Inside Finance - Volume 5, Issue 1, January - February 2009

FinanceINSIDE

Volume 5, Issue 1, January - February 2009

GRENADA

A Publication of the Ministry of Finance, Planning, Economy, Energy, Foreign Trade & Cooperatives

Ministry of Finance, Planning, Economy, Energy, Foreign Trade & Cooperatives

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

REDUCTION IN FUEL PRICESREMOVAL OF NRL FROM JANUARY 2009TAX INCENTIVE (150% TAX CREDIT) FOR BUSINESSES THAT ENGAGE IN APPROVED

STAFF TRAININGTAX INCENTIVE (125% TAX CREDIT) FOR AIRLIFT SUPPORTEMERGENCY FUND FOR HEALTHUSE OF LOCAL AGRICULTURAL PRODUCTS IN SCHOOL FEEDING PROGRAMMEImproved business climateFostering a genuine Multi-partite partnershipProvision for more planting material for Mirabeau and AshendonRevision of Consumer Price Index (CPI)Scholarships for TeachersCommitment to have at least one (1) university graduate in every

householdNational Energy PolicyCompletion of Boundary Delimitation with Trinidad and TobagoHotline for waste reduction, including complaints on abuse of

Government vehiclesEstablishment of Office of Government ProcurementPreparation for Value Added Tax (VAT) implementationSuccessful reviews of Poverty Reduction Growth Facility (PRGF) by the

International Monetary Fund (IMF)

REDUCTION IN FUEL PRICES REMOVAL OF NRL FROM JANUARY 2009 TAX INCENTIVE (150% TAX CREDIT) FOR BUSINESSES THAT ENGAGE IN APPROVED

STAFF TRAINING TAX INCENTIVE (125% TAX CREDIT) FOR AIRLIFT SUPPORT EMERGENCY FUND FOR HEALTH USE OF LOCAL AGRICULTURAL PRODUCTS IN SCHOOL FEEDING PROGRAMME Improved business climate Fostering a genuine Multi-partite partnership Provision for more planting material for Mirabeau and Ashendon Revision of Consumer Price Index (CPI) Scholarships for Teachers Commitment to have at least one (1) university graduate in every

household National Energy Policy Completion of Boundary Delimitation with Trinidad and Tobago Hotline for waste reduction, including complaints on abuse of

Government vehicles Establishment of Office of Government Procurement Preparation for Value Added Tax (VAT) implementation Successful reviews of Poverty Reduction Growth Facility (PRGF) by the

International Monetary Fund (IMF)

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Budget“STRENGTHENING ECONOMIC

MANAGEMENT AND BUILDING A PLATFORM FOR SUSTAINABLE GROWTH”

2 0 0 9

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

Dear All assisted me, and the Ministry of What can be described as a year Finance in general, in getting the of challenges has ended; and job done. I look forward to the what is being described as one of c o n t i n u e d s u p p o r t a n d “major challenges”, has started. cooperation of all. And we are all here, having

Special thanks to my family for weathered the challenges of the the love, encouragement , past year; and for this we must be suggestions, and criticisms you thankful. We must also trust that give to me on a daily basis. You we will weather the challenges are the source of my strength and ahead of us and be always inspiration. You make life an thankful for the gift of life itself.interesting experience.

The beginning of a new year is Above all, thanks to God for all t r a d i t i o n a l l y a t i m e f o r that He has done and continues to celebrating love, life, and do for me and my family. We are friendship. It is the time to thank assured that in Him there is God for wonderful family and strength and with Him all things friends, and to bring to their lives are possible.as much magic as they bring to

yours. In closing, I just want to say to everyone, may this year be one of It is within this context that I take p o s i t i v e b e g i n n i n g s a n d this opportunity to thank the accomplishments. May each day management team and staff of the hold something special and Ministry of Finance for their wonderful for you and may you support, cooperation, feedback cherish it dearly. You deserve the and encouragement in the best of everything that life can conduct of my job over the past ever bring, but you are the only year. Thanks to the Government one who can make it happen.Printery for putting up with my

sometimes 'unusual' requests. I Happy 2009 and God Bless!must say, the newsletter has come

a very long way from where we started and I really appreciate the effort that is put into it from your end. Thanks to staff at the other ministries and departments, including the GIS, who have

2 INSIDE FinanceFinance

PetraPetra

NOTICES

REMARKSEDITOR’S

REPEAL OF THE NATIONAL

RECONSTRUCTION LEVY

(NRL)The Ministry of Finance advises the general public that pursuant to Act No. 1 of 2009, passed by the House of Representatives and the Senate

th thon 14 November 2008 and 4 December 2008 respectively; and

thGazetted on January 9 , 2009, the National Reconstruction Levy Act (NRL) No. 16 of 2005 has been repealed.

stThis means that effective January 1 2009, employers were no longer required to deduct NRL payments from their employees' salaries.

Additionally, all monies that were collected for or on account of the NRL (by employers) up to

stDecember 31 2008 must be paid into the Consolidated Fund immediately.

FISH NOT PRICE

CONTROLLEDThe Price and Consumer Affairs Unit of the Ministry of Finance would like the general public to

know that Fish is not a price controlled item and is therefore not subject to the Price Control Rules and Regulations (SRO 14 of 1959).

GRENADA TO HOST

EASTERVAL 2009The Government Printery will be the host of the Caribbean Government Printers Easterval Tour, from April 9th - 13th, 2009. Schedule of Activities will be available at a later date.

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

MINISTER'S NOTEHon. V. Nazim Burke

An important element in strengthening economic management is improving the performance of the Public Sector Investment Programme (PSIP), which comprises individual projects from all sectors of our economy.

Brothers and sisters, in order for us to achieve improved performance, we must train persons across the various Ministries to better prepare and implement development projects. Therefore, the importance and timing of this training workshop can't be overestimated.

