Inside Finance - Volume 7, Issue 1, Januray 2011

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 7, Issue 1, January 2011

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INFORMATION AND COMMUNICATION TECHNOLOGY

ENERGY DEVELOPMENT

TOURISM AND HOSPITALITY SERVICE

HEALTH AND EDUCATION SERVICES

AGRIBUSINESS

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MAIN GROWTH DRIVERS FOR THE NEXT 10-15 YEARS

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

Please take your lunch break!

W h i l e re a d i n g a n online business magazine sometime recently, I came upon an article which I found interesting and relevant to some practices that I have seen lately.

Here is the article. I hope you find it as relevant as I did.

Name of Article: WHY THE LUNCH BREAK IS GOING EXTINCT - More workers are told to multitask as they wolf down food Author: Eve Tahmincioglu, MSNBC.com contributor “My relatives in Athens, Greece, have always indulged when it came to their lunch breaks. They'd leave work and head home around 1 p.m. and sit down with family at a big table loaded with food, everything from grilled octopus with greens to roasted lemon chicken and potatoes. There was also always wine and Ouzo, an anise-flavored liquor, flowing. As you can imagine, everyone got pretty tired partaking in this feast so they'd all go off to bed for at least an hour nap.Around 3:30 or 4 p.m. they'd go back to the office or factory and toil until about 7 or 8 p.m.I always mocked my relatives when we would visit them in Greece during my teen years. Their endless lunch breaks seemed to me to be the height of laziness.

What Wisnefski found was his workers were spending so much time scheduling lunches and then ramping back up again after lunches that they ended up playing catchup for most of the day.

"Now things are more organized, less chaotic," he explains.

Lunch hours, forget them. Those were long gone years ago. A study by chicken fast food chain KFC corp. found that 60 percent of workers in corporate America actually considered the lunch hour "the biggest myth of office life."

But now a growing number of employees are finding they are also losing their right to a lunch half hour, or any break at all. About 55 percent of workers take a half hour or less for their lunch breaks, according to a survey by Steelcase, an office equipment maker.Women, who are forever trying to prove themselves in the work world, are not surprisingly more likely to take shorter lunch breaks than men; and all you uptight Northeasterners are also taking shorter lunches than your counterparts in the rest of the nation. Many workplace experts suspect even those workers who are allotted a half hour for lunch, often end up never leaving their desks.The move to shorter or non-existent lunches is in some cases selfimposed. "It's almost as though workers started the trend," says Deborah Brown-Volkman, a career coach.

Ah, the ignorance of youth. I would give my right arm if I could get that kind of lunch today. Who wouldn't?

Not only is this not an option for most of the U.S. workforce, we're lucky if we get a lunch break at all.

The workers at VendorSeek.com don't get any lunch breaks Monday through Thursday.

"It is encouraged that we eat at our desks and use this 'down time' to address e-mails, inter-office meetings, and other tasks and necessities that would interrupt the flow of the normal course of the work day," says Ken Wisnefski, president of the company that helps businesses find outsourcing services. He points out that the company is a bit more lax on Fridays and workers can take up to an hour to do what they wish.

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

Continues on pg. 6

PERFORMANCE OF THE GRENADIAN ECONOMY IN 2010 as Presented by the Hon. V. Nazim Burke at the 2011 Budget Presentation in Parliament

last year. Increased agricultural output was driven by a 12 per cent growth in crops. The main contributor was increased production of fruits and vegetables which grew by 26.3 per cent. The volume of Fish caught rose by 5.7 per cent.

Hon. V. Nazim Burke In 2010, Grenada's economy is projected to have declined by 1.4 per cent compared to a contraction of 7.7 per cent in 2009.

It should be pointed out that after the first nine months of the year, the economy was projected to contract by 1.8 per cent. However, during the fourth quarter, there was a pickup in activities in the following sectors: construction, hotel and restaurant, wholesale and retail trade and transport.

A major factor for this expansion was the stimulus package announced by the Government last September. It provided special incentives to the tourism and construction industries. Government also expanded its labour intensive programmes such as Debushing and Farm Labour Support.

The agricultural sector continued to be a bright spot in the economy with growth estimated at 8.25 per cent. This performance is remarkable having regard to the severe drought experienced in the first half of

Other sectors estimated to record positive growth last year are the manufacturing sector (25%), mining and quarrying (3%), electricity & water (3.5%), real estate and housing (1.5%), government services (2.0%), and other services (3.5%). The hotel and restaurant sector which is used as a proxy for tourism contracted by 9% compared to a decline of 19% in the previous year.

The tourism industry is very sensitive to external shocks and events. Last year, Government supported the industry by assigning a special VAT rate of 10%, spending $10 million in support for airlift and granting tax concessions including a 50% reduction in VAT for September, October and November. These measures all helped to cushion the effect of the recession on the industry. It should be noted that the rate of decline in the construction, wholesale and retail trade, and hotels and restaurant sectors slowed noticeably compared to the previous year.

Employment Based on statistics from the National Insurance Scheme (NIS) for the first ten months of year 2010, newly registered employees or first-time employees totaled 1,542, compared to 1,538 for the same period in 2009. Approximately 73% of these first time employees belonged to the age group 16 to 24 years and are classified mainly in the construction, retail trade, real estate and business services, and community services. In addition to Continues on pg. 4

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

Finance 3 INSIDE

Minister's Message continued from pg. 3 these permanent jobs, Government was able to create 16,000 temporary jobs through its public works programmes.

Consumer Price Index (CPI) The CPI is commonly used as a measure of inflation and by extension the cost of living.

Last year, a labour force survey was conducted by the Central Statistical Office in collaboration with the International Labour Office (ILO) and the OECS Secretariat. The results of this survey are being finalised, however, preliminary findings put the unemployment rate at 29%. The high rate of unemployment remains of great concern to Government.

