SSB funding into Stimulus Plan must be explained - Hon Penn
"I am pleased that some important needs are being looked after and support given in several areas, such as unemployment, small businesses, farming and fishing and health protocols for returning quarantine persons, many of which were previously outlined in our plan," Hon Penn said in a May 29, 2020, statement.
The Opposition Leader; however, has questioned the source of funding.
Source of funding
Premier and Minister of Finance, Hon Fahie announced a $62.9M Phase 2 Economic Stimulus Plan on May 28, 2020.
"This for us is very encouraging, as our ultimate objective was and still is to ensure that you the people receive the support you need and rightfully deserve," Hon Penn said regarding the Opposition's stance on the people of the Territory receiving the support.
As part of the funding, the premier announced some $40M will come from SSB.
According to Mr Penn, "I am; however, concerned that most if not all, of the $62.9m of funding for this plan is coming from our Social Security Board. I am even more concerned that this is being termed a grant."
Explanations needed - Hon Penn
Hon Penn said what is very unclear to him is if that funding could or should be had as a grant. "It is incumbent upon the Premier and Minister of Finance to justify and explain this, in the context of the Board’ s current financial position, its legality and its long term sustainability," he said.
Premier Fahie has noted that Government has been trying to avoid touching the taxpayers' "piggyback" due to the upcoming hurricane season, seismic activity in the area and COVID-19 pandemic, hence leaving room in case the VI is struck by another disaster.
“Left with no alternative, your Government reached out to the Virgin Islands Social Security Board which has agreed to provide the people of the British Virgin Islands with a special COVID-19 grant in the sum of $40M towards our efforts in providing social and economic relief and stimulating economic activity," he said.
The Economic Stimulus Plan has also been boosted with a $17M grant from the SSB’s Affordable Home Construction Project and “another grant of $2M to assist with infrastructure."
'If you not careful you will puke'- Hon Fahie
Premier Fahie had previously sharply criticised the Opposition for trying to tell the public the Virgin Islands Party (VIP) Government didn't care about the people during this global pandemic when they, the Opposition, failed to address critical matters to assist the public in times of crisis when they were in government.
"Those who are there bellowing now had those decisions to make, they had those legislations to amend. They did not do it. Now they have come forward with a plan for the very things that were to be done by them and telling the people we don’t care.
"If you evaluate these things totally. Forget political parties, just evaluate them totally. When you hear some of these things, who they were…and they are not new things, they were there to be done. If you not careful you will puke. We have sat down with Social Security and they have told us these were things that were there to be done.
"So we have told them to bring them forward now. We have attached whatever help that they need and we are bringing them forward now. And some of them is what you going to hear on May 28...the decisions we have made and the adjustments we have made to move forward," Hon Fahie had said at a press briefing at the conference room of the Office of the House of Assembly (HoA) on May 21, 2020.
21 Responses to “SSB funding into Stimulus Plan must be explained - Hon Penn ”
Its crucial more than ever that our leaders needs to work together for the residence of these beautiful Virgin Islands and years to come.
They have stocks and shres in multiple companies to pay the pension fund. They also have cash reserves of $800 million that is where the $40 million comes from, that 5% of the cash reserves is overspill from Expats leavig the territory after being here for less than 3 years and so not claiming any of that money back, there is millions more.
The major purpose of Social Securoty Act was to provide Old Age pension/grant, Disability pension/grant, Survivor pension/grant, Funeral grant and Sickness and Maternity benefits. Though all of the funding should not have been sourced from the Reserve Fund, the Rainy Day Fund was intended for situation as the BVI is currently in. More of the funding should come from the Rainy Day Fund, maintaining an above the line amount to help with other emergencies, ie, hurricane disaster. If there is one good thing that the NDP did, it was feeding and caring for the Rainy Day Fund. Giving Jack his jacket, it was a good plan and foresight in this instance. Moreover, if social security is flushed with cash that it can dish out $40+M in grants , perhaps it can lower the employee and employer contribution rates. Further, it can keep the same contribution rates plus more to create unemployment insurance, though unemployment should be under the Dept of Labour.
Bringing an agenda item before the HOA to explain the stimulus action is good governance. By the way, what good is the UK? In a territorial crisis in the OTs, the UK is a useless, AWOL and MIA. I guess Britannia no longer rules the waves or the sun does set on the Empire.
EVERYONE should get a percentage of what they put in to date regardless of whether working or not. How the h€!! can you be giving who didn’t put in and don’t be giving who put in? What the h€!! is this? Is this justice?
We been paying social security for long an plus when they ready to take their payments they take their payments good, so what happen if they somehow find money to pay is who in need, not cause you have big government money stash off an living good the rest of we have to suffer, so relax an leave we eh
The Social Security Board is in a sound financial position based on the financial reviews and as such it decided to give the government that grant and I think it is a very good corporate practice to contribute towards the development of the territory. I give my unswerving support to the decision. When the country develops all of us benefit from it. The stimulus helps to create employment in the territory and more Social Security contribution will be collected if the employers pay their contributions to the Board.
Indeed what will be beneficial to the Board is to employ a few inspectors who will visit ALL the businesses to ensure that they pay their contributions that they collected from the employees and pay it to the Board. This will enhance the financial standing of the Board further. I am sure there are MANY defaulting employers who do not pay their contributions to the Board and that is what Hon. Penn should address forthwith. Thank You.