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Finance

TCI Budget spending down, increased profits

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Dana Malcolm 

Staff Writer 

#TurksandCaicosIslands, February 14, 2024 – The Turks and Caicos third Supplementary Appropriations Bill will reduce spending for the country by $1.07 million according to E. Jay Saunders, Deputy Premier and Finance Minister and included in the supplementary are provisions for land purchases and money for a mortgage cooperation. 

It comes as the Turks and Caicos records $350 million in profit for the first three quarters of the year. That information came along with the Supplementary, as Saunders tabled the third quarter results allowing residents to see the financial performance of the year so far. 

Both were tabled on Tuesday, February 6th during a sitting of the House of Assembly. Despite a deficit recorded in the Q4 of the 2022/23 financial year the economy was back in form by Q3 of the 2023/24 year with $94 million in revenue recorded, a six percent increase over estimates. 

“This performance is attributed to higher than expected: Import Duties, Customs Processing Fees, Stamp Duty on Land Transactions, and Hotel and Restaurant Taxes,” the Finance Minister revealed. 

Saunders was quick to assure that the historic budget, which was increased twice in previous Supplementary bills to a total of $443 million, would not pass the set targets and there was no increase in spending for this quarter. 

“There is no impact on the existing budget envelope through this supplementary budget. There will be no breach of the debt sustainability targets agreed upon by the Governments of the UK and the TCI,” he assured. 

Even though no money will be added there will be shuffling for new expenses. Saunders provided a short list of the changes. 

  • $9.5 million to acquire land and settle an ongoing claim against the government.
  • $7 million as seed funding for a Mortgage Corporation.
  • $300,000 to rollout e-Government projects for the Ministry of Finance and the Ministry of Home Affairs.
  • $800,000 for miscellaneous adjustments for other Supplies, Materials and Equipment – Governor’s Office, Civil Servant Week and allocation to support the ongoing pay and regrading exercise and productivity audit. 

As for what was spent, it cost $82.2 million to run the country in the third quarter, $5 million less than expected. 

The Government under spent once more with an operating surplus of $12 million. 

In terms of tangible benefits for residents 19.6 million was spent on capital projects including the South Dock redevelopment and two 1 million gallon reverse osmosis tanks. 

Unfortunately the supplementary also saw cuts to the Capital Works portfolio by $7.7 million. 

Finance

TCIG launches Financial Assistance Programme

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Turks and Caicos, September 20, 2024 – The Turks and Caicos Islands Government wishes to advise that the portal for the (Senior Citizens) Financial Assistance Programme (FAP) is opened.

To receive the Financial Assistance Programme payment, you must meet the following eligibility criteria:

  1. Be receiving a pension that is below $1,000.00 per month from one or multiple sources or is receiving no pension at all.
  2. Be a Turks and Caicos Islander or a British Overseas Territory Citizen.

III.      Have attained the age of seventy (70) years old.

  1. Be ordinarily resident in the Turks and Caicos Islands for the last 5 (five) years.

Applicants should have a completed and signed affidavit verifying their residency and sources of pensions ready to upload into the portal.  However, if you have not received the affidavit, you may download one from within the portal, complete it, and have it signed by a Justice of the Peace. Without this affidavit, the FAP cannot be processed.

If applicants receive pensions from multiple sources, and the aggregate benefit is less than $1,000.00, then documentation should be uploaded for each source other than the National Insurance Board (NIB).

If the applicant’s pension from multiple sources exceeds $1,000.00, the applicant is ineligible for the FAP.  An application with an aggregate pension of more than $1,000.00 will be denied.

For the first phase of the FAP, the applicant will receive an email originating from the portal using the email address that was provided during the Citizen’s Inflation Relief Stimulus. The email will provide instructions for the use of the portal, including uploading of the relevant document(s).

First phase pensioner’s information is already in the database but may need updating. If there is a need to update, the applicant will be contacted via the same email to do so.

If you haven’t received an email to the known address, check your junk and clutter folders to ensure that it was not lodged there.  Eligible persons who have not received an email will have an opportunity to apply in phase two, which will follow shortly thereafter.

Once you open the portal, you will be required to enter your date of birth which will give you access to another window and form to be completed.

If you are having problems with your submission email us at: tciassistance@gov.tc

Portal Opens:       Thursday, 19 September 2024 at 11:59pm

Portal Closes:       Thursday, 26 September 2024 at 11:59 pm

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Finance

The escalating cost of living in the Turks and Caicos Islands

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Cheers!

Ed Forbes 

 

Turks and Caicos, August 22, 2024 – Without a doubt, these are very extraordinary times in the lives of our people in the Turks and Caicos Islands. The economic impact and  inequality between the different Islands has drawn huge differences between those who can afford to continue thriving, and those who are barely making it.

Therefore, we need to take extraordinary measures to move beyond the suffering left by the pandemic, such as looking at the escalating cost of food prices and start with making provisions to alleviate this strain.

In my opinion, it should remain high on the priority list of this administration’s agenda, along with the other competing issues.

Currently, the minimum wage in TCI is $8 per hour, which is over a 20 percent increase within the past three years. Despite the increase, it has done very little to match the rising cost of inflation and is incomprehensible.

Unlike many of the other Caribbean islands, with the exception of seafood, practically all other consumable goods are imported and the service industry dominates the job market.

Is it time to raise the minimum wage again? There are several benefits to higher minimum wage. As a matter of fact, many experts have said it will help create jobs and grow the economy. The declining value of the current minimum wage in these islands is one of the primary causes of wage inequality, especially when the price of groceries continues to increase.

There is also a huge wage disparity between low- and middle-income workers; and that’s the majority of Turks Islanders. I’m inclined to believe if you were to poll TI’s, a large majority will support increasing the minimum wage again.

