BUDGET RESPONSE 2015/2016

A ‘CAN-DO’ COMMITMENT TO ECONOMIC REVIVAL

July 27th, 2015

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Madame Speaker, colleague Parliamentarians, fellow citizens of Dominica, on behalf of the leadership and members of the United Workers Party TEAM Dominica – the Parliamentary Opposition of Dominica - I rise in response to the 2015 Budget Statement of the Dominica Labour Party Government delivered by the Minister of Finance Hon. Roosevelt Skerrit on July 24th, 2015.

In their individual responses, the other nine members of our Parliamentary team who serve in our 10 member alternative Cabinet, will address matters specific to their portfolios as follows:

Name Designation1 Hon. Lennox Linton (MP) Finance, Foreign Affairs, Diaspora Affairs,

Public Service, Social Security & National Security

2 Hon. Joseph Isaac (MP) Tourism, Aviation, Ports, Urban Revitalization & Cultural Industries

3 Hon. Joshua Francis (MP) Legal Affairs, Immigration, Labour & Kalinago Affairs

4 Hon. Danny Lugay (MP) Health, Wellness & Sports5 Hon. Ezekiel Bazil (MP) Agriculture, Lands, Forestry & Marine

Resources6 Hon. Hector John (MP) Education, Human Resource Development,

Information & ICT7 Sen. Dr. Thomson Fontaine Economic Planning & Development,

Employment, Trade, Enterprise Development8 Sen. Isaac Baptiste Housing, Physical Planning, Energy & The

Environment9 Sen. Monell Williams Community Development, Social

Transformation & Youth Empowerment 10 Sen. Felix Thomas Communications & Works, Public Utilities,

Water & Mineral Resources

What a difference a year makes? Last year during the budget debate, my brother Dr Irving Pascal and I were savaged in this honorable house by the Prime Minister because he did not like our righteous stance and our just,

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truthful representations for God and country. In this year’s budget session, Dr Pascal is commended by the Speaker for supplying the flowers that beautify this august chamber and I have the privilege to stand for the people of Dominica in response to the 2015 budget statement of the Prime Minister.

Keeping it real, the parliamentary opposition responds in sacredness of national duty to the cluelessness of an oversized, CANNOT DO administration proud of consistently achieving the worst economic management performance results in the Eastern Caribbean Currency Union for fifteen straight years

In contrast, our mission is to develop and grow a model green economy that rewards enterprise, puts our people to work for decent wages, gives a fair chance to all and secures our place in the global trade of goods and services. This mission emerges from the global positioning strategy prescription of our national anthem:

Isle of beauty, isle of splendour,

Isle to all so sweet and fair,

All must surely gaze in wonder

At thy gifts so rich and rare

Rivers, valleys, hills and mountains,

All these gifts we do extol

Healthy land, so like all fountains,

Giving cheer that warms the soul

Dominica, God hath blest thee

With a clime benign and bright,

Pastures green and flowers of beauty

Filling all with pure delight,

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And a people strong and healthy,

Full of godly reverent fear

May we ever seek to praise Thee

For these gifts so rich and rare.

The leveraging of these gifts so rich and rare for global economic success should be a governance labour of love especially for a labour party that came into government 16 years ago pledging that all shall eat. Instead, the nation has been burdened with the CANNOT DO expertise of a ruling party tightly focused on inflicting public pain for personal gain.

Things are bad and getting worse… but in this cruel tale of two countries the boasts of how well government is doing makes it crystal clear that the country the government talks about is quite different from the one in which the people struggle and catch hell. As the struggle continues, as the hell fires of socio economic deterioration burn, people are losing hope, intimidated by their government into the belief that this is the best we can do… we cannot do anything to rise from this mess of governance failures

In response to the 2015/2016 budget proposals, we keep it very real. Dominica can do much better. Indeed, Dominica can become the best.

The Prime Minister wants this “to be the start of a period in our development where the interest of the country is paramount, where there can be bi-partisan support for measures deemed to be in the best interest of Dominica”.

That era Mr. Prime Minister began with a United Workers Party TEAM Dominica commitment to stand not for a red, blue or green Dominica but for the greatest good of the Commonwealth of Dominica. In fact in keeping it

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very real, we have welcomed government’s initiatives to address specific national issues as much as we have urged government to make use of our ideas and suggestions especially those dealing with economic growth and job creation.

The spirit of bi-partisanship is already bearing fruit. After severely criticizing as an unrealistic pie in the sky, the United Workers Party TEAM Dominica plan to grow the economy by 5 – 7 percent per year and thereby create 5000 new jobs in three years, the Prime Minister is now enjoying a change of heart and mind.

He tells us in this year’s budget presentation Government’s economic growth target is 5 – 7 percent and he has already counted over 1,000 jobs that could be created in this budget year alone. After years of dissing agriculture in favour of tourism and services; and after thumbing his nose at the UWP TEAM Dominica commitment to revive agriculture as a key engine of growth he now tells us that his government’s plan is to “maintain agriculture as a leading contributor to economic growth”. He has embraced the tax reduction approach to increasing the competitiveness of Dominica’s tourism product. He is increasing the budget for destination marketing. And he has accepted the recommendation to introduce time share legislation

All of these proposals were put forward in our 2014 budget statement at the Arawak House of Culture last year. It was savaged as a side show. It was put down as foolishness… a waste of time. One year later that same 2014 budget statement at the Arawak is the source of useful growth measures for the government. In the cause of national development, we welcome the adoption of these measures by a ruling party whose agents and hired guns continue to fire away at us as Dominicans with nothing to offer. For the

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avoidance of doubt our hands are “on deck and to the plough”. We have reported for duty.

We nonetheless lament the enduring obsession with the same old failed policies of exclusion, secrecy and petty political partisanship that have made a complete mockery of the parliamentary oversight responsibility for preparation of the national budget and the management of public finances.

The Prime Minister says and we believe “Development… is about participation, mutual respect, love of country and hard work. It is not about participation of some. It is about the involvement of all”.

I take it Sir that especially in this honourable house you only say what you mean and mean what you say… So I will only ask, where then is the provision for the involvement of the parliamentary opposition at stages in the budget preparation cycle where it can meaningfully contribute to the annual revenue and expenditure planning exercise?

Once again this year we have a budget that lacks credibility because it is not the product of an effectively anchored, bi-partisan parliamentary mechanism to decide on and fund the growth and development priorities of Dominica. Once again, parliament is being asked to adopt the rubber stamp mode dictated by the executive, for the consideration and approval of a budget that is not designed to (and therefore cannot) serve as a tool to deliver the fundamentals of the national agenda.

Typically, a national budget shows how government will prioritize and achieve its annual and multi-annual objectives. It’s not just about financing new and existing programmes… it is also about implementing fiscal policy,

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and thereby impacting the economy as a whole. It is the budget that must provide guidance for bringing plans and aspirations into reality.

The budget is supposed to be a contract between government and the people, showing how resources are raised and allocated for the delivery of public services. Accordingly, the budget must be clear, transparent and credible in order to command trust, and to serve as platform for accountability.

Dominica therefore needs a budget formulation process that:

Presents budget outlook and budget strategy papers for better public understanding of the fiscal strategy driving the revenue and expenditure allocations

Issues Medium Term Expenditure Framework guidelines Uses Sector Working Groups and Ministerial Public Expenditure reviews

to bring together input from ministers, parliamentarians, public officials, the private sector, civil society organizations and private citizens

Engages a Finance Committee of Parliament, the Budget Office and Sector Hearings to consider these contributions and transform them into action-oriented proposals for the betterment of Dominica.

Engages an Estimates or Finance Committee of Parliament to review and approve the Estimates of Revenue and Expenditure

Promotes trust among citizens that government, is listening to and acting on their concerns, has a plan for achieving worthwhile objectives, and will use the available resources effectively, efficiently and in a sustainable manner.

Once parliament approves the budget, allocations should be effectively implemented by the ministries and agencies of government to secure the intended development benefits. Revenue collection and spending as authorized in the budget must be subjected to proper oversight throughout

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the year by the Public Accounts Committee, the Audit Department, the Budget Office and line ministries as appropriate.

