Page 1

Finance INSIDE


A Publication of the Ministry of Finance, Planning, Economy, Energy, Foreign Trade & Cooperatives

Volume 4, Issue 4, June - July 2008

elcome Ministry of Finance, Planning, Economy, Energy, Foreign Trade & Cooperatives “... the engine room of the Public Service...”

As was said by Minister Burke on his first day on the job, “this is the beginning of a new partnership and new experience”. The challenge is now up to each and every one of us to make it work.




n behalf of the Ministry of Finance, I take this opportunity to congratulate the new government on its assumption into office following the general elections and wish members a successful and productive term.

I also take this opportunity to extend a warm and gracious welcome to the new Minister for Finance, Hon. Nazim Burke, and the new Minister for State in the Ministry of Finance, Hon. Michael Church, to the family of the Ministry of Finance. May your time here be filled with success and positive results. To the new departments/units which now form part of this Ministry, it is a pleasure having you as part of this Ministry; and with you on board, the stage is set for an even more exciting and interesting working experience.

2 Finance INSIDE

With the change in Government, it is almost certain that changes will take place within the organization, be it in structure, policy, personnel and/or the like. As with any change that presents us in life, what we should always do as individuals is to embrace it! Change provides the opportunity for something different. Different challenges, different personalities, different ideas, different faces, different choices, approaches, and solutions which ultimately contributes to achieving that greater good. There is an old adage which states that the only thing constant is change. Change happens whether or not we like it. Trying to stop/ block change from happening will only lead to individual frustration and unhappiness. It is a known fact that many people fear change for they see change as the 'unknown' or the 'uncertain future', and because of that, they are willing to settle for the status quo because it is 'familiar and comfortable'. But, is 'familiar and comfortable' the desired level of satisfaction? What if things can be even more 'comfortable'? Perhaps with just a tweak here or there? According to King Witney Jr., “Change has a considerable “... the engine room of the Public Service...”

psychological impact on the human mind. To the fearful it is threatening because it means that things may get worse. To the hopeful it is encouraging because things may get better. To the confident it is inspiring because the challenge exists to make things better”. Let us as a Ministry be the 'confident' and embrace this period as an opportunity to prove ourselves even more as the stalwart and vibrant professionals and visionaries that we are. Let us work to be even more productive and creative and inspirational to others than we presently are. Let us share the vision of our new Minister and Government to transform Grenada and be a part of the creation of our future, remembering that the most potent factor in the creation of one's future is oneself. I once read that victory does not always go to the largest armies, the best deployment, and the most firepower. It goes as often to the smaller force with the greatest imagination, flexibility, and boldness, with the vision to make something happen. Let us adopt this thinking as we go forward. “The best way to get to a desirable outcome is to go out and create it, to envision that outcome, plan for it, and work for it.”


between Government, the Private Sector, the Trade Unions and other representatives of civil society. It is the Government's intention to work assiduously to ensure that it creates that enabling environment that will facilitate the total transformation of the economy and country as a whole. As a means of achieving this, it is imperative that we restructure and strengthen the capacity of the Ministry of Finance to improve its effectiveness and to facilitate the undertaking of its new responsibilities. Apart from the additions of the Energy and Cooperatives units, this restructuring of the Ministry will see the inclusion of the following units/departments: !

An Office of Private Sector Development;


A Debt Management Unit;


A Division of Economic and Technical Cooperation;

MINISTER'S NOTE Ministry of Finance, Planning, Economy, Energy, Foreign Trade & Cooperatives

Hon. V. Nazim Burke



A Waste Reduction Unit; and


The creation of the Public Procurement Authority.

These changes, along with those which will be made in the other sectors, will facilitate better management of Grenada's limited resources and ultimately a stronger economy.

s the new Minister for Finance, Planning,

The participation of every member of staff will be

the Economy, Energy etc., I want to say

instrumental in effecting the changes that are about to

how humbled I am to have the Prime

take place. I therefore ask for the cooperation, patience,

Minister place his confidence in me by entrusting

and understanding of the staff of the Ministry and its

this very important Ministry to my care. This is the

affiliates, as we go through this transition process. I also

beginning of a new partnership and I am rather

ask the same of the stakeholders and the customers we

excited about the prospects that I see before me. I

serve. It is only through working together that we can

look forward to working together with the staff to

achieve our goals. Thank you to everyone for their

make this Ministry a dominant force in the country.

cooperation thus far.

From a government standpoint, one of the main

I cannot end without saying a special “thank you” to all

priorities, at this time, is the strengthening of the

members of staff for the warm and friendly welcome I

economic management of the country and

received on the first day on the job. It was indeed a special

improvement of the overall business climate. With

occasion and I enjoyed meeting and interacting with

this in mind, the Government is committed to

everyone. I look forward to working with you and to a long

building a strong and meaningful partnership

and productive future together.

“... the engine room of the Public Service...”

Finance 3 INSIDE


bout seven years ago, I exited formally the Grenada Public

Service. At that time, I had no idea that I would

return seven years later to the public service environment as Minister of State in the Ministry of Finance, Economy, Planning, Energy, Foreign Trade and Cooperatives. The re-entry has been very satisfying, invigorating and hope-filled one.

Having met most, if not all of the workers in our

MINISTER of STATE Ministry of Finance, Planning, Economy, Energy, Foreign Trade & Cooperatives

Hon. Michael Church

ministry, I am convinced that we are well endowed with the requisite human resource to accomplish the monumental tasks ahead of us. I sense a commitment, generally, on the part of the staff to work hard and to succeed. Many staffers have expressed to me their desire to

achieve, especially now that they are experiencing a new sense of ease and freedom. I guess that comes with our determination to create and maintain an environment of democracy and fair play in the work place.

In order to foster and enhance such a positive working environment, I wish to assure every worker in our Ministry that he/she is guaranteed all the respect deserving of a human being and a dedicated worker. Each one must feel comfortable to approach me with their concerns and contributions. I am here to listen, learn and implement development-oriented actions so that collectively we can advance as the family with responsibility for the Ministry.

