Inside finance - Volume 6, Issue 4, July - September 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 4, July - September 2010

MINISTER BURKE HOLDS CHAIR OF ECCB MONETARY COUNCIL

The Chairmanship of the Monetary Council of the Eastern Caribbean Central Bank (ECCB) was handed over to Minister V. Nazim Burke, on Friday July 16th, 2010, when the Monetary Council held th its 67 Meeting, here in Grenada at the Grenada Grand Beach Resort.

The meeting witnessed the coming together of the Ministers of Finance of the Eastern Caribbean to discuss the Governor's report on monetary and credit conditions of the region. The meeting also received an updated on the Eight Point Stabilisation and Growth Programme and reports from the various sub-committees on economic reforms and financial issues.

• Read the text of the Minister's speech upon accepting the Chairmanship on page 3.

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

Am I Proud of My Job? Just browsing the internet one day, I came upon this interesting article entitled “Five Ways to Put Pride, Energy and Ownership Into Your Job.” The article was written by someone called Kristin Robertson.

What really got my attention was the story which the author told as a preface to the article. It goes as follows: “The scene was a late Friday night at O'Hare airport in Chicago. The flight was delayed and all the passengers were crabby. As they entered the aircraft, passengers were greeted by the first class flight attendant, who had a personality that filled the aircraft! "Welcome aboard, and how are you doing tonight?" he would ask each person as they boarded. When a young mother with a crying toddler came on, he greeted the young girl with, "Honey, it's your lucky day -- you get to fly on my airplane tonight!" As the aircraft pulled away from the gate, he continued his banter during the safety briefing announcements, making jokes and wisecracks, and encouraging the other flight attendants to do the same.”

The author was a passenger on that flight and explained that the experience got him or her thinking how remarkable this attendant was to have such 'positive spirit' in such challenging times. A time when flight attendants and other customeroriented employees of the airline industry tend to be demotivated, demoralized and tired, being faced with salary cuts, longer working hours, limited room for advancement, terrorism in the skies, and the list goes on. All this explained the author, made the attendant's performance that night, “unusual and noteworthy.” The most noticeable thing about the attendant was the pride, energy, and ownership he put into his job.

How many of us are proud or satisfied with what we do? Is the job you are doing now what you aspired for when you were younger? Is this where you want to be? I am sure you always hear people say “I am just hanging onto this job until I get something better to do”. What does this mean really, since most of them have been there for years (too many to count)? A major complaint in the education system is that the 'young' teachers use teaching as a stepping stone to get where they want to be and so are not dedicated to the job. Therefore, they do not give of their best.

Why is this so? Is it because we cannot find what we want? Or do not know what we want? Or is it that what we want is not available at the point in time? A recent survey in the USA revealed that because of the current economic situation many people today feel stuck and unappreciated in their jobs, because options are just not available.

This being the case does not mean that we have to give mediocre performance and do the job 'just because it's a pay check at the end of the month'. It may not be the best job situation there is or the job of one's dreams, but when employed by someone, it is only fair that you deliver what you are asked to do 100%. It makes no sense going on the job in a lack luster manner, with a poor attitude and constantly complaining about the situation, with the thinking that you are just here for 'awhile'. You may be surprised to find that 'awhile' could turn out to be the rest of your working life. In the long run, a negative work attitude will only serve to hurt you because your performance record will remain with you for life. You took the job, so make the best of it! It is the responsibility of each worker, from the highest to the lowest paid, to take pride in their job and do it to the best of their abilities.

The following are some tips on how one can take pride in their jobs. These tips were taken from the article by Kristin Robertson.

1. Decide to give it 110%: What your mother told you is true: if a job is worth doing, it is worth doing right. Do it to the best of your ability. Own your job output and put your good name on it.

You don't have to love your boss, have the perfect co-workers or the best working conditions to take pride in your work and go the extra mile to ensure high quality results. Notice, however, that we are talking 110%, not 200% percent. There are many overachieving executives who have exhausted themselves trying to be all things to all people in a difficult environment. Pace yourself, set priorities, identify the areas that you can exert the most influence and delegate or defer the rest.

2. Exert control over what you can: You may not have control over all aspects of your job, but you can identify areas that you do control and focus on them. The flight attendant had control on the airplane he was on, and he focused on how he could influence the atmosphere of that environment. You may not be able to influence the performance targets the Vice President sets, for example, but if you are a manager or director, you do have control over how you communicate them to your work group. Concentrate on supporting your group so they can do the best work possible. Then try to let go of the need to control what you cannot.

3. Make it fun: We spend too much time at work not to have a little fun at it! The flight attendant customized his safety announcements, using his own talents, to make it amusing.

Although not everyone is a comedian, we each have a unique approach to humour and having fun. How can you give your coworkers a smile and make their day? How can you lighten up your workplace?

4. Speak and act positively toward co-workers: If you change your attitude and behaviour, often other people will change, too.

Sometimes people get locked into a negative relationship with a Continues on pg. 6

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

REMARKS BY THE INCOMING CHAIRMAN OF THE MONETARY COUNCIL OF THE ECCB THE HONOURABLE V. NAZIM BURKE, MINISTER FOR FINANCE GRENADA 16 July 2010 consequence of these realities, the ECCU is projected to underperform for a second consecutive year with a decline of 2.3 per cent being projected. It is our fervent hope that the Currency Union will emerge from recession next year when it is forecast to grow by 1.8 per cent.