The new CPI is based on a Household Income & Expenditure Survey conducted by the Central Statistical Office with funding from the Caribbean Development Bank (CDB) and technical assistance from the Caribbean Regional Technical Assistance Centre (CARTAC).

Inflation and Consumer Prices Annualized inflation at October 2010 was 6.5 percent driven mainly by rising prices on most categories of consumer expenditure except educational expenses.

With the introduction of VAT and Excise, it was envisaged that prices would initially rise by 5 percent (excluding the effect of oil prices) and would return to normal levels of 3 percent as new inventory entered the market. In an effort to provide additional relief on the cost of living, Government expanded the list of zero-rated and exempt items. For example, VAT was removed from bread, medicine for chronic diseases, textbooks, agricultural produce, agricultural inputs, computers and water among others. If Government had not taken these actions, the rate of inflation would have been even higher.

Government is pleased to note that the introduction of VAT has resulted in the reduction of prices on many basic items. For example: Baking (Flour) from $7.71 to $7.38 per pound Baby Milk (formula) from $29.50 to $24.00 per tin Cement from $27.63 to $21.00 per bag Lumber from $4.56 to $4.10 per square foot Paint (oil) from $54.35 to $50.14 per gallon This year, we project inflation will be 4 percent largely due to rising food and fuel prices.

Government remains committed to taking measures to mitigate the cost of living and will closely monitor this situation.

Recent Statistical Developments Last year was a historic year for statistical services in the OECS. During the year, we launched two new series: Consumer Price Index and Gross Domestic Product.

This new CPI is an advance over the old index in several ways: ! More retail outlets are now used to collect prices. ! New consumer products such as mobile phones and computers are included. ! The CPI is now comparable across the OECS countries. ! It adopts a new methodology that allows for introducing new items into the CPI basket and for adjusting for quality changes in the price of an item.

Gross Domestic Product The Gross Domestic Product is a measure of the value of goods and services produced by a country in a given year. It is used as an indicator of the size of the economy.

The Central Statistical Office with assistance from ECCB and CARTAC recently concluded a revision of the methodology and coverage of computing Grenada's Gross Domestic Product (GDP).

This revision yielded the following results: ! New GDP series is now rebased from 1990 to 2006 to allow comparison across the OECS countries ! Nominal GDP is estimated at EC$2.1 billion, an increase of 28.8% due to increased coverage. ! Grenada is now the third largest economy in the OECS, after Antigua and St. Lucia.

Going forward, these rebased numbers will be used for all reporting purposes.

Fiscal performance in 2010 Recurrent revenue was $423.6 million, a shortfall of $24.5 million or 5.5% per cent of budgeted revenues. This shortfall was primarily due to Continues on pg. 5

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

Minister's Message continued from pg. 4 further VAT concessions granted during the year.

However, compared to the previous year, revenues grew by $18.3 million or 4.5 per cent.

It is useful to understand how Government spends every dollar. Bearing in mind that Government spends more than it earns by supplementing its revenues with overdraft, treasury bills, loans and grants, this is how every Government dollar was spent in 2010: -

Personal emoluments (wages, salaries and allowances for Government workers) – 40 cents G o o d s a n d S e r v i c e s ( e l e c t r i c i t y, telecommunications, water, fuel and stationary) – 12 cents Transfers (pensions, gratuities, public assistance, subventions & contributions to international organizations) – 13 cents Debt repayments and servicing (both interest and principal repayments (amortization) – 24 cents Development projects – 11 cents

Figure I – How Government Dollar is Spent

How Gov’t Dollar is Spent Percentage Dollar Distribution

Development Projects

11% Personal Emoluments

Debt repayment and Servicing

As a consequence, fiscal operations yielded a surplus of $3.1 million, a marginal improvement over the previous year.

In respect of grants, Government was able to unlock budgetary support in the amount of $36.8 million, an increase of $8.4 million or 29.5% higher than budgeted. As was the case in 2009, Grenada applied and received assistance under the European Union Vulnerability Flex Facility which was established to assist ACP Countries in mitigating the impact of the global economic crisis. A disbursement of 3.5 million Euros or EC$12.2 million was received last December.

This grant demonstrates the benefits of Government's strong economic management.

Accordingly, total grants exceeded the budget by $8.0 million (11.2%). Total grants (budget support and capital) totaled $79.5 million, $11.2 million higher than the previous year.

Capital expenditure totalled $150.2 million or 5.5% less than budgeted. Of this amount, $20.1 million was from loans and $43.3 million from grants.

40%

The overall deficit (after grants) was $67.6 million or 3.7 percent of GDP, $2 million less than the budgeted deficit of $69.7 million.

24% Transfers

13%

which grew by 10.1 per cent. This increase is explained by the transfer of the wage, salary and allowance component of Category 340 – Professional and Other Services under Goods and Services to Personnel Expenditure. This reclassification/transfer was made in an effort to more accurately report Government's payroll.

The decline in spending on Goods and Services is partly explained by this adjustment.

Goods and Services

The fiscal performance last year clearly shows an improvement over the previous year.

12%

Recurrent expenditure was $420.6 million, 2.3 percent less than budgeted. Compared to the previous year, current expenditure grew by 1.4 per cent.

Spending on all major categories was less than the approved budget, except for Personnel Expenditure

At the end of December 2010, Central Government Debt stood at $1.88 billion consisting of: Domestic Debt - $357.8 million External Debt - $1.52 billion Based on the revised GDP, Grenada's debt to GDP ratio is now 91.5 percent.

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

Finance 5 INSIDE

Editors Note Cont'd from pg.2 We're all too busy these days to take a leisurely lunch and we also want to get out of work at a reasonable hour so we can have some quality time with our families and friends. If you work through lunch, the thought goes, you can get out of the office before the witching hour.

