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Thursday 30 December 2010

WE’LL TAKE A CUP OF KINDNESS YET!

This is my last article for 2010 and it has been a great opportunity, indeed a great privilege, for me to present my views and comments on a number of important national issues during the past year. As with everything in life there will be those who will like what you do and those who won’t. It was never my intention, indeed not even my wish, to please everyone --- that in and of itself is an improbable task. However, being the eternal optimist that I am --- you will notice that I did not say an “impossible” task. To be quite truthful, the way I view it, even the fact that someone takes the time to read my rather long and often arduous articles is adequate satisfaction for me. And I am indeed flattered that there exists a diverse and loyal readership that looks forward to my weekly columns. I thank you all equally for your kudos as well as for your criticisms. This is, believe it or not, my thirty-eighth article since April 16, 2010.

This year as a politician I experienced my second defeat at the polls in thirty years of active politics. As on the previous occasion, more than twenty-five years ago, I have not considered my defeat a reason to abandon my service to Anguilla --- but an opportunity to serve my country from another platform --- another vantage point. I have therefore chosen to write and share my thoughts with those who are willing to read them. And I rebuke the Chief Minister’s oft-quoted statement that “if you want to hide anything from an Anguillian --- just put it in a book!” For him to repeat this as often as he does is as unpatriotic as his readiness to charge Anguilla with Angola’s indiscretions. In 1984, Anguilla did not have a viable newspaper --- so we used leaflets and pamphlets to circulate our articles. On most occasions the writings were posted anonymously. This was not a good thing! But it occurred during a period when politics in Anguilla did not yet enjoy the comforts of expression we have today. Radio Anguilla at that time was the only established broadcast media and if you were in Opposition you had very limited access.

Today in the wake of “Talk Your Mind” we are all privileged to have more than five radio stations; two television stations; various talk shows; interview programs, and; The Anguillian and The Light, our two local newspapers. My column for the most part is intended to keep the Government on “its toes” and to do so under my own name --- not anonymously or cowardly using the blogs and the shelter of “parliamentary privilege”. Anything that I write in my column I stand by as the truth --- without fear of being sued for libel or slander. I challenge those persons who stand up in the House of Assembly and continue to use lies, misinformation and innuendos --- to show the courage of their conviction and say those same things in the print and broadcast media. It is high time that such persons be exposed for what they are --- plain liars and/or cowards. Let me thank the Management and Staff at the Anguillian for bearing with me every week.

Over the last three weeks I listened to a few segments of the Anguilla House of Assembly with both interest and disgust. The Chief Minister and Leader of Government Business continues to believe that his personal attacks on me hiding under the protective “petticoats” of the House and its privileges --- can change things in Anguilla. He spent the entire ten months since his ascension to Government blaming the AUF Government, blaming the UK Government, blaming the Governor and blaming me for Anguilla’s plight --- and did nothing over that entire period to positively improve our lot. The result has been that ten months later he now finds himself in a situation where he either needs to impose drastic and austere measures on the people he was elected to serve or come up with a plan/proposal to satisfy the Foreign and Commonwealth Office (FCO) that Anguilla will be able to meet its commitments without exposing the British Government to any contingent liabilities. To put it simply, after the Government of Anguilla has made certain decisions the British Government does not want to be forced to come in later and bail us out with its taxpayer’s money. Perhaps this can be the time for the Chief Minister to unveil the elusive plan that he boasted about during the recent general election campaign fooling many Anguillians that he could turn Anguilla around in a matter of weeks.

The Leader of the Opposition, the Honourable Evans McNiel Rogers and his colleague the Honourable Othlyn Vanterpool must be commended highly for the professional manner with which they dispensed with much of the “nonsense” which categorized statements made by the Chief Minister and some of his colleagues during the recent sessions. Fortunately, other members of the House including the Elected Member for Road North, the Honourable Edison Baird made excellent contributions as well. The Parliamentary Secretary, however, got up in defense of his father’s strategy and suggested that if the British Government could borrow up to the high limits that have been reported in the international media --- they had no moral authority to prevent Anguilla from borrowing. The naivety of this rationale from the Parliamentary Secretary lies in comparing Anguilla to the United Kingdom.

While I totally agree with the Parliamentary Secretary and his father that we need to borrow --- the fact that we expect the British Government to meet our shortfalls also requires that we must present a case that meets their approval. The British Government continues to increase taxation on its citizens; to reduce the size of its public service; to cut back on the delivery of critical services to its people, and; to claw back on concessions to its private sector. However, while the U.K. is borrowing it is making its own citizens pay for that borrowing as well. The Chief Minister since he allowed himself to fall into this position, as a result of his preoccupation with things irrelevant to “fixing the economy” --- he must now make a credible case to the British Government. He cannot simply bury his head in the sand like an ostrich as if to shut out impending threats; or stomp his foot into the ground and charge forward like a “raging bull” impetuously and recklessly into the steady sword of the skilful matador.

The Chief Minister must settle down and explain the differences in the Anguilla situation and outline to the British Government the negative impacts of its recommendation on a small and extremely vulnerable state like Anguilla. But most importantly he must also be able to present a sound proposal as to how he intends to retire the deficit and restore fiscal and economic stability over the next three years. Such a proposal may even suggest that four rather than three years would be more feasible for returning to a balanced budget position. There needs to be dialogue rather than defiance --- reasoning rather than posturing. And while it may be late I strongly suggest that a defensible case can still be made.

Many persons have asked me whether I believe that the British Government will authorize the budget. My response has been that “I would hope so!” And my main reason for expressing such a hope is that if that does not happen I fear that the Chief Minister and the Parliamentary Secretary will once again return to their comfort zone by attacking the British and calling for Independence. I also need to make the point that if the FCO does not authorize the budget promptly the Government can still proceed for another four months without having passed one for 2011. This allows us a further opportunity for dialogue and reasoning. Will the Chief Minister seize this opportunity or will he once again provoke panic, alarm, subversion and diversion on the streets and in the prison cells of Anguilla?

All these things must concern us as we move into a New Year. We cannot afford another period of ineptitude in Government in 2011. Will the Chief Minister take the time to consider the admonition of the Leader of the Opposition and adjust his “style, approach and attitude” in dealing with the British Government, with the Governor and with the Public Service? For while we hear many of his supporters making the claim that “we need Hubert to deal with the British” --- the record and history has proven irrefutably, that Hubert Hughes has never gotten anything out of the British with his approach --- except of course his own political demise. On the other hand the record of the past Government in terms of its relationship with the British has been one of mutual respect and partnership in the governance process that has led to many positive and constructive outcomes.

So while this year was replete with criticisms of the past Government and its management of the economy --- the present Government must thank the Anguilla United Front for the visionary initiatives from which it has benefitted over the last ten months. Let me name a few:-

• The AUF created a vibrant economy as a result of a deliberate plan to incentivize private sector investment which created thousands of jobs and business opportunities leading to the building up of substantial Social Security Fund which the present Government has used as a source of financing for its budgetary shortfalls. Without this facility the Government would have been hard-pressed to meet many of its commitments over the last months.

• The AUF initiated the Policy Based Loan (PBL) from the Caribbean Development Bank that has enabled the present Government to consolidate its loans and manage its debt obligations with more sustainable arrangements. Without this loan the Government would have been unable to satisfy its borrowing needs and reduce its debt service.

• The AUF established a separate Inland Revenue Department along with appropriate IT systems to create more effective revenue collection. Without this integrated tax collection system the present Government would have been unable to get accurate data on the performance of the economy and make informed fiscal decisions.

• The AUF signed on to the Caribbean Catastrophic Risk Insurance Fund (CCRIF) to ensure that Anguilla has a facility that can provide a source of guaranteed assistance in the event of a natural disaster. Without this assistance in the amount of 4.3 million US dollars, Hurricane Earl would have placed considerably more stress on an already struggling economy.

• The AUF, despite some objection from the present Chief Minister while in Opposition, provided ways and means to facilitate the timely completion of the Viceroy Resort. The AUF also insisted that there was need for more than one major project to allow for more certainty in the delivery of new jobs and business opportunities in the operational phase. This week the property has over six hundred guests and almost as many employees. Without the Viceroy Resort, the failure of the Flag would have had a more disastrous effect on our economy.

• The AUF decided as a component of its access strategy to improve the pier facilities at the Blowing Point Ferry Terminal as a result even as we await a more modern terminal building the facility provides a gateway for more than sixty percent of all passenger arrivals to Anguilla. Without the improvements at the pier facilities the impact of the decisions of our major international carrier to reduce flights to Anguilla would have been devastating to our tourism industry.

