St. Maarten coalition partner sends dissolution decree to Governor for signature

WEDNESDAY, 15 MAY 2013

PHILIPSBURG–A draft national decree aimed at dissolving Parliament was submitted to Governor Eugene Holiday for signature on Tuesday by National Alliance (NA) leader/Deputy Prime Minister William Marlin. The draft decree is based on the position of Ministers Marlin, Silveria Jacobs, Roland Tuitt and Romeo Pantophlet.

The draft decree calls for early general elections to be held on July 26. Nomination Day would be June 14 and the new Parliament should take office on August 14.

Prime Minister Sarah Wescot-Williams reportedly has written to the Governor strongly condemning Marlin’s action of sending the draft decree. She also is said to be questioning the legality of his move made under the guise of deputising for her. She is expected to expound on the matter further in today’s Council of Ministers press conference.

The letter to the governor from Marlin states that the majority of the Council of Ministers was applying Article 59, sub 1, in the call to dissolve Parliament. That article states that Parliament can be dissolved by a national decree.

The article further starts the resolution for dissolution also shall include an order for new elections for the dissolved Parliament and for the re-convention of the newly-elected Parliament within three months. The dissolution shall take effect on the day on which the newly elected Parliament convenes.

This decree comes as a result of the NA-led coalition losing its majority in Parliament more than a week ago. That political shakeup led to a meeting of Parliament on Monday held by the new coalition of United People’s (UP) party, Democratic Party (DP) and independent Member of Parliament Romain Laville during which a motion of no confidence was passed against the four ministers who are now attempting to dissolve Parliament. The legality of that meeting is being questioned.

The governor has been informed of that motion by the new coalition with the caveat that he should not entertain any request from the four ministers to dissolve Parliament.

That meeting is being contested by President of Parliament Rodolphe Samuel, who considers the meeting “invalid.” He is meeting with the governor on this matter.

Commenting Monday’s meeting on PJD2 radio programme “People’s Voice” on Tuesday, Marlin said the new coalition had “hijacked the equipment” of Parliament and “took someone off the street” to record the meeting.

Marlin stated in his cover letter to the governor that the draft decree was based on a decision of the majority of the Council of Ministers. He also outlined that Prime Minister Sarah Wescot-Williams had refused to note the presentation of the draft decree in the Council of Ministers meeting of May 6 and to have same reflected in the minutes of that meeting.

He further stated in the cover letter that the Prime Minister must execute this decision of the majority of ministers and prepare for elections according to all relevant laws and regulations. The Prime Minister, he added, has refused so far to accept the majority decision of the Council of Ministers.

Marlin explained that the decree was a reaction to the Prime Minister’s call for the cabinet to resign due to the loss of parliamentary majority.

Source: The Daily Herald

St. Maarten government crisis: Some parties want elections, four ministers will not resign

SATURDAY, 11 MAY 2013

~ Duncan resigns as justice minister ~

PHILIPSBURG–National Alliance (NA) and independent Member of Parliament (MP) Frans Richardson want new elections to be called and in the interim their four ministers will not resign. This was the clear message from NA leader/Deputy Prime Minister William Marlin on the current political shake-up that has left the NA-led coalition without majority support in Parliament.

“We will not resign. We believe that Parliament needs to be dissolved. … We are in for a Mexican standoff. … Order has to be brought back to the political arena.”

Speaking at a press conference at Government Administration Building on Friday afternoon, Marlin said, “Our position has been and will continue to be: Let us go back to the polls. Let the people decide … We are not budging on the resignation.” He was accompanied at the press conference by Roland Tuitt, NA parliamentarians George Pantophlet and Louie Laveist; and Richardson.

The people will be able to say what they think about the parties and their candidates in an election, he said. “The people need to be given an opportunity to decide” on the fate of all politicians.

Originally, all five ministers appointed by NA and independent MPs Richardson and Patrick Illidge had refused to resign on the request of Prime Minister Sarah Wescot-Williams (Democratic Party) on Tuesday. Instead they signed and submitted a letter to her outlining the need to dissolve Parliament and for her to prepare the necessary national decree and prepare for elections.

Now, Justice Minister Roland Duncan, nominated by Illidge, has tendered his resignation leaving Marlin, Finance Minister Tuitt, Tourism and Economic Affairs Minister Romeo Pantophlet and Education Minister Silveria Jacobs in their call for elections based on Article 59 of the Constitution.

Duncan announced his resignation at a justice event on Wednesday afternoon. He told the gathering: “This is my last public appearance as minister of justice” because at 4:00pm he faxed his resignation letter to Governor Eugene Holiday. “But, it is not all bad news, now I get to go on pension.”

Marlin said Wescot-Williams has refused to accept the position of the four ministers and has ignored a request for an extraordinary meeting of the Council of Ministers for Friday. He sees this as the prime minister “buying time” until Monday when a plenary session of Parliament will be held on the request of NA and Richardson. He anticipates that the new majority will use that opportunity to table motions of no confidence. He said there will be “no majority” come Monday and that statement should be taken in whatever way people want to take it.

He confirmed that he has met with Governor Eugene Holiday several times since Tuesday on the political situation. That situation was created by DP parliamentarians Leroy de Weever and Roy Marlin together with independent MP Romain Laville pulling their support from the present coalition.

He said he had learnt about them pulling their support at Fish Day in French Cul-de-Sac, when the prime minister asked him in Dutch if he knows about “the letter of three,” in reference to the three MPs who have pulled their support. He said he then asked if he should “pack up his office come Monday” and she said “Yeah.”

On Tuesday, the prime minister attended the Council of Ministers meeting and wanted to discuss the resignation of her cabinet based on the coalition no longer having support in Parliament, Marlin said. He pointed out that “Parliament did not take a decision,” because a letter signed by eight MPs doesn’t constitute a decision of Parliament.

The circumstances in which the country finds itself are “not normal” and this is why the prime minister’s request for the ministers to resign had been “anticipated” and the five ministers had come with the proposal to dissolve Parliament, he said.

When she refused to put the proposal for elections to a vote in the meeting “an argument” erupted between her and Duncan, who has subsequently resigned.

Marlin said Wescot-Williams is creating the impression that she is the only one who can sign to dissolve Parliament. “That is ludicrous,” because it is the Council of Ministers that takes the decision and the Prime Minister is ordered by the Council to call out the decision.

The deputy prime minister said the impression has been created that the ministers don’t want to leave, but this far from the true, because they are safeguarding the interest of the country by seeking new elections and preventing a third Wescot-Williams Cabinet with a minority in Parliament with only two of the 15 seats. The first Wescot-Williams cabinet “should not have been in the first place,” because NA had the majority of seats after the September 2010 elections.

Marlin said his refusal to resign is not based on wanting to stay in government, because no one has left government as many times as he. “This is something I am used to.”

A “frantic attempt” is being made in the community by the new majority to get people to create “the impression” of a business cabinet, because UP leader Theo Heyliger will not be able to pass the screening to become a minister due to “investigations” against him.

He said this new political move by UP, DP and Laville will take St. Maarten back to 2010, when they were in government, as “political power will be in the same hands as before.”

Marlin questioned how much Laville had been paid to switch sides, especially after he had filed a complaint with the Prosecutor’s Office against Heyliger several weeks ago claiming that he had tried to exhort undue pressure on him. Laville had said on Wednesday that he had not been paid.

Laville “suddenly changed” his mind “without any sign of problems or a crack in the wall,” after supporting the 2013 budget and getting a number of motions passed in April, among them one in support of the planned justice park.

Marlin also raised the issue of the Bada Bing tape that the brothel owner has claimed was created at the request of Heyliger as an attempt to get back in government.

He said the people are fed up of the constant changes and there is even a signature drive ongoing in support of new elections. “They don’t want this nonsense.”

Addressing why he did not take the prime minister’s post in May 2012, Marlin said DP wanted it and he had no problem with it, because he was for working for the people.

Governor confirms receipt of letters

SATURDAY, 11 MAY 2013

HARBOUR VIEW–Governor Eugene Holiday has confirmed receipt of several letters submitted by Prime Minister Sarah Wescot-Williams related to the ongoing political developments in the country. In a press statement, issued Friday evening, he stopped short of saying whether he would meet with the various players to map out a way forward.

Further, Governor Holiday, following various discussions, received a letter dated May 10, from Wescot-Williams with an overview and her observations of the current political situation for his consideration. No further details on that overview were given in the press statement.

The governor received on Monday, from Wescot-Williams a letter signed by Democratic Party Parliamentarians Roy Marlin and Leroy de Weever as well as independent Member of Parliament (MP) Romain Laville, in which they informed the governor of their withdrawal of support from the present National Alliance/DP/independent three coalition. The letter was submitted by the trio to Wescot-Williams who forwarded it to the governor.

The government also received on the same day, also from Wescot-Williams, another letter signed by the five United People’s (UP) party MPs, two DP MPs and Laville, in which they informed him of their willingness to form the next government. The letter included an attached governing declaration signed by UP leader Theo Heyliger, Wescot-Williams as DP leader and eight MPs.

The governor received on Friday, the resignation of Justice Minister Roland Duncan as a result of the declaration of withdrawal of support from the government by the eight MPs.

ZATERDAG, 11 MEI 2013

PHILIPSBURG — Justitieminister Roland Duncan heeft op gisteren zijn ontslag aangeboden aan gouverneur Eugène Holiday. Vier andere ministers weigeren vooralsnog af te treden. Vicepremier William Marlin zei op een door hem belegde persconferentie dat hij vasthoudt aan de ontbinding van het parlement, gevolgd door nieuwe verkiezingen.

Dat meldt correspondent Hilbert Haar op Caribisch Netwerk. Afgelopen maandag ontving de gouverneur een brief van de tweemansfractie van de Democratische Partij en het onafhankelijk parlementslid Romain Laville, waarin staat dat zij hun steun aan de coalitie hadden ingetrokken. Op dezelfde dag overhandigde minister-president Sarah Wescot-Williams de gouverneur een brief, getekend door de vijf leden van de Verenigde Volkspartij UP, de Democratische Partij fractie en Laville waarin zij hun bereidheid een nieuwe regering te vormen aangaven.

De groep van acht diende ook een regeringsverklaring in bij de gouverneur, die mede is ondertekend door UP-leider Theo Heyliger, DP-leider Wescot-Williams en de acht parlementsleden die de nieuwe meerderheid vormen

Op dinsdag ontstond een knallende ruzie in de ministerraad tussen met name Wescot-Williams en Duncan, omdat Wescot-Williams weigerde stappen te ondernemen om het parlement te ontbinden en nieuwe verkiezingen uit te schrijven zoals de meerderheid van de ministerraad wilde.

Vicepremier William Marlin zei gisteren dat hij vasthoudt aan de wens het parlement te ontbinden. Op maandag vergadert het parlement, maar volgens Marlin zal daar ‘geen meerderheid zijn voor moties van wantrouwen’ tegen de ministers die hem steunen.

Duncan heeft over de beraadslagingen in de ministerraad uit de school geklapt met gedetailleerde verklaringen die op een roddel-website verschenen. Hem hangt mogelijk vervolging wegens schending van het ambtsgeheim boven het hoofd. Het Openbaar Ministerie is op de hoogte van de uitlatingen die Duncan heeft gedaan maar heeft nog geen beslissing genomen over vervolging. Op schending van het ambtsgeheim staat boete of een gevangenisstraf van maximaal een jaar.

CFT: No mistakes in semi-annual report on St. Maarten

THURSDAY, 18 APRIL 2013

PHILIPSBURG–The Committee for Financial Supervision CFT says there were no mistakes in its semi-annual report.

CFT was responding to recent newspaper reports quoting Finance Minister Roland Tuitt, who said CFT’s most recent semi-annual report contained a misinterpretation of facts.

CFT said it considered it important to set the record straight. The Committee for Financial Supervision submits a written report of its activities to the Kingdom Council of Ministers twice a year. This report, the so-called semi-annual report, is forwarded to the governments and parliaments of the respective countries, CFT said.

On March 28, local newspapers reported on comments made by Tuitt, who said CFT was “wrong” when it stated in its report that no audited financial statement for St. Maarten had been presented to Parliament to account for the use of tax money since October 10, 2010. Tuitt said reports had been made by the General Audit Chamber and he was going to check whether those reports had been sent to Parliament for review and approval.

However, CFT said that on page 15 of the semi-annual report it was stated that it had received the draft financial statements for the extended year 2010/2011 on October 31; thus the draft financial statements over the period starting on October 10, 2010, until December 31, 2011.

On the same page it is mentioned that the SOAB and the General Audit Chamber would report about these draft financial statements not earlier than 2013. Up until now this reaction has not been received. It is furthermore stated on page 22 that the financial statements are only available in draft and have not yet been adopted by Parliament.

The General Audit Chamber submitted its report on the financial statements of the former island territory of St. Maarten to Parliament on December 7. This concerns financial statements over the period up to October 10, 2010, and not over the period after October 10, 2010.

This report, CFT said, was shown to the media during a press conference of the Minister of Finance and was published on the Website of the General Audit Chamber. The financial statements from October 10, 2010, to December 31, 2011, have not been submitted to the General Audit Chamber as yet.

For the sake of completeness, the Committee said in a release of March 25, that “up ’til now none of the two countries have an audited annual report to present to Parliament to account for the use of tax money since October 10, 2010.”

“This statement is correct. No audited financial statement was presented to the Parliament of the period since October 10, 2010. For the Committee for Financial Supervision it is of great value that financial statements are timely drawn up and that accountability is given to Parliament, reason why this subject was explicitly brought forward in the semi-annual report,” CFT said in its release.

“The CFT cannot but conclude that the facts given in the semi-annual report are correct. To avoid errors, it is a good practice that the CFT confers with the Ministry of Finance before it submits its semi-annual report to the Kingdom Council of Ministers. The Ministry, however, did not detect any factual inaccuracies during the two weeks that it had to provide comments on the draft semi-annual report.”

Budget 2013 approved by St. Maarten parliament

THURSDAY, 18 APRIL 2013

~ Several environmental related motions passed ~

 PHILIPSBURG–The 2013 budget was passed by Parliament after 3:00am Thursday with votes of the ten members of National Alliance (NA)/Democratic Party (DP)/Independent three coalition. The four members of the United People’s (UP) party were in the meeting, but were not present when it was time to vote on the budget.

MP Leroy de Weever (DP), who had said he had issues with the budget, in particular the intention to raise revenue by increasing the turnover tax on alcohol and tobacco products, voted for the budget. He said he had been assured by Prime Minister Sarah Wescot-Williams (DP) and Finance Minister Roland Tuitt (NA) that everything possible would be done to mitigate any shortfall in tax collection, so he voted for the budget.

The budget stands at NAf. 457,874,400, some NAf. 25,324,800 more than the approved 2012 budget. In the coming days, government will approach the Central Bank of Curaçao and St. Maarten to float a NAf. 150 million bond to allow several capital projects to be carried out, including completion of the ring road and purchase of Emilio Wilson Estate.

UP Parliamentarian Dr. Ruth Douglass was not present for the meeting.

The budget deliberations started in the Central Committee last week Monday and continued until early Thursday morning as MPs voted on 16 motions.

All six of independent MP Romain Laville’s motions were passed by Parliament although coalition partner DP parliamentarians were not present for all. UP was not present for 15 of the motions. UP was present for its motions on the establishment of a special victims unit, on allocation of money from the Crime Funds for Second Chance Foundation, and to bring relief from high GEBE bills.

Several of the motions passed unanimously as no MP asked for individual voting.

DP supported the motion to amend the Civil Code to allow employees to transfer to a new company if the one for which they worked was bought out or acquired. This would allow the employees to retain their benefits and jobs.

The motion to require a mandatory employee/employer pension plan was supported unanimously.

DP did not support the motion for free education for all primary school pupils. Individual voting was requested by DP and afterward its two MPs Roy Marlin and Leroy de Weever left the chamber. De Weever had indicated earlier that some motions would cost money that was not available.

The motion for the development of a beach protection law was passed unanimously.

The motion to establish a feeding programme for all schoolchildren was passed unanimously.

A motion supporting the planned Justice Park was adopted with eight votes for and one against from MP Marlin (DP).

Independent MP Frans Richardson’s motion urging government to complete the new government administration building and to construct Block D for the tax department and a parking garage was passed unanimously.

MP Richardson’s motion to introduce heritage education in schools and for hospitality workers was passed unanimously.

The motion instructing government to obtain the designs for the planned cricket stadium, football field and softball field and to find funds for the project was passed with eight votes for and one against from MP Roy Marlin. Motivating his vote, Marlin said the motion would have consequences on the budget and will cause an issue with the Committee for Financial Supervision CFT.

MP Richardson’s motion to obtain unrestricted access to Fort Amsterdam was adopted by all 10 coalition MPs.

The motion to protect Mullet Pond was passed by the eight votes of the five NA parliamentarians and three independent parliamentarians.

MP Richardson’s motion to make budget amendments to allocate funds from the current budget for Environmental Protection in the Caribbean (EPIC) was adopted unanimously.

MP Frans Richardson’s motion to regulate election campaign materials, campaigning outside polling stations, prevent vote buying and not allow cameras and cell phones in polling stations was passed unanimously.