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In the case of VendorSeek, employees actually hatched the idea to do away with lunches, maintains Wisnefski.

"They asked, 'Why do we need to take lunch?'"

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Well, it turns out giving up your lunch break could actually diminish your productivity, causing you to end up putting in more hours in the long run, not to mention what it does for your health and well being. "I joke sometimes that smokers are the healthiest people in the work place these days because they get outside," says Brown-Volkman.

·

"Your brain needs to rest," she adds. "Sometimes, in order to concentrate you have to think about something different, get a way from the problem. Sunshine is good for the body, mind and soul."

And Joe Takash who is a business consultant claims lunch breaks can "help boost creativity and profits."

Bosses love this. Shows not that you want your lunch back, but that you are astute to office politics and have good boundaries."

"Make it a 'leadership lunch.' Tell your superiors it is an alignment lunch to get folks on the same page and to make sure they are making them richer faster."

"Convince them that the lunch break makes you more productive. Be a 'Columbo' [the 1970s TV detective] and show them data that compares these two camps. Many times corporate America is used to hard data so speak in a language they will understand."

"If all else fails, make a low blood sugar scene of dramatic proportions."

And don't forget to eat something, demands Kathleen Hall, a stress and work-life balance expert. "Food boosts mental and physical productivity and regulates moods.

But don't just eat anything within reach. Eat foods that boost brain activity like Salmon or blueberries. Foods can also fight anxiety, stress and panic, which is good if you're having an especially difficult day."

This may be a good selling point for your boss if you're one of those workers who want to reclaim their right to a lunch.

Now just in case you are still daydreaming about my relatives in Greece and their three hour lunch extravaganza, things are changing even in that laid back country. Unfortunately, the nation has moved closer to the U.S. model of a 9 to 5 workday in recent years.

Here are some other ways to convince your boss you need time to dine, from psychologist and corporate consultant Kevin Fleming:

Well, not everyone. On my last trip there, my uncles, aunts and cousins were still toasting to life over long lunches and squeezing in their midday siestas”

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"Make it an informal setting for a discussion of some important work topic best done 'offsite.'

Are you guilty of what is said in this article? If so, then it is time to do a reality check.

FINANCIALTip

Turn off the television

One big way to save money is to watch less television. There are a lot of financial benefits to this: less exposure to guiltinducing ads, more time to focus on other things in life, less electrical use, and so on. It's great to unwind in the evening, but seek another hobby to do that.

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

EXCERPTS OF THE 2010 EASTERN CARIBBEAN CURRENCY UNION ECONOMIC REVIEW

By Sir K. Dwight Venner Governor, Eastern Caribbean Central Bank January 20, 2011 I address you at the beginning of the New Year on the economic circumstances, performance and prospects of the Eastern Caribbean Currency Union, as we move forward in the stability and adjustment phase of our response to the economic and financial challenges that we continue to face.

The recent performance of our economies has to be seen against the background of two factors: 1. The unprecedented global financial and economic crisis which began in 2007; and 2. The structure of our own economies.

This global crisis has been the worst in the last eight decades since the Great Depression of 1929 - 1933. It has had a global impact, starting as it did, in the United States of America (USA), which is also our main trading partner and source of investment, tourist arrivals and remittances.

The cost of this crisis to the USA and the other industrial countries has been immense.

The following facts would be of significance: 1.

Having recorded no growth in 2008, the US economy contracted by 2.6 per cent in 2009. Despite some recovery in 2010, unemployment remained at a high level with 8.4 million jobs being lost during the recession.

2.

The deep nature of this recession is reflected in the loss of wealth amounting to approximately 32 trillion US dollars on world stock markets between May 2008 and March 2009. While in the USA, the value of the housing stock fell by 4.3 trillion US dollars between 2007 and 2010.

3.

Financial institutions were and still are seriously affected, with some major firms being liquidated and others being bought out or supported by public finances.

4.

5.

Sovereign debt in the USA and other major in d u s tr ial co u n tr ies h as r each ed historically unprecedented levels.

The eurozone is now going through its own crisis, with Greece, Ireland, Portugal and Spain experiencing serious challenges, the survival of the euro being a subject of constant debate. This is a cause for concern as the euro is the second most important international currency.

A very important geopolitical issue has been the shift in economic power and influence to an emerging group of countries, China, India and Brazil, which weathered the crisis quite well and have an increasing share of world output.

All of these circumstances will continue to have a major influence on the progress of our economies. We in turn must deal with the reality of our situation if we are to succeed in confronting the major challenges that we are now encountering.

The global crisis hit the region with the expected lag and while it began in the fall of 2007, the currency union started to feel the effects in 2009 and this continued into 2010.

The ECCU economies contracted by 7.0 per cent in 2009 and 3.2 per cent in 2010. These contractions were largely affected by declines in construction and tourism activity.

Construction, which has been one of the key productive sectors in the ECCU, remained depressed in 2010, contracting by 21.8 per cent, due to the limited availability of foreign financing and reduced inflows of foreign direct investment. Although there was some indication of an uptick in tourist arrivals in the latter part of 2010, activity has not returned to pre-crisis levels.

The contraction in economic activity was also reflected in a decline in currency in circulation which fell by 12.4 Continues on pg. 8

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

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ECCB Report Cont'd from pg. 7 per cent in 2010 following a 4.9 per cent decrease in 2009. Domestic credit declined by 2.2 per cent in 2010 in contrast to an increase of 4.8 per cent in 2009. On the fiscal accounts, government revenues declined by 35.6 million dollars in 2010 compared with a decrease of 282.5 million dollars in 2009; while a fiscal deficit of 335 million dollars was recorded in 2010 compared with a 780 million dollar deficit in 2009. The reduction in the overall deficit was the result of a fall in capital spending due to financing constraints. Debt to GDP ratios were 102.8 per cent in 2010, up from 98.2 per cent in 2009.

