Inside Finance - Volume 5, Issue 5, September - October 2009

Finance INSIDE

GRENADA

Volume 5, Issue 5, September - October 2009

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

NDOUS E M E R T S E V I CE UNION GRENADA RE N A E P O R U E egation for the HE T M O da as Head of Del R na F re G d S te si pean E vi S z I ia PRA ) of the 10 Euro mbassador D

VAT IS COMING February 1st 2010

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good example e… I think it is a pl m xa E of nd ki n but is able to “Grenada is a all administratio sm ry ve a ith w y of a countr ntly.” funds very efficie manage the EDF evelopment Fund ed by European D the European ho ec ds or w e th e o Diaz of These wer or Mr. Valerinan nada.

(EDF) Ambassad dos, during his recent visit to Gre ba ar Commission in B

CDB BOARD

A TR -Term Review (M agreed in conduct of a Mid ntry Strategy ou C F) D (E nd io Review Fu ol t rtf en Po Developm Country a of t uc nd co e th ory Panel December 2008; ch of the Non State Actors Advis un la (CPR); and the 5 Continues on pg (NSAAP).

APPLAUDS G

The Governmen t of Grenada w Development as applauded by Bank (CDB) the Caribbean preparation of project submis board of Directors for it sions to the Boa s 2009 sitting. rd for its Octob er At its 238 th mee ting in Barbado approved three (3) loans for th s in October 2009, The CDB e Government of Grenada.

RENADA

A policy based loan of macroeconom was approved for the supp ort a programm ic reforms that e is intended to: (a) Strengthen the institutiona l framework management; for economic (b) Consolidat e and streamlin e revenue system s; (c) Strengthen financial manag ement in the pu blic sector; Continues on pg

7

S ATION T L U along with the S N O C from Grenada, T am E Te t G ge D ud ere present B U embers of the tinique Affairs w 2010 B

get for the 2010 Bud g in ar ep pr tly curren Government is iament in December 2009. rl Pa to n tio presenta held with tations is being ul ns co of es ri a se nstituency basis.

In this regard, ral public on a co ne ge e th of rs membe th ay October 30 id Fr on e ac pl ok arriacou and consultations to Hillsborough, C .

The first of such in e tr en C se po tipur Petite Martinique 2009 at the Mul of Carriacou and le op pe e th ed target

M Mar riacou & Petite Minister for Car n. at the consultatio

expected, ic was less than bl pu e th om fr . ipation Although partic scussions was of a high standard di e th of the quality rliament in presented to Pa be to ed ct pe t is ex The 2010 Budge .

10 20 y Januar

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

Editor's Remarks

SUCCESS How do you define Success?

According to Steve Olson (steve – olson.com), for starters, success for you may not necessarily be success for me. Whereas success for you may be looking in the mirror and liking what you see, success for me may be finding out what my talents are and applying them accordingly.

Wikipedia defines success as: • a level of social status • achievement of an objective/goal • the opposite of failure Similarly, the Free Online Dictionary defines success as: • The achievement of something desired, planned, or attempted • The gaining of fame or prosperity • The extent of such gain.

Inherent in these definitions are the aspects of achievement and gain; of reaching a certain level or status that has been established by oneself; and a means of measurement.

Looking through many articles on success, I realized that success means so many different things to different persons but in as a summation, it can de described as an opinion of ones accomplished goals.

Here are some of the things I found as it relates to the meaning of success to people: • Success is just being HAPPY!!!..that's all..even if you don't have a lot as long as you are happy.

• Success is a decision.

• Everyday is a success if we see the POSITIVE side of life.

• Waking up in the morning is a success, having friends with you is a success, if someone gives you a smile then and makes your day happy then it's a success, and even our failures are part of our success because through those challenges, we learn and get molded to become a better us.

• Success is founding a multi-million dollar business.

• Success is saving an old tree for other generations to see.

• Success is making something for others down the line.

So again, what is your definition of success? How do you know when you have succeeded or not? Have you determined how you would judge if you have succeeded?

It must be by clear now that before you can achieve success, you need to define what success means to you. Or in other words, unless you have a clear vision of what success is to you, you cannot work towards it.

Earl Nightingale states it so clearly. He says, "People with goals succeed because they know where they are going... It's as simple as that- in other words, clarity is power and the successful person is like any other person, they just have laser-like focus.”

success you need to dig deep within yourself and question your values in life. What are your strengths and weaknesses? What are the things that are important to you? By answering these questions you can then come closer to your own definition of success. You must however be aware that this can be a long process. You may not get the answers so quickly. But it is alright, since success is really a journey. It has multiple peaks and not one ultimate pinnacle. One success builds on another. Setbacks and mistake will happen but they also help you build success.

As a guide here are six steps I found for identifying What Success Looks Like for You. They were developed by an individual called Napoleon Hill.

1. Identify your purpose. We are all here for a reason, to serve some purpose. Look within yourself and think about that thing(s) that inspires you. Think about that thing that if you don't surrender to, it will continue to nag and gnaw at your conscious and make you miserable because you keep resisting it.

2. Determine WHY you want what you want. You need a strong enough reason to push you to success because your drive, passion and persistence is what will get you through the obstacles, challenges and hurdles that you will surely confront along the way.

Experts say, 80% of Success is WHY and 20% is HOW. 3. Document your Vision! Denis Waitley reminds us that “The secret to productive goal setting is in establishing clearly defined goals, writing them down and then focusing on them several times a day with words, pictures and emotions as if we've already achieved them." Remember a goal that is not written down is a wish!

4. Contemplate your self as having, being and doing exactly what you want to have, be and do. Make a mental blueprint of your success.

Visualize it! See it! Feel it! Believe in it!

5. Find a role model. Someone who is already successful doing that thing that you want to do. Studying how they achieved their success will help to accelerate yours.

6. Take action! We can have all the best intentions, but your real power and success, will come from consistent action taken daily against the documented goals that you have set for yourself. Without action, you could have the hottest idea and the tightest business plan and you would still fail. However, a “so what who cares" idea and an inadequate business plan often produces success when accompanied by sufficient action.

Generally, it is believed that you know you have achieved success when you reach the end of your life and you have no regrets, no qualms or grudges. In psychology they refer to this as "ego integrity." I can probably safely say that all of us, in one form or fashion, consciously or unconsciously, work towards this sort of end.

So, think hard about your own definition of success and start on you path to success.

“Do not wait; the time will never be 'just right'. Start where you stand, and work with whatever tools you may have at your command, and better tools will be found as you go along.” (Napoleon Hill).

So how do you go about defining success?

According to one school of thinking, to find your own definition of

2 Finance INSIDE

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

Petra

This theme is in keeping with the ultimate objective of the Financial Information Month initiative, which is to empower all persons to make the types of investment and spending choices that will allow each individual to build wealth, become financially secure and retire in comfort.

This year, the ECCB has taken it a step further in developing a logo to further enhance the theme.

The logo portrays a royal blue piggy bank promoting the following concepts: •

regular savings

•

prudent spending guided by a savings plan, and

•

investing for the future.

Royal blue which is synonymous with hope, willpower and strength, represents the financial success available to everyone that adheres to the aforementioned principles.

Hon. V. Nazim Burke DECLARATION ADDRESS BY HON. MINISTER OF FINANCE LAUNCH OF “FINANCIAL INFORMATION MONTH” – OCTOBER 2009 Fellow Grenadians, I am once again delighted to greet you in my capacity as Minister of Finance, on the occasion of the celebration of Financial Information Month.

