Moontown

The announcement came at the closing of a three-day Haitian Diaspora Meeting that successfully concluded when its some 500 participants issued a series of recommendations for nation-building, recovery and development in post-earthquake Haiti with the goal of contributing towards a comprehensive plan for the future of the Caribbean country.

OAS Assistant Secretary General Albert Ramdin

In his closing remarks, OAS Assistant Secretary General Albert R Ramdin emphasized the importance of the new role the Haitian Diaspora seeks to play in the future of Haiti, and in response to a request by the Diaspora offered the support of the hemispheric organization for an annual Haitian Diaspora meeting “as long as it is done with the close collaboration of the Haitian government, the private sector and the international community.”

“My dear friends, you have engaged in constructive deliberations over these two days, but deliberations are not an end in themselves,” Ramdin said in his closing remarks. “Now is the time for implementation, now is the time for action. Far from being an end, this forum in our view is just a beginning. It is a beginning of your constant involvement in the affairs of Haiti. It is the beginning of an increasing investment in Haiti to create jobs and wealth for all. It is the beginning of an engagement to concretely help your brothers and sisters shoulder the burden. Let me assure you that the OAS, together with our inter-American partners, stands ready to support your efforts in whatever way we can.

“We stand ready as we did in the past to accompany President René Préval, Prime Minister Jean-Max Bellerive and the whole government of Haiti in its determination to forge a peaceful, secure, stable and prosperous nation. I can promise you we will keep Haiti high on the political agenda of the Organization of American States and the inter-American system, and you can be sure that in that process we will keep reminding heads of state of the promises we made to the people of Haiti in the aftermath of the earthquake.”

For his part, Edwin Paraison, Haiti’s Minister of Haitians Living Abroad, said the time had come for the Haitian Diaspora to play a more prominent role in Haiti’s decision-making.

“The economic contribution of the Diaspora, as well as its capacity to respond during the critical moments of our history, has always been demonstrated, and it has been appreciated by everyone in Haiti and abroad,” he said. “The recent earthquake of January 12 once again illustrates this. However, when it comes to another sphere of decision-making and participation, the role of the Diaspora has often been relegated to a second level. Today, the moment has come for the Diaspora to be able to exercise fully and completely its role in all of our country’s initiatives, as well as its participation in the processes of decision-making.”

The Haitian Diaspora Meeting was coordinated by the OAS with the collaboration of the Haitian Government through its Permanent Mission to the OAS and with the financial support of the Governments of the United States and Canada as well as the Kellogg Foundation. The role the OAS played in convening a large and diversified constituency such as this one is evidence of its significant capacity as the regional political forum of the Hemisphere. Haitian Diaspora participants at the meeting hailed from the United States, Canada, France, Dominican Republic and the Caribbean.

“The Haitian Diaspora has tremendous human capital that they want to put at the disposal of the Haitian government and society,” said Irene Klinger, Director of the OAS Department of International Affairs. “This is human capital that the government of Haiti should engage in the development of the country, both in the economic and social sectors.”

Several Diaspora representatives stressed that the Haitian nation was 12 million strong, including the three million spread out in the Diaspora. All are united in the effort to provide a better future for all Haitians based on the values of equality and promotion of human dignity embodied by Toussaint Louverture.

Diaspora representatives emphasized the need to join forces in this historical moment so that the country would be better prepared to confront natural disasters, to ensure a dynamic and transparent reconstruction process, to strengthen governance, and promote sustainable social and economic development for all Haitians. Today, the Haitian Diaspora remittances to the Haitian Republic are estimated to be in the order of $2 billion and represent about 30 percent of Haiti’s GDP.

The OAS Haitian Diaspora’s recommendations will be made public at a Haiti Donors Conference March 31 in New York City. They are part of Haiti’s Post-Disaster Needs Assessment (PDNA), launched by the country’s government. (Caribnet)

CANCUN, Mexico (Reuters) — The governing board of the Inter-American Development Bank agreed on Monday to raise $70 billion in new capital and give $479 million in post-earthquake debt forgiveness and other relief to Haiti.

