Australia floods: PM Julia Gillard unveils new tax
Australia's Prime Minister Julia Gillard has announced a new tax to help pay for devastating floods that she says will cost A$5.6bn ($5.6bn; £3.5bn) in reconstruction.
Ms Gillard said the 12-month tax, starting from 1 July, would be levied on those earning A$50,000 or more, and those affected by floods would not pay.
"We should not put off to tomorrow what we are able to do today," she said.
More than 30 people have been killed since flooding began last month.
"The Treasury's preliminary estimates are that GDP growth in this financial year will be about half a percentage point less due to the floods," Ms Gillard said.
"The best preliminary estimate of the direct cost to the federal budget of the summer's flood disaster is A$5.6bn."
As well as the tax, cuts to government spending will help meet the reconstruction bill.
The BBC's Nick Bryant in Sydney says Ms Gillard has faced criticism for her handling of the floods and has been overshadowed by Queensland's Premier Anna Bligh.
Ms Gillard will be hoping this reconstruction programme will also help rehabilitate her image, he says.
The new tax will charge an extra 0.5% on those earning A$50,000-A$100,000 and 1% more on those earning more than A$100,000.
It is expected to raise about A$1.8bn.
Ms Gillard said that ''in a growing economy, we pay as we go" and said deferring the costs was a "soft option" she was not prepared to take.
Large parts of Queensland, the eastern seaboard and Victoria have been inundated by flooding.
Agriculture, mining and transport infrastructure have been badly hit, along with the massive damage to private homes.
In Victoria, a swathe of floodwater described as an inland sea is still creeping slowly across the south-east of the state, with several communities braced for flooding.
''The great floods of this summer have been a national tragedy, not just a natural disaster because of the awful loss of human life," Ms Gillard said.
She said there would be an immediate payment from the federal government of A$2bn to Queensland, the worst-hit state.
Unemployed Australians who wanted to relocate to reconstruction jobs there would also receive financial support, she said.
Ms Gillard is also delaying or cutting infrastructure projects to save about A$675m and cutting back on spending programmes to save further costs.
These include a number of environmental programmes, including green car and energy initiatives.
The prime minister must get the tax through parliament and as she relies on minor parties and independents in both houses, she faces a tough task given that the main opposition is opposed to the levy.
The Greens said they supported the new tax but added that it "beggars belief that the government would choose to cut climate change" measures.
Opposition leader Tony Abbott, meanwhile, said he opposed the tax and warned that victims of the floods would end up paying.
"This is another government spending programme for which no-one is going to be held accountable if things go wrong," he said.
Microcredit in Bangladesh 'helped 10 million'
Microcredit lifted 10 million Bangladeshis out of poverty between 1990 and 2008, according to a report.
The work of Grameen Bank and others helped many families to raise their income above $1.25 a day, said the US-based Microcredit Summit Campaign.
The report drew on a survey of more than 4,000 households by the Economic Research Group in Dhaka.
Microcredit works by providing small loans to people to invest in generating their own incomes.
Alex Counts of Grameen Bank said: "This survey reminds us that even in difficult circumstances, major progress can be made."
Floods in 1998 and the food crisis of 2008 caused millions of families to fall below the $1.25 threshold.
However, even with these setbacks, nearly 10 million people rose above the poverty level.
But Dr Qazi Kholiquzzaman Ahmad, the chairman of PKSF which loans money to microcredit agencies in Bangladesh, says that his studies in 2006-2007 showed that only 7% of micro-borrowers were able to rise above the poverty line.
"Many borrowers remained where they were, while others suffered setbacks," he told BBC World Service's World Business News.
"In this latest study, only 10% of people have moved up, leaving the other 90% where they are. We cannot conlude that a whole lot has been achieved," he added.
This news comes at a time when microfinance has come under close scrutiny over recent months.
Serious charges emerged about microfinance borrowers taking on multiple loans and too much debt.
Coercive collection practices by microfinance staff, and even suicides among borrowers who were unable to meet their payments.
India's multi-billion dollar industry was on the brink of a mass default until all the major banks in the country agreed to continue lending to microfinance firms.
The evidence for microcredit lifting people out of poverty remains highly contested.