Being mindful that the public needs information and resources to handle their personal finances and make right decisions, the ECCB has since 2001 been partnering with financial institutions, the media, private and public sector institutions and community groups to promote a regional financial education campaign.

The celebration of October as Financial Information Month is now a permanent feature on the official calendar of the Eastern Caribbean Central Bank member countries.

It is a month in which special focus is placed on improving the public's understanding of financial and economic issues.

The theme this year, “Save and Invest Today…Enjoy Tomorrow” seeks to emphasise savings, wise investments and long-term financial planning as key concepts to building a secure future.

As is usual, a number of initiatives have been planned, locally and regionally to celebrate this very important month, on the community level and in schools Some of the local initiatives include:Various television and radio programmes on financial issues; 1. Various television and radio programmes on financial issues; 2. Discussions with community groups and business institutions by representatives from financial intuitions; 3. Active participation by representatives from financial intuitions in church services; 4. Visits to Primary and Secondary Schools by representatives from financial institutions, to hold discussions on savings, wise use of money, budgeting, financial planning and entrepreneurship; 5. Presentations at Parents-Teachers Meetings, recognising the fact that teachers and parents can benefit significantly by learning how to make smart spending, saving and investment decisions; and 6. Daily tips on money management and investing.

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Continued from pg. 3

Of significance this year is the fact the ECCB local office and its partners has, for the second year, organised a Financial Fair which will be open to the general public, and in particular the schools. This year, the fair will be held at the Grenada National Stadium on October 16th. I encourage everyone to participate in this great initiative.

It is further hoped that promotion of the activities will serve as a springboard for ongoing financial programmes in our communities so that ultimately all ECCU citizens and residents can reap the benefits of greater access to information designed to improve their money management practices.

Another exciting event this year will be a mini financial fair, with give-aways at the St. Mark's Food Festival on October 31st. Take your families along and encourage your friends to do the same. There will be a lot to gain from the experience.

I encourage everyone to participate in the programmes and make good use of the opportunities to learn how to equip oneself to make appropriate financial decisions.

Today, the economic and financial crisis, which has affected the international community, serves as a stark reminder of the need to manage money and to make wise spending and investment decisions

And remember, that although October is officially designated Financial Literacy Month, we must seek to continue these efforts beyond the month, if we really want to have a sound financial future.

It is with great pleasure that I declare the start of Financial Information Month 2009.

These planned activities are expected to stimulate healthy money management practices which will in turn help us to make the right decisions.

TRANSITIONAL BONDED WAREHOUSES Special Features:

In an effort to minimize the occurrence of double taxation on prices during the transition from the General Consumption Tax (GCT) to the Value Added Tax (VAT), the Customs & Excise Division is offering the “Transitional Bonded Warehouse” facility to importers as a means of suspending the payment of duties and taxes until a request is made for the release of the goods.

The duration of this arrangement is for four (4) months, that is, from November 1, 2009 – March 1, 2010.

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•

No annual License Fees

•

No securities in the form of Bank Bonds

•

Adequate insurance must be in place to secure against loss

•

Premises must be a secured area approved by the Comptroller of Customs

•

Warehouses will be double-locked

•

Importers may group themselves and share a facility with the approval of the Comptroller of Customs

For further information please contact the Customs & Excise Division: Phone: 1-473-440-2239/2240, Fax: 1-473-440-5038; Email: gdcustoms@spiceisle.com

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

Grenada receives Tremendous Praises from The European Union Continued from pg1 The MTR was undertaken within the context of the present downturn in the global economy, which has left small open economies such as Grenada even more vulnerable to the most severe economic challenges.

The objectives of the MTR were to reflect on developments in the country brought about by internal, regional or international events and therefore present the possibility for a change in priorities. The MTR served to enhance policy coherence and joint programming with the EU member states, mainstream aid effectiveness and review governance issues in light of the commitments undertaken by the Government under the 10th EDF. The CPR looked at the most critical programmes and projects that are being funded by the EDF. These include the 9EDF General Budget Support programme; the Schools Rehabilitation Project (rehabilitation of nineteen (19) schools); and the Southern Grenada Water Supply. Discussions were also held on the preparation for the 10th EDF programme.

The CPR is an annual exercise where the Government of Grenada and the European Commission/European Union (represented by the Delegation in Barbados) jointly review the progress and status of EU funded projects and programmes.

Other EU funded programmes/projects in Grenada include improvements in irrigation and farm roads and the development of a Virtual Business Incubator for promoting e-commerce.

The concept of the NSAAP is enshrined in the Cotonou Agreement between the European Union (EU) and the African, Caribbean and Pacific (ACP) states regarding aid, trade and political cooperation.

The idea is to have a panel that represents all non-government sectors such as non- governmental rganisations (NGOs), community based organizations (CBOs), trade unions, civil society organisations, womens' groups, private sector organisations like chambers of commerce, and the like. This panel would be available for dialogue with their government and may play a consultative role in setting their nation's development priorities, strategies and programmes for channeling EU aid. This arrangement seeks to promote participation by stakeholders who can lobby for programmes that meet the needs of their constituencies. In some instances non state actors are also involved in implementing programmes funded by the EU, for example, Jamaica's Integrated Drug Abuse Prevention Programme was implemented through a partnership between government and non state actors. In some OECS islands, like Dominica, there are vibrant NSA Panels while in others they are in a fledgling stage.

Grenada's NSAAP was formally launched by the National Authorizing Officer, Hon. Minister Nazim Burke, at the

Launch Ceremony on Monday 12th October, 2009. The National Authorizing Officer is the designated person for negotiating all financing agreements for donor funding from the EU. The members of the panel are: • Ms. Judy Williams – Chairperson • Mr. Trevor Xavier • Mrs. Merlyn Lord • Mr. Ian Da Breo • Ms. Pancy Cross • Rev. Osbert James • Ms. Ann Williams • Mr. Evans Gooding • Ms. Hillary Gabriel • Ms. Elaine Henry Mc Queen • Mr. Cecil Edwards • Mr. Mykie Munroe • Ms. Martha Bowen • Ms. Yvonne Gellineau-Simon • Ms. Lucia Livingston Andall In speaking at the launch of the NSAAP, which was attended by a cross section of stakeholders, Ambassador Diaz was high in praise for Grenada's administration of the fund. He said: “The administration of the Ministry of Finance here in Grenada is a kind of novel, its small but they are efficient and they are not going to allow the loss of a single penny.”

He further praised Grenada, explaining that last year, Grenada was the only country in the Caribbean that was able to get to the end of the 10th review of the 9th EDF and as a result will benefit in the form of 10 million Euros or EC$35 million. This he explained was largely due to Grenada's public finance management and the quality of the report that was prepared on Grenada's behalf.

He went on to speak of the impact that the present projects should have on the quality of life for Grenadians stating that the main aim is to uplift the standard of living for all especially the poor and vulnerable. He explained that although some of the projects got off to a difficult start and encountered a few minor problems, they are now progressing smoothly.

“Grenada”, he said, “should be comforted and proud that its administration is so strong.”

Within the current on-going budget support programmes – Stabex FMO supporting the National Policy and Strategy for modernization of the agricultural sector and 9th EDF Poverty Reduction through private sector development, employment and growth programme – there is a potential for 5.4 million EUR disbursements by the end of 2009 and 5.7 million EUR in 2010-2011.

Both the MTR and the CPR were opened to participation from the relevant ministries, agencies and project implementation units, as well as the Non-State Actors.

