Government Information Service

by Emmanuel H. Joseph
Government Information Service

Under the theme, ‘Securing a Brighter Future in the Face of Global Crisis’, Hon. Prime Minister and Minister for Finance, Social Security and National Security, Roosevelt Skerrit presented a four hundred and ninety million dollar(XCD $490 000 000.00) budget to parliament on Friday, 31st July, 2009, for fiscal year 2009/10.

Of the total, recurrent expenditure is projected to be $321.6 million, representing an increase over the previous year of 6 percent.

Capital expenditure is projected to be $168.3 million, an increase over the previous year of 7 percent. Debt amortization, including debt service, accounts for $43.8 million or 9 percent of projected total expenditure. 

Government’s fiscal operations in the New Year are projected to produce a current account surplus of $26.4 million, which will be applied to the Public Sector Investment Programme. The projected overall surplus is $13.6 million.

The primary surplus, Government’s main fiscal indicator, is projected to be 2 percent of GDP, down from the 3 percent target that has been serving the country very well. This is due to the impact of the global recession that has negatively affected government revenues as well as Government’s determination to fulfil undertakings previously given to the public.

In his address, Hon. Prime Minister, Roosevelt Skerrit, explained his choosing of the theme ‘Securing a Brighter Future in the Face of Global Crisis’. 

“It is a theme that challenges us to hold on to, and not abandon or gamble with, the prudent fiscal policies and sound economic management that have worked so successfully. We should, and we will, let prudence be our guide and not take unnecessary chances with the unknown and the untested.”

The Prime Minister also spoke of his government’s efforts in building a stable platform for economic development through new foreign policies helping to stay the country in light of the world economic crisis. He pointed to the sacrifices Dominicans have made over the years to help bring economic stability notwithstanding the global economic downturn.

“Our new foreign policy initiatives, coupled with the increasing confidence of our traditional donors in the economic management of the country, have increased the pool of development partners from whom we can draw support in building a more secure future for ourselves. These new foreign policy initiatives have spared Dominicans the burden of increased taxation in order to meet the cost of the continuing development of our country as well as Government’s programmes of social protection and poverty reduction. 

Every Dominican has made numerous sacrifices and we have all worked very hard in preparing ourselves for that more prosperous future. As fate would have it, the world economy is now in crisis. This crisis has affected developed and developing countries alike. The International Monetary Fund has described this crisis as the worst that the global economy has faced in sixty years.”

Notwithstanding the effects from the bleak regional outlook of a negative growth index predicted for the 2009/10 year, Prime Minister Skerrit sees Dominica's economy growing.

“I am indeed very pleased to be in a position to report to this House and to the people of this country that the economy of Dominica has fared more than satisfactorily, given the difficult global climate. Our ship has stayed steady amidst the raging winds that have buffeted the economies of other countries.  No praise, no commendation, is too much for the Government and people of this country whose focus, determination to do the right thing, and willingness to make short-term sacrifices for long-term progress, are responsible for the relatively sound position in which we find ourselves.”

Prime Minister Skerrit still sees the following affecting Dominica:

1. a reduction in the remittances that non-resident Dominicans and other West Indians would normally send to their families back home
2. a reduction in tourist expenditure as fewer persons in the source countries are able to afford vacations and those who do, end up spending less than they normally would
3. a reduction in the foreign direct investment needed to increase the capacity of the country’s productive sectors and generate employment
4. A reduction in government revenues as a result of a likely reduction in imports through reduced spending power and some reduction in exports as buyers in affected countries have reduced access to credit.

According to the Finance Minister, the country’s comprehensive development agenda going forward will include the following:

1. Tourism  -- site development; destination marketing; hotel development; improving air access  
2. Agriculture – a national strategy, with clear goals and objectives, and appropriate incentives
3. Energy – continue to press on hard with geothermal, while not ignoring other renewables
4. Water – ensure development of reliable water systems for all communities and encourage investment in bulk and bottled water exports
5. Public Investment – continue to improve the physical infrastructure
6. Private Investment – clear, focussed investment attraction strategy
7. Business climate issues – accelerate implementation and design of an efficient policy on incentives
8. Small business development -- ensuring a strengthened strategy and supporting incentives.

The Prime Minister said that the development strategy must be complemented and supported by the following:

1. Continuing fiscal discipline
2. Rationalising and energising our country’s growth institutions
3. Implementing a national productivity enhancement initiative to address productivity and competitiveness issues
4. Working to ensure a high-quality public service
5. Investigating the full scope for environmentally friendly policies that are economically sustainable
6. Continuing to pursue a foreign policy that is proactive, and exploited efficiently and productively.