Independent MP Patrick Illidge’s motions to allocate NAf. 50,000 from the crime fund to support Second Change Foundation to support youngsters who have had a brush with the law was passed by 13 votes. MP Jules James (UP) was not present for the vote.

Illidge’s motion to provide 10-20 per cent relief of the GEBE bill for less fortunate and senior citizens was passed by 13 votes. MP Jules James was not present for the vote.

The UP motion to reallocate monies from the Voluntary Corps St. Maarten for the establishment of a special victims unit was not passed. Only the four UP members and De Weever (DP) voted for motion.

Moties hebben gevolgen voor krappe begroting

ZATERDAG, 20 APRIL 2013

PHILIPSBURG — Zeven van de vijftien moties die donderdag door het parlement werden aangenomen tijdens de behandeling en goedkeuring van de toch al krappe begroting, hebben financiële gevolgen daarvoor.

Boven aan de lijst staat de bouw van een cricketstadion, waarvoor fondsen gevonden moeten worden. Ook de constructie van twee kantoorgebouwen voor de overheid, die dit jaar nog moet beginnen, zal op de begroting drukken.

Verder werd een motie aangenomen voor bescherming van het milieu door de Caribbean EPIC Foundation, die een jaarlijkse subsidie van 359.000 gulden nodig heeft. Deze moties en de benodigde financiën zullen ongetwijfeld ook voor gefronste wenkbrauwen zorgen bij het College financieel toezicht (Cft). Dat heeft de begroting voor 2013 voorlopig goedgekeurd, maar moet nu kijken of die voldoet aan de gestelde criteria van het financieel toezicht.

In drie moties wordt de opdracht gegeven om financiële ruimte te maken dan wel fondsen te vinden voor de aanleg van een cricket-, voetbal- en softbalveld en de twee gebouwen voor de overheid. De moties werden ingediend door de onafhankelijke Statenleden Frans Richardson, Romain Laville en Patrick Illidge, die de NA/DP-coalitie steunen.

De motie voor gratis onderwijs haalde het met een minimale meerderheid van 8 stemmen maar werd niet door de DP-fractie gesteund omdat de kosten hiervoor nog niet bekend zijn. Dat geldt ook voor de motie voor het schoolmaaltijden-programma die unaniem werd aangenomen.

Hiervoor moet volgens het parlement samengewerkt worden met restaurants en groothandels. Laville suggereerde dat hiervoor producten gebruikt kunnen worden die vlak voor het einde van de houdbaarheidsdatum zitten, zodat deze niet weggegooid hoeven te worden door de groothandels en supermarkten.

De geplande 100 miljoen gulden voor het Justitieplan werd ook goedgekeurd. Illidge stelde daarbij voor om 50.000 gulden vrij te maken uit het Criminaliteitsfonds voor de Second Chance Foundation voor rehabilitatie en integratie van jongeren die uit de gevangenis komen.

Plenary session on draft 2013 budget starts in St. Maarten parliament

TUESDAY, 16 APRIL 2013

PHILIPSBURG–The draft 2013 budget has entered the final stage before Parliament takes a vote on whether to approve it. The plenary session of Parliament began on Monday afternoon with the seven members of the Council of Ministers making presentations on the work of their ministries, plans and programmes for the rest of the year.

The debate went on until after 9:00pm with only United People’s (UP) party interim fraction leader Member of Parliament (MP) Sylvia Meyers-Olivacce making her statement and posing questions to ministers on issues raised in their presentations and on their portfolios in general. The debate continues today, Tuesday, at 9:00am, with more questions from MPs and answers from ministers.

The meeting was postponed until today after Democratic Party (DP) MP Roy Marlin requested a vote on whether the meeting should continue at the later hour, as the MPs, ministers and civil servants had been busy since early in the morning. The majority of MPs voted to stop the meeting for the night.

Parliament hopes to wrap up the debate and have the budget tabled for a vote of approval at least before the week comes to a close.

MP Meyers-Olivacce stated at the start of the meeting that her party had protested the closure of the Central Committee meeting early Saturday. Fellow UP Parliamentarian Jules James said UP would take the matter further, as had been stated in the party’s letter to President of Parliament Rodolphe Samuel.

Much of the information from the ministers at the beginning of the plenary session also had been put forward in the Central Committee meetings that occupied MPs for the whole of last week.

Prime Minister Sarah Wescot-Williams stated in her presentation that other countries worldwide were “grappling” with having their budgets approved on time, so St. Maarten’s struggles were not unique. She said government was very much aware that the budget was late getting to Parliament, but it should be noted that the budget had come to Parliament having passed the scrutiny and lived up to the requirements of the kingdom laws on temporary financial supervision.

The lateness of the budget and the fact that it was made public prior to the deliberations in the Central Committee of Parliament have caused some complications. The availability of the budget online means that members of the public could and did take the opportunity to read the budget and make suggestions to government. However, due to the lateness, it is somewhat difficult to take the suggestions into consideration, she noted.

Wescot-Williams commended MPs Frans Richardson (independent) and Johan Leonard (United People’s party) for submitting their draft legislation to ban the importation, distribution and sale of single-use plastic bags. She called on the public to develop “an appreciation for cleanliness” and to be cognisant of the amount of money paid by government to keep the country clean.

Finance Minister Roland Tuitt outlined the basics of the draft budget that stands at NAf. 457,874,400, some NAf. 25,324,800 more than the 2012 approved budget. Government took no loans in 2012. For this year, the Central Bank of Curaçao and St. Maarten will be approached to float a bond of some NAf. 150 million to cover capital projects.

Once the budget is passed by Parliament, a budget booklet will be produced by the Finance Ministry, Tuitt said, as a way for the community to be better informed “about how their money will be used.”

He said keeping the balance in government’s finances “needs constant review” and buffering against external shocks to the economy where possible.

Deputy Prime Minister/Minister of Public Housing, Spatial Development, Environment and Infrastructure William Marlin outlined several projects in his ministry, including the completion of the Dutch Quarter main road, with work slated to start during the summer months and be concluded by December 15. He will sign off soon on the advice to connect the St. Peters main road to the main sewage line on L.B. Scott Road.

Marlin also highlighted challenges faced by St. Maarten Housing Development Foundation with tenants adding rooms to rented houses, larger families living in houses designed for families of no more than four people and tenants who are delinquent with their rent.

He also revealed plans for a solar farm in Philipsburg and the possibility of replacing fossil fuel generators at the Cay Bay power plant with ones that are more environmentally friendly.

Justice Minister Roland Duncan again underscored his issues with the Coast Guard and the constraints his ministry faces with budget cuts. He said the Justice system continued to do its job in spite of many challenges.

Education, Culture, Youth and Sports Affairs Minister Silveria Jacobs outlined her ministry’s budget per department and highlighted several projects, including a week of celebrations leading up to St. Maarten/St. Martin Day (November 11), work to get Fort Amsterdam on the World Heritage List and support for the country’s students at home and abroad.

Public Health, Social Development and Labour Minister Cornelius de Weever also outlined his ministry’s work and plans. He pointed out that customer service definitely had improved after emphasis was placed on training and upgrading. His ministry received the lion’s share of the budget increase. The bulk of the money will go to taking care of the most vulnerable groups in the community.

Tourism, Economic Affairs, Transportation and Telecommunication Minister Romeo Pantophlet told Parliament his ministry would continue to make St. Maarten a year-round destination and niche market. He plans to finalise e-zone establishment, maritime registry, bring the airport back up to category one and establish a civil aviation registry.

St. Maarten government to seek NAf. 150 million bond once budget 2013 is approved

MONDAY, 15 APRIL 2013

~ Budget debate continues today ~

PHILIPSBURG–Once the draft 2013 budget is approved by Parliament, the Central Bank of Curaçao and St. Maarten has been approached to float a bond of some NAf. 150 million to cover government’s capital expenses. The public plenary session of Parliament on the budget starts today, Monday, at 10:00am in Parliament House.

Among the projects that bond will be used to execute or complete are the ring road around Great Salt Pond and Link Six roadway. The projects are slated to start as soon as the bond is floated and some will be completed in 2014.

The Central Committee reviewed and debated the draft budget throughout last week with Members of Parliament making suggestions to better the budget and requesting documents to aid in gaining further insight.

Government hopes to get the budget passed this week to comply with the Kingdom Law on Temporary Financial Supervision for Curaçao and St. Maarten. The law, among other criteria, requires the country to have a balanced budget. Government is currently operating on the budgetary figures of 2012.

The draft budget totals NAf. 457,874,400, some NAf. 25,324,800 more compared to the 2012 approved budget. The draft budget does not contain any new policies, due to financial constraints, Finance Minister Roland Tuitt told parliament last week.

SER: Dollarisation advice doesn’t criticise work of the Central Bank Curaçao & St. Maarten

SATURDAY, 13 APRIL 2013

PHILIPSBURG–The Social Economic Council SER says its advice, titled “St. Maarten stepping out of the monetary union,” does not state “in any way” that the Central Bank of Curaçao and St. Maarten “would be dysfunctional or broken.” This was in response to Finance Minister Roland Tuitt’s comments in Parliament Thursday that the bank is functioning well and there is no need to fix it if it is not broken.

Advice SXM stepping out of the monetary union 28.02.13

SER, which is headed by Chairman Rene Richardson, views the Central Bank as “a highly professional, well-functioning institution.”

Also, information provided by the Central Bank “contributed greatly” to SER’s advice. “Furthermore, beefing up the St. Maarten branch of the Central Bank is a desirable development, whatever the future of the monetary union may be. If it would come to dissolving the monetary union, St. Maarten will at the very least need a regulatory body for supervision of the banking sector, and certainly a research and statistics division to monitor the new financial system.”

“What is broken,” according to the SER advice, “or at least at great risk, is the monetary union, the situation of Curaçao and St. Maarten sharing the same currency.”

The common currency – the Netherlands Antilles guilder – is underpinned by a common foreign exchange reserve. This is the amount of dollars and other foreign currency the bank keeps to ensure that a Netherlands Antilles guilder at all times can be exchanged for a dollar at the official rate of NAf. 1.79 to the US dollar, even if the countries temporarily spend more dollars than they earn as a union.

The foreign exchange reserve is permanently fed by the dollars the two countries earn from export, their tourism sectors and other earnings, while it is depleted at almost the same rate by their imports and other dollar spending.

According to the IMF and other expert organisations, the structural problem between St. Maarten and Curaçao is that their economies do not operate at the same wavelength.

“On balance, St. Maarten consistently adds to the foreign exchange reserve, while Curaçao tends to draw from it. It is the worrisome financial situation in Curaçao that undermines our monetary union, as government budget deficits tend to lead to balance of payments or foreign exchange deficits as well,” the SER stated.

SER added in its press statement, “If the foreign exchange reserve consistently runs low, the Central Bank, however well-functioning and well-equipped, in the long run will not be able to maintain our pegged rate to the dollar and the value of our currency would be at risk. This negative trend in the foreign exchange reserve has been camouflaged for years by debt relief and by Dutch aid monies flowing in. The Dutch aid has come to an end, while debt relief was a one-time windfall.”

Compounding the problem of unbalance between the two countries is that their economies are of unequal size. This makes the risk of unfavourable financial policies in Curaçao far greater than the other way around. “Simply put, Curaçao is able to drag St. Maarten down monetarily, but we would not easily be able to put Curaçao at risk.”

The minimum safe level for the foreign exchange reserve is internationally recognised as the sum needed for three months’ worth of imports. This level has been maintained safely for decades. However, the foreign exchange reserves dipped below this level in 2012 for the first time in many years. This and other factors prompted the SER to initiate an unsolicited advice on the future of the monetary union.

SER concluded that maintaining the monetary union would be too risky. Once it is decided to dissolve the union, the next choice would be between either creating a “St. Maarten dollar” for the 30 per cent of the economy that is not dollarised yet, or to introduce the US dollar as the sole legal tender. For practical reasons, the majority of SER advised to generally introduce the US dollar.

Finance Minister Tuitt’s view that “no country in the world that has dollarised has been successful” must be refuted, as next-door neighbours the British Virgin Islands introduced the US dollar in 1959 without a glitch since then, while many Latin American countries have used temporary or permanent circulation of the US dollar as a means to combat hyperinflation successfully, noted SER.

“St. Maarten, however, if dollarising, would not do so from a position of weakness, but from strength, as our country – taken separately from Curaçao – does not have structural balance of payment problems and it is already 70 per cent dollarised.”

SER wishes to support Tuitt’s view that any individual in the community can give advice to the government and it certainly encourages every citizen to do so. At the same time, SER has a specific advisory obligation anchored in the law and provides advice from the tripartite background of business, labour and independent experts.

A SER advice is a reflection of a broad array of social economic partners in civil society who bring forward joint advice, often unanimous and always with majority support among members. It is noteworthy, however, that so far no official reply or feedback has been given by government on any of the advices – solicited or unsolicited – brought forward by the SER.

St. Maarten minister Tuitt: Central Bank ‘not broken,’ continues to function optimally

FRIDAY, 12 APRIL 2013

PHILIPSBURG–The Central Bank of Curaçao and St. Maarten is “functioning optimally, effectively” and as an effective tool in the economy, says Finance Minister Roland Tuitt. This was his response to queries from Parliament about plans to possibly break the monetary union that has existed since October 2010 when the two islands became countries within the Dutch Kingdom.

“Why are we talking about separating it? It is the backbone of the economy of St. Maarten and Curaçao,” the minister said. “If something is not broken, why we are trying to fix it? … We are improving it.”

Expounding on that improvement, Tuitt pointed out that the Central Bank branch is being built up and soon statistical information will be generated to aid economic development of the country. He added that new staff have been hired, including a young St. Maartener, Giovanella de Weever. She was present with Tuitt during the presentation on Thursday as the debate on the draft 2013 budget continued in the Central Committee of Parliament.

Prime Minister Sarah Wescot-Williams also backed the minister’s stance on the build up of the bank. She said at the end of February that St. Maarten’s “primary priority” is getting its branch of the Central Bank of Curaçao and St. Maarten (CBCS) “up and running.” Her comments had come after a statement from (now caretaker) Curaçao Prime Minister Daniel Hodge about his plans to discuss the structure and workings of the bank while in The Hague next week.

Hodge’s statements come “as no surprise” given the position of Curaçao’s coalition on CBCS, she said.

However, she stated on the working of the monetary union, “On more than one occasion, we of St. Maarten have expressed that the monetary union between Curaçao and

St. Maarten is not working out as it was expected and supposed to … we too will evaluate the workings of the CBCS on the feasibility of continuing together or apart.”

As for the Social Economic Council SER “strongly” advising government “to step out of the monetary union” with Curaçao and opt for dollarisation in an advice dated February 28, Tuitt said SER is an advisory council and “any individual in the community can give advice to government.”

Tuitt is not in favour of dollarisation. No country in the world that has dollarised has been successful, he said, pointing to Saba and St. Eustatius as “prototypes” for the effects of dollarisation on an economy.

NAf. 6 million collected in Road Tax payment on St. Maarten

FRIDAY, 12 APRIL 2013

PHILIPSBURG–Some six million guilders have been collected to date by the Receiver’s Office in Road Tax, some 75 per cent of the total amount expected, Finance Minister Roland Tuitt told Parliament as the Central Committee meeting on the draft 2013 budget continued with ministers answering questions posed by Members of Parliament.

Tuitt is confident that the remaining NAf. 2.5 million outstanding in Road Tax will be collected before the end of June. “So who’s crazy? Not Roland Tuitt,” he said, as a response to the press supposedly calling him crazy for not issuing a number plate or a sticker this year for vehicles.

He continued to express his belief that “the population is very trustworthy” and has complied with the responsibility to pay the Road Tax.

Police started road controls on Wednesday to seek out defaulting taxpayers. Tuitt urged those who have not paid Road Tax as yet to do so as soon as possible.

The Social Economic Council SER had advised government in November 2012 to continue with the issuance of number plates when vehicle owners pay their tax to minimise loss of revenue. SER referred to the introduction of this new system as “too hard to enforce under the present circumstances” and considered it to carry a high risk of non-compliance.

2011 cost of living adjustment payout 50 percent less on St. Maarten

POSTED: 04/11/13

St. Maarten – The government is willing to pay out half of the money that is owed to civil servants and teachers for the cost of living adjustment (Cola) for 2011, Prime Minister Sarah Wescot-Williams told Parliament yesterday. In 2011, the cost of living increased by 4.6 percent which meant that salaries for government workers should have also been adjusted by 4.6 percent. Instead the government says that it will only pay out 2.3 percent, which has been placed on the draft 2013 Budget.

“Financially it is untenable. If we continue like this the personnel costs in the budget would increase drastically,” the prime minister said.

MP Jules James requested clarification on when the payment of the 2011 Cola will be made. The prime minister responded that date has been determined especially with the budget not yet approved.

On Wednesday she dispatched a letter to the organized consultative body (GOA) reiterating that the government would not be continuing with salary indexation via the Cola and that civil servants would only be able to half of their entitlements.

The prime minister indicated that the Cola is part of a personnel policy that the government, as part of the Island Territory, had approved several years ago but it is not a law.

“In that council it mentions that the Executive Council will determine the payment of that Cola every year on the basis of the financial possibilities of government.”

Unions have threatened to send a letter to government with an ultimatum if the 2011 Cola is not paid. Finance Minister Roland Tuitt has invited a Holland based firm CAOP to assess the situation on St. Maarten and suggest alternatives.

