Budget 2022/23 Speech - Hon. Erwin Jay Saunders - Minister of Finance and Trade

May 4, 2022•73 Minutes
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Thank you, Mr. Speaker! 

I rise with humility and gratefulness to make my maiden budget presentation in this the People’s House as Minister of Finance Investment and Trade of these beautiful by nature Turks and Caicos Islands. 

I thank the Almighty God, who has blessed, protected, and provided for us.  

For we are God’s handiwork, created in Christ Jesus to do good works, which God prepared in advance for us to do – Ephesians 2v10.

 

  • Hon. Mr.  Speaker 
  • Hon. Premier 
  • Hon Cabinet Ministers 
  • Hon. Leader of the Opposition 
  • Hon. Members of the Opposition 
  • All other Hon. Elected Members 
  • Hon. Appointed Members 
  • Distinguished Chaplain 
  • Distinguished ladies and gentlemen 
  • Distinguished guests in the gallery 
  •    

To those watching on social media, on television and to the diaspora thank you for tuning in. 

Mr. Speaker, thank you for the stellar role you have played in ensuring an orderly management of the proceedings of this house.  

Importantly, I must extend my sincere gratitude to the people across these islands who voted for me and allowed me the opportunity of a lifetime to serve the country that I love so much.  

I am determined to give my all to improving the lives of our people.  

I thank the Hon. Premier, Charles Washington Misick for the confidence he has reposed in me by assigning me this important Ministry of Finance, Investment and Trade. His guidance and support have made a challenging job much easier. Under his bold, strong, and skilled leadership, the TCI has a stronger economy and a future that is much brighter and hopeful.  

To members of this house, especially my Cabinet Colleagues, thank you for your support, and for your unbridled work to build our islands. 

To the staff of the House of Assembly who go beyond the call of duty with graciousness and professionalism. Thank you. 

To the hardworking and dedicated team at the Ministry of Finance, Investment and Trade, Permanent Secretary, Athenee Harvey-Basden and her team, my personal staff as well as administrative and ancillary staff who always go beyond the call of duty. Thank you. 

Thanks to the staff of all the agencies under the Ministry. 

I spent just about 5 months at the Ministry of Health and Human Services. The incredible staff there helped to usher us through some of the most difficult days of the pandemic. I thank each of you for your dedication and love of country. 

Most importantly Mr. Speaker, I thank the wind beneath my wings… my family. My wife Indrani, our children Gabriel, Maya, Michael, and Anjali. My wonderful parents (Hon. Norman and Hon. Emily Saunders. Their photos adorn the walls of this Honourable House, and I am so blessed and happy that they are here in person today). My siblings (Denise, Norman Jr, and Dax) and my extended family.  

My best friends (Andrew, James, and Kenrick), and the two people who first came out in support of me (Anthony “Tony Ha” Hamilton and Bishop Dr. C. Alexander Williams III). I would not be here today if not for you, and I would not be here today without you!  

 

THE PEOPLE’S CONTRACT 

 

Mr. Speaker, we came to office just over a year ago following a historic 14-1 victory. Our campaign was centred on creating a more secure and better future for our people.  

We want our people to live their best lives. We are laying the foundations to advance growth and development… We are creating a future that our people can look forward to and one that our young people can get excited about.  

 

We made several promises in The People’s Contract on how we would create that future.  

 

That contract which remains active today outlines the policies and programs to recover and grow the economy, deal with the impact of COVID 19, and set the TCI on the path to long term prosperity. 

As the Hon. Premier said in his “State of the State” anniversary broadcast in February.  

 

“It is our commitment to deliver on every pledge and we say to the people – We are your servants – Hold us accountable”.  

 

Mr. Speaker, when we came to office, we faced many challenges and hurdles, but we are systemically getting through them one-by-one. 

FIXING THE PROBLEMS 

Mr. Speaker since the start of the pandemic our country and our people have faced many hardships.  

 

When we came to office on the 20th of February 2021, things were rough across the country. For many persons, our party winning the election and forming the government was their last hope.  

 

The economy was in very bad shape because our main economic driver – i.e.  tourism – was in a crisis. Tourist arrivals were down significantly compared to the pre-pandemic years.  

Stop over arrivals were down to a trickle and cruise ships were not calling.  

 

As a result, many persons who worked in the tourist sector either lost their jobs or were forced to close their businesses. 

 

The future was looking bleak. The country was filled with hopelessness and fear. 

 

Not much was being done to help our people recover from the pandemic.  

Our administration knew that we had to change course, and that we had to do it fast. 

Our people needed a lifeline, and we needed to show them that even though things were bad, we were going to make life better. 

On taking office, we immediately implemented policies and programs to kickstart the economy, which give us a path out of the severe health crisis caused by the COVID – 19 Pandemic. 

And Mr. Speaker, everyone would agree that we have made significant strides. 

  • 85% of the country’s adult population has had at least 2 doses of vaccines against the Covid-19 virus.  
  • Covid infections are down significantly. 
  • Approximately US$27 million in stimulus grants and other assistance have been given out to help our people. 
  • Unprecedented performance in the real estate and tourism sectors have helped to build economic resilience, bolster the confidence of investors and have given us the fiscal space to invest in the development of our people.  
  • Public servants have had their salaries increased. 
  • There is now a retirement plan for public servants. 
  • We have significantly increased investments in our country and our people. 
  • We increased investments in delivering first-class health care service. 
  • We increased investments in our “premium brand” tourism. 
  • We invested in training and systems to foster good governance. 
  • We increased investments in disaster preparedness and climate change resilience. 
     