In his budget the Prime Minister announced a few social incentives which include the following:

1. Payment of subvention to day care centers, a maximum of $2 500 a term.
2. Payment of subvention to Early Childhood Education Centers (pre-schools), a maximum of $2 500 per school per term.
3. Extension of the policy of free health care for older persons; lowering the age from sixty-five (65) to sixty (60).
4. Continued support provided to citizens in previous budgets inclusive of the school transfer grant of $500 per student, the removal of import duty on some fifty (50) items and the removal of the excise tax on LPG cooking gas.
5. Continued implementation of Income Tax reform. From 1st January 2010, the last phase of the three-year programme to reduce tax rates will be implemented and the new applicable rates will be 15 percent (15%), 25 percent (25%) and 35percent (35%) respectively.

The full budget address can be found on the Government of Dominica’s website at: http://www.dominica.gov.dm/cms/index.php?q=node/3

Prior to the Hon. Prime Minister and Minister for Finance Social Security and National Security, Roosevelt Skerrit address, the President of Dominica, His Excellency Dr. Nicholas J. Liverpool inspected a guard of honour comprising seventy-three (73) uniformed officers from the Dominica Police Force, Fire and Ambulance Services and the Dominica Prison Services. Following that, President Liverpool then delivered his address to the House of Assembly on the occasion of the opening of the first meeting of the fifth session of the seventh parliament.

In his address, President Liverpool responded to, according to him, to numerous questions continuously posed by members of the general public concerning certain aspects of the workings of their government, the powers of our Parliament, and more specifically, the roles of the President, the Prime Minister and the Cabinet of Ministers. He alluded to the fact that he has already addressed some of these concerns in previous addresses to parliament, however, he went on to explain the supposed ‘power’ vested in him, as President and Head of State.

“These matters have been the subject of previous addresses and I only wish to remind Honourable Members that although the Constitution states that the executive authority of Dominica is vested in the President, the section goes on to state that, subject to the provisions of the Constitution, that executive authority may be exercised by the President either directly or through officers subordinate to him. The words "subject to the provisions of the constitution" are to be taken very seriously, since they lead us to examine the various instances in which the President can act on his own initiative, or on the advice of, or after consultation with other persons or authorities.

Some examples of the instances in which the President can act in his own deliberate judgment, are in the appointment of a Prime Minister, the Leader of the Opposition, the Chief Elections Officer, the Chairman of the Electoral Commission, and the Chairman of the Public Service Board of Appeal.

Independence has ushered us into a new era, and has introduced changes in the manner in which this country is to be governed. The President does not possess the powers which were held by Administrators and Governors of yesteryear, under the colonial or pre-independence period. The President must abide by the terms of our Independence Constitution.

It is not infrequently asked what the President is doing about some concern or other. The person who is making the enquiry usually assumes that the President has the power to make a direct intervention. Fortunately, or unfortunately, the President does not have the powers contended for although he does have the power to encourage, to advise and to warn. When I addressed you in June 2004, I attempted to explain this to this Honourable House.”

President Liverpool went on to clarify why he does not have the state wide power that many believe he has with regards to commissions of inquiry.

“Therefore, the power to appoint a Commission of Inquiry is one of those powers that have been removed from the discretion of the President. That power, though seemingly vested in the President, is not to be exercised at his discretion; but rather it is now to be exercised by him acting in accordance with the advice of the Cabinet, or of a Minister acting under the general authority of the Cabinet.

I hope that it will now be appreciated, that whereas in the past Administrators have wielded those wide powers in Dominica, as they still do in non-independent countries, first Statehood and later independence brought us constitutional change that firmly placed those powers in the hands of the Cabinet.

However, Parliament does have the power, (in some instances after a decision of the electorate in a referendum); to amend the constitution to give effect to any desired changes. Indeed, Parliament may go even further, by abolishing the post of President and combining the offices of President and Prime Minister in one person. I alluded to this in July 2008 when I went on to explain what is taking place in this direction in some parts of the Commonwealth.”

While lamenting the fact that the trend seems to be removing more and more powers from the President, President Liverpool went on to provide a historical account of how our laws and parliament, their duties and powers came into being.

“Of course Parliament may not wish to abolish the Office of President altogether, but could alternatively consider increasing his powers. However, that does not seem to be the trend that has recently been followed in Dominica as the following example illustrates. The Parliaments of Jamaica, St. Lucia, Antigua and Barbuda, Trinidad and Tobago and Dominica have all passed what is popularly referred to as integrity legislation. In Antigua and Barbuda the Governor-General appoints the members in his own discretion. In St. Lucia the Governor-General appoints the members on the advice of the Prime Minister, who is required to consult with the Leader of the Opposition, before tendering any advice to the Governor-General. The Parliaments of Jamaica and Trinidad and Tobago entrusted to their Heads of State the power to appoint the members of the Commission after consulting with the Prime Minister and the Leader of the Opposition.

Our Parliament however placed the power to choose the members of the Commission in the safe hands of the Prime Minister, the Leader of the Opposition and the bodies which represent the legal and accountancy professions, only leaving the President with the mundane task of issuing the formal letters of appointment.”

The entire account can be found on the President’s website: http://presidentoffice.gov.dm/presaddress/dr_liverpool/sovereignty_parliament/sovereignty_parliament.html.