4 Finance INSIDE

“... the engine room of the Public Service...�



released on Wednesday, July 23, 2008, St. George's:

The Ministry of Finance is aware of the problems being experienced by customers of SGL Holdings Inc in getting their deposits repaid. At a meeting held on Wednesday July 23 with the Ministry of Finance, the company advised that the present challenges being experienced emanate from difficulties facing its trader, Olint TCI, located in the Turks and Caicos Islands. Olint TCI has had its assets frozen pending an investigation into its operations and until such time as this matter is resolved the Company is unable to make any payments to its customers. The Ministry of Finance wishes to make it clear that contrary to media reports, SGL Holdings does not fall under the Banking Act. In May 2007 SGL Holdings applied to the Grenada Authority for the Regulation of Financial Institutions (GARFIN) for a licence to conduct its operations. GARFIN immediately commenced the licensing process which entails extensive due diligence on the principals of the Company and its operations. Initially, the Company was being considered for a Money Services Business licence. However, during this process it was determined that SGL's activities may not fall under this area. Consequently, the Eastern Caribbean Securities Regulatory Commission (ECSRC) was contacted for advice. Officials from the Commission met with SGL Holdings in Grenada on April 15, 2008 and by way of letter dated May 29, 2008 the Commission advised that the activities of SGL Holdings constituted the operation of a “collective investment scheme”. This amounted to “securities business” as defined under the Securities Act 2001 and therefore the Company fell to be regulated by the ECSRC. The Commission further directed that SGL Holdings cease and desist from conducting securities business and apply for the necessary licence. The Company ceased accepting new deposits and was in the process of preparing its application to the Commission

for the relevant licence. The Company has advised that its trader remains committed to fulfilling its obligations once the restriction on its assets is lifted. Efforts are being made to ascertain from the authorities in the Turks and Caicos Islands the status of the investigations. The Ministry of Finance continues to monitor the situation and will be in contact with the ECSRC as the official regulator for collective investment schemes.


Deep beneath me, a lion struggles to breathe, Deep beneath me, an eagle soars in the breeze, Deep beneath me, a unicorn cast a spell so serene, Deep beneath me, a joy swells like a dream, Deep beneath me, mischief gives way to a blessing. While deep, deep beneath me happiness and peace reins from within.

By: Rhea Williams

Ozone Word Scramble Answers on Page 14 Cancer, Sun block, Layer, Depletion, Sunglasses, Ozone, Montreal, Aerosol, Umbrella, Stratosphere, Refrigerant, Extinguishers, Phase out, Hydrocarbons, Chlorine

“... the engine room of the Public Service...”

Finance 5 INSIDE

IMF Executive Board Completes First Review under PRGF Arrangement with Grenada, Extends Arrangement, and Approves US$4.8 Million Disbursement Source: IMF Press Release No. 08/169, July 8, 2008

The Executive Board of the International Monetary Fund (IMF) has completed the first review of Grenada's economic performance under the Poverty Reduction and Growth Facility (PRGF) and approved the disbursement of an amount equivalent to SDR 2.98 million (about US$4.8 million). Given the delay in completing this review and sharp increases in world food and fuel prices, the Board also approved a one-year extension of the PRGF arrangement to 2010. It further approved the rephasing of the remaining disbursements and augmenting the arrangement by SDR 1.46 million (about US$2.4 million). The first review was delayed because of the time needed to address an unregulated bank, fiscal slippages, and the slow pace of structural reforms. The Executive Board also granted the authorities' request for a waiver of a missed 2006 quantitative performance criterion on the central government primary balance, which was missed in part because of higherthan-anticipated costs of reconstruction. The three-year PRGF arrangement with Grenada was originally approved for a total amount equivalent to SDR 10.53 million (about US$17.1 million) on April 18, 2006 (see Press Release No. 06/75). Following the augmentation, the total amount of the arrangement will be equivalent to SDR 11.99 million (about US$19.4 million). Following the Executive Board discussion, Mr. Murilo Portugal, Deputy Managing Director and Acting Chair, said:

6 Finance INSIDE

program targets an overall deficit for 2008 in line with debt sustainability. The authorities are taking steps to improve expenditure control and strengthen capacity to screen and prioritize capital projects. The authorities are working on a resolution strategy for an unregulated bank. The establishment of the Grenada Authority for the Regulation of Financial Institutions (GARFIN) will promote financial sector stability by enhancing supervision of the broader financial sector, including the insurance sector. "The authorities are to be commended for implementing policies to bring the economic reform programme back on track. Grenada's economy has rebounded from the devastation of Hurricanes Ivan and Emily, driven by spending for reconstruction and by tourism. While annual inflation is projected to increase in 2008, reflecting rising world fuel and food prices, medium-term prospects are favourable, given several major tourism projects under way and in the pipeline. The authorities have made considerable progress with their reform agenda, including introducing the National Reconstruction Levy and a flexible fuel pricing mechanism, strengthening tax administration, reducing vulnerabilities, and enhancing transparency and the investment environment. However, more progress needs to be made in strengthening fiscal policies. Restoring fiscal and debt sustainability remains the centerpiece of the authorities' programme. The fiscal

“... the engine room of the Public Service...�

The revised structural reform agenda reflects the authorities' priorities and implementation capacity and will focus in 2008 on enhancing the investment climate, reforming the tax concessions regime, and improving tax and customs administration. The authorities remain committed to reducing poverty and improving social indicators. They aim to address the impact of rising world fuel and food prices through targeted assistance to vulnerable groups. The Fund has approved an increase in its financial assistance to Grenada to help with the higher food import bill. Completion of the Country Poverty Assessment in December 2008 will support preparation of the full Poverty Reduction Strategy Paper." The PRGF is the IMF's concessional facility for low-income countries. PRGF loans carry an annual interest rate of 0.5 percent and are repayable over 10 years with a 5½-year grace period on principal payments.


Everyone Should Know

What is a stock split?