    Mr. Speaker, our Government is building a strong economy that works for all our people.  
    An economy that is centered around People, Opportunity, and Prosperity. 
  •  

GLOBAL ECONOMIC CLIMATE 

Mr. Speaker, there is no doubt that our Government, and our country had a banner economic year – but notwithstanding the positive achievements and unprecedented economic gains, we are ever mindful of how the Global Economic Climate is affecting us. 

The Russia/Ukraine War is the most significant conflict in Europe since World War II. 

It is having significant negative effects on the world – including here in the TCI. And the fallout is expected to get worse before it gets better.  

Last month, the International Monetary Fund (IMF) cut its global growth projections for 2022 and 2023 to 3.6%. This represents drops of 0.8% for 2022, and 0.2% for 2023, from the forecasts published in January.  

The world Bank has also cut its global growth expectations for 2022 from 4.1% to 3.2%. 

The effects of the Russia/Ukraine conflict are worsened by the global supply chain issues, which have resulted in increased energy and food prices.  

The United States, our largest trading partner, has reported that its inflation rate now stands at 8.5%. 

 

Mr. Speaker, higher prices for basic items have pushed the average inflation for this fiscal year significantly beyond the 6% that was originally forecasted. 

If the Russia/Ukraine conflict and the global supply chain problems continue for much longer, there is a high probability that global investors may become timid and pull back on their investments.  

If this happens Mr. Speaker, it will have an adverse effect on our Foreign Direct Investment flows.  

Thankfully Mr. Speaker, and through the goodness of God, so far, the investment interest in our Beautiful by Nature Turks & Caicos Islands remains robust.  

 

Our Government is closely monitoring developments and reactions of global markets, and will make adjustments to our policies if it is deemed necessary.  

And as we have consistently done, we will ensure that the poor and vulnerable are protected from the worst effects of this crisis. 

 

Mr. Speaker, the country’s unemployment rate is now 8%, and through our Government’s mitigation measures, we are projecting that it will to fall to 7% in 2022.  

 

From day one, the policies of this Administration have been designed to “build economic resilience, protect and develop our people, while supporting inclusive growth, sustainability, and security”.      

An economy that works for all – People, Opportunity, and Prosperity. 

 

ECONOMY – WHERE WE ARE 

As a tourism dependent country, our economic outlook is influenced heavily by our vulnerability to external shocks.  

Despite, the challenges around the world, our policies and priorities are deliberately designed to position our country to continue its economic rebound through 2022 and 2023.  

We are projecting that economic growth will be fuelled by continued strong recoveries in the tourism, construction, and the real estate sectors.  

Local authorities and the international rating agencies believe that as long as the strong performance in the tourism, construction, and real estate sectors remains, Real GDP will continue to grow.  

They are forecasting a greater than 7% growth in 2022, and an average growth of around 5% for the following 3 years.  

This positive forecast comes on the heels of estimates that the TCI economy grew by more than 10% in 2021.  

Notwithstanding the very strong growth last year, the GDP remains below pre-pandemic levels.  

The economy is simply “catching up” after a significant decline of approximately 27% in 2020.   

Mr. Speaker, our Government will continue to use all the tools at our disposal to expand the economy, and most importantly create opportunities and prosperity for our people. 

 

Our Government will use the capital development programme to support increased activity in the private sector and to help further accelerate growth in the TCI economy.  

Mr. Speaker, the Import Receipts tell a story of feverish activity, especially in the construction sector. 

For example, total Merchandise Imports for Calendar Year 2021 were valued at $485.9 million.  This is an increase of approximately $136 million over 2020.  

 

And 2022 is looking equally as strong.  

During the first three months of 2022 (i.e., Jan. – Mar.), Merchandise Imports increased by $59.7 million (63.6%) over the same period in 2021.  

In the first quarter of 2021, imports were valued at $93.9 million. This year it is $153.6 million. 

Mr. Speaker, that is performance! 

And, despite the effects of the COVID-19 pandemic on our economy, we were able to maintain a BBB+ credit rating in 2021, and we expect to do so again this year. 

Mr. Speaker, even with the positive growth prospects, we are always mindful that there may be unforeseen challenges ahead for our economy.  

There are always lingering threats of new strains of the COVID-19 virus spreading, persistent market disruptions, supply chain challenges, and rising inflation.  

The Russia-Ukraine war, even though far away, will continue to manifest in increased gas, oil, and food prices, and further disruptions in the global supply chain.  

While we need to be realistic and cautious because of the global economic conditions, we have so much to be proud of and thankful for. 

 

The performance of the TCI economy within the last financial year has been consistently robust.  

From April 2021, and for each month throughout the last financial year, we recorded a surplus. We are ending the year with a total Operating Surplus before capital expenditure and investments of $89.9 million.  

From this surplus, we contributed $67.6 million to the Cash Reserves, increasing it from $121.7 million at the start of the financial year in April 2021, to $189.4 million in March 2022.  

That is performance Mr. Speaker! 

Total Revenues collected for financial year 2021/22 was $391.1 million.  

This exceeded the original forecast by $27.5 million.  

That is performance! 

Mr. Speaker, it also exceeded Collections for the financial year 2020/21 by $188.8 million.  

Our healthy Operating Surplus, coupled with prudent spending practices, have allowed us to maintain a resilient Cash Flow position and strong Cash Reserves.  

Due to the country’s strong performance, our Government has not had to draw down on any of the pre-approved debt facilities at our disposal. 

Mr. Speaker, I am proud to report, that due to our strong Cash Flow at the end of the third quarter, we retired the $80 million revolving Credit Facility obtained in 2020.   