We must break with the tradition of pigeon-holing the Public Accounts Committee into a primary concern with audited reports on government finances and empower it to embrace the discipline of oversight in real time. Let’s keep it real. In any event reports from the Director of Audit are backlogged three to four years, which condemns the PAC to oversight of history while live revenue and expenditure performance goes unchecked.

We cannot continue the practice of silence on the implementation of budget allocations after approval by Parliament. There must be periodic budget performance reviews that allow parliament to note the trend of overall collection and spending and prepares Cabinet to reassess budget alignment with fiscal objectives and development priorities. This will mean budget execution reports, including in-year and audited year-end reports designed to yield useful improvement messages on performance and value-for-money.

In democracies around the world, the parliamentary budget oversight focus is on “Budgetary governance” - the processes, laws, structures and institutions to ensure that the budgeting system effectively meets these requirements. Here in Dominica, after 15 years of same old, same old… it is time for integrated budget formulation systems and monitoring procedures that are coherent and consistent across all levels of governance in the public interest

Background

1. Over the past 15 years the Dominican economy has suffered from a chronic lack of economic policy leadership resulting in low and declining growth, rising unemployment, and increasing poverty. In the

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last 5 years, the Dominican economy grew at an average of less than one percent per year, well below the 5 - 7 percent required to generate sustained employment and to reduce the incidence of poverty. Ironically the Dominica in which Labour Party ministers and their friends are doing extremely well is the same Dominica in which the people are catching hell.

2. Characteristically, in today’s Dominica we find: no jobs; low paying jobs; working poor people; no more savings; the unpaid monthly bills are piling up; land, houses, vehicles and appliances are being repossessed; the days on hungry bellies continues to increase; no money for school fees and school books and school clothes; in many cases no options left but to sacrifice dignity as a beggar at the mercy of a government minister.

3. The economy is in shambles and we are witnessing the consequent social ills particularly among the youth where unemployment is the most acute. This also translates to a growing segment of the population requiring government assistance and the provision of a ‘social safety net’. Government’s main revenue efforts continue to be focused on the VAT, which was introduced in 2006 and in the last fiscal year accounted for 35 percent of total revenues. This shows a modest decline over the 2009 level, which is a further indication of an economy in decline. At the same time, grant funds are falling well short

of the targets putting further pressure on government revenues.

4. The Minister of Finance has developed the habit of blaming Dominica’s poor economic performance results in the last 5 years under his watch on the “global financial crisis”. And he persists with his obsession in the absence of evidence that the nature of Dominica’s connection to

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global markets justifies any such assignment of blame. Of interest, the IMF 2012 Article 4 Consultation Report tells a completely different story:

“The structure of Dominica’s economy renders it less sensitive to spillovers from the world business cycle. The small scale of the tourism industry and the preponderance of stay-over visitors from Caribbean countries make it less vulnerable to the business cycle fluctuations in key tourism markets, as only a third of stay over visitors are from United States, United Kingdom, or Canada – the smallest share in the ECCU. Moreover, a large share of the stay over tourists from the U.S. is accounted for by students at the offshore medical schools, whose decisions to travel to Dominica are less likely to be influenced by economic developments than pleasure tourism. In the agriculture industry, output is mainly influenced by domestic factors such as weather and crop conditions.

“Because of the nature of Dominica’s international linkages, local developments tend to influence economic performance relatively more than regional or global ones. In particular, growth in Dominica shows only little correlation with that of advanced economies, significantly less than other ECCU countries that show a tight relationship during most of the past two decades… Most of the growth in Dominica, is explained by country-specific factors rather than direct impact of global or regional developments… However, growth in the other ECCU countries has a much closer relation to advanced economies...”

5. So on the critical issue of growing the economy, creating jobs and expanding socio economic advancement opportunities for the people, how has Dominica performed under this DLP administration in comparison with its ECCU neighbors who unlike Dominica have been

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really feeling the effects of the global financial crisis?

6. At the end of 2014, according to the Eastern Caribbean Central Bank, the GDP for Dominica, the total value of goods and services in the Dominica economy was EC$1.4 billion which makes Dominica the smallest economy in the big six territories of the OECS. In fifth position ahead of Dominica is St Vincent and the Grenadines with a GDP of EC$2.0 billion – six hundred million dollars more than Dominica. St Kitts occupies position number 4 with a GDP of EC$2.3 billion. Grenada with a GDP of EC$2.5 billion is in 3rd place behind Antigua in 2nd place with a GDP of EC$3.4 billion. St Lucia tops the group with a GDP of EC$3.8 billion.

For the 15 year period 1999 to 2014, the average annual growth rate for the Dominica economy was the slowest in the 6 nation grouping at 3.87 percent.

COUNTRY 1999 2014 Growth$ Growth% AVAntigua 2.1B 3.4B 1.3B 63% 4.19%Dominica 0.9B 1.4B 0.5B 58% 3.87%Grenada 1.3B 2.5B 1.2B 89% 5.94%St Kitts 1.1B 2.3B 1.2B 119% 7.92%St Lucia 2.1B 3.8B 1.7B 81% 5.40%St Vincent 1.0B 2.0B 1.0B 95% 6.35%

7. In terms of tourism, touted as the leading growth engine, when we come to the critical indicator of overall visitor spending in the six OECS tourist destinations finds Dominica is at the bottom of the group again with an average visitor spend of EC$170 million. In all of the other five territories, the average visitor spend is in excess of EC$200 million.

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You had Antigua and St Lucia >EC$780 million; Grenada > EC$334 million; St Kitts & Nevis > EC$250 million; and St Vincent &the Grenadines > EC$211 million.

8. Since the Dominica Labour Party took office in 2000 the trade deficit, the difference between exports and imports has doubled to over half a billion EC dollars.

9. Annual Foreign Direct Investment inflows to the OECS for 2001 - 2014 as reported by the UN Economic Commission for Latin America and the Caribbean (ECLAC) confirm the severe performance deficiencies of the largest Cabinet of Ministers in the grouping:

OVERALL PER ANNUMAntigua & Barbuda US$2.2 billion US$160 millionSt Lucia US$1.7 billion US$122 millionSt Kitts US$1.6 billion US$114 millionSt Vincent US$1.3 billion US$ 94 millionGrenada US$1.2 billion US$ 83 millionDominica US$0.4 billion US$ 31 million

10. The ECLAC FDI statistics also reveal that since 2000, Dominica is the only country in the big six of the ECCU grouping in which Foreign Direct Investment was less than EC$100 million per year. Every other country attracted in excess of EC$200 million per year on average over the period.

11. Wages and salaries combined with debt interest payments have over the past five years accounted for more than [50] ‘percent of current spending. The capital expenditure program of the government has been focused largely on improving public road works to the

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exclusion of feeder roads. Consequently while Dominica has benefited from an improved road network, the agriculture sector has suffered because of a lack of focus on key infrastructure and the absence of related marketing arrangements.

12. Growing government expenditures combined with stagnating revenue have led to increasing fiscal deficits and a growing debt burden, which if left unchecked can only result in further disruptions in the economy, lower growth and galloping poverty.

13. So have been forced to grin and bear the worse economic decline in our nation’s history, where the local private sector is disappearing at an alarming rate, tax revenue continues to fall… even VAT, for years the revenue saviour of government has joined the band of underperforming taxes as the economy remains in the clutches of a leadership paralysis in which it has become impossible to correct the failed strategy of treating the revenue/expenditure performance of government as the economy of Dominica. In the circumstances, our best and brightest minds continue flee from financial persecution in their homeland only to have their talents harvested by our neighbours where they find refuge.

BUDGET CREDIBILITY

14. Regrettably, the 2015/2016, Budget Statement of the Prime Minister and Minister of Finance, confirms that the CANNOT DO DLP Administration continues to fiddle with the nation’s business. What we should be doing, is finding and implementing solutions to the problems that continue to beat down the economy. Why would anyone believe the tall stories about prudent management of public finances and

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grand promises to grow the economy served up once again in this year’s Budget statement?