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1. Customs: The need to update technology and strengthen the riskmanagement capacity in order to reduce processing time for imports and exports In order to accomplish this, the staff of the customs would need specific technical training on VAT, customs valuation, control techniques, customer service and the use of IT. 2. Tax Administration: Like the Customs Department, the Inland Revenue Department was challenged to prepare for the introduction of VAT. It was recognized that there was the urgent need to improve taxpayer registration and compliance, as well as upgrade information systems within the tax administration department and create some capacity for tax policy planning.

Speaking Notes For The Hon. Nazim Burke On The Occasion of The Launch of The

GRENADA TECHNICAL ASSISTANCE PROJECT (GTAC)

3. Export Sector: Using the findings of the Commonwealth Secretariat and ITC supported Export Sector Strategy, it was recognized that the Export Sector had a critical role to play in driving growth and facilitating development.

4. The Industrial Development Corporation (IDC) It was acknowledged that the IDC needed to become a modern investment promotion agency with enhanced capacity to attract investments into Grenada.

Ladies and gentlemen, let me first express how pleased I am that today's launch is taking place.

The World Bank agreed to provide technical and other assistance to support reforms in these four areas and this formed part of the Bank's Country Assistance Strategy (CAS) for the OECS discussed by the World Bank Board meeting of September 2005.

Some of you would know that the Grenada Technical Assistance Project, GTAC, was conceptualized in post-hurricane Grenada.

As is also well known, the European Union came on board as a co-sponsor of GTAC.

Context for GTAC The context for this project was the Medium-term economic reform programme of 2006, and the need on the part of Government of Grenada at that time to undertake strategic reforms aimed at addressing weaknesses identified by the Growth and Competitiveness study for the sub-region of the OECS. This was conducted under the theme, OECS: Towards a New Agenda for Growth. In committing to support this project the World Bank agreed with the analysis in the then completed Export Sector Strategy, that Grenada was underperforming in some traditional sectors where international demand had been growing, but exports from Grenada were lagging.

Implementation Gridlock As with a number of other projects the walk did not follow the talk after the initial burst of optimism. Key administrative steps at the local level simply did not happen. The Steering Committee and Technical Committees to take this project forward were not put in place. The Project Manager was not appointed. In the case of the Export Sector Strategy the Export Council was not selected. It was not altogether strange, therefore, that the external sponsors of this project became restless and the people of Grenada stood to lose more than 2 million dollars at a time when this kind of donor assistance was becoming extremely scarce in the world.

In that scenario, it was recognized that in order for economic growth and development to happen the Private Sector was expected to play an enhanced role and as a consequence Government was expected to create a policy environment conducive to Private Sector investment.

Ladies and gentlemen, I am proud to say that the new NDC administration spared little effort in correcting this situation.

The Cabinet put together a Steering Committee within a few months of the change in government. The Project Manager was appointed using World Bank/EU procurement standards and the four Technical Committees are now in place and functioning.

On Tuesday 20th October 2009

It is now well known that the key strategic areas of reform emerged to be the following:

Let me emphasize that our support for GTAC is consistent with the fact that we have embraced competitiveness and efficiency Continues on pg 5

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Continued from pg 6

as an ideology. The commitment to redesign the business facilitation architecture was made in our manifesto. The seriousness of our commitment is borne out in such recent legislation like the New Investment Act, the Corporate Affairs and Intellectual Property Act and the Lands and Deeds Act. In addition we expect to work with the World Bank to configure and implement Action Plans for Business Start-ups and CrossBorder Trade within the next few weeks. We know and we understand, however, that the successful implementation of these reforms requires resources and we are grateful to the World Bank and the EU for providing us with some of them. We must make sure that optimum use is made of these valuable resources.

How will this project Impact the lives of ordinary people?

When projects like these are undertaken a good way to evaluate their usefulness and relevance is to ask the question, how will their implementation impact the lives of the citizens of this country? What are some of the projected indicators and targets?

In the case of the current project let me emphasize and restate the following: · at the level of the customs the reduction of the time taken to import and export goods · At the level of Inland Revenue, an improved tax administration process with better customer service

Answer to Puzzle on pg 14

Down 1. Retire 2. Tax

3. Check 5. Assets 6. Debt

· · ·

·

and improved tax collection mechanisms Reduction in time taken to start a business in Grenada Increased business support to small and medium enterprises Enhanced ability to attract Foreign Direct Investment to Grenada, bringing increased job opportunities, foreign exchange generation and increased capital formation Improved access to trade information, export markets and cross-border trade

These are some of the more salient outcomes of this venture. We must work to ensure that they do not simply remain objectives on paper, but manageable measurable objectives. I take the opportunity of asking present to identify with the project and claim it as your own.

I want to express my appreciation to those of you who are already organically involved in the administration of the project.

Keep working smart and be creative in your work.

Finally, heartfelt thanks to the World Bank and European Union for the continued partnership in development.

May this project succeed and be blessed.

Across 3. Currency 4. Earnings

7. Deductible 8. Bonds

CDB BOARD APPLAUDS GRENADA Continued from pg 1 (d) Improve the investment climate; and (e) Enhance the framework for sustainable poverty reduction.

Ministry of Education and Human Resource Devbelopment in collaboration with the Project Coordination Unit (PCU) under the Ministry of Finance.

This loan will be disbursed in two (2) equal tranche of US$6.4 million dollars based on agreed benchmarks.

The TA loan will finance the design and rehabilitation works for two sections of the road network in the parish of St. Patricks.

An education loan of US$15million was approved for:

The first section is approximately 8 kilometres (km), starting in Duquesne and ending in Sauteurs. This section of road provides access to many of the existing and proposed tourism and recreational sites.

a) building and civil works (rehabilitation) at four schools: Grenada Seventh Day Adventist Comprehensive, Grenville Secondary School, St. Joseph Convent St. George's and Vendomme Roman Catholic Primary School; b) Provision of furniture, equipment and learning materials at the project schools; and c) Improving of the efficacy of basic education through curriculum refocusing, teacher development and school transformation.

With respect to the school's rehabilitation component of the education loan the project will be undertaken in the context of a wider Education Reform Programme implemented by the

The second section is approximately 8 km, spanning between Mt. Fendue and Belmont Road.

According to the CDB Board, Grenada must be commended for its swiftness in the preparation of the submissions having only formally requested CDB's assistance towards the financing of the projects in June 2009. The effort that was put into the preparation speaks volumes of the administration's commitment to the development of the country and its people.

Grenada's representative on the board is Mr. Mervin Haynes of the Ministry of Finance.

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STATEMENT BY HON. V. NAZIM BURKE, MINISTER OF FINANCE, PLANNING, ECONOMY, ENERGY AND COOPERATIVES AT PRESS CONFERENCE, OCTOBER 13, 2009 Members of the Media, good morning and thank you all for coming.

This morning, I wish to update the Grenadian people on two issues: (i)

IMF/World Bank Annual Meetings; and

(ii)

Preparation for Value Added Tax (VAT)

I. IMF/World Bank Annual Meetings As you know, we have just returned from the Annual Meetings of the IMF and World Bank which were held in Istanbul, Turkey this year. While there, we participated in several important meetings. I propose to highlight the conclusions of some of these meetings but before let me start with a word of the global economy.

