The cat is out of the bag. Continued liquidity support from the Netherlands (see Saturday paper) will require lowering the salaries of Parliament. This has been suggested before but can only be decided on by the members themselves.
The money is to cover budget deficits resulting from the devastating impact of Hurricane Irma primarily on the island’s tourism infrastructure. The two amounts of 22.75 million and 15.3 million euros received for respectively 2017 and 2018 so far came from the Dutch-sponsored Recovery Fund, but that will no longer be the case.
Going forward, a combined total of 100 million euros will become available via bond loan, in a maximum of four tranches per year. Other conditions mentioned by State Secretary of Home Affairs and Kingdom Relations Raymond Knops include improving detention capacity at the Pointe Blanche prison, input of the Dutch national police and increasing the pensionable age from 62 to 65.
The latter proposal is already opposed by local public sector unions at least in its current form, so it will be interesting to see what happens. People should keep in mind that pension funds all over the world are under pressure and having to take austerity measures due to the ageing population caused mainly by medical advances.
But perhaps the most bitter pill to swallow by the elected representatives is the specific demand to take a pay cut. The question may rightfully be asked whether tying such to assisting a kingdom partner in need is the correct way to go.
On the other hand, the ministers in Philipsburg took a 10 per cent pay cut and have been calling on the legislators to follow suit. Considering how much more they make than their counterparts in Aruba, Curaçao and the Netherlands, that does not appear too much to ask under the present socioeconomic circumstances.
One might be tempted to try to resist this kind of indirect meddling in St. Maarten’s autonomous affairs by The Hague, but now is most definitely not the best time do to so. It appears legislators voted into office to defend the general interest will just have to keep looking at the bigger picture and stick to the principle of country before self.