In order to improve the fiscal situation the Monetary Council established three commissions. The first, the Tax Policy and Administration Commission made recommendations which have had a fundamental impact on the tax system. The most important has been the Value Added Tax (VAT), which has had a positive impact on government revenues in most countries.

The ECCU's formal response to the global economic and financial crisis began in January 2009 with a Joint Meeting of the OECS Authority of Prime Ministers and the Monetary Council of Finance Ministers to engage in an in-depth assessment of the crisis and its impact on member countries. Follow-up meetings were held in June 2009 and April and September 2010 to monitor the implementation of the ECCU Eight Point Stabilisation and Growth Programme, and the progress towards the establishment of the OECS Economic Union.

In an attempt to address the deficiencies in the statistical systems, member countries on 15 December 2010 simultaneously launched rebased National Accounts and Consumer Price Indices (CPI) across the region via videoconference. The rebased series for the national accounts was developed to improve its relevance and accuracy by changing the base year from 1990 to 2006, which will lead to significant improvements in the Gross Domestic Product estimates. The compilation of a new CPI was also undertaken to reflect the changing consumption patterns among member countries.

The stability and adjustment phase which commenced in January 2009 should be completed by December 2012. All countries, through home-grown or IMF programmes, have taken and are continuing to

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take significant policy initiatives to address the fiscal and debt challenges.

In summary, the ECCU, as a collective, must develop diversified, productive and internationally competitive economies which can be successfully integrated into the global economic system.

There are some critical factors which are fundamental to our progress which I will cite: 1.

A major emphasis on justice, law and order to maintain and improve civil society as it is clear that increasing crime can cause major social and economic disruptions.

2.

A cost effective and efficient intra-regional transportation system to facilitate and ensure the success of the Economic Union.

3.

A concerted and strategic effort to transform the tourism industry to be the lead transformative sector, that is, to convert its present comparative advantage into a competitive one.

In support of the general objectives of sustainable growth and economic transformation, the currency union would also need to execute the following: · Public sector modernisation to facilitate a highly sophisticated policy framework and architecture; · The development of a vibrant, creative and innovative private sector which can compete regionally and internationally; and · Institutional arrangements for the creation of a cutting edge education system, appropriate skills training and capacity for research and development.

The future of our countries, the prevailing circumstances notwithstanding, will depend on our ability and willingness to make fundamental changes in light of the challenges ahead.

It is clear from our experiences over the last two years that collective action aligned with good policies and a positive vision of the future will be vital in the achievement of our goals. These will redound to the improved welfare of our people and brighter prospects for future generations.

Our future actions could be summed up in the words of William Jennings Bryan, “Destiny is not a matter of chance, it is a matter of choice”.

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

OLD LADY'S LETTER TO THE BANK

Shown below, is an actual letter that was sent to a bank by an 86 year old woman.

The bank manager thought it amusing enough to have it published in the New York Times. his/her financial situation (income, debts, assets and liabilities) must be accompanied by documented proof.

In due course, at MY convenience, I will issue your employee with a PIN number which he/she must quote in dealings with me.

I regret that it cannot be shorter than 28 digits but, again, I have modeled it on the number of button presses required of me to access my account balance on your phone bank service.

As they say, imitation is the sincerest form of flattery. Let me level the playing field even further.

When you call me, press buttons as follows:

Dear Sir: I am writing to thank you for bouncing my check with which I endeavored to pay my plumber last month. By my calculations, three nanoseconds must have elapsed between his presenting the check and the arrival in my account of the funds needed to honor it..

I refer, of course, to the automatic monthly deposit of my entire pension, an arrangement which, I admit, has been in place for only eight years.

You are to be commended for seizing that brief window of opportunity, and also for debiting my account $30 by way of penalty for the inconvenience caused to your bank.

My thankfulness springs from the manner in which this incident has caused me to rethink my errant financial ways. I noticed that whereas I personally answer your telephone calls and letters, --when I try to contact you, I am confronted by the impersonal, overcharging, pre-recorded, faceless entity which your bank has become.

From now on, I, like you, choose only to deal with a flesh-andblood person.

My mortgage and loan repayments will therefore and hereafter no longer be automatic, but will arrive at your bank, by check, addressed personally and confidentially to an employee at your bank whom you must nominate.

Be aware that it is an offense under the Postal Act for any other person to open such an envelope.

Please find attached an Application Contact which I require your chosen employee to complete.

I am sorry it runs to eight pages, but in order that I know as much about him or her as your bank knows about me, there is no alternative.

Please note that all copies of his or her medical history must be countersigned by a Notary Public, and the mandatory details of

IMMEDIATELY AFTER DIALLING, PRESS THE STAR (*) BUTTON FOR ENGLISH #1. To make an appointment to see me #2. To query a missing payment. #3. To transfer the call to my living room in case I am there. #4 To transfer the call to my bedroom in case I am sleeping #5. To transfer the call to my toilet in case I am attending to nature. #6. To transfer the call to my mobile phone if I am not at home #7. To leave a message on my computer, a password to access my computer is required. Password will be communicated to you at a later date to that Authorized Contact mentioned earlier. #8. To return to the main menu and to listen to options 1 through 7. #9. To make a general complaint or inquiry. The contact will then be put on hold, pending the attention of my automated answering service. #10. This is a second reminder to press* for English.

While this may, on occasion, involve a lengthy wait, uplifting music will play for the duration of the call.

Regrettably, but again following your example, I must also levy an establishment fee to cover the setting up of this new arrangement.

May I wish you a happy, if ever so slightly less prosperous New Year?

Your Humble Client And remember: Don't make old People mad.

We don't like being old in the first place, so it doesn't take much to piss us off.