Addressing the opening session of the Meetings, this is what Dominique Strauss-Khan, IMF Managing Director had to say and I quote” “I think we have turned the corner. Financial conditions have improved substantially and the growth engine seems to be starting up again. Our latest projections suggest that global economic activity will expand by about 3 percent in 2010, after contracting by 1 percent in 2009. …The crisis is far from over. The recovery will be sluggish, and private demand is not yet self-sustaining. …Rising unemployment is likely to cast a long shadow.

Even as growth recovers, it will take some time for jobs to follow suit. Indeed, unemployment will continue rising in many countries through 2010” end of quote.

The implications for Grenada are as we discussed at the end of September when the IMF presented its assessment of Grenada's economy. Grenada should expect to see some economic recovery in the second half of 2010. However, this recovery will be slow and will gather steam in 2011.

As a consequence, we expect a marginal improvement in stay-over tourism. Remittances have proven to be fairly resilient and should increase as the job situation in the USA improves.

For Government's part, we are continuing to pursue some key private sector projects to address the important issue of job creation. During our time in Istanbul, we held discussions with investors interested in tourism and the energy sector.

I now wish to briefly report on some of our meetings: Meeting with the Kuwait Fund for Arab Economic Development We took the opportunity to meet a team from the Kuwaiti Fund for Arab Economic Development to discuss areas of cooperation such as farm and feeder roads and other infrastructure projects.

The meetings were cordial and the Kuwaiti delegation agreed to receive a high level delegation from Grenada in Kuwait to further discuss these possibilities at the earliest opportunity.

Meeting with John Lipsky, First Deputy Managing Director in the IMF This meeting was between Mr. Lipsky and CARICOM Ministers of Finance. During this meeting, we raised three issues: 1.Debt Relief 2.Advocacy support for small international financial centres 3.Greater voice in global economic policy process.

In speaking on debt relief, I made the point that we cannot talk about fiscal and debt sustainability in the Caribbean if we do find creative ways to reduce the debt stock in these highly indebted small countries which are among the most highly indebted in the world. At a time when growth is contracting due to the global economic crisis, the debtGDP ratios in many countries were getting worse not better. At the same time, countries like Grenada was constrained in its ability to spend and cannot spend its way out of the crisis as some richer countries have done.

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On the issues of greater voice, I made the point that while the ascendancy of the G-20 as the premier global policy making group was an improvement on the G7 process.

This group was still too narrow and did not represent the interests of small states. Indeed, to broad support from other Finance Ministers, I remarked that it was unacceptable that the countries which caused the problems of the global financial crisis in the first place were meeting without the other 160 plus countries that were most impacted by the crisis.

On the matter of small financial centres, CARICOM Ministers expressed grave concern with the manner in which the OECD and G-20 were handling this matter since it seems their intention is to “kill” small international financial centres. I suggested a possible role for the IMF in respect of advocacy and facilitation to ensure a more even-handed approach to this issue.

Mr. Lipsky noted these points and recognized that the IMF had a role to represent the views of these smaller states and to explore options for greater voice.

Meeting with Mr. Robert Zoellick, President of the World Bank The Caribbean Ministers of Finance were led by President Jagdeo in his capacity as Chairman of CARICOM. We raised four issues with President Zoellick:

On another note, I am pleased to note that Grenada will be one of the countries in the Caribbean to benefit from the Climate Investment Fund. As you know, Grenada is playing a leading role in global climate change negotiations as Chair of the Alliance for Small Island States (AOSIS). During the past year, our Ministry has been actively seeking ways to obtain resources for financing the adaptation for climate change especially as it relates to infrastructure. As a consequence, we welcome this announcement and are awaiting details on the quantum of resources and the timetable for disbursement.

II. Preparation for Value Added Tax and Excise I take this opportunity to re-affirm that the Value Added Tax will come into force on February 01, 2010. Our preparations are well advanced. To date, we have done the following: -

Enacted the VAT law

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Recruited staff for the VAT Office

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Opened the VAT Office; and very importantly

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Launched a broad-based public education campaign under the auspices of the Joint Education Committee

At present, the registration process is underway. We expect to have most persons registered by the end of November 2009.

Before I continue, I want to underscore the importance of VAT and why Government is proceeding with VAT at this time.

1. Debt Relief 2. Financing 3. Climate Change 4. Advocacy support for small international financial centres The President of the Bank agreed to work with the Caribbean on these issues and accepted our invitation to visit the region in the first quarter of 2010 at which time we will discuss progress on these four issues.

Meeting with the International Finance Corporation (private sector arm of the World Bank Group) During this meeting, the IFC presented a proposal to establish a Tourism Crisis Facility for the Caribbean.

The aim of this Facility is to refinance key hotel properties and or assist the commencement of catalytic projects in selected countries. We welcomed this initiative given needs of the tourism industry at this time.

At Government's invitation, IFC has made several visits to Grenada in the past six months to consider how it can play a role in Grenada.

When we commence VAT, Grenada will join more than 130 countries that have already implemented VAT including many Caribbean countries.

Once fully implemented, VAT will account for at least 50% of all Government revenue making it the most important tax in Grenada.

Let me spend a few minutes to clear up some misinformation about VAT. First, VAT is not an additional tax, it is a replacement tax.

When VAT commences, the following taxes will be removed: General Consumption Tax, Ticket Tax and Motor Vehicle Purchase Tax. Second, the average rate of tax on goods will fall from 25% to 15%.

Third, VAT minimizes the imposition of taxes on taxes reducing the cascading effect that some other taxes present.

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What are the benefits of VAT?

Special Features:

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It is a fair tax – everyone pays.

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It is broad based tax - it covers goods and services.

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It provides opportunity to pay less tax by managing your consumption pattern.

•

No annual License Fees

•

No securities in the form of Bank Bonds

•

It enhances Government's ability to provide improved public services such as education health, and infrastructure.

Adequate insurance must be in place to secure against loss

•

It reduces the number of taxes that consumers are required to pay.

Premises must be a secured area approved by the Comptroller of Customs

•

Warehouses will be double-locked

Before I proceed, let me make two important announcements about VAT.

•

Importers may group themselves and share a facility with the approval of the Comptroller of Customs

•

•

1. THERE WILL BE A VAT RATE OF ZERO ON list of medicines for chronic diseases as determined by the Ministry of Health.

2. THERE WILL BE NO VAT ON WATER FOR DOMESTIC CONSUMPTION. This is important clarification since our initial position was an exemption on the first 2900 gallons of water for domestic use. Having consulted further on this matter, our Government has decided to provide a zero rate on water.

The law will reflect this change in due course.

WHAT WE ARE DOING

We are intensifying our public education campaign with visits to businesses and communities. Most of you would now be hearing our Radio Drama series which began last week. We have already started to receive positive feedback on this series.

I wish to make announce two special incentives as we approach the home stretch in our preparation for VAT and Excise: ESTABLISHMENT OF TRANSITIONAL BONDED WAREHOUSES In an effort to minimize the occurrence of double taxation on prices during the transition from the General Consumption Tax (GCT) to the Value Added Tax (VAT), and unnecessary price increases, the Customs & Excise Division is offering “Transitional Bonded Warehouse” facilities to importers. This means, Customs will suspend the payment of duties and taxes until a request is made for the release of the goods by importers who register for these facilities.

INSIDE

This special offer will last run from for four (4) months, from November 01, 2009 to March 01, 2010.

I wish to reiterate that this measure is intended to avoid pressure on the business community to pay taxes twice for the same goods and to minimize the possibility for price increases when VAT is implemented.

