Grenada Today - The National Newspaper of Grenada, Carriacou & Petite Martinique

GRENADA TODAY has decided to reproduce in its entirety an official release from the PRESS SECRETARY IN THE OFFICE OF THE PRIME MINISTER on the controversial 5% tax to be taken out of the pack packages of some workers to help in the so-called Reconstruction of the island following the passages of Hurricanes Ivan and Emily.

It is entitled: Cabinet to Broaden Dialogue on 5 percent Levy". It reads as follows: "Tuesday January 3rd 2006, St. George's:

The Government of Grenada has decided to broaden the number of social partners in the debate on the 5 percent Reconstruction Levy. Cabinet members today gave support to a measure, which would include the Grenada Employers Federation and the Grenada Conference of Churches in talks concerning the introduction of the five percent levy. Government hopes that by broadening the number of social partners that the talks would be more inclusive and representative of more sectors within the society.

Cabinet members noted that the impact of the levy would be difficult for Grenadians especially at this time. Nonetheless, Government recognised that without the introduction of the levy it would be difficult to secure more international aid to assist the large numbers of persons who still require assistance. However, they agreed with the need for wider consultations with the social partners to aid in cushioning the effect of the levy.

Cabinet also gave careful consideration today to a recommendation by the Trade Union Council to postpone the implementation date of the 5 percent reconstruction levy. After deliberations it was decided that an announcement on the date of the implementation of the levy would be made on January 11th 2006 following the meeting with the social partners.

However, Government agreed that the levy has to be introduced in time for the 2006 Budget". It is clear to anyone with even a basic ABC education that the government is determined to introduce the 5% regardless of the outcome of the talks with all the "Social Partners. It is our view that the upcoming exercise is one of futility since the government is holding steadfast to its position that "an announcement on the date of the implementation of the levy would be made on January 11th 2006".

This newspaper is fully in support of the position being advanced by the Grenada Chamber of Industry and Commerce (GCIC) for the 5% levy to be expanded into a full blown Income Tax like what existed in the country before the advent of the New National Party (NNP) government coming into office in June 1995.

It is difficult to see the administration backing down easily on the 5% given its dire need to obtain cash especially with the fall-off in revenue from the customs Department due to the coming on stream of the Caribbean Single Market and Economy (CSME). The government is clearly looking towards the 5% levy as one of the main source of its revenue in the new economic reality within the Caribbean Community (CARICOM). We are sympathetic to the trade unions but it would be extremely difficult to come up with a workable and realistic formula to exclude persons with certain financial difficulties from making a contribution.

The Mitchell government cannot be trusted in handling this all by itself. It might seek to use this as an opportunity to try and punish those persons categorised as anti-NNP and allowing many of its supporters to slip through without paying their fair share of the tax.

There is a widespread view in the country that the NNP has been trying to get the tax collectors to go after certain businessmen known to be opposed to the regime and going "soft" on those who contribute to its political machinery. The hard-earned money of workers in this country should not protected as much as possible by the trade unions and other members of the "Social Partners" interested in good governance, transparency and accountability.

The latest bit of scandal concerning this government is related to payments being made to a political activist in the St. Andrew's South-east constituency by the NNP political directorate in order to get the support of both him and his wife in the next general elections. It is our understanding that an arrangement was worked out for $10, 000 out of a possible $50, 000.00 plus to be paid to an individual in the constituency despite a letter from a Permanent Secretary in the Ministry of Works that he was not entitled to the money after he was laid off from the service.

GRENADA TODAY is asking the nation to stay tuned to this development since the NNP is trying to get the individual's son who resides in the United States to return home to contest the seat against the incumbent, Kenrick Fullerton in the next election. It is this excessive manner of abuse of taxpayer's money by the Mitchell government that has to be the focus of patriotic Grenadians in the coming year.

This newspaper concluded a very long time ago that the time has long passed for the current holder of the office of Prime Minister to bow out and give the country another opportunity to try and reshape its future and destiny.

As long as Mitchell remains in office the country will not move forward and the deepening political wounds would not be healed. If Dr. Keith Claudius Mitchell loves Grenada, Carriacou and Petite Martinique, he would do the decent thing and bow out.

It would be difficult since the main Opposition National Democratic Congress (NDC) might not be inclined to accord him safe passage out of the country from possible charges of "Misbehaviour In Public Office". This is the dilemma faced by the current Prime Minister.