Development Bank Bill Passed and Jeannine Compton Sworn-in at Final House Sitting
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Contact: Chris Satney
Tuesday, December 18, 2007 – A bill to re-establish a development bank for St. Lucia was the subject of heavy debate in the House of Assembly Tuesday. Several years ago a previous St. Lucia Development Bank was merged with the National Commercial Bank, creating the Bank of St. Lucia.
The new administration, then in opposition disagreed with the move, and made the reintroduction of the bank a campaign promise, ahead of the General Elections of December 2006.
Presenting the bill, in what was the final parliament sitting for 2007, Prime Minister and Minister for Finance Honourable Stephenson King outlined the benefits of the bank's re-establishment. He said the institution will provide for the participation of the people of St. Lucia in developmental activity in the country.
The revived institution, he said, would make it easier for entrepreneurs, farmers, first home buyers and students pursuing higher education to receive the necessary funding for their various ambitions.
“An institution designed to help the poor people of this country and give them power and authority in the land to acquire things for themselves. It is our hope that once this piece of legislation is passed in this chamber, the bank will come into full operation by march 2008. We are now examining a location within the city where the bank will be located to commence its operations,” said Prime Minister King.
The bill did not receive the blessing of the Opposition, with the Member of Parliament for Castries East Honourale Philip J Pierre stating that the move would be a backward step, and that much of the services a development bank would provide, were already being provided by a number of government facilities, such as the Small Enterprise Development Unit (SEDU) and the James Belgrave Fund (BELFund).
The new St. Lucia Development Bank will be established with an equity of $20 million, divided into four million shares of a par value of five dollars each.
“Twenty million dollars is not adequate equity for the capitalisation of that bank, if it is to fulfil all the promises that the Prime Minister has spoken about. There is a more fundamental question of the ability of the bank to compete in the financial market, as it now stands. Most financial institutions are being remodelled, redefined and have taken a step from small banking outlets to larger institutions. Several banks in St. Lucia have merged and only recently two others have mentioned their intentions to do the same,” said the Castries East MP.
The day's proceedings also saw the swearing-in of the the lower house's newest member—the Honourable Member of Parliament for Micoud North Jeannine Compton. Miss Compton won the by-election of November 26th 2007 over four other candidates, in a seat made vacant by the passing of her father and former Prime Minister of St. Lucia, the late Sir John Compton. |
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