Inside Finance - Volume 6, Issue3, May - June 2010

Finance INSIDE

GRENADA

Now available online at www.gov.gd/documents.html and click on documents newsletters

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

Volume 6, Issue 3, May - June 2010

IMPLEMENTATION OF

NEW OPERATING SYSTEM

(ASYCUDA PLUS) UNDERWAY AT

CUSTOMS

Story on page 7

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

INCREASED EFFICIENCY AT CUSTOMS

FASTER CLEARANCE TIMES

ONLINE PROCESSING OF ENTRY FORMS INCREASED REVENUE FOR GOVERNMENT

THE CONSEQUENCE OF INDICISION “If you want to make an easy job seem mighty hard, just keep putting off doing it." ~Olin Miller Decisions, decisions and more decisions!

Should I do this today?

What if I do this tomorrow instead? I don't think I can deal with this today! Sounds familiar? I am sure it does to the majority of us.

Everyone of us have at some time or other found ourselves hesitating to make one decision or another. We put things off because we don't want to do them, or because we have too many other things on our plates. Putting things off, big or small, is part of human nature.

Another name for indecision is procrastination, and again, everyone procrastinates. However, some persons are excessively indecisive and this can result in dire consequences from a personal and professional point of view.

The theory of the Mind says that the Mind is what your brain does consciously. It goes on to say that our minds perform a series of information processing in order to form strategies needed to live our daily lives. This process is known as decision making. However, aside from making decisions, because of many kinds of uncertainties we also face a problem called decidophobia.

Decidophobia is the fear of making serious decisions or the fear of making the wrong decision combined with nervous agitation. This concept was developed by Walter Kaufmann at Princeton University in 1973.

The fear of making the wrong decisions is well known to any responsible manager. It is a fact that wherever you see a successful business, someone once made a courageous decision. There has never yet been a person in the history of mankind who led a life of ease whose name is worth remembering. The difficulty in life is the choice. Eleanor Roosevelt said, "You gain strength, courage, and confidence by every experience in which you really stop to look fear in the face."

Decisions are at the heart of success, and at times there are critical moments when they can be difficult, perplexing, and nerve racking, but they have to be made. Just being

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worried about making serious decisions is like sitting on a rocking chair-it gives you something to do but does not get you anywhere. Therefore worrying about making a decision is a waste of time.

Indecision or procrastination is based in fear; including, the fear of failure, the fear of success, fear of losing autonomy, fear of being alone, the fear of attachment and the fear of being judged by others. It is believed that procrastination and perfectionism often go hand in hand. Perfectionists tend to procrastinate because they expect so much of themselves, and they are scared (they fear) about whether or not they can meet those high standards.

More often than not, indecisiveness/procrastinating results in task being put off until the very last minute. If fear of failure or success made you anxious when faced with a difficult task, imagine the anxiety you will feel when you have a deadline approaching for a critical task that will not be completed because of your action. Now think about if you have multiple tasks that are to be completed around the same time. You are probably getting nervous just thinking about situations like this: you have either put yourself in or are about to put yourself in. It is not worth it and if you are not careful, the effects of procrastination can have damaging consequences on your life, mentally, emotionally and financially.

There have been studies that suggest that anxiety may compromise our immune systems, and therefore render it susceptible to infections diseases. When one is feeling anxious about things one tends to lose his or her ability to focus, therefore increasing the chances of being involved in accidents. When one decides not to deal with things and put them off, all one is doing is making more work for himself or herself in the long run. And the more work one has, the more stressed one will feel because of all the backlogged work that still has to be done. Remember, just because a task is avoided today does not mean it will not have to be done tomorrow!

At one's place of employment one has to work toward deadlines, these deadlines can help organize workload and Continues on pg. 5

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

partners namely, the private sector, the trade union movement and the non governmental (NGO) community.

Nevertheless, our conditions remain adverse and we remain challenged in many respects. Grenada has unacceptable unemployment levels; poverty rate which was estimated at 37.7% by CDB in 2008; the global commodity and liquidity crises; the rising cost of energy; the high debt to GDP ratio; and the general instability and tremors in the global economic system have increased the vulnerability of Grenada.

We must find ways to convert our adversity into opportunities.

To do so calls for maturity, good judgment, timing, patience and most importantly, creativity.

Hon. V. Nazim Burke REMARKS OF THE HON. V. NAZIM BURKE, MINISTER OF FINANCE AT THE COUNTRY PROGRAMME STRATEGY WORKSHOP FOR GRENADA – May 12, 2010 I would like to express my thanks to the organizers for inviting me to this important workshop and to express my pleasure to be here.

It is in this light that we must view all Multi-lateral Environmental Agreements (MEAs). They must be treated as investment opportunities for Grenada.

Grenada can benefit immensely if it has a plan and a strategy to make maximum use of all MEAs. In the context of the GEF it means taking full advantage of the three investment levels of the GEF, that is, the Small Grants for investments up to US$50,000; the Medium GEF for investments up to US$1 million; and the Big GEF for investments over US$1 million.

In this crisis, few countries have been spared. Our country experienced a marked reduction in tourism earnings, a fall in remittances, a fall off in foreign direct investments, a fall off in government revenues, which threatened to plunge our country and a large number of our citizens into poverty and our country into despair.

It takes approximately 22 months to develop Medium or a Big GEF project proposal and during that time Grenada can benefit from several Small Grants Projects so that there is no delay or hiatus in investment. Take for example the issue of energy and food security. We can envisage a strategy in which we use the first 22 months to implement a series of Small Grants Projects in alternative energy and farming, while we develop a Medium or a Big GEF for upscaling these projects. Therefore by the time we have gone through a 22 month process we have not wasted time and the People of Grenada can be benefitting.

We are happy to say that despite the great challenge we were able to steady the ship and avert disaster thanks to the spirit of unity and cooperation exhibited by our multipartite social

For this to happen we have to be creative, strategic, and work in partnership with all sectors which includes the Private Sector and Civil Society.

It is no secret that while there are some nascent signs of recovery, the world remains engulfed in an economic crisis the likes of which we have not experienced since the 1930's.

Continues on pg. 4

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Minister's Note cont'd from pg. 3 This is why Government has been pushing so vigorously for the completion of a multipartite social protocol between Government, the Private Sector, Civil Society.

•

Most had a more organizational-centred approach rather than a people-centred approach;

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Groups viewed capacity development as mostly an internal organizational matter without considering the external enabling environment and the role of Government;

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Governance structure and decision making was topdown;

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Most had poor project management skills;

We must seek to build a partnership for progress between these partners and our donors.

Ladies and Gentlemen, I am confident that we can achieve this. For as the Small Grants Programme has shown when there is dedication, commitment, and leadership we can rise to the top.

Between July 2008 and June 2009, Grenada rose from the bottom of the Barbados and the OECS GEF SGP Programme to the top, utilizing some 47% of the GEF SGP funds. The actual total investment was US$296,597 or EC$800,812.

We believe that we can do better than this.

