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Wednesday April 13 2005, St. George’s: The Government of Grenada wishes to state its position on the introduction of the Reconstruction and Development Fund. It is important to note the following points. 1. Following the passage of Hurricane Ivan, the Ministry of Finance, in December 2004, started a series of economic briefings and public consultations throughout the country. These consultations were held at both the national and constituency level. During these meetings it was recognised by the participants that government needed to raise revenue to address the fiscal imbalance caused by the effects of Hurricane Ivan. 2. The Government firmly believes that the fund provides the best method of addressing the fiscal imbalance. The fund will be reviewed on a yearly basis and Government will continue to consult with the people as the fund is reviewed. The introduction of the fund in the budget serves as a signal of the direction Government intends to go. The fund will now be debated in parliament and government is prepared to look at the exemption of certain groups who may not be able to afford. 3. The fund will not be implemented until August 1st and within that time the Government will continue to hold discussions before a final position is decided. 4. Over the last seven months, Grenada has received financial aid and other forms of assistance from many countries in the region and throughout the wider world. Friendly governments have used their own tax contributions to assist Grenada with budgetary support. Therefore, it is not unreasonable to ask all Grenadians to make a contribution to the reconstruction of their country. 5. It must also be noted that the international community is watching what we do. They are cognisant of the fact that their own taxpayers are making sacrifices for Grenada’s reconstruction effort and therefore we must be seen as helping ourselves. 6. The Government has so far been successful in attracting aid donors to assist with the reconstruction effort and will continue to do so in an effort to build back a better Grenada for all of its citizens. 7. The Reconstruction Fund was never intended and will not be used to pay salaries. As stated in the budget this fund will be used for farm resuscitation, home repair, youth skills, training and employment. The Government believes that this Reconstruction Fund will allow more of the poorest and most vulnerable groups in our society to be assisted as they try to rebuild their lives.
Office of the Prime Minister |