Income in these islands is a major determinant factor when it comes to the quality of life affecting the health and well-being of individuals and families.

This varies by social factors such as age and ethnicity. Medical experts have concluded over the years that the impact can also lead to obesity and other health related issues.

Although there is a minimum wage law in TCI, due to the  long-held traditions, you will find that it is not uncommon for some employers to still pay employees what they feel the job is worth.

As a small business owner myself, I realized that it could be difficult at times putting payroll together at the end of the week, but paying employees a fair wage is the right thing to do.

Many opponents may say given the economic challenges we are faced with, their businesses cannot afford to pay employees more, or will be forced to reduce hiring. I beg to differ, as there is never a perfect timing. As a matter of fact, it could further increase productivity in the long run.

Perhaps, if low-income workers earned more money, their dependence on working two jobs may be reduced, thereby creating more opportunities in the job market.

Being forced to work two jobs to make ends meet, could be very taxing on families especially those with children. In some cases, it could be contributing to the delinquency of our youth due to the lack of two fulltime parental homes.

Prior to the pandemic, improvements in productivity and economic growth in this country have outpaced increases in the minimum wage and housing affordability.

The current minimum wage as it stands, has not kept up with worldwide inflation.

Grocery stores prices are normally one of the tell tale signs for rising inflation. Although price increases are usually “transitory” in nature, this wave of increases appears to sticking around for far to long.

Monopolies can raise prices and keep them high, because they don’t face enough competition charging lower prices and pulling consumers away.

For example, the cost of a gallon of low fat milk in Grand Turk in literally $8-$10 plus, unless on sale, and probably higher is a few of the sister islands.

What that means is, you would literally have to work almost 2 hrs to afford a gallon of milk, that’s insane. Eating healthy is a choice, but with these prices, it could be very difficult for some working families to choose.

As pointed out by a team of International Election Experts who visited the islands in 2021, the eligible voters population in TI is approximately 8581, with an estimated population of about 45K to 50K. Now ponder this for a moment.

This data paints a disturbing picture, and it leaves one to wonder whether or not these chain grocery stores are catering to the working class in terms of affordability and income levels, or are the prices being driven by the high-end targeted population.

With that being said, don’t expect the prices of groceries to get lower anytime soon or get back to pre-pandemic levels. This makes it unsustainable for a minimum wage worker and many marginalized families.

To be quite frank, I think it’s about time the government require big corporations or publicly traded companies to disclose more about their costs and pricing strategies. These big corporations have enough monopoly power in the islands to keep prices high.

Despite government efforts to reduce the import duties on the “ bread basket items”, what we lack in this country is price control and worker protection. At some point it will have to be addressed in order to slow the widening gap of class disparity.

In order for the government to truly protect the interest of the people, it must regulate businesses in a way that supports the ability of ordinary Turks Islanders to prosper. When it’s all said and done, it must start with price control and enforcement of any signs of price gouging.

Of course, the upcoming election will also hinge on some of these issues. When consumer sentiment and confidence are trending down or upwards, it will weight heavily on the minds of the people.

Henceforth, it’s high time we have a call to action on this initiative. Although it may be an inflated expectation, hopefully this government with take a pragmatic approach to this matter, while balancing it with the economic needs of the country.

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Caribbean News

Two Islands benefit from CARPHA donations in aftermath of Hurricane Beryl

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Garfield Ekon

Staff Writer

 

 

August 14, 2024 – In response to dislocations caused by Hurricane Beryl, in sections of Grenada, St. Vincent and the Grenadines, the Caribbean Public Health Agency (CARPHA) has donated essential public health supplies to assist in improving hygiene, sanitation, and the prevention and control of vector-borne and other infectious diseases.

Hurricane Beryl which made landfall in the Caribbean as a Category 4 Hurricane on July 1, 2024, impacted lives and livelihoods, resulting in fatalities and injuries.  It caused unprecedented damage, with many homes being destroyed and critical infrastructure including healthcare facilities severely damaged.

“Post-disaster health consequences of heavy rains, floods, and large numbers of displaced persons in shelters, increase the likelihood of infectious disease spread; food, water, and vector-borne diseases; mental health issues; and a strain on health systems. CARPHA’s public health response included rapid needs assessment, laboratory, surveillance and response, prevention and control of infectious diseases, health and safety promotional materials, and shelter surveillance tools,” said Dr Lisa Indar, Ad Interim Executive Director at CARPHA.

With funding through the Pandemic Fund grant, CARPHA procured essential public health supplies to prevent and/or reduce disease outbreaks in the impacted countries. This first tranche of the donation included nitrite gloves, non-woven gowns, Respiratory Syncytial Virus (RSV) Test kits, insect repellents, vector control products, rehydration salts, and chlorhexidine gluconate.

The supplies were received by Grenada’s Health Minister, Philip Telesford, who expressed appreciation for the donation and acknowledged CARPHA’s leadership.

“I express my profound gratitude to the leadership of CARPHA for the generous donation. The medical supplies including mosquito repellents which we know are very useful at this time as we grapple with the challenge of the proliferation of mosquitoes. The mosquito repellents that we are receiving along with this shipment are indeed very timely,” Minister Telesford said.

In addition to the donation, CARPHA produced promotional material which addressed post-hurricane health and safety measures for distribution in the affected islands. CARPHA Shelter Surveillance Guidelines, and Guidelines for Portable Toilets, have also been shared with health, and emergency response officials.

CARPHA’s mandate includes public health response to emergencies, and as such it remains committed to working with the Caribbean Disaster Emergency Management Agency (CDEMA), and other regional and international agencies to support the health response to the hurricane-affected Member States.

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