A Few Ways to Lower Your Car Insurance Rates With all the expenses one has in regards to their car - gas, maintenance, and of course car insurance; your auto insurance could be the easiest one to save money on. Taking time to review your policy, taking time to compare multiple quotes, and raising your deductible are just some of the ways you can start saving on car insurance.

It is when a corporation

1. Shop and Compare Rates Every Time You Renew Your Insurance

without any change in the

If you check your car insurance rates in 2008, make sure you check them again in 2009. According to an independent study, people who compare rates and switch carriers do save on an annual basis. Get updated quotes and see what your individual savings could be.

shareholder's equity or the

2. Lower Your Premium by Selecting Higher Deductibles Simply put, the higher your deductible, the lower your premium. Indeed the cost of an accident will be that much more expensive; however, if the damage is minor (grey zone in making accident claim), you'll be spending the same out-of-pocket amount regardless. 3. Make a Cheaper Policy Even Cheaper: Don't Pay in Monthly Installments Additional administrative fees are commonly applied to payments when you split your premium into installments (i.e. monthly, semiannual, annual). Be aware that a monthly fee of even $7 can add up to $84 over 12 months.

increases its number of outstanding shares of stock

aggregate market value at the time of the split. In a split, also called a split up, the share price declines. Directors of a corporation will authorize a split to make ownership more affordable to a broader base of investors.

4. Look for Multi-Line Insurance Discounts The most under recognized car insurance discount results from the multi-line insurance policy: buying your auto insurance and your homeowners insurance from the same insurance company. According to the Insurance Information Institute, a multi-line policy can save you up to 15% on both premiums.


Source: ECSE

he Minister of Finance, Planning, Economy, Energy, Foreign Trade & Cooperatives, Permanent Secretaries, Management and Staff extend condolences to the family and friends of all those who have lost their loved ones recently. “Good men must die, but death cannot kill their names” God's Peace Be With Their Souls.

“... the engine room of the Public Service...”

Finance 7 INSIDE


Please find below some useful information on how to best prepare for the hurricane season.

BEFORE A HURRICANE THREATENS 1. Look over your insurance policy to ensure it provides adequate coverage. 2. Check the storm surge history and elevation of your area. 3. Make an inventory of possessions including photographing your house and all the rooms inside for insurance purposes. 4. Make sure your roofing is properly fastened and secure make all necessary repairs. Obtain lumber, plywood, hurricane shutters and concrete nails for battening up. 5. Know your evacuation route and emergency shelter. 6. Organize a place to meet with family should you become separated during the storm. 7. Clear your yard and drains of debris. 8. Prune trees limbs that are close to your house or that of your neighbour. They can cause damage to your house or utility wires during a store. 9. If your home is at risk, plan in advance where you will stay. Contact the NaDMA Office for the location of the nearest shelter at Tel: 473-440-0838 or 8390-4, Fax: 473-440-6674, E-mail:


9. 10.

11. 12. 13. 14. 15.

documents etc.) wrap them in plastic and store them in a safe. Stock up on water and non-perishable foods. Remember to also refill prescriptions needed. Service family vehicles and fuel up with gas to avoid long lines at the gas station after the hurricane, park it in a safe place. Also fill containers for portable generators. Park your car in a place that will be safe from falling tress, utility poles and flying debris. Stock up on batteries, extra kerosene oil for your lamps and make sure you have a portable radio in good working condition. Batten down windows and doors with shutters or lumber. Wedge sliding glass doors with a bar. Turn off electricity from main switch a few hours before the storm is expected to hit. Unplug major appliances. Have extra cash on hand, credit and debit cards might be of limited use after a hurricane. Review working condition of emergency equipment, such as flashlights and battery powered radios.

WHEN A HURRICANE THREATENS 1. Turn refrigerator and freezer to the coldest level. Freeze water in plastic containers. 2. Store enough water to last 2 weeks for each person in your household. 3. Sanitize bath tubs and fill with water. 4. Secure all outdoor objects such as awnings, patio furniture, garbage cans by tying them down or bringing then inside. 5. Remove TV, radio antennae and satellite dishes from roof and secure them. 6. Pick fruits such as mangoes etc., from trees. Clear your yard of debris. 7. Remove all pictures, clocks, books, figurines, tools, office equipment, appliances and important papers (passport, birth certificates, land titles, insurance Continues on pg. 9

8 Finance INSIDE

“... the engine room of the Public Service...�

Cont'd from pg. 8

16. Give your cell phone batteries a full charge and purchase extra credits (if you are on a prepaid plan). 17. Frequently listen to radio or TV for official bulletins of the storm's progress. 18. Remember you can help you neighbours by sharing tools and help them batten down.

2008 STORM NAMES Why are hurricanes named? It's much easier to identify a storm by a name than by using the older methods of latitude and longitude. This ease of identification is especially important when more than one storm occurs at the same time.

WATER AND FOOD STORAGE TIPS 1. Store enough water to last 2 weeks for each person in you household. A normal active person requires a minimum of 1 liter of water per day for drinking and food preparation. 2. Water should be stored in clean, well-covered containers. 3. Label the containers with the current date and renew your drinking supply each month. 4. Store emergency food in waterproof containers. 5. Arrange items so that those stored first will be used first. 6. Observe expiration date on packaged foods. 7. Wrap bread, biscuits, cookies, crackers, and other dry goods in plastic bags and keep in tight containers. 8. Your storage area should be dry, cool and free from contamination by insects, poisons and other chemicals.