"Bangladesh is the capital of microcredit being used to tackle poverty," said Alun Doran at Oxfam, "but the numerous studies about its effectiveness are conflicting."
He said there was a distinction between poverty alleviation and poverty reduction.
Poverty alleviation involves mechanisms which can help people get out of poverty - and stay out.
"Secure savings are the preferred financial instrument rather than credit," Mr Doran maintained.
Credit Unions hard hit by economic downturn
The current economic environment is taking a serious toll on credit unions as more members face lay-offs and find it difficult to pay their loans on time.
This was revealed by Central Bank Governor Ewart Williams, during yesterday’s launch of the Co-operative Credit Union League’s calender of events at Crowne Plaza, Wrightson Road, Port- of-Spain.
Williams said data suggests that delinquency ratios went up significantly in 2010.
“Many credit unions have not been vigorously addressing delinquency, through adequate provisions, and writing up bad debts,” he said.
He said some credit unions have not recognised the importance of provisions, or still may not know how to provision.
“In some cases it is not clear whether the Board is aware of the problem. Dividend payments are coming out of reserves. If all of this is correct, it is not good financial management,” Williams warned.
Williams in referring to the Clico situation said over 60 credit unions had investments close to $800 million in Clico.
“For some credit unions, the impairment of these investments could threaten their viability. That suggests the management of these unions may not have properly assessed the credit and investment risks, and through insufficient portfolio diversification almost compromised the viability of their organisations,” he said.
He advised that financial literacy should be at the top of the sector’s agenda.
“The Clico crisis underscores the rapid pace of financial innovation required that financial institutions contribute to providing more information, and more financial education to the consumer public,” he said.
Williams noted that the Bank had no intention of stymieing the growth of the sector, or closing down credit unions that do not meet its credential requirement.
Source:Newsday
St Kitts-Nevis Development Bank committed to funding small and medium projects
When the European Investment Bank extended a new line of credit to the tune of US$8 million to the Development Bank of Saint Kitts and Nevis last December, its official observed that the local bank not only commands a leading position and expertise in small and medium sized enterprises financing, but also had the ability to offer technical assistance to its clients.
“Traditionally the Development Bank has always supported small and medium sized enterprises, and we felt honoured when the European Investment Bank recognised that fact,” said the bank’s general manager, Lenworth Harris. “What makes our efforts even more appealing is the fact that we not only support the urban-based projects, but also rural-based projects.”
A support officer with the Development Bank’s Business Support Unit, Kenja Morton, in confirming the general manager’s statement, is of the opinion that no country can achieve meaningful economic development if the rural areas are left out.
As a result, her unit at the bank has ensured that small and medium sized entrepreneurs who are based in rural areas are given special attention. It was for that reason that the bank assisted Maxime Isaiah to open a gift shop on Main Street, Sandy Point.
Isaiah attended the Sandy Point High School and joined the CFBC where he studied electronics. In 1999 he got a student’s loan from the Development Bank to attend the Lindenwood University in Missouri where he finished in 2004 armed with a bachelor’s degree in studio arts with emphasis in multimedia, ceramic sculpture, painting, drawing, graphic design, photography and illustration.
“Since growing up I always loved arts - I was always into arts, I used to always design,” said Isaiah. “For example when I attended high school while still in second form, I used to design for students in fifth form for CXC. I graduated from the Sandy Point High School in 1995.”
He went to Lindenwood University to study electronics engineering technology, but after a month of education he found out that the university had an arts institution and a programme for arts. Since he always wanted to do arts, he went to his advisor and told him that he wanted to switch.
Since his return from university, and apart from his regular job, he also does photography, graphic designs, and illustration
“For example if somebody wants shirts printed, or they want banners designed I can design them; I can do the illustrations to put on shirts, I can also do trophies – so if you need awards like for a queen show, track and field events I can do that too. I buy the components and put them together,” he said.
With a loan from the Development Bank in 2006, he was able to open the gift shop, Smokey’s Solutions, which he says people call a studio, because he has a well equipped studio where he takes pictures. But he does more than take pictures at Smokey’s Solution.
“The loan was a great help because I was able to get some of the machines that cost over US$9,000 and that does not include shipping, handling, and customs,” observed Isaiah. “Through the Development Bank I was able to get the money to buy the equipment and be able to bring them into the country.”