• The AUF decided to expand the Clayton J. Lloyd International Airport (formerly Wallblake Airport) to facilitate larger commercial carriers and more direct private jet arrivals into Anguilla. This week in particular, even in the midst of the recession, we have record private jet landings into Anguilla up to some fifty movements a day. Lloyd’s Aviation Services are doing an incredible job keeping up with demand. Without this expansion Anguilla would not have been able to facilitate this new trend in air travel and the upper end Tourists that visit our island. And we would still have been waiting for Hubert’s “pie-in-the sky” Airport in Brimegin.

This list is not intended to be exhaustive but rather to illustrate that the Chief Minister and his colleagues have not brought any new ideas to the table for “fixing” this economy. We the members of the AUF are proud of the contribution our Government made such that even today it is assisting the present government to survive this challenging period.

So even as we wind down the Old Year and usher in 2011 we will not be deterred by the “blame game”; we will not be fooled by the circus acts; we will not cry foul because of the lies; we will not take things personally --- we will rally on to the higher cause of moving Anguilla forward. And despite the bitterness that can grow within us in the words of the ageless song by the eighteenth century Scottish Poet, Robert Burns for this season: “We’ll take a cup of kindness yet! …. for auld lang syne!”

Victor F. Banks
Sachasses Estate
December 28, 2010

Saturday 25 December 2010

HYPOTHETICAL??

We know that the present situation on the island is dismal and everyone is hoping for a quick resolution that would bring back hope for the future. It is Christmas time though and this political season is coming to an end, I am hoping good cheer for every one; even if Santa doesn’t drop by. We all must thank God that even in this severe crisis, there is no outcry, nor serious alarm in the employment situation on the island. It seems like most people are employed and at this time are quite happy, being able to take care of their families, at least having an income, that would obviously bring some joy to the home for this festive season because our old friend is never really serious about good cheer, he all about Ho! Ho! HO!

Here is where we are; we have a very weak government in practical terms, as such, from a political stand point this breeds instability on the inside and from the outside it creates a shadow which would indicate that the government is not quite in control. The present situation does not stimulate hope for the people of Anguilla going forward. This government has managed to put its self in a very precarious position both with the British and from a governing stand point. It has weakened it own hand by isolating the only experienced and well capable representative aligned with the government, that is Eddie, so most likely, as we enter a new year we will see a further weakening of the government which will continue to have serious implications for the country. A carefully review of the budget speech of the Honorable Eddie Baird brought to the surface a Hypothetical; is Mr. Baird daring The Honorable Chief Minister who holds the most important portfolios to perform?

Mr. Baird seems to be indicating that the island is held hostage because of the lack of function in those ministries for the economic viability of the country, actually he seems to be reminding Hughes that as minister of finance and the economy, he should be a man of action to change the economic condition of the country. Now, Mr. Baird was clear that he is no David In the function of the House of Assembly, he is more like a Goliath but showed how skillful he is on the sling shot, he warned, that in spite of the environment he sees himself as a lead player in the recovery of the country and highlighted his nearly 17 years being elected. Then The Honorable Member form Road North offered his distinct respect for those members of the House who are elected, seemingly wanting to indicate that he has some restraint in offering equal respect for persons who are unelected but seem to want to heavy lift the responsibilities of government, and lead by proxy. Now, when David fired his sling shot he got the target dead on, so it leaves me wondering if Mr. Baird was firing that simple stone to kill two giants. “Hypothetically” Is Mr. Baird telling the honorable Parliamentary Secretary Hadyn Hughes to get elected and he will have his respect and telling The Honorable Chief Minister to turn the Ministry of Finance and the economy over to him ‘an economist” and he would make a difference in the economic situation of the country? It was Mr. Hughes who asked for a reshuffle in ministries, maybe Mr. Baird actually agreed but did not like the options!

By: ejharrisxm

Thursday 23 December 2010

“--- AND A PARTRIDGE IN A PEAR TREE”

Let me take this opportunity to wish all Anguillians, residents, visitors and those persons who take the time to read my column every week the very best for Christmas and the New Year when it comes. 2010 was a most challenging year and we now have the opportunity to reflect on all of our successes and our failures; our deeds and our misdeeds; our correct actions and our mistakes, and; our satisfactions and our regrets. I am flattered by the fact that so many persons look forward to my column every week; I am humbled by the kind remarks I receive, and; I am encouraged to press on by those who would want to silence my views and my democratic right to express them with as much regularity as I deem appropriate. It is all testimony to the fact that democracy is alive and thriving in Anguilla.


A major exercise in democracy took place in Anguilla earlier this year as eligible voters went to the polls to choose representatives in the various constituencies. The result was a majority government comprised of members of the Anguilla United Movement led by the Hon. Hubert B. Hughes. That choice came at a time when Anguilla like the rest of the world was in the throes of a recession and as a consequence the main issue was the economy and concerns associated with the proper management of it. The plurality that made that choice were convinced, based on campaign promises, that their selection would deliver Anguilla --- today some of those very voters are expressing the view that they made a mistake. The repeated complaint being that “we were fooled!”

As we go through the final and most critical governmental act of 2010, namely, passing the budget, some very poignant questions as to our plight as a country arise. They become even more poignant when placed against the backdrop of promises made by the present administration before and after ascending to office --- that they would not raise taxes. For the entire ten months of this administration they have stumbled from one controversy to the other while at the same time trying to blame the past Government for all its woes. As I continue to strive in this column to point out these errors and perhaps “shame” the Government into the right direction I am being considered an impediment to their ability to govern. And it remains a puzzlement to me how “so-called” intelligent people could openly express the view that things would go better in Anguilla if I did not write a weekly commentary on the issues.

I am happy to point out some of my successes that made a difference in the manner in which the Government has dealt with some of its decisions as follows:-

• In my April 16th article, “Please Say It isn’t So!”, I spoke about the New Social Security Board planning to move Social Security Deposits from the local banks. The result was that that plan was stymied and to date no such transfers of funds have taken place.

• In my May 14th article, “Comments on the Brimigen Project Proposal” I spoke out about “incongruous and illogical arguments being put forward to support the building of a new airport in Brimigen”. The result is that today the key decision makers in Government have abandoned that proposal ---and are in fact coming around to the wisdom of extending the present facility.

• In my May 21st article, “Comments on a planned hostile takeover of ANGLEC” I spoke out about actions being pursued by the Minister responsible for Electricity and the Chairman of the Social Security Board to orchestrate a high-handed, unethical and unfair takeover of the ANGLEC Board of Directors. The result is that the stability of ANGLEC has been assured and a much more sensitive and sensible approach is being adopted.

• In my May 28th article, “Social Security Again” I spoke about what was being termed the “Bradshaw Style” management approach by the new Chairman of the Social Security Board. The result was a softening of that approach and along with other developments I also highlighted, the virtual absence of the Chairman from meetings --- and rumors of his resignation.

• In my June 4th article, “An Anguilla Day Apology” I spoke about the Chief Minister’s shameful rant on Anguilla Day; his apology for the late Premier Robert Bradshaw, and; his disrespect for the heroes and heroines of the Revolution in attendance and others listening on radio. The result was I received a number of calls from heroes and heroines of the Revolution and other Anguillians thanking me for my intervention on their behalf.

• In my July 16th article, “A Picture Paints a Thousand Words”, and other subsequent articles I spoke about the “three ring circus” being used to distract focus away from real issues and the use of “selective transparency” to give the appearance of openness. The result has been a more cautious approach to political victimization and occasional public consultations, however, usually after the fact.

• In my August 14th article, “Hush Ya Mouth!!” and my August 20th article, “Cockroach Got No Call In Fowl Nest”, I spoke about the Cap Juluca fiasco and the “smoke and mirrors” debate on MOA’s versus MOU’s. The result was that the Government was forced to conclude an agreement with the Cap Juluca ownership and even though it is less favourable than the MOA signed by the AUF Government, jobs and business opportunities for many Anguillians were maintained.

• In my September 24th article, “… So Shall It Be In The End”, I spoke about the Parliamentary Secretary making a press statement that he had signed an MOU with new owners for Viceroy. The result was that that travesty of good governance was exposed and an effort is now being made to correct the situation.

• In my October 1st article, “Joy Cometh in the Morning”, I spoke about the “circus master”, the Parliamentary Secretary, causing a nationwide panic claiming that the Governor had asked the Chief Minister to resign immediately and call fresh elections. The result is that a number of persons are now more informed about the constitutional provisions that govern such actions and can speak intelligently about the Governor’s powers in this regard.

• In my October 8th article, “Physician! --- Heal Thyself!”, I spoke about poor governance exhibited by the Chief Minister in authorizing the Chairman of the Social Security Board to enter into a loan agreement without the appropriate due diligence and without the required Executive Council and House of Assembly approval. He further authorized that both present and future Social Security funds be used as security for the loan. The result is that the Chief Minister is still trying to find a scapegoat for his actions; the Chairman of the Social Security Board is exceptionally quiet, and; rumours of his resignation still persist.