St. Maarten Government ignored SER-warning about road tax: New system could cost state millions

POSTED: 04/3/13

St. Maarten –The Social Economic Council advised the government on November 26 of last year to postpone the introduction of a new system for the collection of road tax until January 1, 2014, warning that without a proper control system in place it could cost 1.75 million guilders in annual revenue.

The government ignored the advice and also delayed its publication. On March 20, Finance Minister Tuitt announced that out of the 28,000 license plate holders that were registered in 2012, a bit more than 11,000, or 40.1 percent still had not paid their road tax. The annual loss of 1.75 million guilders the SER calculated is based on 25 percent non-compliance. At 40 percent non-compliance, the government will miss out on 2.8 million guilders.

The national ordinance on public administration stipulates that advices like those from the Social Economic Council have to be made public as soon as possible, but no later than six weeks after they have been submitted to the government. The advice about the road tax was published in the National Gazette last week Thursday, March 28 – more than seventeen weeks after the SER submitted it. The deadline for publishing the advice was January 7.

In its advice, the SER wrote that enforcement of compliance with the new system “depends primarily on the tax inspectorate and the tax receiver’s office. This constitutes an additional administrative burden on both entities that are still developing and adapting to their new roles under country status.”

The SER spotted more weaknesses: “Even if the tax inspectorate and receivers were fully equipped to enforce the new motor vehicle tax, the success of collections would depend on the quality of the database of the motor vehicle registration system. This implies the need for correct data regarding the identity of the vehicle’s owner, and correct address and tax information. The different government databases (census, receiver’s tax inspectorate, etc.) are not yet interlinked to a degree that permits instant validity checks on information provided, nor is continuous updating of for instance address information guaranteed.”

With all these handicaps in the way, the SER foresaw what is happening right now: “As long as administrative control is not fully developed, enforcement will to a large extent come down to roadside checks. However, in the absence of visually observable proof of payment, these controls will become far less efficient than they are now.”

The SER noted that the old system (which was current at the time the advice was written) was “generally considered unwieldy and inconvenient” because it forced motorists to join long lines at the Census Office to collect new number plates and to pay their road tax. “Physically changing the plates each year constitutes a waste of money and resources,” the advice states.

The annual number plate dance had one obvious advantage: it made immediately visible who had paid the road tax, and who had not. “The new system lacks any means of visually observing whether vehicle tax has been complied with. Payment is to occur annually upon the initiative of the vehicle owner,” the advice states.

While the government presented the new system as budget neutral, the SER had its reservations about that already in November. “Under the present circumstances the new system carries a great risk of non-compliance, therefore compromising the revenue of the road tax and making the proposed measures less than budget neutral.”

All this does not mean that the SER was entirely negative about the new system. On the contrary: it “warmly welcomed” the “more up-to-date and less burdensome method.” At the same time the council considered short term introduction “too hard to enforce” and carrying “a high risk of non-compliance.”

“This may very well lead to reduced government revenue and an inequitable situation between compliant and non-compliant citizens,” the SER wrote.

The council doubted whether the government will see any of its estimated saving – budgeted at 225,000 guilders per year. Assuming 7 million guilders in road tax revenue and a 25 percent drop in compliance would cost the government 1.75 million guilders – more than 7.5 times the estimated savings.

The SER suggested to government not to burden car dealers with a 20-guilders tax on each traded vehicle. “An annual lump sum on business turnover would absolve the businesses and the tax inspectorate from the administrative burden of registering each vehicle separately for a very limited amount of time, while it has the same fiscal effect.”

In conclusion, the SER advised the government “to focus on efforts to update and interlink government databases in such a way that the tax payers’ data to be entered into the motor vehicle registration system is ensured to be valid, and will be kept up to date continuously.”

The SER furthermore urged the government to build “a system of administrative enforcement that is fail-safe and makes compliance as inevitable as it is under the current system.”

St. Maarten union leader queries consultants studying the cost-of-living adjustment system

WEDNESDAY, 27 MARCH 2013

~ Says realities are different ~

PHILIPSBURG–Windward Islands Teachers Union (WITU) President Claire Elshot said on Tuesday that the consultants who will study the cost-of-living adjustment (COLA) scheme St. Maarten uses might not be fully in touch with the realities of St. Maarten.

Elshot was expressing her opinion on the recent announcement by Minister of Finance Roland Tuitt that consultants would be contracted from Holland to study what he called the outdated COLA system. Tuitt stressed, as he has before, that the current system is not conducive and feasible in St. Maarten’s current economic climate.

However, Elshot said the consultants lived in Holland where the realities are different than those of St. Maarten. She said, for example, that Dutch consumers are protected by legislation and cost controls are in place, which is quite the contrary in St. Maarten. She said Dutch civil servants and teachers had better salaries and benefits than in St. Maarten.

As such, she said consultants from Holland could not give an opinion on “our way of life” when their realities were different. She also said that while the minister and others were looking for a sustainable system for the future, the question remained what would happen with the current outstanding COLA payments of 2011. “This has to be paid,” she said, adding that government was doing business “in a strange way.”

As for the ultimatum letter she had said would be sent to government last week, Elshot explained that this had been retracted for the time being after requests were received from the other unions who wanted the letter to be submitted in a unified manner. Elshot said the ultimatum letter would be forwarded to government when all unions had given their input.

St. Maarten draft budget 2013 posted on line

WEDNESDAY, 27 MARCH 2013

~Health, welfare largest increase, tourism biggest cit in budget~

ZJ 2012-2013-031 LV Begroting Dienstjaar 2013 Part I – web

ZJ 2012-2013-031 LV Begroting Dienstjaar 2013 Part II

PHILIPSBURG–The Ministry of Health, Social Development and Labour has been allocated the largest increase in the draft 2013 budget. The ministry receives a NAf. 16.3 million increase in its budgetary allocation compared to 2012. The ministry’s budget stands at NAf. 77.8 million, up from NAf. 61.5 million.

The ministry is expected to see a drop in income of some NAf. 3.6 million this year. It is the only ministry with a projected decrease in income, according to the copy of the draft budget available to the public on Parliament’s website: www.sxmparliament.org. The ministry saw an income of NAf. 10.9 million last year. Income for this year is projected at NAf. 7.2 million.

The country budget stands at NAf. 457,874,400 – an increase of NAf 25.3 million in comparison to last year. The budget is presented as balanced and has received a positive advice from the Committee for Financial Supervision CFT.

The Ministry of Education, Culture, Youth and Sports was allocated the largest slice of the budget. The ministry gets NAf. 123.1 million, an increase of NAf. 12.3 million from last year. The ministry should see an income of some one million guilders.

In contrast, the Ministry of Tourism, Economic Affairs, Transportation and Telecommunication saw the biggest cut to its budget for 2013. The ministry loses NAf. 2.2 million. A total of roughly NAf. 28 million has been allocated to the ministry, down from NAf. 30.3 last year. The ministry is projected to bring in NAf. 47.5 million in income, a growth of NAf. 4.7 million.

The Finance Ministry’s budget has been cut by NAf. 1.5 million, putting its allocation at NAf. 41.6 million for this year, compared to NAf. 43.1 million last year. The ministry is forecast to bring in an income of NAf. 392.8 million, an increase of NAf. 22.8 million over 2012.

The Ministry of Justice also saw a cut to its budget; NAf. 66.9 million has been allocated to the ministry, a decrease of NAf. 520,900 compared to last year. The ministry is expected to generate NAf. 728,000 in income, an increase of NAf. 400,000 from 2012.

The Ministry of Public Housing, Spatial Development, Environment and Infrastructure received an allocation of NAf. 34,485,200 for this year, an increase of NAf. 7,000 from last year. This ministry is expected to see an income of NAf. 4.9 million, same as last year.

Ministry of General Affairs received an allocation of NAf. 69.0 million, a decrease of NAf. 331,600 from last year. The ministry is expected to bring in an income of NAf. 3.5 million the same as 2012.

Parliament and the Councils of State will receive NAf. 16.7 million, up from NAf. 15.4 million in 2012. No income is expected.

The budget debate in the Central Committee of Parliament is expected to start in April.

The country budget has been available for the first time to the public on the internet. President of Parliament Rodolphe Samuel took the initiative to have the draft budget placed online to give the public an opportunity to review it at the same time as Members of Parliament, according to a Parliament release.

The budget can be downloaded from Parliament’s website under the link “Draft Budget 2013 Document.”

St. Maarten draft budget 2013 sent to Governor Holiday

POSTED: 03/21/13

St. Maarten – Finance Minister Roland Tuitt sent the draft 2013 budget to Governor drs. Eugène Holiday Tuesday afternoon and from there it will be submitted to the parliament. Last week the Minister said at the press briefing that he would submit the budget to parliament on Friday. The minister told this newspaper yesterday that there were some technical details to be resolved, but that the draft is complete now.

Union to give St. Maarten government ultimatum to resolve Cost of Living adjustment

WEDNESDAY, 20 MARCH 2013

~Ready to mobilize members ~

PHILIPSBURG–The Windward Islands Teachers Union (WITU) will be issuing an ultimatum to government to resolve the Cost of Living Adjustment (COLA) issue for workers.

WITU President Claire Elshot said on Tuesday that the union had decided to draft a letter to government with a deadline for resolving the issue, because the patience of teachers is “running out.” She could not say when the deadline would be, as the letter had not been finalized at the time the information was given to the media at the Windward Islands Chamber of Labour (WICLU) weekly press conference on Tuesday.

Elshot said the letter was being sent because there had been no concrete proposal on the payment of COLA to date. She said unions had worked hard in the past to ensure that there would not be a backlog in this payment, and it seemed as if there was going to be a backlog now.

If government did not include COLA in the 2013 budget because of the demands of the Committee for Financial Supervision (CFT), she said, other provisions should have been made for this payment. She said government was aware that COLA was due every year and should cater to it.

“Teachers are running out of patience and we will move forward seriously on this issue,” Elshot said, adding that if the matter was not resolved, the union would have to “mobilize its members to tactically deal with this issue.”

Finance Minister Roland Tuitt had said earlier that CAOP, a Holland-based organization, will be conducting a report for the government of St. Maarten on COLA.

Tuitt said he had met with representatives of this organization during his recent visit to The Netherlands and a preliminary agreement to this effect had been made. CAOP will be speaking to representatives of the ministry responsible for personnel affairs, the unions and other stakeholders who have something to do with COLA. The group will be in St. Maarten for three days, during which their report will be prepared.

This report will be the basis for negotiation with the unions regarding the COLA, and for discussions in the advisory body for civil servant matters GOA.

CAOP advises and supports more than 200 employers in various sectors, including the Dutch government and the education and health care sectors. CAOP is the largest knowledge and service centre with regard to the labour market and labour relations within the public domain, it was stated on CAOP’s Website.

Ambitious tax measures in St. Maarten’s 2013 draft budget

POSTED: 03/16/13

St. Maarten – Of the 25 million guilders the government had to cut from its draft 2013 budget, 18.5 million has been realized, financial supervisor Cft writes in its positive advice with the adjusted draft budget. This brings the balanced draft budget down from 449 to 431.5 million guilders.

“Ambitious but necessary revenue-increasing measures must altogether generate 60 million of which 40 million has been entered into the draft budget,” the Cft wrote in its advice.

Part of the Cft’s recommendations see to it that St. Maarten puts the announced measures in a timely manner into practice. If that fails, the Cft warns with a reference to articles in the Kingdom law Financial Supervision, “This could in the end lead to an advice to the Kingdom Council of Ministers to give an instruction.”

One of the sectors that will have to contribute is the gaming industry. “An agreement has been made with the casinos in St. Maarten that they must contribute more to the society. Under consideration are a fixed fee per table and per slot machine or a 10 percent levy on payouts,” the advice states.

The draft budget assumes a fixed fee from which the fourteen casinos will contribute 7.5 million guilders to the state coffers. The government is also going to collect 1.8 million in arrears from the casinos.

While the Cft first speaks about an agreement with the casinos, further down in its advice it notes that the government still needs to reach an agreement with these businesses “about the way and the introduction of the measures whereby payment arrears will be collected immediately. An assessment as a lump sum is from a budget-technical point of view preferable, because this is more manageable than a 10 percent levy on payouts. Potential objections from the sector must be dealt with or taken into account in the legislation that is under consideration.”

Measures for increased tax compliance aim to bring in 36 million more in revenue; of this projection, 20 million has been entered into the draft budget. Among the measures are the establishment of a compliance team, the introduction of a sealed cash registration system; the tax inspector gets the authority to impose penalties and the administrative burden for filing tax returns will be eased through the introduction of electronic messaging; fines will be doubled.

All this must result in 8 million guilders more in turnover tax revenue. 11 million extra in wage taxes, and 1 million guilders in profit taxes – a total of 20 million. But the draft budget now opts for a more conservative approach: it contains only 10 million in additional tax revenue.

Higher taxes on alcohol and tobacco must bring in another 27 million guilders a year. The turnover tax for cigarettes goes from 45 to 50 percent, that for alcohol from 17 to 22 percent.

Because the intention is to introduce these taxes per April 1, there will be only 9 months left in the year, setting the potential extra revenue at 20 million. But here the approach is also conservative: the budget projects only 10 million.

“The calculation does not take into account a possible decrease in demand or parallel import via the French side of the island,” the Cft wrote.

The question is at this moment whether the higher tax rate will be in place by the first of April, given the fact that today is March 15 and Finance Minister Tuitt only announced this week that he would submit the budget to the parliament today.

Close to three million guilders collected in road tax on St. Maarten

THURSDAY, 14 MARCH 2013

PHILIPSBURG–Close to NAf. three million has been collected so far in motor vehicle tax, Finance Minister Roland Tuitt told reporters on Wednesday.

It could not be ascertained how this compares to the amount collected for the corresponding period last year. Tuitt said during Wednesday’s Council of Ministers press briefing that payment of the motor vehicle tax “is still going reasonably well.”

February 28 was the deadline for the payment. The minister urges persons who have not yet paid their tax to do so.

The Tax Administration collected a total of NAf. 8.5 million in motor vehicle tax payment in 2011 and sold 27,196 pairs of number plates. In 2010 more than NAf. 8 million in motor vehicle tax was collected and 25,966 pairs of number plates sold, while NAf. 8 million was collected in 2008 and NAf. 7.5 million in 2007. The amount collected for 2012 could not be ascertained.

Due to revised legislation, taxpayers will keep their existing plates. Individuals who require a number plate for a new vehicle will have to pay an additional fee. The fee usually charged for number plates in the past (NAf. 12.50 for regular vehicles and NAf. 7.50 for bikes and mopeds) only applies to newly purchased vehicles and is not being paid by owners with existing plates. These persons only need pay their annual vehicle tax. Vehicle owners are asked to keep the receipt for their taxes paid with the other required documents, in their vehicle.

This year government has expanded the options by which vehicle owners can pay their vehicle tax. They now have the choice of paying at the Receiver’s Office, at the bank or via internet banking.

In the latter two cases, vehicle owners are required to provide all relevant information such as their plate number, name, address and CRIB number so the payment can be processed at the Receiver’s Office.

SER submits monetary union advice to St. Maarten prime minister Wescot-Williams

WEDNESDAY, 13 MARCH 2013

PHILIPSBURG–The Social Economic Council SER submitted an unsolicited advice on the future of the monetary union with Curaçao to Prime Minister Sarah Wescot-Williams on Tuesday.

The SER advice is entitled “St. Maarten Stepping out of the Monetary Union.” SER was represented by Chairman René A. Richardson and legal advisor and lead editor of the advice Daniëlle Choennie-Babel.

This advice provides the opinion of the SER on the following issues: Why should St. Maarten consider stepping out of the monetary union and if we do leave, what is the next step forward? Should St. Maarten create its own currency or adopt the US dollar as legal tender?

The SER decided to pursue an unsolicited advice on this matter, in light of the serious financial difficulties confronted by Curaçao during 2012 and the possible fallout this might have for St. Maarten as partner in the monetary union.

Extensive research was done in St. Maarten, Curaçao, Aruba, and The British Virgin Islands. A large number of stakeholders from financial circles on different islands were interviewed. In addition, several experts were invited to the SER meetings to further elucidate on the topic. The research done resulted in a convincing majority advice which was presented to Wescot-Williams, the Minister of Finance Roland Tuitt, and Tourism, Economic Affairs, Transport and Telecommunications Minister Romeo Pantophlet. After release for publication, this advice will be available through the National Gazette and on the SER website www.sersxm.org

Budget 2013 to be submitted to St. Maarten parliament next week

THURSDAY, 07 MARCH 2013

PHILIPSBURG–The draft 2013 budget should be submitted to Parliament next week once the Finance Ministry completes “the final touches” on the follow-up report, Finance Minister Roland Tuitt said Wednesday.

His goal is for the draft budget to “physically reach Parliament next week.”

Tuitt, who is back from a recent trip to the Netherlands where he discussed the budget with kingdom officials, said he reiterated on the trip that St. Maarten does not have a big liquidity problem as the Committee for Financial Supervision CFT had indicated.

“Government has nothing to hide,” Tuitt said, outlining that the country has some NAf 46 million in reserves and will put another NAf 38 million in the coffers once a loan request is worked out and approved. That NAf 38 million was used in the past two years to finance capital projects.