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Several engaged in unproductive competition and secrecy and tended not to create beneficial partnerships among themselves;

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Groups did not use a 'rights-based' approach as a motivator for action;

We therefore throw out a challenge to the groups to increase the investment of the GEF in Grenada.

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Groups worked within a culture with high visual and oral literacy, but poor written literacy;

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They adapted to changes too slowly;

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They undertook insufficient self-criticism and selfevaluation;

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They took few income or revenue generating initiatives to lessen the dependency on donors;

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Several were not focusing their resources for maximum impacts, yet requested more and more funds to cover core administration costs; and

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Some were confronted by a political culture which viewed strong NGOs, CBOs and individuals as competitors and adversaries rather than partners.

The Government of Grenada is particularly pleased with the success of the GEF SGP in Grenada and for that we have to congratulate the volunteers of the National Focal Group of Grenada and Ms. Valerie Gordon who is the GEF SGP National Focal Person of Grenada. Valerie and that group have worked with an indefatigable spirit to raise fair Grenada from the valley to the mountain top and we salute them for that.

I am also particularly pleased with the focus of the GEF SGP Programme on environmental sustainability, poverty reduction and capacity development.

Ladies and Gentlemen, through the GEF, we are called to design Projects which protect the basis of our livelihoods, i.e. the environment, and in so doing develop sustainable enterprises which create employment and new income streams, while building our capacity for sustainable actions in the future.

This is an opportunity to build from within and to bring Grenada to the next level where we can consolidate and build on the achievements and gains made since our political independence.

Ladies and Gentlemen, a recent study by the GEF SGP UNDP (2009) in which the Consultant compared the performance of CSOs in the Caribbean and Latin America found out that our CSOs in the Caribbean had several deficiencies as follows: •

No clear and well defined philosophy of development;

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Government will work with all donors including the GEF SGP to address these deficiencies.

But there is much to be done by Government - we must never underestimate or undervalue the importance of VOLUNTEERISM to sustainable development.

Despite the best efforts of some, our country remains constrained by the absence of a vibrant entrepreneurial spirit.

We must work to strengthen the culture of business enterprise.

In closing, I wish to call upon the participants present to be imaginative, let your creative juices flow and take advantage of the opportunities provided by the Multi-lateral Environmental Agreements.

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

Editor's Remark cont'd from pg. 2 help stay on task. Putting off undesirable task can have serious implications. For example, one may be viewed as unreliable, incompetent, or just plain lazy. It is important that one's responsibility at work is executed to the best of one's ability for the sake of one's integrity and relationship with colleagues and co-workers.

Financially, hesitation may be the result of losing out on a great deal, having to pay more interest and having to pay fines and late fees, which does not benefit anyone, except maybe the bank or person with whom one is doing business. For sure, having to pay more or losing out on a deal that could have made one financially sound, is of no benefit at all!

In short, indecision interferes with success Here are a few tips that can help in eliminating indecision: • Motivate yourself to work on a task with thoughts such as "There is no time like the present," or "Nobody's perfect."

• Prioritize the tasks you have to do.

• Commit yourself to completing a task once started.

• Work on tasks at the times you work best.

• Break large tasks into small manageable parts.

• • • •

Make a schedule of the tasks you have to do and stick to it.

Eliminate distractions that interfere with working on tasks.

Set reasonable standards that you can meet for a task.

Take breaks when working on a task so that you do not wear down.

• Work on difficult and/or unpleasant tasks first.

• Work on a task you find easier after you complete a difficult task.

In life there are many things that need to be done to ensure we are able to function day to day. These tasks range from something simple as brushing our teeth if not the result will be rotten teeth or bad breathe, to something as critical as paying the mortgage, if not one can loose their house and land. No matter how insignificant of a task we may think we are faced with, it is important to avoid indecision as much as possible. You can be certain that postponing tasks will almost always result in unexpected problems arising. So as much as you would like to do something other than the job at hand, just buckle down and take care of what you are faced with.

Petra References: www.livereal.com; Dr. Hossein Arsham, Merrick School of Business University of Baltimore; www.unc.edu.

FINANCIALTip

Effective Grocery Shopping Shop weekly. If you try to shop once a month or every other week, you will ultimately buy food that spoils. Shopping weekly for specific items prevents that, as well as additional trips to the store for “forgotten” items.

Plan ahead. Decide on Saturday morning what your menu for the week will look like. Determine which ingredients you will need for that week, and hit the grocery store as early as possible to get the best deals on meat and other specials.

Make a list. Using your planned menu, make a list of all ingredients you will need, and stick to it when wandering through the store. Don't be tempted by “taste testers” or by your kids' desires for extras.

Lists make grocery shopping easier and much more effective than wandering around blindly.

Bring your calculator. Especially if you are on a budget, using your calculator with each purchase will help ensure you stay within your budget. You will also avoid purchasing items you don't need because you will know that you will not be able to afford them.

Eat before you go! Silly, it may seem, but you do not want to go to the grocery store hungry. A curbed appetite will keep you from buying things that sound good to you at the time, but are not really what you had in mind for that week.

Effective grocery shopping can be attained by implementing a few or all of the above items. The most important thing is to ensure that you plan in advance, and stick to your plan. You will save money, time, and spoiled food.

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

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Economic Update STANDARD & POOR'S REAFFIRMS GRENADA'S 'B-/C' RATINGS Minister of Finance, Hon. V. Nazim Burke, welcomes Grenada's reaffirmed 'B-/C' credit rating by Standard and Poor's, particularly in these tough economic times.

According to Minister Burke, “This rating validates the Government of Grenada's commitment to strong economic management as stated in the 2010 Budget Speech.”

The Standard and Poor's team visited Grenada in March 2010, to conduct their annual review for reassessing Grenada's sovereign Credit Rating. While here, they met with various

stakeholders including the Ministry of Finance and other Government bodies; the leader of Her Majesty's Opposition; the Grenada Authority for the Regulation of Financial Institutions (GARFIN); the United States Embassy; and representatives from the Board of Tourism, the Grenada Chamber of Industry and Commerce(GCIC), and the Banking Sector.

Standards and Poor's is known to investors worldwide as a leader of financial-market intelligence and rates over 100 countries internationally. Credit ratings are usually awarded relative to other countries in the world.

BUDGET PERFORMANCE JANUARY - JUNE 2010 (a) Current Revenues – above target by $6.8M. However, there were shortfalls from Customs and Other Sources by $6.6M and $2.3M, respectively. On the other hand, the Inland Revenue Department exceeded their target, which was able to offset the shortfall of the other sources.

categories: personnel expenditure, retirement benefits, telephone, electricity, water and other goods and services. (c) Capital Expenditure = $53.9M; approximately EC$4.6M less than projected or 92% of the budgeted figures.

(b) Current Expenditure – above projections by EC$5.5M. This was as a result of higher outlays on the following

THE STIMULUS AT WORK It is a slow day in the small Minnesota town of Marshall, and the streets are deserted. Times are tough, everybody is in debt, and everybody is living on credit.