Fact: Names are recycled every 6 years. Influential hurricanes have their names retired. 1. Arthur 2. Bertha 3. Cristobal 4. Dolly 5. Edouard 6. Fay 7. Gustav 8. Hanna 9. Ike 10.Josephine 11. Kyle 12. Laura 13. Marco 14. Nana 15. Omar 16. Paloma 17. Rene 18. Sally 19. Teddy 20. Vicky 21. Wilfred

TERMS YOU SHOULD KNOW A hurricane - is a type of tropical cyclone–an organized rotating weather system that develops in the tropics. Hurricanes rotate counterclockwise in the Northern Hemisphere. Tropical cyclones are classified as follows: Tropical Depression - An organized system of persistent clouds and thunderstorms with a closed low-level circulation and maximum sustained winds of 38 mph (33 knots) or less. Tropical Storm - A tropical cyclone in which the maximum sustained surface winds are from 39 miles per hour (34 knots) to 73 miles per hour (63 knots). At this point, the system is given a name to identify and track it. Hurricane Watch - An alert added to an hurricane advisory covering a specified area and duration. A watch means that hurricane conditions are a real possibility; it does not mean they are imminent. When a watch is issued, everyone in the area covered by the watch should listen for further advisories and be prepared to act quickly if hurricane warnings are issued. Hurricane Warning - Hurricane conditions (winds of 74 mph or more and/or dangerously high water) are expected within 24 hours. A hurricane warning can remain in effect when dangerously high water or a combination of dangerously high water and exceptionally high waves continue, even though winds may be less than hurricane force. Hurricanes are categorized according to their wind speeds. Category 1 - Wind speed of 118-153 km/h (74-95 mph) Category 2 - Wind speed of 154-177 km/h (96-110 mph) Category 3 - Wind speed of 178-209 km/h (111-130 mph) Category 4 - Wind speed 210-249 km/h (131 -155 mph) Category 5 - Wind speed above 249 km/h (155 mph)

Supply List Emergency Supplies This is a list of typical supplies that you should have on hand when a storm threatens. This list is by no means complete, but can be used as a reference when making your own list. Water, enough to last 2 weeks (for each member of the household) Food that do not require cooking such as canned or salt fish and meat such as corned beef, sausage, sardines etc.. Packed oats or other cereals, biscuits, crackers and bread Canned soups, coffee, tea, milo, and juices, Flour, rice, sugar and salt. Infant formula (if you have infants in the household) First Aid Kit: petroleum jelly, aspirin, eye wash, bandages, cotton, diarrhoea medication, antacid and laxative. Personal hygiene products such as tissue, soap, sanitary napkins. Disposable cups, forks and spoons. Manual can opener Large plastic garbage bags Containers for water and fuel storage Coal, Cooking Utensils Portable Cooler100 feet of rope Portable generator Duck Tape Needle, thread and scissors Blanket and towels Mosquito repellant Tarpaulin (canvas or plastic) Other Battery operated radio Flashlight (with a spare bulb) Extra batteries Matches and candles Kerosene Oil Hurricane lamps Bleach and other cleaners Evacuation and Shelters It is advised to evacuate your home if: 1. In an area that drains or streams are likely to overflow or you are in a low-lying area. 2. You feel that your home will not offer adequate protection. 3. Advised by authority. Take your own supplies to the shelter including food to last at least 3 days, change of clothes, medication, sanitary need, battery operated radio and flashlight and your important papers (passport, insurance documents, birth certificate etc.) DO NOT take alcoholic beverages, weapons or pets to the shelters!

“... the engine room of the Public Service...”

Finance 9 INSIDE

Finance INSIDE

“... the engine room of the Public Service...”

Facts Fun &

Have a laugh...

Did U Know? !

That the Valuation Team is now conducting its assessment in Carriacou and Petite Martinique?

THE NEW CEO A company, feeling it was time for a shake-up, hires a new CEO. This new boss is determined to rid the company of all slackers. On a tour of the facilities, the CEO notices a guy leaning on a wall. The room is full of workers and he wants to let them know he means business! The CEO walks up to the guy and asks, "And how much money do you make a week?" A little surprised, the young fellow looks at him and replies, "I make $300.00 a week. Why?"


That the Energy Division is now located at Building one The CEO then hands the guy $1,200 in cash and screams, "Here's four weeks pay, (1) of the Financial now GET OUT and don't come back!" Complex on the Carenage?


That the Cooperatives Unit asks, "Does anyone want to tell me what that goof-off did here?” is now located at the Grenada National Stadium? With a sheepish grin, one of the other workers mutters, "Just some guy delivering

Feeling pretty good about his first firing, the CEO looks around the room and

the Chinese food we ordered.”

Find a word of phrase similar to meaning to the following:

1. Copy 2. Flooded 3. Terrifying

Fun Facts !

The Earth experiences 50,000 earthquakes each year.


22,000 checks are deducted from the wrong bank accounts every hour.


Google's name is a play on the word googol, which refers to the number 1 followed by one hundred zeroes.

4. Fashion 5. Gave out 6. Prisoner 7. Connivers 8. Wipe out 9. Bare-bones 10. Knocked-out 11. Treat indulgently 12. Retirement place 13. Series of tiny change


Why did the farmer bury all his money in his fields? Ans: He wanted rich soil. What should never be eaten after it's served? Ans: A tennis ball.

“... the engine room of the Public Service...”

1.Reproduce 2.Inundated 3.Horrific 4.Mode 5.Issued 6.Captive7. Plotters8.Eradicate 9.No-frills 10.Stunned 11.Coddle 12. Rest-home 13.Gradations


Finance 13 INSIDE

Man-made Materials It accelerates the degradation of certain materials including paints and plastic.

Energy Corner

What is the Ozone Layer & Why is it Important? The Ozone Layer is a shield of ozone gas found in the stratosphere (approximately 10-50 km from the earth's surface) that absorbs harmful ultra violet radiation and prevents it from reaching the earth. What is Ozone Depletion? The release of certain ozone depleting chemicals consisting of chlorine, fluorine and bromine reacts with the ozone molecule and breaks don the Ozone Layer. The result is thinning of the Ozone Layer known as Depletion. What are Ozone Depleting Substances (ODS)? These are chemicals that have the potential to deplete Ozone Layer. They contain chlorine or bromine and have long atmospheric life.The most common Ozone Depleting Substance is Chlorofluorocarbon (CFC). Other common ODSs are Halons, methyl bromide and carbon tetrachloride. Common Uses of Ozone Depleting Substances Refrigeration - CFCs are used as refrigerants in domestic and commerce refrigerators, enclosed cold storage spaces and ice machines. Air Conditioning - CFCs are also used in domestic commercial and mobile (cars etc) air condition units. Aerosol - CFCs are used as the propellant in aerosol sprays such a insecticides, hair sprays, deodorants, engine degreasers etc. Fire Extinguisher - Halons are used in fixed and portable fire extinguishers and are extremely destructive to the Ozone Layer when released into the atmosphere. Fumigant - Methyl bromide is commonly used in agriculture as a fumigant for crops and sterilizing sail. Foams - A number of CFCs are used as blowing agents in the manufacture of foam products such as appliance insulation, food packaging, furniture bedding, carpet underlay etc.