We must never forget that our development process is mainly project driven, and if we are to achieve sustained prosperity as a country, we must have within the public service a sufficient cadre of highly competent persons well gained in project cycle management to prepare projects that would attract financial and technical resources from regional and international donors.

The current global financial crisis makes this endeavour even more important as resources become more and more scarce. It is within this context that participants must take this workshop very seriously.

Brothers and sisters, over the last thirteen years we have experienced a breakdown in the capacity to:

• manage the project cycle process,

• co-ordinate the PSIP with adequate budgetary controls, and;

• impart a sense of economic direction to the public

investment programme.

In recognition of this serious systemic breakdown, the Ministry of Finance has undertaken to rebuild the machinery that would put public investment programming once again on an efficient operational footing.

This workshop is one in a series of training activities that the Ministry hopes to undertake during 2009 in an effort to rebuild the system.

Already two persons, one from the Ministry of Youth Empowerment and the other from the Project Co-ordination Unit (PCU) are currently enrolled in a 12 months projects course funded by the Caribbean Development Bank, and we are in discussions with the OAS Secretariat for Integral Development to conduct a Logical Framework Approach to Project Cycle Workshop in April of this year.

On completion of the training, we expect that participants would return to their respective Ministries energized and better equip to prepare and implement development projects, as we seek to improve the performance of the PSIP and strengthen economic management to lay the foundation for sustained prosperity.

The Project Cycle Fundamentals Workshop is aimed at helping participants develop an understanding of the basic concepts, principles and practices of project preparation, planning and management.

Resulting from the training participants would be provided with a basic understanding of the culture of project development, especially project management systems and skills and the processes involved in the preparation and planning of development projects.

In my recent budget presentation, I identified strengthening economic management as one of the key priorities of the Ministry of Finance for the fiscal year 2009.

Excerpted from Keynote Speech by the Minister for Finance

On the occasion of the Opening of the Project Cycle

Fundamentals Workshop

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

Ministry of Finance, Planning, Economy,

Energy, Foreign Trade & Cooperatives

Hon. Michael ChurchMINISTER of STATE

be implemented in so timely a fashion that they would assist small developing states like us in the English–speaking Caribbean from being overwhelmed and consumed by a seemingly already ubiquitous and socially pernicious presence of poverty?

Only recently we have had to revise significantly our growth projections for 2008 and 2009 in Grenada. The likely impact of the credit crunch in North America and increasingly in Europe on major foreign investment projects in the Commonwealth Caribbean, and no doubt in other similar economies could prove to be devastating. Currently Grenada's growth rate is below the 4.0 percent benchmark which is needed to begin to permit us to tackle the issue of poverty in modest way. The story of the other small developing states within our Commonwealth family is not dissimilar.

I reference this observation to highlight the fact that while, at the national level, individual small developing states will of necessity pursue domestic measures to blunt the negative effects that decelerated growth could have on their economies; the developed economies, by virtue of their comparative strength and resilience, should embrace as its responsibility to seek and contribute to possible solutions, given their global reach, in arresting the economic crisis, improving the global economic situation and positioning the Commonwealth's economies on a more sustainable growth path. The adoption and implementation of that type of approach would certainly while assisting in the reversal of the downward economic and growth trends that seem to be confronting us would be a huge investment in the democratic ideals and practices we have come to enjoy and relish.

The fiscal implications of slowing growth on small and vulnerable countries within the Commonwealth are no longer on the horizon but staring us squarely in our faces. Already saddled with a high debt to GDP ratio and declining development assistance, the fiscal space available to respond to these challenges is so restrictive that it could be considered non existent.

In Grenada, we have had to allocate significant amounts of scarce resources in our attempts, in the short run, to cushion the effects of the economic deceleration and its attendant hardships on our citizens, especially the poor and vulnerable. In recent times, we have had to spend in excess of 2.0 percent of our Gross Domestic Product on social safety net programmes alone.

This brings me to the second issue – high food and energy prices. I believe that we can all agree that they are perceived by most as requiring more urgent attention because when those prices shift upwards they impact people, especially the most vulnerable, immediately – sometimes with own violence that,

STATEMENT ON THECURRENT WORLD ECONOMIC SITUATION AND PROSPECTS

Excerpted from Speech to Commonwealth Finance Ministers

Undoubtedly, the world economies are facing serious challenges.

One of the many key issues in this regard is the deceleration of growth in major economies like the US and within the Euro area. Even so, these latest growth projections are not without serious downside risks that threaten the growth prospects of small independent developing states like many of us in the Commonwealth family.

The ongoing financial market turmoil in the US and in Europe, spells even more disaster and places small developing states in even greater jeopardy of stagnation and meltdown. The nervousness that is currently being experienced in our economies reside around two basic concerns that can be posed as interrogators?

Are the policy responses contemplated or being contemplated by the developed countries offer the best and most efficacious solutions to the current global economic challenges? And, are they going to

Continues on pg. 5


in turn, attracts violence from these affected social states must address their energy needs in a more groups and strata. comprehensive framework that takes into consideration

the utilisation of energy from both traditional (non-We are asked to act now in addressing the high food and renewable) and non-traditional (renewable) sources. energy prices so that we do not suffer a reversal of the Grenada has already begun to put the initial pieces gains we may have made over the years with regards to together with a view to formulate an all-inclusive poverty reduction and quality of life enhancement, energy policy. modest though they may be.

Finally, historically, small developing states have had a I am sure if we were to look around in our respective reliance on aid from developed countries. The delivery countries, we would see that our citizens are hurting. of aid by developed countries is of extreme and strategic From what I have observed from my day to day importance, maybe, more so now, with the threat of an interactions with people, I have no doubt in my mind increased incidence of poverty propelled by an that more and more people are finding it difficult to increasing deceleration of economic growth in both the meet their basic requirement for living. I am deeply developed and developing nations of our concerned about the impact on poverty situation and the Commonwealth family.implications for crime, violence and other social ills.