The oldest and largest regional development bank needs more capital to respond to the Haiti emergency and refill coffers depleted by its response to the recent economic crisis, officials said.

The new funds will significantly increase the bank’s reserves from the $100 billon now on hand and allow the IADB to offer $12 billion in lending a year.

“We started from the beginning with a goal … to do double the amount of lending per year than (the bank) had done before the (financial) crisis,” the US Treasury’s chief for development issues, Marisa Lago, told reporters.

The United States pushed the 48-member development bank to adopt new rules for accountability, transparency and reporting that some members found needlessly constricting.

The final details of the capital raise were hashed out after midnight once leaders of the bank had enjoyed dinner together and entertainment from around the region, said Peter Kent, Canada’s junior foreign minister.

“As we went around the table, there was comment, some criticism, compliments,” he said of the meeting. “We all went to bed quite happy.”

The devastating 7-magnitude Jan. 12 quake in Haiti shattered many parts of the capital, Port-au-Prince, and may have killed up to 300,000 people.

Besides the costs of rebuilding, Haiti faces immediate funding challenges as its fiscal shortfall this year could be as large as $350 million, a senior official from the International Monetary Fund said.

Officials agreed to erase $447 million worth of Haiti debt and give $32 million in other relief.

“We are sure that the debt relief for Haiti with the bank will reduce the fiscal pressures and avoid a debt problem in the coming years,” Mexican Finance Secretary Ernesto Cordero said at an opening event for the meeting.

The IADB lends money and provides grants to its borrowing members in the Caribbean and Latin America. The bank has a strong credit rating because its work is underwritten by advanced economies like the United States and China.

Under the capital plan, the banks’ members will contribute 2.5 percent of the required cash and the rest will come from fresh debt issuance.

The Chief Executive Officer, Ambassador Lorne McDonnough, indicated that CAPs would be developed for all beneficiary Member States. This follows from a recent decision of the CDF’s Board to accelerate implementation of CAPs, once the Member State is financially compliant. Saint Vincent and the Grenadines, Belize along with Saint Lucia are the Member States currently eligible for CDF assistance.

The Government of Saint Vincent and the Grenadines has requested financing for the Apron, Runway and Taxi-way for the Argyle International Airport. The request is expected to be considered by the Board at its next meeting. The CDF is in discussion with the Government of Belize to commence the process of designing a CAP for that CARICOM Member State during April. Discussions have also commenced between the Government of the Commonwealth of Dominica and the CDF in keeping with the decision of the Board to engage all beneficiary Member States.

The CDF was established by the Revised Treaty of Chaguaramas to provide financial and technical assistance to disadvantaged countries regions and sectors to ameliorate dislocations in Member States which may be caused by the implementation of the CSME. In addition, the CDF assistance will support measures to reduce disparities among Member States so they can fully derive the benefits from the integration process. In executing these mandates the CDF provides financial and technical assistance to the public and private sectors. (Caribnet)

Delivering the 2010 Budget Address in the National Assembly on Tuesday, Prime Minister and Minister of Finance, Denzil Douglas said there are too many indirect taxes at different rates that make the system complex and it will replace several taxes.

St Kitts and Nevis Prime Minister and Minister of Finance, Denzil Douglas delivering the 2010 Budget Address in the National Assembly on Tuesday.   (Photo: Erasmus Williams)

“The current tax system promotes cascading of taxes or double taxation of goods. The ECCU Tax Reform and Administration Commission in fact recommended that all indirect taxes within the sub-region be replaced by a VAT. A VAT would streamline the tax system by replacing the Consumption Tax, Hotel and Restaurant Tax, Cable TV Tax, Traders Tax, Vehicle Rental Levy, Export and Rum Duty, Telecommunications Levy (IDD Calls) and Parcel Tax,” said Prime Minister Douglas.

He said that a Public Awareness and Education Campaign for the introduction of the VAT is scheduled to begin in April 2010.