The loan funds will also be used to pay off some government creditors, a move that will “put money into the local economy.”

“We are still reasonably solid,” the minister said.

Government is also still pursuing the remainder of the debt relief funds promised by the Kingdom Government to help give St. Maarten a healthy start as a country within the Dutch Kingdom. That money was never given and from Tuitt’s point of view the goal of the debt relief “was not attained.”

The 2010 kingdom budget had an allocation of some NAf. 120 million for St. Maarten’s debt relief. Only NAf. 63 million was paid out from that amount to cover the country’s debt to the General Pension Fund of the Netherlands Antilles APNA. The rest was held back, due to claims that St. Maarten was late submitting its bills for vetting.

The Dutch Government says the remainder of the money is not sitting in a bank account, Tuitt said.

Government is preparing to take the Dutch Government to court over the debt relief funds.

Holland-based group to do report on St. Maarten Cost of Living Adjustment

THURSDAY, 07 MARCH 2013

~ System outdated ~

PHILIPSBURG–CAOP, a Holland-based organization, will be conducting a report for the government of St. Maarten on the Cost of Living Adjustment (COLA).

Finance Minister Roland Tuitt told reporters at Wednesday’s Council of Minister’s press Briefing that he met with representatives of this organization during his recent visit to The Netherlands and a preliminary agreement to this effect was made.

He said CAOP is willing to visit St. Maarten and prepare the report. CAOP will be speaking to representatives of the ministry responsible for personnel affairs, the unions and other stakeholders who have something to do with COLA. The group will be in St. Maarten for three days during which their report will be prepared.

Tuitt said this report will be the basis to negotiate with the unions regarding the COLA and for discussions in the advisory body for civil servant matters GOA. “This is something good that we will be able to come soon to a finalization of this COLA issue,” Tuitt said.

He added that CAOP had explained that the COLA system is outdated and nowhere else in the world uses this system. Another system would have to be used.

CAOP advises and supports more than two hundred employers in various sectors, including the Dutch government and the education and health care sectors. CAOP is the largest knowledge and service centre with regards to the labour market and labour relations within the public domain, it was stated on CAOP’s website.

Dutch Finance Minister instructs his officials not to meet with St. Maarten minister Tuitt over Turnover Tax

THURSDAY, 07 MARCH 2013

~ Disrespectful, says Tuitt ~

PHILIPSBURG–Dutch Finance Minister Jeroen Dijsselbloem instructed State Secretary for Finance Frans Weekers and officials in the Finance Ministry to cancel all meetings that were set with Finance Minister Roland Tuitt in February, because of the ongoing issue about Turnover Tax (ToT) in relation to Saba and St. Eustatius.

Tuitt said, as far as he was concerned, there should be “a good relationship” among the partners in the kingdom. “I find that it is disrespectful of the minister for what he did.” A letter about this matter will be sent to the First Chamber [of the Dutch Parliament-Ed.] and the Kingdom Council of Ministers with copies to other departments.

“I find that this is not the way we are supposed to operate within the kingdom. If we have a problem, we will look for solutions and we are on the track of getting solutions right now.”

Tuitt explained at the Council of Ministers Press Conference on Wednesday that all the meetings had been planned. “Everything was going reasonably,” then just a few days before the trip the meetings were cancelled.

“We found it strange. What it turns out to be is that the minister of finance gave the decree – let’s call it that – that none of the departments within his ministry should give the minister of finance of St. Maarten any information. Don’t have any meeting with the minister of finance,” Tuitt said.

The reason for this “decree,” according to Tuitt, is the issue of the ToT. The Dutch Government wants St. Maarten to remove ToT from goods intended for Dutch public entities Saba and Statia. The Dutch want their demands to be met before meetings can be held with St. Maarten.

The ToT issue and other matters are to be looked at in a technical committee comprising two representatives from The Netherlands and two from St. Maarten. That committee is to formulate and present solutions to the two governments.

However, Tuitt pointed out that St. Maarten has never levied ToT on Saba and Statia. “The problem of the Turnover Tax has been created by Holland. It has not been created by St. Maarten. … Turnover Tax is included in all the prices on St. Maarten. Turnover Tax was implemented years ago, not yesterday.”

Turnover Tax was also implemented on Saba and Statia, he continued. However, when the two islands became Dutch public entities, the Dutch Government opted to impose “a kind of sales tax.” This tax is levied at the importation end and at the sales end. “You created a second, so why do you want someone who has a tax already to subsidise your tax, because you implemented a new tax? If doesn’t have logic.”

St. Maarten, The Hague agree to solve sticky issues together

FRIDAY, 01 MARCH 2013

THE HAGUE–St. Maarten Finance Minister Roland Tuitt and Dutch Minister of Home Affairs and Kingdom Relations Ronald Plasterk agreed on Thursday to establish a small joint committee on a technical level to sort out the sticky issues between the two countries.

Tuitt and Plasterk agreed that a more proactive approach was needed to work out issues affecting the relationship between the two countries. At the moment these issues mostly have to do with the Dutch public entities St. Eustatius and Saba.

The Dutch Government wants St. Maarten to solve issues such as the taxation on goods for St. Eustatius and Saba, the facilities for the medical evacuation helicopter, the departure tax and the landing of the telecommunications cable in St. Maarten. Minister Plasterk put his demands in a letter that he sent to St. Maarten Prime Minister Sarah Wescot-Williams earlier this month.

The idea is that on a technical level civil servants, two of each country, will discuss the issues and come up with solutions, after which these can be decided on at political level, explained Tuitt, following a meeting with Plasterk at the Ministry of Home Affairs and Kingdom Relations BZK in The Hague on Thursday.

It was also agreed during this meeting that St. Maarten will make an inventory of the technical assistance that it needs, and where exactly these technical assistants from The Netherlands should be placed in St. Maarten’s government administration. A number of ministries and departments are understaffed and need support.

Tuitt qualified the meeting with Plasterk as “positive.” “We agreed to have a more open and free dialogue. We have to communicate on all levels, so we can get things done in the best interest of St. Maarten,” he said.

More comprehension

In general, Tuitt was satisfied about his trip to The Netherlands. “My main objective was to create more comprehension for St. Maarten, explain our situation and how we do things. In that sense the timing was perfect, because we were able to give the Permanent Committee for Kingdom Relations of the Second Chamber of the Dutch Parliament information that they were not aware of,” he said.

Issues that came up in the meeting with the Second Chamber were the Turn-over Tax (ToT) system in St. Maarten, the general financial situation and St. Maarten’s successful efforts to set up a better operational financial system, the budgetary process and, very important, St. Maarten’s claim that it still has a right to funds that had been allocated under the debt relief exercise.

“The main purpose was to inform the Second Chamber on certain aspects that we think weren’t very clear to them. We wanted to give them the correct and accurate information,” said Tuitt about his meeting with the Dutch Parliament on Tuesday. He said there were indeed some differences of opinion between the St. Maarten Government and Dutch Parliament.

One such issue that St. Maarten and The Hague disagree on is the taxation of goods destined for St. Eustatius and Saba. The Dutch Government wants St. Maarten to stop levying Turn-over Tax on these goods, which they say is resulting in a double taxation, since St. Eustatius and Saba are also paying a general sales tax ABB.

But St. Maarten sees this matter differently. “We explained the Second Chamber that the ToT was instituted years ago, and that it was included in the price of the products and services. Some businesses calculate the ToT in their product and some absorb it. It is hard to determine that difference,” said Tuitt.

Debt relief

Another issue that the two governments disagree on is the debt relief, an exercise that was aimed at giving Curaçao and St. Maarten a healthy start when they attained the status of Country in the Kingdom on October 10, 2010. The Dutch Government considers this a closed chapter, but St. Maarten feels it is still entitled to a portion of the funds that were reserved at the time.

Tuitt told the Second Chamber that in St. Maarten’s opinion the debt relief exercise, which was anchored in the debt reorganisation law (Rijkswet Schuldsanering), should be properly completed. “The process was terminated one-sided, and that is not how we think it should be,” said Tuitt.

According to St. Maarten, it is still entitled to almost NAf. 120 million of the NAf. 183 million that was allocated in 2010. The Netherlands paid off St. Maarten’s NAf. 65.5 million debt to the Antillean General Pension Fund APNA. “We think that money should still be available.” St. Maarten is preparing a court case against the Dutch Government. Lawyers are currently evaluating to which court to take this case.

The Hague has contended that these funds are no longer available, because St. Maarten wasn’t able to substantiate its claims. But Philipsburg contradicts this. “We were able to substantiate a number of bills. The problem is that the invoices weren’t split up and put together. You cannot put all invoices on one heap. They should be seen separately. We remain of the opinion that the invoices that we were able to substantiate should still be paid,” said Tuitt.

Tuitt explained to the Second Chamber that St. Maarten’s 2013 budget had been decreased by NAf. 25 million to NAf. 457 million and that it had been approved by the Council for Financial Supervision CFT. “They were happy to hear that.”

The Minister said he hoped that the adapted budget would be approved by St. Maarten’s Parliament by the end of March. An approved budget by both the CFT and St. Maarten’s Parliament is important in order to comply with the Financial Supervision Law and to avoid an instruction of the Kingdom Council of Ministers.

COLA

While in The Netherlands, Tuitt and his delegation had a meeting with the CAOP, a Dutch centre that is specialised in labour affairs in the public sector. It was agreed that CAOP will assist St. Maarten to finalise a study on the Cost of Living Adjustment (COLA) for civil servants.

CAOP specialists are expected to come to St. Maarten in April to meet with all stakeholders, including the labour unions. “They will draft a report, based on which we can negotiate with the unions,” said Tuitt, who stressed that CAOP is an independent party specialised in labour affairs.

Tuitt and his delegation, consisting of Policy Advisor Xavier Blackman and Concern Controller Anton Peels, travel back to St. Maarten today, Friday. In The Netherlands, the delegation was supported by the Cabinet of the St. Maarten Minister Plenipotentiary.

‘Positive’ advice from CFT on 2013 St. Maarten budget

THURSDAY, 21 FEBRUARY 2013

PHILIPSBURG–The draft 2013 budget received a “positive advice” from the Committee for Financial Supervision CFT, Finance Minister Roland Tuitt announced on Wednesday.

The response from CFT stating its satisfaction that the budget was balanced was received by the minister while he was attending the weekly Council of Ministers Press Conference.

A follow-up report on the draft budget will be prepared by government. That, together with the draft, will be sent to the Advisory Council. The budget will then be sent on to Parliament for deliberations in the Central Committee followed by the plenary session.

The budget stands at NAf. 457 million after some NAf. 25 million had to be cut on advice of CFT.
The draft budget will be before Parliament for approval sometime in March. Tuitt had originally hoped that this budget would have been presented much earlier than that of 2012.

Row over cost of living adjustment continues on St. Maarten

POSTED: 02/20/13

Union calls for social dialogue with minister Tuitt

St. Maarten – The President of the Windward Island Teachers Union Claire Elshot yesterday reacted to statements made by Finance Minister Roland Tuitt two weeks prior on the payout of the 2011 cost of living adjustment (Cola). At that time, Tuitt, while responding to suggestions by the union to add the Cola payment to the 2013 budget, said that the union should come forward and show him where to find the additional funds to pay the Cola. The government has repeatedly said that the Cola has become unsustainable but is still to present an alternative proposal to the organized consultative body (GOA).

“I have noticed in the press that the Minister of Finance was actually challenging the union to take over his seat. I find that is a dangerous precedence. I felt that as a union, we were being singled out. This Cola is not for teachers alone it is due to all civil servants, including police and Coast Guards. Asking us how to bring in the dollars, that is not part of our task, we view our task as a social partner,” the union president said.

Elshot suggested that the Minister of Finance invite all unions to a social dialogue to discuss how salary adjustments are to take place. She said that these adjustments should be placed on the budget through either marketing initiatives or money that would come from a revamped tax collection.

Justifiably Tempo should bring in marketing dollars and the marketing of St. Maarten. Tomorrow the Minister will ask me where he should find money to pay me my salary. No, that is out of order and not ethical anymore, we have to keep things on a straight line,” she added.

The reiterated that the cost of living is very high on St. Maarten as opposed to other countries in the Kingdom.

The Finance Minister last week announced that he would be on a fact finding mission to the Netherlands to see how the Dutch government was able to handle the cost of living adjustment.

St. Maarten minister Tuitt to meet with Second Chamber

SATURDAY, 16 FEBRUARY 2013

THE HAGUE–St. Maarten’s financial situation and the budgetary process will be the main topic of a meeting between St. Maarten Minister of Finance Roland Tuitt and the Second Chamber of the Dutch Parliament on February 26.

Tuitt will be meeting with members of the Second Chamber’s Permanent Committee for Kingdom Relations behind closed doors. He will be accompanied by his Policy Advisor Xavier Blackman and Concern Controller Arno Peels.

The agenda points will be the general financial developments on St. Maarten, the country’s new financial policy, financial supervision, the 2013 budget and the debt reorganisation. Tuitt will be visiting The Netherlands from February 22 to March 1.

The Second Chamber is concerned about the budgetary process in St. Maarten and the fact that there is still no approved 2013 budget. The Council for Financial Supervision CFT has given a negative advice on the draft 2013 budget and suggested several adaptations to the budget to compensate for what the CFT called overly optimistic tax revenue calculations.

The CFT had an informative meeting with the Second Chamber behind closed doors last week, in which the council updated the Kingdom Relations Committee on the latest developments and the general financial status of countries Curaçao and St. Maarten and the Dutch public entities Bonaire, St. Eustatius and Saba.
St. Maarten’s Council of Ministers has to approve a new, revised budget shortly, which the CFT will review before mid-March. Dutch Minister of Home Affairs and Kingdom Relations Ronald Plasterk told the Second Chamber during a debate on Tuesday that he wanted to wait for the CFT’s advice. In a letter to the Dutch Parliament dated January 30, Plasterk said he hoped St. Maarten would take its responsibility seriously and as such avoid an instruction by the Kingdom Council of Ministers.

The revised budget will be discussed at the next meeting of the Kingdom Council of Ministers on March 15. St. Maarten as well as Curaçao is subject to the Financial Supervision Law, a law that was implemented when the two islands attained the status of country within the Dutch Kingdom.

St. Maarten and The Netherlands have a difference of opinion on the debt reorganisation. According to St. Maarten, it could not have a healthy start like the other islands of the former Netherlands Antilles, because not all of its debts were paid off. St. Maarten was unable to substantiate all claims associated with the 1.5 billion-euro debt reorganisation exercise at the time.

However, for the Dutch Government the debt reorganisation process is a closed chapter. The Hague has contended that St. Maarten had ample time to substantiate its claims and provide proof of its outstanding bills.

Dutch Parliament objects to retroactive debt relief for St. Maarten

FRIDAY, 08 FEBRUARY 2013

THE HAGUE–The four largest parties in the Second Chamber of the Dutch Parliament are against paying any of St. Maarten’s outstanding debts without proper documentation.

“It is St. Maarten’s choice to go to the Courts, but I find that they had sufficient time and possibilities to get their invoices in order. St. Maarten would do well to evaluate what went wrong, learn from the mistakes and get their household in order,” said liberal democratic party VVD Member of Parliament (MP) André Bosman on Thursday.
Bosman was responding to the announcement by St. Maarten’s Finance Minister Roland Tuitt on Wednesday that his government would be taking the Dutch Government to Court in an effort to make use of the Dutch debt relief retroactively.

According to the St. Maarten Government, the island only received NAf. 63 million to pay off its debts to the Antillean General Pension Fund APNA, while it was promised NAf. 183 million in debt relief. The Dutch Government and several Ministers of Home Affairs and Kingdom Relations have made clear for more than a year now that the “debt relief window” was closed. Minister Ronald Plasterk confirmed this during his visit to St. Maarten last month.

Socialist Party (SP) MP Ronald van Raak said it was “fine” that St. Maarten would take the matter to Court, but he did not give them much chance. “We agreed to reorganise the debts of the islands in 2010 and not in 2013,” he said.

To even consider paying off St. Maarten’s debt retroactively, The Netherlands would have to know the exact amounts and for that you need invoices and approved accountant declarations, stated Van Raak and Bosman.

The MPs said they understood that these documents were missing in the majority of cases. According to Bosman, financial accounts and loans of the St. Maarten Government have not been sufficiently transparent and the financial administration is incomplete. “Where are the accountant’s declarations, where are the invoices?”

“You can only reorganise debts when you know exactly what they are. It concerns debts of which we don’t know for sure that they even exist. On October 10, 2010, we only paid off the debts of the Netherlands Antilles that were known to us and that were substantiated. St. Maarten had enough chances to produce these documents. They did not. End of story,” said Van Raak.
Labour Party PvdA MP Pierre Heijnen said he would seek clarity from Minister Plasterk during the debate of the Second Chamber’s Permanent Committee for Kingdom Affairs with the Minister on February 12. Heijnen said he wanted details on St. Maarten’s debt relief process and the aftermath.
Heijnen agreed that in principle St. Maarten was free to take this to Court. “Everybody is free to do so.” He made clear that the PvdA did not support restarting debt relief talks. “It’s not for nothing that the Ministers have already stated that this window is closed.”