A rich tourist visiting the area drives through town, stops at the motel, lays a $100 bill on the desk and says he wants to inspect the rooms upstairs before selecting one for the night.

1. As soon as he walks upstairs, the motel owner grabs the bill and runs next door to pay his debt to the butcher.

2. The butcher takes the $100 and runs down the street to retire his debt to the pig farmer.

5. The hooker rushes to the hotel and pays off her room bill with the hotel owner.

6. The hotel proprietor then places the $100 back on the counter so the rich traveler will not suspect anything.

At that moment the traveler comes down the stairs, states that the rooms are not satisfactory, picks up the $100 bill and leaves town.

No one produced anything. No one earned anything. However, the whole town is now out of debt and looks to the future with a lot more optimism.

And that, ladies and gentlemen, is how Stimulus works!

3. The pig farmer takes the $100 and heads off to pay his bill to his supplier, the Farmer's Co-op.

4. The guy at the Farmer's Co-op takes the $100 and runs to pay his debt to the local prostitute, who has also been facing hard times and has had to offer her "services" on credit.

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

Source: unknown

NEW OPERATING SYSTEM FOR CUSTOMS In an effort to improve its operations and services to the general public, the Customs and Excise Department of the Ministry of Finance is upgrading its operating and

At the strategic level: - Better management and control of Government finances.

- Strengthening the economy through increased efficiency at the Customs and Excise Department to the trading community.

Minister Burke delivering Feature Address at Launch

reporting system to the ASYCUDA World Computing System. In this regard, a formal launch was held on Wednesday June 30th 2010 at the Public Workers' Union Building, Tanteen, St. George's.

The implementation of this new operating system is expected to bring big benefits to Customs and Grenada in general. Essentially, ASYCUDA World will allow the Customs administration and their clients to handle most of their transactions, from Customs Declarations to Cargo Manifests and Transit Documents, via the internet. This will improve the ease of doing business with the Customs and reduce the time taken in getting items cleared from the Port. More specifically, the following are the expected benefits from investing in this new system.

Invitees at launch

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Well-trained staff thus building the capacity of the Department.

Better conditions for trade.

Reliable source of information on foreign trade.

Platform for e-government.

Support for e-commerce and providing the capability for better reports from Customs.

Other more immediate benefits include: - Improvement in the efficiency and effectiveness of the Department.

- Facilitation of data integration with SIGTAS, the operating system used by the Inland Revenue Department.

- Technical training to staff to ensure their capabilities in using the ASYCUDA System.

- Uniformed application of the Customs Laws and Regulations – a better command on the collection of duties and taxes.

- Availability of timely and accurate statistics thus harnessing trade.

- Improvement in revenue control.

- Reduction in the clearance time of cargo and inspections Continues on pg. 8

CARTAC Consultant at Launch

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

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New Operating System for Customs continued from pg. 7 -

The minimization of administrative costs.

Establishment of a valuation database.

The implementation of ASYCUDA World at Customs is a sub-project of the Grenada Technical Assistance Credit Project (GD TAC) which is jointly funded by the International Development Association (IDA) and the European Union (EU). The GD TAC, which was

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Enhancing the Government's support for exports through improving access to trade and information and strengthening the capacity of the Bureau of Standards to provide services related to conformity assessment and quality assurance; and Modernizing investment promotion.

Director of Private Sector Development, Mr. Christopher De Riggs at Launch

Deputy P.S. Mike Sylvester at Launch

launched in Grenada on October 20th, 2009, is aimed at improving the environment for private sector led growth, through the modernization of key public sector institutions and the implementation of an export strategy. Specifically the GD TAC has the following

As such, in March 2010, an Agreement was signed with the United Nations Conference on Trade and Development (UNCTAD) for the installation and implementation of the ASYCUDA World Computing System, the latest version of ASYCUDA

Invitees at Launch

Invitees at Launch

objectives: - Improving the efficiency and effectiveness of Customs; - Improving 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;

CARTAC Representatives at Launch

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software, at the Customs and Excise Department.

The ASYCUDA operations will be housed at the Public Workers' Union building. The installation and implementation is expected to be completed in 18 24 months.

Customs administrations through the world, play a critically important role in the implementation of a range of government trade, economic and social policies and contribute to the achievement of a number of national development objectives. Without efficient and effective national customs administration, governments will not be able to meet their policy objectives in respect to revenue collection, trade facilitation, trade statistics, and the protection of society from a range of social and national security concerns.

The upgrading of the operating system at the Customs Department will most definitely position the Grenada Customs Department to achieve the aforementioned objectives.

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

European Union's Development Assistance to Grenada Media update for the period 1st April to 30th June 2010 through a consultative process that involves stakeholders from the public sector, private sector and civil society.

Europe Day Europe Day – celebrated annually on 9th May – was commemorated in Grenada with activities on 7th and 8th May. Ambassador Valeriano Diaz, Head of the EU Delegation to Barbados and the Eastern Caribbean, hosted a cocktail function on the evening of 7th May for the Prime Minister and other invited guests and a European Film Festival was held on Saturday 8th May at Reno Cinema in Paddock, St George's.

Prime Minister Thomas at EU Day Celebrations with EU Ambassador

Projects Work on the Southern Grenada Water Supply Improvement Project, which began in mid-2009, has continued satisfactorily during the second quarter of 2010, inspite of delays due to problems with the supply of asphalt. Ambassador Diaz and several members of the EU Delegation to Barbados and the Eastern Caribbean were given a tour of the Project during their visit to Grenada to commemorate Europe Day. The Ministry of Agriculture and the EDF Support Services Unit have begun implementation of SFA 2008 – Establishment of a Spice Research Station and Farming Systems. Mr. Ronald O'Neale has been hired to manage the Project and tenders will be issued in July for the supplies and works needed to upgrade and expand Ashenden Propagation Station.

Implementation of the Technical Co-operation Facility and Support to Non-State Actors Project began in June. This project will fund technical assistance in critical areas such as the development of a comprehensive Land and Marine Management Strategy, and it will also provide funding to support the NSA Panel's activities. The process of drafting Terms of Reference for the various strategies and feasibility studies will begin in July,

Budget Support The EU provides grant funding for specific projects and also for direct support to the Government's budget. This mechanism involves the disbursement of funds directly to the Treasury to support Government programmes and policies. To be eligible to receive budget support, countries must have in place adequate

Minister Burke at EU Day Celebrations with EU Ambassador

public finance management systems and must demonstrate a commitment to continued improvements in transparency and accountability. Additionally, the Government should have clear macro-economic policies with measurable objectives and targets; disbursements are contingent on demonstrating the Government's progress in achieving its stated goals.

The Government submitted a request for disbursement of €1.8 M under the 9th European Development Fund (EDF) budget support programme. A decision on the disbursement request is expected from the EU by the end of August.

Missions and Studies The EDF Support Services Unit provides administrative support to facilitate various EU related missions and studies, including co-ordinating meetings with stakeholders and conducting followup to receive feedback on draft reports.

