WILLEMSTAD--Minister of Finance George "Jorge" Jamaloodin (MFK) survived a motion of no confidence by the main opposition party PAR that was voted down in Parliament late Wednesday night, after a twelve-hour meeting on the advice of the Committee for Financial Supervision CFT to the Kingdom Council of Ministers to issue a so-called "instruction" for Curaçao to balance its budget.
The MFK/PS/MAN coalition had actually already adopted a motion against the minister on June 14, but it was one of disapproval rather than no confidence and had no further consequences. PAR argued there obviously had been no improvement since, but this time the coalition members backed Jamaloodin, while one-seat opposition party FOL also rejected the motion and the other one-seat opposition party PNP was not present for the vote.
Prime Minister Gerrit Schotte (MFK) had been there in the morning to state his government's position on the CFT advice, but then flew out to The Netherlands to attend Friday's meeting of the Kingdom Council of Ministers where the matter will be discussed. In his absence, Deputy Prime Minister Charles Cooper (MAN) called the motion of PAR, which had requested the meeting, a "stab in the back" of Jamaloodin.
The legislature had interrupted its summer recess to deal with this urgent issue, although Chairman Ivar Asjes (PS) was not present because he already had gone abroad on holiday. Deputy Chairman Amerigo Thode (MFK) led the meeting and expressed disappointment that CFT had "bypassed" Parliament, which is still to send to government its comments on the supplemental budget addressing the remaining deficit.
PAR fraction member Pedro Atacho enquired, during the debate, about a reported letter from Finance Department head Jardim indicating that the financial deficit was even NAf. 150 million higher than what CFT had said. Jamaloodin stated only that he would reply to the question in writing.
The minister insisted that there was no reason for the Kingdom Council of Ministers to give Curaçao an instruction, because government already had met the CFT's additional conditions for the budget. This was also Schotte's message.
There had been some accusing of other islands as well. Coalition partner Helmin Wiels (PS) said in an interview that CFT and the Dutch Government were "doing nothing" about St. Maarten borrowing NAf. 250 million more via the Central Bank "to cover old loans of the harbour that it already can't pay." He added that Princess Juliana International Airport (PJIA) now also was getting NAf. 50 million "on top of its over-100-million debt."
Schotte stated that he would go to The Hague to defend Curaçao "against about 12 Dutch ministers and possibly also St. Maarten and Aruba if they side with The Netherlands as often happens."
CFT had advised that an instruction be given quoting three specific points. As for the reforms in the public health sector becoming effective on September 1, CFT does not find this realistic and departs from January 1, 2013.
The committee also queried the dividend policy for government-owned companies and advised against compensating the leftover deficits from 2010 and 2011 with reserves of windfall revenues from the Kingdom Tax Regulation BRK.
Jamaloodin and Schotte dismissed all the criticism. They emphasised that matters were heading in the right direction and that the instruction was not necessary because it involved measures government already had taken or was in the process of doing.
They repeated that the reforms in the public health sector would be implemented as per September 1; however, in case this indeed proves unfeasible, there is a Plan B that departs from savings of NAf. 34 million on goods and services at all nine ministries.
Delaying the reforms in the public health sector costs about NAf. 7 million per month. The period September up to and including December therefore would amount to approximately 32 million, which will be amply covered by the 34 million from the economisation round, argued the minister.
On the CFT's doubts whether it is possible to collect NAf. 25 million in dividend payments as planned this year, Jamaloodin said they already had secured 40 million from the government-owned companies. He admitted this was not structural, but announced that government was working on a policy so that all the companies would contribute fixed amounts in concession fees.
Jamaloodin admitted there was a difference of opinion with CFT on using the BRK revenues. According to him, it is not stated anywhere that these means may not be used to cover deficits from the past and a letter from government accountant SOAB backs that up.
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