“This will be accompanied by the circulation of the White Paper and several pamphlets, booklets and posters which the public and potential taxable persons can refer to from time to time. There will also be radio and television programmes as well as publications in the newspapers and the internet,” said Douglas.

He said that a Tax Reform Team will conduct workshops and seminars targeted at specific interest groups, businesses and individuals and will also be available to meet with members of the general public to answer any question and address any concern that they may have.

“Potential VAT and Excise taxpayers will be identified and provided with application and registration forms. Registered businesses would be required to adopt proper accounting standards for the collection of VAT. The Tax Reform Team will design a series of advisory visits targeted at registered businesses to ensure that they understand their book keeping requirements and provide assistance to ensure that their operations are VAT compliant,” said the Prime Minister and Minister of Finance.

Douglas said that another important part of the process is the passage of the relevant legislation and it is imperative that the legislation be drafted and enacted several months before the introduction of the tax to allow for meaningful consultation on the specific impact and operation of the VAT and facilitate timely registration of VAT taxpayers as well as effective dissemination of information to taxable persons and the general public.

VAT legislation is to be passed in the National Assembly by May 2010.

He said that the proposed VAT must be seen as an opportunity to completely reform the existing tax structure and VAT will apply to many services which hitherto have not been bearing their fair burden of responsibility in the country even though they are full beneficiaries of the fruits of a burgeoning economy.

“It is highly anticipated that this measure will improve the efficiency in the tax system, add some degree of equality and fairness and also provide fiscal stability as an alternative source of revenue for Government away from its heavy dependence on Taxes on International Trade. Mr Speaker, we therefore expect that, provided all of the consultations, discussions and training exercises are completed as planned, we will introduce the VAT by the beginning of November 2010,” said Douglas.

As Minister of Finance, he invited all stakeholders, interest groups, the business community, churches, taxpayers and the wider public to participate in the discussions, debates and consultations.

“It is your responsibility to be informed of all the issues and to make valuable contributions to the design of a VAT for the Federation in order to facilitate a successful implementation,” said Douglas.

In reviewing the issue of Tax Reform, which is the most comprehensive of the measures which will be undertaken in 2010, Douglas noted that in the 2009 budget address, it was announced that the Government of St Kitts and Nevis had established a Tax Reform Team within the Ministry of Finance to analyze whether the Federation should consider introducing a Value Added Tax (VAT) and to examine the technical issues of implementing a VAT within the Federation.

He said that the technical team reviewed reports from the Eastern Caribbean Currency Union (ECCU) Tax Reform and Administration Commission, as well as from the International Monetary Fund (IMF) through the Caribbean Regional Technical Assistance Centre (CARTAC) that have recommended the introduction of a VAT within the Federation.

In addition, the team has travelled to other CARICOM countries with the objective of evaluating the operation of a VAT in small open economies like that of the Federation. The Team has also studied our Tax System in depth in light of the environment in which we are now operating and the developmental goals of our economy.

The Team, after extensive research and analysis, has produced a White Paper outlining why a VAT should be introduced within the Federation and elaborating on the technical issues relating to its design in light of the uniqueness of the economic and social environment.

“Faced with the external constraint of lower revenues from Taxes on International Trade, the Government of St Kitts and Nevis, after careful consideration of the various recommendations, has decided to embark on a comprehensive Tax Reform Programme and the implementation of VAT will form an integral part of the reform process aimed at increasing overall administrative efficiency in the tax system and broadening the tax base to improve its revenue generating capacity.

“A VAT regime will provide some measure of fiscal stability as it is capable of generating reliable and consistent revenues for the Government,” said Prime Minister Douglas, who added that in many developing countries, like St. Kitts and Nevis, the tax base is narrow, so governments must rely on relatively high tax rates to generate revenue.

“Fortunately, we have managed to keep our tax rates relatively low and attractive notwithstanding our small size, but we must enhance the coverage of our taxes if we are to continue to keep our tax rates sufficiently low to attract investment and foster productivity. Successfully reforming our tax system will involve shifting from a reliance on a narrow international trade base plus a limited domestic production base to a broader consumption base. This is precisely what a tax like the VAT will do,” said Douglas.

