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NEWS
TURKS AND CAICOS WEEKLY NEWS
April 8-14, 2017
Unemployment and construction to see major shifts in next few years BY DELANA ISLES UNEMPLOYMENT in the TCI is expected to decline over the next few years, with expected growth in construction. This was outlined in the Fiscal Strategic Policy Statement (FSPS) recently tabled in the House of Assembly. The forecast was made by the Strategic Planning and Policy Department (SPPD) and is based on the current economic climate charted in the FSPS. The document states that the unemployment rate, which is currently estimated to be less than 10 percent is substantially lower than the 17 percent in 2012, which was calculated from data obtained during the last census. The department suggests that the decline is due to the increased participation in the country’s growth by increasing number of residents. The report further outlines that the TCI now enjoys a stable macroeconomic environment with relatively healthy public finances, and as a result the Government now has a more predictable planning horizon. Inflation rate was estimated at 2.2 percent in 2016, slightly lower than the 2015 rate, and is now projected to be around two percent in 2017 and 2018. The macro economic performance of the TCI over the years and going forward can be examined through two aggregates: real gross domestic
product (GDP) and real GDP per capita. Both indicators suggest that the TCI has made significant advances between 2009 and 2015. Real GDP increased from $522.8 million in 2009 to $644 million in 2016. This represents an average annual growth rate of 3.4 percent. Real GDP per capita increased from $14,522 in 2009 to $16,844 in 2016, representing an average annual growth of 2.3 percent. CONSTRUCTION Construction activity is expected to increase slightly in 2017 and is projected to show steady growth over the next few years, the report states. It adds that this sector will be propelled by foreign direct investment in large-scale tourism related and other projects, as well as a revitalisation of stalled projects and other new private sector projects. These are expected to be complemented by increased public sector spending on capital works, which include a number of road works throughout the TCI, projects funded from the Carnival Infrastructure Fund, as well as other government projects. The real estate sector is forecast to grow by 3.4 percent and is expected to see continuous growth over the next five years. AGRICULTURE AND FISHING The agriculture and fishing sector is
expecting growth of 5.7 percent and the department is forecasting larger growth increases in future years. TOURISM The tourism sector has made a major turnaround with stay over arrivals increased by more than 10 percent during the first six months of 2016 when compared to the same period in 2015. It is forecasted that there will be an even larger increase in future years, as more rooms are added to the hotel stock.
TRADE The TCI merchandise imports totalled about $389.3 million in 2016, representing a decline of $20.4 million or five percent for the same period in 2015. Exports from the TCI during 2016 were valued at $4.5 million, compared to $4.6 million in 2015.
SPPD noted that this resulted in an overall merchandise trade balance of approximately $384.8 million in 2016 and the lowering of the overall trade balance by more than five percent or $20.2 million. The department further forecasts that due to the increase in the tourism sector, the attraction of foreign direct investment, the projected growth in the construction sector and the lack of a more diversified group of exports, it is likely that the trade imbalance will continue to increase in the near future.
InterHealth Canada was contracted to design and build the hospitals as well as equip, maintain and staff them for 25 years
Government to make hospital contracts audit public BY OLIVIA ROSE
Published by Turks & Caicos News Company Ltd. Cheshire House, Leeward Highway, Providenciales P.O. Box 52, Turks & Caicos Islands, BWI W. Blythe Duncanson - Publisher/Editor-in-Chief Olivia Rose - Senior Reporter Daisy Handfield - Staff Reporter Faizool Deo - Sports Editor (At Large) Cord Garrido-Lowe - Graphics Consultant (At Large) Dilletha Lightbourne-Williams - Office Manager Email: (Advertising) tcnews@tciway.tc, (News) tcweeklynews@gmail.com Tel. 649-946-4664 (office), 649-232-3508 (after hours) Website address: www.tcweeklynews.com Follow us on: Facebook: facebook.com/tcweeklynews Twitter: twitter.com/tcweeklynews1
The SPPD is also forecasting that the hotel and restaurant sector, which grew by approximately four percent in 2016, will grow by about six per cent in 2017.
THE CONTRACTUAL agreement between InterHealth Canada and the previous Government is currently being scrutinised. Minister of Health Edwin Astwood on Tuesday (April 4) disclosed that his administration is in the process of conducting a comprehensive review of the health sector and several statutory bodies. InterHealth Canada has been a source of considerable controversy since it was awarded the contract to build and manage the TCI’s two hospitals back in 2008. Concerns included a contract that was withheld from the public, the high cost of healthcare and the immense price of construction. The PDM while in opposition called for a thorough financial and clinical audit into the hospital contracts. However these calls seemingly fell on deaf ears until 2014 when the Progressive National Party (PNP) administration decided to launch a financial and clinical audit. The previous Government remained mum on the findings. This week the health minister
revealed that the Contracts Management Unit and the Service Review Board are currently carrying out a number of audits. He assured that the findings of these reviews will be made public soon. The PDM Government has maintained the position that a review of the hospitals contract will ensure important oversight bodies and committees are established to protect the people’s health and review their care. The InterHealth hospitals contract resulted in two two-storey hospitals - one in Provo with 20 beds and the other in Grand Turk with 10 beds that came at a high cost to the people of the Turks and Caicos Islands. The ‘exit clause’ in the InterHealth contract is reported to have penalty cost of $125 million, exclusive of the $125 million mortgage on the hospital buildings, which has a reported 12 per cent interest rate. If the mortgage runs its full 24year course, the buildings will have cost TCI residents half a billion dollars. INTERHEALTH CANADA In January 2008 former Finance Minister Floyd Hall and Health
Minister Lillian Boyce signed an agreement on behalf of the TCI Government to see two new hospitals constructed. InterHealth Canada was contracted to design and build the facilities as well as equip, maintain and staff them for 25 years at which point the responsibility will be handed back to TCIG. The company hired Johnston International to build the $125 million facilities - work began in 2008 and was completed in 2010. KPMG commenced a financial audit of the hospitals in March 3013 and submitted an initial draft summary of the findings to TCIG in July of that year. The document was then presented to Cabinet in September following which former Premier Rufus Ewing told media that issues and concerns had been passed to the Contract Management Board. Ewing explained that the “interim” report could not be made public because signing off had not occurred. No publication of the hospital audit and a lack of transparency were just some of the issues the PDM highlighted.