JUNE 18th, 2005

JUN 18

Government pushes for 5% Reconstruction Tax
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Prime Minister Dr. Keith Mitchell says his ruling New National Party (NNP) administration plans to go ahead with the introduction of a 5% Tax to assist the country's reconstruction following the devastation of Hurricane Ivan.

He made the comments over a week ago while taking receipt of the keys from United States Ambassador to Barbados and the OECS, Mary Kramer for eleven community Medical Clinics.

The projects were financed by the U. S government and reconstructed under the United States International Development Agency (USAID) Hurricane Ivan recovery programme. The announcement of the Tax was first made known by Finance Minister Anthony Boatswain during the presentation of the 2005 Budget at the Grenada Trade Center in the south of the island in April.

Boatswain told the sitting that Grenada belongs to all of us and therefore it is only fitting that everyone make a direct contribution to its reconstruction and development. He noted that more resources must be raised locally and as such government has decided to ask every Grenadian worker to contribute to the Fund.

The Finance Minister pointed out that all contributions will go directly to the newly created Grenada Reconstruction and Development Fund (GRDF) to finance reconstruction priorities such as farm resuscitation, home repairs and youth and skills training.

Dr. Mitchell told the gathering that as the international community continues to help, it makes a lot of sense for Grenadians to help themselves. "It is said that charity begins at home. We cannot accept people's help, we cannot ask and be beggars and say we cannot support a Reconstruction Fund", he remarked.

"To me it is a fundamental responsibility for all of us to share the burden of the reconstruction of Grenada, Carriacou and Petit Martinique", he said. The Grenadian leader noted that the country's reconstruction process has nothing to do with him or his administration or the opposition but the present and future of the country and all citizens of the tri island State.

Since the announcement of the Tax, the Grenada Trades Union Council (GTUC) has spoken out strongly against its introduction. Only last week the TUC objected in a meeting with Minister Boatswain to the proposed introduction of the 5 % Tax.

In expressing its objection, the Unions stated it had difficulty supporting the implementation of the 5% contribution, at this time, since some workers are still recovering from the effects of Hurricane Ivan, while others have to secure second mortgages to repair their homes.

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