Prime Minister Dr. Keith Mitchell has again defended his government’s plans to proceed with the implementation of a 5% income tax or Reconstruction Levy on the salary of workers from this month.

In his New Year Address to the nation, the Grenadian leader warned that the decision is the hardest that he had to take since taking charge of the government of Grenada in June 1995.

Dr. Mitchell had campaigned on the abolishment of Personal Income Tax in order to woo the electorate to the ruling New National Party (NNP).

Following are the remarks made by Prime Minister Mitchell on the controversial 5% tax that is being strongly resisted by trade union leaders:

“....Sisters and brothers let me raise an issue of serious concern to my Government and to me personally.

I have repeatedly said that without a doubt the hardest decision I have had to make since coming to office was to introduce the reconstruction levy.

It is difficult at this time for anyone to take money out of their hard earned salary to make any kind of contribution regardless of how necessary it may be.

However, sisters and brothers, this is a must at this time if we want to see our country prosper. Government reduced the tax burden on everyone in the period after Ivan because we were aware that we needed to give individuals as much help as we could.

At that time we allowed a broad range of goods to be imported to help people rebuild their homes, businesses and most importantly their lives. Even up to now we are still being very lenient with the collection of property and company tax because we know that many persons are still rebuilding their homes and businesses are still struggling.

However, we cannot stand still as a Government; we must move our country forward. As I have said before, in 2006 Government plans to double its efforts and help even more persons rebuild their homes as well as to employ and train thousands of young people under the National Youth Service.

We also intend to increase the pension given to our elderly and to subsidise bus fare for school children and give significant amounts of assistance to our farmers and businessmen.

Members of the international community including the IMF and the World Bank continue to tell us that we are on the right track with our development and that the reconstruction fund will allow us to do more for more of our people.

I am sure that none of us want to see our neighbours with tarpaulins still over their heads; that none of us want to see our farmers with crops still on the ground with no way of securing the funds to replant; that none of us want to see our young people on the street corners idling; that none of us want to hear about parents who cannot afford to send their children to school.

Sisters and Brothers I am instead sure that ALL of us would want to see this country as prosperous as any other country with you the people reaping the fruits of this prosperity.

While we work with our social partners, the Conference of Churches, the Trade Unions, the Employers Federation, the Chamber of Commerce and the entire population of this country we ask for understanding and patience in this process. As we enter 2006, let us do so with a renewed commitment to place country before self.

We must collectively find satisfaction in the successes of this great nation, that had endured so much, yet which continues to rise to the challenge on every successive occasion, overcoming tremendous odds.

In 2006, we must pledge to set aside our personal difference and work together for the good of our children and for the benefit of future generations. We must close the divide and create bridges that would see us unite on issues of vital national interest.

We must replace hate and vengefulness, which in 2005 coloured our politics far too often and instead engage one with the other, at personal and political levels, in a constructive national dialogue.

Surely, we will not agree on all things, but we must cause ourselves even in disagreeing to do so without being disagreeable. The Government that I have the honour of leading; will continue to do its part to maintain Grenada as a good place to live, to work and to raise a family.

There is no question that our country and indeed many countries in the Caribbean are confronting difficult challenges. There is equally no doubt that we can best confront these challenges as “one country united under God”.