The facility was obtained by the previous administration during the height of the pandemic to support Recurrent Expenditure.  

There was a cost to having this facility, even if we did not use it. So, it was in our economic interest to retire it.  

Mr. Speaker, many say the TCI is experiencing an economic miracle. We do believe in miracles and always, we rely on the mercy, grace, and blessings of the almighty. 

Our team, under the capable and steady leadership of our Premier, the Hon. Charles Washington Misick, managed the opening of the economy in a deliberate and skilled way. 

But Mr. Speaker, we did not do it alone. 

Our people were onboard, so were the public sector workers, and our private sector partners. 

They adjusted their lives, work environment, and business operations.  

It was a team effort.  

We expect this positive trend to continue throughout the 2022/23 financial year.    

Mr. Speaker and fellow Islanders, without any unforeseen negative shocks, we hope to have Operating Surpluses and healthy Cash Reserves for the foreseeable future.   

Based on the unaudited Expenditure of the last financial year, our Government spent $301.2 million.  

Although this was $20.1 million below what was budgeted, it was $37.0 million more than what was spent the previous year.  

This expenditure included:  

  • $93.0 million in Personnel Costs including wages  
  • $13.9 million in Pensions and Gratuity 
  • $32.5 million in Transfers to NHIB  
  • $23.8 million in Hospital Provisional Charges  
  • $19.7 million in Land Acquisition  
  • $21.5 million in Subventions; and  
  • $6.6 million in direct stimulus, to help our people deal with the fallout from the pandemic  

 

FOREIGN DIRECT INVESTMENTS 

Mr. Speaker, one of the bright lights for the economy were the high levels of investor confidence during the last financial year. 

Foreign owned business interests sought development agreements to the tune of approximately $3.7 billion. 

 

Mr. Speaker, as outlined in the People’s Contract, our Government will only choose investments that are ideally suited for the strategic development of our country. Proposals that are not in keeping with this mandate will be rejected. 

During FY2021/22, our Government executed Development Agreements valued $105.4 million, resulting in the creation of 293 permanent jobs.  

Existing investors remain a core strength of this vibrant TCI economy.  

Mr. Speaker, $124 million of the projects facilitated were reinvestment projects.    

Invest TCI has revised the governance framework for investments to create a more enabling environment for businesses to thrive.   

This includes a new Due Diligence Policy, amendments to the MSME and Investment Policies, and a 5-year Strategic Plan.  

Approximately, $700 thousand was approved for cash grants and technical assistance to (MSME) small businesses to encourage and support innovation. 33 grants valued between $10 thousand and $30 thousand were disbursed. 

 

Expenditure 2022/23 Estimates 

Mr. Speaker, this year, we plan to spend $388.9 million. This is an increase of more than $78 million (20.2%) over last year.  

  • $326.9 million represents Recurrent Expenditure, such as Salaries and Wages and Goods and Services. 
  • $12.0 million for Non-Recurrent spending or One-off Expenses, and  
  • $50.0 million for Capital Development, such as projects, land, furniture, computers, and software.  

    Mr. Speaker, the growth in the economy has enabled significant investments in human capital development, infrastructure, tourism, public order, and safety.  

    Our goal is to support inclusive growth, sustainability, and security.    

    In keeping with international best practices, we have divided government expenditure into the following 10 critical areas:   

1.      Economic Affairs 

Mr. Speaker, $103.7 million has been allocated to Economic Affairs. This will fund important areas such as:  

  • Infrastructure development, including land acquisition 
  •  Tourism product enhancement 
  •  Agriculture 
  • Catastrophic risk insurance 
  •  Environmental and coastal resources 
  •  Energy and utilities 
  •  Media and communication 

 

2.      Health 

Mr. Speaker, the health of our people continues to be a significant priority of our Government.  

That is why we are allocating just over $78.9 million (20%) of the budgeted expenditure to health care delivery.   

Our focus remains the provision of quality care, including public health and hospital services, mental health, research, health emergencies, dental, laboratory services, the promotion of healthy lifestyles, and policy planning. 

 

3.      Public Order and Safety 

Mr. Speaker, the safety and security of our people are priorities of our Government. Crime threatens the security and safety of our people, including our children.  

The third largest allocation of just over $67.3 million is for public order and safety. It will cover all agencies, including the Police and the courts to deal with crime and rehabilitation.  

Of this amount: 

  • $32.5 million will go towards Police Services.  
  • $19.2 million is for the Law Courts, AG Chambers, Director Public Prosecution, Judicial Administration, and the Labour Tribunal. 
  • $8.2 million for Public Order, including Disaster Management, Customs and Border Protection, Immigration, and Repatriations. 
  • $5.4 million for Prisons, Correctional, and Rehabilitation Services. 
  • $1.3 million dollars for Fire and Rescue.  

     

4.      General Public Services 

To support the public service operations, including the offices of the Governor, Deputy Governor, Premier, House of Assembly, financial, and fiscal affairs $62.0 million has been allocated.   

 

5.      Education 

Like prior PNP administrations, we are increasing the education and training capacity of the TCI.  We are focused on creating modern schools that are accessible, equipped with the latest technical tools, and the right student/ teacher ratios.  

We are creating curricula that provides the right mix of literacy, numeracy, and technology to best position our students to thrive in the global marketplace.   

We are continuing our investment in early childhood, primary, secondary, tertiary, and vocational education with an investment of $37.5 million.  

Our priorities include: 

  • Improving early childhood, primary, secondary, and tertiary education.   
  • Providing scholarships to young people at the community college level. 
  • Maintaining recreational/sporting facilities. 
  • Supporting TVET pursuits. 

