PHILIPSBURG--“Five years after Hurricane Irma and 2½ years since the start of the COVID-19 pandemic our economy is starting to show positive signs,” Governor of St. Maarten Eugene Holiday noted at the start of the new political year, which commences each year on the second Tuesday of September. He then firmly stated: “A lot, however, remains to be done.”
“As we look to the future and the challenges ahead, it is imperative that Government and Parliament engage in meaningful efficient dialogue and effective decision-making in the interest of our people and country,” Holiday said in his address to a full Parliament.
“You are in that regard reminded that if you do not do so, who do you expect to do it? You have thus been entrusted with the profound responsibility to serve the public interest on behalf of all St. Maarteners. It is your task and responsibility, and I hope you step up to the plate and do so.”
The 15 members of parliament, parliament staff, the prime minister, the five other members of the Council or Ministers, and invitees gathered in the House of Parliament. Governor Holiday arrived with ceremonial display on Back Street, behind the courthouse, at 10:15am and walked past military personnel in white uniform towards the entrance of the Parliament Building. The governor was followed by his wife and senior officials of the armed forces.
The new parliamentary year 2022-2023 is the 13th parliamentary year since the birth of country St. Maarten on October 10, 2010. “I have had the distinct privilege to have participated in all 13 in my capacity as Governor of St. Maarten. And today will be my last in that capacity for the opening of the new parliamentary year,” Holiday said.
The opening of this new parliamentary year comes on the heels of the fifth anniversary of Hurricane Irma and 2½ years since the start of the COVID-19 pandemic, two disasters that have severely eroded the economic and financial foundation of the country and, as a result, affected the lives and livelihood of its people.
The financial position of the government has suffered, as reflected in the increase in the debt-to-GDP (gross domestic product) ratio from 43.3% in 2019 to an estimated 63.1% this year, Governor Holiday said. “The impact of these disasters reminds us, all of us, members of the coalition, members of the opposition and government of the need, the need to work together to strengthen our country’s social, economic and financial foundation.”
It is expected that the economy will expand by 8% in 2022 and that it will grow further in 2023 by 7.5%. These positive developments are however, being dampened by increasing world inflation fuelled by a surge in global oil and commodity prices caused by supply chain disruptions and by the Russian invasion of Ukraine.
Given its dependence on the import of oil and other goods, inflation in St. Maarten is expected to increase to 6% in 2022. This increase in the cost of living is posing serious challenges, particularly for the elderly, the unemployed and low-income earners.
The government, taking these developments into consideration, has been working with the Netherlands through the World Bank trust fund and country package reforms to improve the country’s economic and financial resilience. Central to government’s policy agenda for the coming year is to link and bring all ongoing projects, as mentioned in the country package, under the umbrella of the National Development Vision. Government is therefore currently planning an inclusive launch of the National Development Vision.
This launch will ensure that all partners, internal and external, are included in the outcome. It ensures that policy measures are consistent within the context of St. Maarten.
The first steps towards developing St. Maarten’s National Development Plan, under the current National Development Vision, have been taken, Governor Holiday said. “The goal is to present the National Development Plan in the first part of 2023. This should improve St. Maarten’s chances of anchoring a sustainable future.”
To finance its policy agenda as envisioned in its National Development Vision, it is imperative that government takes steps to raise the necessary funds and to put the country on a financially more solid foundation, the governor said. “As a result of Hurricane Irma and the COVID-19 pandemic, government has been and continues to be cash-strapped.”
In 2022 the approved budget deficit amounted to NAf.124 million. Meanwhile, the multi-annual forecasts project budget deficits through 2027. As a result, government has relied heavily on Dutch financing through the Trust Fund at the World Bank to fund several economic recovery projects and on liquidity loans to cover the budget shortfalls, the governor noted.
“Government is therefore working on making our country more financially strong and economically resilient,” Holiday explained. “This is being pursued by improving, standardising, streamlining and automating the financial processes to provide the people of St. Maarten with accurate and relevant information. Given our country’s financial situation we must realise the urgency to better control our finances and the imperative of modernising our tax legislation aimed at generating more revenues.”
Essential in this regard is that Government has developed its Road Map to Financial Management, Holiday said. “Important initiatives are the implementation of tax reforms to generate more revenues, measures taken to eliminate the backlog in the publication of the annual accounts, and steps to improve the budget process aimed at timely delivery of the budget.”
Important pre-requisites are capacity building and strengthening of the public administration, as well as having the data necessary for monitoring and evaluation.
“The results from the population census which is scheduled to be completed this year are expected to provide important data input for the national development plan,” the governor said. “Capacity building is envisioned from a multi-pronged approach, namely strengthening of local expertise and technical assistance to support the development of the action points.”
Government is at the same time investing in its information and communication technology (ICT) infrastructure.
“From an ICT perspective, government will continue focusing on strengthening the organisation’s infrastructure, improving the cybersecurity environment, and digitising business processes,” Holiday said. “The emphasis for the remainder of 2022 and the start of 2023 will be on improving disaster recovery and business continuity, as well as introducing additional security features, including a cybersecurity awareness programme.”
Capacity building, Holiday said, “must start with our children by offering quality learning opportunities in terms of education facilities and programmes.” Government is therefore working on the implementation of the US $26.8 million Fostering Resilient Learning Project funded by the Trust Fund at the World Bank. The grant agreement for this project was signed in June 2022.
The project is focused on rebuilding inclusive schools, restoring library services and strengthening of the Management Information System in education, culture, youth and sports. “The goals are to foster data-driven decisions, monitor and enhance the education, culture, youth and sports services for schools, teachers, students, and citizens, support procedures that protect youth and children’s rights with digitalisation and enhance the resilience within the sectors,” Holiday said.
“Other priorities include working towards the $7.05 million Emergency Recovery Program 1 (ERP1), for school repairs which will be supplemented with funds for school gyms and sports facilities. Secondly, the development of a more efficient, effective school busing service and the provision of computers for students and teachers.”
In keeping with its capacity-building agenda, Government is committed to supporting opportunities for higher education, such as the Professional Development Program at University of St. Martin (USM) for teachers with dispensation. The programme started with 21 participants in January 2022. It assists school boards in providing opportunities for teachers.
It is government’s policy to support its capacity building efforts with nation building activities. Government is therefore engaged in the development of policies as part of St. Maarten’s obligations to international treaties on the registration and protection of tangible and intangible cultural heritage.
“Noteworthy in this regard is the ongoing work to establish and promote Philipsburg as a “Cultural Capital,” Holiday said. “This endeavour is taking place in close collaboration with the creative industries as a viable supplement to the tourism industry and thus helps develop our national Orange Economy.”
Intertwined with this undertaking is the aspiration to participate in the upcoming CARIFESTA and bring CARIFESTA to St. Maarten before 2030.
Social policies must be supported by initiatives that foster a healthy and secure living environment for the population, Holiday said. “The environment of our island does not only reflect how we live, but also contributes to our overall wellbeing.”
Government’s core goal and vision for 2022-2023 is to develop a suitable legislative and regulatory framework for proper environmental and infrastructure management with institutional systems to respond to and mitigate the effects of climate change. To realise its objectives, government completed the updating of the building code in 2021, Governor Holiday said. “It is aimed at strengthening the resilience of our built environment to withstand stronger hurricanes and other natural disasters.”
In this new parliamentary year, government will present various legislative initiatives towards the execution of its plans and realisation of its objectives, he said to Parliament. “As representatives of the people of St. Maarten, government looks forward to your participation and your support to serve the public interest on behalf of the people of St. Maarten.”
