January 28th, 2008 

Hon. Anthony Boatswain

Minister of Economic Development

Ministry of Economic Development

Financial Complex

St. George’s 
 

Hon. Minister, 

1. Re St. Patrick’s Port Project 

Via recent newscasts, we the people were informed of your announcement of a Memorandum of Understanding  signed with Exim Bank of the People’s Republic of China to support the St. Patrick’s Port Project.  You also advised of the necessity to go to Parliament to set up the necessary legislative framework, i.e. the setting up of a STATUTORY BODY   to spearhead the port??!!

Can you advise, Sir, why it is necessary to set up a SEPARATE STATUTORY BODY to spearhead the St. Patrick’s port?  Isn’t the GRENADA PORTS AUTHORITY the statutory, regulatory body in respect of ALL ports in Grenada?  And therefore, IF it is necessary to set up a separate, legal body what will be the ROLE of the Grenada Port Authority vis-à-vis this proposed body? 
 
We are aware that Hon. Kenny Lalsingh was spearheading the St. Patrick’s port project before he became President of the Senate.  He had informed we the people that: 
 
(i)  this project was going to be spearheaded by a group of St. Patrick’s businessmen. 
(ii) the project was supported by the Prime Minister, yourself and other M.Ps. 
(iii) you were putting the Association in touch with financiers. 

Hon. Minister, permit me the following queries:  

• Is this new statutory body that you are proposing a mechanism to facilitate the group of St. Patrick’s businessmen whom Hon. Kenny Lalsingh advised were originally spearheading this project?
• What is the rationale for a St. Patrick’s port at this time?  Who/what is this port intended to facilitate?
• Are there any intentions to present this project for any public discussion or consultation?

2. Grenada, a Millionaire’s Paradise:

It was you, Hon. Minister, who last year in your 2007 Budget presentation made reference to Grenada being a millionaires’ paradise.  At his most recent Press conference, the Rt. Hon. Prime Minister informed the nation that investors were “ tripping over one another” to come to Grenada.  We are constantly reminded that Grenada has “never had it so good” with SO MANY millionaire  investors.  As a former Minister of Finance and the present Minister of Economic Development, perhaps you could explain, Sir, how it is that Grenada has never had it better (according to your administration), yet the cry from all levels, THROUGHOUT the country is “WE KETCHING HELL!”   

Only last week, I was reminded of a fundamental lesson in Economics by my former Economics teacher: - Y = C + I.  The fundamental lesson is National Income equals consumption plus investment.  (We ignore government spending and taxes in this equation for the time being.) He reminded me that it was CONSUMPTION which fuelled the economy, NOT investment.  At the moment, we the people “KETCHING HELL TO MAKE ENDS MEET”. 

While your administration boasts of a number of multi- million dollar investments, these investments: 

• May in fact be considered disinvestments since they involve the “GIVE- AWAY” of valuable national assets at a pittance e.g. Lagoon, Levera and Mt. Hartman
• Are NOT CREATING REVENUE FLOWS FOR THE TREASURY given the excessively generous FISCAL INCENTIVES that have been afforded these millionaire(?) investors.  Even the World Bank and the International Monetary Fund have recommended that  such fiscal incentive packages should be discontinued.  In spite of the millions in investments(?), the Treasury is EMPTY.  The Treasury is therefore not in a position to fuel important government spending and has become reliant on debt financing which in turn incurs onerous debt servicing.   It is a vicious circle.

One can only conclude, Sir, that the government’s economic policy, if there is one, is fundamentally flawed.  

Perhaps, Sir, as the Minster of Economic Development and one who was considered a very capable economist before your entry into the political arena, you can explain to we the people this apparent paradox.  We trust Sir that the appropriate advice is being given to the Rt. Hon . Prime Minister, who has since taken over the Finance portfolio, since his fortait is numbers (maths and stats) , not economics. 

We await your explanations and clarifications on both matters raised. 
 

Sincerely yours, 

Sandra C.A. Ferguson

c/o P.O. Box 750

St. George’s