As expected, the package of cost-cutting policies approved by the Council of Ministers (see related story) does not contain any shocking measures of great consequence. Although Finance Minister Michael Ferrier had warned beforehand that the civil servants would “feel it,” they will maintain their current pay and most secondary benefits.
Freezing bonuses insofar as these were still in effect, a stop to unauthorised hiring of consultants and a 30 per cent cut in travel expenses do not appear to be of great concern to public sector employees and their labour unions. Let’s face it; especially under the current socioeconomic circumstances, reducing their basic earnings or layoffs wouldn’t have been considered acceptable either.
It must be said that the ministers are setting a good example by giving up 10 per cent of their gross salaries until the end of 2019 and asking Members of Parliament (MPs) to do the same. The bridging allowance for departing cabinet members must be adjusted, but there is no word on exactly how, while altogether eliminating a similar provision for former legislators is proposed.
Of course, with a new government soon to be sworn in, several incoming public administrators who were not part of these decisions will experience their effects first-hand, but it certainly seems like an appropriate thing to do at this point. Some of the other steps directly touch elected representatives and high-ranking officials as well.
All this is needed to limit the 2018 budget deficit for which liquidity support loans will again have to be requested from the Netherlands. The announcement earlier this week that a planned increase in the full pension age of government personnel can no longer be introduced this year is a setback in that regard.
However, there are indications that the expected drop in revenues might not be as bad as originally feared, which could help fill the current budgetary gap of some 197 million Antillean guilders. The economic impact of projects to be executed with means from the Dutch Trust Fund managed by the World Bank might make a positive difference as well, but for now country St. Maarten has little choice but to do some serious belt-tightening.