     

6.      Social Protection 

Mr. Speaker, this government has made it our cause to take care of the poor and most vulnerable in this country.  

We know that the inflationary pressure caused by the Russia/Ukraine war and the supply chain crisis is limiting the purchasing power and diminishing the value of savings for our people. 

As the members of this Honourable House know, over the last 14 months, our Government spent over $20 million in stimulus to cushion the impact from the Covid-19 pandemic and the increase in inflation.  

Additionally, there is an allocation of $600 thousand in this budget to handle stimulus payments for applications under review. 

We will continue to help those in need to make ends meet, and live comfortable lives.  

We have revamped our Home Health and Social Assistance programme and have carved out $5.8 million to help the vulnerable. 

Whether it is the single mother who needs help to feed her children, or elderly persons who are unable to care for themselves, our Government is here to give those in need a hand up. 

We will continue to examine the socio-economic conditions and adjust support where necessary. 

 

Mr. Speaker, we are taking care of our hardworking Civil Servants.   

$14.6 million will be spent on pensions and gratuities for Public Servants to have the standard of living and quality of life they hope for and deserve upon retirement.  

 

They must have something to look forward to.  

 

Over $500 thousand will be spent to help victims of domestic violence and promote gender equality.  

Mr. Speaker, domestic violence affects families, and we must help the victims and punish perpetrators.  

We also have to help our people find more peaceful ways to handle conflicts. 

The formulation of a National Domestic Violence Protocol aims to improve the quality and consistency of services countrywide and standardize the response to victims/survivors. 

A Domestic Violence Safe House is being established to give victims/survivors a place where they can stay for a while and feel protected.  

 

7.      Environmental Protection 

Mr. Speaker, as a small island developing state, it is in our interest and long-term survival to protect our environment and marine life. 

$6.2 million has been allocated to public health, solid waste, and sewerage management. 

$1.5 million has been allocated for fisheries and marine resource management.  

 

8.      Housing and Community Amenities 

We will spend $3.8 million on Housing and Community Amenities.   

The funding will cover Water Services, including water treatment and distribution to Grand Turk and Salt Cay. It will also fund improvements to housing and community renewal, as well as District Administrations. 

 

9.      Defence 

Mr. Speaker, as an island state, our border is open and accessible. We face increased challenges from illegal immigration, the illegal drug trade, poaching, firearm smuggling, and other illicit activities.  

Our goal is to facilitate the legitimate flow of people and goods, and to protect our people from harm. 

Over $2.7 million will be spent directly on the National Security Secretariat and the Contingent Forces.  

 In addition, we will spend $1.5 million on patrol vessels and motor vehicles for our defence forces. 

   

10.  Recreation, Culture and Religion 

And, Mr. Speaker, we are supporting Recreational activities, cultural development, and community activities with the following 

Allocations: 

  • $3.1 million to Recreation and Sports which will cover scholarships, sponsorships, and grants for participation in regional and global events 
  •  $700 thousand to Youth Development 
  •  $601 thousand to the development and promotion of culture  
  • $250 thousand to religion, which will help to fund partnerships with churches for social programmes that will foster community upliftment and crime reduction 
     

    Mr. Speaker, we are building economic resilience through human capital development to support inclusive growth, sustainability, and security. 

     

    It is about People, Opportunity, and Prosperity. 

     PUBLIC SECTOR INVESTMENT PROGRAMME 

    The revised estimates for the Public Sector Investment Programme (PSIP) in the last financial year was just over $29 million.  

    This included $4 million from the Infrastructure Improvement Account. 

 

In this financial year, we are investing more. $50.2 million has been earmarked to be spent in the following ways: 

  • $16. 8 million for ongoing projects 
  • $32.4 million for new projects 

The new projects are aligned with the priority areas of the government including:  

  • $8 million for Law Enforcement, Border Control and Security 
  • $2 million for continued investment in Digitization and E-governance 
  • $6.4 million for Education  
  • $6 million for Water Undertaking, Prison, and Fire Services  
  • $21 million investment in Infrastructure development throughout all Islands  
  • $1.7 million investment in Tourism  
  • $1.2 million investment in Health 

Mr. Speaker and Hon. Members, you may recall, that the Public Finance Management Regulations were amended recently.  

Once approved by the House of Assembly, the allocation for the Development Fund will be committed for two successive financial years. 

We believe that this will allow: 

  • Improvements in our long-term planning and strategic outlook, and more time for the review and evaluation of projects. 
  • Budgeting more efficiently and establishing priority areas. 
  • Giving departments such as the Project Management and Programme Division of the MPPID more time to properly plan and scope new projects. 

 

FINANCING THE BUDGET 

Estimates of Revenue 

Mr. Speaker,  

Estimated Revenue is $395.7 million. 

  • $392.4 million represents Recurrent revenues,  
  • $3.37 million from Capital Receipts, including Grants from External Donors and earnings from the sale of lands.  

This is a country built on Tourism.  

Although we have been cautious in our outlook and projections, we expect the very high levels of tourist arrivals to continue.   

I thank our Tourism partners for their imagination, innovation, and commitment to the destination.   

The quality of their properties and their high levels of service have placed the TCI among the top destinations in the world.   

They have helped make our Tourism brand strong and resilient.  

We will continue to work closely with them to improve and expand the sector.  

Our goal is the same… to increase both long-stay visitors and cruise passengers.  

We are also very happy with the pace of development within the construction sector.    

Based on the trend, in the first quarter of this calendar year, we expect healthy increases in hotel & restaurant tax, imports, and in customs processing fees. 