While business traffic cannot be compared with that of Basseterre, he has no regrets operating from the smaller town of Sandy Point. He is contented that he is able to save the people of Sandy Point unnecessary trips to Basseterre to buy gift items or have their pictures taken during occasions like birthdays, or graduation ceremonies and he thanks the Development Bank for having confidence in business persons living in the rural areas.
“I have never had a problem getting a loan from the Development Bank and as far as I am concerned, my future is secured,” said Isaiah. “The first loan I took is the same one that I used to buy the crystal machine and I bought stock. I got a second a loan where I upgraded the studio because everyone is going digital and I did not want to be left behind.”
The bank does not only give loans, said Morton. It assists the clients complete their business plans, or advises those who already have the business plans if their businesses would be viable and advise them on how to improve it.
Once the loan amounts have been released, the bank then monitors the project on a regular basis, a fact that was confirmed and hailed by the Caribbean Development Bank when one of its officials visited Isaiah at Smokey’s Solution in September last year.
US to offer amnesty for Caribbean offshore account-holders
The United States said it plans to announce a new amnesty programme aimed at encouraging wealthy Americans with hidden offshore bank accounts in the Caribbean and elsewhere to come forward, declare the funds and pay the necessary taxes.
Internal Revenue Service (IRS) spokesman, Frank Keith, said that the programme would be formally announced "very shortly" and would not offer terms as generous as those put forth in a similar initiative last year.
Senior tax lawyers say the announcement will most likely come within several weeks, ahead of the 2011 tax filing season.
The government wants to encourage people not to lie on their upcoming earnings said Robert Katzberg, a criminal defence lawyer in New York, with offshore bank clients in the Caribbean and Switzerland.
The previous so called voluntary disclosure programme, which ended last October, was carried out amid a crackdown on Swiss private banks and their clients who hid money from the government.
The Jamaica Observer reported that the programme was used by 15,000 Americans with hidden accounts, some holding hundreds of millions of dollars, the IRS said.
It said an additional 3,000 with accounts at various offshore banks, including the Cayman Islands, came forward after the October 15 deadline.
Free movement of persons, but according to our laws, says Barbados PM
Barbados is not opposed to the freedom of movement of persons in this region, Prime Minister Freundel Stuart has reiterated.
He was responding to a number of questions concerning immigration matters on Wednesday at the 185th anniversary luncheon of the Barbados Chamber of Commerce and Industry.
Stuart said, "We have had to make the point that because we are committed to freedom of movement, because we are committed to the realisation of a single market and economy, it does not mean that you give up your sovereignty as a nation. And it certainly does not mean that you turn a deaf ear or a blind eye to issues of national security."
The prime minister added that the immigration laws of Barbados have not changed, rather, "all we ask is that the immigration laws be obeyed".
He pointed out that whenever the freedom of movement topic was discussed, it was cited as the "issue that defines the realisation of a Caribbean Single Market and Economy".
Stuart observed, "The right for people to move freely, if you have that, you have a Single Market and Economy... Now freedom of movement is organically linked to the issue of reliable and affordable regional transportation.
“There is no really reliable and nowadays very affordable reasonable transportation. But the government that is responsible for transportation within the Cabinet of the Heads of Government of CARICOM is not asked any questions about that."
He continued, "Barbados has lead responsibility for the Caribbean Single Market and Economy, so when no progress is being made on that issue, or when it appears that no progress is being made on that matter... or that there have been a few potholes or a few zigzags on that issue, you hear that CSME, for which Barbados is responsible, is making no progress."
However, he stressed that it was first essential to ensure that all of the elements that involved creating a Single Market and Economy were in place before anyone "could point an accusing finger at the Barbados government".
The prime minister added with respect to the free movement of individuals that laws had to be put in place to ensure that even though people are moving, their movement was "consistent with national security and all the other national interests of Barbados".
Former Court of Appeal judge sues St Lucia government for retirement benefits
Former Eastern Caribbean Court of Appeal Judge, Denys Barrow, has filed a claim against the government of St Lucia for his retirement benefits.
Barrow, a Belizean, said in a statement that he was forced to file a claim against the government of St Lucia because it has been ignoring his claim, and even failed to acknowledge receipt of letters of inquiry.