Government is taking every precaution to avoid unwarranted price increases with the introduction of VAT.

PUBLIC EDUCATION

10 Finance

Interested persons should contact the Customs and Excise Division.

REDUCTION OF DUTIES ON POINT OF SALE SYSTEMS It is envisaged that most businesses will need to upgrade their point of sale systems to effectively calculate and account for all VAT paid and all VAT received. This is extremely important because since VAT is a consumption tax, Government has to rely on businesses to collect this tax on its behalf. As a consequence, I am pleased to announce that Government will cut by 50% duties and taxes on new point of sales systems for persons who are registered for VAT. To be eligible, persons must be registered for VAT. Once persons/businesses are registered, Customs will be notified and they will receive the concession when the point of sale system is imported/purchased. For more information, please contact the VAT office.

This offer will run until the end of December 2009.

Thank you for your attention.

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

Consumer Price Index (2001=100) September 2009 INFLATION RATE FOR SEPTEMBER 2009 ST. GEORGE'S, GRENADA, MONDAY, OCTOBER 19, 2009: The inflation rate in Grenada, for the month of September 2009, increased by 0.10% largely due to an increase of 2.28% in the price of fuel and light.

The Inflation Rate for September 2009 is 2.45%. This is a sharp reduction compared to September 2008 when it was 8.15%.

To date, its initiatives include: 1. Removal of the National Reconstruction Levy (NRL); 2. The Textbooks Programme; and 3. The Duty Free Barrels Initiative.

The following table illustrates the changes in the major CPI groupings:

Government reemphasises its' commitment to do all in its power to combat the cost of living, especially as it relates to food prices.

Consumer Price Index (2001=100) September 2009

CPI GROUPINGS FOOD INCLUDING NON-ALCOHOLIC DRINKS

%CHANGE

%CHANGE

Weight

August09

Sep- 09

August- 08

September-09/ August- 09

September 09/ September-08

36.75

138.63

139.05

141.55

0.30

-2.99

ALCOHOLIC, DRINK & TOBACCO

0.86

118.38

118.38

118.55

0.14

2.65

CLOTHING, FOOTWEAR & ACCESSORIES

9.77

98.19

98.19

97.41

-0.79

-0.68

10.20

125.80

125.80

125.81

0.01

0.73

FUEL AND LIGHT

5.50

129.95

129.95

132.91

2.28

-22.74

HOUSEHOLD FURNITURE & FURNISHING

9.53

111.08

111.08

110.81

-0.24

2.03

MEDICAL CARE & HEALTH EXPENSES

4.65

126.44

126.44

126.33

-0.09

-0.42

15.65

131.60

131.60

131.11

-0.37

-0.50

EDUCATION

3.74

124.25

124.25

125.06

0.35

0.65

PERSONAL SERVICES

1.60

114.74

114.74

114.74

0.00

5.27

OTHER EXPENSES

1.75

115.07

115.07

114.70

-0.32

2.81

100.0

127.09

127.09

127.22

0.10

-2.45

ACCOMMODATION

TRANSPORTATION & COMMUNICATIONS

TOTAL

Remember The Hurricane season is here... be prepared...

Have a family disaster plan in place. “... the engine room of the Public Service...”

Finance 11 INSIDE

Financial Literacy Month

Minister's Visit to Project Co-ordinating Unit

Facts Fun &

Did U Know?

• That October is celebrated as Financial Literacy Month in the Eastern Caribbean?

• That the headquarters of the Eastern Caribbean Central Bank (ECCB) is located in St. Kitt's?

• That the headquarters of Caribbean Development Bank (CDB) is located in Barbados?

Fun Facts · Yahoo! was originally called 'Jerry's Guide to the World Wide Web'. · The most productive day of the workweek is Tuesday.

Riddle • •

What goes up and down the stairs without moving?

Ans. Rug I never was, am always to be, No one ever saw me, nor ever will, And yet I am the confidence of all To live and breathe on this terrestrial ball.

What am I? Ans: Tomorrow

Have a laugh...

Jokes How you made money A young man asked an old rich man how he made his money.

The old guy fingered his worsted wool vest and said, "Well, son, it was 1932.

The depth of the Great Depression. I was down to my last nickel.

"I invested that nickel in an apple. I spent the entire day polishing the apple and, at the end of the day, I sold the apple for ten cents.

"The next morning, I invested those ten cents in two apples. I spent the entire day polishing them and sold them at 5:00 pm for 20 cents. I continued this system for a month, by the end of which I'd accumulated a fortune of $1.37."

"And that's how you built an empire?" the boy asked.

"Heavens, no!" the man replied. "Then my wife's father died and left us two million dollars."

Investment counselor An investment counselor decided to go out on her own. She was shrewd and diligent, so business kept coming in, and pretty soon she realized that she needed an in-house counsel. The investment banker began to interview young lawyers.

"As I'm sure you can understand," she started off with one of the first applicants, "in a business like this, our personal integrity must be beyond question." She leaned forward. "Mr. Mayberry, are you an honest lawyer?"

"Honest?" replied the job prospect. "Let me tell you something about honest.

Why, I'm so honest that my father lent me $15,000 for my education, and I paid back every penny the minute I tried my very first case."

"Impressive. And what sort of case was that?" asked the investment counselor.

The lawyer squirmed in his seat and admitted, "He sued me for the money."

Puzzle DOWN: 1. To end a career or occupation 2. A contribution for the support of a government required of persons, groups, or businesses 3. A written order to a bank to pay the amount specified from funds on deposit 5. A valuable items such as stocks, real estate, and cash accounts that are owned are called _________.

6. Something owed

14 Finance INSIDE

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

ACROSS: 3. A medium of exchange, especially circulating paper money 4. Business profits or gains from investments.

7. Something, such as an expense, that can be subtracted from the total especially for income-tax purposes 8. A certificate of debt issued by a government or corporation guaranteeing payment of the original investment plus interest by a specified future date.

STATEMENT FROM THE CENTRAL STATISTICAL OFFICE IN COMMEMORATION OF CARIBBEAN STATISTICS DAY 15th October 2009 The Central Statistical Office of Grenada along with the CARICOM Secretariat and the National Statistics Offices of the region celebrates Caribbean Statistics Day on the 15th October 2009. The Celebration of this day was agreed upon and endorsed by the Standing Committee of Caribbean Statisticians (SCCS) at its thirty- third meeting in October, 2008.

of statistics. In fact, each person currently living in Grenada forms part of a statistic or can be represented by official statistics in one way or another, for example: -Any resident of Grenada of a particular ethnicity, religion, sex and age.

-A victim of a fatal stabbing.

The theme for this day is: “Better Statistics, Better management, Better Development outcomes”.

This theme emanated from the High Level Advocacy meeting which was convened on 30th July, 2009 in Port of Spain, Trinidad. This meeting comprised of Ministers, Permanent Secretaries and High Level Government Officials in the CARICOM member states.

Caribbean Statistics Day is celebrated to highlight statistics and its crucial role across a wide spectrum of activities in the economy. Against this backdrop, the Central Statistical office wishes to enlighten you about the importance of national statistics. Many persons in this country at some point in time requires statistics; from the Minister in Cabinet to a form five social studies student and from the CEO or Manager of an organisation to the clerk. Statistics gives a glimpse of the economy and society at any point in time. People are at the core

- A teenage mother and her new born baby boy.

-A newly wedded couple.

-The farmer who rears livestock and produces nutmeg and cocoa for his livelihood -The young male employed in the Banking sector.