“To offset any significant shortfall in revenue due to the introduction of a VAT at a lower rate, an Excise Tax is often implemented in conjunction with VAT. The Excise Tax is normally limited to a small range of goods such as alcoholic beverages, tobacco products, petroleum products, motor vehicles and aerated beverages,” said Minister of Finance.

He said that the introduction of a VAT is not unique to St Kitts and Nevis as a number of other Caribbean countries have implemented or are considering the implementation of a tax similar to VAT.

Jamaica, Barbados and Trinidad and Tobago have implemented VAT with positive results for several years. Belize, Dominica and Guyana have also introduced a VAT since early 2006. Our fellow OECS countries such as, Antigua and Barbuda, St Vincent and the Grenadines and Grenada have recently introduced VAT, while Saint Lucia is currently working on the implementation of VAT within the next year. The implementation of VAT in the Federation will foster harmonization in the Eastern Caribbean Currency Union.

He said that the Tax Reform Team, with technical assistance from CARTAC, has developed a detailed Implementation Schedule for a VAT. The implementation process for the introduction of VAT has a number of key components including Publicity, Public Consultation and Education; Enactment of VAT & Excise Tax Legislation; Institutional and Capacity Building of Staff Systems and Procedures; and Taxpayer Registration and Training. (Caribnet)

Minister of State , Senator Arthur Williams

Williams spoke at an investment seminar hosted by international investment firm, JP Morgan, during the Annual Meeting of the Governors of the Inter-American Development Bank (IDB).

He highlighted Jamaica’s longstanding challenges, with high levels of indebtedness and a high public sector wage bill, relative to country averages across the world.

“Jamaica’s wage bill for financial year 2009/10 was 11.75% of its Gross Domestic Product (GDP), while the global average was 9% to 9.5% of GDP. Over the last year, the Government of Jamaica paid 117,000 public sector workers some J$126 billion in wages and salaries, plus a further $32 billion in other costs of running Government,” he explained.

Underscoring the unsustainability of the high wage bill and the constraints it places on the fiscal budget, Senator Williams referred to the policy interventions of successive political administrations in response to the wage issue, notably the three Memoranda of Understanding (MOU) between Government and the trade unions, beginning in 2004.

He observed that the wage situation was exacerbated by the recent global economic crisis, which led the administration to implement a wage freeze, which will now extend over a further two years.

He also noted that, as part of Jamaica’s economic programme supported by the IMF, the Government is obliged to pay all outstanding wage obligations over the next four years.

“Other measures being taken by the Government to treat with the public sector wage bill issue include measures covered under the Fiscal Responsibility Framework, as well as the work of the Public Sector Transformation Unit,” he added.

While in Cancun, Senator Williams was also due to hold discussions with senior officials from the U.S. Treasury, as well as with representatives of several international financial institutions, including the OPEC Fund for International Development (OFID), Citibank, Bank of America, Merrill Lynch, Morgan Stanley and Deutsche Bank. He returns home on Wednesday. (Caribnet)

Finance Minister Dr Ashni Singh and President of the Inter American Development Bank Luis Alberto Moreno sign the US$24.8m Road Improvement and Rehabilitation Loan Agreement in Mexico, March 21, 2010. (GINA photo)

The US$25 million being provided by the IDB will support implementation by Government of a project aimed at enhancing urban and suburban mobility and safety for Guyanese, along with improving access to agricultural areas, by upgrading specific elements of transport infrastructure.

After the signing, Minister Singh thanked President Moreno for the outstanding role that the Bank has played in supporting Government’s implementation of Guyana’s development programme. Minister Singh also highlighted a number of other areas in which Government has implemented developmental projects with IDB assistance. These included infrastructure projects, projects aimed at improving the institutional environment, and projects aimed at strengthening public management capabilities, and they have each contributed significantly in one way or another to strengthening the Guyanese economy and improving the lives of the Guyanese people, said Minister Singh.