• In my December 3rd article, “Dunces or Liars” I spoke about the outcome of the Chief Minister’s approach to dealing with the UK Government including the FCO Minister as well as the final acceptance by both the CM and the Parliamentary Secretary that there is a “global recession”. It has been a recurring theme throughout my articles that the Government needs to tell the truth about our national situation. The result is that the Government has now come around to facing up to reality and after raising expectations unnecessarily must now resort to telling the truth.

• In addition to the foregoing specific results from the articles in my column there have been the constant awareness by the Government that every week I will be in their face with some critique (not necessarily criticism) of their actions. And as I pointed out in my November 5th, article, “You ah gon tired fi see mi face!” I intend to be here all the time doing just that --- as God’s grace and providence allows. I believe that they have come to the realization that I will not be stopped. As a matter of fact I have been told that the Chief Minister on “a point of order” during the Leader of the Opposition’s presentation referred to me as the “demented leader of the Anguilla United Front”. Such statements only reinforce my view that my comments are having effect. And as a friend and a former Chairman of the Anguilla Democratic Party used to say to me (in the colloquial vernacular): “dem don’t throw stones at empty mango tree!”

I have listened so far to three contributions to the budget address in the House of Assembly up to the time of writing this column. Two made by the member of the Opposition and one by the Minster of Social Development. I was impressed by all of them. They all said many important things about the budget, the budget address and the way forward. The Honourable Othlyn Vanterpool, among many other things, spoke about the need to focus on how we will take Anguilla forward during these challenging times rather than talking about spending scarce resources on unfounded Commissions of Inquiry. Also making the point that such inquiries should be comprehensive and not selective --- all governments should be included.

The Honourable Leader of the Opposition Evans McNiel Rogers, among many other things, spoke about the importance of style, approach and attitude in Leaders when dealing with important national issues particularly in challenging times. He went on to demonstrate that the Chief Minister was not using the correct strategies to achieve important national objectives, particularly with regards to getting the support of the public service, British government and foreign and local investors in that endeavour.

The Honorable Edison Baird, among many other things, spoke about the importance of growing the economy. He explained that the revenue heads for our central government budget are very dependant on a tax regime that is based on consumption and fees for services. As a result when the economy is sluggish these revenue sources do not perform sufficiently to meet expenditure requirements. His position being that one needs to understand what is required to increase growth to meet the demands for services. In this regard he pointed out that in times of challenge a Government must provide support to companies that provide jobs and business opportunities.

All these contributions show an awareness of the challenges facing Anguilla at this time and the importance of focusing on getting the job done rather than seeking to apportion blame. How embarrassing can it be for a Chief Minister to make a grossly false statement that Anguilla is the tenth most corrupt nation in the world and then later be accused of lack of patriotism when it is discovered that he did not have the national pride to insist that it had to be Angola and not Anguilla?

It is clear from the debate thus far that the Opposition and the Minister of Social development understand that even though taxation and cuts in expenditure are not the entire answer --- some sacrifices in these areas must be made. And as a consequence while they are not completely opposed to all the tax measures --- they like me have a number of questions with regards to what is being proposed.

A number of questions may be raised on some of the major tax measures being proposed. For example:-

1. Will the Property Tax increase also be made equitable with the introduction of the Bradley Report recommendations on location, use and market value?

2. Will the 7% levy on petroleum products be on top of the customs charges already in place and will it be charged at the pumps or the port of entry?

3. Will the interim Stabilization Levy have a cap like Social Security on income earned; how will the self employed be made compliant, and; how will their contribution levels be assessed? Will all these funds go into the consolidated fund?

The Chief Minister and his colleagues have wasted a lot of precious time arguing with FCO officials about their unwillingness to carry out certain harsh measures rather than taking the time to make a strong and objective case for their position. I wholeheartedly agree with the CM’s position not to make drastic reductions to the size of the public service and further salary cuts. However, there is no use going into public consultations at this late hour hoping to force the hand of the UK Government --- you must show the British how you intend to bridge the budgetary gap without taking such measures. This is what should have been taking place over the last ten months not trying to fight the British. I am confident that the British will listen to a “well thought out” plan matched with an appropriate strategy for achieving it.

Will the proposed budget receive the approval of the British Government in its present form given these refusals by the CM? Or will we be forced to enter the New Year with the statements of hope made by the Chief Minister as he closed the Budget address as follows: “in a few short months Madam Speaker, the call to work will occur and our construction sector will again be vibrant with activity. Those heavy equipment owners who lack for business and did not license their trucks and other equipment in 2010 will be happy to license the same in 2011.” To which statement one his former supporters who had heard such promises before muttered barely audible --- and under his breath: “Yeah Right! --- and a partridge in a pear tree!”

Victor F. Banks
Sachasses Estate
December 21, 2010

Saturday 18 December 2010

“TEARS OF BLOOD, A SMILE OR A HAND SHAKE”

If you were one listening to the Budget speech by the honorable Chief Minister on Tuesday afternoon, you might have seemingly felt the compassion in his voice at some junctures. Mr. Hughes seems to be experiencing real grief over having to introduce new taxes which he deems would bring sever hard ship on a people he knows much better than the British. But had corresponding conviction, daring FCO, and not willing to cave to the pressure to satisfy the British government in their attempt to inhibit his government from succeeding. Here is a man who would seemingly rather “cry Tears of Blood” than to submit his pride and his country to the total grasp of the British Government. An act of submission, reconciliation or pure determination!

Are we going to see at some point the Honorable Chief Minister and the Governor surrender their egos for “a Smile or a hand shake” for the good of the country? The lingering revolt against imposing tough measures to return the country to prosperity is a major problem for Mr. Hughes. The task of slimming down government and balance the bloated budget is much more than the bargain at the polls. Whether the measures proposed are fair or not to an incoming government, effort must be made to bring the island back on a path of sustainability and financial stability. By now this government should have done their own analysis and proposed their own alternative measures if those imposed by the British are too severe. The pull back without clear alternatives is simply a very slow demise that could well be of the AUM government or our national dignity. Obviously we don’t have access to liquidity or the power to inject new life into the economy, therefore we must do what is necessary to stabilize the situation; this calls for more that strong patriotism or determination, but sacrifice. This is the time for wisdom to be the compelling force, with a solid four years still on the AUM calendar, this is the time for the bitter pill, and certainly that taste would diminish by the time the next election comes around, certainly, if the economy rebounds and in our history this would be simply an unpleasant memory.

From an administrative standpoint one cannot look at the country from the premise of a five year election term, the country itself, stand way above the elected term of office of any government. It indeed might be unfortunate for this government to be faced with the undesirable task of correcting a terrible situation, but if they are serious about governing, they must execute, no matter how undesirable, as long as the potential is there for best results for the country it is the correct thing to do. Posturing for public support is actually an obstacle in the meeting of the minds between the Governor and The chief Minister to swing the country in the right direction.

Let’s be clear, as I see it, the present stalemate with this Governor is an act in futility. The first eighteen pages of our constitution speak about protection of the Fundamental Rights and freedoms of the people; thereafter this document empowers the function of the Governor to execute authority over government in specific terms. Quote; “The Governor of Anguilla shall be appointed by Her Majesty and hold office during Her Majesty’s pleasure for the purpose of administering the Government of Anguilla, the Governor shall have such powers and duties as are conferred or imposed on him by this constitution or any other law and other powers as Her Majesty may from time to time be pleased to assign to him. The Governor shall be responsible for the conduct (subject to the provisions of this constitution and any other law) of any business of the government of Anguilla. There shall be an executive council in and for Anguilla which shall consist of the Chief Minister and not more than three other ministers. The Governor, acting in his discretion shall appoint a Chief Minister of the elected members who, in his judgment is likely to command the support of the majority of the elected members of the Assembly. No court shall enquire into the execution of the powers of the governor.

It is very clear that our constitution is about the authority and discretion of the Governor and not The Chief minister. Our Government is explicitly about consultation in accordance. The word accordance is used directly and subjectively in reaching conclusions on specific action by the Chief Minister, that word indicates that every time a decision is made by the Chief Minister, it is subject to whether or not the Governor agrees. And the word discretion is used most directly in the exercise of the power of the Governor in the broadest form of his judgment. This is the document we have to live by. There is no battle to be won. Staging a fight with the Governor is vain ambition and a dishonor to Her Majesty, and will prove in the long run to be very painful for AUM. There is no alternative, The Minister for Overseas Territories reminded the Chief Minister in his response letter to a request to have the Governor removed and replaced, that he is aware that this is a usual practice by Mr. Hughes, as similar requests were made in the 90’s to remove Governors Shave and Harris. Mr. Hughes must be commended for his determination and urge to wage battle; but at some point wisdom must dictate that if there’s no winning strategy, the country loses.

