Businessman Imran McSood Amjad.
PHILIPSBURG--A number of private sector organisations and businesses have commended government’s efforts to cushion the impact of the COVID-19 crisis on the economy via a stimulus plan but wants more details of the plan and wants to make an input “as soon as possible.”
Backing the initiative and making the joint call for more details are members of the St. Maarten Hospitality and Trade Association (SHTA), St. Maarten Chamber of Commerce and Industry (COCI), Philipsburg Promotional Board (PPB), Indian Merchants Association (IMA) and “the wider business community”.
According to a press release from the organisations, government’s stimulus plan has not been shared locally nor has local input been gathered from any sector. Finance Minister Ardwell Irion had indicated that that the plan will seek to provide up to 80 per cent payroll subsidies to companies severely impacted by the COVID-19 pandemic.
“Although the information given publicly is insufficient for these private stakeholders to make a detailed expression of support for the proposed measure(s), they acknowledge that government appears to recognise the urgency to act immediately to boost the St. Maarten economy,” it was stated in the release.
General Manager of Oyster Bay Beach Resort (OBBR) Ricardo Perez was quoted saying that it is very encouraging that government is willing to take action to provide continuing payroll support for employers and employees to avert real economic hardship for residents. OBBR is anxious to see the plan’s details for employers to begin the process of properly accessing much needed funds to maintain employees.
SHTA said while it has taken note of the stimulus package via media reports, it has not had an opportunity to review the plan in detail. “So, we cannot comment without knowing all of the specifics. Although this is a short-term measure, we need to make sure we have a realistic, properly funded and attainable plan for what could be a long-term crisis,” SHTA stated.
However, SHTA stands behind its solidarity remarks that it is important for government to render help quickly and clearly to allow all companies to continue to pay employees. “As always, we offer our assistance and support in making sure that the best possible plan is presented and it succeeds for the good of all,” SHTA said.
Businessman and IMA President Damu Rawtani said that the proposed stimulus package presented to them was to the satisfaction of all the present members of the business community as far as payroll subsidy was concerned.
“We recommended [a – Ed.] little change in conditions, as mentioned in the stimulus package for businesses to be qualified for the payroll subsidy. We are very happy to see that the government has definitely kept the proper balance of the people and the businesses of St. Maarten and forecasted the COVID-19 effects and is following the economic downturn accurately (with) 80 per cent payroll support across the board – as explained in the stimulus meeting – [this] is definitely a positive move in the right direction,” Rawtani said.
“The urgency for this payroll subsidy must be taken (as a) top priority and it should be finalised before the end of April 2020 to avoid mass layoffs, business closures and the resulting social disturbances as the situation of St. Maarten is different from other countries in the Kingdom. Two years ago, we went through a major disaster with Hurricanes Irma and Maria and have not recovered.
“Until today, (we) have not seen any proper tourist season since then as the hotels/ airport are still not ready. Payroll subsidy will help sustain the businesses in general and by extension, its workforce. We must thank the Netherlands and its taxpayers for their support in solidarity and for this generous grant,” Rawtani noted.
Holland House Beach Hotel said it is “grateful” for government’s effort to initiate the stimulus plan and to secure funding for 80 per cent of the payroll and possibilities to obtain soft loans. “These are trying times for all of us. The well-being of the employees, job security and continuation of business is vital for the future of the island,” Holland House General Manager Paul Boetekees said.
Businessman Danny Ramchandani said: “We were happy to read about our Finance Minister’s proposal about liquidity support and the offer of 80 per cent support for salaries at this tough time for our employees. We are really happy to see that we can make sure in these tough times none of the employees are laid off and they [can] survive for next six months until the tourist situation and economy gets better in St. Maarten.”
Chandan Nandwani said the stimulus is needed as soon as possible. “We need to hit the ground running at the earliest possible moment. [The] main reason is to avoid the lay-off- and unemployment rate to increase in the country. The amount of NAf. 33 million seems to be very small for St. Maarten based on fixed cost and expenditures anticipated post-COVID-19.
“We also need to bear in mind that St. Maarten is in the hurricane belt. If we are to be faced by such an act of god in the coming months, we would be even more devastated financially and economically.”
Businessman Imran McSood Amjad of NAGICO Insurances and the Motorworld Group said he is – in particular – appreciative of government’s proposed payroll support.
Businessman Saro Spadaro of Maho Group said that he supports the stimulus plan “as anyone who has the future of our island at heart should too.”
Philipsburg Promotional Board (PPB) member businessman Peter Mirpuri of Ballerina Jewelers is pleased that government recognises the projected effects of COVID-19 to the economy and the people of the country. He said, “The 80 per cent payroll support is desperately needed to help businesses and employees stay alive and avoid an economic collapse. We hope that this plan materialises the soonest as this assistance is urgently needed.”
“Payroll support is definitely a positive move,” said businessman Sunny Lalwani of Landmark Variety Outlet. “The ultimate need of the hour is that payroll should not be deferred to a later date. This economic stimulus should be implemented as early as possible.
“However, there may be a need to fine-tune certain areas such as the soft loan policy and the fast yet efficient disbursement of the funds amongst others. These must be addressed and ironed out concurrently as St. Maarten moves forward in reaching out to the Netherlands.”
COCI board member and owner of Beds ‘N Beyond Vinod Kotai welcomes the stimulus plan and its goal to keep the business sector afloat in these troubled times by keeping workers and employers going during this “economic pause” and its after-effects. “I commend our minister of finance for his insight and zeal to see [that] both large and small business sectors stay alive,” Kotai said.
United People’s (UP) party Member of Parliament (MP) Businessman Sidharth “Cookie” Bijlani thanked Irion and Chairperson of Parliament Rolando Brison for having a debriefing with business representatives. Bijlani had also organised a meeting between the private sector and Irion along with Rolando Brison.
“This might be the first time in history that government is supporting employees and employers – which is excellent – especially with 80 per cent payroll support. I hope that there is room for more stimulus going forward as the economic downturn due to COVID-19 will take a totally different and longer lasting impact with our tourism, which the country relies on almost 90 per cent,” Bijlani said.
“Either we have to look into diversification measures such as agriculture, shipping hub, Amazon distribution, medical and sports tourism. If this stimulus plan is approved as a grant by the Dutch government and passed on to businesses – also as grants rather than loans – it would be a great help for St. Maarten,” Bijlani added.
Holland House General Manager Paul Boetekees.
OBBR GM Ricardo Perez.