Global Warming It contributes to global warming and climate change which can have severe effects such as higher atmospheric temperatures and rising sea levels. What is being done to save the Ozone Layer? The Montreal Protocol on Substances that Deplete the Ozone Layer In 1987 Government across the world adopted the Montreal Protocol to control and eliminate the production and consumption of Ozone Depleting Substances. The Protocol entered into force on January 01, 1989. Grenada ratified the Protocol on March 31st, 1991 and the government made its commitment to maintain compliance to the obligations of the Protocol. The Montreal Protocol consists of a comprehensive phase out schedule for the production, use, imports and exports of Ozone Depleting Substances. Grenada's Response 1. Establishment of a National Ozone Unit - currently located in the Energy Division in the Ministry of Finance. 2. Appointments of a National Ozone Officer and an ODS Project Officer. 3. Training - technicians in Good Refrigeration Practices and Customs Officers- in Monitoring and Controlling Trade in ODSs. 4. Licensing System and Import Restrictions - a licensing system has been established to control the importation and exportation of ODS. 5. Public Awareness and Education - radio and TV spots and interviews, presentations to schools and other interest groups, distribution of posters, brochures and other public awareness materials. Grenada's response has so far resulted in Grenada having completely phased out the use of CFCs and thus exceeding its agreement under the Montreal Protocol to have CFCs passed out by 2010. Grenada achieved this milestone in 2006, (four (4) years before the schedule)S and is now considered to be in full compliance on this aspect. This has earned Grenada recognition at the highest level.

The effects of Ozone Layer Depletion on Human Health and the Environment Human Health Skin - cause sunburn and skin cancers; Eye - cause cataract and other chronic eye diseases which may lead to blindness; Immune System - suppresses the efficiency of the body's immune system and increases the risk of diseases. Crops Reduces crop yields and nutritional value. Upsets the balance of ecosystem. Aquatic Organisms (Plankton) Aquatic organisms cannot survive excessive exposure to UV-B radiation.

14 Finance INSIDE

Ozone Word Scramble See if you can unscramble these words associated with ozone science and ozone depletion RACNEC NITOELPDE LMOANTRE ESRTERSOTAHP ESATUHPO


“... the engine room of the Public Service...�


FFinance inance INSIDE

What’s Been Happening

BACK-PAY TO PUBLIC OFFICERS, POLICE AND PRISON OFFICERS FOR THE PERIOD JANUARY – DECEMBER 2007 On Wednesday June 18th 2008, the Government of Grenada made Back-pay payments to all Public Officers (except teachers), Police and Prison Officers, and Pensioners. This Back-pay was for the period January to December 2007 in accordance with agreements signed between the Government of Grenada and the Public Workers Union, Police and Prison Welfare Associations. The total sum of this Back-pay was as follows:Public Officers including Prisons: Pensioners: Grand Total:

$7, 184, 155. 19 $1, 758, 296. 27 $8, 942, 451.46

In February 2008, Government paid EC$3.7M to public officers and pensioners as Back- pay for 2006. G-REP COLLABORATES WITH DELTA STATE UNIVERSITY ON TWO INITIATIVES IN RURAL GRENADA A group of four students from Delta University Mississippi, headed by their professor Dr. Paulette Meikle, arrived in Grenada on May 1st 2008 to work along with the Grenada Rural Enterprise Project (GREP), in a series of activities in River Sallee, Chantimelle and the surrounding communities. The students, who were in Grenada for a period of one (1) month, was comprised of two (2) students who are completing their masters degree in Community Development and two (2) students who are engaged in undergraduate studies in Sociology. In collaboration with GREP, the visitors were engaged in the following: 1. Conduct of a Basic Computer Course at the River Sallee IT Centre. The course involved the basic use of Microsoft Word. 2. Training for persons familiar with computers but not exposed to the internet, at the Chantimelle IT Centre. They were trained in the use of the World Wide Web. 3. The conduct of a research activity focusing on Women's Community Engagement and Community Building in Rural Grenada. The main purpose of the research activity was to collect data on the extent and effect of public engagement or community participation on building social capital among

women. The premise of the research was that community engagement among women ultimately improves the quality of life among all community residents, reduces gender inequality, builds community cohesion, and ultimately, community activeness.

The communities of La Tante, Victoria and surrounding areas were selected for the research. Data was collected through the administering of a questionnaire by the Delta State Students and the GREP Community Officers. They interviewed a total of one hundred and seven (107) women. Additionally, two focus group meetings, which were chaired by Dr. Meikle and four other students, were held on Monday June 23rd and Wednesday June 25th at the Victoria Hotel and Pomme Rose R.C. School, respectively. Both sessions focused on issues that affect women within their communities. The activities came to a close on Tuesday June 24th 2008 with a graduation ceremony for the successful participants of the computer and internet programmes, where they were awarded certificates from the Delta State University. The ceremony took place at the Chantimelle R.C School. CADASTRAL SURVEY IN CARRIACOU & PETITE MARTINIQUE

From Monday 15th June 2008, the Valuation Division of the Ministry of Finance commenced work with regard to the conduct of the Cadastral Survey on the island of Carriacou. This survey is based on the order published by the Minister of Finance in May 2007. The Survey, which is being conducted in accordance with the Property Tax Act #2 of 1997 as amended, involves the measurement and inspection of all buildings, and the assessment of all lands for the purpose of determining an updated and accurate Value of the Property. The last official Valuation on buildings was in 1994. This means that building values have remained constant for the last fourteen (14) years and may not reflect the current market prices. Similarly, the last official Valuation on lands was conducted in 2001. Due to extensive renovations to buildings after the passage of Hurricanes Ivan and Emily, and the construction of new buildings over the last ten years, it is imperative that a comprehensive revaluation exercise be conducted. This was so ordered by the Minister of Finance to the Chief Valuation Officer in accordance with Section 20 of the Act. The Valuation Division has trained over 16 persons in Carriacou for the purpose of carrying out the survey. The Field Operatives were supervised by officers of the Valuation Division of the Ministry of Finance. The Surveyors were instructed to collect all information relevant to all properties, including accurate

“... the engine room of the Public Service...”