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

Finance 9 INSIDE

January 26th 2011 Secretary General of the World Customs Organisation (WCO), Kunio Mikuriya, said he was pleased to announce that 2011 will be dedicated to knowledge and the critical part it plays in enhancing the effectiveness and efficiency of Customs administrations across the globe.

He was making reference to International Customs day which was celebrated on January 26, 2011 under the theme "Knowledge, a catalyst for Customs excellence".

Guided by this theme, the WCO's 176 Member Customs administrations as well as the Customs community's stakeholders are being urged to be innovative and creative in taking forward the knowledge theme in all its facets during 2011.

In this regard, the Grenada Customs and Excise Division recognised International Customs Day with the following main activities: •

Family Fun Day – Saturday, January 22, from 1:00 p.m. at the Morne Rouge Play Ground.

•

International Customs Day – Thanks Giving Ceremony – Wednesday, January 26, from 9:30 a.m. at the Customs House, Entry Processing Unit.

•

Visit to the Cadrona Home for the Aged – Thursday, January 27, at 3:00 p.m.

•

Recognition Ceremony – Saturday, January 29, from 7:00 p.m. at the Tourist Welcome Centre.

Officials of the Division also appeared on several radio and television programmes disseminating relevant information, geared towards encouraging a greater level of taxpayer compliance.

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GRENADA LAUNCHES THE FIRST REGIONAL ICT CENTRE FOR EXCELLENCE AND INNOVATION

Grenada will soon launch the first Regional ICT Centre for Excellence and Innovation. The Centre was established with the assistance of the Government of India to: • generate IT knowledge and awareness among citizens • generate direct and indirect employment through IT and world class IT programmers • offer short term and long term courses in ICT • upgrade the skills of anyone interested in making ICT a career • and to assist IT faculty and students in schools, colleges, and universities.

Initial courses to be offered include: • Advanced Diploma in Information Technology (ADIT) • Diploma in Database Technologies (DDT) • Diploma in IT Project Management (DPM) • Diploma in Linux (DIL) • Advanced Certificate for C ++ Programming • Diploma in JAVA Programming • Diploma in Ms.Net Programming • Advanced Certificate Course in OOAD using UML • Diploma in Information Technology (DIT)

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• •

Advanced Certificate course in Window XP Advanced Certificate Course in MS SQL Server

During the first two (2) years of operation the training will be conducted by Specialists from India.

The ICT Centre for Excellence & Innovation targets: • Teachers • Students and professionals • Government employees • Anyone interested in making ICT a career • Public & private institutions The centre which is located at the Grenada Industrial Development Corporation (GIDC) at Frequente St. George's is equipped with two computer labs. The centre will be managed by (GIDC).

For more information about the ICT Centre of Excellence & Innovation please contact GIDC at: Phone: +1 (473) 444 1033-35 Fax: +1 (473) 444-4828 E-mail: invest@grenadaidc.com

NEW WAY OF STEALING

Part 1 This is a new one. People sure stay busy trying to cheat us, don't they?

A friend went to the local gym and placed his belongings in the locker. After the workout and a shower, he came out, saw the locker open, and thought to himself, 'Funny, I thought I locked the locker.

Hmm, 'He dressed and just flipped the wallet to make sure all was in order.

Everything looked okay - all cards were in place...

A few weeks later his credit card bill came - a whooping bill of $14,000!

He called the credit card company and started yelling at them, saying that he did not make the transactions.

Customer care personnel verified that there was no Mistake in the system and asked if his card had been stolen.

'No,' he said, but then took out his wallet, pulled out the credit card, and yep - you guessed it - a switch had been made.

An expired similar credit card from the same bank was in the wallet.

The thief broke into his locker at the gym and switched cards.

Verdict: The credit card issuer said since he did not report the card missing earlier, he would have to pay the amount owed to them.

How much did he have to pay for items he did not buy? $9,000! Why were there no calls made to verify the amount swiped? Small amounts rarely trigger a 'warning bell' with some credit card companies. It just so happens that all the small amounts added up to big one!

CENSUS IS COMING May 12th 2011 "censUS is all of us = U + Me + the rest ah Wee"

COUNT ME IN

Facts Fun &

Did U Know?

That a Population and Housing Census is scheduled to take place in Grenada from May 2011?

Yes, the 2011 Population and Housing census is th scheduled to commence on May 12 2011. The theme for the census is “COUNT ME IN”. It highlights the fact that everyone counts and everyone should have a desire to be counted. A Census allows a country to get a complete count of the population and also gain important factual information on the population at the parish and the community level ranging from broad areas such as religion, age, ethnicity, education, health, employment, housing and key amenities, just to name a few.

Fun Facts •

The first domain name ever registered was Symbolics.com.

•

Nearly 22,000 checks will be deducted from the wrong account over the next hour.

Have a laugh...

A wealthy man decided to go on a safari in Africa. He took his faithful dog Spot along for company. One day, Spot starts chasing butterflies and before long discovers that he is lost.

So, wandering about, he notices a leopard heading rapidly in his direction with the obvious intention of having him for lunch. Spot thinks, "OK, I'm in deep trouble now!" Then he noticed some bones on the ground close by, and immediately settles down to chew on the bones with his back to the approaching cat. Just as the leopard is about to leap, Spot exclaims loudly, "Boy, that was one delicious leopard. I wonder if there are any more around here."

Hearing this, the leopard halts his attack in mid-stride, as a look of terror comes over him, and slinks away into the trees. "Whew," says the leopard. "That was close. That dog nearly had me."

Meanwhile, a monkey, who had been watching the whole scene from a nearby tree, figures he can put this knowledge to good use and trade it for protection from the leopard. So, off he goes.

But the dog saw him heading after the leopard with great speed, and figured that something must be up.

The monkey soon catches up with the leopard, spills the beans and strikes a deal for himself with the leopard. The leopard is furious at being made a fool of and says, "Here monkey, hop on my back and see what's going to happen to that conniving canine."