In the last fifteen years, we have witnessed both a At the other level, we are being asked to construct and substantial decline in the amount of aid pledged and implement policy measures that should reduce the level significant shortfalls in volumes delivered by donors to of vulnerability in society so that people are better small developing states. The policy governing aid by positioned to cope with negative economic changes that developed countries to small developing states within could arise from time to time. the Commonwealth family we believe should be guided

by two conditions, especially given the developmental The causes and consequences of rising energy prices and growth challenges facing the latter.signal a burden sharing approach. I fully endorse this approach and believe that global action is needed to halt Firstly, aid commitments made by developed states to inflationary pressures. Some of our countries, including developing states must occur at a much higher delivery Grenada, have already adopted mechanism to allow the rate.full pass through of energy prices to consumers, with targeted social safety net measures to cushion the Secondly, the proportion of aid destined for budgetary effects on the poor and vulnerable. However, poor and support must be more highly favoured than aid for economically-constrained developing states like ours project purposes.are beyond their financial limits to continue, much more

I wish to conclude by reiterating the need for concerted to expand, current safety net programmes.and collaborative actions by all players in confronting

Accordingly, we invite our development partners and the challenges that are before us. At the individual other influential players in the international community, country level we need to implement policies and including net oil exporters, to come to the table to help programmes that will make us more resilient and build resolve this global phenomenon. stronger economies. At the global level, the rest of us

would be relying on the major players in the global Additionally, at the domestic level, small developing economy to work together to ensure that the states should pursue the route of adopting and international economic and financial architecture promoting energy efficiency initiatives and policies, in improves as they assist poor countries to lift themselves the short term. In the longer term horizons, developing out of poverty.

Continued from pg. 4

"One of the tests of leadership is the ability to recognize a problem before it becomes an emergency." Arnold Glasgow

“It's not having what you want. It's wanting what you've got”. Sheryl Crowe

Quotes

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

The Monetary Council of the Eastern Caribbean The Monetary Council of the ECCB approved a plan Central Bank (ECCB) held a special meeting on 20th of action in which leading indigenous banks, together February 2009 by videoconference, chaired by Dr. with the Government of Antigua and Barbuda have the Honourable Errol Cort, Minister of Finance, come together to establish a new entity which will Antigua and Barbuda. take over the operations of the Bank of Antigua Ltd.

by Monday 23rd February 2009. All the parties involved will be working with the ECCB throughout Council discussed the financial challenges being the weekend to commence operations of the new experienced in Antigua and Barbuda resulting from entity on Monday 23rd February 2009. The names of the civil complaint filed by the United States the participating banks are as follows:Securities and Exchange Commission (SEC) on 17th

February 2009 against Robert Allen Stanford and the Stanford Financial Group. 1. St. Kitts Nevis Anguilla National Bank

The Council approved the intervention by the ECCB 2. Eastern Caribbean Financial Holdings (Bank of under the emergency powers granted under Part IIA Saint Lucia)Article 5B of the amended Eastern Caribbean Central Bank Agreement 1983. This states, inter alia, that 3. Antigua Commercial Bankwhere the Bank is of the opinion that the interests of the depositors or creditors of a financial institution

4. National Commercial Bank (St. Vincent and the are threatened, that the Bank shall, in addition to any Grenadines)other powers conferred to it, have power to take all

steps it considers necessary to protect the interests 5. National Bank of Dominicaand to preserve the rights of depositors and creditors

of the financial institution.

The Council commended the work of its Chairman Dr. the Honourable Errol Cort, Minister of Finance of This action was deemed necessary because of the Antigua and Barbuda and the Prime Minister and complaint filed by the United States Securities and Minister of Finance of St. Vincent and the Exchange Commission (SEC) on 17th February Grenadines Dr. the Honourable Ralph Gonsalves for 2009 against Robert Allen Stanford and the Stanford leading the effort to put the arrangements together.Financial Group which subsequently led to the

withdrawal of funds from the Bank of Antigua Ltd.

The Council expressed its very strong support for the maintenance of financial stability in the long term In response to this situation, the ECCB sent in two and hopes that this firm and decisive action will teams of Bank Supervisors on Wednesday 18 demonstrate to citizens its seriousness in maintaining February 2009 and Thursday 19th February 2009 and the financial system in the Eastern Caribbean has been supplying liquidity to the bank which has Currency Union in a safe and sound condition. ensured that the depositors' demands have been met.

COMMUNIQUÉ OF THE SPECIAL MEETING OF

THE ECCB MONETARY COUNCIL HELD

ON 20 FEBRUARY 2009 VIA VIDEOCONFERENCESource ECCB

14 7INSIDE FinanceFinance“... the engine room of the Public Service...”

This is a Strategic Review of the services provided by the Ports and Customs and our Regional and International Ports and Customs in the context of the general drive to raise Trade Obligationscompetitiveness levels in Grenada's Doing Business The administration of measures related to the

implementation of CSME, including the reduction of Non-environment, but specifically as a key part of our Doing tariff barriers on extra-regional goods and the acceleration of Business Action Plan. The Ports and Customs are the Stage 1 of the Single Market and Economy (Right of facilitators of Cross Border Trade. We have elevated Cross Establishment and the Provision of Services) require Border Trade to be our second priority behind business Start efficiency at the ports of entry. Similarly, our EPA Ups. We look forward to achieving some quick wins in this obligations will test the efficiency of our Ports and Customs.area.