Bosman also said that for his party the debt relief window was closed, “unless the Judge decides otherwise.”
Party for Freedom PVV MP Sietse Fritsma said his party always had been against The Netherlands paying off the debts of the islands and the same applied for allowing St. Maarten to make use of the debt relief retroactively.
“The islands, including St. Maarten, are in the first place responsible for handling their own affairs and for making sure that their finances are in order. I guess they don’t realise that the Dutch taxpayer is already having a hard time,” said Fritsma, referring to the major cost-cutting measures in The Netherlands.

Heijnen and Van Raak reminded St. Maarten that The Netherlands was always willing to assist the island with manpower and other help to build its tasks as a new country in the Kingdom.

Increase in transfer tax and diesel levy to aid St. Maarten’s 2013 budget

THURSDAY, 07 FEBRUARY 2013

PHILIPSBURG–Government has included a diesel fuel excise fee and an increased real estate transfer tax to help balance the draft 2013 budget that’s now with the Committee for Financial Supervision CFT for vetting. Some NAf. 6 million has also been cut from the Justice Ministry’s budget to aid in eliminating NAf. 25 million from the budget as recommended by CFT.

Finance Minister Roland Tuitt told the press on Wednesday that the draft budget, which stands at NAf. 449 million, was balanced and sent to CFT on Tuesday. He expects an answer soon from CFT on whether the adjustments are acceptable.
Once the CFT gives its nod of approval, the draft budget will begin its passage to Parliament for debate and ratification.
The budget was balanced thanks to the planned increase in the transfer tax from four per cent to five per cent and the introduction of a tax on diesel fuel. Such a levy already exists on gasoline. These are in addition to the revenue-generating measures that increase Turnover Tax (ToT) on tobacco and alcohol products.

Also, government was able to remove some “old debts” from the budget through negotiation with the Social and Health Insurance SZV. Some NAf. 11 million in old SZV debts has been cut from the budget.

Tuitt said the SZV cut would not affect the insurance, because government will still be covering any deficit the fund may have at present.

Government had been working to balance the 2014 budget since last year and it is now hoped that the budget will be approved by Parliament before the first quarter of this year.

St. Maarten government looking into how other countries deal with cost-of-living adjustment

THURSDAY, 07 FEBRUARY 2013

PHILIPSBURG–Government will be conducting research into how other countries are handling the cost-of-living adjustment (COLA) payments to their workers in a structural manner as efforts are made to come up with a structural solution for this annual payment to teachers and civil servants.

Based on this research, government is hoping to come up with a proposal for the advisory body to government on matters related to civil servants GOA as well as for the unions, on the structural payment of COLA.
Finance Minister Roland Tuitt told reporters at Wednesday’s Council of Ministers press briefing that this is being done so that St. Maarten can “fall in line with the rest of the world” as it pertains to COLA payment.

Asked about suggestions from the Windward Islands Teachers Union (WITU) that the 2011 COLA payment should be included in the 2013 budget, Tuitt said government was currently trying to balance this budget and if the union could suggest where government could find NAf. 20 million to pay the COLA structurally, he would “happily” do this. He said the last COLA payment had cost government NAf. 20 million.

WITU President Claire Elshot said on Tuesday that this issue would be high on the union’s agenda this year as many teachers had already started to ask about their 2011 and 2012 COLA payments. Talks on the sustainability of the payment had started with General Affairs Minister Prime Minister Sarah Wescot-Williams and Elshot said the union was awaiting information on the continuation of the payment in a sustainable way.

She said issues such as these need to be clear, as teachers will lose their patience after a while and the union does not want a repeat of the situation that occurred in the past, obviously referring to the protests and meetings teachers had held, pressing for the payment of this adjustment.

St. Maarten government heads to court to get promised Dutch debt relief

THURSDAY, 07 FEBRUARY 2013

PHILIPSBURG–The fight to get the remainder of the promised debt relief from the Dutch government will soon enter another phase when the St. Maarten government files court proceedings against the Dutch government.

Some NAf. 183 million in debt relief was promised; only about NAf. 63 million was paid out by the Dutch government to cover St. Maarten’s debts of General Pension Fund APNA.

The Council of Ministers made the decision to head to court in its meeting on Tuesday, Finance Minister Roland Tuitt told the press at Wednesday’s Council of Ministers Press Briefing.

Tuitt said, “This item is going to court. Let the court decide what is right and what is wrong in this whole process. … We will choose some lawyers and they will have to deal with this matter going forward.”

It is not clear yet whether the case will be filed in the Joint Court of the Dutch Caribbean or in The Hague. Tuitt said the most advantageous route will be taken by government upon advice of the lawyers.

This move comes after repeated attempts by the present and past governments to access the money that was promised and outlined in a kingdom law to help the country get a good start as of October 10, 2010.

Those attempts have been met by several road blocks by the Dutch government, in particular statements that “the door to debt relief is firmly closed” from present and past Dutch Ministers for Interior Affairs and Kingdom Relations.

The debt relief was “an integral part of the political developments leading up to 10-10-10,” Tuitt said, adding that, not because one minister in the past government “forget to give in certain documentations” related to the debt relief, there could be “a disqualification” to access the monies outlined in the kingdom law on temporary financial supervision for St. Maarten and Curaçao.

The debt relief was aimed at giving St. Maarten “a new start” and based on that new start the other items in that kingdom law have a basis, such as the Committee for Financial Supervision CFT and its monitoring of the country’s budget.

St. Maarten teachers’ union says Cost of Living Adjustment should be included in 2013 budget

WEDNESDAY, 06 FEBRUARY 2013

~ Issue a priority for union ~

PHILIPSBURG–The Windward Islands Teachers Union (WITU) says government should include the Cost of Living Adjustment (COLA) payment for teachers and civil servants in the 2013 budget and work out the details later.
President of WITU Claire Elshot told reporters at a press conference on Tuesday that this issue will be high on the union’s agenda this year as many teachers have already started to ask about their 2011 and 2012 COLA payment.

Talks on the sustainability of the payment had started with General Affairs Minister Prime Minister Sarah Wescot-Williams and Elshot said the union is awaiting information on the continuation of the payment in a sustainable way.
She said issues such as this need to be clear as teachers would lose their patience after a while and the union does not want a repeat of the situation that had occurred in the past obviously referring to the protests and meetings that teachers had held in the past pressing for the payment of this allowance.

The union President said plans had to be drafted on the sustainability of COLA and this matter was still outstanding. She said the various unions representing civil servants and teachers are awaiting the draft proposal so that they can give their input on this matter.

“Now we are in 2013 and our members are looking for payment of the 2011 and 2012 COLA,” she said.

E-Government kicks in on St. Maarten

POSTED: 02/5/13

St. Maarten – Finance Minister Roland Tuitt and Prime Minister Sarah Wescot-Williams announced the first digital service to the public on its online service portal eLogin. It became active on Friday as part of digitalizing government services (e-Government) as mentioned in the Governing program

On the site: http://onlineservices.sintmaartengov.org users can register for an E-login.

The E-login is a username and password combination that gives users access to low threshold services of Government. The first service made available by the Tax department is downloading Tax forms.

The site contains explanations about how to select and download tax forms for businesses to be able to file all monthly taxes going back to January.

Within days the system will be extended with a function to offer online tax filing, the site will explain how to request and qualify for this function. The tax payer will not have to go to the tax department any more to pick up forms.

In the coming weeks and months new functions, like online payments, rrequesting a tax ID (Crib number), protesting an assessment, filing income taxes, wage tax year end summaries and profit taxes will be announced.

St. Maarten has no excuse for finances, says Dutch minister Plasterk

TUESDAY, 05 FEBRUARY 2013

THE HAGUE–St. Maarten must comply with the Financial Supervision Law and get its budget balanced to avert getting an instruction from the Kingdom Council of Ministers.

That is the word from Dutch Minister of Home Affairs and Kingdom Relations Ronald Plasterk. In his January 30, 2013, letter that was sent to the Second Chamber of the Dutch Parliament, which was released on Monday, he gave an update on his first formal visit to all six Dutch Caribbean islands mid-January.

Plasterk stated that he had had a very serious talk with the Government of St. Maarten about the country’s finances when visiting the island two weeks ago. In his letter to the Second Chamber, he explained that, in his opinion, the Financial Supervision Law serves to ensure a proper functioning of government for the St. Maarten people. “Adhering to the law is not a goal on its own,” he stated.

The Minister pointed out that the Committee for Financial Supervision CFT which supervises the execution of said law had rendered a negative advice on the 2013 draft budget. The St. Maarten Government needs to reduce its expenses by another NAf. 25 million.

“It is now up to St. Maarten to submit a new budget in two weeks,” Plasterk stated. He hoped that St. Maarten would assume this responsibility and by doing so “prevent an instruction from the Kingdom Council of Ministers.”
St. Maarten contended during the meeting with Plasterk that one of the reasons for its financial predicament was the fact that the island hadn’t received the full debt relief as not all claims had been paid out due to lack of proof. According to St. Maarten, it had a “false start” when it attained the status of country within the Dutch Kingdom.

Plasterk said St. Maarten had created the impression that its future depended on restarting talks about debt relief. “I have reconfirmed that the Dutch Government is not planning to reopen that window,” he stated.

The relation between St. Maarten and its sister islands St. Eustatius and Saba, part of The Netherlands since October 10, 2010, was another topic of discussion in the meeting that the Minister had with the St. Maarten Government.
“Several items like the [Windward Island Airways International, ed.] Winair tariffs, double taxation, the sea cable and medical transport via helicopter have not been solved satisfactorily from the perspective of The Netherlands,” stated Plasterk. A letter containing the position of The Netherlands as well as proposed solutions will be sent to Philipsburg shortly, he added.

This time there was positive news about Curaçao. Plasterk welcomed the attitude of the business cabinet of Prime Minister Daniel Hodge which he said was “taking responsibility in the interest of the country and its residents.” “I have faith that the Hodge cabinet will do everything it can in the interest of the people of Curaçao.”
The Hodge cabinet seems to be doing well in tackling the three main issues: integrity of government, restoring the financial situation and strengthening cooperation in the Kingdom. Plasterk noted that members of the cabinet had been screened successfully.

The new government has indicated that it considers the CFT to be a support in the exercise to restore finances. There is still a long way to go, but at least the process of taking the necessary measures has started, noted the Minister, who also mentioned the announced measures in the areas of health care, the pensionable age and the reorganisation of the civil apparatus.

Plasterk also addressed the impasse at the Central Bank of Curaçao and St. Maarten (CBCS) in his letter. The Kingdom Council of Ministers wants a normalisation of the relations between the governments, the Board of Directors and the Supervisory Board. The Hague believes an audit is necessary.

According to Plasterk, who discussed the issue with Prime Ministers Hodge of Curaçao and Sarah Wescot-Williams of St. Maarten as well as CBCS President Emsley Tromp, both governments are aware of the need to normalise relations and to restore trust in the Bank. “I expect the audit to be carried out shortly,” he stated.

The Minister had much praise for Aruba which, he said, had successfully shown that it is possible to stimulate the economy, employment and sustainable development through “much creativity, passion and input.”
He commended the ambitions of the Eman cabinet to seek closer relations in and outside the Kingdom and to develop a hub function between Europe and Latin America. Furthermore, the Aruba Government has a tourism development strategy: it invests in Oranjestad and sustainable development.

Regering St. Maarten bestudeert wijziging autobelasting

VRIJDAG, 01 FEBRUARI 2013

PHILIPSBURG — De regering bestudeert de mogelijkheden om het motorrijtuigenbelastingsysteem te veranderen. Minister van Financiën Roland Tuitt noemt het systeem waarbij eigenaren van kleine auto’s hetzelfde betalen als grote autobezitters ‘niet logisch’.

De autobelasting bedraagt momenteel 275 gulden per jaar. Tuitt verklaarde woensdag dat er andere systemen gebruikt kunnen worden, bijvoorbeeld één op basis van cc, waarbij voor auto’s met meer power meer belasting betaald wordt dan voor auto’s met weinig cc. Andere mogelijkheden zijn een systeem op basis van het gewicht of de waarde van het voertuig. Elk systeem heeft zijn voor- en nadelen. De voorkeur lijkt uit te gaan naar een systeem op basis van cc.

Onlangs bracht de Adviesraad advies uit over de motorrijtuigenbelasting. Er werd onder meer ingegaan op meer betalingsmogelijkheden. Volgens Tuitt was het advies uitgebreid. De regering en haar juridische adviseurs kijken momenteel naar wat ervan wordt overgenomen in de wet, zodat het naar de Staten kan worden gestuurd.

“We hopen dat deze wet binnen een week of twee richting Staten kan gaan, zodat zij er zo snel mogelijk over kunnen beslissen en we de eerste fase van het proces kunnen afronden.”

St. Maarten minister Tuitt: Budget cuts should be finalised by end of week

THURSDAY, 31 JANUARY 2013

~ Feels CFT should make criteria clear ~

PHILIPSBURG–Government is hoping to finalise the NAf. 25 million budget cuts across the various ministries by the end of this week, and is hoping to have the budget sent to Parliament in two weeks, Finance Minister Roland Tuitt said on Wednesday.

He told reporters during the Council of Ministers press briefing that the Committee for Financial Supervision CFT should also make its criteria for evaluating the budget clear so that St. Maarten can know what criteria is being used and adhere to this.

With respect to the budget cuts, Tuitt said the Finance Ministry has already made some cuts and meetings will be held with the other ministries to see how the cuts can be facilitated in keeping with the CFT’s request that 25 million be cut from the budget.

“Once the 25 million is complied with, we will send an adapted budget to the CFT and they promised that if everything is in order they will give a positive advice on it.”

Tuitt said government is working on the advice received from the Advisory Council on the budget and once CFT’s positive advice is given the budget can be on its way to Parliament for handling.

Tuitt made clear that if the ministry has some “arguments” with the CFT, it does not mean that there is a “bad relationship” between the two. “It’s just that I am making sure that if I am in this position or if someone else is in this position that the criteria is understood.

“My contention with the CFT is that it should be made clear what are the measures that you are using to control or to audit the budget of St. Maarten; what are the criteria being used to audit the budget, that’s all we want to know then we will know what to present to satisfy those criteria.”

Tuitt stressed that if the CFT does not make its criteria known then the minister would not know what is expected of him. Tuitt said when he was part of the CFT certain recommendations, he along with the other accountant from Curaçao on the CFT board at the time, had made were either not taken into consideration or not projected. The minister said this is why he continues to make a case for the CFT to make its criteria clear.

He said the Advisory Council, for example, had given an elucidation of its criteria used to evaluate its advice as it relates to the road tax. “If you will evaluate the laws because the budget is a law then you have to tell me what criteria you are using,” he stressed.

He said prior to sending the budget to the CFT, he had asked them what was required given the new revenue streams government had planned and “they told me ‘x’, I did ‘x’ plus ‘y’ and they are still not happy so then I don’t know what criteria they are working with.”

St. Maarten Tax Administration collected NAf. 20 million more in 2012

MONDAY, 28 JANUARY 2013

~ Staff receive certificates, donate to foundations ~

PHILIPSBURG–The Tax Administration collected NAf. 20 million more in 2012 compared to the previous year, Finance Minister Roland Tuitt said during the organization’s New Year reception on Friday afternoon.

Applauding the staff for their efforts, Tuitt said as Finance Minister he is determined to enhance St. Maarten’s financial situation by improving the functioning of the Tax Administration and try to render it more effective and efficient in the execution of its tasks.

The reception was organized by the Tax Social Foundation, which donated proceeds from a walkathon it held last year to Crystal’s Children’s Home and the I Can Foundation. Tax Administration employees were also presented with certificates for successfully completing an upgrading course.

Tax Administration Head Geert Bergsma said to help the Tax Administration conduct its work in a more professional manner, training was held in a basic course on taxes. The refreshment course on fiscal techniques and audit for “aanslagregelaars” and auditors came to an end on Friday when the certificates were presented.

Workers learnt about taxes and fiscal issues, but Bergsma said it’s not just learning that’s important. “It’s learning what to do with what you learn and learning while you learn things that matter. Through learning and keeping up to date we can do our jobs better and we all benefit from that.”

Bergsma said 2012 was the second full year that we the Tax Administration of St. Maarten performed its tasks as one entity within the still young country St. Maarten.

The Tax Administration consists of the Inspectorate Department, Receivers Department and the Department for Audit and Criminal Investigation. “We are working together out of two different locations. It is our dream that in the future we can work in one building,” he said. The Tax Administration managed to further strengthen its workforce, and welcomed different colleagues from the Dutch Tax Authority.

He said there is still a lot of work to do to further strengthen the Tax Administration. “The plan of approach for further strengthening the tax administration is ready and is up for approval to our minister. A small project team will be established to coordinate the effort. To improve compliancy and customer service is the title of our year plan. The coming year 2013, the tax administration will have two main focal points: first of all compliancy. We definitely need to broaden the base of tax payers and make sure that everyone pays their fair share. The ambition of the Tax Administration is to maintain and strengthen the willingness of taxpayers to comply with their legal obligations. Compliant behaviour manifests itself in the fact that citizens and companies register themselves as taxpayers and declare their taxes on time, that the declarations are accurate and complete and that the taxpayers pay due taxes in a timely manner,” he said.
This project will start next month. “Secondly, customer service; nobody likes to pay taxes, but we can do a lot of things to make it easier for the taxpayer. Within weeks it will be possible to do your taxes online and it will be easier to pay taxes through internet banking. Furthermore, the tax administration will be part of the soon to open public service centre in the fish market in Simpson Bay.”

