Portia announces massive housing plans
Prime Minister, Portia Simpson Miller, this afternoon announced a raft of measures designed to make more Jamaicans homeowners, ranging from reduced mortgage rates to free houses.
She was making her contribution to the budget debate under the theme 'A Mission with a Vision.'
The Prime Minister announced that the National Housing Trust will be granted tax-free status for the next two years, and the agency is expected to use the tax break to help some of its most vulnerable contributors.
She noted that more than 55 per cent of NHT contributors earn less than $10,000 per week and she said the NHT will be introducing a number of initiatives to help this vulnerable group.
She announced that as of this month housing grants of $1.2 million each will be allocated daily for qualified walk-in applicants on a first come basis.
Simpson Miller said 10 per cent of the total home grant would be reserved for qualified applicants with disabilities.
Simpson Miller also announced a reduction in interest rates come September 1.
And as of September 1, hotel workers who earn $10,000 per week or less and who apply for an NHT mortgage during the next three years will receive a one per cent reduction on current interest rates.
Simpson Miller said the one per cent interest rate reduction for public sector workers, which was originally due to expire on March 31 next year, has been extended to March 31, 2015.
The Government will collaborate with Food for the Poor to provide 1,200 housing units each year for the next five years free of cost to poor households.
She also announced another initiative aimed at providing housing solutions for NHT contributors who earn between $5,000 and $7,000 per week.
Meanwhile, the NHT is to build three new developments in St. Thomas, Manchester and Clarendon.
Simpson Miller says subsidies for these will be announced at a later date.
JA.Gleaner
Back to drawing board in TNT
A FRESH crime plan is expected to be drawn up to deal specifically with the rising murder rate as National Security Minister, Brigadier (ret) John Sandy has called in Deputy Commissioner of Police Mervyn Richardson to an emergency meeting.
In a written response to a written question asking if he was concerned about the rising murder toll, which up to yesterday was 177, Sandy said: “I am abhorred by this development and have today (yesterday) spoken with Deputy Commissioner of Police Mervyn Richardson with respect to new concepts of crime fighting applications with particular concentration on gang activity and homicides. We have to; we must arrest this upsurge in criminal activity and we must do so soon!”
Sandy gave this response to Newsday while he was in the Senate which yesterday debated a request by Government for an additional $1 billion in its 2011/2012 Budget, at Tower D, International Waterfront Centre, Port-of-Spain.
Sandy further stated in his response note that he would be raising the issue at the weekly stakeholder “crime team meeting” between himself, Comm-
issioner of Police Dwayne Gibbs, Chief of Defence Staff Brigadier General Kenrick Maharaj and other heads of the various branches of national security.
Speaking with Newsday yesterday, Richardson confirmed that he has been in communication with Sandy. Richardson too expressed his concern over the number of killings particularly over the past weekend in which eight persons were murdered.
And while Richardson was not prepared to speak on any new crime plan he said he wanted to assure the nation the police remain committed to protecting citizens and property.
“The incidents which happened over the weekend are regrettable, but rest assured proper investigations are being conducted into each and every incident. That said, over the past month, we have been trying different strategies and doing different things, which I cannot elaborate on at this point, in our efforts to combat crime.
“While at the moment, I can say we are not satisfied with the results so far, I can assure the public that we are committed to their safety and bettering our strategies to bring the current situation under control. Each night and each day we are forming partnerships with various utilities such as the army and members of the Customs and Immigration division and are working as a team, with the view of bringing this situation under control,” Richardson explained. President of the Police Social Welfare Association Sgt Anand Ramesar, was more scathing when asked to comment. He was critical of the leaders of the police service and called on Gibbs to resign in light of the increasing crime rate.
“This is not something the police service can be proud of. The Commissioner of Police has failed this country. It is my belief that he has misled citizens into believing he has a handle on crime...but the statistics show otherwise.
“If Gibbs is true to his word, he would recognise that he has failed and should resign with immediate effect. We need a commissioner with fresh ideas and thoughts which are relevant to the culture of this country and the type of criminality which exists in this region. We are not interested in any old tricks,” Ramesar said. Gibbs is a Canadian-born officer brought in on a three-year contract.
However, he too suggested that if the police were to combat the increased crime rates, the service would need to re-strategise policies.
“It is the association’s view that the recent surge in homicides is very disappointing and very sad for Trinidad and Tobago and that the police service and by extension our leadership needs to recognise that the way we are doing things is not having the desired outcome.