Ports and Customs and Doing Business ReformThe Doing Business Trading Across Borders indicator measures the processes, time and cost required to import and export a standard consignment of goods by sea. According to the World Bank, Grenada ranks 3rd out of 6 OECS countries and 63rd globally. The report also speaks of delays and high costs and recommends a reduction in the number of documents, fees and charges. It recommends the streamlining of processes and the use of electronic systems for document processing. It calls for greater coordination among service providers. In the context of our Doing Business Action Plan two key areas of interest are the time taken to process entries and port charges. This is where we most need to make movement in order to improve our Doing Business ranking. We can draw encouragement from the fact that Reform and Modernization processes are already happening, both at The importance of Cross Border TradePorts and Customs. We hope to reinforce and accelerate Cross Border Trade is critical, not just from the standpoint of these processes. competitiveness, but also from the standpoint of providing revenue to run our country. (More than 60% of government's Identify the Stakeholders and Key Players in the Reform revenue comes from customs duties).Process. The stakeholders consist of the entire nation, inasmuch as Ports and Customs and our National Export Strategypretty much all that comes in or goes out are supposed to pass The competitiveness of our exports depend not just on the through our ports, and has already been intimated, standard Cost of Production, but also on the Cost of Exporting. Port of living and welfare are affected by efficiency levels, costs charges, as well as costs in terms of paperwork and processes at our ports.

form part of the transaction costs of exporting and can

therefore facilitate or undermine the efficiency goals in our The key players are those invited to be present at this

National Export Strategy.dialogue. They include the staffs of the Ports and Customs,

as well brokers, shipping agents, importers, exporters,

Ports and Customs and Cost of Livingtruckers, traffickers and institutions such as the government

Charges at Ports and Customs impact the retail prices of ministries and Bureau of Standards, etc. These are the

imported goods. A reduction in those charges, as well as service providers and users of the system.

increased productivity levels can help reduce the Cost of Living. This dialogue provides an opportunity for an Today, the Nation charges the key players with the objective review of some of these costs, including the cost of responsibility to make the system better for all. We can lay cargo handling, with a view to justifying their parameters or the basis for initiatives that can permanently improve our recommending adjustments as may be seen fit. Doing Business climate, etc.

Remarks by Hon. V. Nazim Burke at National Dialogue on Ports & Customs Operations

Participants at Consultation

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8 13INSIDE FinanceFinance “... the engine room of the Public Service...”

KEY MESSAGES • Small Entrepreneurs Development Fund ($1 million)• Economic outlook for 2009/10 is very challenging • Attempts to expand the temporary workers programme • A protocol with the social partners is essential with Canada• A regional response is required especially in respect of • Improving the Doing Business Climate

tourism and financial sector stability Supporting Tourism • Joint negotiations for airlift (with Tobago)Impact of Global Economic Crisis on Grenada• Tax Credit of 125% for contributions to airlift• Lower economic growth (0.5% projected in ‘09)• Tourism budget of $25 million maintained despite smaller • Slow down or halt of major tourism developments (hold on

capital budget in 2009 (tourism’s share of capital budget at least US$700 mn)has increased) • Projected decline in Tourist Arrivals (15-20% in 2009)

• Ongoing negotiations with hotel/resort developers on • Rising Unemployment (could be as high as 30%)ways Government can support the resumption of projects• Projected decline in Remittances (20%)

• Proposed Product Development Fund (a US$1 • Tightening of bank liquidity contribution per night by each tourist)

• Ongoing meetings with key stakeholders (developers, banks, SGU, hoteliers)

Supporting Agriculture and Food Security • Farms Roads ($10.5 million)• Farm Labour ($2.5 million)• Plant Propagation ($1.3 million)• Agro-processing Development ($2.3 million)• Rural Credit Scheme ($2.0 million)

Combating Cost of Living • Reduction in Fuel Prices (largest decrease in 10 years)• Increase Public Assistance Allowance (from $150 to

$200)• Textbook Scheme ($10 million)• Duty Free Barrels (2 per household)• Reduction in taxes on tyres for bus operators

Rising Unemployment Inflation Trends 2003-200• Promotion of Social Pact • Unemployment Benefits (not yet considered)• Farm Labour Support• Youth Upliftment Programme• Increased Scholarships

Fiscal Pressures Government committed to sound economic management demonstrated by:• 2009 Budget which is consistent with the Poverty

Reduction and Growth Facility with the IMF• Smaller but more targeted capital budget • Commitment to structural reforms (eg. doing business)• Commitment to tax reform

(VAT to commence in Feb. 2010)

Financial Sector Stability• Maintain close dialogue with local commercial banksGrenada's Response to the Global Economic Crisis• Collaborate closely with ECCB through the Monetary Stimulating Economic Activity

Council • Tax Amnesty (100% waiver of potentially $120 million of • Step up regulation and supervision of non-bank financial interest and penalties to collect $75 million)

sector by GARFIN • Removal of National Reconstruction Levy ($10 million)

Excerpts from Presentation by Minister of Financeat Consultation on Global Economic Crisis

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12 9INSIDE FinanceFinance“... the engine room of the Public Service...”

FINANCIAL Tip

he Minister of Finance, Planning, Economy, Energy, Foreign Trade& Cooperatives, Minister of State, 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

1. Pay your bills, such as rent and utilities, on time.

2. Make loan/credit card payments on time.

3. Pay your loan payments first. Then, spend money on other purchases.

4. Apply for only the credit you need. Do not apply for all the credit you can. Each new credit card counts against your credit score.

5. Never overdraw your checking/cash account.

There are five steps forbuilding good credit:

Why do we applaud a great

performance? Why not stand on

our heads or click our heels

instead? Who started this hand-

clapping stuff?