Without doubt, the past year was one of the most challenging for our region. In this regard, I must express my profound admiration of the Heads of Government of the Currency Union and the Ministers of Finance for the manner in which they have collaborated. During the year, the OECS Authority and ECCB Monetary Council met in joint sessions to address some very challenging issues and to assess progress on the implementation of Eight Point Stabilisation and Growth Programme.

On this note, Ladies and Gentlemen, I wish to applaud Prime Minister Ralph Gonsalves for his strong leadership of these joint sessions.

Hon. V. Nazim Burke I am delighted to extend a special welcome to our visiting delegations. Welcome to the Spice, the Isle of Spice! We are honoured to have you here in Grenada.

I congratulate my predecessor, Honourable Roosevelt Skerrit, Prime Minister and Minister of Finance of Dominica, on his successful chairmanship during a very difficult period for the Eastern Caribbean Currency Union (ECCU).

This morning, I am honoured and humbled to assume the chairmanship of the Monetary Council for the next year. I am conscious of the many challenges which confront us but confident that, as a Currency Union, we will achieve our goals.

As a Council, we work diligently to implement all elements of the Eight Point Stabilisation and Growth Programme but our top priorities will be maintaining financial stability and resuming economic growth. I will return to these priorities shortly.

Ladies and Gentlemen, the leading economic indicators for the major economies continue to improve suggesting that the global economic recovery is gaining some momentum. That said, we note that the recovery is slow and accompanied by a great deal of uncertainty. Consequenttly, tourist arrivals and private capital inflows are likely to remain below pre-crisis levels in the nearterm. This situation is having a dampening effect on government revenue and is keeping unemployment at elevated levels. As a

The official signing of the Eight Point Stabilization and Growth Programme in December 2009 and the signing of the Treaty of Basseterre establishing the OECS Economic Union are our key responses to the global economic situation. They are the platform upon which the economic future of our region now rests. We must now work them, so they, can in turn work for us.

With respect to financial stability, the Bank will closely monitor threats to financial sector stability. In particular, it will develop and implement resolution tools to address weak banks. As the regulator of commercial banks, the Eastern Caribbean Central Bank has played and continues to play a very critical role in the stability of the financial system within the ECCU. Nevertheless, the ECCB, by itself, cannot assure the stability of the financial system. Governments and financial institutions must also play their part. Governments have a responsibility to regulate the non-bank financial sector since the chain is as strong as it weakest link. By non-bank, I refer to insurance companies and credit unions among others.

For that reason, the implementation of single regulatory units across the Currency Union must remain a very high priority this year.

In that regard, the commitment of the Government of Grenada is now being demonstrated by the enactment of modern financial legislation and significantly better supervision of the non-bank financial sector through the Grenada Authority for Continues on pg. 4

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

Finance 3 INSIDE

Minister's Note cont'd from pg. 3 the Regulation of Financial Institutions (GARFIN). Ladies and Gentlemen, I am pleased to note that GARFIN is earning respect both at home and abroad and is now considered as a model in the Eastern Caribbean Currency Union.

In the past year, Grenada has passed ECCU harmonized legislation in money transfer services, payment systems and insurance.

Since its inception as a statutory body in 2007, GARFIN has made remarkable strides. It has: · · ·

recruited qualified and competent staff from both the public and private sectors; embarked on intensive staff training given the dynamic nature of the financial sector; and strengthened its original legislation to ensure its powers to effectively supervize through the provision of rights to demand information and conduct inspections.

We are all painfully aware of the current hardships being experienced by policyholders of British American and CLICO insurance companies as a consequence of CL Financial's difficulties. With the implementation of the new Insurance Act in March of this year, GARFIN has commenced on-site inspections of insurance companies. Furthermore, GARFIN has requested and received submissions from most insurance companies on the establishment of statutory funds to ensure that all liabilities in Grenada are covered by fully pledged assets.

As I said in January of this year when I presented the 2010 Budget, insurance companies that do business in Grenada must maintain assets in Grenada to cover their liabilities. This means that the practice by some companies of simply collecting premiums, investing them abroad while maintaining little or no assets where the premiums are collected is not permitted. This provision is necessary to ensure insurance company is not left naked and helpless if the parent company runs into difficulty.

GARFIN has also commenced supervision of pension funds under the new Insurance Act. In the past year, GARFIN undertook on-site inspections of all the major credit unions and will complete inspection of all credit unions this year. Working closely with the Co-operative Credit Union League, it has facilitated the merger of some smaller credit unions with the three major credit unions. This is an important step towards consolidation, stronger regulation, and ultimately, consumer protection in respect of financial cooperatives. The new Cooperative Societies Bill is currently before Parliament and will be passed by August of this year.

I have taken time to share Grenada's recent experience because it is noteworthy. More importantly, I urge fellow members of Council to stay aggressive with the implementation of these the reforms and to draw lessons and support from our recent efforts in Grenada.

Colleagues, Ladies and Gentlemen, the high rates of unemployment across the Currency Union are a source of grave concern for all of us. If we are to effectively tackle high

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

Minister's Note cont'd from pg. 4 unemployment and reduce poverty, our economies must return to growth in the shortest possible time.

Our already high debt levels across the Currency Union mean that we cannot borrow our way out of this recession.

If we had any doubts, we just need to look at the recent experience of Greece and other European countries which have over-borrowed trying to spend their way out of recession. In recent weeks, we have seen developed countries in USA and Europe announce measures to cut their budget deficits. This means that developed countries could find themselves in a pattern of low growth or worse in the next several years. The implication is clear. We must ensure our fiscal houses are in order through resolute fiscal consolidation and strong economic management.