“We need to re-strategise...we need new plans and new ideas. If anything is clear from these past two months, it is that the 21 century policing programme is not having the impact in crime that we wanted it to. And this is clear, because it has been a little over a year since the programme was launched, yet we have had ten murders in four days,” Ramesar said.
Former ministers battle on foreign cash donation to PM
A former minister, who served in the previous NDC government of 1990 – 1995, is completely supportive of current party leader, Prime Minister Tillman Thomas, in the receipt of money from an overseas donor.
“I believe the Prime Minister,’’ said Phinsley St. Louis, who was referring to a statement from the Prime Minister’s Office (PMO), in which Thomas admits to receiving US$50,000 into the leader’s personal account from “a friend of Grenada’’ whose “corporate residence is the British Virgin Islands.’’
However, St. Louis said that if it turns out that Thomas made a false statement in the matter, “he should demit office immediately and call fresh elections and don’t contest.’’
The money transfer has become a hot political topic since allegations were first made last month by the main opposition New National Party (NNP) and denied by Thomas.
NNP leader and former Prime Minister, Dr. Keith Mitchell, claimed that a top government minister had received US$150,000 from a source in Saudi Arabia.
Last week’s PMO statement said that Thomas, as leader of the National Democratic Congress, had received US$50,000 from the BVI.
“At every stage, it was the understanding and belief of Prime Minister Thomas, that these funds were intended to assist the NDC and for no other purpose,’’ the statement said.
St. Louis, who describes himself as a “founder’’ of the NDC, said he has a document to corroborate the Grenadian leader’s story and challenged the opposition to reveal their evidence of a US$150,000 donation from Saudi Arabia.
St. Louis, a former Minister of Works, said if Dr. Mitchell cannot present any evidence to back his allegations against Thomas, the opposition leader would be showing that he is not truthful and should not contest the next general election.
“Someone is telling a lie and I am saying it is not the prime minister,’’ St. Louis told broadcaster Lew Smith, host of GBN’s Monday night television program, Beyond the Headlines.
St. Louis and Kenny Lalsingh, an NNP member and former government minister, were the program’s guests.
Lalsingh accused St. Louis, who said he has “no problem’’ with the money transfer, of trying to cover up.
He questioned whether the money has been transferred from the prime minister’s personal bank account to the NDC’s; and whether the funds are linked to a proposed economic citizenship program of government.
By his action in the money transaction, the prime minister has put his reputation on the line, Lalsingh said.
“I’m sure the prime minister must be regretting that he allowed it to happen that way,’’ said Lalsingh. “The prime minister has lost credibility.’’
SPICE
Australia's economy expands more than expected
Australia's economy expanded more-than-expected in the first three months of the year allaying fears of a global slowdown hurting its growth.
Growth was 1.3% during the period from the previous three months. Analysts had projected a 0.5% expansion.
Compared with the same period last year, the economy grew by 4.3%.
There have been fears that slowing global demand for commodities and a stagnant domestic market may hurt Australia's growth.
However, some analysts said that the latest data showed that Australia's economy was well placed to sustain growth.
"The data suggests that even though we are still concerned about the global economic uncertainty, the impact on the Australian economy has been vastly over estimated so far," Michael McCarthy of CMC Markets told the BBC.
Balanced growth
One of the biggest worries about the Australian economy has been that while its mining sector has been booming in recent years, other parts of the economy have not been doing too well.
However, the latest gross domestic product (GDP) data indicated that the trend may be changing.
It showed that sectors such as professional, scientific and technical services and the financial and insurance sectors contributed as much as mining to the overall economic growth.
Household spending also rose during the period, which analysts said was an indication that consumer sentiment remained upbeat.
"The thing that catches my eye is very strong consumption numbers and an unusually large contribution from professional and scientific services," said Matthew Johnson a senior economist at UBS.
'Forward-looking risks'
Despite the encouraging numbers, analysts said that Australia's economy continues to face a threat from global economic uncertainties, especially developments in the eurozone and a slowdown in China's growth.
They said the conditions both in Europe and China had deteriorated since March this year and that may hurt growth going forward.
In China, one of the biggest markets for Australian commodity exports, growth in both the manufacturing and non-manufacturing sectors has slowed in recent months.
Meanwhile in the eurozone, the sovereign debt crisis has worsened, with some analysts even warning that the policymakers have a "three-month window" to save the euro.
On Tuesday, the Reserve Bank of Australia cited these developments as key risks to growth as it announced its second rate cut in as many months.