By: ejharrisxm

Friday 17 December 2010

“THE EVIL THAT MEN DO LIVE AFTER THEM”

“Thanks Bradley!”

This week I am honored to accept a contribution for my weekly column from a good friend and supporter, Mr. Ashton N. Bradley. Mr. Bradley has also been a loyal advisor as well as a former Chairman of the Anguilla Democratic Party that I had the privilege to lead. Mr. Bradley had a distinguished career in finance and particularly revenue systems in Canada before returning to Anguilla some eleven years ago.

But before I turn you over to Mr. Bradley, let me take this opportunity to congratulate Klassique Academy of Dance for its excellent recital “Unleashed” which took place over the weekend. For yet another time they thrilled large Anguillian audiences with their exceptional talent and breathtaking performances. It was a breath of fresh air to see a large group of youngsters of all ages (and so-called “adults” --- because at my age everyone seems so young) coming together to put on such an entertaining event. It would be dangerous to single out anyone --- but I would risk heaping kudos on the “twinkle toes, the twinkle babies and juniors” for the part they played and as a consequence their instructors and parents. I am strong believer in the importance of music and the performing arts, in fact the Arts in general, to wholesome national development. And while I salute the Founders and Directors of Klassique Academy of Dance on this occasion I am very much aware of the great work other groups are doing as well. They all deserve our support.

Let me now turn you over to Mr. Ashton Bradley:-

“THE EVIL THAT MEN DO LIVE AFTER THEM”

This article is for critical appraisal by all Anguillians. It is not intended to praise the Anguilla United Front. Instead, it wishes to be a reminder to all of us of the number of changes, improvements and other ancillary benefits that accrued to the island while they were in office. However, it gives cause to reflect on the words of Mark Anthony in Julius Caesar where he said: “the evil that men do lives after them --- but the good is interred with their bones.” So let it be! With the AUF! Despite the accomplishments the appreciation and gratitude they received seems to have well disguised.

Nevertheless, let us try and be fair in our evaluations and conclusions as we reflect, take a backward glance if you will, on some of the major changes generated by their efforts during the ten years of their tenure. Then looking in the mirror at ourselves honestly assess these achievements and based on the empirical evidence see what emanates from our observations putting aside the invective, the innuendo and rumours that abound all around Anguilla.

Let us start with the areas in which most dynamic, meaningful and reformative changes have impacted us all, namely, economic growth, social development, infrastructure enhancement, and revenue raising and collection. We will examine these parameters first because here we will find dramatic advancement that is most conspicuous. They highlight the impact of the work of the AUF, they make a compelling and appealing argument for a Government whose manifesto declares the desire of leadership to provide more and better services and in general an improved quality of life for the inhabitants of this island. Anguillians should ponder on the huge increases in the housing stock and considered how this came about. It was made possible by the deliberate and careful actions taken under the AUF watch. The construction, size, design of homes, shopping areas is a tremendous achievement that should make all Anguillians feel proud. This new construction undeniably has changed the landscape of our homeland. And the increase in real property values could provide a bonus to revenue projections and collections. The Flag Project was the engine of change that drove this growth.

The collapse of the Flag Project is unfortunate. However, say what you may, the conclusion must reveal that the injection by that company of over US$400 million was to be fair a “godsend” to us all. It was that money which kick-started our economy. It is a pity that the bubble burst. We never had it so good. But who brought Flag here? The AUF of course! So now we blame the AUF for Flag’s failures and forget the significant contributions Flag made to our development.

Again Shakespeare in Julius Caesar refers: “O Judgment! Thou art fled to brutish beasts, and men have lost their reason”. The fact that AUF did not introduce new or higher levels of taxation on foreign developers as well as Anguillians is now being considered a mistake. Of course, rightly or wrongly hindsight is better than foresight. The AUF wanted Anguillians to keep most of their money in their pockets, hoping that when they were called upon to pay their way they would see its merits. This was a vain hope. It is obvious to all now that increased services bring with them increased costs. Somebody has got to pay!

Infrastructural changes were far-reaching, extensive and expensive. The Government embarked on the reconstruction of roads, seaport improvements and the expansion of the airport in an effort to deliver adequate transport services. Roads were constructed from West End to East End and from Stoney Ground to Island Harbour. These improvements required huge expenditures that the AUF had to raise. These facilities were completed as part of national priority programs to enhance tourism in particular, the enjoyment of Anguillians generally and to improve the environment as a whole.

The benefits of good roads are plentiful. For example, good roads provide rapid transit, less wear and tear on vehicles, tires last longer, shocks and batteries are less frequently replaced --- these are real benefits for the entire populace. This period of development provided for procedural as well as physical changes to the Princess Alexandria Hospital. There is now in place the Anguilla Health Authority. Yet the changes in the tax base and the tax rates remained negligible and incommensurate to the level of services now available. The tax rates in Anguilla under the AUF were among the lowest in the Caribbean.

Under the AUF more students received government financial support than any other island in the region with the exception of Barbados where I understand that education is free from kindergarten to university. The difference between the two islands in this respect is the level of taxation. Anguillians can keep more of their wages in their bank accounts than elsewhere. The very last thing the AUF wanted to do was change the tax base. They would not. History will reveal that they did not.

The AUF lost the election despite the improvements and hard work that had been expended to make these positive improvements. If as Shakespeare said “there is a tide in the affairs of man” --- let those who are swimming with the tide show us where it leads. It is ironic that those same people who most vociferously criticized the AUF policies on taxation are now justifying the importance of higher taxation. It is a real shame and clearly shows that denigration, hyperbole, castigation, innuendo, political rhetoric and such subversive behaviour has only negative effects.

The Chief Minister constantly speaks about Macmillan’s “wind of change” speech. As if to suggest that it has relevance to Anguilla. Since Prime Minister Harold MacMillan made his speech to the South African Parliament massive shifts in world political thought have occurred. There has been significant promotion and advancement of “human rights”. Such movements in this area have brought with it great adjustments in the relationships between the rulers and the ruled. MacMillan was expressing his dislike for the apartheid policies prevailing in that country. There is no need in Anguilla for that sentiment to be expressed. Britain has already declared unequivocally its position on her relationship with the Government of Anguilla. Therefore to use independence as a trump card is only an empty bluff. Who cares? Is it necessary to have autonomy to the “nth” degree in order to enhance the living standards of our people? The AUF has long observed the attitude of HMG in this regard and requested “full internal self government” a position in which it was prepared to accept some negotiation. The message that is advertently or even inadvertently being telegraphed from HMG is that “you can jump if you want to --- but we are not going to push you”. The question is “to be or not to be”!

There is the need for a shift in the thought process, a move away from humdrum, mundane, lowdown style of politics. This old fashion type of operating must be replaced by a more egalitarian, pragmatic forward- looking approach. History is over. It is not who blew the budget but everyone wants to know how you are going to fix it --- and who can do it best. This is the litmus test that must now be taken in order to find ways and means to grow and build on the last ten years. Name calling and blaming the mistakes of others will not suffice. This is the overwhelming flaw that must be eradicated before we can move on to a higher level of real politics. These conditions stifle the air in the political arena. They are regressive and restrictive while we need to be progressive and effective. The real benefits gained by their removal is that the electorate will begin to make voting decisions based on clearer thought processes and reduce the impact of unsubstantiated gossip and deliberate lies on election results. When people are able to make decisions through a rational assortment of issues they will make better choices of representation. After all the purpose of elections is to obtain the most effective government.

One cannot escape noticing that things like growing the economy has not been mentioned now that the AUM is in power. The dilemma rests with our inability to collect the necessary revenue. It is unfortunate that the present leadership spent an inordinate amount of time, haranguing the AUF in the House of Assembly on this issue. The time has now come for the Chief Minister to demonstrate his knowledge and his ingenious ideas for raising revenue. He cannot fall back on the old hackneyed practices that he once decried. He is now the Minister of Finance so this is his opportunity to bring in bold new initiatives that he proclaimed to have. Revenue is the number one issue that should be openly discussed. Frankly speaking everyone on this island should be engaged in a mature dialogue on this matter. This is in fact Anguilla’s “cause célèbre”.

When Victor Banks was Minister of Finance he made several revenue raising initiatives. It generated some dialogue, although apparently not sufficient to result in the drastic changes in attitudes that are required. Minister Banks did, however, manage to make structural changes. The Inland Revenue Department was separated from the Treasury to allow for more pro-active management of revenue collection. There was also a rash of modern legislation to be implemented. The Minister did not micro-manage his department therefore the result of proposals and policies in the final analysis depended on the efficiency of the department. Superimposed on these frameworks are two major issues. Firstly, Anguilla is a British Overseas Territory --- that situation has built in limitations. These limitations may be removed by going into independence. But at this time of our political maturity may not feasible. Should the present regime doubt this they should call a referendum and test it. This would be preferable to constantly nagging about it.