So how will we resume growth?

We must tap into the areas of global growth for which may have a comparative advantage. These areas include: tourism, health and wellness services, agribusiness and ICT. We can pursue these investments through the private sector and public-private partnerships.

We must continue to mobilize resources from the international community on the best possible terms. We must also engage traditional and non-traditional bilateral sources of funding to support our public sector investment programmes.

Within the Currency Union, ECCB will seek to improve the operational efficiency of the Regional Government Securities Market (RGSM) and support the participation of a more diversified investor base while also encouraging greater participation of member states on the market.

As we seek to resume growth, we must not merely work harder. We must work smarter; accomplishing more with less. This imperative applies to each of us - individuals, companies and Governments.

All of my comments thus far have been directed at what the Bank and the Governments must do but our citizens also have a key role to play in our recovery.

Ladies and Gentlemen, every country that has experienced sustained growth and prosperity has done so through innovation and higher levels of productivity and entrepreneurship. Based on this experience, our current efforts at improving the business climate must be accompanied by improved work attitudes and a versatile and flexible labour force capable of delivering world class services.

Ladies and Gentlemen, it is reforms combined with strategic investments in our human capital and infrastructure that will position our economies to take maximum advantage of the upswing in the global economy.

These are the factors that are likely to make a significant difference to how fast our economies grow and how sustained that growth will be. “... the engine room of the Public Service...�

Finance 5 INSIDE

Minister's Note cont'd from pg. 5 Staying with reforms, I must also state that our current drive in the area of Public Sector Modernization is essential not just from the standpoint of fiscal consolidation but also in enhancing our competitiveness as small states.

Ladies and Gentlemen, this year marks the 34th anniversary of the pegging of the EC dollar to the US dollar at the rate of EC$2.70 to US$1.00; an achievement which we should not take lightly and should never take for granted.

As the incoming chairman of the Monetary Council, I wish to express the Council's commitment to protect the integrity of the

EC dollar, despite the challenges that confront us, and in support of the development aims of the Currency Union.

Ladies and Gentlemen, I now accept the chairmanship of the ECCB Monetary Council with honour and humility. I look forward to the support of my fellow Council members, the Board of Directors, Management and staff of the Bank as we pursue financial stability and growth and work to transform our economies for the benefit of our people.

I thank you all.

(Pictures in article compliments ECCB)

Editor's Note cont'd from pg. 2 co-worker or manager because of personality differences, miscommunications, annoying personal habits or past affronts. If you find yourself in this position and the other person is basically an OK person - not a bully and not acting illegally or unethically - try this experiment for two weeks and see if it makes a difference: Speak and act only positively to that person. Compliment the person when it is warranted.

Notice the good things they do. Support them in their job. Do not speak disparagingly about that person to anyone, including your spouse or partner. If you are able to do this for just two weeks, it is highly likely that you will notice that the other person responds in kind, and that you have repaired the situation. The result: a happier, less stressed YOU. 5. Practice extreme self-care: If you are in a high-stress job, take good care of yourself. Self-care is highly individual and dependent on life stage, financial resources and time constraints. Seek ways to manage your stress and balance your energies in ways that make sense for your situation.

Simple self-care can include taking time to walk outside at lunchtime, talking to a good friend and having an active social life. Self-care might also include massages, regular exercise, and, ironically, community service. Community service can broaden your perspective by getting you out of your normal environment and can fulfill the human need to serve others.

By applying these pointers it is believed one's attitude to work will change and this in turn will change the entire work atmosphere.

And as Kristin said in the article: “take a lesson from the flight attendant, and you may find that the job you thought was less than perfect is actually pretty darn good,” after all.

So set high standards for yourself, smile, be proud of what you do, even pretend that you like what you are doing, if you have too; who knows, you may eventually do!

FINANCIALTip - Give yourself a pocket money allowance. Your spending should not exceed your allowance. After the money is gone, it's gone.

- Never enter a store without a predetermined spending limit.

- Pay cash. Interest and fees can quickly transform that great bargain into an overpriced extravagance.

- Avoid impulse purchases.

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

Statement by the IMF Mission to Grenada September 28, 2010

Ms. Nita Thacker

Ms. Nita Thacker, head of an International Monetary Fund (IMF) staff mission to Grenada, issued the following statement today at the conclusion of the mission: “An IMF team visited St. George's during September 20–28 to conduct discussions on the first review of the government's economic program that is supported by the IMF's Extended Credit Facility (ECF) approved by the Fund's Executive Board on April 2, 2010. The focus of the mission was to assess performance under the

but the containment of capital spending kept overall outlays in line with the budget. Higher than expected grants from donors, with the associated adjustments of the IMF targets, also gave the authorities extra fiscal space to undertake some countercyclical policies. As agreed under the program, no new external loans were contracted to ensure that the debt burden does not increase and quarterly budget reviews with line ministries helped to ensure that spending plans matched available resources. Domestic arrears have also declined.

Significant progress was also made on meeting the structural benchmarks under the program. Significant progress was made in streamlining the government's bank accounts and the process towards establishing a Single Treasury Account is well underway.

The Grenada Authority for the Regulation of Financial Institutions

Ms. Nita Thacker, Hon. Nazim Burke and Mr. Timothy Antoine

program at end-June 2010 and review recent economic developments. The mission held discussions with the Minister of Finance Hon. V. Nazim Burke and other cabinet ministers, senior officials of the Ministry of Finance, heads of statutory bodies, representatives from the political opposition, labor unions, and the financial sector as well as the business community. The mission would like to thank the authorities, the technical staff at ministries and the private sector for their excellent cooperation.