Continues on pg. 16

Finance 15 INSIDE

Continued from pg. 15

names, postal addresses of the property owners and also photographs of all buildings. The timeframe for the survey on the island was three (3) months. CORPORATE STRATEGIC BUSINESS PLANNING From Tuesday July 15 – Thursday July 17, 2008 the Ministry of Finance conducted a three-day workshop on Corporate Strategic Business Planning, at the Grenada National Stadium.

Over 20 persons representing all departments of the Ministry of Finance participated in this workshop. It is envisaged that revenue administration will be strengthened through this technical assistance that is being provided by CARTAC.

WTO Trade Facilitation Self-Assessment of Needs and Priorities From Monday July 21 – Friday July 25, 2008, the Ministry of Finance hosted a World Trade Organisation (WTO) National Self-Assessment of Needs and Priorities on Trade Facilitation at the Grenada Grand Beach Resort in St. George's. The main purpose of this self-assessment was to assist Grenada in negotiating more effectively in the WTO trade facilitation negotiations.

Section of Staff at workshop

This workshop was a direct result of a request, made by the Grenada authorities to CARTAC, for technical assistance aimed at improving the effectiveness of the two major tax

Cross Section of Staff at workshop

Section of Staff at workshop

departments – Inland Revenue Department (IRD) and Customs and Excise Department. The main objectives of the workshop were: ! To develop strategic thinking and planning skills; and ! To develop a general knowledge of how to develop a strategic plan. The workshop was facilitated by CARTAC Experts: Ms. Ruby Howard and Mr. Stewart Scott and covered the following elements: ! Strategic thinking ! Strategic planning ! Components of a Strategic Plan ! Strategic Goals ! Strategic Objectives ! Measurable Outputs

As part of the Doha Development Agenda in the WTO, members are negotiating new commitments in the area of trade facilitation. The negotiations aim to further expedite the movement, release and clearance of goods, including goods in transit as well as enhance technical assistance and support for capacity building in this area. Grenada is taking part in these negotiations with the aim of helping Grenada's traders and small and medium enterprises to have, for example, better access to the trade laws and regulations of their trading partners in a more predictable and transparent manner as well as to have their goods expedited and cleared through simple customs and border procedures. Recognising that Grenada requires technical assistance to implement obligations in this area, the WTO agreed to conduct the National Trade Facilitation Needs Assessment to look at Grenada's current situation and determine actions needed to be taken to meet the obligations that will be undertaken. The assessment provided detailed information on technical assistance requirements of recipient countries and provided a valuable basis for the eventual implementation of any results of the negotiations. ECCB MONETARY COUNCIL MEETING When the Monetary Council of the Eastern Caribbean Central Bank (ECCB) held its 62nd meeting in Antigua on 18 July 2008, a special welcome was extended to the newly elected Minister Continues on pg. 17

16 Finance INSIDE

“... the engine room of the Public Service...”

Continued from pg. 16

of Finance of Grenada, the Hon. Nazim Burke, who was attending his first meeting of the Council following the recent change of Government in Grenada. He was accompanied by the Permanent Secretary, Mr. Timothy Antoine. Under the chairmanship of Dr. the Hon. Errol Cort, Minister of Finance Antigua and Barbuda, the Council received the Governor's report and was appraised of the recent monetary and credit conditions in the ECCU as well as policy issues which are of critical importance at the this time. Included in the discussions were issues pertaining to: ! The stability of the financial sector; ! The regulation and supervision of Credit Unions in the ECCU; ! Inflation issues; ! Domestic fiscal conditions; ! Statistical support for policy formulation; and ! Pension and pension administration reform. Speaking of the meeting, Minister Burke said: “For us, it was a very significant meeting. Aside from the very warm and gracious welcome extended to us by Council members, we were most satisfied by the broad range of central issues examined and the quality and depth of the interventions. We have no doubt that Grenada benefits greatly from these proceedings and stands to benefit even more from the recommendations made and decisions taken at that meeting.” GRENADA GOVERNMENT AND ECCB MONETARY COUNCIL AGREE ON WAY FORWARD ON COST OF LIVING

The Grenada government has restated its commitment to taking steps to reduce the high cost of living, in agreement with the recommendations of the Monetary Council of the Eastern Caribbean Central Bank (ECCB). The council at its recent meeting in Antigua Barbuda, called on Member States to formulate and implement a more targeted social protection intervention which would shield the vulnerable groups from elevated food and energy prices but protect the recent fiscal gains. According to the communiqué from the meeting, the Council welcomed the newly elected Minister of Finance of Grenada, the Honourable Nazim Burke who was attending his first meeting of the Council following the recent change of government in that country. Finance Minister Burke says the Grenada government is aware that the high cost of living is “one of the most worrying and unbearable issues confronting Grenadians” suggesting that if the trend continues those who cannot afford the basic necessities of life may resort to “anti social behaviour”. “Our plan include several measures which we have outlined before. We have made a promise to support the search for less expensive sources of imports, to initiate an emergency agricultural food production support programme designed to increase domestic food production among other measures”, the Finance Minister said.

