Parliament did the right thing this week by approving three law proposals to lower cost in the public sector. The 25 per cent cut in benefits for political authorities will save 1.3 million Netherlands Antillean guilders and the one of 12.5 per cent for all civil servants and staff of government-related entities more than NAf 13.6 million, while wages of top-earners at the latter organisations were also capped to the “Jacobs norm,” namely 130 per cent of the prime minister’s salary.
This was required to meet conditions for continued Dutch liquidity loans to cope with the current severe socioeconomic crisis. It would be necessary regardless, simply because the dominant hospitality industry will take some time to reach pre-coronavirus levels.
Until then, payroll subsidies allowing companies to stay in operation and keep personnel, as well as income support for independent operators and people left jobless, are simply indispensable. And it is not just about them, because tax revenues would nosedive if many more businesses were to close.
Nobody wants to see their income reduced, although for civil servants it concerns mainly secondary benefits like vacation allowances rather than basic salaries. By contrast, most private sector employees were forced to give up at least 20 per cent of their paycheque or working hours.
The stark reality remains that, under these unprecedented circumstances, St. Maarten has no other viable choice, as is the case with Aruba and Curaçao. The three Dutch Caribbean countries must learn to “do with less” for now and swallow restructuring measures that come with the financial assistance, hoping for better days.