-The unemployed single headed mother -The middle age man who suffered with diabetes and hypertension for 10 years and recently died of a stroke.

-A female student enrolled in an educational institution -The male student who dropped out of secondary school.

-The retailer of clothing materials.

-The hotelier who has recently seen an increase in occupancy.

-The consumer who purchases for her own final consumption.

Continues on pg 16

Staff at Central Statistical Office “... the engine room of the Public Service...”

Finance 15 INSIDE

Continued from pg 15

All of these and more are examples of what constitutes official statistics and they are at the most micro level of statistics which is the individual. At this level, information is given about people's characteristics, and the activities they engage in. The Central Statistical Office tries to collect these facts, aggregate them and present them in the most accurate way. Be it good or bad, as in the above scenarios, we are compelled to present the realities of our country in an unbiased way.

good public management and accountability. For statistics to be reliable it must provide an objective account of the economy and society overtime and geographically. Any government should be interested in formulating policies that are evidence- based and evaluating these policies overtime to assess their effectiveness in achieving their intended targets. Hence, it is important that government provides reliable official statistics.

However, without the help of the people from whom statistics are collected, the objectives of reliability, accuracy and timeliness will not be met. This Central Statistical Office therefore uses this opportunity to appeal to the public to supply us with the most accurate, unbiased, reliable and timely statistics. Statistics are collected from the people. It is disseminated to inform the people who plan and implement the right policies for the people of the country. The general public can in turn greatly assist in the production of statistics by being responsive when our enumerators approach their households or establishment with a questionnaire.

They should then respond to the questions asked honestly and to the best of their ability. This will go a long way in improving the quality of statistics we disseminate.

Display at Central Statistical Office

One of the instruments used to capture the above facts is sample surveys both at the household level and at the establishment level. Another is the Population and Housing Census which is administered every ten years. This enables us to have a count of the population and provide basic information on our residents and the households they live in. Apart from these surveys we also collect information from several administrative sources which include line ministries and statutory bodies.

Today as we are faced with so many challenges, it is common for small island states to allocate resources in such a way that limited resources are provided for the development of statistics. However, as we grapple with the current global economic crisis let us not lose sight of the importance of statistics. We would want to ensure that resources are allocated in the most efficient manner and that we can use statistics to make reliable predictions which can aid in mitigating the harmful effects of any economic shock.

For these statistics to have meaning to policy makers, analysts or researchers they must be aggregated in some organized way and presented as indicators. Our National Statistics is disaggregated into two broad categories, which are Economic Statistics and Social Statistics. These scenarios above can also be categorized in either of the two. The Economic Statistics focuses on the productive activities that people engage in. The main classifications for economic indicators are Gross Domestic Product (GDP), Inflation, Balance of Payments and Employment. These key macro-economic indicators seek to monitor the performance of the economy on frequent and consistent basis overtime.

Social statistics seeks to capture human behavior in a social environment. These statistics can be categorized in terms of health, education, vital Statistics (births, deaths, marriages and divorces), crime, poverty, demography and other social statistics.

It is important that statisticians focus their efforts on producing reliable statistics as it is an essential ingredient for

16 Finance INSIDE

Display at Central Statistical Office

Clearly, it is necessary for statistics to be the eyes of the policy makers for there to be better management and for us to enjoy better development outcomes in the future. We need complete, timely, relevant and reliable official statistics to be the core of our plans and policies to guide the development process within our tri-island state.

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

FFinance inance INSIDE

Staff Development and Training

Hon. Minister Michael Church and Ms. Allyson Francis attended the 28th meeting of the Council for trade and Economic Development (COTED) from October 5 – 8, 2009 in Barbados.

plenary meeting of the Caribbean Financial Action Task Force (CFATF) in Curacao, Netherlands from October 26 – 30, 2009.

At this meeting, Grenada presented its report on the measures taken after recommendations were made by the Examiners of the CFATF Mutual Evaluation Review. The Review examines compliance with the Financial Action Task Force (FATF) forty plus nine recommendations for combating Money Laundering and Combating of terrorism. These initial discussions were held in October 2008 with a t Plenary in May of this year (2009). At the end of the initial review, Grenada was placed on an enhanced reporting status and recommendations were made on measures for improvement. Grenada reported on the progress of implementing these recommendations at the meeting in Curacao.

Hon. Michael Church

Issues addressed at the meeting included 1. The implementation of the Caribbean Single Market and Economy (CSME); 2. CARICOM-Canada Negotiations; Trade in goods; and 4. Developments in the World Trade Organisation Doha negotiations.

Mr. Mike Sylvester and Ms. Abiola Streete attended an Institutional Assessment Workshop on the Support of the National Authorising Officers in the OECS and Barbados, in Barbados from October 14 – 15, 2009. The main purpose of th workshop was to discuss the findings of a study conducted in the first half of 2009. The study was an institutional assessment of the national authorizing officers' (NAO) offices in the OECS and Barbados.

Mrs. Patricia Antoine-Clyne, Chairperson of the Supervisory Authority of Grenada and Mr. Senneth Joseph, Head of the Financial Intelligence Unit, represented Grenada at the 30th

Mr. Mike Sylvester

The workshop compared and discussed various types of institutional arrangements for implementing the NAO functions. These functions include: political dialogue, policy dialogue, and operational/administrative duties. At the end of the workshop each national delegation held discussions with their country focal point and presented recommendations for their NAO office.

Mrs. Patricia Antoine-Clyne

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

Continues on pg. 18

Finance 17 INSIDE

Continued from pg. 17

Mr. Leslie Smith, Project Officer in the National Ozone Unit, in the Energy Division, attended the Joint Network Meeting of the Regions of Latin America and the Caribbean in Paramaribo, Suriname from October 06 - 09, 2009.

The meeting was organized by the United Nations Environment Programme (UNEP) and facilitated by Mr. Anthony Deyal, a well-know international media personality.

The objectives of the meeting were: § To encourage Government Information Officers and media personnel to explore and understand linkages on themes to be addressed for sustainable development; and § To provide information on access to environmental information including new websites.

Some of the main agenda highlights included presentations and discussions on: § The Montreal Protocol on Ozone Depleting Substances and its importance; § The relationship of the Montreal Protocol with the impact of climate change and energy efficiency considerations; § Sustainable Urban Development

Mr. Leslie Smith at worksop

This meeting was of particular significance for Grenada and the wider Caribbean as it focused on several key issues in preparation for the Meeting of the Parties in Egypt from November 2 - 8, 2009.

Mrs. Petra Joseph (4th from right) with workshop participants

Mr. Johnny Telesford at workshop Among the key issues discussed were: ü Financial Mechanism ü Hydrochlorofluorocarbons Preparation Management Plans (HPMP) ü High Global Warming Potential alternatives ü Compliance Status ü Regional Public Awareness initiatives Mr. Johnny Telesford consultant from Grenada was a presenter at the workshop.

At the end of the meeting, the participants, who came from all parts of the Caribbean, developed the Paramaribo Declaration

by Representatives of the Caribbean Media, urging the organizers, among other things to provide more media training and other opportunities, including networking, for professional development in the area of Ozone, Climate Change and Energy.

The Declaration also pledged to establish a network of Caribbean Media Practitioners focused on environmental issues, for the purpose of exchanging and disseminating information and media content; facilitating collaboration across the region; and promoting a stronger Caribbean voice in the international media sphere.

