CABINET NOTES of Wednesday 22 November 2023

HURST REPORTS ON CABINET of Wednesday 22 November 2023

Cabinet began its sitting with the usual prayer by a priest who pointed the Cabinet to the book of Kings to justify his assertion that Ministers of Religion ought not to become candidates for election or immersed in partisan politics. The Constitution of Antigua and Barbuda prohibits Ministers of religion from becoming elected parliamentarians. The Cabinet held a discussion about the economic prospects for the immediate and long term future and concluded that the number of new projects coming on stream in Antigua, in Barbuda, including the PLH Project, the redevelopment of the K Club site, the doubling in size of the Nobu Restaurant, are all signs that the economy will perform very well for the foreseeable future.

1. The Cabinet invited fifteen officials to its meeting to address the issue of revenue, deficit spending and debt management, in preparation for the 2024 Budget. Eight officials were from the Ministry of Finance, three from the Inland Revenue Department, one from the Medical Benefits Scheme, three from the Antigua and Barbuda Department of Maritime Services (ADOMS), and the Minister of State in the Ministry of Finance and Corporate Governance. The primary object of the discussion was to consider options for the 2024 Budget, taking into account that tax revenue to GDP ratio stands at fifteen percent and the target of the budget officials is to raise revenue to twenty percent of GDP. The discussion revolved around items that can be zero-rated, and those imported items where the waiver of taxes is not warranted.

ii. The Ministry of Finance Officials presented the debt obligations owed by the Government to former employees in the form of gratuities, to contractors, landlords, statutory corporations, China ExIm Bank, the Regional Government Security Market (RGSM), the Caribbean Development Bank (CDB), and the Eastern Caribbean Central Bank (ECCB). The Inland Revenue Department (IRD) discussed the issue of property taxes owed to the Government of Antigua and Barbuda by property owners. The subsidy paid by the Government for petroleum products was also discussed, and a plan to discontinue that subsidy was also examined. Tax on fuel, it was agreed falls below the regional average and it is one contributing factor that can be easily remedied, it was agreed.

The Governments’ purchase of gasoline for its fleet of vehicles was also examined and ways to reduce that expense were also discussed. The object of these discussions is to assist the Finance Minister to prepare his Budget Statement and budgetary figures that will be shared with the public on Friday December 15th at 9:30 am in the Parliament.

iii. The experts from the ADOMS were questioned by the Finance Minister about the European Union (EU) sanctions imposed because of a finding of “non-compliance”. The experts explained that Antigua and Barbuda’s Ship Registry consists largely of vessels owned by German firms; those firms can have sanctions imposed if they are found to do business within states that have been sanctioned. An assessment of Antigua and Barbuda’s earnings from offshore businesses was cursorily made and noted by the Finance Minister.

2.i. The Minister of Health gave a report on the flooding of the theater at the Sir Lester Bird/Mount St. John’s Medical Center (SLB/MSJMC). The floor is to be repaired this week since the contracts have been signed with the firm doing the repair. The overhead piping is already fixed and elective surgeries are likely to recommence in a short time.

ii. The Minister of Health also indicated that many cancers are appearing in youthful citizens. A young boy about seven years old developed a growth in his cheek that threatens his life. He will be sent abroad for medical treatment in an attempt to save his life.   

3. The Cabinet decided that the Christmas Lighting Competition will be held again this year 2023. The Department of the Creative Industries will be the organizing force and resources commensurate with prize monies will be allocated for its execution.

4. A date for the commission of the New Cemetery may soon be announced. Complete fencing of the acreage must first take place, roads constructed, burial plots are to be demarcated, and buildings are to be erected.

5. The Cabinet conveyed its congratulations to Mr. Alzari Joseph who has been promoted to Vice Captain of the West Indies Cricket Team. He is an outstanding fast bowler and high scoring batsman. Reports are that his father has played a significant role in his success. They both were invited to Cabinet when he was first selected.