A CARTAC mission visited Grenada in June to provide technical assistance for the preparation of a Public Finance Management (PFM) Reform Action Plan. The PFM Action Plan, which will be finalised by the Government during the third quarter of 2010, will provide greater focus and co-ordination of Government's ongoing Continues on pg. 10

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European Union Report Continued from pg. 9 reform efforts by assigning priority levels to tasks and ensuring appropriate sequencing of activities.

Calls for Proposals One of the mechanisms through which the EU provides grant funding is through establishing funds that specialise in a particular theme such as energy, water and sanitation, the environment, etc. Periodically a fund issues a call for proposals which is published on the EuropeAid website; information provided includes the submission deadline, eligibility requirements, counterpart funding requirements (usually 20 25%), project criteria and guidelines, etc.

EU Project underway

Next Quarter The Ministry of Agriculture will be holding a formal launch to celebrate the commencement of SFA 2008 – Establishment of a Spice Research Station and Farming Systems in August. A tour of the Ashenden Propagation Station is expected to take place immediately following the launch.

A series of workshops will begin in September that are geared towards improving Grenada's capacity to implement and benefit from the commitments made under the Economic Partnership Agreement (EPA) between the European Union and CARIFORUM Member States. (The CARIFORUM grouping comprises CARICOM plus the Dominican Republic).

EU Project underway

The EU launched a Call for Proposals in February, inviting institutions responsible for water supply and sanitation to submit proposals for Water, Sanitation and Hygiene Projects. NAWASA submitted two proposals for Projects designed to upgrade its water supply and sanitation systems within the deadline of 2nd June 2010.

Based on a pre-qualification exercise that took place in January 2010, Grenada was invited to submit two Proposals to the Energy Facility's Call for Proposals with a July 9th deadline for submission. The Government of Grenada will submit proposals for (i) A Rural Electrification Project using Wind and Solar Energy in Carriacou and Petite Martinique and (ii) Establishment of a Centre for Renewable Energy and Energy Efficiency in Grenada.

EU Presentation

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

Minister of Finance Address at Opening Ceremony of the

TH

5 ANNUAL PRIVATE SECTOR CONFERENCE th

12 June 2010 On behalf of the Government of Grenada, let me first congratulate the Caribbean Association of Industry and Commerce (CAIC) for staging this conference. I also wish to congratulate CAIC for having the foresight to choose Grenada as the conference venue. I extend a warm welcome to you and I wish to express our pleasure at being afforded the opportunity to be a sponsor and host.

We note the stated purpose of the conference, namely, to improve the interface between the Governments and the Private Sector in the Region. We are therefore gathered here in the spirit of partnership.

Ladies and Gentlemen, our Government feels at home in this forum because we believe in partnership. For us, partnership is not a buzzword, but a fundamental pillar of Governance. It is also a rational and practical response to the challenges we face as we struggle to navigate our way in the stormy waters of the World Recession that is unfortunately still with us. Partnership, ladies and gentlemen, helps us to stay afloat and maintain steadiness. That is why we preach partnership and we practice partnership.

I have taken note of the issues around which you intend to wrap your minds during the course of the day, as indicated in your agenda.

They include: * The OECS Economic Union Treaty; * The Caribbean Tourism Recovery Plan; * Turning Agricultural Products into Competitive Export Commodities; * The Export of Professional Services; * A Regional Energy Policy; * Investment Promotion; * The Issuance of Diaspora Bonds.

It is an interesting coincidence that only this week the OECS Economic Union Treaty was debated in our Parliament and was endorsed by both Government and Opposition.

I am pleased to say that your chosen agenda is evidence that there is a shared recognition of priorities among Regional Governments and the Regional Private Sector. This is not altogether strange, for Regional Public-Private Sector dialogue, as the one being held here today, has been going on for some time now, and is mandated by the CARICOM Heads of Government. It should also be pointed out that CAIC has a seat at the table of CARICOM Heads.

I take pride in saying that many of the areas of focus in this meeting are consistent with what we in Grenada have elevated to the status of the highest priority, otherwise referred to as our transformative economic sectors.

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In our budget presentation in January 2010, we identified these transformative sectors to be the following: · Health and Education Services; · Tourism and Hospitality Services; · Energy Development; · Agribusiness; · Information and Communication Technology.

Ladies and Gentlemen, please allow me share with you some of the thinking of our Government with respect to some of these matters.

Health and Education Services With regard to HEALTH CARE the challenge we face across the region is how to take a more strategic view of this sector in the context of the contributions it can make, not just in improving the quality of life of people, but in terms of its wider macro-economic potential. We need to undertake health care projects that will give our nationals first world health care, provide platforms for developing medical tourism, earn foreign exchange, facilitate the preparation of health professionals, as well as create linkages to other economic sectors.

Teaching hospitals can do exactly that.

EDUCATION represents another area within the service sector which provides for significant economic transformation. Tertiary Educational Institutions like institutes of Technology can dramatically improve the human resource stock and technological capabilities in a country, as well as serve as drivers of heightened economic activity in depressed regions and diversify the export sector in the direction of service exports.

Tourism and Hospitality Services The Recovery of TOURISM in the Caribbean is a legitimate and urgent concern. Before the recession tourism was the fastest growing sector in the economy and was the largest component of our service sector. It is a known fact that, since the recession, the key players in this sector have been trying to devise new and ingenious ways of raising capital to restart the many stalled projects across the region.

Such initiatives are particularly taxing in Grenada, since they are coming on the heels of the massive effort exerted to physically rehabilitate our hotel plant that was wrecked by Hurricane Ivan.

The recovery effort is, however, an opportunity to remodel our approach as a region. We must seize the opportunity to explore new Public-Private partnerships in this sector. This partnership can and should cover a wide spectrum of collaboration.

Governments are challenged to move beyond the provision of fiscal incentives and regulation. The industry requires a more pro-active intervention on the part of Government that involves joint ventures, joint exploration of sources of finance, as well as a shared responsibility for the generation of airlift and the development of tourism products. This new, pro-active approach, is the approach that the Government of Grenada is following.

AGRIBUSINESS In the area of Agribusiness we start with the basic realization that the pursuit of agriculture improves our food security as a nation.

Yet, we must accept that the full exploitation of the opportunities arising from agricultural based activities go far beyond the production and sale and consumption of agricultural products in their unprocessed form.

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We recognize that the pursuit of secondary and tertiary alternatives derived from food processing and the development of toiletries, cosmetics and pharmaceutical products create infinite opportunities to strengthen our manufacturing base, consolidate the inter sectoral links in our economy, boost exports and foreign exchange earnings, and resuscitate the rural economy by creating long term employment and income.

To that end we believe that Caribbean countries must consciously and deliberately identify and develop niche products for the export market so as to further integrate themselves in the global economy.

Energy Development The question of ENERGY is of such critical importance that it dictates the need for a whole new paradigm of thinking among policy makers. We all understand that the energy question is not purely a Cost Of Living matter.