Ms. Petra Joseph, Corporate Communications Officer, attended a the Caribbean Media Meeting on Linking Ozone Layer Protection, Climate Change and Energy Efficiency 2009 in Paramaribo, Suriname, from October 5 – 6, 2009.

Mrs. Petra Joseph (2nd from left) with workshop participants

18 Finance INSIDE

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

What’s Been

FFinance inance INSIDE

Happening

ANNUAL IMF/ WORLD BANK MEETINGS The Minister of Finance, the Hon. V. Nazim Burke together with Mr. Timothy Antoine, Permanent Secretary of the Ministry of Finance and Mr. Christopher De Riggs, Director of Private Sector Development in the Ministry, attended the annual IMF/World Bank meetings in Istanbul Turkey from October 1 – 9, 2009.

The annual meetings of the International Monetary Fund (IMF) and World Bank is a high level forum where the Board of Governors of the International Monetary Fund the Boards of Governors of the World Bank Group meet once a year (around September/October) to discuss the work of their respective institutions.

the meetings were the IMF and World Bank's global economic importance, global economic crisis, ways to overcome the crisis, restructuring of the global financial system and measures to be taken to overcome stagnation.

Local Refrigeration and Air-Condition Technicians attend Training in Belize Two of Grenada's refrigeration and air-condition technicians attended a three (3) day training workshop in Hydrocarbon Refrigerants and Technology for Refrigeration and Air Conditioning Technicians in Belize from October 13th - 15th, 2009.

The two (2) technicians who attended the workshop were Mr. Michael Cadore, refrigeration and air-condition

While is Turkey, Minister Burke held several bi-lateral meetings with IMF and World Bank officials as well representatives from financial institutions and potential investors.

Minister Burke also formed part of a Caribbean delegation that met with President of the World Bank and the Deputy Managing Director of the IMF. He also attended the Small States Forum which was chaired by the Hon. Prof. Peter H. Katjavivi, Director General of the National Planning Commission, Namibia.

The theme of this year's Forum was "Strengthening Remittance Flows and Impact: Policies, Practice, Prospects." According to the organizers, the theme was selected in recognition of that fact that (i) small states are disproportionately reliant on remittances; and (ii) with the global financial crisis, remittances to small states are projected to decline by 9 percent in 2009 compared to the preceding year, to $4.1 billion from $4.5 billion, intensifying the challenges faced by poor people who receive remittances from family members and exacerbating the difficulties small states face in funding their external financing gaps.

The annual meetings hosted nearly 15,000 participants from 185 countries. Among other issues discussed during

Participants at workshop

lecturer at T. A. Marryshow Community College and Mr. Henry Frederick attached to the Maurice Bishop International Airport. The workshop was organized by the National Ozone Unit in the Department of the Environment of Belize in collaboration with the UNDP Country Office in the form of a train the trainers' workshop. The practical sessions of the workshop were held at the refrigeration workshop of the Institute for Technical and Vocational Education and Training (ITVET) in Belize City.

Continues on pg 20

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

Finance 19 INSIDE

Continued from pg. 19

APPOINTMENT TO COLLEGE OF NEGOTIATORS FOR THE CARICOM-CANADA TRADE AND DEVELOPMENT AGREEMENT Ms. Allyson Francis, Trade Counsel attached to the Ministry of Ministry of Finance/ Ministry of Environment, Foreign Trade and Export Development, has been appointed as the CARICOM Lead Negotiator for Trade in Services, on the College of Negotiators for the CARICOM-Canada Trade and Development Agreement. th

This decision was taken at 28 Meeting of the Council for Trade and Economic Development (COTED) which was th th held in Barbados from October 5 – 8 , 2009.

Participants at workshop

The participants were exposed to training in the following areas: a. Theoretical and practical sessions on replacement of Ozone Depleting Substances (ODS) with hydrocarbons.

Ms. Allyson Francis

As Lead Negotiator, Ms. Francis will be required to:

Facilitator of workshop performing a demonstration

b. Practical applications of Hydrocarbons in the refrigeration servicing sector. c. The safe handling and equipment design for hydrocarbon refrigerants. d. Methodology for the conducting risk assessments for systems and equipment using hydrocarbon refrigerants.

Prior to the workshop, site visits to different refrigeration installations and a stakeholder consultation with refrigerant importers, technicians, and government officials were conducted.

The two local technicians would be conducting similar workshops for impart the knowledge and information gained to local technicians during the month of November.

20 Finance INSIDE

Develop and articulate proposals on behalf of CARICOM in the respective negotiating areas, with the guidance of CARICOM Member States and the Office of Trade Negotiations (OTN); Act as CARICOM's lead spokesperson in the negotiating meetings; Convene CARICOM caucuses prior to and after negotiating meetings; Prepare and submit reports of negotiating meetings for circulation to Member States and the COTED through the OTN; Collaborate with other Lead Negotiators in other negotiating groups on cross-cutting issues; Participate in and provide technical expertise to CARICOM Technical Working Groups; and Participate in meetings of the College of Negotiators as and when required.

Continues on pg 21

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

Continued from pg 20

The first Round of negotiations will take place in Barbados from 10-13 November 2009. This will be preceded by a meeting of the College of Negotiators on November 9.

The Government of Grenada takes this opportunity to congratulate Ms. Francis on this prestigious appointment.

GRENADA LAUNCHES NON STATE ACTORS PANEL The Government of Grenada, in conjunction with the European Union (EU), officially launched its Non States Actors Advisory Panel (NSAAP), on Monday October 12, 2009.

The concept of the NSAAP is enshrined in the Cotonou Agreement between the European Union (EU) and the African, Caribbean and Pacific (ACP) states regarding aid, trade and political cooperation.

Details of this panel can be found in article on the European Union on page 5.

MORE OVERSEAS TRAINING FOR LOCAL REFRIGERATION AND AIR-CONDITION TECHNICIANS

Participants at workshop

conjunction with Environment Canada and ran from October 27th – 29th at the Sir Arthur Lewis Community College.

The participants were trained in the areas of: ·

Properties of hydrocarbons

·

General safety considerations

·

Methods of refrigerant recovery

·

Retrofitting to Hydrocarbons

Two (2) more local Refrigeration and Air-Condition technicians are the beneficiaries of a training workshop in Hydrocarbon Refrigerant Technology held in St. Lucia.

The two technicians are Mr. E. Gordon Sylvester of Sauteurs and Mr. Rawle Hayling attached to the Maurice Bishop International Airport (MBIA).

This training workshop in Hydrocarbon Technology was organized by the National Ozone Unit of St. Lucia in Participants at workshop

T

he Minister of Finance, Planning, Economy, Energy & Cooperatives, Permanent Secretary, 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 21 INSIDE

Continued from pg. 21

These training activities are part of Grenada's Refrigerant Management Plan to prepare Refrigeration and Aircondition technicians for the phasing out of CFC type refrigerants and the introduction of new and alternative ozone friendly alternatives to the local refrigeration and air-condition industry.

and Carriacou. The ultimate aim is to organize Farmers Association on a parish level and finally to form one Apex body that would represent farmers integrate on an island wide basis. Funds are already being sorted after for

Hydrocarbon technology has the advantages of low ozone depleting potential (ODP), low global warming potential (GWP) and energy efficient.

DEPARTMENT OF CO-OPERATIVES PARTNERS WITH THE MINISTRY OF AGRICULTURE Since February 2009 the Division of Co-operatives has been working along with the Veterinary and Livestock Division of the Ministry of Agriculture to establish Farmers Co-operatives Island wide. The two main players behind this project are Mr. Chester Langaigne, Senior Cooperative Officer with the Division of Co-operatives and Dr. Peniel Mwasha, Consultant from Tanzania assigned by the British Commonwealth to the Ministry of Agriculture.