EU, ECCB and CDB Representatives

The authorities have made significant progress in implementing their economic program. Based on the information received to date, all quantitative targets for end-June 2010 appear to have been met, despite a very difficult external and domestic environment.

Revenue collections in the first half of 2010 were in line with projections. Spending on goods and services was somewhat higher,

Members of the IMF Team

(GARFIN) is working closely with insurance companies to complete the establishment of statutory funds as required under the Insurance Act of 2009, and is currently conducting on-site inspections of these entities to ensure a healthy financial sector.

The authorities have updated the draft letter of intent that outlines policy responses to the challenges posed by the difficult economic environment and high debt level. The authorities remain firmly committed to the program's policies and objectives, which aim at fiscal consolidation to reduce the debt-to-revenue ratio and hence free up resources for priority spending, address the strains in the financial sector to ensure that the sector remains strong, and improve the business and investment climate to achieve broadbased economic growth, increase employment, and reduce poverty.

However there are significant downside risks, given the still uncertain economic external environment. Efforts regarding expenditure and debt management, customs reform, and enhanced efficiency of social spending will help Grenada tide over these challenging times. Upon the team's return to Washington, it will prepare the necessary documentation for Executive Board consideration, expected to take place mid-November. Approval by the Board will result in the disbursement of SDR 1.25million (about US$1.89 million).”

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

Finance 7 INSIDE

GROWTH AND POVERTY REDUCTION STRATEGY IN THE MAKING FOR GRENADA The development of a Growth and Poverty Reduction Strategy (GPRS) for Grenada went into 'high gear' on Monday (September 6, 2010) when the National Assessment Team and Government representatives held a first briefing session with representatives from the Caribbean Development Bank (CDB) and the Cultural Marketing Community (Caribbean) Ltd., the consultants contracted to develop the strategy.

The need for the development of the GPRS is an outcome of the results of the Country Poverty Assessment Survey and the assessment of the national social safety nets programmes which were completed in 2009. These results pointed to the fact that Grenada's poverty rate increased by 5.6% between 1998 and 2008, even though Grenada has a wide range of safety nets programmes. This revelation identified the need for Government to reassess the current safety net initiatives and, according to the

The development of the Strategy will also put Grenada in a better position to unlock funding from various development agencies.

The time frame for the development of the strategy is four (4) months.

The strategy is being developed with support from the CDB. Consultants with CDB Representative

Minister of Finance in his 2010 Budget Speech, placed Government in a better position to more effectively target its response to the poor and vulnerable in the country.

The aim of the strategy is to transform Grenada's poverty landscape over the next few years by developing an action plan to address the factors responsible for poverty and reduce the incidence of poverty in the country.

Deputy Permanent Secretary Mike Sylvester and other participants at meeting

There was life before An application was for employment A programme was a TV show A cursor used profanity A keyboard was a piano!

the computer the computer

I guess I'll stick to my pad and paper And the memory in my head I hear nobody's been killed in a computer crash But when it happens they wish they were dead!

Memory was something that you lost with age A CD was a bank account!

And if you had a broken disk, It would hurt when you found out!

Unknown

Compress was something you did to garbage Not something you did to a file And if you unzipped anything in public You'd be in jail for awhile!

Log on was adding wood to a fire Hard drive was a long trip on the road A mouse pad was where a mouse lived And a backup happened to your commode!

Cut - you did with a pocket knife Paste you did with glue A web was a spider's home And a virus was the flu!

8 Finance INSIDE

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

World 2010

World Ozone Day was celebrated throughout the world on Thursday September 16th 2010.

For the first time ever, the National Ozone Unit (NOU), of the Energy Division of the Ministry of Finance, Grenada, organized a week of activities to commemorate World Ozone Day. Under the theme, “Ozone Layer Protection: Governance and Compliance at their best”, this year's activities began with the erection of a banner, displaying the theme, on September 1st, at the front of the NOU's Office on the Carenage, St. George's. This was done as a means of creating awareness of World Ozone Day. During the week of activities, which ran from September 13th – 16th, daily radio quizzes were held on two local radio stations.

On Monday 13th September, a special ceremony was held at the Wesley College to recognize young Jonissa Auguste, a student of the school, who created the painting that was used for the calendar that was produced by Ozone Officers of the English Speaking Caribbean as a regional public awareness activity. Jonissa received a cheque for EC$500.00 and a certificate of recognition.

At the school, the NOU also took the opportunity to make two presentations to the school body. They were presented with: 1) A billboard with the painting created by

9

World 0 201 Jonissa. This billboard was unveiled at the school following the assembly; and 2) Poster size paintings of art – given to each classroom and the staffroom.

Mr. Smith, the Ozone Officer of the NOU, used the opportunity to remind the students and teachers of the need to protect the Ozone Layer and the effects to human health by destruction of the ozone layer. He advised them on protecting themselves from the damaging effects of the ozone layer depletion.

Another major activity of the week was the launch of a scholarship programme in which ten (10) students received full two year scholarships to attend the T.A. Marryshow Community College in order to complete the Refrigeration and Air-conditioning programme there. The scholarship package includes financial assistance to cover all of the associated costs for the two year programme, as well as toolkits for practical purposes. Funding for the scholarship program is provided by the United Nations Environment Programme (UNEP), through the NOU, as part of Grenada's Terminal Phase-out Management Plan (TPMP) for Chlorofluorocarbons (CFCs). The tool kits were provided by the Grenada Refrigeration, Airconditioning and Ventilating Association (GRAVA).