15. For the fiscal year 2015/2016 government is forecasting overall expenditure of $563.0 million and overall revenue of $551.4 million – a deficit of $11.6 million. But For the previous fiscal year, government’s overall revenue fell more than $120 million short of the approved budget for a deficit in government’s overall fiscal operations of $50.3 million, according to the Finance Minister

16. Last year, 2014/2015, the plan was to spend 552 million dollars to take care of Dominica’s nation building business as determined by the DLP administration. $378.5 million to meet recurrent expenditure and $173.8 million for capital expenditure. To finance those provisions, the DLP administration proposed recurrent revenue of $417 million ($312.5 from taxes; 104.5 from non-tax sources) and capital revenue of $173.8 million comprising $60.0 million from the government of Dominica; $38.3 million from loans and $75 million from grants.

17. These targets were not met last year… and with no explanation or suggestion of any corrective action to improve performance, the recurrent revenue estimate for this year is $420.4 million against recurrent expenditure estimated at $367.2 million for a current account surplus of $53.2 million. Keeping it real? Really? The reality is it will not happen. Capital expenditure is budgeted this year at $184.2. It will be financed by $51.7 million from government; $33.1 million from loans; and 99.4 million. Based on past performance, and keeping it very real, this dream will not come true.

18. At the end of 2014/2015, the capital expenditure forecasted at $173.8 million was only $113.6 million - meaning $60.2 million or 35%

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of the capital budget for development projects remained unfunded. The DLP administration that boasted great expertise in getting grants from its many friend around the world and therefore knew where every red cent of project funding would come from, actually fell short of its 2014/2015 grant funding target by $30 million dollars or 38%... almost 40 out of every hundred dollars of grant money promised to fund the capital budget did not materialize. Understandably, increasing implementation failures continue to plague the Public Sector Investment Program and the DLP administration remains incapable of corrective action.

19. On the recurrent side of the 2014/2015 budget, the Minister of Finance projected to generate a current surplus of $77.2 million. He gave the impression that he could manage the public finances to allow government to collect $77.2 million more than it had to spend for recurrent expenses. It did not happen. The recurrent revenue forecasted at $417 million closed the year at $356.7 million - $60.3 million below the target. Interestingly, the more than 400 pages of the 2015/2016 estimates give no indication of the recurrent expenditure numbers for 2014/2015. But we learned from the Finance Minister’s Budget Statement that it was $354.5 million which means a current account surplus of $2.2 million - $75 million dollars less than what the finance minister promised to achieve. No explanation has been given for the difference of $23 million between the 2014/2015 approved recurrent expenditure of $378.5 million and the actual recurrent expenditure of $354.5. What were you authorized to spend $23 million on but didn’t, and why? What aspect of government operations no longer needed the $23 million for which approval was secured from this Parliament? It is difficult to trust these current account numbers in respect of a fiscal year in which government was busy overspending an

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underfunded capital budget in selected areas

20. The 2014/2015 promise - a current account surplus of $77.2 million; the performance - a current account surplus of $2.2 million. The revenue decline began more than years ago. The IMF actually raised the red flag on underperforming taxes masked by windfall economic citizenship revenues in the wake of the Arab Spring as far back as 2012. Government has failed to reverse this accelerating revenue slide because of its chronic inability to grow the economy.

21. Of course, it was an election year… so notwithstanding the significant capital revenue shortfall, the Minister of Finance created the avenue to increase expenditure on certain items as follows:

2014/15 B 2014/15 A DIFF 2015/16 BNEP $7.0 m $14.4 m $7.4 m $5.0 mPublic Support $1.0 m $4.0 m $3.0 m $1.5 mHousing $32.0 m $36.2 m $4.2 m $13.6 mConstit. Emp. $2.0 m $4.0 m $2.0 m $2.0 m

$42.0 m $58.6 m $16.6 m $22.1 m

22. With all these forecasting irregularities, and don’t care spending the debt stock continues to climb as the debt servicing challenges intensify in an environment of unchecked falling revenues

23. Still, the unfulfilled promises of the 2014/2015 budget are mind boggling:

In housing, we heard of the commencement of construction of 1,500 houses. To date the DLP administration CANNOT Do it.

The 2014/2015 budget stated that government would finally deliver on 16

a more than 6 year old promise to operationalize pack houses. To date, the DLP administration CANNOT Do it. But in keeping it real… more promises for 2015/2016

There was supposed to be improvement work at the Portsmouth and Marigot hospitals and the commencement of the long awaited state of the art national hospital. To date, the DLP administration CANNOT Do it. But in keeping it real… more promises for 2015/2016

There was a plan to start actual construction work on the Roseau River Promenade. To date, the DLP administration CANNOT Do it. But in keeping it real… more promises for 2015/2016

Construction of an indoor sporting facility at Stock Farm was included in the list of projects planned for the 2014/2015 budget year. To date, the DLP administration CANNOT Do it. But in keeping it real… more promises for 2015/2016

The 2014/2015 budget also highlighted initiatives grow the economy that would see the light of day before June 30th, 2015

As has been the case for the last 4 years, we were promised a vessel to transport people and goods cheaply between the islands. To date, the DLP Administration CANNOT Do it. But in keeping it real… more promises for 2015/2016

The more than three year old promise that the Coffee Processing Plant at One-Mile would begin processing coffee was made again for the 2014/2015 budget year. To date, the DLP administration CANNOT Do it. But in keeping it real… more promises for 2015/2016

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There was a commitment to complete the Morocco funded Cabrits Hotel and Spa on which construction commenced four years ago. To date, the DLP administration CANNOT DO it. But in keeping it real… more promises for 2015/2016

There was an expectation influenced by statements in the 2014/2015 budget that ongoing discussions about a passport money funded Kempinski Hotel in the Cabrits and hotel in the public works location would give way to concrete action to bring both into reality. To date, the DLP administration CANNOT Do it. But in keeping it real… more promises for 2015/2016

The 2014/2015 budget statement asked us to expect a geothermal development agreement with a French Consortium in October 2014 on the way to bringing the domestic plant on stream. To date, the DLP administration CANNOT Do it. But in keeping it real… more promises for 2015/2016

We even had a commitment in 2014/2015 budget statement that “…work will commence on the road aspect of the Roseau Enhancement Project focusing on the roads in the vicinity of the Dame Eugenia Charles Boulevard”. To date, the DLP administration CANNOT Do it. But in keeping it real… more promises for 2015/2016

24. Now that the Prime Minister has started counting jobs to be created in the productive sector projects he has been talking about and/or working on, but cannot finish, we need to keep it real with an analysis of the opportunities that are lost the DLP administration glorifies its inability to deliver:

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PROJECT HC AMS ANNUALBananas, Plantain 250 1,200 3,600,000 Abattoir 28 1,400 470,400 Coffee Plant 22 1,400 369,600 Poultry 46 1,200 662,400 Morocco Hotel 204 1,400 3,427,200

550

6,600

8,529,600

25. What then can the members of this DLP administration do with the resources approved by this parliament for the good, just and progressive governance of Dominica year on year?

26. They spent in budget year 2014/2015, without budgetary approval, a quarter of a million dollars to entertain supporters dressed in red at the October 2014 political event to rename the Melville Hall Airport. Nine months later, the official name of the airport by Act of Parliament remains the Melville Hall Airport.

27. We hear of concerns at the highest levels of government that there is racketeering of visas and work permits in the Labour Division of Government. This is a department that facilitates the inflow of money into the treasury from the issue of visas and work permits to foreign nationals. There is an allegation shared with the head of the division that racketeering - organized crime – is bedeviling this public service responsibility. But no one seems concerned enough to do anything but to quietly ask the Labour Commissioner himself to fix it.

28. Then of course, members of the DLP administration travel, they travel, they travel… as the song says: “they having their fun and getting paid they boasting about the trips they made… cause their party running the country… they have the power and authority to take

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their foot on taxpayers money”.