Secondly, Anguillians must come to grips with the fact that Anguilla’s development now and in the very distant future is inextricably tied up in the hands of foreign people who want to come here and invest. We in Anguilla are receivers we may not always be able to dictate but we can always negotiate. The arguments about MOA and MOU are mere words. What is important is will we get the projects? And how they will benefit Anguilla and Anguillians in the long run?

Finally we must take note of the circumstances we encounter when the relationship between HMG and GOA gets sour. For example it is not the people of Anguilla who determine the Governor’s position. It is the Foreign and Commonwealth Office that determines the comings and goings of all Governors. The best results are therefore not obtained by “fussing and cussing”. All the talk on this issue of independence that now prevails whenever the Government wants to avoid following proper procedures is not helpful.

During all these developments it is important to acknowledge that the AUF was able to maintain an amicable and effective working relationship with all the Governors who came to Anguilla as well as the people in the FCO. It is therefore this environment that will always be conducive to promoting positive development as we navigate through the many challenges of delivering the best for our people in an atmosphere of political maturity. In such an environment, perhaps the good work of the AUF will not have to be “interred with their bones”.

(Written by Ashton N. Bradley, Sachasses Estate)

Let me thank Ashton for a most thought-provoking article. He has said a number of things that could have appeared to be self-serving coming from me or the other elected members of the past AUF Government. He has commented on some areas that have just recently become the topic of conversation as Anguillians become more and more frustrated with the choices they have made. What is most obvious is the need to return to civility! One gets the distinct impression that the Chief Minister and some of his colleagues do not believe in creating an atmosphere of mutual respect regardless of ones personal views and differences.

The Chaplain of the House of Assembly quoted Proverbs Chapter 15 in his invocation. What ensued as the Chief Minister delivered his budget address did not seem to take into account the wise admonition especially recorded in verse one of that text. It reads: “A soft answer turneth away wrath: but grievous words stir up anger”. Let me say for the record that even though the introduction of the budget speech was rife with the usual rants, ravings accusations, slander, innuendo and lies by the Chief Minister, the Budget speech was well written. Hopefully, the Chief Minister understood what he read or more generously, meant what he said. I will spend more time in another column at a later date dealing with my response to that presentation. I would not wish to speak out of turn as the AUF elected members make their presentations in the House on Thursday.

Again, thanks Bradley!

Victor F. Banks
Sachasses Estate
December 14, 2010

MYTH OR REALITY

Figures and statistics usually paint a totally different picture than emotion or political propaganda, the so-called glory years, and the economic boom that caused fast money to flow as a result of superb economic management was by all statistical accounts more myth than reality.

The so-called economic boom that probably started at the end of 2005 was definitely over by the end of 2007. The deep recession that started in 2008 has roots in the global crisis but was mainly caused by policy decisions and management style. The management style suggests that the politicians of the day believed that Anguilla would progress by borrowing and spending. Anguilla spent itself into a very deep hole; today the corpse of the spending is high debt and no revenue. Public debt increased form a low of 85.1 million in 2005 to a high of 191.4 million in 2009. (It would be interesting to know what the level of debt was in 2000. It is also interesting to note that presently Anguilla cannot afford to maintain most of the capital projects built during this period.) The funds required for debt service increased by 111% between 2005 and 2009. A high portion or 141.5 million of this debt is local; therefore looking at what is happening in other countries with high levels of debt we must question the financial stability of the local lending institutions. Another 16.3 million is owed to suppliers (mainly local businesses) and this amount don’t include statutory bodies.

Looking at the figures it is obvious that public expenditure was out of control during and after the so-called boom. It is also obvious that the public sector was promoted as the engine for economic growth at the expense of the private sector. The public sector was the main employer on the island and this is most likely resulted from the need of the political class to provide patronage and maintain its image as responsible managers. The number of government jobs increased from 994 in January 2006 to 1413 in January 2010 a 42% increase. Since most of the increases occurred in the area of established positions salaries increased from 47.9 million in 2005 to 90.9 million in 2009. Revenue however did not keep pace, in 2005 total revenue collected was 125.2 million. It did reach an all time high of 207.1 million in 2008 before falling to 148.3 in 2009. This amounts to an 18% increase over 2005 but during that same period salaries increased by 90%.

Looking at the figures it is obvious that Anguilla was in serious trouble for several years. The so-called economic boom was not sustained for any period of time. Its lasted a mere two years and during this time the economic managers behaved as if the upward trajectory would continue forever. The figures fail to support claims of superb economic management. It is commonly known in economic circles that capitalism creates a boom and burst economy. Therefore all responsible planning and spending have to take such factors into consideration. Thinking economist would also be aware that wealth is created from production not consumption. A responsible leadership would not have allowed the expenditure increases that occurred neither would it have borrowed money because it was easily available. It would have carefully spent the money borrowed on worthwhile projects and avoid waste. (Some of the payments to landowners for the airport project are nothing short of irresponsible.) A responsible government would have looked at the sources of revenue and determine their sustainability, it is obvious that non tax revenue started to slide from the end of 2008 and tax revenue changed little during the same period. Government realized it had a problem but found it impossible to bring expenditure in line with revenue after allowing the increases in salaries and debt. Corrective action would also have required certain confessions that would have proved suicidal in an election year although in the end death occurred from natural causes.

By: Statchel Warner



Sunday 12 December 2010

ANGUILLA UNDER MORATORIUM (AUM)

The Government of Anguilla image is steadily becoming a classic dictatorship - forcing the executive, legislative, and even judicial to transfer powers to an increasingly-erratic Chief Minister and Son junta style leadership, and their close-knit inner circle of influence-peddlers association. This is causing increasing political instability on Anguilla, as the regime attempts to stifle and victimise all opposition and public debate to its autocratic desires.

The incompetents’ (government) contradiction is to reform our Constitution without effective safeguards to fit its motives - defeating constitution and administrative principles; while they claimed that their purpose is to "defend the national sovereignty and territorial integrity" of Anguilla - a barmy called for independence without true democracy... the birth of a dictatorship.

Even more so, the nation is becoming an unrepresented and disenfranchised underclass, where the electorate only role in society is to pay taxes up to a tune of over 300%, show subservience, and obeys the unaccountable political corruption.

It’s been nine (9) months of hell as Anguilla’s overall situation has degenerated to “how low can you go” and government’s quasi-intellectuals failure to advocate a centralized system of government, where all formal trappings of democracy stays in place, while effective power would be the incompetence of a “chief minister and his clone”. This been at a time even when the “double-act” became increasingly erratic with their public lunacy and non-intellectual smoke-screens; as Anguilla’s economy declines at an unprecedented rate to almost a moratorium.

And as rumours of Hubert’s alleged mental and physical illness, and numerous extra-affairs overseas continues, his inner circle of corrupt personal advisors became the country's unofficial and unelected government, with the wishful-thinking handpicked proxy Deputy Chief Ministers to play the role of puppet heads of Anguilla's executive branch.

The question is: Is the United Kingdom (UK) Government complicit in Anguilla’s demise? This means that Anguillians “may” have a case against the UK Government at the European Court of Justice.

Anguilla is, without a doubt, the most tense and unstable British Overseas Territory since February 15, 2010... definitely a downgraded laugh-at-stock in the Caribbean!

It’s unbelievable!

Saturday 11 December 2010

“THE ECONOMY”

The talk on the streets of Anguilla these days is the very slow economic situation, and how it is impacting the mood of the country, everyone is anticipation a soon return to the days of plenty. Every government since 1967 has embraced the enormous task of building the Anguilla economy. We have seen productive years of steady growth, and thought we had created the stability for a strong and healthy economy; unfortunately the situation on the island is still very volatile. But clearly, Anguilla is much better off today. We must be grateful even in the given situation, our streets are amazingly still very busy and people are still being employed, including a noticeably large foreign, regional population on the island. Indeed, the island is not performing how we have come t o expect some years ago.