The dialogue around alternative and renewable energy needs intensification, but more importantly this dialogue must lead to concrete action. Mindful of our fragile ecology we developed a draft sustainable energy policy that encompasses: • Oil and Gas exploration, including the resolution of the attendant prerequisites, namely, delimitation of our maritime boundaries, existing contracts and new partnerships; • The Petrocaribe arrangement, including the issues relating to the security of supply and the timely and adequate servicing of Grenada's financial obligations under the arrangement; • Energy Conservation and Efficiency; • Relationships with existing Oil Companies and Dealers, including the issues relating to pricing, supply and storage; • Relationship with Grenlec, the sole supplier of electricity in our country; • The development of Renewable/alternative sources of energy, including solar, wind, geothermal natural gas and bio fuels; and • The development of the appropriate legal and institutional framework within which our energy policy and strategy is to be given life.

The implementation of a regional energy policy will necessitate harmonious action between Regional Governments and Private Sector entities such as utility companies who are heavy users of fossil fuel.

Regional collaboration and accommodation in matters relating to Law of the Sea will also be a critical precondition to the peaceful delineation of maritime boundaries, leading the way for the possible sustainable exploitation of hydrocarbons. New investments in the energy sector provide new opportunities for partnership between Governments and Private Sectors.

ICT I have noted with interest the topic of the keynote address for the dinner later, scheduled for later today.

“Competing in a Technology Driven Global Market Place” I want to commend the choice of topic and speaker. It is good that businessmen and politicians are prepared to sit down and discuss

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issues like these. As a region we have not done enough to move our ideas from the laboratory to the market place. Similarly, we need a commitment to encourage our producers in the Private Sector to embrace appropriate technology regardless of where it comes from.

As far as the use of ICT goes we are aware of what ICT is doing to raise productivity and service levels globally, as well as transforming the Doing Business climate.

In Grenada and the region we must make sure and reap our fair share of the ICT revolution. We look forward to the implementation of several ICT investments including the development of a National ICT Network and an ICT Centre.

In wrapping up I wish to return to the subject of PARTNERSHIP. Our policies and blueprints will remain policies and blueprints if we do not practice PARTNERSHIP. Our Government values the partnership we enjoy with the Private Sector and other Civil Society groups. We created an Office of Private Sector Development in order to administratively facilitate the partnership with the Private Sector.

Since taking office we have implemented a number of major reforms and have sought to do so in partnership with our social partners. The Value Added Tax was introduced after hundreds of discussions with various interest groups, including the Private Sector interest groups.

Many adjustments to the draft legislation were made as a result of these consultations. The Investment Promotion Act and other business related legislation were crafted by committees with multisector representation.

We continue to look for new ways to work as an active partner with the Private Sector, including engaging individual developers with a view to giving institutional support to their projects and fast tracking where possible. The Private Sector in Grenada and in the region will need to take a more proactive role in engaging Governments. It will not be enough to respond when Government calls. It is important to initiate contact and come with solutions! The nature of the courtship requires a review and some change.

It has been said before, but it is worthy of emphasis. In order to survive we have to be prepared to make changes that may be somewhat uncomfortable at first. We have spoken about the need for economic diversification and in this regard, the development of agribusiness. This will happen when business men and women in the commercial and manufacturing sector step out of their comfort zone and bring their business culture to the farming community. It will require direct investments and partnerships.

The regional integration process will also require a change in our thinking. In our Investment Codes we will be forced to redefine such words as Foreign Investor and Domestic Investor.

As I indicated earlier the present global situation requires a new and more strategic level of engagement. Petty territorial sectarianism and insularity will have to give way to a new openness. The global situation demands it.

Here in Grenada, we look forward to moving beyond the crisis into better economic times, towards a sustained and collaborative future in an integrated Caribbean.

Once again congratulations and best wishes in your deliberations and for the success of your 5th Annual Private Sector Conference. I THANK YOU.

14

Facts Fun &

Have a laugh...

Did U Know?

! That the District Revenue Office (DRO) in

Paying in advance

Grenville has been temporarily relocated to upstairs the Agricultural Office on Seaton James Street, Grenville?

A motorist, driving by a Texas ranch, hit and killed a calf that was crossing the road. The driver went to the owner of the calf and explained what had happened. He then asked what the animal was worth.

Due to a fire in Grenville on Sunday June 27, 2010, the offices had to be relocated due to damages sustained.

"Oh, about $200 today," said the rancher. "But in six years it would have been worth $900. So $900 is what I'm out."

The motorist sat down and wrote out a check and handed it to the farmer.

All payments, including the payment of Property Tax, Vehicular Licenses, VAT and other fees and taxes can be made as normal at the temporary location.

"Here," he said, "is the check for $900. It's postdated six years from now."

Fun Facts

!

Repairing the phone

A person cannot taste food unless it is mixed with saliva. For example, if strong-tasting substance like salt is placed on a dry tongue, the taste buds will not be able to taste it. As soon as a drop of saliva is added and the salt is dissolved, however, a definite taste sensation results. This is true for all foods. Try it!

! Clans of long ago that wanted to get rid of their unwanted people without killing them used to burn their houses down hence the expression "to get fired."

! The only 15 letter word that can be spelled without repeating a letter is "uncopyrightable".

Riddle How could all of your cousins have an aunt who is not your aunt?

Ans: Your mother is their aunt Imagine you are in a sinking rowboat surrounded by sharks. How would you survive?

Ans: Quit imagining What did the doctor say to the man who complained he was shrinking?

Ans: You will just have to be a little patient

A friend of mine was a frequent user of a pay telephone at a popular truck stop, and was greatly inconvenienced when the phone went out of commission.

Repeated requests for repair brought only promises.

After several days, the phone company was again contacted and told that there was no longer a rush.

The phone was now working fine--except that all money was being returned upon completion of each call.

A repairman arrived within the hour!

Quotations "The people who get on in this world are the people who get up and look for the circumstances they want, and, if they can't find them, make them."

- George Bernard Shaw “Being happy doesn't mean everything's perfect, it just means you've decided to see beyond the imperfections.”

- Unknown

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

Continues on pg. 16

Finance 15 INSIDE

E C I T NO CANCELLATION OF REGISTRATION – ABBA ENTERPRISES The general public is hereby advised that effective May 11, 2010 the Grenada Authority for the Regulation of Financial Institutions, GARFIN, has cancelled the registration of Mr. William Aban, trading as Abba Enterprises, to operate as an insurance broker in or from Grenada. This cancellation means that Mr. William Aban and/or Abba Enterprises are not authorized to represent or act on behalf of any insurable risk in Grenada or to solicit, negotiate or procure insurance or the renewal or continuance of insurance on behalf of existing or prospective policyholders.

All insurance companies registered in Grenada are asked to note the content of this notice and to be guided accordingly.

