessary.
Some other measures proposed in the draft government stimulus package which we have not addressed in our Eradication of Poverty Declaration but which are of course welcomed by us in this Corona Virus situation:
- Deferred car lease payments from car dealers. The car dealers publicly have not offered any relief yet!
- Deferred payments of government student loans for 3 months. This is for those who have to pay back student loans.
- Postponement of filing income tax return 2019 till August 31, 2020. Some of us have a monthly payment of taxes we owed. No moratorium on these tax payments was proposed. The government should lead by example. They suggest a moratorium on payments to third parties in societies, but no postponement in any payment to government!
- Increased support to rent committee, How will that reduce the monthly rent consumers have to pay?
- Landlords are encouraged not to evict tenants and to provide a possible suspension of payments or reduced payments (considering relief provided by the banks)
Topic 4: Chamber of labor Unions proposals for the COVID 19 stimulus package
The Chamber of Labor Unions had a meeting last week Saturday to discuss the Coronavirus pandemic effects on our workers and their families. A letter was drafted to be presented to the Council of Ministers and also one to Parliament asking for a meeting with the Chamber of Labor Unions.
(Co-coordinator Claire Elshot as President of the WICLU will BRING details of the letter)