The total cost of the scholarship programme is approximately EC$15,000.00.

In addition to the presentation of scholarship packages, presentations were also made to TAMCC. The Grenada Refrigeration, Airc o n d i t i o n i n g a n d Ve n t i l a t i n g Association (GRAVA) presented TAMCC with a Recovery and Recycling machine for Mobile Air-conditioning Systems, valued at over US$5,000.00.

This presentation was made by the President, Mr. Michael Mitchell. The National Ozone Unit

10

World

0 201 presented TAMCC with a package of tools and equipment, valued at EC$3000.00, to be used to enhance their refrigeration and airconditioning programme. This presentation was made by Mr. John Auguste, Senior Energy Officer at the Ministry of Finance.

Scholarship awardee, Denis Lyons, thanked the NOU and GRAVA on behalf of the ten awardees and pledged that they will take full advantage of the scholarship opportunity to enhance their ability, create opportunities for self employment, and contribute to the protection of the ozone layer.

The highlight of the week's activity was a Student March and Rally on September 16th. Approximately 250 students and teachers from secondary schools throughout Grenada converged in the capital city, St. George's, and marched through the streets carrying banners and waving placards displaying ozone protection messages. This attracted several onlookers and persons were seen lining the streets to view the march and to give support to the participants.

The march terminated with Student Rally at the Grenada National Stadium. At the rally the students were addressed by: • National Ozone Officer, Mr. Leslie Smith; • Schools Activities Co-ordinator from the Ministry of Education, Mrs. Michelle Warrick; • Minister for Environment, Honourable Michael Church, who delivered the feature address; and • A student at the Beacon High School, Ms. Isis Richards, who read the address sent by the United Nations Secretary General, Mr. Ban Ki moon.

11

World 0 201 Other highlights of the rally included: • The presentation of prizes to the winners of the World Ozone Day radio quiz; and • The rendition of an original environmental song by the students of the Wesley College, much to the delight of the student audience.

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Facts Fun &

Have a laugh...

Did U Know?

•

That persons who provide public entertainment must be registered for VAT whether or not they make EC$120,000 per annum.

•

That July 11th 2010 was designated as World Population Day by the United Nations.

•

That October is designated Financial Information Month in the Eastern Caribbean Currency Union (ECCU) member countries.

The problem is at your end One of Microsoft's finest technicans was drafted and sent to boot camp. At the rifle range, he was given some instructions, a rifle, and bullets. He fired several shots at the target. The report came from the target area that all attempts had completely missed the target.

The technician looked at his rifle, and then at the target. He looked at the rifle again, and then at the target again. He put his finger over the end of the rifle barrel and squeezed the trigger with his other hand. The end of his finger was blown off, whereupon he yelled toward the target area, "It's leaving here just fine, the trouble must be at your end!"

Fun Facts -

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"My hair line is in recession, my stomach is a victim of inflation, and both of these together are putting me into a deep depression!"

According to a study by the Economic Research Service, 27% of all food production in Western nations ends up in garbage cans. Yet, 1.2 billion people are underfed - the same number of people who are overweight.

Riddle -

You can draw me, fire me or fill me in. What am I? Answer: A Blank

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Something very extraordinary happened on the 6th of May, 1978 at 12:34 a.m. Can you figure out what it is?

Answer: The time could be written as 12:34 5/6/78

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A walking economy This guy is walking with his friend, who happens to be a psychologist. He says to this friend, "I'm a walking economy. "The friend asks, "How so?"

Money notes are not made from paper, they are made mostly from a special blend of cotton and linen. In 1932, when a shortage of cash occurred in Tenino, Washington, USA, notes were made out of wood for a brief period.

Quotations -

“How you spend your time is more important than how you spend your money. Money mistakes can be corrected, but time is gone forever.” Unknown

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“An apology is a good way to have the last word.”

Unknown

Which is correct: '9 and 6 is 14' or '9 and 6 are 14'?

Answer: 9 plus six is always 15 “... the engine room of the Public Service...”

Finance 13 INSIDE

E C I T NO REGISTRATION FOR THE CONDUCT OF PUBLIC ENTERTAINMENT ACTIVITIES In keeping with the VAT Act, persons who provide public entertainment must be registered for VAT whether or not they make EC$120,000 per annum.

All promoters of public entertainment, proprietors of places where entertainment is carried out and persons who from time to time may carry out or conduct public entertainment activities, are advised that they must be registered with the VAT Unit before commencing these activities.

For further information and clarity regarding what is expected of promoters of public entertainment, please contact the VAT Unit on telephone number (435-6945/46) or our Hotline 435-9085.

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.

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

FFinance inance INSIDE

What’s Been Happening

GRENADA LEADS THE WAY IN ADVOCATING ASSISTANCE FOR HAITI IN MEETING ITS OBLIGATIONS UNDER THE MONTREAL PROTOCOL At the conclusion of the thirtieth (30th) Open-ended Working Group Meeting of the Montreal Protocol, held in Geneva, Switzerland from June 14th – 18th, 2010, Grenada - represented by the Project Officer in the National Ozone Unit, Energy Division, Ministry of Finance, Mr. Leslie Smith - introduced a draft decision to allow the Montreal Protocol community to provide support to Haiti. Upon discussion, the meeting agreed to advance the draft decision for adoption at the Twenty-second (22nd) Meeting of the Parties to the Montreal Protocol in Kampala, Uganda from November 8th – 12th, 2010.