"It's all about forward-looking risks and Europe is the main source of those," said Michael Blythe chief economist at the Commonwealth Bank of Australia.
However, Mr Blythe added that the latest growth numbers may prompt the central bank to hold back on making aggressive cuts "unless something really does go wrong in Europe".
BBC
EU unveils plan to protect taxpayers from failing banks
The European Commission on Wednesday will unveil new proposals designed to stop taxpayers' money being used to bail out failed banks.
They aim to ensure losses are borne by bank shareholders and creditors and minimise costs for taxpayers.
It wants to prevent runs on banks in one country - such as Spain or Greece - pulling down the entire system.
A key goal is to make sure that essential everyday banking functions - such as cash machines - are kept going.
The global financial crisis has seen a succession of major banks fail, including Northern Rock, Lehman Brothers, leading Icelandic banks, the Belgian-Dutch giant Fortis and Franco-Belgian Dexia and the Republic of Ireland's Anglo Irish Bank.
Banks are currently in the spotlight in Greece and Spain, where the latter is trying to find more than 80bn euros (£65bn; $100bn) to strengthen their capital buffers.
The bank resolution plan forms part of commitments agreed by the leaders of the G20 group of major economies in September 2009.
They would give EU authorities the power to intervene early.
A new mechanism will allow authorities to reduce the claims of unsecured creditors, meaning that shareholders and creditors bear the losses, not governments and the taxpayers that support them.
The changes will not be introduced before 2018.
G7 crisis talks as Spain says borrowing lines closing off
Finance chiefs of the G7 group of industrial nations have held emergency talks about the eurozone debt crisis.
They come amid fresh worries about the eurozone's economy, underlined in data showing that private sector activity, including in Germany, fell in May.
The talks ended without a G7 statement, but Japan's finance chief vowed a "speedy" response to the crisis.
Meanwhile, Spain's finance minister said the credit markets were "effectively shut" to his country.
Speaking ahead of the G7 talks Cristobal Montoro told Spain's Onda Cero radio "the door to markets is not open for Spain".
Worries about the suffering Spanish economy and its ability to service its debts has pushed the cost of its government borrowing on the money markets very close to unsustainable levels.
The teleconference of finance ministers and central bank chiefs came just a few days after US President Barack Obama blamed Europe for slow growth in the US economy.
G7 countries outside the eurozone fear Europe's failure to get to grip with its worsening financial position will be a drag on global recovery.
With mounting concern about Spain's economy, there is speculation that Europe remains split over a clear way forward, especially on whether to launch common bonds to help ease borrowing costs.
But Germany repeated its position that fiscal union must precede the introduction of eurobonds.
Wolfgang Schaeuble, Germany's finance minister, said in an interview with the Handelsblatt newspaper on Tuesday: "The government has always said that before we start talking about joint debt management, we need real fiscal union."
The subject of eurobonds, which would consolidate eurozone debt and reduce the interest rate countries must pay to borrow money, was a divisive issue at a European Union summit last month.
'Three months left'
There was concern that some eurozone countries "have not taken sufficient action yet to address those issues of undercapitalisation of banks and building an adequate firewall", he told the Reuters news agency.
Spain's banking crisis and worries that Greece may be forced to leave the euro bloc have caused panic in the financial markets in the past few weeks. And now there are fears Cyprus may be forced to join Greece, the Republic of Ireland and Portugal in seeking a bailout.
Billionaire investor George Soros told a conference in Italy over the weekend that Europe had about "three months to save the euro", but that leaders did "not understand the nature of the crisis".
Many politicians, officials and economists believe that the creation of eurobonds is the way forward. And in France, Greece and elsewhere in Europe, there appears to be a backlash against austerity measures that many people complain are too severe.
However, Mr Schaeuble repeated Germany's firm resolve on both issues.
And on austerity, the finance minister said that countries must press ahead with budgetary cutbacks. "We cannot spare the affected countries the reform," he told Handelsblatt.
'Trust'
Mr Schaeuble said Spain was doing "everything right" with its reform measures, but acknowledged that the country was under severe pressure because of a rise in borrowing costs.
"We need to manage this... through close and trusting co-ordination," he said.
There were several unconfirmed reports over the weekend that Spain's prime minister, Mariano Rajoy, had been holding talks with European leaders about how to recapitalise the country's banks.
Spanish lender Bankia alone has asked for 23.5bn euros (£19bn) to help repair a balance sheet that has a vast exposure to the property market.