29. They travel to sell passports; they travel to sign passports… and they travel to Malaysia to be wined and dined by their passport buddies at My Dominica Trade House and to associate themselves with the investment projects which My Dominica Trade House claims it operates in Dominica, but which no one has ever seen. The annual budgets of this DLP administration over the years tell us chapter and verse of its to-be-commenced and the cannot-be-completed projects to grow the economy… But not a single word so far about the allegedly completed and operational limousine service, aqua prawn farm, energy solutions company, spring water bottling plant and the quintet of medical centres of My Dominica Trade House. Hundreds of young Dominicans should be working at these facilities endorsed by a DLP administration that is budgeting money again this year to rent jobs for struggling unemployed persons on a short term basis. Yet we see and hear nothing but the lies told to the world by My Dominica Trade House and accepted by their friends in the DLP administration. In addition to all they claim to have done which we are still waiting to see, there is a promise of investment in a five star hotel. Would that be the one planned for the public works location that we have heard about for the past three years? Or is that another one? Is it in the 2015/2016 budget?

30. During the 2014/2015 budget year, a senior public officer with state financed citizenship by investment responsibilities attempted to transfer from overseas $1.5 million into his personal gas station account and declared the source of funds as sale of passports. This is the same budget year in which the revenue from economic citizenship forecasted at $80 million turned out to be only $25 million dollars – a shortfall of $55 million. Do we have any explanation for this massive

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shortfall in economic citizenship revenue from those who appear to have entitled themselves to multimillion dollar payments for Dominica’s passport selling services? Not a word! But the 2015/2016 estimate of NON-TAX revenues from economic citizenship is $70 million even though it was only $25 million in the previous year. They are keeping it real indeed.

31. Somehow, the nation is being led to expect the Budget to be successfully put together and implemented by persons proud to be operating without the discipline of playing by the rules. No law seems to constrain them and no Constitution can tell them what to do either. As members of this honorable house they observe the silence of lambs in the face of violations of the qualifying criteria for membership and then behave as though nothing has happened while one of their own sits defiantly, in breach of the Constitution and the operation of law as an invalid member of Parliament. The contract signed by Senator Jahisiah Benoit with the Government of Dominica represented by Permanent Secretary in the Ministry of Health Helen Royer on April 22nd, 2015 puts him in breach of sections 32 (5) (a) and 35 (3) (c). And the only honorable course of action available to him is to vacate his seat by operation of law. He is a bright young man who may wel have aspirations of becoming the next prime minister of Dominica. But that is not the point. We are here to set the example of upholding the constitutional rule of law in the words and deeds that discharge our parliamentary responsibility for oversight of the budget cycle in the interest of a better Dominica. It’s about being accountable for doing the right thing according to the constitution and the rule of law. If we don’t, where will the poor people of this country yearning for better days find credibility in a budget management process deprived of its moral compass?

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32. We see massive over-spending of the approved budget for constituency empowerment for example… So the assumption is that constituencies are being empowered… Which constituencies? Constituencies represented by Government MPs. The MPs of the parliamentary opposition know absolutely nothing about these millions being spent and overspent on the empowerment of constituencies. In the face of such blatant iniquity in the allocation of budgeted resources where is the basis to trust the stewardship of those responsible for implementing the budget approved by this honorable house.

33. I conclude this segment of the budget response with an example of how a minister of government deals with funds approved in the budget to be spent on helping the less fortunate. (Justina Charles empowers)

SOCIAL IMPACT OF DLP’s ECONOMIC DISASTER

34. In the absence of an overarching vision and a road map for economic transformation the DLP administration continues to tinker from one budget to the next promising much and delivering little. The neglect and abandonment of the means of livelihood of people in a predominantly agriculture-based economy has severely affected personal and household income, productivity, motivation and quality of life all around the country. Unemployment, underemployment, hopelessness and the working poor phenomenon have led to migration, drug abuse, youth alienation, crime and violence.

35. When, after 15 years of watching their government do nothing about rapidly deteriorating farm access roads, the powerless people of Salisbury turned to their tool of protest, they sent a powerful wake up

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call to their brothers and sisters especially in rural Dominica that is time to force the issue of getting back to the farms to grow the food we need to survive and thrive

36. The response of the police using funds from the public purse to brutalize, intimidate and put the protesters under heavy manners with gun fire and expired tear gas, epitomized the disconnect between the worthwhile aspirations of the people and the ad hoc self serving plans of the ruling party.

37. As a matter of top national priority, we request adequate provisions in the 2015/2016 budget to identify and retain appropriate medical expertise to determine the health risks to which citizens of Dominica were exposed in that recklessly irresponsible use of expired tear gas at Salisbury on May 11th, and June 11th, 2015. We also request budgetary provisions for government action to provide the medical care and attention that have become necessary for the victims of this law enforcement atrocity. And we demand a proper budget allocation to immediately turn the police inventory of expired tear gas over to a relevant international organization. Let’s keep it real!

VISION

38. UWP Team Dominica Vision for Dominica is sustainable, harmonized growth and development in which every Dominican has an opportunity to have an education; proper health care; a job; an affordable home; a reasonable standard of living and quality of life, in a peaceful and secure social environment. We are committed to making Dominica the best place to live, the best place to work and the best place to enjoy life. To this end, we recommend a long-term economic plan will build a stronger, more competitive economy; a fairer society;

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create more jobs; and secure a better future for Dominica by:

making Dominica a low-tax jurisdiction open to increased investment dollars across all growth drivers from at home and abroad

backing small business and enterprise with better infrastructure and lower job taxes in an environment of strong, market driven revival of agriculture, tourism and manufacturing;

boosting the activities and performance of the construction sector; maximizing the economic benefits of our water, music and cultural resources;

ensuring no nonsense implementation of renewable energy projects; and embracing ICT as the backbone of our bid to earn a profitable place in the global trade of goods and services.

condemning to the dustbin of history the governance disgrace of having the largest and most inefficient government in the OECS officially unplugged from the responsibility to green, renew and grow the economy.

adjusting taxes and duties to help hardworking people be more financially secure

ensuring welfare based on merit and prioritizing employment opportunities for Dominicans first so the economy delivers for citizens who want to work hard and play by the rules

delivering the best schools, skills and apprenticeships for young people

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so the next generation can succeed in the global race

39. Nonetheless, we are now in the vice-grip of a worsening economic crisis which can only be reversed by getting employment and business income into the hands of the poor, suffering people especially in the villages of Dominica. The revival of market driven agriculture must be priority number one as we set out to achieve growth of 5 – 7 percent per annum and thereby establish the platform for the creation of 5 000 new jobs within three years.

UWP Team Dominica Growth Strategy

40. The UWP Team Dominica’s strategy for immediately rekindling growth in Dominica’s Economy, is to remove the most binding constraints on our most important growth sectors:- Tourism, Agriculture, Construction, the Diaspora and Foreign Direct Investment.

Low Returns on Investment

41. “Low Returns on their Investments” seems to be the most binding constraint on all five growth sectors, Tourism, Agriculture, Construction, the Diaspora and FDI. A low return on investment also seems to explain, why Dominica attracts the lowest level of Foreign Direct Investment (FDI), among OECS States.1. In the Tourism sector, the most critical factors leading to low profitability on investment, run down properties and eventual closure, are low room occupancy, and high taxes. 2. In the Agricultural sector, the most critical factors leading to low profitability on investment, abandonment of farms and eventual sale of lands, are: Disorganized markets, high production costs, and inadequate technical support to the farmers.

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3. In Construction, the most critical factors leading to low returns on investment both to the homeowners and contractors. High taxes on materials, and high property transfer fees. 4. Besides the financial support which our brothers and sisters in the Diaspora give to their families, much of the Diaspora investments have been in Tourism, Agriculture, home Construction. Thus they fall victims to the constraints leading to low returns on investment, forcing many of them to abandon Dominica and return, with no encouraging news for other Diaspora members.5. In the case of FDI, in addition to the constraints mentioned, corrupt practices by government officials and their agents, in awarding of government supply contracts and fiscal incentives seems to be a major factor leading to low returns on FDI.

