Hughes tells public meeting

ANGUILLA--The new Anguilla government, led by Chief Minister Hubert Hughes who is also Finance Minister, reported Thursday evening that the government is bankrupt and has to find EC$90 million to balance the budget.

Hughes was outlining the government's current financial situation at a public meeting, during which he praised the Finance Ministry's staff whom he said have estimated that revenues for 2010 will be about EC$148 million and expenditure about EC$238 million.

"Anguilla today is virtually bankrupt," Hughes said, adding that according to monthly tabulations, the government is spending EC $5 million more than it is receiving in revenue.

He said that during the last seven years, billions of dollars have flowed into and out of Anguilla but have not been a contributing factor to the island's economy.

The chief minister announced that he will travel to the United Kingdom next week to report and complain to state that they have failed Anguilla by not ensuring good governance was evident.

At the public meeting, each government member spoke on behalf of his ministry and explained what was happening in that ministry.

Minister of Social Development, Edison Baird, reported that he had visited the prison and was appalled at the conditions of the institution. He said there is extensive overcrowding and some of the bathroom facilities are not functioning. The stove is too small to cook for 57 people; there is no fire hose; the lighting is poor, and there are prisoners who have been waiting to go to court for two months or more but who have not been given a date. The governor, who visited the prison at the same time, has committed to ensuring that the prison reaches international standards.

Baird also told the audience that he plans to dismantle the Health Authority and return management of health care to the government. He said the Health Authority was too costly and the quality of service was inferior to that available on other islands that spend less per person on health care.

Home Affairs Minister Walcott Richardson spoke about labour problems. He said he has asked developers who have been accused of treating workers unfairly to show more compassion for their workers. He also encouraged workers to get together and be a part of a union.

On the issue of immigration, Richardson reported that his ministry was looking at the current policy of visas for regional nationals and, although some of the regulations may be relaxed, immigration authorities will continue to monitor immigrants and be very strict as to the persons who are allowed to enter the island. He also plans to address the monthly payments by foreigner which he described as unjust.

Infrastructure and Works Minister Evan Gumbs described some of what was said to be unnecessary spending in his department, a situation which he said he plans to address. He said he had met with the Public Utilities Commission about the high cost of electricity and promised that this will be regulated and the cost will be reduced.

Speaking about transportation, Gumbs said he has a team working on a draft policy for the use of government vehicles. This policy will aim at deterring the personal use of these vehicles as well as to imposing other restrictions. According to Gumbs, the roads are in very deplorable conditions. However, he plans to start improving The Valley roads that are badly in need of repair, when funds are available. Gumbs, who is also responsible for fishing, was assisted by adviser Sam Webster.

Edison Baird, who was assisted by a team of technical advisers from the Finance Ministry, outlined the details of the financial situation of the island. He described some of the expenditure of the last government which included salaries and gratuities for special assistants and ministers. Miscalculation in the last budget was also outlined. It was calculated that revenue should have been EC$246 million but only EC$146 million was collected. There were also unpaid invoices amounting to EC$14 million at the Finance Ministry, he reported.

Plans for addressing the financial situation include stimulating the economy. The government hopes to stimulate the economy by acquiring the Temenos project. Baird noted that two or more developers are interested in the project, and he hopes work can begin there within four months.

Also discussed was the extensive number of board members who receive payments. These should be reduced. A further reduction is to be studied to reduce the number of buildings rented by the government.

The government is also seeking assistance from Britain. The government will be requesting that it be granted more flexibility in the borrowing guidelines.

Following the presentations, there was an opportunity for the audience, of more than 200 persons, to ask questions.