'We need help! We need external funding' - Premier Smith
However, Dr The Honourable D. Orlando Smith (AL), Premier and Minister of Finance, made a strong statement that the Virgin Islands (VI) needs loans in order to move forward with its recovery.
In a document from the UK called High Level Framework for UK support to VI hurricane recovery, the territory had to agree to a strict set of rules in order to receive money, proving that the UK did not trust the National Democratic Party (NDP) Government with handling the territory's hurricane recovery loans.
The document called for good governance and transparency from all ministries, in addition to creating a Recovery and Development Agency Board which will manage the monies received.
The many stipulations that Premier Smith signed on to, allegedly without fully discussing with all his members of Government, have drawn much criticism and condemnation. Some have accused Premier Smith of returning the Territory to a form of colonialism.
Premier Smith, hitting back at his numerous critics, during a statement on ZBVI 780 AM on Monday, March 12, 2018 emphasised that the territory cannot recover on its own.
He said, "We must not for a moment see this as a yoke around our neck because the UK will provide a guarantee for our borrowing, so that we will be able to borrow on much more favourable terms. For instance, we can borrow at an interest rate of just under one percent, compared to 3.5 percent that we would have to pay without the UK guarantee."
He continued, "Whether we borrow $100 million per annum or less will be determined by our ability to effectively spend that money, or invest that money, in our future.”
The Finance Minister explained that the $400 million guarantee from the UK is a "maximum figure", while adding that the territory might require less but has the access to the money if more is needed.
"We have lost sight of the prize"
The Premier pointed out that the discussion on borrowing loans from the UK has gone on too long and it is time to "act".
He said, "I feel at times that we have lost sight of the prize. It is now time to act! We cannot continue to look like a third-world, bombed out shell of who we were prior to September 6, 2017. The reality is that we need to get our people back to work in a comfortable and productive environment. The reality is that our residents need comfortable houses to live in, good roads to drive on, and a reliable electricity supply.”
Furthermore, he commented that the territory needs money to rebuild all the facilities to attract visitors back to the VI.
"Without investing in these amenities business will not only stagnate, but business will move elsewhere. We need help. We need external funding," he said.
Opposing views
Meanwhile, the government of the day has been receiving immense pressure from the opposition and residents, condemning the UK loan agreement.
It was Honourable Julian Fraser RA, Third District Representative during a series of public community meetings and in the House of Assembly (HoA) in which he stated that the government is "mortgaging the children's future" by seeking to borrow huge amounts of monies without a proper plan in place to ensure Virgin Islanders benefit significantly.
He also warned the VI against borrowing from the International Monetary Fund (IMF), instead advising that loans be sought from "local institutions".
In addition, a billboard was erected in Road Town behind Vanterpool Pharmacy opposing the UK framework policies.
According to the Premier in a previous statement, he stated that he does not know who was responsible or the billboard, but suggested that it could be individuals from his very own party.
Additionally, Honourable Andrew A. Fahie, Opposition Leader and First District Representative, has been speaking out againist the way in which the ruling govenment has been going about seeking input on the Recovery and Development Plan. He mentioned that he is not against borrowing and believes that the territory needs help to recover.
33 Responses to “'We need help! We need external funding' - Premier Smith”
All those who are saying he should not take the funds, to date, have not presented a more logical and territory focused alternative. In fact, these are folks who sit comfortably in their homes at night and don't need to worry much where their next meal is coming from; yet they desire to hold the economy hostage with their political biases.
He is not a puppet. Just because he is not foaming at the mouth like a young dumb a%% doesn't mean he is a puppet. He understands that there is a time and place for everything and everyone will never agree with everything others say/do.
The UK provided £10M ($13M) in grants and £300M ($403M) in loan guarantees with some strict terms and conditions. The terms and conditions have unleashed a robust and raging debate on accepting the terms and conditions. Some feel that the terms and conditions rekindle the embers of colonialism, imperialism and neocolonialism. However, the realIty is that government made a universal decision to agree to the terms and conditions without the opportunity for a strong debate and approval in the HOA.
Nonetheless, whether it is the UK guaranteed loans or other loans, money still needs to be borrowed to invest on the recovery. The territory’s progress/recovery is being held in the balance. It is time to decide on a course of action in regards to borrowing. Lets get ah dun? Residents need to see and feel some action and energy on the road to recovery.
Let’s lead like eagles, not careen off the cliff like buffaloes.