Now Spot sees the leopard coming with the monkey on his back, and thinks, "What am I going to do now?" But instead of running, the dog sits down with his back to his attackers, pretending he hasn't seen them yet ... and, just when they get close enough to hear, the dog says...

"Where's that darn monkey? Sent him off half an hour ago to bring me another leopard."

Riddle Why was the frog happy?

Because it ate everything that bugged him!

Quotations There is no smaller package in all the world than that of a man all wrapped up in himself.

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

Finance 13 INSIDE

E C I T NO

DISPLAYING OF VAT REGISTRATION

CERTIFICATES The Value Added Tax (VAT) Unit of the Ministry of Finance reminds all VAT Registrants of their obligation (under the Value Added Tax Act, 2009) to display their original VAT registration certificate in a prominent position, at their principal place at which taxable activities are being carried out.

Taxpayers who have subsidiaries or other locations at which they carry out business transactions, should display a certified copy of the certificate, which must be obtained from the Comptroller of Inland Revenue.

Taxpayers are not allowed to make copies of the certificate on their own, or by any other agency other than the Comptroller of Inland Revenue.

All concerned taxpayers are urged to please take note, and contact the VAT Unit for any further clarifications.

ISSUANCE OF RECIEPTS/VAT INVOICES All VAT Registrations are being reminded by The Value Added Tax (VAT) Unit of the Ministry of Finance, of their obligations (under the Value Added Tax Act, 2009) to issue receipts to every customer to whom a sale is made.

A VAT invoice or Sales Receipt must contain the following information as prescribed by the Act: · The name, address, and TIN of the supplier (or vendor who is making the sale) · The serial number of the VAT invoice/ receipt and the date on which it was issued · A description of the goods and services supplied, including the quantity, volume or period where applicable · The total consideration or monetary value for the supply (including VAT) · The amount of VAT charged · The name, address, and TIN of the recipient where applicable The VAT Unit is urging the general public and taxpayers to request their receipts when making purchases particularly during the Christmas Season.

The Unit is encouraging Taxpayers to continue to be vigilant and to report any discrepancies to the VAT Unit at Telephone Numbers 435-6945/46 or 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.

14 Finance INSIDE

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

FFinance inance INSIDE

What’s Been Happening

2011 BUDGET PRESENTATION The Estimates of Revenue and Expenditure for 2011, or Budget, was presented to the House of Representatives,

by Finance Minister Hon. V. Nazim Burke on Friday January 14th 2011, under the theme: “Working together for Economic Recovery, Job Creation and Social Protection”. The main highlights of the Budget can be found on page 20.

WASTE REDUCTION UNIT ESTABLISHED The Waste Reduction Unit of the Government of Grenada has been established.

• Coordinate the waste reduction measures identified

by Government; • Identify areas of wastage across the Public Service and develop a plan of action to reduce and eliminate such wastage; and • Investigate the concerns logged by the Waste Reduction Hotline (440-5883) and devise an operational plan to address these concerns.

In the execution of her duties, Mrs. Bennett-Thomas will work with all ministries and departments across the Public Service.

The Unit was established with the appointment of the Mrs. Sylvia Bennett-Thomas as Head of the Unit, effective November 1, 2010. Mrs. Bennett-Thomas has worked in the Public Service for almost 21 years and holds a BSc. in Management.

The establishment of the Unit reiterates Government's commitment to reducing spending on non-essential goods and services and eliminating wastage, where possible.

The Unit is housed in the Ministry of Finance, Planning, Economy, Energy and Cooperatives and is responsible for leading and coordinating the waste reductions measures announced by the Minister of Finance in his 2010 Budget Speech. These measures include:

NATIONAL TRAINING WORKSHOP ON INTRODUCTION TO REDATAM DATABASE CREATION AND CENSUS DATA ANALYSIS

• Establishment of a Central Mail Delivery System to serve the Ministerial Complex and expedite mail delivery throughout the Government system;

The Central Statistical Office (CSO) hosted a week-long workshop, from December 6 - 10, 2010 at the Grenada Bureau of Standards Conference Room.

• Establishment of a Government Central Brokerage Unit to ensure the expeditious clearance of Government imports and donations at the port; and • Organising a pooling arrangement for vehicles at the Ministerial Complex as well as developing a policy for the management and utilisation of all Government vehicles As part of her immediate duties, Mrs. Bennett-Thomas is expected to:

Head table at training workshop

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

Continues on pg 16

Finance 15 INSIDE

Continued from pg 15

• To monitor, evaluate and improve the Energy Conservation Plan; • To introduce low cost and/or no cost conservation practices; • To liaise with members of the various departments to promote energy efficiency;

Participants at workshop

The objective of the workshop was to improve the Department's current statistical capacity in the use of the Redatam software. REDATAM (REtrieval of DATA for small Areas by Microcomputer) is a software program that provides users with a quick and easy means of creating, processing and accessing databases from censuses or surveys for analysis. Among other uses, REDATAM currently facilitates micro data analysis via the internet.

Mr. John Auguste

The training was considered very timely since it formed part of the preparatory activities for the 2011 Population and Housing Census. It was sponsored by the United Nations Economic Commission for Latin America and the Caribbean (UNECLAC) and was facilitated by CELADE, the developers of the software.

Participants included officers of the CSO and statistical units in the other line ministries. Government regards the improvement of statistics in its overall thrust to improve economic management and planning.

• To sensitize all staff and the general public on Energy Conservation methods through good public relations; • To design activities to aid in good electricity and water conservation patterns; • To encourage good practices in vehicle and transport use • To partnership with the telecommunication provider (s) to promote energy conservation and efficiency;

MINISTRY OF FINANCE ON TRACK TO IMPLEMENTING ENERGY CONSERVATION PROGRAMME

• To reward and recognize those exhibiting excellence in energy conservation methods in the Ministry, as a form of motivation.