The financial problems come as new data on Tuesday showed that the eurozone's economies appear to be slowing.
The Markit purchasing managers' index fell to 46 in May from 46.7 in April, its lowest level in almost three years. A figure below 50 indicates contraction.
'Weak demand'
German output fell for the first time in six months, while declines in Spain and France accelerated.
The eurozone's private sector has now contracted for four months in a row.
The May figures indicate that "the economy is contracting at the fastest pace for around three years", said Markit's chief economist Chris Williamson.
"Companies report business activity to have been hit by heightened political and economic uncertainty, which has exacerbated already weak demand, both in the euro area and further afield."
Clico policyholders may sue PM—Ramesh
Senior Counsel Ramesh Lawrence Maharaj says the United Policyholders Group will consider suing Prime Minister Kamla Persad-Bissessar and members of Cabinet if they fail to withdraw the June 30 deadline for acceptance of Government’s Clico bailout plan. Maharaj, who represents the group, made the statement in a press release yesterday.
He said if it was not withdrawn, his clients would consider making a claim against the ministers for punitive damages for misfeasance in public office. Maharaj added: “Consideration would be given to seek an order of the High Court to rule that the June 30 deadline does not apply to the relevant Executive Flexible Premium Annuity (EFPA) policyholders and in particular on whose behalf the judicial review claim has been filed.”
On April 19, Justice Joan Charles, who is presiding over the policyholders’ case, granted them leave to apply for judicial review against Persad-Bissessar and members of the Cabinet. In their application, the group’s attorneys contend that promises made by the previous administration in 2009 amounted to a guarantee that policyholders would be paid sums which were held in the cash-strapped conglomerate.
The policyholders claim the current plan is irrational and unreasonable and the Government’s actions were illegal and a violation of their legitimate expectations. The substantive matter will be litigated before Charles on November 21 and 22. Maharaj, in his four-page release, cited Justice Charles’ order as one reason for abandoning the June 30 deadline.
He said it was the Government’s duty to allow policyholders to litigate their rights in the courts without feeling threatened to take up the offer by the deadline. “If the deadline is not withdrawn, policyholders would believe Government is practising a form of blackmail against them to force them to abandon their legal rights and take up the offer,” Maharaj said.
As part of the lawsuit before the courts, the group sought documents, including a valuation of Clico’s assets, assets in Clico’s Statutory Fund and the money received from the sale of Clico’s assets. The group is expected to receive these documents before the next hearing of the case in November.
DIGICEL GROUP LIMITED announces strong financial results US$1.1 billion EBITDA for the year ended 31 march 2012
Digicel Group Ltd, the best value mobile operator, today announced a strong set of financial results for the year ended 31 March 2012.
With subscribers up 27% to 12.8 million and revenues for Digicel Group Limited (which comprises 30 markets in the Caribbean, Central America and the Pacific) up 14% to US$2.54 billion, EBITDA margins remained steady at a robust 45%.
The company posted EBITDA of US$1,082 million – up from US$954 million in the previous year – representing a year on year increase of 13%.
Value Added Services and data revenues were up an impressive 47% year on year and now account for 20% of overall service revenues. This growth was supported in part by Digicel’s 4G Mobile offering which is now available in 14 markets across the globe (with further rollouts planned) and by the rise in smartphone usage. The Diaspora business meanwhile saw its revenues grow by 28% year on year.
Digicel’s balance sheet and liquidity position has continued to improve with cash reserves of over US$657 million at 31 March 2012. The Group’s strong financial performance has been endorsed by ratings agency, Fitch, which in May reaffirmed the Group’s debt rating citing its “strong operational performance”.
Commenting on the performance, Digicel Group CEO, Colm Delves, said; “I am pleased to report that Digicel has closed out another strong year in which, for the first time in our 11 year history, our annual EBITDA was over US$1 billion. With 12.8 million subscribers across 30 markets, Digicel has delivered 14% revenue growth placing us at the leading edge of performance amongst telecoms operators worldwide.”
He continues; “I would like to take this opportunity to thank our customers for their loyalty to Digicel and our partners and staff who always go the extra mile to ensure that our customers benefit from what we do and how we do it.”
Denis O’Brien, Chairman and Founder of Digicel Group, commented; “The results announced today reflect the continued growth and development of Digicel in the Caribbean, Central America and Asia Pacific. The success of Digicel is due to the commitment of a very strong management team and workforce whose sole focus is on the highest standards of service delivery in all markets.”