Hear, hear! Huzzah! Bravo! Excellent question. Superb, really. And ultimately

unanswerable. As Elwyn Simons, head of Duke University's Division of Fossil Primates, tells AF, "We don't know how far back it goes, not without a time machine. Cavemen and human ancestors — we don't know whether they clapped hands or not. But you don't find primates doing it unless they've been taught to do it. They do clap hands in the wild. It's not to applaud something; it's because they're frightened or want to call attention to food."

Yvette Blanchard, a pediatric physical therapist and researcher at the University of Hartford, says that human clappers are made, not born. "I think it's a learned behaviour. What I've seen babies do spontaneously, from excitement, is clasp their hands together. But the motion of clapping, I think that's a learned behaviour."

As to clapping's association with audience approval, Jay Fisher, a classics professor at Yale University, dates the custom to at least the third century B.C. "You see it at the end of a lot of plays by Plautus and Terence, where they have this word plaudite, which is an imperative [meaning] 'applause,' 'clap.'"

It's worth noting that the ancient Romans also demonstrated their approval of a public performance with finger-snapping, and that modern Canadian concertgoers signal delight by screeching at the organ-grinder's monkey.

Source: Esquire's Answer Fella

9 9

10 11

Happy Independence GrenadaYears

INSIDE FinanceFinanceContinues on pg. 16

Christmas Activities 2008

Riddle

&

Have a laugh...

FunFacts Did U Know?

Fun Facts

! That Grenada signed the Economic Partnership Agreement (EPA) on October

th15 , 2008?

! Grenada is a member of the Caribbean Energy Information System (CEIS)?

! On the first day of school, a first grader handed his teacher a note from his mother. The note read: “The opinions expressed by this child are not necessarily those of his parents.”

! A woman was trying to get ketchup out of the jar. During her struggle the phone ran so she asked her 4-year old to answer the phone. She then heard the child say: “Mummy can't come to the phone to talk to you right now. She's hitting the bottle.”

! A Panda Bear walked into a restaurant. He sat down at a table and ordered some food. When he was finished eating, he took out a gun and shot his waiter. He then left the restaurant. After the police caught up with him, they asked him why he had killed the waiter. He replied, "Look me up in the dictionary." What did the dictionary say? When they looked up the word "Panda" in the dictionary, it stated, "Panda: Eats, shoots and leaves."

Feed me and I Live. Give me Drink and I Die. What Am I? Ans: Fire

! In 10 minutes, a hurricane releases more energy than all of the world's nuclear weapons combined.

! One gallon of used motor oil can ruin approximately one million gallons of fresh water!

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Continues on pg. 14


STAFF DEVELOPMENT AND TRAININGSTAFF DEVELOPMENT AND TRAININGFinanceFinanceFFiinnaanncceeINSIDE

Hon. V. Nazim Burke, Minister of Finance, attended the Mr. Matthew Simon, Energy Officer responsible for 64th Meeting of the Monetary Council in St. Kitt's on Energy Information Systems at the Energy Division of the

th Ministry of Finance, attended a Caribbean Energy February 13 , 2009.Information System (CEIS) training on the use of As stated in a release of the Eastern Caribbean Central Renewable Energy Information Platform and Annual Bank (ECCB) the Monetary Council received the th thNetwork Meeting in Jamaica from 24 – 26 , 2009.Governor's report on monetary and credit conditions, and

provided directives and guidelines to the Bank on related policy matters, as mandated by the ECCB Agreement 1983, which governs the operations of the Central Bank.

Some of the key issues addressed at the Workshop were: Among the other matters to be considered will be the (1) Working with the Renewable energy Information impact of the global crisis on financial sector stability in platform; and (2) Issues affecting CEIS and renewable the ECCU.energy in the Caribbean. Grenada is a member of CEIS.

The Monetary Council is the highest decision-making The Caribbean Energy Information System (CEIS), is the authority of the ECCB. It is made up of eight ministers, energy information arm of the Caribbean set up to provide one from each of the participating governments. Each a regional energy information service through a network Minister designates an alternate to serve on the Council in of Caribbean countries in support of planning and his absence. Chairmanship of the Council is rotated decision making.among the members on an annual basis.

Mr. John Auguste, Senior Energy Officer of the Energy Minister Burke was accompanied by Mr. Timothy Division of the Ministry of Finance, together with the Antoine, Permanent Secretary at the Ministry of Finance.other members of Grenada's negotiating team on Boundary Delimitation with Trinidad and Tobago, Hon. Michael Church, Minister of State in the Ministry namely Dr. Carlyle Mitchell, an Expert on Maritime of Finance, attended the Commonwealth Parliamentary

Association (CPA)/WTO Regional Workshop on “The WTO, the Doha Development Agenda and the Role of

th thParliamentarians” in Antigua from February 18 to 20 2009.

The Workshop was aimed at assisting Parliamentarians in the Caribbean, the Americas and the Atlantic Region to develop knowledge and understanding of the WTO, Doha Development Agenda, and more broadly, the role of the WTO in the international trading system. The Workshop explored opportunities for Parliamentary dimension of the WTO and discussed strategies that might be undertaken within national parliaments to raise parliamentary awareness of the WTO agenda.

Minister Burke end right, & other Finance Ministers at meeting

Mr. Matthew Simon

Mr. John Auguste

13

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


Affairs; Mr. Robert Voltera, an Attorney; Mr. Richard Globalisation and Global Crises: The Role of Official Gent, a Hydrologist; and Mr. Gilbert Massel, attended a Statistics; (4) Perspectives on Global Spatial Data

th th Infrastructure; and (5) Country Experiences in Population meeting in Trinidad and Tobago from February 5 – 6 , and Housing Data Collection and Archiving.2009 to continue negotiations with Trinidad on Boundary

Delimitation.