As part of its waste reduction programme, and in keeping with the Energy Conservation Programme announced by the Minister of Finance in his 2010 Budget Speech, the Ministry of Finance launched its Energy Committee on Wednesday November 17th 2010.

Based on these goals, the Committee has developed an Action Plan involving the following:

In keeping with the main objective of the Energy Conservation Programme, the Energy Committee is committed to fostering a culture of energy savings within the Ministry.

In this regard they have set the following as their main goals:

• Acquisition of Vehicle Fleet Management Software; • Installation of an effective vehicle management system and use of related software; • Displaying of energy conservation signs and messages in all departments; • Circulating of energy conservation tips via text messages from telecommunication service providers; Continues on pg. 17

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

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

Continued from pg. 16

• Displaying of energy conservation messages on all computers connected to the Ministry of Finance servers, at stipulated frequencies, or, intervals; and • The introduction of 'KILL-A –WATT' Day. The Government anticipates that it can reduce and effectively save at least 10% of its current electricity consumption by implementing these no cost and low cost energy conservation measures in all Government ministries and departments.

FUNDS APPROVED FOR GRENADA'S PHASEOUT OF HCFCs At the 62nd Meeting of the Executive Committee of the Multilateral Fund for the Implementation of the Montreal Protocol on Substances that Deplete the

Secretariat for approval in August of this year. As an annex to the proposal, the Grenada delegation also submitted a request, and got approval for, an increase in the disbursement of funds, for the first five years, from 27% to 50% of the total funding. The first tranche is expected to be disbursed to Grenada in January of 2011 As a result of this approval, the intermediate phase-out targets set by the Montreal Protocol would require Grenada to freeze it consumption level in the year 2013, at the average of its 2009 and 2010 consumption and reduce consumption by 10% of the baseline in the year 2015.

This phase out target is set for all developing countries.

Apart from reducing the negative effects on the Ozone layer, the phasing out of the Ozone Depleting Gases will also yield synergistic climate benefits since these gases are also potent green house gases with significant Global Warming Potential (GWP).

Grenada was represented at the Executive Committee meeting by Mr. Leslie Smith., Committee member for 2010 – 2011 and Project Officer in the National Ozone Unit (NOU) in the Energy Division of the Ministry of Finance. The NOU is charged with the responsibility of successfully implementing activities that will ensure that Grenada meets and sustains the Montreal Protocol targets.

LAUNCH OF VALUATION APPEAL BOARD The Government of Grenada launched its Valuation Appeal Board, on Thursday December 16th, 2010.

Mr. Leslie Smith

Ozone Layer in Montreal Canada, US$210,000.00 was approved for Grenada to phase out 35% of Hydro chlorofluorocarbons (HCFC) consumption by the year 2020. This approval placed Grenada among the first Latin American and Caribbean countries to receive funding approval for Hydro chlorofluorocarbons (HCFC) Phase out Management Plan (HPMP).

Grenada, having successfully met the phase-out targets for Chlorofluorocarbons (CFCs) in 2010, is now attempting to phase-out another group of chemicals, with lower Ozone Depleting Potential (ODP), known as HCFCs. These HCFCs are used only in the refrigeration and air-conditioning servicing sector in Grenada.

This new project was prepared after extensive local survey in the refrigeration and air-conditioning sector and several national stakeholder consultations. The project was submitted to the Multi-lateral Fund

Ms. Claudette Joseph, Chairperson Valuation Appeal Board

The Appeal Commissioners, who form the Board, are to hear and adjudicate on appeals of any taxpayer who files an appeal with the Board after assessment of valuation of their property by the Comptroller of Inland Revenue.

They will also arbitrate appeals on Property Transfer Tax. Continues on pg. 18

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Finance 17 INSIDE

Continued from pg. 17

Environment Facility - Fifth Cycle (GEF-5) in 2011”, from December 16th and 17th 2010 at the Grenada Red Cross Conference Room, Lucas Street, St. George.

Members of the Valuation Appeal Board

The Board is chaired by Ms. Claudette Joseph, Attorney at law.

In his feature address at the opening of the Workshop, the Minister for Finance, Honourable V. Nazim Burke lauded Grenada's achievements under the GEF Small Grants Program within the last two years. He highlighted the fact that with dynamic leadership and strong commitment, Grenada was able to turn around its performance to become the number one performing country in the programme in the region. Minister Burke also spoke of the unique partnerships among the GEF donor countries and implementing agencies and charged the participants to seize the opportunities being provided under the various Multilateral Environmental Agreements (MEAs) to bring about positive results at the local levels. He said “Our Mantra over the next four years should therefore be PERFORMANCE and RESULTS”.

The other members of the members of the Board are: - Mr. Andrew Alleyne - Mr. Fabien Purcell - Ms. Gina Steele - Ms. Dianne Adams - Secretary The launch of the Valuation Appeal Board comes as Government continues to strengthen Inland Revenue Department's ability to enforce all the tax laws.

GRENADA SETS PRIORITIES FOR GEF-5 The United Nations Development Programme (UNDP) Office within the Department of Economic and Technical Cooperation of the Ministry of Finance, coordinated and hosted a national workshop on “Identification of National Priorities for the Global

Participants at workshop

Under the GEF-5, Grenada will be allocated substantially increased grant funding to support the work in the national focal areas of Biodiversity Conservation, Climate Change Mitigation, Land Degradation, and Chemicals and Persistent Organic Pollutants. Such focus should result in enhanced sustainable environmental management in Grenada.

The Workshop brought together 65 participants which included key persons involved in environmental management from the community based organisations (CBOs), non-governmental organisations, private sector entities and Government ministries and departments.

They deliberated on the environmental threats and national priorities for Grenada in 2011 and beyond.