42. UWP Team Dominica believes that by removing these binding constraints on these most important growth sectors, government can jump start the engine of growth in Dominica’s Economy, and immediately begin a cycle of economic growth and job creation.

43. In the medium term, as we rebuild “Dominica’s Confidence in itself”… as we facilitate and support new innovative ideas in ICT, Financial and Professional Services, Manufacturing, Renewable Energy, Water industries, Sports, Music and Cultural Industries, the Dominica Economy will enter an orbit of sustained growth at the level of 5-7%, generating thousands of good paying permanent jobs annually.

THE GROWTH AND EMPLOYMENT INITIATIVES

44. This segment of the 2015/2016 Budget Presentation outlining the growth and employment agenda of the United Workers Party TEAM Dominica is dedicated the young people of Dominica, especially those

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who have lost hope in that long night of pessimism and broken dreams visited on them by the CANNOT Do government. Finally it is clear that the neglected, misunderstood and taken-for-granted young people of this country can enter an era in which they will have jobs, their parents will have jobs, their brothers and sisters will have jobs, their girlfriends and boyfriends will have jobs… they will eat bread from the sweat of their brows, they will be their own people, spend their own money, make their own life building decisions… from today of honest work, they will create yesterdays of pleasant memories and tomorrows of brilliant hope. We dedicate the growth agenda as well to our senior citizens who can now rest assured that their children and grandchildren no longer face a future of crippling uncertainty.

Growth Enhancing Policies

Agriculture

45. Agriculture is central and critical to Dominica’s short and long term development strategy. Thus tremendous effort must be placed on the revitalization of this sector in order to stimulate the rural economy. This will involve improved land management, direct support to farmers and fishermen, technology deployment, and improvement in agricultural and fisheries infrastructure in order to enhance

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productivity and production volumes.

46. We must prioritize spending on irrigation systems, green houses, and a comprehensive feeder road network. Tax and fiscal incentives must also be provided to the private sector to invest in agro and root crop processing plants as well as a chocolate factory. The coffee processing plant must commence operations within the first three months of this fiscal year.

47. In 2015/2016, with $11.3 million for operations and $24.7 million for capital projects, the Ministry of Agriculture has been tasked to pay attention to 5 crops – bananas, plantain, coffee, cocoa, citrus; pork and poultry; pig rearing; sheep and goats. Keeping it real, the reality is, if we are serious about agriculture, this mandate falls well short of reasonable expectations.

48. In addition to revitalizing our traditionally successful agricultural products – bananas, plantain, root crops, breadfruit, avocadoes, ginger, peppers, mangoes, paw-paws, pineapples - we must reopen the sector for successful niche business in select global markets for high value products like coconut oil; cocoa; coffee; cashew; vanilla; essential oils – bay oil, vertiver, patchouli, lemon grass and wellness herbs like industrial & medical marijuana, mint, cumin and basil.

49. Overall, beginning this year, we must work towards the goal of doubling production volumes within three (3) years in the areas of fisheries, horticulture, food crops and livestock in order to ensure food security and increased export earnings.

50. We must Develop and implement an agricultural land use, land zoning and land bank policy to make idle lands available for

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production.

Provide direct support to farmers and strengthen the institutional framework including, but not limited to, extension service and research and development.

Provide access to finance and Technical Assistance (TA) support to entrepreneurs, farmers, fishermen and fisheries cooperatives involved in fishing and agricultural production, processing of meat, fish, crops and vegetables.

Develop a network of farm access roads to new and existing farm holdings and provide required capital investment to ensure optimum production levels.

Facilitate the increase in agricultural exports to CARICOM, French Territories, USA and Europe by establishing trading houses in these targeted markets.

Introduce the “Entrepreneurship In Agriculture” programme.

51. To ensure market success, government must commit, beginning in this budget year to guaranteed purchase of targeted agriculture produce and fish of commercial value; providing suitable cargo boats for agricultural exports as well as fishing trawlers in major fishing communities and improved landing sites for fishermen.

Manufacturing, Agro-processing and Natural Resources

52. UWP TEAM DOMINICA recognizes the largely untapped potential of Dominica’s agricultural and natural resources and its light

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manufacturing sector. Work must commence this year towards attaining our true economic potential. We must diversify the economy through innovation, the nurturing of infant industries, and facilitating the addition of value to their supply chains from product sourcing to production to delivery. The encouragement of import substitution business initiatives will reduce the country’s massive trade deficit, build capacity for world trade and create much needed jobs.

53. The Goal is to increase Dominica’s export earnings by 100% within the targeted economic subsectors over the next three years.In this regard, government must, starting this year, remove the VAT and other taxes on raw and packaging materials. Access must be provided to low cost and venture capital financing, training and technical assistance support, to new and existing businesses in light manufacturing, agro processing, quarrying, and water export. Parliament must review the fiscal incentives act, quarry related legislation and regulations as deemed necessary, and enact Small Business Legislation. In this budget year we must streamline the application process for new business start-ups to result in a one stop shop that improves efficiency. We must also develop a comprehensive human resource development program aligned to the priority industries.

Construction Housing and Infrastructural Development

54. UWP TEAM DOMINICA is fully committed to the revitalization of our construction industry, through the development of an affordable and climate resilient housing stock and infrastructure, in a transparent and responsible manner. We support the rehabilitation and expansion Dominica’s infrastructure through the Public Sector Investment Program (PSIP) and Public- Private Sector Partnership (PPP).

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Furthermore we support stimulation of the construction sector through policy reform in order to boost economic growth, generate new jobs, improve housing conditions, instill pride and ensure the health and safety of our people.

55. Side by side with the responsibility to provide housing support to those in need government must develop a housing market that will make it easier for employed young Dominicans to own their own homes

56. In this fiscal year, duties must be removed on construction and building materials; government must facilitate the provision of low interest rate loans for housing, commercial and industrial development through the AID bank and other financial institutions; government must engage in foreign policy initiatives with friendly governments and donor agencies in order to finance public infrastructure development projects; and transparent public sector procurement procedures must be enforced.

Tourism

United Workers Party sees the Tourism Sector as one of the major growth and job creation sectors of Dominica’s Economy. To achieve the required growth and create the necessary jobs for our people, Government must immediately set upon a strategy to increase hotel occupancy by 25% - 40% and cruise visitors by 50% within the next two years. The multiplier effect of this increase in Tourism income to the hotels and its employees, and the increased income it creates directly to restaurants, tour guides, vendors, night clubs, tour and taxi operators, and the indirect income to musicians, beauty parlours and spas, the increased sale of farmers vegetables and meat, the increased sales to fishermen for fish, more than compensates government for the revenue foregone, in reducing the VAT to hotels from

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10% to 7.5%.

UWP 5-STEP MISSION TO RESCUE TOURISM & JOBS

1. Enact Timeshare Legislation- Fill Hotel Rooms- Solve Finance Problems.

“Timeshare is one of the most powerful Tourism Marketing and Financing strategies which is being used across the Caribbean and the World to develop Tourism. Timeshare Legislation, will give hotel owners access to this guaranteed tool of success to market and finance their properties, and get themselves out of the debt trap in which Hotel Sector is presently caught. Timeshare will give the local Private sector a guaranteed strategy for high room occupancy. Timeshare will generate the necessary capital for locals to upgrade their properties, build additional rooms whilst at the same time they reduce their present burdensome debt, or even become free of debt.

When UWP left office 15 years ago, the National Development Corporation, had already began drafting of Timeshare legislation, based on research of the various Time Share Legislations in the Caribbean. We applaud the government’s decision to accept the recommendation to enact time share legislation in this fiscal year. This was long in coming. More than a decade of timeshare benefits have been lost to the struggling hoteliers of Dominica. But keeping it real; we say better late than never.

Right now, the Caribbean is among the most highly demanded timeshare destinations and timeshare industry supply is not meeting the demand.

