Hon Chief Minister Osbourne Fleming and Hon Minister of Finance and Tourism, Victor Banks, reported on the serious financial situation in the country, to members of the press, at the Government’s weekly press conference on Wednesday September 1.

Chief Minister Osbourne Fleming and Hon. Victor Banks

The press was informed that the House of Assembly will meet on Friday September 4 and Mr Fleming advisedeveryone to listen to the debate that will be about the financial situation. He commended the Ministry of Finance staff for the long hours that they have been working to address the situation. Civil servants from the Ministry of Finance are expected to make a presentation before the debate to give a true picture of the Government’s position, an analysis of the fiscal situation and the options available to survive this period and for the long term in order to recover from the situation.

Mr Banks reported that there will be three motions. The first is to borrow EC$49 million to re-finance loans and for the overdraft facility. The second is to borrow US$400,000 that is the yearly premium for the Caribbean Risk Insurance Fund. This is the insurance for recovery after a hurricane, and Banks says that the British approved this before so should do so again. The third motion is for borrowing EC$325,000 for the Community College Consultancy. The Caribbean Development Bank is interested in funding the loan for this.

The Minister of Finance said that other important issues to be discussed at the House of Assembly include projections on managing finances to the end of the year and options for future years. He observed that the Government has to look seriously at revenue including money owed to the Government. Banks reported that the British Government thinks Anguilla should increase taxes but this is not possible as everyone is stressed and he (Banks) cannot add more burdens to businesses. He noted that we have indirect taxation through customs duties, accommodation tax and others but Anguilla is reliant on external factors. “All we want from the British Government is an agreement to borrow,” the Minister said.

The Chief Minister said that if they do not get the permission to borrow they will not be able to pay civil servants. “The only way to survive is to borrow,” he noted, adding that if the British will not agree they will find someone else to borrow from. Speaking about approval from the British Government, Banks said that he does not understand it as the British Government borrows ‘to the hilt.’ He remarked that the British need to consider what will happen when the civil servants cannot be paid.

Both the Chief Minister and Banks believe that there will be a “show down” with Britain if the borrowing is approved in the House and not allowed by the British. They are in close touch with the other Overseas Territories including Cayman Islands, British Virgin Islands, Montserrat and Turks and Caicos as all are experiencing the same difficulties as Anguilla. Banks believes that reason will prevail as “we have to do what we have to do” and “the only way to survive is to find money from somewhere to run the country.”

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