Due to the unprecedented COVID-19 crisis Aruba is reducing salaries of its Ministers and all their advisors, Members of Parliament (MPs) and directors of government-owned companies by 20 per cent from May to December (see related story). Civil servants and employees of government-funded organisations must also give up 12.5 per cent.
Even government pensioners will contribute 4.5 per cent by cutting in half the end-of-year bonus only those who retired before 2014 are getting. A limit on government-owned company directors of no more than 130 per cent of what ministers earn will be introduced as structural norm. Supervisory board members too are giving up 20 per cent of – and in some cases voluntarily their entire – allowance as such.
Labour unions do not like it, but appear to realise how serious the situation is. They at least want better price control and talks with the harbour and importers to lower the cost of bringing in food.
The Evelyn Wever-Croes Cabinet is taking these steps to try to adapt to its drastically dropped income. They were also mentioned as conditions for continued much-needed liquidity support from the Netherlands.
Up to now the island has received a soft loan of only 42.8 million florins while it has asked for ten times that amount to cover the next three months, including payroll subsidies for businesses and assistance to persons left unemployed. Remaining options seem to be few, as the island depends almost exclusively on – no longer coming – visitors for its livelihood, as does St. Maarten.
There are other similarities, with all Dutch Caribbean countries having been forced to face major recent challenges: Hurricane Irma’s devastating passage over St. Maarten and the refinery closures in both Curaçao and Aruba.
They are basically in the same boat and have realistically little choice but to meet the requirements set in The Hague, because the recovery of especially their dominant hospitality industries will take time for obvious reasons. Without additional funding going forward these three previously-thriving holiday destinations risk suddenly becoming deeply impoverished and possibly crime-ridden territories.
That would be bad for their people and a shame for the entire kingdom. What is spent wisely now actually can save a lot more money and prevent lots of huge socioeconomic problems later.