Presentations were made, by Grenadians involved in the field, on the four (4) focal areas: Mr. Paul Phillip presented on Biodiversity Conservation; Ms. Aria

Participants at workshop Continues on pg. 19

18 Finance INSIDE

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

Continued from pg. 18

Johnson presented on Climate Change Mitigation; Mr. Augustus Thomas presented on Land Degradation; and Mr. Paul Graham presented on Chemicals and Persistent Organic Pollutants.

Board, traveled to Brussels in December 2010 to participate in an investment promotion exercise which was hosted by the Grenada Embassy in Brussels.

Other members of the Grenada delegation included Mrs. Cathyann Alexander-Pierre, Senior Investment Promotions Officer at the GIDC; Mr. Michael Gunn, Director of Bacolet Bay Development Resort; and Mr. Dan Nicholson, Director of Levera Resort Development.

The workshop was jointly facilitated by Dr. Reynold Murray- Programme Manager, Energy and the Environment,-UNDP (Barbados and the OECS), Mr. Giles Romulus – Sub-Regional Coordinator GEF Small Grants Program UNDP (Barbados and the OECS), and Ms. Tracy Phillips of the UNDP – (Barbados and the OECS).

IFAD APPROVES GRENADA'S MARKET ACCESS & RURAL ENTERPRISE DEVELOPMENT PROGRAMME

A seminar was held at the Sofitel Hotel in Brussels and was facilitated by Ambassador Stephen Fletcher. There were over forty delegates plus media from the UK, Belgium, Spain and Hungary in attendance. They expressed interest in projects relating to tourism, agriculture, agribusiness, geothermal and solar energy.

Mr. Christopher De Riggs

th

On December 5 2010, the Executive Board of International Fund for Agricultural Development (IFAD) approved funding for Grenada's Market Access and Rural Enterprise Development Programme (MAREP), which is expected to become effective in February 2011.

With this approval, IFAD will make available to Grenada, a loan of three million USD dollars / eight million, one hundred and fifty thousand Eastern Caribbean dollars, on ordinary terms.

MAREP will be jointly funded by the Government of Grenada, the Caribbean Development Bank (CDB) and IFAD. The total cost of the project is estimated to be USD $7.5 million / ECD $20.376 million. The Government of Grenada's contribution is estimated to be USD$ 2.227 million, CDB USD $2 million, IFAD USD$ 3 million and beneficiaries contribution of $270 thousand USD.

MAREP's main goal is to contribute to the reduction of rural poverty and vulnerability of rural young unemployed or self employed men and women in 50 rural communities in Grenada and Carriacou. The programme's objective is to increase the income of rural young and unemployed or self employed men and women.

GRENADA INVESTMENT PROMOTION A delegation from Grenada, headed by Mr. Christopher De Riggs Director of Private Sector Development in the Ministry of Finance and Vice Chairman of the GIDC

Mr DeRiggs presented an overview of the Grenadian macro environment highlighting the government's policy of competitiveness, especially its successful implementation of business friendly reforms. He also emphasised the government's policy of partnering with the private sector and the five transformative sectors to reenergise investments in the hotel sector and other key sectors. “The investment promotion act represents a predictable and transparent tract for investors to run on and provides security of investments whether they be foreign or domestic” said Mr De Riggs. Mrs. Pierre, presented on Grenada's Investment opportunities.

The developers made presentations on their projects in Grenada and took the opportunity to make particular mention of the very stable investor friendly business environment. In addition to making presentation the developers also met with a number of potential investment partners.

The delegation also held meetings with KBC bank, the Centre for the Development of Enterprise (CDE) and ING Bank.

“It was a resounding success” said Ambassador Fletcher, who also expressed his thanks to the local manufacturers who contributed sample products as gifts to the guests. He further stated that he was very pleased with the outcome of the exercise and the prospects for future investments in Grenada.

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

Finance 19 INSIDE

Highlights • The Grenadian economy has been stabilized and is now poised to start growing again.

OF 2011

BUDGET

• This Budget has been carefully crafted to spur the recovery and create jobs. It is also forwardlooking; recognizing our prosperity tomorrow depends on what we do today.

• It combines fiscal prudence and enterprise.

• There are no new taxes.

• There are no cuts in any social programmes including social safety nets.

• The capital budget has been expanded from $159.0 million to $203.7 million. When compared with the $150.2 million that was spent last year, this is an increase of 35.6 percent.

Some Members of the 2011 Budget Day Presentation Team

• The allocation for tourism, the lead earner of foreign exchange, has been increased.

• The 10% tax rebate to manufacturers has been extended.

• The allocation of Agriculture and Fisheries has been increased.

• Personal income taxes on severance payment made to workers by employers upon involuntary termination of employment has been waived for a period of 4 years.

• The tax relief to the construction and automotive industries has been extended.

• The allocation for community development projects has been increased by 90% from $2.75 million to $5.25 million thereby creating more jobs for our people and improving services in our communities.

• A Youth Employment Initiative to provide employment opportunities for 1500 young people will be launched. In this regard, the allocation for the Youth Upliftment Programme has been tripled from $4.0 million to $12.6 million to provide hope, training and employment opportunities to our youth.

• Employment opportunities for a further 300 persons between the ages of 15-24 under the Population and Housing Census.

• Delivery 361 housing units to Grenadians on completion of Phase I of the Chinese Housing project in Mt. Gay and Soubise. Commencement of work on 390 housing units in Frequente, La Calome, Diamond and Mt. Rose. In preparation for the construction of these units, Government will spend $2.0 million on infrastructural works thereby create jobs for more Grenadians.

• A clear and compelling vision for the country driven by our five transformational sectors, namely Information and Communication Technology, Agribusiness, Energy Development, Tourism and Hospitality Services, and Health and Education Services.

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