Dear Editor,
According to the chairperson of CFT, Raymond Gradus, “a tax increase in St. Maarten, which is needed to generate more revenues for government, would not necessarily harm the country’s competitive position.” Gradus believes that increasing tax revenues by 2% would still have St. Maarten with a low tax to GDP ratio compared to other countries. Can we really compare St. Maarten with other countries? The other countries that Gradus refers to have vibrant economies, with excellent logistics for movement of goods. The economy of St. Maarten is not vibrant as one would think. Aside from the tourism industry, there is no other industry of significance on this island. Those that are there, directly, and/or indirectly, depend on the tourism industry.
As it stands, we already have problems collecting outstanding taxes. Would increasing of taxes not promote more tax delinquency, and/or evasion? With all due respect for the position of the CFT, I beg to disagree with the theory of Gradus. Also, is the CFT not a supervisory/advisory board that works for governments of The Netherlands, as well as of the various islands in the Caribbean under The Netherlands? If so, does Gradus and the other members receive 12.5% less of their wages as a member of a government-owned board? The national ordinance focuses on employees with high positions in the public and semi-public sectors, including members of the government-appointed boards, and members of the government-appointed supervisory boards.
My question here is, does this national ordinance apply to members of the CFT as well? Every time there is a calamity, we have no other option than to knock on the door of the government of The Netherlands for financial, and other help. If we were like those other countries that Gradus refers to, which have a higher tax to GDP ratio, we would not have to go to The Netherlands for help because we would at the very least, be somewhat self-sustainable, and more financially independent. Rather than permitting ways of hurting the island’s people even more, our government should come together with the government of The Netherlands to find ways to make the islands self-sustainable and financially independent.
Here in St. Maarten, we do not have land for economic development. Most economic industries require flat land for development of business opportunities. We do not have that. Aside from the logisticsa of land availability and importation of primary products, it would be awfully expensive for St. Maarten to ship products made on the island as we do not have a hold on this industry. Also, the ability to meet overseas market demands is not feasible, again because of lack of production space. Farming is also a big issue in St. Maarten simply because of lack of availability of land, and high energy and water costs.
We have solutions we can and should explore. The world population is growing, and land is becoming scarce everywhere. All countries complain of lack of viable farmland. Not only because of expensive operational costs, but long periods of drought and unpredictable whether as well. It is because of this reason and the population growth by 2050, that many countries are looking towards farming on water as a viable option. The practice of farming on water is for sustainable production of vegetables, fruits, and animals, but also for sustainable fish farming. I have explored these concepts as a means of self-sustainability, and financial independence for St. Maarten. Not for a private individual to own and operate, because it would not benefit the populous.
However, all who work and/or make a living from farming can participate in this program because it is intended to be a public/private co-op system. Government will provide the farms and local farmers will manage it under government supervision. The farmers will earn a percentage of the income, and government has a new source of revenue Vis a Vis imposing additional and/or increased taxes.
I have absolutely no interest in running for office. I have, however, always shown my love for the island through my various activities. In business, I have developed a product of need within the society through my funeral insurance company. For the past 27 years, my company sells only one product that offers a good package, with excellent and expedient service, and for the lowest price on the market when it comes to funeral insurance. I was challenged in court for my policy and was found to have done everything right, and therefore my company won the case. Every three years I get a certificate of integrity from the Central Bank of Curaçao and Sint Maarten, which has relevancy to my insurance company.
In sports, I introduced Pee-Wee baseball in St. Maarten in 1996. Mr. Brown and the late Mr. Baco as he was affectionally referred to, took it over after a while, which was natural, as Pee-Wee baseball precedes Little League baseball. As a member of St. Maarten tennis club, I lobbied for an international tennis tournament to remain in St. Maarten, thus bringing sports tourism to the island for eight consecutive years. It is until death do us part that I will stop dreaming up ideas to make St. Maarten better. What I would like, is to come together with government, in particular the ministers of TEATT and VROMI to further brainstorm these viable revenue-generating options for the island.
The floating farm project, if executed, must be relocated to the lagoon as the salt pond is not deep enough. However, the salt pond can be utilized partly as a Tilapia fish farm, and partly as a tourist attraction. We have a lagoon that provides tremendous financial benefit for private industries, such as the Yachting industry. I applaud the Yachting industry for it does provide work for locals. The problem here is that this industry benefits a few and government’s income is insignificant when compared to the GDP derived from this industry. I am not saying that taxes are not paid. I am saying that revenue for the coffers lacks behind in comparison. Still, I would not agree with taxing this or any other industry or individual the recommended or suggested 2%. Rather, government should capitalize on its natural resources to generate revenue from direct involvement, meaning government is the owner.
Government has recently claimed land on Airport Road. Prior to giving it to private developers, government must consider keeping it for development of projects that will benefit the country and all its people. If we can speak of government starting a financial institution to give loans to people who can barely afford a bank account, then government must consider securing available government lands, and investing in creating job opportunities, and sustainably feeding the populous, while at the same time increase its revenues free from additionally imposed taxes. I am not against a credit union concept that can provide loans to individuals that otherwise would not qualify for a loan. I believe however, that generating an income for the citizens precedes savings and loan possibilities.
With regards to the floating farms, my research showed that the cost of purchase of one floating farm is exorbitant when comparing return on investment. The only way this will work, is if there is an agreement between the Dutch government and the government of St. Maarten. This is an integral point of discussion in the meeting with the ministers. Let us come together as one and go to The Netherlands with a solid business plan, with which we will now ask for loans and/or grants that will have us become somewhat self-sustainable and financially independent. Let us inform and involve our representative in the Dutch Second Chamber, Jorien Wuite, so she can be our spokesperson, and join us in meetings with the Dutch government. Let us sow, so that our next generations can reap.
Louis Engel