CELEBRATION OF WORLD POPULATION DAY The Central Statistical Office (CSO), Ministry of Finance, in collaboration with United Nations Population Fund (UNFPA), commemorated World Population Day on Tuesday July 20th, 2010 in a ceremony held at the Ministry of Finance's Conference Room.

July 11th 2010 was designated as World Population Day by the United Nations. Due to mitigating circumstances, the CSO was unable to celebrate on that day. However, given the importance of the day, a decision was made to commemorate the day on Tuesday July 20th.

Recognizing the extraordinary difficulties faced by Haiti as a result of the earthquake that struck Haiti on January 12th, 2010, the draft decision requests that the member countries that have signed on to the Montreal Protocol (the Parties); the Multilateral Fund and its Executive Committee for the implementation of the Montreal Protocol; and other relevant organizations, such as the Implementation Committee; provide assistance and support to Haiti in meeting its obligations under the Montreal Protocol.

The proposal received widespread support from the delegates of the Group of Latin America and the Caribbean (GRULAC), Mauritius, Nigeria, United States of America (USA), Canada, Brazil, Trinidad and Tobago and Japan.

At the meeting, Grenada also led the way in requesting that the Ozone Secretariat prepare an information document to look at the possibility of upgrading the office of Executive Secretary of the Ozone Secretariat to the level of United Nations (UN) Assistant Secretary-General. As agreed by the Parties, Co-chair Martin Diaz of Canada requested that the Secretariat prepare the document for consideration by the next meeting of the Parties in November 2010.

Grenada's Minister of the Environment, Foreign Trade and Export Development, the Hon. Michael Church, was also present at the meeting. Minister Church attended in his capacity as President, Bureau of Parties to the Montreal Protocol.

Participants at World Population Day Celebrations

This year's theme for World Population Day was “Everyone Counts”. It placed focus on the 2010 round of censuses and underscored the importance of population data for development.

The CSO viewed the celebration of World Population Day as an excellent opportunity to promote why reliable, disaggregated data is so crucial to progress and encourage people to participate in the upcoming census and other data collection efforts, and as such, used the opportunity to start sensitizing the public about Grenada's 2011 Census.

Continues on pg 16

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Finance 15 INSIDE

Continued from pg 15

The survey conducted in July was done as a regional initiative under the leadership of the Organisation of Eastern Caribbean States (OECS) Secretariat in collaboration with

Head table at World Population Day Celebrations

At the ceremony presentations were made by Mr. Halim Brizan, Acting Head of CSO, Ms. Nandy Noel, Youth Representative; Ms. Isiuwa Iyahene, UNFPA Assistant Members of the Statistics Department

each Member State and the International Labour Organisation (ILO).

PBC Choir at World Population Day Celebrations

Representative; and Mr. Mike Sylvester, Deputy Permanent Secretary. They all underscored the importance of accurate data and population data.

As part of the ceremony the CSO also launched an Art Competition, reflecting the theme of World Population Day, among the primary and secondary school aged population.

Cultural presentations were done by the Presentation Boy's Choir.

LABOUR FORCE SURVEY FOR GRENADA The household Labour Force Survey (LFS) was reestablished in Grenada with the conduct of the survey during the month of July 2010.

A Labour Force Survey is a survey that obtains data on a country's population, on persons fifteen (15) years and over, who may be in the Labour Force (employed and unemployed) or classified as Economically NOT active (i.e. not in the Labour Force). The survey covers only the civilian non-institutional population of the country.

The decision to administer this survey at that time was a response to the persistent lack of information on employment and other labour-related issues. Given its importance, governments in the OECS and in particular the Government of Grenada, committed themselves into investing more into Labour Market Information (LMI). In order to enhance the sustainability of these investments, the OECS, in collaboration with the ILO, developed a strategic approach to respond to the structural challenges and the high development costs of establishing Labour Market Information Systems (LMIS).

In addition, the need for labour market information has become increasingly urgent due to the impact of the global economic and financial crisis. As a result Governments, the OECS Secretariat and the ILO have combined efforts to establish the foundation of a sustainable LMIS and more specifically a sustainable Labour Force Survey (LFS) in the OECS countries.

In Grenada, this OECS Labour Force Survey (LFS) was undertaken by the Central Statistical Office (CSO) and sought to collect socio-economic data from persons in randomly selected households across the island.

The basic tool used for the data collection (survey) was a questionnaire administered through face-to-face interviews.

The questionnaire consisted of five parts, namely: 1. Demographic characteristics, education and training; 2. Economic activity, employment status, industry and occupation; Continues on pg. 17

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

Finance Visit“... thetoengineProject Unit 16 Minister's INSIDE

Continued from pg. 16

3. Information on those employed; 4. Information on those unemployed; 5. Information on those who are NOT economically active.

The information provided by the respondents is now being used to produce a picture of the activities of the entire target population (15 year and over) and produced several labour market indicators some of which includes, labour force size, unemployment rate, levels of underemployment, employed by sector, employed by occupation, economically inactive population and reasons for economic inactivity, etc. This survey was very comprehensive and will be able to furnish all users with robust estimates on the various labour market indicators.

The results of the survey are currently being tabulated and will be available in the near future.

NATIONAL CONSULTATION ON HYDRO CHLOROFLUOROCARBON (HCFC) PHASE-OUT MANAGEMENT PLAN (HPMP) FOR GRENADA. The National Ozone Unit of the Energy Division of the Ministry of Finance is required to develop a project with specific objectives and strategies for achieving the Montreal Protocol targets of: - The establishment of baseline consumption for HCFC refrigerants (R-22) on the average of total consumption for the year 2009 and 2010 - A freeze in consumption of HCFC refrigerants (R-22) by 2013 - And a 10% reduction in baseline consumption HCFC refrigerants (R-22) by the year 2015.