The Minister also indicated that he was pleased that Guyana was able to receive the honour of a visit by President Moreno two years ago, during which visit the President was able to see first hand the tremendous progress being made in Guyana, and the strong positive developmental impact that IDB projects are having in the country.

Under this US$25 million programme, the East and West Canje roads would be improved and rehabilitated with the replacement of 24 bridges and 6 culverts and the rehabilitation of 3 box culverts, thereby improve accessibility to an important agricultural zone. In addition, construction of shoulders in interurban segments, and sidewalks and other safety related works in urban areas; as well as improvements of urban crossings, and roadside amenities, including bus stops and parking areas at key locations to enhance safety and socioeconomic benefits. The Sheriff Street – Mandela roadway in Georgetown and the Cheddi Jagan International Airport (CJIA) access road would also be improved and rehabilitated, while selected localized interventions would be implemented along the carriage way between Providence Cricket Stadium and Diamond on the East Bank of Demerara with the ultimate aim of widening this road further to become a four-lane road.

This agreement falls in line with one of the pillars of the Bank’s country strategy with Guyana namely the Strategic Infrastructure Investment pillar – whereby GOG and the Bank continue to focus on improving the strategic infrastructure development agenda in support of economic diversification, and also add to the extensive Road rehabilitation and maintenance Programme undertaken by the Government of Guyana.

While in Cancun, Minister Singh has also been engaged in a series of other meetings with senior management and officials of the Bank updating them on recent developments in Guyana and mobilizing additional support and involvement by the Bank in developmental projects in Guyana. (Caribnet)

From left to right, Tim Appleton originator and co-founder of British Birdwatching Fair, Director of the Guyana Tourism Authority, Indranauth Haralsingh and Kirk Smock author of Guyana’s first travel guide during press briefing at Cara Lodge, Quamina Street (GINA Photo)

A group of eight birding and natural history tour operators, journalist, and photographers from the United States, the United Kingdom and South America, during a recent unforgettable journey, experienced some of the country’s natural wonders during a birding familiarisation tour.

The fam-tour which commenced on March 12 and concluded today gave the explorers an opportunity to discover over 356 different species of birds.

Director of the Guyana Tourism Authority (GTA) Indranauth Haralsingh said birding tourism is a high-end activity which has over the years attracted the attention of international tour operators.

He noted that Guyana has been featured in several international magazines including Birdwatch, Waterlife, Condé Nast Traveller, Guardian Unlimited, and the Sundowner.

Birding has been effective in enabling Guyana to gain international attention through the exposure of international agencies.

Haralsingh stressed that the publicity that Guyana has received over the years from fam tours has provided an incredible boost to the country’s level of recognition with the international tourism industry.

“These fam trips are the corner stone of market efforts and have helped us to build tourism over the years. We need to let persons know about Guyana’s bird watching and this is a definite approach to place the country on the international front.”

He added that bird watching is an attraction in many countries in South America and the Caribbean, and for many, Guyana is seen as a birding paradise.

Kirk Smock author of Guyana’s first travel guide said that this is his 7th fam-tour in Guyana and the experiences each time get even more interesting with new species being discovered each time.
He noted that there are currently 40 potential tour companies selling destination Guyana.

Guyana has over the years seen an influx of tour groups and visitors exploring its birding avenues.
The tours operators all expressed their satisfaction with the country’s diverse tourism product.

Tim Appleton who is the originator and co-founder of British Birdwatching Fair said that Guyana is a great country which holds potentials in its tourism destinations.

He noted that the country is different from other parts of South America as such it attracts a particular type of clientele, since it gives an opportunity to see birds never before seen in history.

