An amendment to the Social Security Ordinance was introduced in the Anguilla House of Assembly by Minister of Finance Victor Banks on Tuesday this week and was passed after a considerable amount of debate with various questions raised by Opposition Members Edison Baird and Hubert Hughes.

Hon. Victor Banks

In giving the objects and reasons for the Social Security Amendment Bill, Mr. Banks said the Social Security Board had given considerable support to the Anguillian community, national development, social justice and the security of the island’s people in times when they were unable to help themselves.
“Mr. Speaker, Social Security has been a very significant success story and I have always said it has been one of the most important contributions to Anguilla’s economic development in recent times,” he told the House of Assembly. “The Social Security Fund to date is in excess of 220 million East Caribbean dollars and it grows on an annual basis. When the economy is thriving, Mr. Speaker, it means that the funds in Social Security will reflect those significant increases; and over the last five years the Social Security Fund has increased substantially.”
Mr. Banks noted that as part of its original policy the Social Security Investment Committee had made a number of investments in the Anguilla banking system, regional financial institutions, government securities and with financial intermediaries and investment managers internationally. He said those investments were extremely successful but in this period there were a number of other opportunities which could allow the Social Security Board to realise considerable benefits for its contributors.
“What is required to enable that, Mr. Speaker, is the establishment of a subsidiary investment vehicle which will allow the Investment Committee to guide the Social Security Board in investments in other areas which are not included in that original policy,” Mr. Banks explained.
“It will involve the Social Security Board in projects in which it can invest prudently and profitably, and when such money is available in keeping with the Board’s investment policy….There are a number of projects which, over the years, the Government of Anguilla has identified as areas where the Social Security Board may enhance our national development and because of the non-existence of this vehicle, we have not been unable to interest the Board in all these kinds of projects.”
Mr. Banks stated that new policy guidelines had clearly outlined what Social Security funds could be invested in local, regional and international equities and the banking system inside and outside Anguilla. In addition, there will be an indication of what level of investment could be made from the Social Security Fund in projects of a real estate or other nature.
The Minister added: “The amendment, Mr. Speaker, is very straightforward. It is not different from any amendment for subsidiary investment vehicles which exist in other regional social security schemes. As a matter of fact the CARICOM Social Security Association …has been involved in the creation of these investment vehicles to enable the Board to contribute and participate more fully in the national investment environment.
“The Government of Anguilla over the years has been very responsible in the manner in which it has dealt with the Social Security Fund, whereas a number of countries in the world have complained over the manner in which Governments have interfered in the business of social security. This Government and Governments of the past have been very responsible and very protective of the Social Security Fund. I believe that in the future, with an investment vehicle of this nature, we must also continue to have that attitude and approach to social security development.”

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