In this regard, a survey was conducted by National Consultants, on behalf of the National Ozone Unit, to gather and analyze data within the Refrigeration and Airconditioning sector in Grenada. This data is of critical importance for the development of the project as stated above.

A draft project proposal was prepared by the lead consultant, Mr. John Telesford who was contracted by the United Nations Environment Programme, Regional Office for Latin America and the Caribbean (UNEP, ROLAC). This draft proposal was presented at a National Consultation on Thursday July 22, 2010 at the Public Workers Union Conference Room in Tanteen, St. George's.

At the Consultation, stakeholders reviewed and discussed the data that was acquired and provided comments and

recommendations on the draft strategies that were developed to achieve the Montreal Protocol phase-out targets. Grenada being a party to the Montreal Protocol since 1993, is obligated to phase-out all remaining consumption of Ozone Depleting Substances in the country.

NEW ACCOUNTANT GENERAL APPOINTED IN MINISTRY OF FINANCE Mr. Ambrose Louis Obike was appointed as the new Accountant General in the Ministry of Finance, effective August 1st, 2010.

Mr. Obike, an Accountant and Banker by profession, brings a wealth of experience to this position. He has been employed with the Mr. Ambrose Louis Obike Ministry of Finance for the past seven (7) years as Head of the Internal Audit and Verification Unit, having played a key role in the establishment of that Unit. Mr. Obike was also instrumental in helping to clear the backlog of Government Accounts and bringing the Accounts up-to-date. Mr. Obike has also been involved in training in Government Accounting in Grenada and in the region.

The Ministry takes this opportunity to congratulate Mr. Obike and formally welcome him in his new position.

GRENADA HOSTS 2ND REGIONAL WORKSHOP ON SUSTAINABLE FINANCING & MANAGEMENT ON OECS MARINE ECOSYSTEMS The Ministry of Finance in collaboration with the World Bank and the Nature Conservancy hosted the 2nd Regional Workshop of the Sustainable Financing and Management of OECS Marine Ecosystems Project from September 13 – 17, 2010. The Workshop was held at the Flamboyant Hotel.

The Sustainable Financing and Management of Eastern Caribbean Marine Ecosystems Project is a regional project undertaken by the Governments of Grenada, St. Lucia, St. Kitts, St. Vincent, and Antigua. The project is funded by the Global Environmental Facility (GEF), The Nature Conservancy (TNC) and the German Development Bank (KFW).

The objective of the project is to improve the management effectiveness of existing and expanded protected area networks, across the Eastern Caribbean, through the establishment of sustainable financing mechanisms. The Continues on pg. 18

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Finance 17 INSIDE

Continued from pg. 17

project will assist the five OECS countries to meet their commitments under the Convention on Biological Diversity (CBD). These commitments include: • Establishing a system of protected areas or areas where special measures will be taken to conserve biological diversity; • Promoting the protection of ecosystems, natural habitat and the maintenance of viable populations of species in natural surroundings; and • Developing national strategies, plans or programmes for the conservation and sustainable use of biological diversity.

TAX APPEAL TRIBUNAL CLEARS BACKLOG OF APPEALS The Commissioners of the Income Tax Appeal Tribunal completed hearings on all outstanding appeals on Tuesday 07 September 2010, when they met at the Inland Revenue Conference Room of the Ministry of Finance.

The ECF is a three-year arrangement that has replaced the Poverty Reduction and Growth Facility (PRGF) in Grenada. The government's key objectives in this new programme are: ensuring fiscal and debt sustainability by placing the debt-to-GDP ratio on a firm downward track; reducing vulnerabilities in the financial system and strengthening the supervision of the non-bank financial sector; generating high and sustainable growth through structural reforms that will encourage private sector-led growth; and reducing poverty by creating more effective social safety nets.

The IMF team was headed by Ms. Nita Thacker of the IMF's Western Hemisphere Department.

While in Grenada the team held discussions with various stakeholders in the public and private sectors, including: the Minister of Finance and his team; other Government

Since its reconstitution in March 2009, the Tribunal has met sixteen (16) times, with the first case heard on September 22, 2009. Tuesday's hearing was the fourth (4th) case heard in the list of outstanding Appeals dating back to 2001. With the conclusion of this case, there are now no outstanding or unheard Appeals at this time.

The Tax Appeal Commissioners are: Ms. Deborah St. Bernard - Chairperson Mr. Cecil Edwards - Commissioner Mr. Fitzroy O'Neale - Commissioner Mr. Joseph Bain - Commissioner Secretary to the Board is Ms. Rhona Andrew

IMF Team

Ministers and senior public servants; the Leader of Her Majesty's Opposition; representatives from the Grenada Authority for the Regulation of Financial Institutions (GARFIN); the Banker's Association; the Grenada

Members of the public are reminded that in accordance with Section 89 of the Income Tax Act No. 36 of 1994, the Tribunal is established to receive objections and appeals from persons who are aggrieved by an assessment made by the Comptroller of Inland Revenue.

Members of the public are further reminded that in accordance with Section 107 of the Value Added Tax Act (VAT) of 2009, the Board is also responsible for receiving objections and appeals from aggrieved persons in relation to VAT assessments.