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Timeshare sales continue at a good pace and have gone past the US$10 billion mark. Part of the reason given for this continued growth is the fact that purchased interests can be converted into exchange points or other methods, so the timeshare owner doesn’t always have to return to the same property but has choices for vacations throughout the world.

This record of sales gives troubled or developing resorts solid opportunities to raise capital and keep their properties afloat in these tight lending times.

The Carrousel Hotel in Cancun, a failing resort was converted to a timeshare property in its entirety.

The owners, Sunset Group, renamed it the Ocean Spa Hotel and repositioned it as a wellness resort with high-end amenities. They purchased the property for $13 million and put $5 million into renovations. In their first two years they reported over $50 million in unit sales.

These are numbers that governments promoting tourism, hotel owners, and especially those holding excess inventory in the high-demand Caribbean region, would be wise not to ignore

It is time for time share legislation in Dominica. Accordingly, I am pleased to lay on the table of this Honorable House a draft bill (based on the Belize Act) for a Timeshare Act in Dominica

2. Cut Taxes on Tourism and Make it Competitive(a) Remove the 10% government transfer Fees on Tourism properties. Government proposes downward revisions to the stamp duty, vendor fee and judicial fee components of the transfer fee. Our proposal is to remove it

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completely. Presently, a Dominica investor who owns say 5 to 10 acres of land valued at about one million to two million dollars, and would like to put it into a company as his equity in a Tourism Project, whether by himself or with another local or foreign partner, would have to pay Government between $100,000.00 and $200,000.00 just to transfer the land into the Company. The removal of this burdensome fee will enable more locals with land to invest their lands in Tourism.

(b) We welcome government’s decision to remove the VAT on free meals to hotel/resort employees and on complimentary rooms for tourism promotion. Once again, we recommend a reduction of the VAT on hotel operations to 7.5% across the board to make Dominica’s Tourism competitive and in line with the other OECS islands. In the OECS, the Government of Dominica charges the highest VAT on Tourism.

3. Dominica Trade & Marketing Center in French Islands- Double Marketing Budget and FOCUS ON Core French Islands - EU Markets

In order to take maximum advantage of the New European Partnership Agreement (EPA) we must establish a permanent, professionally staffed all year round “Dominica Trade and Marketing Centre in the French islands to promote Tourism and Tourism investment in Dominica, and to also market Dominica’s Crafts, Music, Culture and Agriculture. The Caribbean is our core Market accounting for 50% of Dominica’s stay over visitors, more than half of which comes from the French Islands. The increase in the Tourism Marketing budget from $4 to $6 million is not enough; and still way below the Caribbean norm of 2-3% of visitor spending. Again, we recommend an annual tourism marketing budget of at least $10 million.

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The present policy of sending trade missions to the French West Indies, just before, World Creole Music Festival, just before Carnival, and a few other times in between, is not the most effective way of growing the French Caribbean market.

4.Promote Our Kalinago People & Give them a Fair Share of the Tourism $$

Towards this goal, we must:Tap the huge global funding and other resources for Indigenous Peoples to do major Sites, hotels, and other development initiatives in the Kalinago Territory and Atkinson .Build a Five Star “Eco & Heritage Resort” in the Kalinago TerritoryExpand the marketing of the traditional Kalinago crafts industry Develop a Jewelry and Precious Stones Industry in Kalinago Territory including (gold & silver craft, gasper, turquoise and amber.) Develop a leather craft and Tanning Industry in Kalinago TerritoryProtect Kalinago Intellectual Property and Branding through copyright and Trade Marks.

5. Bring Back Carnival Cruise line Weekly Calls

Due to DLP Government’s neglect of basic amenities for the vendors, taxi operators and Tour guides, Dominica lost its best Cruise line, Carnival Cruise line in 2010. Carnival Cruise line used to visit the island every week, bringing over 150,000 cruise passengers per year to the island. Carnival ships were the biggest buyers of bulk water from DOWASCO and the Carnival passengers were the best customers for the vendors. UWP Team Dominica knows the key people at Carnival and what they want to see done, to get Carnival back. In this budget year Government must make the Bay front Improvement and the

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Improvement of the Cruise passenger experience on the island, a top priorities .

AIR ACCESS IMPROVEMENT STRATEGY

As part of the Strategy for increasing returns on existing investments in Tourism, attracting New investments in the Key Growth sectors, and creating sustainable Economic growth and jobs, Dominica must move ahead to deliver the International Airport, started in 1997, during first term of Office of the United Workers Party.

Since gaining independence, every administration has advocated intentions to construct an international airport. In this year’s budget, the DLP is again promising an international airport. Keeping it very real, the reality is, the UWP is the only party that has gone beyond talk and study to concrete implementation of this important piece of Dominica’s economic infrastructure.

The massive spending at Melville Hall by this CANNOT DO DLP administration has not positively impacted visitor arrivals by air into Dominica and by extension our stay-over tourism sector.

The upgraded Melville Hall Airport with night landing was commissioned in 2010. Annual visitor arrivals before 2010 at Melville Hall Airport were generally higher than the number of arrivals since the advent of night landing at that airport. This failed DLP air access strategy has also created a costly nuisance for motorists commuting the only main public road at Melville Hall. Additionally, lands purchased by the UWP for international airport development remain abandoned

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Recognizing the urgency and great importance of improved air access and an international airport to sustainable economic advancement of Dominica, government needs to institute the following measures:

Facilitate establishment of a Dominica based airline and negotiate with LIAT and other carriers to provide express and direct air services between Dominica and the thirteen (13) existing international airports located between San Juan to the north and Caracas to the south in order to secure same day transit into Dominica from major gateways in the US and Europe in particular. In pursuit of this objective, the government must work closely with local investors having similar interests, the diaspora, hoteliers, farmers and traders of agricultural produce, as well as friendly governments.

Establish the Dominica International Airport Development Project Management Office with responsibility for the following:Update detailed studies commissioned by the UWP administration for construction of the international airportSettlement of all issues surrounding lands purchased by the UWP for construction of the international airport and related developmentsMobilize financing and finalise arrangements for construction and commissioning of the international airport.

RENEWABLE ENERGY

In this day and age we cannot grow the economy of Dominica without the progressive development of our renewable energy resources. No one argues with idea that we can and must make Dominica the world’s premier clean and green destination where competitive energy costs encourage local and foreign investment by ensuring that 100% of Dominica’s energy needs is produced from renewable sources.

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We can do it… we can do it within five years… So let us do it… Let us start in this budget year… Let us:

Review, legislate and implement the national energy policy.

Remove all taxes on equipment and spare parts used in the generation of power from sustainable renewable sources.

Develop a sustainable energy industry which will include, but not limited to, research and development, manufacturing and export of technical services in the area of renewable energy.

There is a lot of work to be done… lets get it done

Let us Facilitate the private sector in the establishment of businesses to engage in the design, fabrication, installation, maintenance and enhancement of renewable systems.

Let us Introduce an Associate Degree programme in Renewable Energy Systems at the Dominica State College.

Let us Facilitate partnerships with these energy companies that will see young Dominicans trained in the design, service and maintenance of clean systems.

Let us Critically and thoroughly assess the development of geothermal energy to ensure its safety to our people, ecosystem, and the environment.

Let us establish small Hydro plants in the south East, north east and north west of the island, supported by an integrated, forest soils, water and other natural resource restoration and management program.

Let us develop the right mix of the production of sustainable energy using hydro, wind, and solar to optimize energy output.

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Let us provide fiscal incentives and tax credits to companies creating sustainable new jobs in the renewable energy sub-sector.

Let us encourage communities in sustainable energy usage initiatives through the establishment of several model eco villages.

FOREIGN DIRECT INVESTMENT

57. Another key component of the plan to stimulate growth and create new jobs is the ability to attract FDI flows. We can and must do better than the average of $31 million per year achieved over the past 15 years. To this end, government must commit to creating the enabling environment and putting in place the structural reforms through which prospective investors, especially the thousands who have purchased Dominican citizenship over the past 15 years will play their role in helping to move our country forward.

