Growth Through People Empowerment

Budget 2019-2020

Issue 23 | 27 Apr, 2019

Growth Through

PEOPLE EMPOWERMENT 1

The Annual Budget: The

HEALTH CARE

05 Domestic Economic Performance and Prospects

The opening was held on Tuesday, April 09, 2019. That morning, Members of the House of Assembly met ahead of Members of the Senate who later met, after which both Houses met in joint session to receive the message from His Excellency, the Governor General, Sir Emmanuel Neville Cenac, commonly referred to as the Throne Speech. The Standing Finance Committee met that afternoon in closed session, to review the Estimates of Revenue and Expenditure 2019/2020.

TAX REFORMS

13 03. STATEMENT BY

HON. ALLEN MICHAEL CHASTANET

04. EXCERPTS FROM THE THRONE SPEECH 05. HEALTH CARE 06. IMPROVING OUR BUSINESS AND INVESTMENT CLIMATE

07. MAKING TOURISM OUR PEOPLE’S PRODUCT 08. INTERNATIONAL RELATIONS 09. DOMESTIC ECONOMIC PERFORMANCE 11. EDUCATION SECTOR STRATEGY 12. TOURISM STRATEGY 13. TAX REFORMS 14. NEWS BITES

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he Estimates of Expenditure 2019/2020, commonly referred to as the budget debate, concluded here last week and was keenly followed by Saint Lucians at home and abroad via their Television sets, radio or Social Media.

It is a season of grand fanfare, with the opening of the Fourth Session of the Eleventh Parliament in Saint Lucia in Castries attracting supporters of Government and Opposition, as well as non-partisan interests, outside Parliament.

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10. THE HEALTH CARE STRATEGY

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People’s Business

The following day, Wednesday April 10, 2019 saw a Sitting of the House of Assembly taking place which continued Thursday, April 11 and Friday, April 12, 2019, where the debate on the Estimates of Expenditure 2019/2020 took place.

The Motion down for consideration was as follows: BE IT RESOLVED that the House of Assembly do adopt the Report of the Standing Finance Committee on the Estimates of Expenditure for the financial year 2019/2020 in the sum of One Billion, Five Hundred and Ninetyone Million, Five Hundred and Eighty-nine Thousand, ($1,591,589,000.00) dollars as a charge against the Consolidated Fund and other funds of the State of Saint Lucia.

Prime Minister and Minister for Finance, Economic Growth, Job Creation and External Affairs, Honourable Allen Michael Chastanet presented the Estimates of Expenditure 2019/2020, reviewing Saint Lucia’s revenue and expenditure performance for the previous year, while putting forward a Medium-Term Development approach with goals in six key areas. In this issue of Our Saint Lucia we present some of the key points presented in the Throne Speech as well as a break-down of the key areas outlined by the Hon. Allen Chastanet.

We urge you to take time out to review the proposals and projections. You may wish to visit the GOSL website, Facebook and Youtube channels to hear the full content of the budget. Remember, it is the business of all of us as citizens to be well informed and know what our Government is doing! – Toni Nicholas Editor.

Statement by

Honourable Allen Michael

Chastanet

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he theme for this year’s budget is “Growth by Empowerment for a Better Future. Our 2019/2020 Medium Term Strategy will focus on developing the following 6 Areas- (Healthcare, Education, Agriculture, Tourism, Infrastructure & Citizen Safety).

Our major Infrastructure projects this financial year include the rehabilitation of the Millennium Highway and West Coast Road, construction of St. Jude Hospital, The New Hewanorra International Airport, redevelopment of Castries Market, an island-wide road rehabilitation project, Water projects in Dennery and Vieux Fort and the new Cul de Sac bridge.

Residences at Honeymoon Beach in Vieux Fort, a Hyatt in Choc Bay, Villas and a Golf Course in Cap Estate, a Marriott Hotel at Pointe Seraphine, Hotel construction in Choiseul and the continuation of the 1st Phase of the DSH project.

In addition, we have formed a Performance Management Unit to improve implementation of Government projects and we will fulfill the implementation of National Health Insurance and full opening of OKEU as well as deliver the new 90 bed St Jude Hospital. Construction will take 18 months. Health facilities across the island will also be improved and upgraded into Smart Health Facilities. The Smart school project will also place emphasis on modernizing our education system, while transitioning at least one school initially, into a sports performance center among other sports programs and the upgrade of sports facilities.