Duties and Customs Processing Fees (CPF) are the largest revenue generators, and combined account for 30% of revenues.  

We are projecting the following: 

  • Accommodation Tax = $90, 518, 829 dollars 
  • Import Duties = $89, 309,012 
  • Other Customs Duties = $30, 252, 168  
  • Work Permit = $32, 178, 209  
  • Stamp Duty on Land Transactions = $80,000,000 and… 
  • Fuel Tax = $7, 821, 524  

 

Mr. Speaker, as I mentioned before and it bears repeating, the Russia Ukraine war and the supply chain issues have fueled higher inflation.   

To cushion the impact on our people, we have reduced the “Fuel Tax” and Customs Processing Fee (CPF) by a combined US$15 million.   

We expect that this will result in more manageable prices for food and fuel for our citizens and residents.  

 

Mr. Speaker, I commend the Inland Revenue Department for its vigilance and tireless commitment to compliance. 

While revenues for financial year 21/22 are historic and we are on trend to do well in 22/23, we are aware that our dependence on tourism makes us vulnerable to any volatility in the world economy and financial markets.  

For our long term financial and economic health, we must create a more robust and sustainable revenue system.  

This requires restructuring the current system and creating a modern revenue management system that is neutral, efficient, effective, simple, and fair.  

Mr. Speaker, the transitioning of the Inland Revenue Department from a direct government department to a Revenue Authority is progressing smoothly.  

Our goal is to increase revenue collection, improve efficiency, update current systems, and ensure that the tax laws are properly administered. 

 

Our revenue management system will seek to create the right balance between revenue initiatives and cost containment. 

Mr. Speaker, we are getting some help from the Caribbean Regional Technical Assistance Centre (CARTAC).  Their experts are working with the Inland Revenue Department in its transition to a world class Revenue Authority.  

We are hoping to complete this process in the next 12 to 18 months. 

CARTAC is also assisting with a comprehensive review and clean-up of SIGTAS – our revenue reporting software.  Our goal is to improve the overall customer experience through a secure, efficient, and user-friendly automated system. 

Mr. Speaker, the Government is always looking at ways to simplify the tax system, improve the ease of doing business, and reduce the administrative burden.  

We have identified major initiatives that are critical to growth and development and will support our focus on People, Opportunity, and Prosperity. 

 

Major Priority Initiatives  

1.0  Investment in Digitization and E-Governance 

$2.3 million will be spent in each of the next three years on Digitization and E-Governance. 

We believe that to optimize our economy, improve and increase services to our people, digitization of government systems is critical.  

 

Having online databases and connectivity among departments will help to streamline operations and create efficiencies.  

While the process has not been as quick as we had hoped, we are starting to make some headway. 

 

Our aim is to have a mandatory national ID smart card that will make it easier for everyone to conduct business with the Government.  

 

2.0  Investment in Tourism Development 

$8.0 million has been allocated towards enhancing the tourism product, including developing a Destination Management Organization (DMO).   

The Ministry has already started the transition from the Tourist Board into a Destination Management Organization.  

The project has been tendered and inception reports and stakeholder engagements have started.  

The DMO will include a regulatory authority which would set standards and guidelines to ensure quality service delivery from accommodations, recreational facilities, and attractions. 

 

3.0  Investment in Law Enforcement, Border Control and Security 

An additional $1.4 million has been allocated to enhance border protection and security. The TCI Regiment will see an increase in its reserve force by 20 officers with 2 full time permanent posts. A Defence Board will be established to provide oversight. 

12 marine officers will be added to the Royal Turks and Caicos Islands Police Force (RT&CIPF) plus 10 new Immigration Officers.  

In addition, more money will be allocated to the RT&CIPF to improve intelligence gathering and investigations as we step up crime fighting efforts.  

$5.8 million will be spent on new projects, including the police station in Grand Turk, a mobile station, and new boats. 

 

4.0        Civil and Public Service 

$9 million has been allocated to facilitate a contributory pension scheme and increase the basic salary for Civil Servants.  

This administration wants the best for our Civil Servants who go beyond the call of duty to serve our people.  

The Government is increasing staff costs by 10%. This includes a direct salary increase of 4% – and a 6% allocation towards the newly formed pension scheme.     

The TCI Public Sector Pension Fund Ordinance was passed in this House in March 2022. 

$20 million in seed money is needed to get the pension going.  

Mr. Speaker, $8.4 million was paid into the fund during the last financial year and our Government will contribute $2 million annually over the next six years to the fund. 

The $20M will cover pension payments for past services.  

For current employees, the government will assume responsibility for the employer and employee contributions of 3% respectively.  

 

As the TCI Public Sector Pension is implemented, we will:   

  • Establish the Pension Board 
  • Establish and open request for proposal for a Pension Fund Administrator 
  • Select via open request for proposal for an Investment Manager  
  • Expand administration and governance to include private sector, (Multi-Employer)  

 

The estimates continue to support the payment of biennial performance-based increments. Employees are moved up the salary scale if they have a successful performance evaluation. 

5.0    Human Capital Development  

To create the kind of economy and society we aspire to, we need a more highly educated and skilled population and workforce. 

The Government’s flagship priority is Human Capital Development.   

Over $10.2 million is allocated, with an additional $1.2 million in this FY to increase the number of international and local scholarships awarded annually. This includes an increase in the allocation for scholarships at the tertiary and Community College levels.     

Effective September 2022, access to the Community College for Belongers and British Overseas Territories citizens will be free. 

6.0  Increased Access to Secondary Education 

The Government will upgrade the Clement Howell and Louise Garland-Thomas high schools to senior high schools offering 1st to 5th form education.  $2.6 million has been provided for the upgrades. 