He said the government is working toward a reduction in import duties and levies on “a basket of essential goods” to make them more accessible to the poor and disadvantaged. “I think Grenadians understand that things will not happen overnight, but there are some things that we want to tackle immediately. One of them is the removal of the National Reconstruction Levy (NRL) to return this money into the hands of workers, the second is our free school books programme which means parents pockets will get some relief,” he said. The ECCB Monetary Council said the primary source of the recent surge in inflationary pressures was high oil and other commodity prices, and that these were expected to remain elevated over the medium term. The Council supported the view that there was a need to fine-tune the short-term measures and to place more emphasis on policy responses which would address supply and structural factors, cognizant of the need for member governments to balance social and fiscal responsibilities. It also recommended the urgent development and implementation of regional energy and agricultural policies with the objective of making the region more resilient to adverse international price shocks. It suggested the implementation of effective public education programmes to help households in mitigating some of the adverse effects of the elevated inflationary pressures on their budgets. MINISTRY OF FINANCE TEAM MAKES PRESENTATION TO CABINET A team from the Ministry of Finance, including the Permanent Secretary, Timothy Antoine and Deputy Accountant General Garvin Roberts, made a presentation to Cabinet on Monday July 21, 2008 on the state of the Government finances. The presentation included: ! An overview of Government's fiscal and financial operations for the first six months of 2008; ! An assessment of prospects for the second half of the year; and ! The presentation of some key recommendations. The newly installed administration is committed to sound economic management and expects regular updates from the Ministry of Finance on the country's economic and fiscal performance. “We committed to the people of Grenada to bring proper management to the country's finances and we want to ensure we are kept abreast of the nation's finances each step of the way,” said Prime Minister Hon. Tillman Thomas. The Cabinet is expected to use this information to guide its decisions until it presents the 2009 Budget. Prime Minister Thomas said that closely monitoring the performance of Grenada's economy is critical at this time as the government settles down to business. Continues on pg. 18

“... the engine room of the Public Service...”

Finance 17 INSIDE

Continued from pg. 17

REGIONAL TRAINING WORKSHOP IN BASIC STATISTICS The Government of Grenada, in conjunction with the CARICOM Secretariat, held a Regional Training Workshop in Basic Statistics for Statisticians and Civil Registrars, at the Coyaba Beach Resort in St. George's, from July 28th-August 1st, 2008. This training was aimed at improving the quality and comparability of mortality and fertility statistics in Member States. The decision to have this workshop was based on recommendations made in the plan of action for continuous strengthening of civil registration and vital statistics.

The Minister pledged his strong support for the division and promised to ensure that all systems are put in place for the proper functioning of the division. MINISTERS MEET WITH BOARD OF GCIC As part of the transition process of the new administration, Minister of Finance, Planning, Economy, Foreign Trade, Energy and Cooperatives, Mr. Nazim Burke, together with Minister of State, Mr. Michael Church and other senior officials of the Ministry, held discussions with the Board of Directors of the Grenada Chamber of Industry and Commerce, on Thursday July 31, 2008.

The workshop had participants from St. Kitts, St. Vincent and the Grenadines, the CARICOM Secretariat, and host country Grenada. The participants from Grenada include representatives from the Central Statistical Office and the Ministry of Health. Apart from developing important statistical skills, it is hoped that the training will also continue to foster and strengthen the relationship between the Central Statistical Office and the Ministry of Health. MINISTER MEETS WITH STAFF OF COOPERATIVES DIVISION With Cooperatives now being part of the mandate of the Ministry of Finance, the Minister, Hon. Nazim Burke, together with the Minister of State Hon. Michael Church, and Permanent Secretary, Mr. Timothy Antoine, met with the staff of the division, on Friday July 25, to discuss their current situation and the way forward for the division.

Cooperatives Division staff at meeting

The Unit is responsible for the supervision of non-financial cooperatives of which there are approximately Sixty-five (65) cooperatives currently registered, with just over half of them active. Discussions centered on the regulatory framework for the operations of the division, which was revised with the establishment of the Grenada Authority for the Regulation Financial Institutions (GARFIN), and on the development needs of producer and service cooperatives and the technical capacity needs of the division.

Minister Burke, Minister Church, Senior Official of the Ministry meets with the Board of Directors of the GCIC

The discussions centered on the role of Government in private sector development and touched on a number of issues including: ! The Public Sector – Private Sector Partnership for Development; ! Improving the current investment climate/doing business climate in the country; ! Identifying and promoting the lead sector(s) in the economy; ! Tax reform; ! The regulation of the financial sector; ! Grenada's energy policy; ! The status of major private sector projects; ! Private sector institutional strengthening; According to Minister Burke, “Government's role is to create the enabling environment for business development through partnership with the private sector which must play the leading role in the economic process.” Minister Burke informed the GCIC of the work in progress to restructure and strengthen the capacity of the ministry to improve its effectiveness and to facilitate the undertaking of its new responsibilities. This includes the establishment of a Business Development Division within the Ministry. The GCIC representatives pledged their support for undertakings of the Ministry/Government and expressed their willingness to ensure that the partnership arrangement works to the advantage of the country. Continues on pg. 19

18 Finance INSIDE

“... the engine room of the Public Service...”


Ms. Jocelyn Paul, Chief Project Officer, and Mr. Junior Mahon, Trade Officer, attended a symposium on “Aid for Trade in the Caribbean-Making it a Reality” in Jamaica from June 16 – 17, 2008. The symposium was aimed at creating a Plan of Action and Strategy for the Caribbean with respect t the Region's engagement in the Aid for Trade initiative. Among the objectives of the Aid for Trade initiative is that of increasing developing country ownership of Aid for Trade Agenda; shifting the emphasis to implementation of specific priorities; and launching a work programme to effectively measure the impact of funds delivered.