CONDUCTING OF INSURANCE BUSINESS WITH INSURANCE COMPANIES NOT REGISTERED IN GRENADA The general public and the business community is hereby advised that it is an offence, pursuant to section 11 of the Insurance Act, No. 5 of 2010, to purchase insurance from a company which is not registered in Grenada to conduct insurance business. Under special circumstances, the Supervisor of Insurance, which is the Grenada Authority for the Regulation of Financial Institutions (GARFIN), may grant approval for the purchase of insurance from an insurance company which is not registered in Grenada to conduct insurance business.

The public is further advised that under section 15 (2) of the Insurance Act all registered insurance companies are required to display their Certificate of Registration in a prominent place to which the public has access at each of their business locations. The date of the Certificate should be examined to ensure that the licence is valid at the date of the proposed transaction. A listing of registered insurance companies is published in the Government Gazette, in the local newspapers and on GARFIN's website. GARFIN can also be contacted directly to confirm the registration status of an insurance company.

PUBLIC NOTICE ON WORLD WIDE INSURANCE The public is hereby advised that the company trading as World Wide Insurance Limited is not licensed to conduct insurance business in Grenada. Accordingly, World Wide Insurance Limited is not authorised to sell any class of insurance in Grenada.

All persons who have purchased insurance coverage from World Wide Insurance Limited are asked to immediately contact the Grenada Authority for the Regulation of Financial Institutions (GARFIN). GARFIN can be contacted at telephone numbers 440-6575 or 440-8717 or at its offices at the National Stadium, at Queen's Park, St. George's.

Please be advised that insurance coverage provided by World Wide Insurance Limited is currently not valid.

All affected persons are advised to give this notice their urgent attention.

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.

16 Finance INSIDE

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

FFinance inance INSIDE

What’s Been Happening

GRENADA QUALIFIES FOR OECD WHITE LIST On Wednesday May 19, 2010, Grenada signed Tax Information Exchange Agreements (TIEAs) with seven (7) of the Nordic countries. The Agreements were signed in Paris by Grenada's Ambassador to the European Community, Ambassador Stephen Fletcher and brings to thirteen (13) the number of TIEAs now signed by Grenada. This qualifies Grenada to be placed on the OECD “white list” of jurisdictions which have substantially implemented internationally agreed tax standards. Three other OECS countries signed with these Nordic countries at the same time and also qualify for the “white list”.

In the months prior to this signing, Grenada has been actively engaged in negotiating TIEAs with a number of its economically significant trading partners.

Ambassador Stephen Fletcher This was a requirement of the OECD and G20 nations that countries should subscribe to the principle of transparency in the financial services industry and conclude at least twelve such TIEA Agreements or face sanctions including possible “blacklisting”.

Ms. Helen Roden at Conference

The Workshop was sponsored by the Ministry of Commerce of the People's Republic of China and organized by the Training Center of State Administration of Foreign Experts Affairs.

The Workshop was facilitated by a number of experts and experienced officials in the varying fields, and targeted representatives from developing countries with strong alliances with China. Countries represented included Costa Rica, Ethiopia, Grenada, Indonesia, Lesotho, Mexico, Pakistan, Tanzania, Venezuela, and Zimbabwe.

The thirteen countries with which Grenada has now signed Agreements are the United States, United Kingdom, France, Netherlands, Belgium, Australia, Norway, Denmark, Sweden, Finland, Iceland, Greenland and the Faroes. Grenada has also concluded negotiations with Germany and Ireland and is awaiting a date for the signing of these Agreements.

The signing of these Agreements is a further indication of Grenada's commitment to transparency and international cooperation on tax matters and is consistent with the commitment given by the Minister of Finance, Hon. V. Nazim Burke, in his 2010 budget presentation.

OFFICER ATTENDS WORKSHOP on Introducing Foreign Expertise to Developing Countries", Ms. Helen Roden, of the Policy Unit of the Ministry of Finance, attended a Workshop on "Introducing Foreign Expertise to Developing Countries", in China from May 10 - 31, 2010.

Ms. Helen Roden at Conference

The main objective of the Workshop was to provide participants with a brief understanding of the status, function, and necessity of China's Foreign Intellectual Introduction Programme during their period of economic development, and an understanding of the organization, implementation, and administrative work involved when the Government recruits foreign experts and sends officials for overseas training.

Continues on pg. 18

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

Finance 17 INSIDE

Continued from pg. 17

Seized Vessel Ms. Helen Roden at Conference

The Workshop also aimed to share China's successful experience in importing talents with the developing countries while establishing win-win co-operative relationships and improving its autonomous development ability.

FINANCE MINISTER AT 40th MEETING OF CDB BOARD OF GOVERNORS Minister of Finance, Hon. V. Nazim Burke, attended the 40th Annual Meeting of the Board of Governors of the Caribbean Development Bank (CDB), from May 19 – 20, in Nassau, Bahamas.

The Annual Meeting was preceded by a pre-meeting of the Board of Directors on Monday 17th, and a Meeting of the Procedures Committee of the Board of Governors on Tuesday May 16th. Also on May 16th, the Annual Meeting of the Contributors to the Special Development Fund (SDF) and special seminar on the “Constraints to Growth and Development” was held.

Grenada's participation at these meetings help to guarantee its involvement in key decision making with regard to the policies and strategic priorities of the CDB as well as its specific areas of emphasis in investment and programming. The Minister was accompanied by Mr. Mike Sylvester, Deputy Permanent Secretary of the Ministry of Finance, and Mr. Mervin Haynes, Director of Economic Development and Technical Cooperation at the Ministry of Finance.

CUSTOMS AND RGPF CARRY OUT SEIZURE IN CARRIACOU On Saturday May 1st 2010 at about 2:30 p.m. officers of the Customs & Excise Division along with members of the Royal

Grenada Police Force carried out a routine operation in Carriacou. The operation realized the seizure of 1 (one) schooner and over 350 c/s of contraband goods including beers and stout valued at over $100,000.00.

GRENADA MOVING TOWARDS LOCALISATION OF THE MDGs During the week of May 17-21, 2010, Ms. Jacqueline Massiah, Research Officer in the Social Policy Unit of the Organisation of Eastern Caribbean States (OECS) Secretariat, visited Grenada to meet with representatives of the Government of Grenada and Civil Society to complete a data collection exercise, with respect to the process of localization of the Millennium Development Goals (MDGs).

Ms. Yolande Newton - MDG Focal Point

The localization of the MDGs is a process by which Grenada can adjust the globalised indicators to the local context while also pay attention to the CARICOM specific indicators. At the completion of the localization process, the country will have a policy document that will give a clear reflection of the level of achievement by Grenada, as well as a plan of action for achievement by 2015. The report will also feed into the Regional Report which will be prepared by the United Nations Development Programme, Sub-Regional Office (UNDP/SRO) for this MDG reporting year.

The OECS Secretariat, with the UNDP/SRO for Barbados and the OECS, is assisting Grenada with the process of localization.

Seized Goods

Continues on pg. 19

room of the Public Co-ordinating Service...”