 

7.0  Social Welfare 

We have provided an additional $1.65 million to enhance social development welfare ($5.8 million).   

The additional sums will facilitate an increase in monthly payments to our indigent population. 

 

8.0  Statistical Surveys/National Census 

Reliable data is important for planning and the proper functioning of any government. That is why we are putting $800 thousand to make improvements to the national statistical system.  

As was outlined in our Government’s manifesto, the Central Statistics Organization (CSO) will be transformed into the National Statistics Institute.   

The changes will include improvements to the regulatory framework for the coordination and governance of the National Statistics Institute.  

Cabinet has approved funding for a 2022 census, with preliminary work already started. The last Census in the Turks and Caicos Islands was conducted in 2012.  

Since that time, new houses have been built, the population has grown, and other significant changes have taken place.  

The Census is designed to assess the changes, provide data to evaluate existing social and economic programmes, and to inform on the solutions necessary to build successful and cohesive communities.  

The information will be used to determine the location, number and types of schools, the demand for housing, water supply and other amenities.  

The Department will be launching its Facebook page shortly to inform the public about the census and other important social and economic surveys.  

 

9.0  Environmental Health and Emergency Medical Services 

The Government has allocated resources to establish a new unit with eleven Port Health Officers to enact the International Health Regulations of 2005. These regulations establish standards to prevent the importation and spread of diseases through airports and seaports.  

Funds have also been allocated to hire a Dump Attendant for Kew North Caicos, an additional Deputy Chief Environmental Officer, and a Vector Control Coordinator.  

 

 With these additional staff, the Public Health Department can better carry-out its mandate to create a healthy and safe environment for residents and visitors. 

In addition, a second ambulance base with appropriate staffing is funded for Providenciales. 

 

10.0 Investment in Government Communication and Protocol 

Effective, integrated and coordinated communication is integral to our goal of building a better, more prosperous, and healthier future for Islanders.  

Currently, there is no framework to guide effective government communication and citizen engagement.  

Our government will create an improved, more effective government communication mechanism to foster a climate of meaningful participation and engagement with citizens.   

The people have a right to access timely, consistent, and accurate official information, particularly, information related to government programmes, projects, and services. 

 

Funding has been made available to create a Communications Directorate to manage government communications and citizen engagement. 

 $655 thousand will be spent to hire five persons in key roles to augment existing positions and purchase equipment and tools.  

 

Mr. Speaker, we will expand and improve the offerings of the Protocol Division with new recruits this financial year. 

An efficient protocol unit is important to foster goodwill and seamless coordination of events for dignitaries visiting the Turks and Caicos Islands.  

It is also important as we liaise with members of the diplomatic communities both regionally and internationally.   

 

  1.  Illegal Settlements 

$2.0 million has been allocated to address unlawful settlements and a further $2.0 million to offset legal costs for arbitration.  

The large number of illegal structures are morphing into shanty towns.  

If these illegal settlements move close to resort developments, this could tarnish our tourism brand and drive down property values. 

 

Subvention Support 

Subventions totalling $34.6 million have been approved for the National Health Insurance Plan (NHIP). The subventions will cover costs for the treatment abroad programme, utility charges for the two major hospitals, and health care costs for the juvenile and the indigent population.   

This is in addition to a projected income of $39 million from contributions.  

The allocation to pay for the infrastructure of the two major hospitals is $22.8 million.   

 

Other subventions for Statutory and Constitutional Bodies represent $27.5 million (7%) of recurrent expenditure.   

There are significant increases for this financial year over last year:  

  • Gaming = $2.3 million, an increase of $700 thousand 
  • Integrity Commission = $2.8 million, an increased $500 thousand  
  • Invest TCI’s subvention moves to $3.3 million, an increase of $500 thousand   
  • Community College subvention has increased to $6.3 million an increase of $1.4m 
  • National Trust increases by $100 thousand to $588 thousand  
  • The Sports Commission gets a 10% increase, moving from $2.8 million to $3.1 million  

The Government will also spend the following: 

  • $250 thousand for tertiary scholarships for Civil Servants in an effort to reduce the number of imported skills 
  • $10 million for property acquisition 
  • $5 million for Urgent and Unforeseen events (contingency Fund)  
  • $2.5 million for maintenance of government infrastructure  
  • $1 million for environmental remedial work programmes 
  • $1 million CDB Conference – I will explain more on this important conference later in my presentation  
  • $250 thousand to support Trade. This is the first time we have allocated money to support Trade promotion and the marketing of items made in the TCI.  Stakeholder engagement will be a priority as we craft a new trade policy and trade facilitation initiatives.   
  • $250 thousand Legal fees for the critical airport expansion  
  • $250 thousand Faith-based organizations  
  • $600 thousand Beach Access  
  • $650 thousand Maintenance for Parks  

ONGOING AND NEW PROJECTS FOR FY 2022/23 

Mr. Speaker, we have so many new and ongoing initiatives in this financial year. I will not be able to go through them all.  

The Hon Premier and Ministers will give more details on the various projects and initiatives within their respective portfolios. 

We have ongoing projects valued at approximately $139.5 million that are carry over projects.  