Mrs. Margaret Frame and Ms. Caren Richards attended a Regional Workshop on Export-Import Price Indices (XMPI), from July 21-25, 2008 in St. Lucia. The workshop trained officials from the Central Statistical Office in the theory and practice of XMPI compilation, based on the principles and guidelines set out

Mrs. Daura Bhola-St. Bernard of the Budget and Debt Unit, attended the Debt Management Forum hosted by the Commonwealth Secretariat in London from June 26 – 27, 2008. At the meeting the participants discussed issues regarding various aspects of the CS-DRMS software including: Emerging areas for advisory support in sovereign debt management; Ms. Caren Richards and Mrs. Margaret Frame

in the Revised XMPI Manual. The workshop consisted of a series of lectures and practical sessions encompassing: the price and volume of foreign trade; the XMPI in the Systems of National Accounts; price concepts; index number theory and methodology; sample design; survey methods for goods and services; XMPI calculations; and XMPI compilation issues. Ms. Patricia Antoine - Clyne, Accountant General, attended the Association of Government's Accountant's (AGA's) Annual Professional Development Conference and Exposition (PDC) in

Mrs. Daura Bhola-St. Bernard

improving debt data quality, recording and reporting through CS-DRMS; capacity building in debt management; developing a strategic partnership for debt management within the Commonwealth and between international agencies; and a proposal to establish a Commonwealth network of debt management. The Commonwealth Secretariat has been providing debt management, related training and advisory services to member countries since 1985. The Secretariat's aim is to further increase the level of interaction among their user community in the commonwealth countries, which would result in improvement in the quality of debt recording and management in the respective countries. Mr. Timothy Antoine, Permanent Secretary, and Dr. Patrick Antoine, Strategic Trade Policy Advisor, attended the 3rd Joint Ministerial Meeting of the Council for Trade and Economic Development (COTED) and the Council for Finance and Planning (COFAB), from June 28 - 30, 2008 in Antigua. The meeting was convened by the CARICOM Secretariat in fulfillment with the decision taken at the Twenty Second Meeting of the Community Council of Ministers in Guyana on 6 June 2008. The meeting examined a number of issues with respect to the completion of arrangements for the early start-up of the CARICOM Development Fund.

Ms. Patricia Antoine - Clyne

Atlanta from July 27-30, 2008. The conference convened government financial managers and accountability professionals from around the world for three and a half days of knowledge building and networking. Participants benefited from informative sessions, publications and the latest financial levels of government. The sessions were aimed at improving their skills to bring greater efficiency and effectiveness to government operations. Ms. Shanta Cox, Trade Officer, attended the CARICOM meeting to address Priority Constraints Facing Small and Medium

“... the engine room of the Public Service...”

Continues on pg. 20

Finance 19 INSIDE


Enterprises in the Caribbean, in St. Lucia from June 25-27, 2008. The meeting was convened in conjunction with the Government of Japan, through its CARICOM Friendship and Cooperation Fund, with the aim of continuing the process towards implementing an Action Plan which was developed in the first roundtable session of this grouping. The meeting

Mr. Junior Mahon, Trade Officer, Ministry of Finance and Mr. Oliver Joseph, Permanent Secretary of the Ministry of Foreign Affairs, attended the OECS Trade Review Compliance Seminar in

Mr. Junior Mahon Ms. Shanta Cox

focused on five priority areas identified as critical for the growth and development of the Regional SME sector whilst bearing in mind the context of the CARICOM Single Market and Economy (CSME). The priority areas are: Funding and Financing; Policy, Legislation and Regulatory Framework; Institutional Capacity Building; E-Commerce Marketing; and Export Development. Mr. David Seales, Assistant Valuation Officer, and Rhonda Jones, Senior Tax Inspector of the IRD, represented Grenada at the 20th Caribbean Organisation of Tax Administrators (COTA) General Assembly and Technical Conference in Belize. The meeting, which ran from July 21-24, 2008, focussed its discussions on the region's tax administration strategies.

St. Lucia from July 28-29, 2008. The seminar was convened by the OECS in collaboration with the Commonwealth Secretariat to review the matters raised in the last policy review of the OECSWTO members which flagged certain areas in which Member States have not yet fully implemented their WTO commitments. The workshop was therefore aimed at creating a Plan of Action for implementation of the policy and legislation reform required to meet WTO commitments. It also provided the Trade Officials an opportunity to be updated on negotiations in the WTO, and to discuss the way forward for the OECS in the negotiation.

Ms. Tamika George, of the Statistics Department, attended the Third Regional Workshop on Demographic Analysis in Trinidad and Tobago from June 2-July 18, 2008. The training was aimed at building capacity in data collection and the processing of key social and demographic indicators such as life expectancy, fertility rate, population estimates and clarification on the cause of death. This training is consistent with CARICOM's initiative to build capacity at the regional level over a period of four years, in response to the country's request for this type of training.

Ms. Rhonda Jones and Mr. David Seales

Countries represented at the conference included Anguilla, Bahamas, Barbados, St. Kitts and Nevis, St. Lucia, Jamaica, Haiti, and Trinidad and Tobago among others. They were joined by representatives from the Caribbean Regional Technical Assistance Centre (CARTAC), the Caribbean Regional Negotiating Machinery (CRNM), and the International Bureau of Fiscal Documentation (IBFD). The conclusions which emerged from the conference will be used as a platform for the region's tax systems and tax administration.

Ms. Tamika George

Welcome to all new staff who recently joined the Ministry of Finance, Planning, Economy, Energy, Foreign Trade & Cooperatives Ministry of Finance, Planning, Economy, Energy, Foreign Trade & Cooperatives Financial Complex, Carenage, St. George’s Tel.: 440-2731-34, 435-0057; Fax: 440-4115; Website:; Email: Contact: Petra Joseph, Editor-in-Chief, 440-2731, ext.: 1108/435-0057 Designed and printed by Government Printery

Inside Finance - Volume 4, Issue 4, June - July 2008  

Ministry of Finance, Planning, Economy, Energy, Foreign Trade & Cooperatives

Inside Finance - Volume 4, Issue 4, June - July 2008  

Ministry of Finance, Planning, Economy, Energy, Foreign Trade & Cooperatives