Our effort to structure a robust, vibrant economy has proven to be an unimaginable task for all governments of the past. From an Institutional stand point Government must base its decisions on intellectual and professional advice which have always come with a hefty price for the country because of the professional nature of these people. In most cases much of the advice given are actually basic in nature and does not differ a lot from the average opinion. We started to build our economy since 1967 from a very simple perspective. The island had no electricity, no telephone, no paved roads, no running water and none of the commodities we have come to appreciate today. We’ve reached some distance in the world of progress for an island like Anguilla, after a very sad period in our history. Fundamentally, our progress is still very basic in the requirements for building a strong and reliable economy that would take us securely into the future. It appears that the kind of economy we have come to know is one hyped for a given period, then drops to its lowest ebb. So in most cases the island is either doing very well or doing so badly that people are disenchanted and are inclined to leave. We must answer the question, where are we going wrong? I left Anguilla to live on St. Martin some years now. I did not venture very far, after calculating that it is quite easy to live on both islands satisfactorily. But I lived on St. Martin since it was at a very undeveloped state, the days of killing live stock and cattle and selling the meat on the bay front was pretty much the economy, but what they always had was a (Great Bay) or Philipsburg and Marigot, a central commerce concentration on both sides, always active, even if it were by their own people, but certainly the neighboring islands as well.

Endeavoring to develop a viable economy for Anguilla was always seen as a unique enterprise, we’ve always tried to be different, which I have often questioned. We have promoted our beaches above our town and often while taxi drivers are driving through the valley (town) to Shoal Bay, they are asked by their passengers, would we be driving through town to get to our destination? Our major hotels were left to develop without criterion and with unlimited latitude, without discretion for the broader economy, in fact, to this day a major hotel project coming to the island with its impressive presentations, so impacts our government that such a project is often viewed as “the economy” therefore it acquires the right to import all of its building materials, all of its furnishings and qualified labor, then our policy of incentives kicks in with duty free concession. As I envision it from a business perspective, building an economy is principally a subdivision of building-blocks resulting in a major national conglomerate similar to a large cooperation on a magnified scale. We have never invested in the development of a structured economy where the various sectors hold up their end on a viable basis contributing to the larger interest, because we continually isolate many of those blocks that are most viable to stabilize the structure. I could very well remember when we use to bring our chickens, our fowls, sheep and goats and our fish to St Martin to sell, so we know that trade and commerce go hand in hand and was the alternative to us raising our live stock and eating the meat ourselves, or our cultivation being stored in our own back yard shed. We sort to build a one sided economy that did not make provision for a fair exchange of goods and services in a commercial setting that needed a master plan and great incentives to develop. Today, we still have not recognized the need to inhabit or invigorate our disorganized and disengaged commercial town and continue our disproportionate spending on St. Maarten, St. Martin mostly for the lack of an attractive and composed city, we there by ignore any potential the Valley may have to mobilize trade and commerce, as another viable option together with tourism.

So with the anticipation of another active tourism season, nothing will be done to maximize our benefits in exploiting the casual buying power of our tourists and containing that exploit here in our commercial sector. It is true that most of the acquired professional advice have always recommended that Anguilla remains undeveloped, dormant and inactive for people who want to do nothing but visit, and be careful not to develop as St Marten/ St. Martin, in particular. That advice was obviously followed; we built some of the best hotels in the region and promoted our upscale tourism plan, then used our purchasing power on St. Maarten / St. Martin building up their commercial strength which today is actually preeminent and a major pivot in the strength of their economy. Our economic model probably works well for the government revenue intake and the exclusive properties we have, they focus on absorbing the entire concentration, their guests can buy apparel, gold or decent gift at their location. Our model is a great disadvantage to our own people who must continue to travel and spend much more than their disposable income on St. Maarten / St.Martin. Whereas “The Valley” our commercial town, is unable to attract neither their guests, nor our very own to spend with any significance there, this is because the setting is not well geared from the supply and demand side, a total neglect from an economic stand point.

By: ejharrisxm

Thursday 9 December 2010

“DEAD ON ARRIVAL”

In his first budget speech after coming to Office on February 16, 2010, the Chief Minister and Minister of Finance, the Honourable Hubert Hughes used as his central theme the title: “Operation Recovery”. He claimed that this theme was in keeping with his “much plagiarized” campaign document: “Blueprint for Anguilla’s Recovery and Development”. His opening remarks quickly set into focus that it would be his intention, for a long period of his tenure, to continue on in the negative vein of the campaign by speaking about what he refers to as the “reckless conduct of the outgoing AUF leadership”. In that context, it would be useful to quote that section of his address in its entirety to document the mindset that has dominated the conduct of this Government for the past ten months of its ascendance to office.

The Chief Minister said:

“Madam Speaker, the first and understandably, the most important departure from the past is that we immediately recognize the startling truth that the AUM Government has inherited a distressed economy, obviously brought about by the reckless conduct of the outgoing leadership. It is certainly not the truth that all of Anguilla’s economic woes can be blamed on the World economic downturn but rather, factors such as: 1) alleged corruption dating back to the early 1990’s, 2) economic mismanagement, and 3) poor governance.

It is my opinion that these factors may have resulted in a culture of a total lack of transparency, a lack of accountability and the failure to ensure good governance thus consolidating the dire economic and financial conditions facing Anguilla today --- but while it is true that the elected representative of the people of a British Overseas Territory such as Anguilla have a moral and sacred responsibility to the people who entrust them by their votes, it is also true that as the administering power, HMG through its officials in the FCO in accordance with the assurances given that the conduct of our local administration will be closely monitored and the stipulations set out in the UN Charter for colonies be upheld, I cannot avoid apportioning some blame for the virtual collapse of Anguilla’s economy on elements within the FCO.”

The Chief Minister goes on in his “Operation Recovery” budget address to paint a picture of “alleged corruption”, economic mismanagement and poor governance by the former AUF Administration and includes the British Government as “aiding and abetting” this conduct. He then incites the emotions of the general population by using terms like “Anguillians first”, “fronting”, “overtaxing the poor” and, “wealthy aliens going free” to create the image of an uncaring government which did not attend to the interests of its electorate. He illustrates this fact by making a blatantly unfair statement in reference to the Flags Luxury, Cap Juluca and Viceroy as follows: “All these developments were done to ensure that there was no trickle down effect to the local economy by using slave labor from China, India and Mexico housing these workers on the projects.” Of course this a most ridiculous statement intended to imply that an elected Government in a democratic system would be so daft as to conspire to fashion developments deliberately in a way that no benefits would accrue to the people from whom its seeks to solicit support. In fact, it may be considered an insult to the intelligence of the audiences he addressed that they could be expected to believe such utter nonsense.

While the past Government may be accused of underestimating the impact of their investment incentive program --- they can never be accused of creating an environment where there was a shortage of jobs and business opportunities for Anguillians in that period of prosperity. Even in the height of the drive to secure labour to build out these projects no Anguillian desirous of having a job in the construction sector was without choices for obtaining one. Those projects pumped considerable revenue into the Consolidated Fund in the form of customs duties and other taxes which ensured that Government had the wherewithal to meet the costs of essential services, pay public servants and accumulate reserves. During that period the main criticism from the opposition was that there was over development --- the core of that criticism being the existence of two major projects.

The past Government was fully aware of the overwhelming success of its investment incentive program and quickly put on the brakes through a moratorium on large tourism accommodation projects. That Government, however, always believed in the wisdom of having more than one major investor. In fact, the Viceroy Resort is a testimony to the importance of that wisdom such that at present it is the salvation of our economy and for this AUM Government in light of the need for new jobs and business opportunities while we await some resolution to the challenges of the Flags Project. At the end of the day the success of this Government is closely tied to the success of these two projects as well as Cap Juluca, all of which the past Government worked assiduously to secure. The Government’s hope for windfall revenues from Viceroy sales and the probability of a new investor for the Flags Project rest on the existence of those projects in the first place. And our anxiety to see them brought back on stream reinforces the need for them to have been completed at this time.

The economic mismanagement and poor governance in the Chief Minister’s “Operation Recovery” budget address is in keeping with his recurring chant during the campaign and over the last ten months that the “wicked AUF Government” gave away available revenue from investors. And in his address he pleads to the British Government, completely ignoring and perhaps insulting his staff in the Ministry of Finance, to provide a team of forensic accountants to find the sources of these revenue “leaks”. One gets the distinct impression that he has recently discovered the field and concept of “forensic accounting” and now wishes to impress his audiences with his grasp of the subject.

He fails to explain, now that he has had the “rude awakening of being elected”, that he now understands that the only way to attract investment especially in the lean times as existed in 2002 and as exist today is by incentivizing investors both foreign and local. Rather, he now tries to mask that reality by continuing to perpetrate that deception by giving the impression that there is a difference between an MOA and an MOU all the while giving up more concessions in the process of renegotiating already carefully negotiated agreements with developers. In support of this position it is an established fact that the Cap Juluca MOA has resulted in considerable losses of both short term and long term benefits to the people of Anguilla. It has resulted in a significant reduction in the level of national empowerment in the project. In short “Operation Recovery” in this “renegotiated” agreement has resulted in a loss or a worsening of the arrangements.

