St. Maarten received liquidity support for the third and second quarters (see Monday paper), allowing government to cover its financial commitments until the end of the year also to private sector entities. No more zero-interest COVID-19 loans to the three Dutch Caribbean countries are foreseen in 2023, based on their economies bouncing back from the pandemic.
The latter partly depends on remaining competitive in the marketplace especially regarding the islands’ common main activity tourism. One must consequently be very careful about increasing the burden of local businesses, particularly considering the current inflation crisis.
In case you missed it, a paternity law went into effect per October 1 in St. Maarten. Male personnel related through legal marriage to a child being born or who formally recognised it have the right to seven days off.
The reason is obviously that fathers play an important role in the development of the infant too and should be involved early. Although few will argue against such, there is no denying either that this implies a loss of production and therefore often extra expenses, so one would hope Social and Health Insurances SZV covers at least the 80% lost wages for all workers involved within the new wage limit.
What’s more, the mother’s pregnancy leave has been extended as well from 12 to 16 weeks, close to four months. Here again, the motive is clear and sound, but someone needs to foot the inevitable resulting bill, which usually ends up being the consumer, but also visitors.
All these socially desirable steps, including the minimum wage hike, come with a price-tag while the dominant hospitality industry’s recovery is still vulnerable. No more actions that further increase the cost of living and doing business should be taken anytime soon.