Finance Visit“... thetoengineProject Unit 18 Minister's INSIDE

Continued from pg. 18

During her stay, Ms. Massiah was supported by a local MDG team, headed by Ms. Yolande Newton of the Ministry of Finance, and consisting of members taken from both Government and Civil Society.

SURVEY ON DEMAND FOR HCFC REFRIGERANTS AND EQUIPMENT IN THE REFRIGERATION AND AIR CONDITIONING (RAC) SECTOR OF GRENADA The United Nations Environment Programme, in conjunction with the National Ozone Unit (NOU), Energy Division of the Ministry of Finance, conducted a survey in the Refrigeration and Air Conditioning (RAC) Sector of Grenada on the current consumption and demand for HCFC refrigerants and equipment during the month of May 2010.

During their stay, the delegation focused on exploring investments in the areas of tourism, infrastructure, health and agriculture. In this regard, they met with the Prime Minister; the Ministers and Permanent Secretaries of the relevant Ministries including Carriacou and Petite Martinique Affairs; the Grenada Chamber of Industry and Commerce (GCIC); and the Grenada Hotel and Tourism Association (GHTA).

They also visited some development Projects already started but on hold due to financing constraints, and met with some of the investors responsible for these Projects.

Prime Minister Thomas and Sewang Representative

Minister Church with Executive of The Grenada Refrigeration Air Conditioning and Ventilating Association

The aim of this survey was to collect data that can be used to develop a project that will assist Grenada in phasing out the consumption of Ozone Depleting Substances in the Refrigeration and Air Conditioning Sector.

At the end of their stay, a Memorandum of Understanding (MOU) was signed between the Government of Grenada and Sewang One World Co. Ltd. The signing, on Wednesday May 19th, marked the end of Sewang's investment mission to Grenada and the creation of relationship with the Government of Grenada.

Local refrigeration technicians were duly authorized to conduct these surveys on behalf of the Ministry of Finance and, as part of the process, visited facilities and technicians throughout the island to collect the required data.

The Ministry of Finance would like to take this opportunity to express its gratitude for the kind co-operation and assistance of all stakeholders in the Refrigeration and Air Condition Industry in ensuring the timely completion of this survey.

KOREAN INVESTMENT DELEGATION MISSION TO GRENADA The Office of Private Sector Development of the Ministry of Finance hosted a six-person delegation from “Sewang One World”, an investment delegation from Korea, from May 17 20, 2010.

The delegation was headed by Mrs. Yeja Park, the President/CEO of Sewang One World, a part owner of Hyundai Construction, and a board member of Samsung.

Prime Minister Thomas and Sewang Delegation

Signing on behalf of the Government of Grenada was Prime Minister Hon. Tillman Thomas while Mrs. Yeja Park,

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

Continues on pg. 20

Finance 19 INSIDE

Continued from pg. 19

Ministers of Trade, at the Grenadian by Rex Resorts, St. George's.

Prime Minister Thomas and Sewang Representative signing MOU

President and CEO of Sewang One World Co. Ltd, signed on behalf of the company.

The MOU consists of a commitment by the two parties to explore potential investments in the five lead sectors as indicated in the Government's 2010 budget presentation. The areas are: · Tourism and Hospitality Services; · Agribusiness; · Energy Development; · Health and Education Services; · Information and Communication Technology.

Within the framework of the MOU Sewang One World Co. Ltd made a commitment to engage the Private Sector with a view to partnering for the mobilization of capital and other resources for Private Sector Development.

This mission by Sewang, forms part of the initiative announced by the Minister of Finance in his 2010 Budget speech where he stated that Government will move to new levels of engagement with both local and foreign investors in the spirit of mutually beneficial partnerships in an effort to improve the business climate, a priority of the 2010 Budget.

The APSM is a mandate from the CARICOM Heads of Government and brought together regional Ministers of Finance and of Trade, business leaders, and investors. It acted as the platform to discuss issues including: • The Caribbean Tourism Recovery Plan; • Investment Promotion; • The OECS Economic Union Treaty; • Issuance of Diaspora Bonds, and • A Regional Energy Policy.

It also provided an opportunity to build partnerships, facilitate networking and create trade linkages.

Approximately 100 participants, from Grenada and across the region, attended the event.

The feature address at the opening ceremony was delivered by Hon. V. Nazim Burke, Minister of Finance, while Mr. Nicholas Earle Brathwaite, Silicon Valley Technology Entrepreneur and International Business Executive, delivered the Keynote address at the dinner. His address focused on “Competing in a Technology Driven, Global Marketplace.”

The Annual Private Sector Meeting has been held by the CAIC across the region for the past four years. Grenada was honoured to have the opportunity to host this year's event. (See Minister Burke's speech on page11) CUSTOMS JUNIOR OFFICERS TRAINING From Monday May 3rd and Tuesday June 15th the Customs and Excise Division conducted the Junior Officers Basic Training Course. Twenty-nine (29) Customs Officers, who were separated into two (2) groups, were trained during that period.

GRENADA HOSTS 5th ANNUAL PRIVATE SECTOR MEETING The Caribbean Association of Industry and Commerce (CAIC) in collaboration with the Government of Grenada, on Saturday June 12, 2010, hosted the 5th Annual Private Sector Meeting (APSM) and Dinner with CARICOM Ministers of Finance and

Comptroller Felix (centre) and other Senior Officers at Head Table

Head Table at Opening Ceremony

20 Finance INSIDE

The training was conducted at the ARD Conference Room and at the VAT training room. The facilitators came from within the Customs Division and other government agencies such as the Financial Intelligence Unit (FIU), the Royal Grenada Police Force (RGPF), the Ministry of Agriculture, the Department of Public Administration, the Accountant General's Office and the Ministry of Foreign Affairs.

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

Continues on pg. 21

Continued from pg. 20

PUBLIC FINANCE MANAGEMENT REFORM ACTION PLAN The Ministry of Finance, with technical assistance from CARTAC, will be drafting a Public Finance Management (PFM) Reform Action Plan that will document the Government's priorities and assign a timeline that appropriately sequences the actions to be taken. The development of an Action Plan to guide Government's reform initiatives is expected to enhance and focus implementation efforts, facilitate

Customs Officers at Closing Ceremony

Some of the topics covered during the course were Report Writing, Valuation, Vessel and Aircraft search, Classification, Arrest, Detention and Seizure, Plant Quarantine, Staff Orders, Financial Management Act and Treatment of Diplomats.

A closing ceremony was held at the Public Workers Union Conference Room on Tuesday June 15th, 2010. At the ceremony Certificates of completion were distributed in the presence of some of the facilitators and Customs Administration members.

The Comptroller of Customs, Mr. Carlyle Felix took the opportunity to congratulate the participants for completing the course and reminded them of their responsibility to give of their best at all times since in his words “to whom much is given, much is expected.” He also commended the efforts of Deputy Comptrollers Lyndonna Marshall and Donan Victor, Supervisor Martin Felix and Senior Officer Carvel Lett for working together to ensure that the training was a success.

