Hon. Speaker,
Hon. Premier,
Hon. Members of this House of Assembly, Strangers in the Gallery, Persons tuning in via radio and streaming media, and my fellow Turks and Caicos Islanders.
Good Morning,
Before I get started Mr. Speaker, since the last time we were in this honorable house, a number of persons have lost loved ones – a few of them due to the Corona Virus. I would like to take the time now Mr. Speaker, to give my condolences to everyone who has recently lost a loved one. I feel your pain, and may you find peace at all times in the name of the Lord, and may the souls of the dearly departed Rest in Peace, and Rise in Glory.
Mr. Speaker, as this is the first time we’re meeting for 2022, I want to also take this time, for the last time, to wish everyone a happy happy New Year!
Mr. Speaker, I rise today to table the 2nd Supplementary Revised Estimates of Expenditure for Financial Year 2021/2022.
MINISTRY OF FINANCE, INVESTMENT & TRADE
Mr. Speaker, in Proverbs Chapter 3, Verse 27, King Solomon – the wise King – stated: “Do not withhold good from those to whom it is due, when it is in your power to act.”
Mr. Speaker, I am standing here right now, on behalf of Our Government, Your Government, the People’s Government, for that very reason. For clarity, our Government is here to do good for those to whom it is due, which is each and every one of you.
Mr. Speaker, before I outline how we intend to do good for those to whom it is due, let me first say that these Revised Estimates of $346.4 million is cost-neutral on the supplementary estimates approved on 26th October 2021.
With that Mr. Speaker, I am going to now outline, how we intend to do good for those to whom it is due. Included in this 2nd Supplementary Estimates for Financial Year 2021/22 is a variation of $6.77 Million, of which 96% – i.e. $6.5M – will be used to specifically do good for those to whom it is due, or in the technical jargon of the Ministry of Finance, “to address urgent/critical and unforeseen priorities that have developed since the approval of the 1st supplementary estimates.”
MINISTRY OF FINANCE, INVESTMENT & TRADE
In these Estimates we’re proposing to allocate $69,000 (sixty-nine thousand dollars), to address outstanding allowances to current and former members of the House of Assembly. As you are aware Mr. Speaker, these allowances were recommended by the local branch of the Commonwealth Parliamentary Association at its last meeting, and these allocated funds will allow those allowances to be paid.
We are also proposing in these Estimates to allocate $150,000 (one hundred and fifty thousand dollars), to facilitate consultancy in Public-Private Partnerships (PPPs) to help manage the legal and regulatory framework. Mr. Speaker, Public-Private Partnerships is one of the favorite ways in which governments in both developed and developing countries build critical infrastructure. Global support for PPPs is currently stronger than it’s ever before. These funds will be used to equip TCIG to better manage these types of partnerships. Our beautiful by nature country has a number of critical infrastructures that needs upgrading, and Public-Private Partnerships is one way that we are looking at to achieve the best value for the people of the Turks & Caicos Islands.
MINISTRY OF FINANCE, INVESTMENT & TRADE
Mr. Speaker, I would now like to touch on the matter of crime for a few minutes. According to the Commissioner of Police, Trevor Botting, from April 2021 to December 2021:
• there were 1,235 crimes, an increase of 24 crimes (2%) compared to the same period in 2020.
• there were 184 serious crimes, a reduction in 63 crimes (25%) compared to the same period the year before.
Notwithstanding the 25% reduction in serious crimes, Commissioner Botting stated that “Whilst positive, we of course remain concerned about the increase in aggravated burglaries and firearms offences…” Mr. Speaker, these sentiments are shared by our Government, your Government, the People’s Government, and that’s why we’re allocating $50,000 (fifty thousand dollars) in these estimates towards Enhanced Policing Initiatives. These funds will be used on specific initiatives to further reduce the incidents of serious crimes.
Mr. Speaker, earlier I said that $6.5M (96%) will be used to specifically do good for those to whom it is due, so let me speak to that now in detail.
MINISTRY OF FINANCE, INVESTMENT & TRADE
Mr. Speaker, the Organization for Economic Cooperation and Development (OECD) estimates that the inflation rate in thirty-eight (38) member states, of which TCI is a member, would have reached 5.21% by the end of 2021. The inflation rate in the United States, of which TCI is highly dependent, is estimated to have hit a 30-year end high of 6.2%, as of November 2021. In addition, Mr. Speaker, the Corona Virus pandemic has practically crippled the global supply chain, which is having a significant negative impact on global inflation rates.
So, Mr. Speaker, this good, good Government of the people, is allocating $6.5M to allow our people to benefit from another stimulus. This stimulus is being used to provide economic assistance to the people of the Turks & Caicos Islands that continue to experience adverse effects due to the economic hardships caused by the Corona Virus pandemic, particularly the on-going increase in inflation.
In keeping with our desire to do good for those to whom it is due, this good, good Government of the people, is proposing to give $500.00 to all eligible Turks & Caicos Islands Status Holders, and British Overseas Territory Citizens – i.e. those who are living in the Turks & Caicos Islands. Persons must be 18 years or older to qualify.
MINISTRY OF FINANCE, INVESTMENT & TRADE
Details of when the portal will be opened to accept applications will be sent out to the public by my ministry – i.e. the Ministry of Finance, Investment & Trade – and I have been assured that if this Bill passes in this Honorable house today, that all qualified applicants will receive their payments by the latest 11th March 2022. In addition Mr. Speaker, qualified applicants who are disabled, or confined to their home (in Turks & Caicos Islands), the Treasury will be provide a cheque delivery service to them.
Mr. Speaker, the Government will fund the additional expenditure through:
• a reduction in the Contingency Fund – $2.0m.
• a reduction in the allocation for property acquisition – $3.5m
• Reduction in the allocation for works programme -$1.069m;
• Reduction in the allocation for Development Finance $200k.
MINISTRY OF FINANCE, INVESTMENT & TRADE
Update on the Fiscal Performance of the Islands
Mr. Speaker, with your permission, I would like to take a few seconds to update the nation on the unaudited fiscal position of the country as at 31st December 2021.
• Recurrent and Non-Recurrent receipts totaled $282.1 million, and government expenditure excluding capital expenditure totaled $206.7 million.
• Net Operating balance totaled $75.4 million, resulting in Cash and Cash Equivalents increasing to $188.4 million at the end of December 2021.
• These figures represent a total net cash flow increase of $66.7 million over the first nine months of the financial year.
• The results to date also reflect Development Fund Expenditure of $17.3 million, debt servicing of $0.6 million, bond inflows of $0.9 million, and net receipts of $8.2 million.
Mr. Speaker, from all indications, the robust revenue performance will continue to the end of the financial year, and the forecast is to meet or exceed revised revenue targets approved in 26th October 2021 supplementary.
MINISTRY OF FINANCE, INVESTMENT & TRADE
With that Mr. Speaker, I beg leave to lay on the Table of this Honourable House in accordance with Standing Order 32, and section 115 and 116 of the Turks and Caicos Islands, Constitution Order 2011 the Government of the Turks and Caicos Islands 2nd Supplementary Revised Estimates of Expenditure for Financial Year 2021/2022.
Mr. Speaker, I move that the 2nd Supplementary Revised Estimates of Expenditure for Financial Year 2021/2022 be referred to the Appropriations Committee to be dealt with in accordance with Standing Order 115.
Thank you.
Hon. E. Jay Saunders
Minister of Finance, Investment & Trade