IMF CONDUCTS 1st REVIEW OF THE ECF An IMF team visited Grenada from September 20th – 28th to conduct the 1st (first) review of the Extended Credit Facility (ECF) which the IMF and Grenada entered into on April 2nd, 2010.

IMF Team leader and Ministry of Finance Officials

Chamber of Industry of Commerce (GCIC); the Labour Unions; and the like. The text of the IMF's Report can be found on page 7.

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BUDGET RETREAT WITH MINISTRIES AND DEPARTMENTS

recommendations for strengthening strategic budgeting in Grenada in the short and medium term.

To jump start the 2011 budget process, the Budget Unit of the Ministry of Finance held a one-day retreat with Ministers, Permanent Secretaries, Department Heads, and Finance Officers of the various Ministries, on Thursday July 29, 2010, at the Grenada National Stadium.

ENGAGEMENT WITH BUSINESS COMMUNITY On Friday July 30, the Minister of Finance and other senior officers of the Ministry, engaged members of the business community at the Ministry of Finance Conference Room.

The meeting was requested by the Minister, in an attempt to strengthen the relationship with the private sector and respond to a request made by the Grenada Chamber of Industry (GCIC) to discuss the current economic situation.

The main objective of the meeting was to develop a strategic approach to addressing the economic downturn.

Discussions included stimulating economic activity, Government initiatives and incentives for the private sector, Government projects, private sector investments, and job creation.

Participants at Budget Retreat

The main objectives of the retreat were to bring Ministries up-to-date on the 2010 budget implementation, present the fiscal performance for the first half, establish the current economic position of the Government, and set out the priorities and direction for 2011.

The day's proceedings included a presentation by CARTAC on “Strengthening Strategic Budgeting in Grenada.” The presentation revealed the findings of a review of Grenada's Budget planning and preparation processes and provided

Ministry of Finance staff with business operators

When you made a purchase: Did you look for an authentic VAT registration certificate? If yes then ·Was the price VAT inclusive? ·Did you get a VAT receipt/ VAT Invoice?

Consumers be VAT conscious?

A message from the Inland Revenue Division, VAT Unit, Ministry of Finance

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Government's Initiatives to Stimulate the Economy 1.

b.

2.

Government will facilitate the simplification of the tendering process to shorten the time for approval of contracts in all 3 categories: - Less than 10,000 - Between 10,000 and 99,000 - More than 100,000 Government will do this while ensuring transparency and accountability in the tender process.

Farm Labour Support Programme – the number of teams in this programme will be doubled. Twenty four teams employing a total of 240 persons will be employed.

4.

Acceleration of the implementation of Key Public Sector Projects a. Government will make every effort to expedite all Public Sector Projects for which funding is fully secured. In this regard, work has commenced on the Gouyave Fisheries Project. Close to 100 jobs will be created during this EC 32 million dollar Project. b.

c.

3.

e.

Expansion of short term employment opportunities while also preserving key safety net programmes Allocation of additional resources in the following areas: a. Road Maintenance Programme – an additional 175 contracts from mid-September to December. Over 2600 persons will get short term job opportunities.

In the case of the Feeder Roads Phase II, the contractor has indicated to us that work will start in October. As many as 300 jobs could be created.

With respect to Grenville Market Development, work on this Project should commence before the end of this year. At least 50 jobs will be created during this Project.

5.

Working with the Private Sector to help them to survive and preserve jobs a. Government will continue to work with existing Private Sector firms, including small and medium–sized enterprises to ensure their survival and the preservation of existing jobs. b.

Government will provide a 50% reduction in the VAT on the following construction inputs for the next six months commencing October 01, 2010 and ending on March 31, 2011: These items are: Steel; Cement; Roofing; and Lumber.

c.

Government will grant the reduction of terminal dues by 50% by the Grenada Ports Authority on the importation of sand immediately. This reduction must be passed on to the consumer.

d.

Government will facilitate the creation of sand depots in critical locations around the country to reduce transportation costs for construction works in these communities from next year.

Under Tourism, Government will implement the following: a.

The removal of VAT on service charge for hotels on the condition that no less than 90% of this Service Charge is paid to workers. This safeguard is meant to ensure that the service charge collected is paid to the workers. b.

The grant of a 50% rebate in the VAT on hotel occupancy only for the months of September, October and November.

Similar conditions will apply to those which were stipulated last year.

c.

Government will continue to support the expansion of airlift.

So far this year, Government has already spent $8 million on direct airlift to Grenada from North America and Europe.

Reduction in the Cost of Living. a.

The removal of VAT on Text Books. This decision should be great benefit to the students of the T. A. Marryshow Community College and the St. George's University as the school year begins. b.

6.

Under Agriculture, Government will implement the following: a. An injection of $300,000 into the Cocoa Association to assist with the Diamond Cocoa Processing Plant. In addition to our support for agro-processing, we are determined to work with the traditionally economic depressed parish of St. Mark to create more economic opportunities. b.

7.

The implementation of the Duty Free Barrels programme for the months of November and December 2010. Some might call this a Christmas gift from Government.

Facilitation of the voluntary registration of agro-processors who fall below the threshold of EC$ 120,000 so as to allow for the recovery of input costs.

For the Automobile Dealers, the following will be implemented: a. Reduction of the excise tax on the importation of commercial vehicles to ensure that the impact of the VAT is revenue neutral. VAT will continue to be charged on these vehicles in the normal manner.

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 Charles-Joseph, Editor-in-Chief, 440-2731, ext.: 1108/435-0057 Designed and printed by Government Printery