The Grenada Government is currently in the process of Sergeant Zephyerine Charles of the Financial establishing its Exclusive Economic Zone (EEZ) with Intelligence Unit (FIU) attended a meeting with Officials Trinidad and Tobago. The settlement of the Grenada of the IRS, at the United States Embassy in Barbados on

ndboundary with Trinidad has important implications for the February 2 2009.OECS since it will also affect, by establishing the tri-

The meeting was set up upon the request of the office of point, the northern EEZ boundary with Trinidad and the FIU with regards to a number of investigations Tobago with Venezuela and the southern boundary of the currently underway.OECS with both countries.

Mr. Brian Joseph, Supervisor of Enforcement at the Mr. Oliver Joseph, Permanent Secretary on Assignment Customs Department attended the Seventh Meeting of the to the Ministry of Finance attended the Expert Group CARICOM Standing Committees of Chiefs of Meeting on the CARIFORUM-EU Economic Partnership Immigration and Comptrollers of Customs, in Suriname Agreement (EPA), in Trinidad and Tobago from February

th thth th from January 29 – 30 , 2009.5 – 6 , 2009.

The objective of the meeting was to promote greater The main objectives of the meeting were to: (1) dialogue between Customs Officials and Immigration disseminate the findings of the analyses prepared by Officers as it deals with issues related to the CARICOM ECLAC to a wider audience of regional stakeholders; (2) Travel Card (CARIPASS) as well as ongoing Border foster a deeper understanding of the required actions for Security Initiatives with the Caribbean Centre for implementing the Agreement at the regional and national Development Administration (CARICAD) and levels; and (3) promote dialogue on the development of Caribbean Customs Law Enforcement Council selected benchmarks for monitoring and assessing the (CCLEC).impact and effectiveness of the Agreement.

thGrenada signed the EPA agreement on 15 October, 2008.Hon. Michael Church, Minister of State in the Ministry of Finance and Mr. Mike Sylvester, Deputy Permanent

Mr. Curlan Gilchrist, Head of the Central Statistical Secretary of the Ministry of Finance, attended the thOffice of the Ministry of Finance attended the Fortieth Thirteenth (13 ) Meeting of the Council for Finance

Session of the United Nations (UN) Statistical and Planning (COFAP) in Barbados, from January Commission at the United Nations Headquarters in New th th27 – 29 , 2009.th thYork from February 20 – 27 , 2009.

The exercise focused on a number of issues including: (1) Environment-Economic Accounting; (2) Advances in Geographical Information Systems (GIS); (3)

The Meeting covered a wide range of topical issues including “Policy Implication for the Caribbean Community resulting from the Global Financial Crisis”; and “Preparation for the CARICOM Single Economy.”

Continues on pg. 15Mr. Curlan Gilchrist

Hon. Michael Church and Mike Sylvester

14



COFAP has primary responsibility for economic policy convened as a result of a decision by the Monetary co-ordination and financial and monetary integration of Council, in October 2008, to have the two bodies meet Member States. jointly, to discuss in - depth the impact of the

international financial crisis on the Eastern Caribbean Mr. Halim Brizan and Mrs. Margaret Frame, Currency Union and to discuss a coordinated response. Statisticians at the Central Statistical Office of the Ministry of Finance attended the CARICOM Short

thCourse on Principles of Demography from January 12 rd- 23 , 2009 in Jamaica. This training was a part of the

Demographic Analysis under a grant agreement between the Caribbean Community and the Caribbean Development Bank. The training focused on essential concepts and methods in demography, including

Measurement Issues in Demographic Analysis; Life Tables; Model Life Tables and Population Projections among other topics. A discussion was also held on the proposed Common Census Questionnaire for the 2010 Round of Censuses. Mr. Brizan and Mrs. Frame attended a Meeting on the Implementation of the DEVINFO Dissemination Software in the Region from

rd thJanuary 23 – 24 2009 in Jamaica.The meeting was a collaborative effort between the CARICOM Secretariat, the Caribbean Development Bank (CDB), and the United Nations Children Fund (UNICEF). DEVINFO is a software application that enables easy access to information and is used by the United Nations (UN) to disseminate the Millennium Development Goals (MDGs). It is accepted as the main platform to disseminate the 2010 Round of Population and Housing Census in the Region. The CARICOM Secretariat and INICEF have been facilitating the expansion of DEVINFO in the Region.

Hon. Tillman Thomas, Prime Minister, Hon. Nazim Burke, Minister of Finance, and Mr. Timothy Antoine, Permanent Secretary in the Ministry of Finance, participated in a Special Meeting of the OECS Authority and ECCB Monetary Council in St. Kitt's

th thfrom January 15 – 16 2009. The meeting was

Welcome to all new

staff who recently

joined the

Ministry of Finance,

Planning,

Economy, Energy,

Foreign Trade &

Cooperatives

Mrs. Frame 4th left (front row) Mr. Brizan 5th left (back row)

Hon. Tillman Thomas (2nd right) & other delegates at meeting


FinanceFinanceFFiinnaanncceeINSIDE

What’s Been HappeningWhat’s Been HappeningMANAGEMENT TEAM RETREAT Mrs. Marquez-Sylvester brings experience to the position The Management of the Ministry of Finance, Planning, having recently served as Debt Advisor at the Eastern Economy, Foreign Trade, Energy & Cooperatives bagan Caribbean Central Bank. She is also no stranger to the the New Year with a retreat at the Coyaba Beach Resort on Ministry of Finance having worked as Senior Policy

nd th Analyst and Budget Officer on two previous occasions. Friday January 2 , and Friday January 9 , 2009.

The key priorities of the Debt Management Unit will be:• Debt forgiveness;• Greater use of the Regional Government Securities

Market to reduce cost of borrowing;• Improved cash flow management;• Training in debt sustainability analysis.

