Thursday, March 24, 2011

Sarah: No request made for debt relief funds for budget

PHILIPSBURG--Government did not request that the Dutch government release the NAf. 78 million remaining from the debt relief fund to assist with addressing the island's budget woes, Prime Minister Sarah Wescot-Williams said on Wednesday.

Speaking during the Council of Ministers press conference, she said somewhat the wrong impression had been created to Dutch Minister of Home Affairs and Kingdom Relations Piet Hein Donner, although a letter explaining the island's request had been sent to him.

"We are not saying give us the NAf. 78 million for us to deal with our 2011 budget," Wescot-Williams said in response to questions from the press.

In an interview with this newspaper early this week, Donner said he understood St. Maarten's financial dilemma, but was saying "No" to additional funds to help cover the country's budget deficit.

According to the Dutch minister, St. Maarten doesn't have an automatic right to NAf. 78 million originally reserved for the country in the debt reorganisation exercise of the past few years.

Wescot-Williams said that "in the context of everything else" such as the budget constraints, the Plans of Approach, the economic downturn experienced in the past two years and the effect it has had on government, it should at least be discussed how the amount remaining from the NAf. 183 million in debt relief could be used for St. Maarten to get the island on a "healthy financial footing."

Dutch funding agency USONA will stop the incoming money, leaving St. Maarten to look elsewhere for funding of social and upgrading projects, the Prime Minister said.

All things considered, "Is it strange to hear me say we are getting blows left, right and centre?" she asked.

Government's letter to Donner earlier this month highlighted specifically some of the areas the remainder of the debt relief could be used for, such as payment of outstanding insurance premiums for family members of former Social Insurance Bank SVB insured persons, purchase of land for construction of homes, the cleaning up of the landfill and to carry out a comprehensive analysis to arrive at the core tasks of the new country.

Wescot-Williams said the co-insurance premium, tagged at some NAf. 300 million, had been a responsibility of the former Netherlands Antilles government that was placed "on the shoulders of the people of St. Maarten." The island "did not ask for or should not have been asked to carry the responsibility for such a component of debt."

While there is understanding that the unused money from the debt relief has to go back to the Netherlands, because of the Dutch government's own financial woes, the Prime Minister said St. Maarten still had to deal with implementation of the Plans of Approach, because it would be "irresponsible" not to. She also said the island had to focus on its education and health concerns.

Source: http://www.thedailyherald.com/islands/1-islands-news/15201-sarah-no-request-made-for-debt-relief-funds-for-budget.html

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