Perhaps Finance Minister Mike Ferrier had the saying “better the world, start with yourself” in mind when he proposed that Cabinet members take a temporary pay cut and give up on the phased “bridge allowance” when they step down, while suggesting Parliament do the same. After his recent announcement that a package of 37 austerity measures related to the post-Irma economic crisis would affect the civil service, persons had already commented that they should start at the top.
Of course, the relatively high incomes of local ministers and legislators had been a point of discussion long before the record-strength hurricane hit St. Maarten. As pointed out on serval occasions, bringing these down alone is not going to make a huge budgetary difference due to the limited number (seven ministers, a plenipotentiary minister and 15 parliamentarians).
However, it does set an important example when especially politicians and public administrators asking residents to tighten their belts begin by doing so themselves. In that respect Ferrier was right on the money.
It has also been clarified that – for now – public sector employees and their unions don’t have to worry about salary reductions. The personnel cost savings are to regard mostly freezing of bonuses, gratifications and other secondary benefits.
That does not mean everyone will be happy, because people obviously get used to what they have, primary, secondary or otherwise. The reality is nevertheless that Government currently has far less revenues to spend than earlier and – unfortunately – this probably will remain the case for some time.
The drop in collected taxes and social premiums was to be expected considering the severe blow taken by particularly the dominant stayover tourism industry. Efforts should still be made to improve compliance among companies and individuals doing business so that as many as possible contribute their fair share, ensuring a level playing field in the process.