They include: 

  • Construction of the new primary school in Providenciales 
  • Basketball courts on all islands 
  • Lights on the Parade Ground 
  • The complete resurfacing of the national stadium with a new synthetic rubber track and new natural grass infield  
  • The Grand Turk Sports Complex and Shelter 
  • The Schools Infrastructure Project phases 1 and 2 
  • Reconstruction of the Prison Block and other Prison upgrading works 
  • Upgrading the water storage and distribution facilities 
  • A shelter for victims of domestic violence 
  • Reinstatement of Government buildings on all islands 
  • Road Development phase 5 in Blue Hills and Five Cays which includes paving, construction of new drainage systems 
  • Backup Generators for all islands 
  • In North Caicos, over 2 million dollars is being spent to upgrade and resurface roads  
  • Construction of the Blue Hills Craft Market 
  • Reconstruction of Canals in Salt Cay and South Caicos 
  • Installation of City water lines in Wheeland, Blue Hills and Long Bay 
  • Construction of the road in relation to the Promenade 
  • Ambulances for all islands 
  • Refurbishing of the DECR office building in Providenciales  
  • The NJS Francis Building is being refurbished and upgraded 
  • We are rebuilding the burnt-out Yellow Wing block at the Department of Correction. This new block will have improved facilities and security measures 
  • We are renovating and upgrading the Grand Turk Cruise Vendors Market 
  • The Grand Turk Youth & Sport Community Centre and the Grand Turk watersports boat ramp are under construction 
  • In Provo, the work on a state-of-the-art government complex continues 
  • Construction is in the final stages on new two storey classroom block for the Enid Capron Primary School 
  • Work continues at the Technical Block, Raymond Gardiner High School 
  • Phase 2 of Thelma Lightbourne Primary School has commenced 
  • The much-needed renovation and upgrades to the Leeward Palms Green Fitness Park have started 

 

Mr. Speaker, the investments we are making are designed to improve the lives of our people. 

We believe that our best investments are in the development and wellbeing of the people we are so blessed to serve. 

 

And! We are not done! 

 

In this 22/23 Financial year, we are allocating $33.2 million to new projects. 

These include: 

  • Acquiring a mobile police station, police boats and refurbishing the Grand Turk Police Station. 
  • The creation of a Judicial Complex in Providenciales and furnishing the newly commissioned Magistrate’s Court in North Caicos. Suitable premises are being sought in South Caicos for a Magistrates Court. 
  • Refurbishing the Port Authority office in Grand Turk and providing equipment and furniture for the Customs office and warehouse in Grand Turk. 
  • Over $4 million has been allocated to purchase and install a 1-million-gallon Saltwater Reverse Osmosis Unit and build a 1-million-gallon capacity Glass-Fused to Steel water storage tank for Grand Turk. Our people must have access to clean and reliable water. Once new pipes are installed and online, we expect all water problems throughout the Island will be alleviated. 
  • We are installing Smart meters which will allow for remote and more accurate readings. 
  • Building New Primary Health Care facilities for the islands of Providenciales and Grand Turk. 

 

Mr. Speaker, we are determined to have a system of roads that are well maintained and able to support the economic, social and security needs of our country.  

  • We have commenced the Transportation Masterplan, to develop for the first time a comprehensive plan for the upgrading and development of our transportation network across all islands.  
  • We have allocated $5.65 million for Highway and Road improvements.  
  • Remedial works to ponds and bridges costing over $2.75 million will begin soon. 
  • Improvement of drainage systems will cost-$5.6 million. 
  • Construction of the TCI regiment Training Academy at a cost of $2 million. 
  •  Construction of the PWD Mechanical Workshop/Storage for Government Vehicles will commence on Grand Turk. 
  • Construction of the Vendors Market at Sapodilla Bay in Providenciales will begin in the months ahead. 
  • The enhancement and expansion work to the Local Vendor’s Village in Grand Turk will begin shortly.  
  • Preparatory works for the construction of Community Clinics in Bottle Creek, North Caicos and Grand Turk will begin soon. 

 

AIRPORTS and PORTS 

Mr. Speaker, the Providenciales International Airport is critical to the growth and development of these islands. We are spending over $12 million to repair and retrofit critical areas of the existing terminal building.  

This includes a canopy for the protection of disembarking passengers, improvement to the traffic flow and a better user experience.  

That will not be enough. We have outgrown those facilities due to the high passenger traffic. 

  

PORTS 

Good port facilities on all islands are a critical component of the development plans for the TCI. 

Over $65 million is earmarked for the development of Ports over the next few years, including ongoing projects and ones under appraisal.   

We are very pleased with the management and progress on the port development projects.  

The Hon Premier will address the broader issue of transportation including the expansion of the airport and ports and how these will support our long-term economic development. 

 

Mr. Speaker, for our people it has been a long two years. Our Ministry of Health which bore the brunt of the Covid 19 fight is now:  

  • Restoring normalcy to healthcare delivery and public health system. 
  • Conducting an actuarial assessment of the Benefits Package to better inform the National Health Insurance Plan on the Treatment Abroad Policy. And, 
  • Strengthening the National Information Systems for Health (IS4H) in collaboration with the Pan American Health Organization, (PAHO), the World Health Organization, (WHO).  

 

Mr. Speaker, as we approach the hurricane season, the experts are predicting that we will see another above average season with at least 19 named storms and 9 hurricanes.  

They say four of these hurricanes will be category 3 or higher. 

Mr, Speaker, I am sure you will recall the devastation of September 7, 2017, when Hurricane Irma with all her Category 5 fury hit us. The damage to our infrastructure and housing stock was catastrophic.  

But Mother Nature was not done with us.  

Less than two weeks later, Hurricane Maria came close to our Islands, as a Category 3 hurricane with devastating rains. 

Those experiences have spurred us into being more prepared.  

We are establishing a resilient Emergency Communications Infrastructure that will be effective and reliable during a disaster. In any major disaster, the ability to communicate is critical to save lives and protect property. 