It is interesting to hear some lingering AUM supporters who are too embarrassed to admit to this travesty of national justice suggest that: “Haydn and Jerome had to give all that up to save the workers service charge”. What utter nonsense --- a clear example of the AUM Government’s disrespect for the intelligence of their supporters! Service charge to workers is provided for by law and is administered and monitored by employees as well as employers. There is no need for additional provisions for service charge in any MOA or MOU. Any statement to the contrary is deliberately false and malicious.

I have intentionally left the first factor mentioned in the “Operation Recovery” budget address for the last. And I will quote the factor as it is stated, namely, “alleged corruption” dating back to the early 1990’s”. First of all how can something that is “alleged” be a factor in anything unless it is psychological? For corruption to be a factor in our “economic woes” it must exist --- it cannot merely be alleged. In addition this “alleged corruption” to which the Chief Minister refers does not only include the period immediately preceding his ascension to power but also during the period when he was in power 1994- 2000. Should anyone take responsibility for corruption in that period, technically, it must be the Chief Minister at the time, less you forget, the Honourable Hubert Benjamin Hughes.

If the Chief Minister wishes to make a charge of corruption for any period preceding “Operation Recovery” he must present the evidence to substantiate his claim rather than shelter under legal terminology to protect his baseless conclusions or his willful and malicious inferences. Chief Minister!!! It is time to stand by the strength of your convictions and make a formal charge of corruption against all who you blame for your present inability to execute your “well-touted” plan to rescue Anguilla. After all you must be hailed as a “master of illusion” having won an election on the basis of a yet “invisible plan”!

I believe that I have successfully demonstrated the total preoccupation of “Operation Recovery” with carrying on a strategy lacking the necessary focus for dealing with the pressing issues impacting Anguilla in this period. As I said last week the Chief Minister and his colleagues seem to believe that “locking someone up” for his unfounded allegations of corruption is the solution for our economic woes. I would go a step further and suggest that in this challenging period when cooperation is vital to achieving consensus on tough decisions and sacrifices, nationally --- the divisive and accusatory tactics of the Chief Minister are non-starters. Coming out of a particularly bitter general election where his party was victorious. And at a time when it was well known that the global situation would present tremendous hardships for Anguilla. It behooved the incoming Government to be gracious in victory and concentrate on healing “the wounds” rather than applying salt and peppery condiments to them. The focus of “Operation Recovery” based on statements that have yet to be clothed in evidence and factuality --- did nothing but build up resentment among AUF supporters who though already admonished to accept defeat with dignity could not withstand the relentless attacks on the integrity of their leadership. To put it simply, “Operation Recovery” lacks that redeeming element of astute leadership that understands the need to create an environment of détente in order to achieve lofty national objectives that transcend petty political posturing.

As an example of that kind of approach to national leadership I will quote a portion of my concluding remarks to my 2009 budget address under the theme: “Strengthening the Collective … We are the Solution”. This budget address was at given a time when we were coming to grips with the global recession that had begun to impact every single investor on Anguilla. At that time the Government still had more than EC$65 million available in reserves and was predicting a low single-digit growth.

I said:

“Mr. Speaker, I opened my remarks by saying that I would not wish to dwell on the global financial crisis and its impacts on Anguilla. That was intentional. I wanted to get your minds off of those issues for a while --- and focus on the strategic path for Anguilla’s development that will continue to experience success if we stay on course and on message. I also wanted to explain that strengthening the collective is about all of us pulling together --- rather than blaming everyone and each other for our plight. That is the kind of optimism I hope will characterize our approach to the challenges of this period --- and as I said earlier it is a winning approach all the way.

Mr. Speaker, against this backdrop of optimism let me speak about what lies ahead with the confidence that I have already established the point that we are the solution. As I said earlier this is the time to be proactive rather than reactive. We have to carefully assess the situation and put a well thought-out plan in place --- a plan that employs all the appropriate resources of the collective. It was the same plan that was employed in 2002 when the Honourable Chief Minister used the exhortation: “there is light at the end of the tunnel”. It was the same plan that the Ministry of Finance adopted in its “road map”: “Measures to Restore Fiscal Stability 2002 – 2004”. It is the same plan that must be used today to mitigate the impacts of the global recession.

Mr. Speaker, unusual times call for unusual methods. In this context, the Government of Anguilla must employ bold and unusual strategies to address the unusual circumstances in the world economy unequalled in over seventy years. We cannot wait until the situation worsens --- we must act now. To make a medical analogy ---we cannot wait until the virus reaches our shores to begin to build up our immune system --- or get the appropriate vaccination. Nor should we make a false diagnosis and prescribe the wrong medicine. And worse yet we should not allow the environment, physical or psychological, which is conducive to the patient’s healing process to deteriorate.”

I have included this quote from my 2009 Budget Address, at the risk of seeming immodest or even arrogant, to demonstrate the responsibilities of leadership in rallying discordant factions and parties together in challenging times. The medical analogy is to demonstrate the importance of the proper environment and treatment for a patient’s recovery --- as well as the danger of a false diagnosis and the wrong medicine.

At the time of writing I happened to see a most convoluted, disjointed and confusing motion submitted by the Chief Minister to the House of Assembly. I am sure that it will substantiate my conclusions that he is totally out of touch with the present reality and is resorting to his usual “smoke and mirrors” approach to dealing with the issues. In discussing my medical analogy of our situation with my colleagues in the context of Hubert’s “Operation Recovery” strategy --- the general consensus was that it is conceivable that by the time this patient is referred for proper treatment the pronouncement could be “dead on arrival”.

Victor F. Banks
Sachasses Estate
December 7, 2010

Saturday 4 December 2010

INDEPENDENCE???

The built-up tension between the Governor of Anguilla and the honorable Chief Minister is a deterrent to dealing with the real issues that confront the country. There is no violation of principle for these two men to engage each other in an intelligent level headed debate on the issues they differ on. The Chief Minister instead, has begun his tirade for independence; side stepping the important issues of the country. The slim majority supporting this call are mainly those diehard supporters who have consistently refused to keenly scrutinize the way this government has been performing. However, I am of the opinion that the call for independence is a legitimate one for our country and it is time for us to embrace our nationalism fully. There is no good reason to believe that the British government would entertain any such talks by this government under present circumstances. Therefore, a pivotal question for our honorable Chief Minister is; where do we start? Everyone knows that the real objective behind this lingering stalemate on the island is a ploy to have this Governor recalled because there is the assumption that he is closely associated with AUF. That could well happen in a prolongation of the situation. But if I were one close to the Chief Minister, I would advise him to make a calculated decision to offer the governor a compromise in exchange for his best cooperation. The objective would be to make the best impression for the optimal functioning of the government.

The political reality for Anguilla is; we must take our country to the next level towards Independence. The obsession by a forceful few to pursue full independence is not the most coherent at this point in time, but we must act with clarity and confidence. We must not allow the British to frame our constitutional reform by another "white Paper." Our primary move should be to allow the people to go to the polls in a referendum in the shortest possible time and chose between "Independence and Full internal Self Government" The status of Full internal Self Government being the choice, can be instituted by the next election cycle 2015.This government is in dire need of a win; it has been bad news ever since taking office, if we were a country that relies on polling data, this would paint an ugly picture for AUM. There has not been any tangible results so far from their election, but a consistent cloud of frustration has followed the government. Serious talk about our constitutional status would shift the debate to something of substance in their favor and for everyone to be involved in. From reading his weekly article, it is clear that Victor Banks himself feels that this might be the moment when we should challenge the British on the position of more autonomy for Anguilla. In a recent AUF convention the honorable former finance Minister was re elected as the political leader of that party, it seems to me that both leaders have just about staked out their choice for more political autonomy. Our Chief Minister, the honorable Hubert Hughes wants Independence for Anguilla; while the former Finance minister, the honorable Victor Banks wants "Full Internal Self Government".

The people of Anguilla must be well informed of both models and what the choices would mean for us, through a vigorous debate and "the House" must expedite the process with some urgency and approval to proceed to the polls. If I have over simplified the matter I will gladly stands to be corrected but to leave this to the British to dictate, it would most likely be a very extensive process convincing them that the time is right, and our people are ready. This move by government will do two things; it will first give this government a new lease on life and bring the people together in a single focus;"OUR Political FUTURE." Talks must begin, with the primary objective of informing everyone what these two options mean for the future of island and its people. "Let's roll".