Reducing Waste

58. We enter budget year 2015/2016 with the DLP administration insisting on being a shining example of public sector waste with the largest Cabinet of ministers in the ECCU managing the smallest economy and delivering the worst performance results. In the Cabinet of 18, there are Ministers paid in excess of $100,000 per year to manage operating resources of less than $500,000. There are ministers managing capital spending portfolios with annual values of less than 1% of the capital budget. You have 4 or 5 ministers responsible for manufacturing and 3 or 4 responsible for the electricity business. Trade and commerce are getting separate ministerial attention… But in the world bank funded Caribbean Growth Forum

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where assistance is available to build our capability and capacity for export trade and commerce, Dominica has been inactive for three years. Keeping it real? Really? [comment on frugality of FS]

59. So what is the inside scoop on the capabilities of this ministerial army of occupation? Very early into this budget year, on July 7th, 2015, we got a brutally frank mini performance appraisal from an unlikely source – a minister of government sharing concerns with a high profile international civil servant prior to the commencement of a press conference when the microphones were already on:

“… even the Minister of Finance eh… not everybody holding their weight… like the Minister of Trade don’t even know about those measures and that’s something we discussed (I think) a couple of weeks ago… the potential measures for the increased taxation of cigarettes and stuff, he is not even all versed with it… a lot of times eh, when you see you discuss certain things… Oh My God! I forgot… Excuse me, these recorders are off? … I need them wipe off please… can you wipe it out please?”

60. The oversized Cabinet is accompanied by a contingent of highly paid advisors some of them with nothing to do but hang out at their media stations to demonize and dehumanize the members of the parliamentary opposition. And the hard earned tax dollars of suffering people lines their pockets every month.

61. The highly rated National Employment Program was not good enough for the unsuccessful Labour Party candidates who joined the ranks of the unemployed after the 2014 election, so an elite category of state funded employment was created for them at the rate of > $80

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thousand per year.

62. The oversized Cabinet, advisors and hangers-on couldn’t care less about wasteful spending on utilities, travel and other excesses of poorly managed public sector operations.

63. Now government increases taxes for driving on the road and for getting protein from meat sources with the exception of wings and back and neck. Keeping it real? Really!

64. The reality is that there is an urgent need to streamline spending by reducing waste and improving efficiency within government operations. This will ensure savings that can be used to fund critical requirements of the growth priorities.

65. Spending within the Public Sector Investment Program (PSIP) must be strictly monitored through the setting up of a Special Projects Team that will be charged with overseeing project tendering, monitoring and implementation. Priority within this spending envelope must be given to investment projects that support our growth agenda. In particular, government must continue to pursue the development of alternative energy sources including solar, wind, hydro and geothermal. Successful implementation of these investment projects will lead to reductions in the cost of energy, which is one of the major impediments to the growth of buoyant manufacturing and tourism sectors.

YOUTH EMPOWERMENT

66. The UWP TEAM DOMINICA understands the pain and the struggles of the young people growing up in the state of our current

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society. We strongly recommend urgent government action, beginning in this budget year, to facilitate job creation and business opportunities, provide and improve sports and recreational facilities, assist in the development of youth creativity and talents, to ultimately improve the quality of life of our young people

Let us therefore prioritize resources:

To Provide sustainable jobs for youth across all sectors

To Provide sports and academic Scholarships which involves transparent selection criteria based on merit and need

To Diversify subject areas in primary, secondary, and tertiary schools to include Technical Vocational training

To Develop of a comprehensive sports policy and action plan

To Provide exposure, business opportunities, technical and financial support for youth

To Further advance ITC integration in schools and workplaces

To Increase social safety netting for youth which would give young people facing social and academic challenges a second chance

To Provide job and housing opportunities for youth in city, sub- urban and rural areas

In this budget year, we must:

Develop a transparent system for accessing sporting and academic scholarships based on merit

Prepare and implement a sports facilities development plan and training program targeting youth across the nation

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Establish a youth village including a state of the art sound stage and video production studio along with specialized training and recreational facilities

review and enhance existing entrepreneurship programs and establish business incubators in Key Market locations for housing and technical advice for small business growth

initiate a comprehensive adoption of Internet Communication Technology (ICT) at schools, government institutions, and workplaces to improve productivity and speed up services and empower youth

facilitate participation of youth in local, regional, and international sporting tournaments and conferences

Work with educational institutions to include and expand on curricula to include entrepreneurship studies, as well as sports management, music, dance, culture, technical and vocational skills.

OUR GOVERNANCE AGENDA FOR CHANGE

ELECTORAL REFORM

67. Free and fair elections are indispensable to a properly functioning democracy. The DLP administration needs to stop playing self serving games with the work of the independent electoral commission and allocate in this budget year the financial resources needed for the completion of its work in two critical areas:Total re-registration of all eligible voters on the basis of which a new register of voters will be issued

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Issue of picture ID cards for voting to all eligible voters on the new register of voters who will be obligated to use the cards as identification during elections; beginning with the next general election whenever it is called

THE PUBLIC SERVICE

68. In the leadership responsibility for a better Dominica, UWP TEAM Dominica values caring, honesty, integrity, accountability, the pursuit of excellence, continuous improvement and world class teamwork.

These values must drive a clear government commitment to manage the public servants and services of Dominica to the highest levels of professional success in the public interest.

Parliamentary oversight responsibility for legislation, representation and public finances must be taken seriously and adequately funded. Parliamentarians must set the example of professional conduct in public life that adheres strictly to the constitutional rule of law. Public officers must be allowed to do the jobs professionally without any partisan political interference in order to ensure value for money, inefficiency and accountability in government spending.

LAW AND JUSTICE

69. Government must restore the pride and dignity of Dominica as a nation under God committed to truth, righteousness, justice, the constitutional rule of law and zero tolerance for crime, violence and other threats to national and global security.

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70. Government must stamp out rampant corruption that illicitly enriches ministers of government and their friends with public money cheated away from securing the greatest good for the greatest number.

LEGISLATIVE CHANGES

71. As a top priority, parliament must pursue constitutional amendments for a fixed election date every five years and a limit of two consecutive terms for anyone serving in the office of Prime Minister

72. Changes proposed by the Integrity Commission for the increased effectiveness of the Integrity in Public Office Act, and the widely discussed changes to the Sexual Offenses Act must be implemented in this budget year.

73. Government has promised that the Act to regulate the conduct of legal professionals will finally come into operation in this budget year. This is good news assuming that this more than 8 year old promise will be delivered. The Act to govern public procurement in Dominica came into effect automatically in January 2015, but in the absence of regulations it is not functional. Keeping it real, we recommend that government ensure that the Public Procurement Act promised in the wake of the garbage bin scandal 8 years ago is fully functional by September 1st, 2015

Health Care

74. World class Health Care is an important component in our vision of Dominica as the best place to live, work and enjoy life. Not only will

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it help keep our vital human resources at home, it will also encourage our brothers and sisters living overseas to relocate their talents, skills, special expertise and investments to the land of their birth. In this budget year, we urge government to commence collaborative work with relevant stakeholders to:

purge the inefficiencies of the status quo and thereby set the stage to resolve the national issue of health care financing;

empower Dominica’s offshore medical universities to play a greater role in providing tertiary care, including but not limited to the design, equipment and material sourcing; and operations in respect of existing and new hospital facilities

upgrade and modernize the primary health care system.

75. We welcome the actions proposed by government to deal with the challenge of securing and maintaining a healthy population. But do they go far enough?

76. The tax on unhealthy foods is a trend but will 10% cause any significant change. In the developed world, with significantly lower tax rates, tax impositions on unhealthy foods are usually 20%. How much money is expected to be raised? What percentage will go back into health education and promotion? Or is this just a way of finding money to pay hangers on labour party politicians employed in the ministry of health, to duplicate responsibilities and waste scarce resources?