Key achievements include:
- Rollout of 4G services based on HSPA+ technology in 14 markets – Aruba, Bonaire and Curacao, Barbados, Cayman Islands, Dutch Caribbean, Fiji, Haiti, Papua New Guinea, Samoa and Vanuatu
- Acquisition of Voila in Haiti and the completion of the acquisition and integration of Claro in Jamaica
- Spearheading a US$16 million “Fibralink” extension that will connect Haiti to the global economy through broadband services from July 2012
- Ongoing positive impact on communities by the Digicel Foundations – with a total of US$25 million invested in community projects in Haiti in the five years of the Foundation’s existence and a commitment to building a further 80 schools by the end of 2013, in addition to the existing 70 already opened; the completion of 52 projects in the year which have positively impacted over 25,000 people in Jamaica and the funding of 53 infrastructure projects in Papua New Guinea in the year (more than double the previous year).
Digicel’s investment across its 30 markets worldwide totals US$4.5 billion and the company employs over 4,700 people worldwide.
Wisconsin Governor Survives Recall Vote
Republican Governor Scott Walker of Wisconsin has defeated his Democratic opponent in a recall election that observers say has implications for the November presidential election.
With nearly all the votes counted, Walker was easily beating Milwaukee Mayor Tom Barrett by nearly a double digit margin in a race which attracted huge voter turnout. Barrett, who lost the 2010 general election to Walker, conceded the race hours after the polls closed.
Shortly after taking office, Walker pushed through a law that sharply curtailed the right of most government employees to bargain for pay raises and other benefits, angering unions and Democratic activists. The law set off days of large angry protests at the state capitol in Madison. A grassroots campaign earlier this year gathered nearly 1 million signatures in a petition drive to force the recall election.
In his victory speech, Walker told his supporters the voters of Wisconsin approved of his leadership.
“What has made the United States of America arguably one of the greatest countries in the history of the world, is that in times of crisis, be they economic or fiscal, be they military or spiritual, in times of crisis, what has made America amazing, has been the fact that throughout our history, throughout the more than 200 years of our history, there have been men and women of courage who stood up and decided it was more important to look at the future of their children and their grandchildren than their own political futures.”
Walker is the first governor in U.S. history to survive a recall election. Two other governors lost their recall elections, the most recent in 2003, when California Governor Gray Davis was unseated and replaced by Hollywood action star Arnold Schwarzenegger.
Republican Lieutenant Governor Rebecca Kleefisch and three Republican state senators also survived recall campaigns waged against them. Democrats had hoped to pick up at least one of those Republican seats to give them control of the chamber.
The recall effort attracted money and attention from Republican and Democratic supporters across the country. Walker raised $30 million to fight off the recall, compared to Barrett's $4 million.
Likely Republican Party presidential nominee Mitt Romney issued a statement congratulating Walker, saying the results will “echo beyond the borders of Wisconsin.”
Incumbent Democrat Barack Obama easily won Wisconsin in the 2008 presidential campaign, but analysts say a Walker victory could mean that Romney could take the state in November's general election.
Morocco: Solar-Powered Plane’s Arrival Boosts Solar Energy Industry
Morocco has praised the arrival of a solar-powered plane that flew from Madrid, Spain, to Rabat, marking the world's first intercontinental flight by a manned aircraft operating without liquid fuel.
The Solar Impulse plane completed the 830 kilometer journey late Tuesday, landing at Rabat's international airport after taking off from the Spanish capital 19 hours earlier. The plane's lone pilot, Swiss adventurer Bertrand Piccard, smiled as he emerged from the small cockpit to be greeted by members of his team and Moroccan authorities.
He said the plane's crossing of the Gibraltar straight separating Europe and Africa was a “magical moment” that represents one of the “highlights” of his career.
Organizers chose Morocco as the destination for the unprecedented flight to highlight the North African nation's plan to build the world's largest solar power plant. The head of the Moroccan Agency for Solar Energy Mustafa Bakkoury welcomed Piccard at the airport and said Morocco shares the pilot's message about the importance of renewable energy.
“Solar energy is no longer restricted to the scientific world but is become an (integral) part of daily life,” Bakkoury said.
He said Morocco plans to start building the solar power plant in the south-central city of Ouarzazate in 2014. The plant is part of a Moroccan effort to reduce the nation's dependence on fossil fuels and produce 2,000 megawatts of solar energy, by 2020.