In his statement, Barrow said that after his resignation he returned to his homeland Belize and started a private practice. He said that he later decided to leave private practice and become a judge in Belize because he treated the expected pension benefits as part of his financial resources.
He added that now that expectation has been removed he has been forced to resign as a judge of the Court of Appeal of Belize.
Barrow, who is the brother of Belize prime minister, Dean Barrow, to the surprise of attorneys and judges tendered his resignation to Governor General Sir Colville Young on Tuesday, less than 18 months after he was sworn in.
He is only 58 years of age and his tenure as an appellate court judge would have ended at the age of 75.
His resignation takes effect on February 28.
The current panel of appellate court judges in the Central American state comprises: Belizean Manuel Sosa, the president; Justices Denis Morrison, a Jamaican, and Dominican Sir Bryan Alleyne.
Guyana will not arrest Suriname president
Guyana's President Bharrat Jagdeo says that his country will not arrest Suriname's head of state, Desi Bouterse, when he visits Guyana.
Jagdeo made the statement in response to a question posed by an officer of the Guyana Defence Force at the opening of the Annual Officers Conference on Tuesday at Army Headquarters in Georgetown.
The Kaieteur News newspaper reported that the question was sparked by recent revelations that Bouterse had links to convicted Guyanese drug lord Shaheed Roger Khan and had clandestinely visited Guyana on several occasions for rendezvous with Khan.
Bouterse, who has been sentenced by a court in the Netherlands for drug trafficking, was returned as president of Suriname last year following general elections in the neighbouring republic.
From all indications, the president's comments were not meant for the ears of members of the media, who were strangely asked to leave the venue during the president's response to the question of how Guyana's relations with Suriname would be affected by the recent revelations.
Jagdeo stated that some time ago Guyana was asked by a representative of a foreign mission in Guyana if the president of Suriname will be arrested when he visits Guyana, on account of him being wanted internationally.
"I said to him no, I said maybe you can get some other countries to do this," the Guyanese president stated emphatically.
He said if the people of Suriname overwhelmingly chose him (Bouterse) as their leader, Guyana should not judge him based on what transpired in the Netherlands.
"Who are we as Guyanese to say we should arrest him?" Jagdeo asked the Army officers.
Since his return to power, Bouterse has officially visited Guyana on three occasions.
Lime cuts top execs
Cable & Wireless Caribbean (C&W) has cut three of its very senior executives and Barbadian vice-president Donald Austin is among them.
In a major shake-up that a C&W official described yesterday as a “realignment of the management team”, the multinational telecommunications company, which trades as LIME, let go of Austin, its executive vice-president with responsiblity for legal and regulatory matters.
The comapany also severed Milton Brady, a Jamaican national who operated from Barbados as the company’s chief commercial officer, and Henry Reid, another Jamaican who was executive vice-president with responsibility for human resources. He operated from the Jamaica headquarters.
All three reported directly to David Shaw, LIME’s chief executive officer who operates from Jamaica. When Shaw was appointed in 2009, the British citizen’s main responsibility was to “lead the strategy to transform the Caribbean business”.
The DAILY NATION was informed that all three executives received “handsome” separation packages.
Austin, a chartered accountant and engineer, led C&W Barbados during one of its most contentous periods when it had to sever more than 400 workers.
He has been with C&W for more than two decades.
Sources said Austin would still work with the company in an “advisory capacity on Goverment relations and governance issues”.
Austin said in one of his public social network profiles that he “led teams in turnaround environments in four Caribbean islands [Turks and Caicos, St Vincent and the Grenadines, St Lucia and Barbados] for LIME”.
He added: “My particular strength is leadership of high-performing teams, using my finance and engineering knowledge and leadership skill sets to ensure that the best result is achieved for the organisation and the team.
“As a member of the senior leadership team, I have responsibility for strategy, revenue growth, profitability, investment strategy, customer experience levels, employee engagement and motivation, senior talent management, corporate governance, shareholder relations, Government relations, regulatory relations and risk management.”
When contacted yesterday, Austin referred all comments to LIME.
Tunisia: Arrest warrant issued for ex-president Ben Ali
Tunisia has issued an international arrest warrant for ousted President Zine al-Abidine Ben Ali and his family, the nation's justice minister has said.