Officers at Workshop

monitoring of progress, and provide a useful tool for obtaining donor support.

In this regard a consultant team from CARTAC visited Grenada during the week of June 14th 2010 to assist in developing the first draft of the PFM Reform Action Plan. The team facilitated a

OPEC'S FID APPROVES GRENADA'S LOAN APPLICATION Grenada's application for a US$8.5 million loan to finance the second phase of the Agricultural Feeder Roads Project has been approved by the OPEC Fund for International Development.

The approval, by the governing board of the fund, paves the way for the start of work on over 25 feeder roads across the country and would provide jobs for hundreds of workers.

Additionally, the approval of this OPEC loan would have a positive influence on related loan applications which are pending with other institutions, such as the Kuwaiti Fund.

The approval of other feeder road loan applications would allow the Government to embark on the repairs and construction of a greater number of roads than what was previously conceived.

The Government is expected to spend over EC$52 million on the agricultural feeder roads during the next 12 or so months.

The loan is expected to be signed within the next six weeks and plans are being put in place for an early disbursement, in order to commence work across the island.

Permanent Secretary and CARTA Representative at Workshop

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

Continues on pg. 22

Finance 21 INSIDE

Continued from pg. 21

3) The development of Grenada's macro-economic management framework and improving the collection and analysis of statistics required for effective economic planning and management; 4) The implementation of the Economic Partnership Agreement (EPA) and other trade related agreements and obligations; and 5) The implementation of programmes and projects funded by the EU.

Officers at Workshop

workshop of stakeholders followed by individual meetings where required. Participants included members of the Management Team of the Ministry of Finance and Finance Officers of the various Ministries.

Some Members of Staff at EDF/SSU Office, Grenada

The project also provides support for the operations of the NonState Actors Panel – an advisory panel comprising a variety of organisations drawn from the private sector and civil society – to ensure their effective participation in dialogue with the Government and the European Union regarding Grenada's development policies and the use of EU grant funds.

Officers at Workshop

GRENADA RECEIVES ADDITIONAL SUPPORT FROM THE EU The Government of Grenada and the European Union (EU) Delegation to Barbados and the Eastern Caribbean have finalised a project that will provide approximately EC$800,000 for technical assistance and training over the next twelve months. These funds, provided under the Technical Cooperation Facility of the 10th European Development Fund, are expected to build the Government's capacity in a variety of areas, including: 1) The development of a Land and Marine Management Strategy for Grenada; 2) The drafting legislation and regulations to improve the legislative framework for physical development planning;

22 Finance INSIDE

Welcome

TO ALL NEW MEMBERS OF STAFF

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

Ministry of Finance Achievements Continued from pg. 24 • Chartered Accountants Bill – The bill was passed by the Lower House in June. This Bill aims to improve accounting standards in Grenada.

TAX REFORM • VAT & Excise Tax – Successful implementation of the VAT and Excise Tax. VAT collections are encouraging, notwithstanding the fact that the economy is still depressed. Commitment of 2010 Budget ECONOMIC MANAGEMENT • PRGF & ECF – Successful completion of the PRGF to the point where Grenada was in a position to enter into a new arrangement. The IMF Board granted approval of the Extended Credit Facility on April 2nd, 2010. Grenada received its disbursement of EC$5.25M on 19/4/10. Commitment of 2010 Budget • Jobs – Based on NIS data, 360 permanent jobs have been created for the year so far.

• Economic Growth – Preliminary data from the ECCB suggests that Grenada is one (1) of two (2) countries that has experienced growth in 2010. The recovery is slow based on what is happening in the USA and Europe.

• Credit Rating – Standard and Poor's reaffirmed Grenada's ‘B-/C’ credit rating in June 2010. “This rating validates the Government of Grenada's commitment to strong economic management as stated in the 2010 Budget Speech.”

• New Customs Tariff – Effective 01 February 2010, a new Tariff was implemented by the Customs and Excise Department. This is part of the Customs modernization process.

WASTE REDUCTION • Telephone Services – Signed a new two - year agreement with LIME which reduces the cost of mobile services. This will save Government over EC$523,000 over the next two (2) years. Government is currently negotiating a new agreement for broadband and internet services which should also see reductions in the cost.

Commitment of 2010 Budget PRIVATE SECTOR DEVELOPMENT • Levera Project – Progress has been made with the Levera Project. All the major non-financial constraints have been removed; the investors should be ready to commence project in six (6) months time.

• Zublin - Cabinet has reached a decision on the Zublin proposal. They have decided not to endorse the Project in its present state.

• Virgin Beach Project – expects to start a more expansive way in September 2010.

• Four Seasons – The Government has issued a notice to the developers based on their non-performance of the contract.

• Teaching Hospital – Discussions are currently in progress for the development of a Teaching Hospital in Grenada. It will likely be a public/private sector arrangement.

• Potential Investors – A Korean investment group, “Sewang One World”, visited Grenada on an Investment Mission from May 17 – 20. (More on page 19) OTHER

DOING BUSINESS

• A committee has been established to work on the Energy Relief Programme (Illuminating Lives and Energising Hope). The project is being developed. Commitment of 2010 Budget

• ASYCUDA – Commencement of new IT platform for Customs. It was launched on June 30th, 2010. It is intended to speed up processing time and improve the collection of Government's revenue.

Commitment of 2010 Budget

• GRENLEC has done preliminary geochemical work on renewable energy sources.

• The European Union is looking into a Project for Wind Energy in Carriacou.

• An ICT Project, which is likely to get full support from the World Bank, has been developed for Grenada.

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

Finance 23 INSIDE

Ministry of Finance…..

ACHIEVEMENTS

JANUARY – JUNE 2010

Minister Burke reviewing TIEA documentation with Ambassador at the Kingdom of Netherlands

FINANCIAL PERFORMANCE •

•

Signing of TIEAS – On Wednesday May 19, 2010, Grenada signed Tax Information Exchange Agreements (TIEAs) with seven (7) of the Nordic countries which brings the number of TIEAs signed to 13. With this signing, Grenada has surpassed its target and is now ‘white listed’ by the OECD. This means that Grenada is now up to national standards in terms of tax information exchange. Commitment of 2010 Budget (More on page17) Enactment of New Insurance Act – Came into being on March 26th 2010. This Act brings tighter regulation of the sector, requiring the establishment of a Statutory Fund to ensure that there are assets locally

assigned to cover local liabilities. This is currently being done. The insurance industry is responding well. Onsite inspection of Insurance Companies will commence this month. Commitment of 2010 Budget • Continued Consolidation within the Credit Union Movement – Mergers of credit unions have taken place, for example, the St. Patrick’s Credit Union and the Public Workers’ Union have merged. Other mergers are in progress, for example, Western Credit Union and Grenada Union of Teachers.

• Co-operatives Bill – The Bill had its first reading in the Lower House last month and should come into force by the end of this month.

Continues on pg. 23

Ministry of Finance, Planning, Economy, Energy & Co-operatives 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