PERMANENT SECRETARY JOSEPH ON SPECIAL ASSIGNMENT AT MINISTRY OF FINANCEMr. Oliver Joseph, Permanent Secretary in the Ministry of Foreign Affairs is now on special assignment at the Ministry of Finance for a period of one (1) year, effective January 15, 2009.

The theme for the retreat was “As a Team, We Can Make Things Happen”.

The retreat provided the forum for the Ministry to develop a results oriented workplan/matrix based the Ministry's key deliverables from the 2009 Budget. The Ministry also used the retreat as an opportunity to identify its major challenges in effecting these deliverables and determine possible solutions in overcoming these

As part of his assignment, Mr. Joseph will Head the Unit challenges.responsible for the implementation of the Economic Partnership Agreement (EPA). He will also play a key role ESTABLISHING OF DEBT MANAGEMENT UNITin external trade relations.The Ministry of Finance now has established its Debt

M a n a g e m e n t U n i t a s INTERNATIONAL CUSTOMS DAY announced by the Minister of CELEBRATIONSFinance in his 2009 Budget

thMonday January 26 2009 was once again celebrated presentation.around the world as International Customs Day.

The Head of the Unit is Mrs. International Customs Day marks the anniversary of the Natasha Marquez-Sylvester, establishment of the World Customs Organization, some who commenced duties on 55 years ago, whose mission it is to facilitate trade and Thursday January 15, 2009. travel of the world's citizen.

Mrs. Sylvester's immediate mandate is to provide More importantly, however, International Customs Day is leadership to the Unit; undertake a debt sustainability the day when the efforts of men and women working in analysis; seek debt forgiveness; and reduce the cost of customs organizations world-wide are recognized.current Government debt.

Continues on pg. 17

Management Team at retreat

Mr. Oliver Joseph

Mrs. Natasha Sylvester



Continues on pg. 18

Although celebrated throughout the world in many January 25, 2008 and ended with an award ceremony on different ways, the message is always the same - Our Saturday 31, 2009.employees do valuable work, perform an important public service and their efforts are truly appreciated. The work of During the week there were school visitations, a radio customs' officials world-wide is making a significant quiz and a visit to the Bel Air Home. On Monday January contribution to the safety, security and prosperity of all 26th, 2009, the Department hosted an 'open house' in an communities. endeavour to educate the public about the department.

The theme for this year's celebration was "Customs and MINISTRY OF FINANCE HOLD PLANNING the Environment-Protecting our Natural Heritage". SESSION WITH STATUTORY BODIES

Following from an initial meeting on December 04, 2008, This theme is very fitting for the Caribbean, especially the Minister of Finance and Senior Officers of the Grenada. Most manufacturers, inventors, policy makers Ministry of Finance, met with the Chairpersons and and even the ordinary man are conscious of the need to

Managers of all Government Statutory Bodies at the keep our planet green. The responsibility lies with

National Stadium on Thursday January 22, 2009everyone to do what is necessary to protect and conserve The Agenda for the meeting included:our environment.

1. Discussion of a Proposed Strategic Partnership Agenda between Government and Statutory The World Customs Organization Council has adopted Bodies;several recommendations on addressing environmental

2. An update on Investment Plans for 2009 and the crimes. The latest recommendation, approved in June Investment Fund;2008, calls for all World Customs Organization (WCO)

3. The development of Annual Business Plans; andmembers to continue their efforts to combat 4. The submission of Quarterly Reports (Income environmental crimes and to ensure that the environment

and Expenditure) to Government.remains a priority issue for Customs Organizations across The Ministry intends to meet will all Statutory Bodies on a the globe.regular basis.

One aspect of Grenada's Customs Department mission statement is to assist in securing the Island's social,

GRENADA ACCEDES TO AITICecological and economic environment. The Department therefore is one of the agencies, focused on the The Ministry of Finance, Planning, Economy, Foreign preservation of our environment as evident in the Trade, Energy and Co-operatives is pleased to announce formation of the Green Customs Initiative Partners by the that Grenada has become the 60th participating member WCO. of the Agency for International Trade and Co-operation

(AITIC), having deposited the Instrument of Accession A few years ago training was conducted to facilitate the with Switzerland's Federal Department of Foreign identification and depletion of Ozone Depleting Affairs, on 18 February 2009.Substance which falls under the Montreal Protocol. Application for membership was made when a delegation This was done in collaboration with the Energy Unit. The from Grenada paid a courtesy visit to AITIC on 7 October WCO is soon to release the updated Montreal Protocol Customs training manual, the Green Customs Guide and the WCO e-learning modules on the Montreal Protocol and Green Customs. The role of Grenada Customs and Excise Department in protecting the Natural Heritage starts with border control, that means all persons and goods entering our island should make a true declaration pertaining to travel, accommodation, possession, country of origin, means of transportation etcetera. It is up to the public as well to protect our island. Remember smuggling in items such as fruits from restricted countries puts us at risk. This threatens the island's position in the global market as we are relatively free of most infestation be it animals or plants.Grenada Customs and Excise Department's celebration of

2008. The delegation was headed by Honourable V. International Customs Day has evolved into a week of Nazim Burke, Minister of Finance, Planning, Energy, activities which commenced with a church service on

Grenada Delegates & AITIC Personnel


Continues on pg. 19


Foreign Trade and Cooperatives, and Ms. Sally-Anne • A representative of the Private Sector on the Private Bagwhan-Logie, Senior Trade Officer. Sector's Perspective on the Impact of Global

Economic Crisis on Grenada, the Policy Implications Membership in the AITIC would reinforce the existing and Suggestions; and links between AITIC and the Organisation of Eastern • A representative of the Civil Society on the Civil Caribbean States (OECS) to which Grenada belongs. Society's Perspective on the Impact of Global AITIC welcomed Grenada and pledged its assistance to Economic Crisis on Grenada, the Policy Implications provide trade-related technical assistance activities and and Suggestions.services. These presentations were followed by a panel discussion.