Lazhar Karoui Chebbi said the interim government had asked members states to work via Interpol to detain Mr Ben Ali, who fled to Saudi Arabia on 14 January.
Mr Chebbi said Mr Ben Ali was accused of illegally acquiring property and assets and transferring funds abroad.
The minister was speaking as anti-government protests continued.
Police fired tear gas at hundreds of demonstrators after they reportedly tried to breach barricades around the prime minister's office in the capital, Tunis.
Some in crowd responded by throwing stones at the police.
They were demanding that members of the interim government who served under Mr Ben Ali - including Prime Minister Mohamed Ghannouchi and the defence, interior, finance and foreign ministers - step down.
"We have only one demand: for the government to fall. They all have to go. Ghannouchi should go first," Bassem El Barouni was quoted as saying by the AFP news agency.
Hamid El Gribi, another protester, said: "We have to clean up the rest of the old government."
The prime minister has said he will quit "in the shortest possible timeframe" and promised to hold elections with six months.
He is reportedly preparing to announce replacements for the five opposition ministers who resigned because of the continued dominance of Mr Ben Ali's Democratic Constitutional Rally (RCD) party.
'This woman'
Earlier, Mr Chebbi, a former barrister who did not serve in the last administration, said he had issued an arrest warrant for Mr Ben Ali, his wife Leila Trabelsi, and other members of their extended family, for "illegal acquisition" of assets and "illicit transfers" of funds abroad.
"We are asking Interpol to find all those who fled, including the president and this woman, for trial in Tunisia," he told reporters. "No-one will be above the law."
The minister said seven family members were currently in Tunisian custody, and also that the head of the presidential guard and five other personnel would be put on trial for "conspiring against state security and inciting people against each other with weapons" after Mr Ben Ali's departure.
Before Mr Ben Ali was overthrown, many protesters expressed their anger at the power, wealth and influence of his wife's family. "No, no to the Trabelsis who looted the budget," was a popular slogan, while the president's relations were referred to simply as "the Mafia".
Later, Interpol confirmed that its bureau in Tunis had issued a global alert - known as an "Interpol diffusion" - requesting that member countries search for, locate and provisionally arrest Mr Ben Ali and six others. The Tunisian authorities would then formally request extradition, it said.
The BBC's Magdi Abdelhadi, in Tunis, says it is unlikely Saudi Arabia will hand them over but the warrants will restrict their ability to travel to other countries, especially in the West.
Earlier this week, the Canadian authorities refused entry to some of Mr Ben Ali's relatives. In France, prosecutors have opened a preliminary investigation into the former president's holdings, believed to range from apartments to racehorses.
Mr Chebbi also revealed that 11,029 prisoners - about a third of those held in Tunisian jails - had escaped during the unrest of the past 12 days.
Of those, 1,532 prisoners had been returned to their cells, he said. Another 74 prisoners were killed in fires that broke out at several jails.
Mr Chebbi also said 2,460 prisoners had been released. He did not say if they were political prisoners, whom the government has promised to free.
Meanwhile, the country's main trade union, the General Tunisian Workers' Union (UGTT), said up to 100,000 people had taken part in an anti-government protest in the second city of Sfax after it called a strike.
Another strike has been called by the UGTT on Thursday in Sidi Bouzid, the town where the uprising began in mid-December.
During a visit to Tunis on Tuesday, US Assistant Secretary of State Jeffrey Feltman urged the interim government to do more to satisfy the demands of the people and offered assistance in preparing for free elections.
"The more that the interim government of Tunisia takes concrete steps to prepare for and implement democratic elections and a democratic system, and the more the interim and future governments are able to answer the grievances that led to this popular movement, the stronger and the warmer its partnership with the United States will be," he said.
"The interim unity government... has made some encouraging statements and have taken some good steps regarding the need for elections, for greater openness, for significant reforms.
"These steps will need to be implemented, expanded upon and added to in the days and months ahead."
His comments came as Libyan leader Muammar Gaddafi told Tunisian TV he feared the uprising was being exploited by "foreign interests".
On Wednesday afternoon, the government eased the overnight curfew imposed under the state of emergency because of "improved security". It will now be in place from 2200 (2100 GMT) to 0400 (0300 GMT).