The aim of this project is to organize farmers involved in the rearing of cattle and small ruminants into cooperatives, aimed at producing milk and milk products for the local market. Already, extensive contacts and training have been done with farmers in every parish of Grenada

Mr. Chester Langaigne

example, to set up a processing plant for farmers' milk at one central location.

Some farmers have been chosen to set up demonstration centres to educate and train farmers to do things like, the making of hay and constructing model housing for livestock. All parishes in Grenada have responded positively to such initiative. Carriacou would be made a centre of excellence in the near future. Presently there are about seven cooperative groups that have submitted applications and byelaws for registration.

FINANCIALTip

Don't spend money to de-stress.

As we approach the festive season, a time that is considered by some as one of the most stressful times of the year -- please do not spend money to de-stress. Some people will often make purchases to make themselves feel better. Think of what big ticket items you have purchased when you were sad, depressed or were simply having a bad day. Some people spend money just to wind down after a stressful day. Sometimes they would end up buying things that they didn't need to make themselves feel better. It has been proven that one can feel better by finding something constructive to do like writing in a journal, trying a new recipe, reading a book, or spending time with family. Can you think of several things that you can do instead of spending money?

22 Finance INSIDE

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

LAUNCH OF SMALL BUSINESS DEVELOPMENT FUND Continued from last edition Philosophy: The Small Business Development Fund was born out of the Government's philosophy that: 1.

Small and micro businesses provide the opportunities for ordinary citizens to acquire economic power, property ownership, and economic independence; they also motivate the individual to work harder and more creatively and to commit to national development;

2.

One of the best ways to combat unemployment and poverty and ensure the empowerment and equitable distribution of wealth and income of the country's citizens, through the promotion of small and micro businesses and the encouragement of private initiatives;

3.

The global economy, even in times of recession, provides unique opportunities for innovative businesses to secure viable niche markets both domestically and abroad.

Background: The context of this Fund is the commitment made by the Minister for Finance in his budget speech on 12th December 2008, in which he stated government's intention to give special support to young business entrepreneurs under the Young Entrepreneurs Development Fund. He indicated that Government will cap its exposure at $1million, with carefully worked out conditions. This commitment was restated by the Prime Minister when he announced the Economic Stimulus Package on April 1st, 2009.

Given the global recession and the resultant negative impact on the economy of Grenada, especially with the loss of jobs, there is the urgent need for Government intervention to take the edge off the mounting problem of unemployment by providing opportunities for the recently displaced and the chronically unemployed to get involved in viable production and financially rewarding self-managed economic activities. In Grenada, it is estimated that 40% of employment is accounted for by small and medium sized enterprises. It is recommended that this figure should be closer to 80% in keeping with international bench marks.

What can the Fund be used for: • Purchase of equipment • Purchase of raw material / packaging material • Buffer the effects of short term receivables Who can access the Fund: • Lower income persons who have great business ideas but few or no avenues to access affordable business credit • Unemployed or under employed persons • Small businesses with limited access to commercial credit

This initiative also forms part of the overall drive to facilitate the growth of the Grenada Private Sector as the engine of growth of the economy. The Government is providing the enabling framework for the private sector to expand at its natural growth points, i.e. the small and micro enterprises.

Loan size and interest rate: • A minimum of $500 and a maximum of $20,000 • Interest rate between five percent (5%) and seven percent (7%) of the borrowed amount

Objectives: The objectives of the fund are:

Repayment period: • Maximum of five (5) years

a. b. c. d. e. f.

Development of entrepreneurs and entrepreneurship skills; Creation of employment opportunities; Institutional Strengthening; Improving the image of the small business sector; Economic diversification and poverty alleviation; and Demand stimulation and growth facilitation

Purpose of the Fund: The purpose of the Fund is for the further development of and sustainability of small enterprises through the provision of capital, business advisory services and institutional strengthening.

Collateral Required: • Property or fixed asset • Bill of sale on equipment • Crop lien • Letter of Guarantor How can the Fund be accessed: • Register, enroll and complete to complete the Business Development Centre's Entrepreneurial Skills Development Training Program • Prepare Business Plan for submission to the chosen financial institution along with other supporting documents.

GDTAC IS LAUNCHED

On Tuesday October 20th 2009, The Government of Grenada officially launched the Grenada Technical Assistance Credit Project (GD TAC).

The launch took place at the Grenada Trade Centre Annex and was attended by government officials, representatives of the private sector representatives, represen The GD TAC project is born out of a financing agreement entered into by the Government of Grenada and the International Development Association (IDA).

Through this agreement financing is provided to support the Government of Grenada in improving the environment for private sector led growth through the modernization of key public sector institutions and the implementation of an export strategy.

The Project's specific objectives are: (i) to improve the efficiency and effectiveness of customs; (ii)

to improve the efficiency of tax administration through, among other things, a decrease in the transaction costs of paying taxes and consequently, an increase in tax compliance;

(iii)

to enhance the Government's support for exports through improving access to trade and information and strengthening the capacity of the Bureau of Standards to

(iv)

provide services related to conformity assessment and quality assurance; and to modernize investment promotion.

In speaking at the launch of the project Minister of Finance, Hon. Nazim Burke said: “Let me emphasize that our (government's) support for GTAC is consistent with the fact that we have embraced competitiveness and efficiency as an ideology. The commitment to redesign the business facilitation architecture was made in our manifesto. The seriousness of our commitment is borne out in such recent legislation like the New Investment Act, the Corporate Affairs and Intellectual Property Act and the Lands and Deeds Act. In addition we expect to work with the World Bank to configure and implement Action Plans for Business Start-ups and Cross-Border Trade” He also spoke of the impact the project is expected to have on the lives of ordinary Grenadians, stating that the project will bring: “Increased business support to small and medium enterprises; enhanced ability to attract Foreign Direct Investment to Grenada, bringing increased job opportunities, foreign exchange generation and increased capital formation, and improved access to trade information, export markets and cross-border trade” among others.

The entire text of his presentation can be found on page 6 The coordinator of the project is Mr. Ronnie Theodore of the Private Sector Development Unit.

GOVERNMENTS OF THE EASTERN CARIBBEAN CURRENCY UNION (ECCU) AGREE TO CREATE NEW COMPANY TO DEAL WITH BRITISH AMERICAN INSURANCE COMPANY The Governments of the Eastern Caribbean Currency Union (ECCU) have approved a regional plan to assist in the structure and funding of a proposed new entity to take over some of the assets and liabilities of British American Insurance Company Limited (BAICO) in the Eastern Caribbean, currently under judicial management.

The plan will require the approval of the Court.

The proposed strategy was adopted to maintain continued financial stability in the region, and to protect the interests of creditors and investors, within the rules governing this process.

Financial Literacy Month Celebrated Save and Invest today...

See Pics on centre page Enjoy tomorrow Ministry of Finance, Planning, Economy, Energy & Cooperatives Financial Complex, Carenage, St. George’s Tel.: 440-2731-34, 435-0057; Fax: 440-4115; Website: www.gov.gd; Email: finance@gov.gd, financegrenada@gmail.com Contact: Petra Joseph, Editor-in-Chief, 440-2731, ext.: 1108/435-0057 Designed and printed by Government Printery