Opening remarks were made the Prime Minister, Hon. AITIC is an intergovernmental organisation based in Tillman Thomas.Geneva, with its goal of assisting less-advantaged

countries to have more effective trade-led growth through This event was consistent with Government's

personalised assistance and capacity-building commitment to foster a genuine multipartite partnership,

programmes. AITIC provides information and policy a key priority of the 2009 Budget.advice to help less advantaged countries integrate into the

multilateral trading system and the work of the WTO and PROJECT CYCLE MANAGEMENT TRAINING other international trade-related organisations in Geneva. The Ministry of Finance in collaboration with the Caribbean Development Bank and the Caribbean Consultancy Group Ltd. hosted a Training Workshop on CONSULTATION ON THE IMPACT OF THE the Fundamentals of Project Cycle Management in GLOBAL ECONOMIC CRISISGrenada, at the Grenada National Stadium from February The Government of Grenada has heard the call made by

th th9 – 17 , 2009.Senate representatives of Labour and the Private Sector

for dialogue on the Impact of the Global Economic Crisis The Workshop was divided into two parts. Part one was

on Grenada. th thheld from February 9 – 13 and was aimed at enabling participants to develop an understanding of the basic

In this regard, under the auspices of the Multipartite concepts, principles and practices of project planning and Consultative Committee, a national consultation was held management. at the Grenada National Stadium, on Thursday February

th5 , 2009.

The day's exercise saw presentations by:

• Hon. Nazim Burke, Minister of Finance on

Government's Response to Global Economic Crisis;

• A representative of the Labour Unions on the Labour

Unions' Perspective on the Impact of the Global

Economic Crisis on Grenada, the Policy Implications

and Suggestions;

th thPart two was held from February 16 – 17 and focused on Ministries prioritizing their capital project as approved in the 2009 Estimates of Revenue and Expenditure, and developing cash flow and implementation schedules to assist in the implementation of the capital budget.

Prime Minister Thomas, Minister Burke & other presenters at Consultation

Participants at Workshop

“... the engine room of the Public Service...” 19INSIDE FinanceFinance


Continues on pg. 20

The participants were made up of the Finance Officers, Access Road at the Project Site in Morne Longue St. thProject Officers and Chief Technical Officers from all Andrew's, on Friday 27 February 2009.

Government Ministries and Departments. These officers will later form teams that can effectively and efficiently WORLD BANK MISSIONcarry out their duties and tasks as it relates to project A World Bank Mission arrived in Grenada on Thursday

thdevelopment and implementation. February 5 , 2009 to present the Doing Business Reform Memorandum and conduct a detailed assessment of the processes for business registration and paying taxes in

VAT AND EXCISE TAX STEERING COMMITTEE Grenada.HOLDS ITS FIRST MEETING AND TRAINING SESSION As part of their agenda, they spent time observing the Following Government's decision to implement VAT on processes at the Inland Revenue Department of the

stFebruary 1 , 2010, and the reactivation of the various Ministry of Finance and at the Supreme Court Registry.project committees, the Steering Committee met on

thFriday 20 February, 2009.

At that meeting, the Committee received a presentation from the VAT Implementation Team on the status of implementation and the proposed policy issues. Some of the issues for which recommendations would be made to Cabinet are, the VAT Threshold for compulsory registration, penalties and schedules for zero rates and exemptions.

thOn Friday 27 February, 2009, the members of the Committee, together with the members of the other Committees established for the implementation of the VAT, were engaged in a VAT Information Session organized by the Caribbean Regional Technical th

On Monday February 9 , they met with the persons Assistance Centre (CARTAC). This session provided an

involved in administering the paying of taxes and opportunity for exchange of information between the

registering new businesses. Grenadian officials involved in VAT and Excise Tax Implementation process and officials from Dominica, St. th

On Tuesday February 10 , they present the Reform Vincent and Belize where VAT has already been

Memorandum at the Main Conference Room of the implemented. It is hoped the experiences of these

Grenada National Stadium, after which they held countries would strengthen Grenada's pre and post VAT

discussions with Prime Minister, Hon. Tillman Thomas.implementation plans and activities.

This mission supports Government's thrust to improve the Business Climate, a key priority of the 2009 Budget.

Given the VAT timetable of February 01, 2010 (next year), the Steering Committee will meet regularly in the upcoming weeks to make recommendations to Cabinet.

The Steering is made up of the Permanent Secretary of the Ministry of Finance; the Comptrollers of Customs Inland Revenue; a Representative of Her Majesty's Opposition; and a Representative from the Trades Union Council, the Grenada Chamber of Industry and Commerce; the Grenada Industrial Development Corporation, and the Grenada Hotel Association.

The Committee is chaired by the Hon. Minister of Finance, Mr. Nazim Burke.

MORNE LONGUE FARM ACCESS ROADThe Grenada Rural Enterprise Project (GREP) held a Handing Over Ceremony of the Morne Longue Farm

World Bank officials

Participants at Presentation

Designed and printed by Government Printery

Ministry of Finance, Planning, Economy, Energy, Foreign Trade & CooperativesFinancial Complex, Carenage, St. George’s

Tel.: 440-2731-34, 435-0057; Fax: 440-4115; Website: www.gov.gd; Email: [email protected]: Petra Joseph, Editor-in-Chief, 440-2731, ext.: 1108/435-0057

Cont'd from pg. 19

NATIONAL CONSULTATION ON CUSTOMS AND PORTS OPERATIONS

Minister Burke and other presenters at Consultation

Participants in group discussion at Consultation

Participants in group discussion at Consultation

Staff Development and TrainingStaff Development and Training

Documents

Inside Finance - Volume 5, Issue 1, January - February 2009