Bergsma said there will be an update of the organization’s website and soon it will present a new logo. “We are making big steps in getting our act together in the field of ICT. We are revamping our ICT systems in such a way that we can work more efficiently and real time. The systems of the inspectorate will be coupled to the systems of the receiver and there will be connections to other government organizations. We are cleaning up and combining our databases,” he said.
“ICT is the key to success to build a state of the art tax administration. Apart from compliancy and customer service our colleagues from the fiscal affairs department started working on a new tax system for S. Maarten based on the principles of economics, efficiency, solidity, fairness, simplicity, predictability and international competitiveness,” he noted.

Minister Tuitt: St. Maarten will need its own CFT

SATURDAY, 26 JANUARY 2013

PHILIPSBURG–With the five-year evaluation of the functioning of the Committee for Financial Supervision CFT slated to take place next year, Finance Minister Roland Tuitt is already setting the stage and the mindset that the country will need its own CFT-like operation.

Tuitt told the Central Committee of Parliament on Friday that if the CFT is deemed not necessary after the evaluation, because the country is up to par with its financial management, in order to keep on the right path financial supervision will have to continue.

That supervision will come not in the form of a body like the current CFT, but via review by the government’s internal financial management, Government Accountants Bureau SOAB, and ultimately the General Audit Chamber, he explained.
He informed Members of Parliament (MPs) that the draft 2013 budget is in the final stages of preparation and government is working to cut the budget by some NAf. 25 million as recommended by CFT. The proposal for the cutback was also outlined to MPs by CFT on Thursday. The minister hopes the budget will be adjusted to meet the approval of CFT and the Advisory Council in the coming two weeks so it can be tabled in Parliament in February.

“I don’t agree with CFT to cut the budget, but we will do it,” Tuitt said, explaining that government is seeking to spend money that should have been spent all along.

The proposal to increase the Turnover Tax (ToT) on alcohol and tobacco products to raise revenues for the budget will “not affect the livelihood of the common man. We thought it through,” Tuitt said, in answering a question for Democratic Party (DP) MP Roy Marlin. It will basically be “a tax on unhealthy lifestyles.”

The increases will not affect the country’s duty-free status, the minister said, allaying concerns from National Alliance (NA) MP Louie Laveist. He pointed out that cigarettes cost about US $2 here while in the United States a pack costs about US $10 and in the euro zone, eight euros. That pricing structure allows for more taxes to be levied on tobacco items, but not on alcohol because of competition from the French side.
The 2011 annual accounts should be finalised next month and work will start on the 2012 accounts so they are ready within the period stipulated by law. “We should make it within the period if we get no unforeseen circumstances,” Tuitt said. The 2010 annual accounts should already be with Parliament as it has been audited by SOAB and the General Audit Chamber.

The minister is also working on creating “a real treasury” for the country that will help out with budget preparation, government investment policy, cash flow projection and overall planning review for the annual and multiannual budgets. The present treasury department is “not doing the work of a treasury.”

Dealing with United People’s (UP) party MP Jules James’ question about government seeking a bond from the Central Bank of Curaçao and St. Maarten, the minister explained that once the budget is approved, a request for approval to acquire a loan via a bond will be submitted to CFT. The bond funds will be used to shore up the country’s reserves and carry out capital projects such as purchasing Emilio Wilson Estate for preservation.

Government has several court cases pending with creditors. If judgements are against government, the bills will be submitted to the Dutch Government to clear via the promised debt relief. Tuitt said government would use a letter from former Dutch Minister of Interior Affairs and Kingdom Relations Piet Hein Donner to access the money.
Government will also seek to speed up the process of dividing assets and liabilities of the former Netherlands Antilles to put a halt to Curaçao “plundering” assets belonging to St. Maarten, the minister said in response to a query from MP Gracita Arrindell (UP) about the progress of the division.

Tuitt was in Parliament for the continuation of a session that had started late October 2012. He had requested the meeting to give Members of Parliament (MPs) a status report on the country’s financial situation. The meeting was adjourned until further notice after the minister answered the questions from the first round. This was to accommodate another meeting on his schedule.

The meeting almost came to a halt before the minister had completed answering the questions, as only the NA and UP fractions were present in the General Assembly Hall; at least three fractions need to be represented for Central Committee meetings to proceed. MP Gracita Arrindell (UP) raised the issue and requested President of Parliament Rodolphe Samuel to do a roll call. However, before this could be carried out MP Louie Laveist (NA) asked for an adjournment. When the meeting resumed, independent MP Patrick Illidge was present, so the meeting continued.

CFT advises St. Maarten government to cut some NAf. 25 million from budget

FRIDAY, 25 JANUARY 2013

PHILIPSBURG–Government will have to find a way to cut some NAf. 25 million from the draft 2013 budget and find means to replenish the country’s reserves with NAf. 16 million, as money was used to cover some expenses. The Committee for Financial Supervision CFT has advised government that this is necessary to balance the budget. Government has asked for some two weeks to work this out.

The draft budget stands at some NAf. 476 million, compared to NAf. 432.5 million for 2012. CFT bases its suggested cuts on the actual realised income for 2012, which stands at about four per cent of the budget, and has coupled that with government’s plans to increase tax compliance this year. That brings the CFT to a percentage allowance of some eight per cent in estimated growth in income this year.

“We feel that a doubling of that increase, which is eight per cent, might still be called realistic. This is still difficult to reach in our view, because economic growth is only up one per cent. But we think this would be good governance. This would be responsible behaviour,” said CFT Chairman Age Bakker.

Bakker, along with the CFT board, was in a Central Committee Meeting of Parliament with which CFT is working to get the budget presented to parliament for approval together with a positive advice from the committee. CFT representatives also met with the Council of Ministers on Thursday.

Government cannot afford to take risks with the budget, because “the liquidity position is precarious, so you cannot allow any mishaps,” Bakker said. That precarious situation was caused by government using the reserves for capital expenses. Such use of the reserves is a short term measure, or “you will not have enough money in your coffers.”
Government needing to increase the budget by some 15 per cent “poses substantial challenges” for government, especially with the complexity of the high and low tourism season income. To get to the needed level, government has “a number of tax measures to improve tax collection in the draft budget. This will be an impressive package to increase the tax base of St. Maarten.”

The tax base continues to be “too low.” There is a need for it in order to provide services the population can expect, he added. “We have to realise that the economy situation is not an easy one. … We have to be realistic.”

St. Maarten is expected to have one per cent growth this year, based on figures from the Central Bank of Curaçao and St. Maarten, which is “good” compared to regional levels. However, the CFT chairman advised government “to be more cautious” by getting expenditure in line with the lower projected income. If the year’s revenues turn out to be much more than budgeted, government can present a supplemental budget to reflect its realised income.

The budget must include all known expenses, Bakker said, to avoid “nasty surprises” later in the year. He used the example of the previous budgets not including the amounts for the Cost of Living Adjustments (COLA).

CFT has “excellent cooperation” with government and receives all requested information. Bakker said Finance Minister Roland Tuitt has done “a very good job” in gathering a picture of government’s obligations and expenditures in the budget. He said his comment about Tuitt was not a reproach to past ministers, but one that stems from the continued improvement of the country’s financial management and process since the implementation of CFT.

It would be a “great move forward” if parliament agrees on a stable current budget that will enable the country to come up with capital investment at a very low interest rate, Bakker said.

Members of Parliament voiced their concerns about the lateness of government in tabling the budget for approval and lamented the trying economic times that continue to plague St. Maarten and the rest of the world. They also had issues with companies not paying taxes.

In that same vein, Bakker urged parents to teach their children that it is “not a shame to pay taxes.”
Democratic Party (DP) MP Roy Marlin was particularly outspoken about the budget, saying that parliament and government need to work at getting the issues solved, or within half a year CFT would be back in parliament, raising the same issues about having a balanced budget.

“Something is fundamentally wrong” when government’s projection for revenue collection is off and this situation needs to be resolved. Increase in taxes would create additional revenues, but there comes a point when we can’t pull blood out of stone.”

Marlin decried that fact that there was still no dividend or investment policy for government-owned companies. Without those there is no way for MPs or the people to know how money is being used and for what purpose, Marlin said.
As for government’s plan to write off back taxes up to 2006, the MP said this is good for the businesses that are registered, but those that are not paying, such as charter boats and off shore activities, must be tackled. “Broadening the tax base is not as easy as 1, 2, 3 … I am not talking about no condo tax that will hurt the economy … go after the people who don’t pay … simple little things to balance the budget without putting burden on the people.”

Minister Tuitt van St. Maarten: Cft overdrijft een beetje met tijdelijk financieel toezicht

DONDERDAG, 24 JANUARI 2013

PHILIPSBURG — Minister van Financiën Roland Tuitt zei woensdag dat hij denkt dat het College financieel toezicht (Cft) ‘momenteel een beetje overdrijft’ met het tijdelijk financieel toezicht voor Curaçao and St. Maarten.

Hij refereerde aan het onderzoek van het Cft van de conceptbegroting van 2013 en de roep om meer bezuinigingen om er zeker van te zijn dat er geen tekort is.

Vandaag sprak de ministerraad met het Cft. Tuitt hoopte vooral gezamenlijke standpunten te vinden over het proces en de procedures voor evaluatie van de begroting. Het Cft handelt volgens hem wel ‘in overeenstemming met wat er in de wet staat’.

De conceptbegroting van 2013 is nagenoeg klaar, aldus de minister. Hij zei dat er aannames gedaan waren en een deskundige moet bekijken of deze ‘redelijk en acceptabel’ zijn. Hij legde daarbij uit dat een ‘tolerantieniveau’ – een factor in accountancy – toegepast moet worden.

Cft zet vraagtekens bij de plannen van de regering om 20 miljoen gulden meer belasting te innen om de begroting sluitend te krijgen.

St. Maarten government close to improving functioning of Tax Department

THURSDAY, 17 JANUARY 2013

PHILIPSBURG–The government is moving closer to improving the functioning of the Tax Authority.
Finance Minister Roland Tuitt said on Wednesday that cleaning up of the taxpayer’s registry and writing off of old, uncollectable tax debts is ongoing and expected to be finalized within a few weeks.

The cleaning of the registry will allow the tax department to work more efficiently, reduce the number of erroneous tax assessments, and significantly reduce the administrative burden for the taxpayers. It will also result in a more fair collection of taxes and increased revenues for government by increased compliance, Tuitt said during the launch of the governing programme yesterday.

He said an important objective of government is the enhancement of St. Maarten’s financial situation by improving the functioning of the Tax Authority. The plan for this exercise is being carried out and updated, with the assistance of the Dutch Government.

As outlined in the governing programme, the new tax system, including the change to the motor vehicle tax, will result in a simpler and fair tax system which will benefit the government, the taxpayers and the development of St. Maarten in general, said the Finance minister.

He said preparations for the introduction of a new tax system are ongoing, while the change to the motor vehicle tax is being finalized. “All these objectives cannot be achieved without having the proper technical infrastructure in place.”
He also announced that after months of preparation and consultations between the relevant units within government, the upgrading, linking, and streamlining of the Information Communication Technology ICT systems within the Ministry of Finance will take effect in February. Having certain databases linked will make receiving information from and doing business with government much easier and less time-consuming.

The minister said as a member of the OECD’s Global Forum, St. Maarten has successfully completed its peer review in September 2012, which was ratified the following month during the yearly Global Forum meeting in South Africa.
“Now that St. Maarten has met the OECD-standards it will be more attractive for foreign investors. This position will be further enhanced by the favourable Moody’s rating which was issued in November of 2012.

“As a member of the Global Forum, St. Maarten will continue to negotiate and conclude tax treaties with other nations, including French St. Martin, during 2013 and 2014.”

In the area of budgetary matters, he said the improvements are ongoing in close consultation with the Committee for Financial Supervision (CFT). Plans are also being worked on enhance the personnel capacity within the Ministry so that it can meet all deadlines and live up to all the other requirements as set out in the financial supervision legislation.
“On my initiative, more dialogue and consultations will be held with the Dutch Government, so that potential issues can be identified and addressed before they become a real problem. The initial discussions will take place in the first quarter of 2013, after which the process can start.”

In the meantime, a staff member has been hired and is currently in training at the Central Bank. Once the training has been completed, the individual will be charged with enhancing the treasury department as outlined in the governing accord.

The internal control department will be upgraded in the first quarter of 2013 with the addition of a staff member who will be charged with implementing the upgrade.

He said the new Government of Curaçao has been cooperative in addressing the matters related to the Central Bank, and gradual progress is being made. As soon as the pending matters have been resolved, the Government will move forward with the improvement of the local building and looking into the matter of St. Maarten’s currency.

Tuitt said the tasks and responsibilities of the Finance Ministry are directly related to most, if not all of those of the other Ministries in some shape or form. As such, it aims to support and facilitate the other Ministries as they carry out their tasks, while at the same time managing and safeguarding the overall financial-economic well-being of the government, the general public, and St Maarten in general.

Since taking office, Tuitt said he and his colleagues, supported by staff and the civil service, have been working diligently on achieving the goals as agreed upon in the governing accord of May 21, 2012, and further worked out in the governing programme presented on Wednesday.

Writing off back taxes may start by month-end on St. Maarten

WEDNESDAY, 09 JANUARY 2013

PHILIPSBURG–Government will begin writing off old tax debts for residents that have been pending since prior to 2006 by month end. All outstanding taxes after that year will have to be paid or the “normal process” of seeking a payment scheme or a write-off will have to be followed.

Finance Minister Roland Tuitt said this week that he had received “all indications” that the writing off of the taxes “will happen this month.”

The taxes “will be written off. No questions, no requirements. They will be written off and forgotten; thrown in the deep sea,” he told the press during a press conference in the Government Administration Building.

Government is trying to focus more on collecting recent back taxes as well as increasing compliance in general. Tuitt has called on businesses in particular, on several occasions, to pay their fair share of taxes. He even urged them to give government “a Christmas gift” by registering in the tax data base.

Government is hoping to collect some NAf. 20 million in revenue from increased tax compliance this year. This is one of the revenue-generating measures included in the draft 2013 budget. However, the Committee for Financial Supervision CFT is not yet convinced that that amount is collectable and has suggested the government aim to collect NAf. 10 million instead.

CFT issues negative advice on St. Maarten budget, government submits info late

TUESDAY, 08 JANUARY 2013

PHILIPSBURG–The Committee for Financial Supervision CFT has issued “a negative advice” on the draft 2013 budget “due to some technical issues,” including the fact that government was late in submitting necessary substantiating information on revenue-generating measures. CFT has indicated its concern about government being able to raise revenue via increased tax compliance. The advice also has been sent to the Kingdom Council of Ministers in The Hague for its perusal. Finance Minister Roland Tuitt said at a press conference Monday that the National Alliance (NA)-led government had sent additional information on the draft budget “late,” so by the time CFT had received the information the negative advice already had been issued. “What is happening right now is the CFT is taking the additional information that we sent to them into consideration and they will adapt their advice hopefully within a week or so,” Tuitt said. “That information they are taking into consideration now and I am hopeful that they will change their opinion.”

CFT has submitted some 16 questions on the draft to government, covering topics such as the plan to increase tax payment compliance by businesses and individuals as a means of increasing government’s revenues this year. Government will submit its answers and reaction to the advice by Friday. Dealing with tax compliance, Tuitt said that if “a quick calculation” were made, government’s aim of increasing compliance by 10 per cent could be seen. A 10 per cent increased compliance on a budget of some NAf. 476 million would amount to some NAf. 48 million. However, government has taken an ultra-conservative route by budgeting only just under half of that amount: NAf. 20 million. “We are saying as a government that we are going to increase compliance by less than five per cent,” the minister said.

At least three reports on increasing compliance, including one from the Receiver’s Office, have been sent to CFT by government. CFT has advised that the NAf. 20 million be reduced to NAf. 10 million, he said. Government “didn’t do much” to drum up compliance last year, but tax payment was up by some NAf. 6 million. “… Then we are only talking 14 million and if the CFT is saying 10 million is realistic then we are only talking about four million extra that we are fighting about,” the minister pointed out. “The CFT should be able to accept a risk of four million guilders.” CFT is “a little hesitant, because once you are a rude child, you can’t always be a rude child, so I am telling the CFT that this is a new government. This is a government with a different vision than the past government and we should be treated as such and not look at the past,” Tuitt said.

The minister said CFT “got burned” in 2012 by approving the NAf. 20 million budgeted by the then United People’s (UP) party-led coalition for collection of back taxes from non-resident condo owners. That full amount was never realised. The taxing of non-resident condo owners and increasing compliance of taxpayers are “two vastly different things,” he explained.

Cost of Living Adjustment payment by year’s end on St. Maarten

FRIDAY, 21 DECEMBER 2012

PHILIPSBURG–St. Maarten General Pension Fund APS says it is striving to make Cost of Living Adjustment (COLA) payments to government pensioners and early government service retirees before the end of this year.

During Wednesday’s Council of Ministers’ Press Briefing, Finance Minister Roland Tuitt had also announced that efforts are being made to make the COLA payment to pensioners before the end of this week.

