Prime Minister Outlines Measures to Minimise Economic Decline

Contact: Rose Marie Harris  

Tuesday, September 25, 2001 - Prime Minister and Minister for Finance and Economic Affairs Honourable Dr. Kenny D. Anthony told the Saint Lucia House of Assembly on Tuesday that Government was moving swiftly to cushion the island’s economy from the impact of the global recession and the likely economic aftershocks of the terrorist attacks on the United States. 

In a statement to Parliament, the Prime Minister explained that the Saint Lucian economy experienced severe contraction during the first half of this year.   Based on the current trend, he noted, it is projected that the economy is likely to experience further contractions unless certain policy measures are implemented immediately.  He proceeded to outline the Government’s plans to stimulate the economy and manage its affairs during, what he called, “these turbulent times”.

“Government will immediately reduce travelling on official business by public officers and government ministers.  Travelling will be restricted to a minimum.    Government will institute an immediate freeze on new employment in the Public Service and on all proposals for new travelling posts,” he said.

Other measures include the suspension “until further notice and after discussion with Public Sector Unions, the current policy regarding the granting of increments”, encouraging banks to reduce interest rates and “generally the cost of doing business”, and continuing the policy of stimulating the economy by allocating further sums for infrastructural development. 

“An extra budgetary sum of EC$6 million will be injected in the next few months to boost employment in the short run, especially amongst unskilled workers,” the Prime Minister added.

Dr. Anthony told the St. Lucia House of Assembly that government will inject a further sum of EC$16 million into the banana industry, part of which will go towards the establishment of a team to spearhead the revitalization of that sector.    This boost will also ensure that more credit is available for inputs and packing sheds.

The tourism industry will also receive immediate government assistance, the Prime Minister revealed.  “To cushion the long-run impact of the decline in the tourism industry and reverse the current trend, an additional $3.7 million will be immediately provided to the industry for marketing.  This amount may well be supplemented.”

Finally, he warned, government will tighten up on the granting of  “ad hoc concessions” to ensure that potential revenue is collected.

In closing his statement to the House of Assembly, Prime Minister Anthony appealed to the public: “Fellow St. Lucians, our watch-words over the next twelve months must then be expenditure containment and strategic investment.  Let us concentrate not so much on the things that we want, but the things that we need.  This applies as much to government as to the difficult and necessary corporate and individual decisions that must be made at this time, to harness all our resources in one collective effort of economic survival.  We must be resolute and resolved as we enter this period, for further challenges may yet arise to test our determination.”

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