  • We are installing a National Fiber Optic cable, which will link the major inhabited Islands via a reliable, robust, high-speed, high-capacity, and high-quality communication solution. It will also provide resilient and redundant connectivity, especially during disasters. 
  • We have installed three mobile towers on the islands of Grand Turk, Providenciales, and South Caicos. They give the Department of Disaster Management and Emergencies (DDME), the ability to communicate on a main and a backup emergency network. The DDME is now connected to the 911 Center and Government departments such as TCI Police, Fire, Medical, Immigration, Tourist Board, TCIAA, NSA, Public Works Department.  
  • We are revamping the Domestic Fire & Rescue Services.    
  • The Climate Resilient Coastal Protection & Management Plan will outline clear ways to reduce the effects of rising sea water and coastal erosion in Grand Turk, Salt Cay and Providenciales. The objective is to develop structures, soft and hard, to protect the coast of each island.  
  • We are implementing the National Physical Development Plan which will mandate orderly development, sustainable construction practices and resourceful land use.  

 

COVID WORKS PROGRAM  

We are delivering on our promise to create employment for persons throughout the TCI, affected by the pandemic and economic fallout. 

 

Phases one and two focused on community cleaning and beautification projects, such as the removal of derelict vehicles, sidewalks, and kerbs.  

 

We have allocated $1 million for General works programme to succeed the COVID Works Programme. 

 

As we seek to provide appropriate and adequate shelter for everyone on these islands, the Housing Department has concluded stakeholder engagements and the National Housing needs survey.  

 

The final document will be presented to the Cabinet by end of April followed by Public Consultations in May.  

 

Mr. Speaker, as we seek to dispense justice swiftly and fairly, trained Mediators are now handling cases referred by the courts. 

We have started the process to create a vibrant agricultural sector which will help us cut food import costs and strengthen food security across the islands. 

The “Growing TCI” campaign continues and with a new Director on board who knows the lay of the land. We should have a comprehensive National Agricultural Development Plan and Food Production Programme in short order.  

The Office of the Premier and Public Policy is being revamped and will focus on the Strategic Planning and Policy Unit, the Communications Directorate, matters relating to the management of the Legislative Agenda as well as Protocol. 

$3.375 million will be spent to transform this Office to drive efficiency throughout Government and manage the strategic priorities of the public sector.  

 

The Honourable Premier in his capacity as Chairman of the Caribbean Development Bank will along with the Governor host delegates from the Borrowing Member Countries in the TCI from June 1 to 16. 

 

It is the 52nd Annual Board of Governors Meeting which is the bank’s highest decision-making forum.  

The Government of the TCI has appropriated $1 million towards conference expenses.  

 

CONCLUSION 

Mr. Speaker, last year the Hon. Premier told the country that this is “The People’s Term”.  

Every one of us on this side is single-mindedly locked into the goal of delivering opportunities and prosperity for Islanders. 

 

Mr. Speaker and members of this Honourable House, from my reporting today, you can see that this government is fulfilling the promises we made in The People’s Contract.  

 

We have kept our word. We have kept faith with the people. 

Let me remind you that the top ten allocations in this budget tell a story.  

It is a story of an administration that is focused on People, Opportunity, and Prosperity. 

Economic Affairs – gets $103.7 million 

Health –$78.9 million or 20-percent of the budgeted expenditure.  Our focus remains on the provision of quality care, including public health and hospital services as well as the promotion of healthy lifestyles.  

Public Order and Safety – gets the third largest allocation of just over $67.3 million. 

General Public Services –$ 62.0 million  

Education – getsa $37.5 million investment.  

Social Protection – $21.2 million for the Home Health and Social Assistance programme. This will help victims of domestic violence and fund pensions and gratuities for Public Servants. 

Environmental Protection – 7.7 million for solid waste, and sewerage management and the protection of our environment and marine life. 

Housing and Community Amenities –$3.8 million for Housing and Community Amenities including water, community upliftment and local government. 

 Defence – $3.2 million for the National Security Secretariat and the Contingent Forces including patrol vessels and motor vehicles.  

Our goal is to facilitate the legitimate flow of people and goods and protect our people from harm. 

Recreation, Culture and Religion – will get 4.65 million to support sports, youth, cultural development and community and religious activities. 

Mr. Speaker, this budget has been casted and crafted to create an economy that works for all… from the man selling fruits on the street, the garbage collector, doctors, teachers, and police officers. 

Every Islander whether you are in Salt Cay, Grand Turk, Providenciales South, Middle or North Caicos, you must have the opportunity to succeed and share in the bounty of our land. 

Everyone who is willing to work hard should be able to own a home, raise your family, educate your children, and put away something for your retirement. 

We still face challenges, but our people know that our country is in a much better place now than it was 14 months ago.  

 

Stop-over arrivals are way up! 

Cruise ships are calling again! 

Construction and real estate are booming! 

85% of adults are vaccinated! 

Covid infections are down significantly! 

Public servants got a raise and a new pension plan! 

We are spending millions on education and health! 

We are investing in disaster preparedness and climate change resilience! 

We are preparing our people! 

We are creating the opportunity! 

We are beginning the transformation of this economy so that all our people will have a taste of prosperity! 

We must not lose sight of the goal! 

We must remain resolute! 

We must remain united and confident as we go for growth and development! 

The economy must work for all! 

It must center around People, Opportunity, and Prosperity! 

There is a renewal of energy among our people. 

Hope, optimism, and confidence have replaced fear and hopelessness.  

 

A future that is bright and prosperous beckons.  

Let us grasp it with both hands. 

May God continue to order our steps and bless all of us and our beautiful by nature Turks and Caicos Islands.