By: ejharrisxm

Thursday 2 December 2010

"DUNCES OR LIARS"

I have been listening with interest to the various discussions on our financial and economic situation especially at this time when Government of Anguilla is preparing to present its annual budget for 2011. As the immediate past Minister of Finance I can empathize with the stress that the present Minister and his colleagues are going through --- even though they have not been particularly kind to me during the past twelve months. All of a sudden the Chief Minister and his son the Parliamentary Secretary have discovered that there is a worldwide recession that is impacting Anguilla --- a realization that has come about only after they took over the reins of government. There can be only two plausible reasons for this late and rude awakening --- either that they were totally ignorant of the situation in Anguilla or that they were deliberately trying to mislead Anguillians during the election campaign. I overheard one of the victims of this deception the other day lamenting that the leadership of the AUM government, based on the statements made during the election campaign, are “either dunces or liars! Take your pick!”

It is my understanding that public consultations are being planned for the budgetary process. This can be a very helpful exercise if conducted in an environment conducive to objective and respectful exchanges. To put it simply --- an environment that mimics a classroom experience rather than a “staged-managed” AUM circus event. I would also hope that appropriate use is made of the technocrats in the Ministry of Finance and Economic Development whose expertise in this area has been “well-honed” over years of working on annual budgets. This would effectively remove political posturing from of the exercise. The government will have to take a number of tough decisions that have become tougher because of the promises they made during the last twelve months. They will no longer be able to blame the past Government for their problems because they indicated during their campaign that they could fix the economy in six weeks.

I was also amused with the release from the Office of the Chief Minister regarding his recent visit to the Overseas Territories Consultative Council (OTCC) when he said: “I have not issued a published statement prior to today, because I am hoping to obtain from Mr. Bellingham (The FCO Minister) a written statement from him confirming my understanding of the meeting so that whatever I put forward to you fellow Anguillians cannot be contradicted.” This is a historic statement from the Chief Minister because it is the first time that he has ever gone to London in any capacity and has not run to the BBC to deliver some statement about his talks at the FCO. And he has never come back to Anguilla without immediately getting on the airwaves or ensuring that he got interviewed on the morning programs. There were a number of AUM supporters who were at a high level of expectancy that “Hubert will handle the British” --- a statement that over his years as a politician he has been unable to translate into positive results for Anguilla. In fact, the only outcome of his approach to the British has been an unstable political situation for Anguilla and in most cases his own demise.

I do not wish to speculate on the reasons for the Chief Minister’s circumspection in issuing an early statement on his meeting with the FCO Minister on this occasion --- neither would I hesitate to give credit to his “handlers” if they were indeed responsible for this laudable demonstration of restraint. But I must say that I do believe that his strategy for seeking the assistance of the British Government to be “flawed”. For example:-

• He states that: “our economic situation was a direct result of mismanagement which happened while there was a Governor overseeing the work of the Territories and as a result of a lack of effective oversight”. In other words the economic situation is the Governor and the FCO’s fault!

• He states that: “the portfolio of the Civil Service is that of the Governor’s under whose oversight the problem of the ballooning of the civil service went unchecked”. In other words the Governor and the FCO is responsible for the size of the civil service!

• He states that: “we are disappointed that following our discussions on issues pertaining to corruption that there has been no response from FCO on these matters”. In other words the Governor and the FCO have some complicity in what he perceives to be corruption on the basis of unfounded speculation because they have not responded to his request to launch an investigation!

• He states that: “the Governor chose to execute a memorandum of Agreement pertaining to Cap Juluca for 125 years and a further automatic approval on Election Day when he knew or ought to have known of our platform utterances and our specific intention to challenge those agreements.” In other words the Governor conspired with either the past Government or the Developer or both to commit what he opines to be an improper action!

• He states that: “a prestigious London law firm of attorneys that represents a developer, informed the developer that their contacts in the FCO were telling them that the developer should not invest in Anguilla because the Government will not last”. In other words the FCO is sabotaging the efforts of this Government to attract development!

• He states that: “there are a number of constitutional issues which currently are being created at the hands of the Governor.” In other words the Governor is acting unconstitutionally!

• He states that: “the Governor has asked for his resignation on the basis that I took out a EC$200 million dollar loan ….. my position is that at no time was I transacting or had anything to do with this loan.” In other words the Governor is trying to force his resignation on spurious evidence!

I am not suggesting that the Chief Minister should not have the right to raise questions with the FCO on issues relating to our partnership arrangements --- but to do so in the context of addressing the most critical issues affecting Anguilla, namely, the economy and the fiscal situation, may be considered a farcical strategy indeed. The fact is, only two of the fourteen questions purported to having been raised with the FCO Minister had anything to do with discussions necessary for dealing with our fiscal and economic woes and one of those questions sought to lay blame directly on the Governor.

As I have said time and time again this Government continues to believe that the only way to achieve its objectives is by adopting an attack mode. To date this approach has only resulted in a protracted battle with the Governor and the FCO and has distracted focus from the important requirements for dealing with the business of the country. If you read the Chief Minister’s statement he spends most of his time with issues related to his power struggle with the Governor. And the rest of the time he is trying to lock somebody up for the 1998 Transshipment matter and the 2005 Airport Expansion Project --- by requesting forensic accountants and the expansion of the Financial Investigations Unit. Hubert be careful what you wish for!

Hubert! If your plan to have someone locked up either fails or succeeds how will this help the many Anguillians who you proudly claim to represent deal with the challenges at hand? How will this attract new investment to the country? How will this create new jobs? How will this prevent bank foreclosures? How will this increase revenue performance and improve the delivery of essential services? Or even how will this help you to stop telling so many lies?

I mentioned that there were only two questions raised with the FCO Minister that had anything to do with our fiscal and economic woes and as such I will expand on these questions briefly to illustrate the inconsistencies of the Chief Minister’s statements over several months. The two questions have to do with borrowing and the civil service. With regards the civil service, in putting forward the argument not to cut salaries or downsize the level of the establishment he blames the Governor for the problem. In doing so he does not make a plausible case for maintaining the size of the service that includes the requirements for increased manpower coming out of the international regulations on safety and security at the airport and seaports. While there are other sound arguments that could be employed he loses the opportunity to make a positive point which does not accuse the Governor of being reckless in expanding the service but rather of being cautious in providing for the safety and security of persons using our ports. In other words putting a positive spin on settling this issue rather playing the blame game.

With regards the borrowing issue? After having lambasted the British Government for allowing the past government to accumulate what he described as unsustainable and lavish debt he now finds himself in a situation where he has to undertake a level of borrowing which will far exceed the amounts borrowed in five years of the past administration --- in less than a year. Whereas the past Government undertook this borrowing in prosperous times to advance infrastructure development the Chief Minister is now being forced to justify borrowing in a period of challenge when he does not have a clear plan to explain how he will meet these obligations. In fact the British Government is now using his own arguments against him because he must now explain to them how he will be able to manage a significant increase on what he himself described as burdensome debt levels. In other words he cannot readily make a case for critical borrowing without flying in the face of his own forceful declarations against borrowing by the previous administration.

I have not attended nor will I attend any of the public consultations being conducted on the budgetary exercise because I have been told and accept that my very presence would be counter-productive. But I am concerned that for almost ten months the preoccupation of this Government has been with posturing; casting blame; complaining about the Governor and the British Government; trying to lock up members of the former government and their supporters; changing MOA’s into MOU’s for no sensible reason; victimizing public servants and non-supporters, and; talking about independence. These preoccupations have caused them to neglect the most important aspect of their responsibility, that is, to deal with the challenges of the present economic situation. As a result they have waited until this eleventh hour to address these issues and now have not been successful in making the important case that increased taxation and cuts in salaries are not conducive to economic recovery in a small open economy like Anguilla.

The past Government also went to London in July 2009 but that visit focused on the critical issues affecting our island. There were no issues of personal power or relationships. Following that visit, in a letter to the then FCO Minister Chris Bryant, the Chief Minister at the time the Hon. Osbourne B. Fleming wrote as follows: “The Government of Anguilla came to London because we believe in the Partnership for Progress and Prosperity and the mutual responsibilities and the underlying respect contained therein. We also expected that our discussions would be conducted in the context of our historical relationship and our record of responsible governance as a territory which has been mature and exemplary in the conduct of its affairs.” With this approach the previous Government while being polite and courteous proceeded to make the strong case that resulted in a viable response.

I am hoping that the Chief Minister will get a viable response to his requests in time to put together a viable budget that does not place excessive burdens on our people. He will certainly be required to do a number of things that he scoffed at twelve months ago. He will certainly have to sell his budget to the people based on the premise that we are in a worldwide recession --- and it is not only Anguilla which is affected as he and his colleagues have been suggesting for the past twelve months. He will have to tell us how he will work cooperatively with the same developers he openly despised just a few months ago to turn things around. And that disappointed AUM supporter whose lament still rings in my ears will finally come to some conclusion as to whether the leaders of his party are “dunces or liars”.

Victor F. Banks
Sachasses Estate
November 30, 2010