Also in the group were Bill Thompson Editor of Bird Watchers’ Digest, Andrew Haffenden owner and founder of Nature Travel Specialist, a US based tour operator, Steve Banner founder of Wildlife and Wilderness a UK based operator, Pelin Karaca tour operator of Holbrook Travel, Charlie Vogt from Andean Birding, an expert on birding in Ecuador and Karen Strauss a Journalist and photographer of North American briding scene. She also edits SKETCHES a San Diego Audubon Society newsletter and Eric Lindberg a freelance travel writer and photographer.

The ten-day fam tour, a joint project by the Guyana Tourism Authority (GTA) and the United States Agency for International Development/ Guyana Trade and Investment Support (USAID/GTIS) included birding around Georgetown, Atta Rainforest Lodge, Iwokrama Canopy Walkway, Surama Village and Eco-Lodge, Rewa Village, Rock View Lodge, Karanambu Ranch, Lethem and Kaieteur Falls.

They saw birds such as the Harpy Eagle, Guiana Cock-of-the-Rock and the Rio Branco Antbird among others.

Guyana has benefited significantly from fam trips over the years organised by Wilderness Explorers and the GTA. (Caribnet)

The project will assist in the development of policies through evidence gathering and analysis of the actual impact of free movement and other forms of migration on domestic labour markets and on the provision of social services. The project aims to enable CARICOM Member States to discharge their responsibilities more effectively under the various regimes related to the free movement of persons.

The six month study, which commenced in late February 2010 is facilitated with the assistance of the 9th European Development Fund (EDF) Caribbean Integration Support Programme (CISP) and is being conducted by A-Z Information Jamaica Ltd.

The project will be implemented in CARICOM Member States participating in the CARICOM Single Market and Economy (CSME), excluding Antigua and Barbuda. That Member State is presently being serviced by a separate project.

The Consultant will be seeking information on immigration trends under the free movement of persons regime and the demand for social services such as housing health and education. The project will also investigate immigration trends under work permit arrangements prior to and since the implementation of the regime for free movement of persons. Other social impacts arising from the movement of persons under both arrangements also will be investigated. (Caribnet)

GEORGETOWN, Guyana (GINA) — A four-member delegation of Iranian geological survey experts in from the country’s Ministry of Industries and Mines met Prime Minister Samuel Hinds at his Wight’s Lane, Kingston office on Tuesday.

The members include Gold Project Manager in the Ministry of Industries and Mines Geological Survey of Iran (GSI) Dr. Mohammad Reza Hezareh, Chief of Data Base Somageh Veyseh, Director of Iran Export Industrial Development Bahram Bahram and Advisor Ali Mohammadi.

Their visit to Guyana is in keeping with the unprecedented intervention in the mining sector of mapping mineral reserves, a venture which emanated from discussions between the Governments of Guyana and Iran following a visit by President Bharrat Jagdeo to the Islamic state early this year.

The Head of State had engaged in several discussions during his visit with Iran’s Supreme Leader Ayatollah Ali Khemenei, President Mahmoud Ahmadinejad and many of his Ministers.

Given its size, unique nature and earthquake prone geological location, Iran holds reputable geo-sciences services which can be used to map its mineral wealth.

During the President’s engagements with the Iranian government, the offer was made for Iran to help in the mapping process which the President said will allow stakeholders in the mining sector to have a much more planned development of the sector with greater benefits to the country.

Upon his return to Guyana the Head of State had explained that for a very long time Guyana relied on investors to seek prospecting licences and develop projects in a ‘hit-or-miss’ manner because of the absence of mineral wealth data in the country, for which the Guyana Geology and Mines Commission (GGMC) has been making several efforts to fund.

The Commission’s Chairman, William Woolford, Petroleum Division Manager Noel Dennison and Geological Services Manager Kampta Persaud were also present at today’s meeting.

Out of the President’s visit to Iran also came agreements for a US$1.5M grant for the health sector and the removal of restrictions on visa requirements for diplomatic travel.

The Iranian Government was interested in building a health care delivery facility but was convinced to create an educational facility focusing on specialized medicine.

If successful Guyana would be able, in the long-run to man the entire health system, and at the same time, have Guyanese specialists in different areas. (Caribnet)