APS said in a press release on Thursday that it has been engaged in carrying out the decision to pay out pensions and early retirement benefits to complete the cost of living allowance to pensioners, similar to how civil servants received COLA payments some months ago.

Indexation of pensions is regulated on the basis of Article 30 of the National Pension Ordinance for civil servants (PLvO) which stipulates that indexation of pensions must follow the indexation of salaries to civil servants. The basis for this exercise would be the price index for household consumption for the year 2011, which is set at 3.2 per cent.

The process of indexation is one during which a number of steps must be followed, including attaining prior approval of the COLA payment from the Minister of Finance and other non-government employers, whose retired personnel are now collecting pension benefits. This is particularly the case for those participants who entered the pension fund before January 1, 1998, since it is the last registered employer who is responsible for paying the COLA.

APS said that indexation for 2011 will be applicable only to pensioners who retired from service with an employer who had agreed, in writing, to carry the burden of the increased cost of the retirement benefits. In other words, indexation will only be paid out to pensioners and those on early retirement whose employers have indicated they are in agreement with the arrangement. As it now stands, the only employer to do such has been the government of St. Maarten.

APS said it is making payments retroactively to persons who were entitled to collect pension and or early retirement benefits as of December 31, 2011, or earlier and whose last registered employer was the government.

The payments will take place this month, as a lump sum, with all statutory deductions being made. APS thus seeks to minimize the tax effects for pensioners receiving this retroactive payment. Pensioners can thus rest assured that the total income and withholdings correspond to the current year 2012.

Persons with specific questions regarding their COLA payments have been asked to visit the APS offices, Mondays through Fridays from 8:30am to 3:30pm.

Taxand report cites poor documentation by St. Maarten government

THURSDAY, 20 DECEMBER 2012

PHILIPSBURG–The internal procedure applied by government for projects and programmes it carries out “will have to be documented more.”

This is one of the “general remarks” Finance Minister Roland Tuitt made about the “draft report” compiled by Government’s Accountants Bureau SOAB on the procedures used by former finance minister Hiro Shigemoto in handling the Taxand-led tax reform project.

Tuitt told the press on Wednesday that the report had not been handled yet by the Council of Ministers, but would be dealt with “early next year,” as the Council would not be meeting again for this year.

A “peculiar item” in the report is that Governor Eugene Holiday “did not give his cooperation” to describe one of the procedures that leads to the issuance of a national decree, Tuitt said.

He also said the report showed that the procedures that needed to be followed before government made payments “were not followed” in the Taxand case.

CFT concerned about tax compliance efforts on St. Maarten

THURSDAY, 20 DECEMBER 2012

PHILIPSBURG–Exactly how government plans to raise some NAf. 20 million via increased tax compliance in 2013 is one of three “areas of concern” the Committee for Financial Supervision CFT has cited in its “preliminary advice” to government.

Finance Minister Roland Tuitt said on Wednesday that government was working to submit information on the increased compliance project to CFT by the end of the week to clear up the matter so the committee could approve budget.
A report on tax compliance efforts has been prepared by the Government Tax Foundation BAB and submitted to government. Tuitt plans to put that report together with reports from the Receiver’s Office and the Inspectorate of Taxes to send to the CFT.

The reports will help to point out to CFT that government’s plan to collect the NAf. 20 million is “realistic.”
Concerns also have been raised by CFT about how government intends to raise another NAf. 20 million from a turnover tax (ToT) increase on the end sale of alcohol and tobacco products. Tuitt was to collect a report from the wholesalers on Wednesday that would help to determine how the increase will be implemented and documented.

Similarly, CFT had concerns about how government plans to raise some NAf. 7.5 million from increases in casino fees. Government also is working on further explanations in this matter.

Asked whether government had a “Plan B” in case CFT did not agree with the explanations given on the three revenue-increasing measures, Tuitt said most times there was a Plan B, but there was none this time. The three areas were “designated to get revenue,” he said, adding, that government did not want to overtax the population.

The CFT has written to the Kingdom Council of Ministers in the interim about the process with the draft budget and its concerns.

In keeping with the spirit of giving during the holiday season, Tuitt called on all unregistered businesses “to give government a Christmas present” by becoming registered and starting to pay taxes.

Moody’s geeft positieve beoordeling aan St. Maarten

VRIJDAG, 14 DECEMBER 2012

PHILIPSBURG — De kredietbeoordelaar Moody’s heeft de resultaten van het onderzoek naar de situatie op St. Maarten bekendgemaakt. Overheidsobligaties in lokale en buitenlandse valuta zijn beoordeeld als BAA1. Het landenlimiet voor St. Maarten is door Moody’s in buitenlandse valuta beoordeeld als A2 en in lokale valuta als A1.

De limiet voor bankdeposito’s heeft een beoordeling gekregen van BAA1 voor buitenlandse valuta en A! voor lokale valuta. Minister van Financiën Roland Tuitt heeft woensdag aan de pers bekendgemaakt dat de rating ‘gedragen wordt door de naar vergelijking hoge economische ontwikkeling en matige schuldenlast van St. Maarten’. Moody’s verwacht dat Nederland de ondersteuning en het fiscaal toezicht handhaaft.

Het per capita Bruto Nationaal Product (BNP) van 22.000 dollar in 2011 overschrijdt het verdubbelde gemiddelde van de BAA-categorie, volgens Moody’s. Het hoge BNP maakt heropbouw na tropische stormen en andere rampen mogelijk.

St. Maarten draft 2013 budget is being handled by ministers

THURSDAY, 13 DECEMBER 2012

PHILIPSBURG–The Council of Ministers will have the draft 2013 budget before it today, Thursday, for approval. The budget is tagged at NAf. 476 million with a capital expenditure of some NAf. 35 million.

Finance Minister Roland Tuitt told the press on Wednesday that while government wants to get the budget approved by Parliament before year-end, it appears that this may not be possible due to the lengthy process still being followed. He anticipates that Parliament can begin handling the budget in the first week of January.

The country did not borrow any money in 2012; instead money from the General Fund was used. In order to replenish that fund and cover the capital expenditure for 2013, government will seek a NAf. 100 million loan in the coming year.
The Committee for Financial Supervision CFT is busy perusing the draft budget as is the Advisory Council. Tuitt will go over details of the budget and provide the CFT with clarification where needed in the coming days.

Tuitt expects some enquiries from CFT about the some NAf. 20 million included in the draft budget related to increased tax compliance. Government intends get all unregistered businesses in the system to help with this collection. The Tax Office will also visit businesses to observe their daily revenue collection and present them with an assessment. A similar route was taken in Curaçao.

The increased tax on alcohol and tobacco will raise some NAf. 20 million. This way forward with this increase was discussed this week between the minister and the country’s four largest wholesalers. This increase is only supposed to be levelled at the final sale end and not accumulated throughout the transaction from wholesaler to retailer.
The increase in casino table and slot machine fees is another revenue-increasing measure. Tuitt meets with the casino association today, Thursday, to further iron out how the fees will be levied without harming businesses.

CFT: Risico’s in begroting St. Maarten

12 DECEMBER 2012

PHILIPSBURG – Het CFT signaleert een aantal risico’s in de begroting van St. Maarten inzake de begrote belastinginkomsten per 31 december 2012.

AD 12.12.12

Rijksministerraad dringt aan op audit bij Centrale Bank van Curaçao en Sint Maarten

ZATERDAG, 08 DECEMBER 2012

DEN HAAG — De Rijksministerraad heeft er gisteren bij de gevolmachtigde ministers Sheldry Osepa van Curaçao en Mathias Voges van St. Maarten op aangedrongen om de audit bij de Centrale Bank van Curaçao en Sint Maarten (CBCS) op korte termijn plaats te laten vinden.

Alle betrokken partijen zouden inmiddels overeenstemming hebben bereikt over de ‘Terms of Reference’ van het onderzoek, die zijn opgesteld door De Nederlandsche Bank (DNB). Dat maakte minister Ronald Plasterk van Binnenlandse Zaken en Koninkrijksrelaties na afloop van de Rijksministerraad bekend.

De Raad van Commissarissen van de CBCS besloot in april dat er een audit moest komen voor de bank, maar door onenigheid over het soort onderzoek heeft dit nog steeds niet plaatsgevonden. De Curaçaose commissarissen geven de voorkeur aan een integriteitsonderzoek, vooral naar het handelen van oud-president Emsley Tromp, terwijl de commissarissen die St. Maarten vertegenwoordigen spreken van een operational audit. Uiteindelijk besloten de ministers van Financiën José Jardim van Curaçao en Roland Tuitt van St. Maarten om de DNB als onafhankelijke derde partij in te schakelen voor advies over de Terms of Reference. De Curaçaose regering ging al akkoord met het advies, maar het was onduidelijk of ook St. Maarten instemde en wat de Terms of Reference precies voorschrijven. Dat werd ook gisteren niet helemaal duidelijk.

Minister Osepa was niet bereikbaar voor commentaar.

St. Maarten minister Tuitt: Budget balanced, submission to CFT soon

THURSDAY, 06 DECEMBER 2012

PHILIPSBURG–”We got it balanced,” Finance Minister Roland Tuitt said about the draft 2013 budget on Wednesday. He explained that government managed to clear the deficit of NAf. 29 million, and is now in the process of the final review before the budget can be sent to the Committee for Financial Supervision CFT and Advisory Council.
Tuitt told the press at the Council of Ministers’ press briefing that the deficit was removed by placing heavy emphasis on tax compliance. “All the companies that are operating on this island without being registered and paying taxes, I can tell you next year we will catch you, so you better start to do what you are supposed to do before that.” This is expected to bring in some NAf. 10 million.

Also helping to generate NAf. 15 million is the increase in Turnover Tax (ToT) on alcohol and tobacco products. The increase will only be on the retail end of the sales, according to Tuitt.

Government is also looking at increasing some casino fees such as the table and machine fees. An inventory of the machines and the tables in all casinos is on-going and government is working out the percentage by which those fees will be increased. This should bring in NAf. 7.5 million.

Tuitt recently met with the “major stakeholders” in the casino business about the possible increases. “It was agreed to that the best route to take is to increase the fees on the tables and the machines.”
Also being counted on is St. Maarten’s portion of the Central Bank dividend of one million guilders.
While government is increasing revenues, it is also “decreasing expenditures by 10 per cent on material cost, not personnel,” said Tuitt.

Government has been working on balancing the draft budget for several months now. One of the major issues had been deficits from the past two years. All seven ministries have been asked by the finance minister to tighten their belts, and that has led to the draft budget being very focused on the regular operations of government and less on new projects and policies.

St. Maarten minister Tuitt grappling with NAf. 29 million deficit

THURSDAY, 29 NOVEMBER 2012

PHILIPSBURG–Finance Minister Roland Tuitt is still trying to erase a NAf. 29 million deficit from the draft 2013 budget. He hopes to have the draft budget balanced by Friday and ready for submission to the Committee for Financial Supervision CFT and the Advisory Council by early next week.

Tuitt told the press on Wednesday that the budget is “still encountering” a deficit. Government, he said, is looking at increased tax compliance as a means of cutting back on the deficit. This is a “realistic” method to boost government revenues.

“If we can continue doing as we have been doing up to this moment in increasing compliance, I think we can get a great portion of this deficit covered,” the minister said. He added that adding some NAf. 10 million to next year’s budget related to increased compliance would be realistic, because so far for 2012 government has collected some NAf. 6 million extra from increased tax compliance.

Tuitt again appealed to all businesses that are not paying their taxes to pay, because government will be giving some incentives to compliant businesses. One such incentive is for businesses that are willing to pay their back taxes before the end of the year, Government is willing to wave penalties for late filing/payment.

Another way government is looking at increasing revenues is via an increased tax on alcohol and tobacco products. “Rough” calculations show that government can raise some NAf. 10 to 15 million next year.
Government is also looking at ways to write off old debts within the scope of the law, such as “parking” old debts so they don’t show up in the system.

Tuitt said he intends to speak to the casinos about instituting Turnover Tax (ToT) on that type of business. He is to begin talks next week with the casinos.

Government is also looking at collecting dividends from the Central Bank of Curaçao and St. Maarten as yet another way of covering the budget gap.

The minister said government is also looking at “privatizing” the scholarships. Annually, government pays out some NAf. 4 million in scholarships. If the scholarship fund collects outstanding payments from all scholarship recipients, the fund would become viable over time.

Minister Tuitt: St. Maarten’s financial outlook ‘not really gloomy’

FRIDAY, 23 NOVEMBER 2012

~ Considering increasing ToT on tobacco, alcohol ~

PHILIPSBURG–”It is not really gloomy, but it is not where we want it to be,” Finance Minister Roland Tuitt told Members of Parliament (MPs) on Thursday when he reported on the country’s financial state of affairs.

The minister also signalled government’s intention to increase the Turnover Tax (ToT) on tobacco products and alcohol as a means of raising more revenue and announced that government has earmarked some NAf. 1 million in the 2013 draft budget to cover school fees for primary schools pupils and that legislation to increase the old age pension to NAf. 1,000 is being worked on.

The ministry is still working on balancing the 2013 budget, which appears so tight at present that “little room” is left for new policies because of the debt matrix in which government must work.
As he has done in the past weeks, the minister pointed out that his ministry had been working diligently to fill the budget gaps where they exist, such as the NAf. 21 million gap created by the mostly uncollectable back taxes from foreign condo owners. He pointed out that this was a situation created by the former government.
So far, investments of NAf. 5 million each have been made in the Ministry of General Affairs and Finance, NAf. 1 million for Justice, NAf. 4 million in education, NAf. 50,000 in health care, etc., NAf. 131,000 in tourism and NAf. 17 million in infrastructure VROMI.

The increases in the ToT on tobacco and alcohol will not be a deterrent to the country’s sales of those products to tourists who stock up here by buying duty-free. Tuitt called them “pleasure items” for people that ultimately affect government, if measures are not taken. Alcohol and tobacco use leads to several health concerns and causes a drag on the health-care system.

MP Roy Marlin (Democratic Party (DP)) was not convinced about the increase of ToT on cigarettes and alcohol due to the accumulated effect of the tax.

MP Johan Leonard (United People’s (UP) party), while being against the use of tobacco and alcohol, said he didn’t think a tax increase would make sense from a health point of view, because people would still use it.
MP Dr. Lloyd Richardson is not in support of the sale and promotion of alcohol and tobacco. He said car-racing was more beneficial to the country and would be a booster for the low-season months as would a cricket ground.
MP Louie Laveist (National Alliance (NA)) asked how the increase or introduction of the ToT on the two items would impact the country’s duty-free status. “I think a tax on alcohol and tobacco will become a burden due to abuse/use,” he said.

The minister again voiced his view that the Dutch Government should not leave St. Maarten without social aid, when they are busy giving similar aid to other countries in the world. “Why give to the rest of the world and not your brother and sisters in the Dutch Caribbean?” he asked.

MP Gracita Arrindell (UP) recalled that she had warned about the supposed debt relief the Dutch Government had promised to give St. Maarten for a good starting point as a country. She suggested the government look into the Intellectual Property Bureau as a source of revenue and to get the Committee on the division of assets and liabilities of the Netherlands Antilles to complete its work soon.

The 2012 budget will require some amendments to bring it in line with the revenue collected and other changes. The numbers are showing that revenues stand at NAf. 320 million, while expenditures are at NAf. 326 million, leaving a shortfall of some NAf. 5 million to be covered at present. Some NAf. 32 million is on the capital accounts and government is working on acquiring a loan to carry out some much-needed work.

The several ministries have spent some 75 per cent of their budgets already.

Taking all the figures into consideration, receipts for 2012 have been better than 2011, although collections have “not reached where we want it to reach.”

To address increasing cost, Tuitt said a personnel stop may be required. This has already been suggested by the Committee for Financial Supervision CFT. Marlin called for government to clean up its apparatus and remove people who are not reporting to work and find work to keep others who are there with nothing to do. He said the Economic Affairs Department needs help, because business licences and other permits are still taking a year to process.

“We must look for additional revenues for 2013,” the minister told MPs. As he is not in favour of increasing taxes, other avenues for revenue are being explored such as dividend payment from the Central Bank of Curaçao and St. Maarten. The bank had generated some NAf. 26 million for licensing fees annually in the days of the Netherlands Antilles. Now, Curaçao and St. Maarten have claims on the fees. Based on calculation, the licensing fees could bring in an additional NAf. one million.

Stimulating the Bureau Telecommunication to generate more money, creating a dividend policy to get funds from government-owned companies and collecting a dividend from St. Maarten Telephone Group of Companies TelEm and United Telecommunication Services (UTS) were some other possibilities mentioned.

The airport doesn’t pay a dividend, but government has “to tread carefully,” because one clause in the airport loan agreement is that no dividend can be paid while the loan is running.

MP George Pantophlet (NA) said he believed the airport and harbour companies could pay more to government to help the financial situation.

Government is also trying to find a solution for the “new government administration building” on Pond Island; some NAf. 24 million is needed to cover the Build, Own, Operate and Transfer (BOOT) fees. Government Accountants Bureau SOAB has “unravelled that BOOT fee” and has suggested the interest paid needs to be taken out of the sum, instead of presented as part of the rental payment. Tuitt said the contract would have to be looked at very carefully to see what could be done. If government had to put the interest separate, this would further increase the growing debt.

