PHILIPSBURG--It appears that government will have to dip further into its reserves, if it gets the go-ahead from the Committee for Financial Supervision CFT, to balance the 2011 budget, because the pursuance of NAf. 20 million from theNetherlands Antillesassets seems more long-term.
Government?s reserves stand at some NAf. 65 million. Of that amount, NAf. 7.1 million is blocked by the bank for government?s overdraft facility. These were figures given by Finance Minister Hiro Shigemoto several months ago.
So for the option of a NAf. 20 million advance on St. Maarten?s shares of the assets of the Netherlands Antilles, Prime Minister Sarah Wescot-Williams told the press government is going in a different direction: selling its shares in Cura�ao-based companies, such as United Telecommunication and Post Netherlands Antilles.
An advance on the assets would have required the approval of Cura�ao and the Dutch Government which oversees business for Bonaire, St. Eustatius and Saba. While there has been no formal objection to the advance from the Dutch
Government, Wescot-Williams told the press on Wednesday that this option would have taken a long period, so government decided to negotiate with Cura�ao about the sale of shares.
St. Maarten, apart from its shares of the assets and liabilities of the former Netherlands Antilles, also has interests ranging between 18 and 25 per cent in former Central Government-owned companies. These are companies that based on the transition regulation during the constitutional change were passed to Cura�ao with St. Maarten retaining minor interest.
The sale of these shares has hit ?a technical snag? in the discussions between the two countries. The Prime Minister pointed out that the value of the shares still has to be worked out.
Meanwhile, government and CFT continued discussions on the way forward with the 2011 budget on Tuesday and Wednesday.
By next Friday, an agreement on balancing the budget within the criteria of the Kingdom Regulation on Financial Supervision must be reached by government and CFT as per the assurance given to Dutch Minister for Home Affairs and Kingdom Relations Piet Hein Donner on Monday.
Wescot-Williams said government made its position ?clear? to Donner that the economic times St. Maarten is facing and its effects on the budget must be taken into consideration.
The total budget now is tagged at NAf. 461 million while CFT, in its review, sees it more at NAf. 416. Government believes that lowering the budget ceiling would cause a serious deterioration of service to the public.
If government and CFT cannot agree to one or more items that could increase the income up to the total amount, then there will be no option but to look at lowering the ceiling, Wescot-Williams said.
It was made clear to Donner by government during a meeting on Monday that the increase of any fees ?cannot be rushed as was done with the increase of the Turnover Tax (ToT) from three to five per cent as of February.
Government wants to ?round off this chapter? with the budget in the coming days, so focus could be placed on the preparation of the 2012 budget and other important matters for the people of the Dutch side.
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