77. Where are the strategies for making healthy foods cheaper? Where is the strategic plan for increased production, distribution and consumption of healthy local foods for example? Is this too much to

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ask for from the 2015/2016 action plan of the Ministry of Health in respect of which this honorable house is being asked to approve $52.1 million for operations and $19.5 million for projects?

78. Let us spend some money in the schools influencing healthy food choices at break time and prohibiting sale of junk food within reasonable distances from all school compounds during school hours. Let us limit advertisements of the goods and substances that increase the risk factors for chronic non-communicable disease. Let us encourage increase physical education. We missed a opportunity to put include cycling tracks, jogging trails and walkways for exercise along with EO Leblanc Highway. We need to revisit this… and Government needs to remove its politically motivated road blocks to the upgrading of Lindo Park so that the facility can begin to serve a wider range of fitness needs in a safe and more comfortable environment. What really is the plan for the new $78 million hospital on which the budgeted spend for 2015/2016 is $10.5 million. Is it going to a new location or will it be built at the PMH while normal services continue to be offered there? Will the Ministry of Health implement existing recommendations to improve the management of the old and hence the New hospital?

Education, Science and Innovation

79. Consistent with our commitment to educate our sons and daughters to successfully compete and win in the varied disciplines of global enterprise for self and country, we recommend that in this budget year government commences a review of our education system aimed at effectively aligning it with emerging socio economic realities.

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80. We believe for example that apprenticeships play a vital role in equipping young people with the skills they need to compete in the labour market, and which employers need to grow their businesses. Government is advised to consult with the private sector on the introduction of an Apprenticeship Grants for Employers (AGE) scheme.

81. The changing nature of the labour market is demanding higher skilled workers. There are however barriers in the education system that may be restricting the supply of these higher skills. To ensure Dominica can compete successfully in the global economy, government must investigate options to support increasing participation in targeted education and training programmes

82. Science and innovation are key drivers of long-run economic growth. Government must facilitate the commercialization of research and ensure the Dominica economy benefits from a world class science base.

ELDERLY CARE

For wellness, preservation of dignity and the continuing pursuit of happiness

83. It is the responsibility of government of the people, by the people, for the people to pay attention to continuous improvement in the living conditions of all citizens especially our seniors. In this regard, we must protect the spending money of our retired citizens by significantly reducing the VAT on food and utilities. Additionally, incomes must be reviewed regularly, starting in this budget year, to

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ensure that they are able to cope with cost of living increases.

84. UWP TEAM Dominica recommends establishment of 4 Senior Care Centers over the next five years, each with the capacity to accommodate up to 100 residents, in strategic locations around the country. The Senior Care Centers will provide food, clothing, shelter, medical attention, nursing care, companionship and Social Interaction for our senior citizens ordinarily condemned by circumstances beyond their control to lives of isolation and aloneness.

85. In partnership with Non-Governmental Organizations and charitable institutions dedicated to 1st class care for elderly citizens, government must utilize emerging best practices at home and abroad to develop standardized facilities that meet and exceed the requirements of our seniors in safe, clean, properly maintained and efficiently managed care centers. Each Center will have an outreach program comprising specially trained elderly care professionals dedicated to providing care as needed (especially at night and on weekends) for seniors living alone or living with family members, relatives or friends.

86. Residence in the Senior Care Centers and service from the outreach facility will be based solely on merit with priority going to those most in need based on assessments by the welfare professionals of the state.

87. This elderly care model will allow for easier ownership, sponsorship and participation by civil society. It will also give youth and children, through visits with our seniors as part of their family life curriculum, the opportunity to learn valuable history and cultural lessons that drive successful living. The self esteem the elderly will

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derive from sharing their experience, knowledge and wisdom will help preserve their dignity and add value to their continuing pursuit of happiness. MARIGOT CONSTITUENCY

88. In the constituency of Marigot our vision is to become a self sufficient, full employment eco city with modern education, health, sporting, and recreational facilities; a road network that effectively connects the residential, commercial, agricultural, tourist and recreational areas; 1st world water and sanitation services; 100% energy requirements from wind and solar; and a minimum 4G platform for world class ICT functionality

89. Starting in this budget year, the people of Marigot would like to see adequate resources budgeted for the road network, housing, health and village economy priorities for one of the most progressive and productive communities in this country. A better Marigot means a better Dominica… a politically victimized Marigot means a Dominica operating below its capability for outstanding sustainable growth and development

90. The budget approved by this parliament for the fiscal year 2014/2015 included an amount of 900 thousand dollars to be spent on the Marigot Hospital – the health care facility closest to the National airport. Not one cent was spent. The same government that built a six apartment building at Silver Lake for $1.2 million, and plans to build a health centre in Vielle Case for $1.5 million, now claims it will build a New Hospital at Marigot at the cost of one million dollars of which 10% will be spent in 2015/2016. The Marigot Hospital needs at least $3

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million dollars just to rehabilitate the existing facility. So one million dollars cannot build a new state-of-the-art hospital for Marigot which will cost in excess of $15 million. SO what hospital is planned for Marigot and when will it be delivered? While only $100 thousand will be spent on the Marigot hospital this year, $1 million will be spent on the Vielle Case health centre. The politics of injustice and discrimination in the allocation of public resources continues undisturbed. We are keeping it real!

91. Some years ago, citizens with long-standing interests in land in the housing area at Melville Hall were promised that land reserved for them by the Housing Division would be officially allocated. This has not happened. As a result, persons willing to build are unable to do so and in some instances allocations agreed to are being compromised by intervening arrangements. Again, we are asking the government and the minister responsible to give urgent attention to what has become a particularly vexing matter. A number of persons in the constituency, like Myrose Abraham at Concord, remain anxious about a housing revolution intervention to address their deplorable housing conditions

92. The playing field at Concord needs urgent attention. And the excellent sporting facility at Lio Park regrettably abandoned by the government is in desperate need of rehabilitation

93. There is also the long-standing promise to rehabilitate the vital Cayam Bouc/Sunderley Road at the back of the Melville Hall Airport. It is not specifically mentioned in the capital project allocations for this fiscal year, but we expect that the financing requirements are fully catered for under the Banana Accompanying Measures (BAM) feeder road program.

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We need budgeted resources to rehabilitate a number of other feeder roads:

Baron/Tantan roadCaptain Bruce/Windy lodge roadMyshall road, Craig roadCoffee road, Tantan/pagua link road

We also need budgeted resources to bring a number of village roads up to acceptable standards:Fine Grass, Bull Hole, six acres Melville Hall link roadValley road, North End road, Overgutter RoadWe need to fix the Dam bridge and we need Speed bumps for the highway passing through Concord

CONCLUSION

94. The proposals in this budget response are targeted at energizing the economy through a strong revival of agriculture island wide and getting the country back to work in the other critical growth engines of tourism, manufacturing, construction, diaspora partnership, FDI and renewable energy. In this regard we have not been hesitant to recommend tax relief because we are confident that the economic activity generated as a result will return to the treasury the tax revenue initially lost.

95. Our case for early involvement of the Parliamentary opposition in the preparation of the annual budget is made by the number of worthwhile recommendation once again this year from our team of original thinkers and strategic planners passionate about

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implementation. The ideas and proposals in this response merited consideration at the stage of fiscal strategy formulation prior to the preparation of the estimates of revenue and expenditure so that they could be costed, revised if necessary and integrated into the budget as appropriate. At this eleventh hour, we are condemned to making recommendations in competition with government’s proposals that may already be cast in stone and will not be changed at any cost in the interest of partisan political correctness.

96. In any event, we kept it real and focused on the presentation of real alternatives for a better Dominica

97. We commend the proposals in this budget response to the people of Dominica as the starting point in a program of economic recovery that is long overdue. I close with the final stanza of our National Anthem:

Come ye forward, sons and daughtersOf this gem beyond compareStrive for honour sons and daughtersdo the right be firm be fairtoil with hearts and hands and voiceswe must prosper, sound the callin which everyone rejoicesall for each ad each for all

98. Thank you Madame Speaker… May our ancestors be pleased… All praise to our redeeming Lord… We love you Dominica… God bless you.

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