With the debt growing and other issues arising, St. Maarten could be pushed into a state where, for example, if it seeks a loan of NAf. 42 million now, the country may not be able to borrow again for as long as the CFT exists.
The country’s liquidity position is “positive.”

Tuitt said he requested a meeting with Parliament to outline the state of affairs and because be wanted the country “to start the year on the right foot.”

MPs Jules James (UP), and George Pantophlet and Hyacinth Richardson of NA also posed questions to Tuitt about the financial situation and other related topics.

The Central Committee of Parliament meeting was paused until further notice to give Tuitt time to respond to the questions.

The meeting did have a hitch. President of Parliament MP Rodolphe Samuel (NA) had closed off the first round of meeting very swiftly after the minister made his presentation. When he paused to see which MP wanted to speak, no one was ready or willing so he closed the round. However, this was protested, especially by James. The end result is that the “second round” will be treated as the first round of debate.

Moody’s gives St. Maarten a ‘Baa1 stable’ rating

MONDAY, 12 NOVEMBER 2012

PHILIPSBURG–Moody’s Investors Services has assigned a first time Sovereign Bond Ratings of Baa1 to St. Maarten and has branded the country’s outlook “stable,” Finance Minister Roland Tuitt announced on Friday.
The Baa1 rating reflects the country’s comparatively high economic development, Moody’s expectation of continued moderate debt level, the untested nature of the country’s institutions and continued nation-building support and fiscal oversight from The Netherlands.

Tuitt said the existence of the Committee for Financial Supervision CFT “has contributed to our positive rating.”
St. Maarten is in the same rating category as Trinidad and Tobago, and Mexico. The country is in a higher category than Barbados, which has a “Baa3 – negative” rating.

Moody’s also has assigned St. Maarten “an A1 local-currency risk ceiling,” the maximum credit rating achievable in local currency for a debt issuer domiciled in that country. An A2 foreign-currency bond ceiling and a Baa1 foreign-currency bank deposit ceiling also have been assigned. These ceilings are lower than the local-currency ceiling, as they also capture foreign-currency transfer and convertibility risks.

Moody’s said in a press statement issued on November 5: “St. Maarten’s 2011 per capita Gross Domestic Product (GDP) of US $22,000 is more than double the Baa category median. As a small Caribbean island, dependent on tourism and susceptible to weather-related shocks, a comparatively strong per capita GDP supports the country’s ability to quickly rebuild and adapt in the aftermath of a major storm.”

The debt to GDP ratio fell to 22 per cent last year from 28 per cent in 2010, a result of debt forgiveness provided by the Dutch government as part of the breakup of the Netherlands Antilles, according to Moody’s.
“If we had made use of the total debt forgiveness, this debt percentage would have been way lower, but we are working on it,” said Tuitt.

This debt percentage “compares favourably” with peers and is less than half the 45 per cent Baa median.
“But, we expect debt will rise this year and next, reaching almost 30 per cent of GDP in 2013, as the new country spends to build its institutional framework. Support from The Netherlands in the form of low-interest long-term financing, fiscal oversight and assistance on security matters, will likely continue for a few more years. We consider this assistance a key ratings support,” said Moody’s.

Tuitt said the country’s debt would increase due to government’s planned projects for this year and next year.
Constraining the rating, said Moody’s, are “a small, undiversified economy that is barely growing and the untested nature of the new country’s institutions.”

St. Maarten’s nominal GDP is less than US $1 billion, one of the smallest among all rated sovereigns. “GDP growth has been lacklustre in recent years, as with most Caribbean nations, showing an average annual decline of 0.2 per cent since 2008. Moody’s expects a return to a moderate 1.5 per cent growth this year, although this is highly contingent on external conditions, as tourism represents more than 80 per cent of the economy.”
Unlike the Bahamas, which has a similar level of economic development, St. Maarten does not have an important offshore financial sector, limiting diversification.

Tuitt said government was working on the “building blocks” for an offshore financial sector.

As the country obtained greater independence only two years ago, concerns remain about the strength of the institutions, particularly over time when assistance from The Netherlands will diminish, said Moody’s.
The stable outlook reflects Moody’s view that fiscal restrictions limiting debt service to no more than five per cent of public revenues and continued support from The Netherlands will limit the financial impact of a rise in the debt burden.
A sustained and permanent improvement to the debt metrics below current levels, together with clear evidence of continued policy continuity, even in the absence of external support, could lead to upwards ratings pressure. Alternatively, a continued increase in debt metrics over currently expected levels or a reduction of external support without an increase in domestic institutional strength could lead to downwards ratings pressure.

St. Maarten government working on United States’ Foreign Account Tax Compliance Act together with local banks

MONDAY, 12 NOVEMBER 2012

PHILIPSBURG–Government will work together with the Bankers Association and other financial institutions to be able to “effectively and efficiently as possible” meet the requirement of the United States’ Foreign Account Tax Compliance Act (FATCA), according to Finance Minister Roland Tuitt.

Tuitt said in a press conference Friday that an inter-governmental approach is of utmost importance. “That is why this government is pursuing the path to make sure we can get an agreement with the financial institutions that are required to report on the island, and to have a good communication and come to an inter-governmental agreement with the government of the US.”

Meetings will be held with the Bankers Association, after which government will formalise a strategy with which to move forward and have negotiations with the Treasury Department. Negotiations with the US Treasury Department and government will take place in collaboration with The Netherlands.

The US Department of the Treasury announced in a press statement Thursday that it is engaged with more than 50 countries and jurisdictions around the world to improve international tax compliance and implement the information reporting and withholding tax provisions, commonly known as the Foreign Account Tax Compliance Act (FATCA).
Enacted by Congress in 2010, these provisions target non-compliance by U.S. taxpayers using foreign accounts.Treasury’s engagement with this broad coalition of foreign governments to efficiently and effectively implement FATCA marks an important milestone in establishing a common, inter-governmental approach to combating tax evasion.

“Global cooperation is critical to implementing FATCA in a way that is targeted and efficient,” said Treasury Assistant Secretary for Tax Policy Mark Mazur. “By working cooperatively with foreign governments and financial institutions, we are intensifying our ability to combat tax evasion, while minimizing burdens on financial institutions.”

This summer, Treasury published a model inter-governmental agreement for implementing FATCA, and announced the development of a second model agreement. These models serve as the basis for concluding bilateral agreements with interested jurisdictions.

The Treasury Department has already concluded a bilateral agreement with the United Kingdom. Additional jurisdictions with which Treasury is in the process of finalizing an inter-governmental agreement and with which Treasury hopes to conclude negotiations by year-end include: France, Germany, Italy, Spain, Japan, Switzerland, Canada, Denmark, Finland, Guernsey, Ireland, Isle of Man, Jersey, Mexico, The Netherlands, and Norway.

Jurisdictions with which Treasury is actively engaged in a dialogue towards concluding an inter-governmental agreement include: Argentina, Australia, Belgium, the Cayman Islands, Cyprus, Estonia, Hungary, Israel, Korea, Liechtenstein, Malaysia, Malta, New Zealand, the Slovak Republic, Singapore, and Sweden. Treasury expects to be able to conclude negotiations with several of these jurisdictions by year-end.

The jurisdictions with which Treasury is working to explore options for inter-governmental engagement include: Bermuda, Brazil, the British Virgin Islands, Chile, the Czech Republic, Gibraltar, India, Lebanon, Luxembourg, Romania, Russia, Seychelles, St. Maarten, Slovenia, and South Africa.

The Treasury Department will continue its outreach to interested jurisdictions that wish to consider an intergovernmental approach to implementing FATCA, including participation in a meeting hosted by Qatar Central Bank in early December to provide information about FATCA and the inter-governmental agreements for invited senior government officials and financial institutions in the Gulf Cooperation Council.

Tourist sector to be taken out of St. Maarten budget for 2013

MONDAY, 12 NOVEMBER 2012

~ Funds to be managed by STA ~

PHILIPSBURG–Tourism expenditures and revenues for 2013 are slated to be removed from the draft 2013 budget, lowering the budget total by some NAf. 13 million and helping government achieve a new balanced budget with the assistance of the Committee for Financial Supervision CFT.

Finance Minister Roland Tuitt said government was working with the CFT on “a solution for us to come up with a new draft budget, including all the negative factors that are hanging outside there.”

One of the factors “holding back the budget” is a pending advice from the Corporate Governance Council (CGC) on the removal of the tourism sector and its related projects from the draft budget and placing them in still-to-be finalised St. Maarten Tourism Authority (STA).

Tuitt said if all systems were in place, the STA should be up and running by January 1.
Government hopes to have this new budget finalised by this month’s end, with submission to the CFT by early December.
The first draft budget had stood at about NAf. 444 million. The second draft budget figure will be less.

‘St. Maarten government should tackle unregistered companies’ to increase tax revenues

MONDAY, 05 NOVEMBER 2012

PHILIPSBURG–Government should go after the unregistered companies that “are making money and not paying what is due to the community,” instead of placing “too much pressure” on the business community that are up to date during the global recession, said United Peoples (UP) party Member of Parliament (MP) Gracita Arrindell.

“Government has a balanced 2013 budget of NAf. 443 million. Talks by the Minister of Finance of revenue increasing measures should not burden those who already pay their taxes and make their fair share of the contribution.
“The people and business community want relief at this time. The ‘Government for the People’ have not brought any relief since it took office six months ago,” she said.

Finance Minister Roland Tuitt has said that if every company pays at least some of the taxes they have to pay government will have more than enough money. “You can’t squeeze blood out of a stone. The working people of this country pay their dues and so do the thousands of businesses who contribute monthly in taxes to the coffers of the country.”

Government is heading in the direction of taxing the people and business community “to death.”

UP had “a strategy” to go after those businesses and others that were not paying at all. “Expanding the tax base will bring in additional revenues for government thereby covering new policies and programmes that need to be implemented.”
She said UP is “very concerned” with the notion that the National Alliance (NA) led government has plans to increase the Turnover Tax (ToT), which will only further exacerbate the fragile economic situation of the country.

Finance Minister Roland Tuitt on several occasions has pointed out that government has no increase in the ToT planned into the draft 2013 budget and any change to the current ToT levy will require a law change.

Arrindell said a ToT increase will also have “a negative influence” on other sectors of the community. The purchasing power of citizens, including our senior citizens and those most vulnerable will further decline. “The middle and working class people will also lose out as prices increase overall.”

Government’s focus should be “on creating opportunities” for new businesses which will create employment and bring in more income for government. “Shortening significantly the bureaucratic red tape” especially by introducing more efficient responses to business licences and building permit requests are also needed. Encouraging direct foreign investment, stimulating more public-private partnerships will also provide much needed funds for government, she noted.

“The current track the country is on is not good. Government has its priorities wrong, wrong direction; the country is on the wrong track,” Arrindell said.

Orkaan Sandy bedreiging voor evenwichtige begroting St. Maarten

DONDERDAG, 01 NOVEMBER 2012

PHILIPSBURG — Orkaan Sandy, die enorme verwoestingen heeft aangericht in het noordoostelijk gedeelte van de Verenigde Staten, vormt ook een dreiging voor een evenwichtige begroting voor St. Maarten. Dat zei minister van Financiën, Roland Tuitt, tijdens de wekelijkse persconferentie.

Door de bewindsman is naar voren gebracht dat de regering met de Nederlandse regering en het College financieel toezicht (Cft) zal onderhandelen over de spreiding over vijf jaar van meer dan 60 miljoen gulden aan schulden in de begrotingen van 2011 en 2012, om te voorkomen dat ze in de 2013 begroting worden opgevoerd.

Volgens Tuitt is men momenteel op zoek naar een oplossing. De dekking van oude schulden moet afgehandeld zijn voor goedkeuring van de begroting door de Staten. De begrotingstekorten zijn het gevolg van gebrek aan efficiënte inning van belastingen bij zaken en het publiek gedurende de afgelopen twee jaar. Tuitt heeft weer een beroep gedaan op wanbetalers om hun verplichtingen na te komen.

Het land heeft de begrote inkomsten aan belasting over 2012 nagenoeg binnen, volgens de minister van Financiën. Men heeft nu echter een nieuwe reden voor zorgen. De situatie in de toeristische economische sector kan te maken krijgen met de gevolgen van de vernietigende posttropische cycloon Sandy die eerder over de oostkust van de Verenigde Staten is getrokken. De VS is de grootste toeristische markt voor St. Maarten.

“Dit kan negatieve gevolgen hebben voor het toerisme,” stelt de minister. Als de huidige situatie aanhoudt, kan de regering echter het beoogde bedrag van 444 miljoen gulden innen dit jaar. Indien de belastinginning wordt voortgezet en overeenkomt met de projecties en de regering niet hoeft te betalen voor premies van gezinsleden van SZV-verzekerden, heeft het land dit jaar een evenwichtige begroting.

Het Ministerie van Financiën zou vandaag de jaarrekeningen over 2011 bij het Cft indienen.

St. Maarten government to negotiate with dutch, CFT about spreading 60 million guilder debt

THURSDAY, 01 NOVEMBER 2012

Herald 01.11.12

Government Accountants Bureau SOAB’s draft report on Taxand submitted on St. Maarten

THURSDAY, 01 NOVEMBER 2012

PHILIPSBURG – Finance minister Roland Tuitt has received the first draft report from the Government Accountants Bureau SOAB on the process used by the fomer minister Hiro Shigemoto to hire and pay United Kingdom based Taxand.

Herald 01.11.12 II

St. Maarten gets extension for US tax compliance act

POSTED: 11/1/12

St. Maarten – The United States of America has granted St. Maarten a one year extension on the implementation of the Foreign Account Tax Compliance Act (Fatca). “Since they saw the complications that are taking place as far as this legislation is concerned they have extended implementation to January 1, 2014,” Finance Minister Roland Tuitt said yesterday.

In 2010 the United States enacted Fatca. Foreign financial institutions like banks, pension funds, insurance companies, asset managers and private equity funds were supposed to have entered into an agreement with the IRS by June 30 of next year. These institutions are obliged under the new legislation to undertake certain identification and due diligence procedures with respect to its account holders and to report to the IRS annually on its account holders who are US citizens or foreign entities with substantial US ownership.

“I suppose the banks on the island will be happy with that but they will still have to continue with their preparations,” Tuitt noted while addressing the extension.

The government wants to get a meeting with the US to see how they negotiate an agreement for the implementation of the Fatca process. Tuitt said that his aim will be “to see how it will benefit us and banking and other institutions on the island.”

Report on transparency yields ‘positive’ results for St. Maarten

TUESDAY, 30 OCTOBER 2012

CAPE TOWN, South Africa–St. Maarten’s Phase I Peer Review Report was adopted during the fifth meeting of the Organisation for Economic Cooperation and Development (OECD) Global Forum on Transparency and Exchange of Information for Tax Purposes in Cape Town. The report concluded that all assessed elements of St. Maarten’s legal and regulatory framework are in place, with only a few recommendations on further improvement to implement the international standard more effectively.

The report summarizes the legal and regulatory framework for transparency and exchange of information of St. Maarten
Finance Minister Roland Tuitt, who is attending the meeting, welcomed the positive outcome of peer review assessment and believes that the report is one that “St. Maarten can truly be proud of.”

St. Maarten, as the last country within the Dutch Kingdom to be reviewed, had the opportunity to draw on the experiences of Aruba, Curaçao and The Netherlands.

“This has helped us to identify the strengths and shortcomings that exist in our legal and regulatory framework. As a result, the government of St. Maarten was able to proactively address these shortcomings and produced the best report within the Kingdom of The Netherlands,” Tuitt said.

The Global Forum and OECD network will assist St. Maarten as the government continues to work on improving tax compliance, preventing tax leakage, and improving the tax system by making it simpler, fair and balanced, said the minister. “This will ultimately be to the benefit of both the government and the tax payers of St. Maarten in the long run by increasing overall tax revenues, while reducing the individual tax burden for tax payers.”

The Global Forum is the multilateral framework within which work in the area of transparency and exchange of information is carried out by more than 110 member countries that participate on an equal footing.
The Netherlands Antilles had been a member of the Global Forum since 2001.

St. Maarten minister Tuitt signs tax treaties with India, Costa Rica and Czech Republic

TUESDAY, 30 OCTOBER 2012

CAPE TOWN, South Africa–Finance Minister Roland Tuitt has signed tax treaties with India, Costa Rica and the Czech Republic during his trip to Cape Town, South Africa, where he is attending the fifth meeting of the Organisation for Economic Cooperation and Development (OECD) Global Forum on Transparency and Exchange of Information for Tax Purposes.

The Tax Information Exchange Agreements (TIEAs) are bilateral agreements to promote international cooperation in tax matters through exchange of information. The TIEA allows St. Maarten to work separately with India, Costa Rica and the Czech Republic on a full range of tax issues, including combating and preventing tax fraud and tax evasion.

TIEA provides information exchange upon request and direct cooperation between the countries’ tax authorities. The strengthened international cooperation on tax matters between countries ensures better enforcement of the tax laws, thus improving tax compliance.

St. Maarten’s network of international agreements on exchange of information has been expanding rapidly since 2009. With the conclusion of these TIEAs, which have been negotiated during the last two months, St. Maarten has exchange of information relationships with 53 jurisdictions to date.