THE HAGUE--Dutch Minister of Home Affairs and Kingdom Relations Piet Hein Donner stressed in a letter to the Second Chamber of the Dutch Parliament on Tuesday that St. Maarten must and will stick to the Financial Supervision Law.
The minister stated this in response to questions by Members of Parliament Andr� Bosman of the liberal democratic VVD party, Ronald van Raak of the Socialist Party (SP), and Martijn van Dam and Jeroen Recourt, both of the Labour Party PvdA.
In his letter, Donner responded to questions about the lack of a balanced 2011 budget for St. Maarten, the relations between St. Maarten's government and the Committee for Financial Supervision CFT, the Financial Supervision Law, and possible action by the Kingdom Government to ensure a balanced budget.
Donner explained that the decisions of the CFT, based on the Financial Supervision Law, served as guidance for the Kingdom Council of Ministers. "I rely on the decisions of the CFT. It is of importance to use actual, prudent and well-motivated growth prognoses and financial reserves can only be used to fill temporary holes if there are no other obligations," he stated.
He explained that revenue estimates always should be based on the latest economic growth prognosis. The CFT has used the growth prognosis published by the joint Central Bank of Cura�ao and St. Maarten earlier this year.
The CFT needs sufficient insight into the capital position of both St. Maarten's government and its government-owned companies and foundations to determine whether there are reserves. "St. Maarten's prime minister has assured me that this information will be shared with the CFT. It isn't until then that the CFT can take a decision on which I will continue to base myself," he stated.
Donner said the CFT hadn't interpreted the Financial Supervision Law to its own liking by asking for the figures of St. Maarten's government-owned companies. "The CFT clearly indicated that it needs insight into the figures so it can determine whether there are no obligations that would obstruct the use of these possible reserves."
According to Donner, the recent developments surrounding the absence of a balanced budget are not a matter of improper governance. He explained that the Kingdom Council of Ministers would consider an instruction unless St. Maarten's Council of Ministers acknowledged the shortcomings indicated by the CFT and took the necessary measures to realise a budget that conformed to the Financial Supervision Law.
The Kingdom Council of Ministers will discuss St. Maarten's budget again on April 15. Donner promised the Second Chamber that he would keep Parliament abreast of a possible decision by the Kingdom Council of Ministers.
He said he saw no reason for now that St. Maarten wouldn't execute a possible instruction by the Kingdom Council of Ministers. If it would come to an instruction and St. Maarten refused to comply, the Kingdom Council of Ministers would have to look at other possibilities.
Donner explained that the use of the guarantee function as stated in the Kingdom Charter was an "ultimate remedy."
"The use of the guarantee function is only possible if all possibilities within the country (St. Maarten) and the Financial Supervision Law have been completely exhausted. As a last resort this could mean that St. Maarten's budget would be determined at the Kingdom level. But as the former State Secretary (Ank Bijleveld-Schouten, ed.) stated, we are confident that it won't go that far."
Donner said he didn't share the opinion of St. Maarten's Finance Minister Hiro Shigemoto that St. Maarten had benefited insufficiently from the 1.5-billion-euro debt reorganisation facilitated by the Netherlands to pay off the Antillean national debt.
Donner said the 1.5 billion euros concerned a debt the Netherlands Antilles had incurred to execute tasks on the islands, including St. Maarten, and if the Netherlands hadn't paid this debt, an additional debt of more than NAf. 280 million would have been attributed to St. Maarten in the division of property exercise.
Furthermore, St. Maarten has received NAf. 65 million to pay off outstanding bills. "This amount could have been higher, but St. Maarten refrained from submitting backlogs in time for the reorganisation of debts. That is St. Maarten's own responsibility," he stated.
According to Donner, the position that St. Maarten wasn't bound to the Financial Supervision Law because it hadn't benefited sufficiently from the debt reorganisation was "completely unjust." He pointed out that St. Maarten was co-signatory to this law and that as such, the country should stick to it, just like the Netherlands and Cura�ao.
The minister said he didn't have an opinion on the decision of St. Maarten's government not to show up for a video conference with the CFT. "I have no knowledge of the factual events. The issue is that St. Maarten must and will stick to agreements and the Financial Supervision Law," Donner stated.
Member of Parliament Eric Lucassen of the Party for Freedom PVV submitted on Tuesday additional questions on St. Maarten's decision not to show up for the meeting with the CFT last week. Lucassen considered this a case of "great disrespect" for the CFT and accused St. Maarten's government of being "uncooperative" and "unprofessional."
Nick Barmby The Ashes Redrow Consumer affairs Public sector cuts Wigan Athletic
No comments:
Post a Comment