Shortly we will see the commencement of the Castries Redevelopment Project and Implementation of Village Tourism in Gros Islet, Anse la Raye and Soufriere as we continue to explore linkages between tourism and agriculture as well as diversification of agriculture. Cocoa Production and exports as well as interventions with Coconut water and plantain,will be part of our move towards expanding agro processing.

A number of tax reforms are also on the way, as well as a number of laws which will seek to make doing business smoother and less onerous.

The budgetary proposals for the upcoming financial year are designed to achieve growth that will break the bonds of economic stagnation that has been holding back our country and our people. Our restructuring of the economy has helped us to put Saint Lucia on a strong financial footing and as a result we have regained the confidence of business people and investors, locally and internationally.

Along with the Medium-term Development Plan that it finances, is the continuation of the Government’s plan to put Saint Lucia in a position of strength, to have the people of Saint Lucia be in charge of their own destiny.

Our aim is a Saint Lucia where; our children will receive an education that better prepares them for the world, our prospects for access to quality health care improves significantly, where people will be able to find meaningful and gainful employment to take care of their families, where young citizens have the opportunity to own a piece of their homeland and start or grow their own small businesses, where we have a more reliable water supply and travelling around the country becomes easier and a Saint Lucia where we are safer. I am asking all Saint Lucians to fully embrace the bold direction in which we are going. As a nation, we have begun to see those positive signs, which have been absent for a long time. This tells us we are on track with our plans. This tells us we are on the right path and must stay the course. Opportunities lost today can never be recovered.

This is going to be a very important year for our country. We must not allow ourselves to get distracted and remember always that poverty, deprivation, under- development and critically lost opportunities are the real enemies. These are the things our Government policies and this budget are designed to address.

To be successful, collectively, we must strive for excellence, always. We must take advantage of the opportunities before us and continuously lift each other up.

I call on all Saint Lucians to support the efforts being made in education, in sports reform, in curbing crime, in food security, in safeguarding the environment and in assisting the most vulnerable among us. After 40 years, we must have learned by now that we are stronger when we work together, when we are All-in!

PrimeProjects Ministerinclude Hon. Allen Chastanet Hotel a Resort & Min. for Finance, Economic Growth, Job Creation and External Affairs

May God Continue to Bless our beautiful island.

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GROWTH BY EMPOWERMENT FOR A BETTER FUTURE Excerpts from The THRONE SPEECH

By His Excellency Sir Emmanuel Neville Cenac GCSL, GCMG Governor-General of Saint Lucia

On the occasion of the Fourth Session of the Eleventh Parliament of Saint Lucia Tuesday, April 9, 2019

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The Governor General of Saint Lucia HE Sir Emmanuel Neville Cenac

adam President, Mr. Speaker, this Session takes place against the backdrop of an international climate that is more fluid and uncertain than we have perhaps ever witnessed. Unpredictability is the new order, in matters economic, political, religious and climatic. One constant is Saint Lucia’s status as a Small Island Developing State. From this come the consequences of vulnerability, susceptibility to adverse external shocks and probable casualty of major climate events.

We are not, however, victims. We are not a hapless, helpless people. We are Saint Lucia – a country of boundless talent, yet untapped intellectual energy, immense potential. This means that as Parliament, we are entrusted with invaluable resources, and must consequently, bear the burden of commensurate accountability.

My Government will introduce appropriate policies and laws in education, healthcare, agriculture, tourism, commerce, energy, infrastructure, and public financial management.

EDUCATION AND HEALTHCARE

THE FOUNDATION

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ICT in EDUCATION a Priority for this Government ducation and health constitute the cornerstone of empowerment, and education is the singular means by which our people can raise the estimation of themselves and perform to their full potential…and in this context, I cannot say how pleased I am to have received the assurance of our Minister for Education that commencing immediately, steps would be taken to make students fluent in French and Spanish also, beginning with five-year olds.

That would make Saint Lucia, whose main business is tourism, perhaps the most sought-after country in the world of 7.7 billion people, where only a small handful can boast fluency in the three official languages, English, Spanish and French.

With those in our pockets that would be the highest form of foreign exchange, and there would be full employment for our 170,000 people.

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My Government’s vision for education in 2019-2020 sets the foundation for building the workforce of the future, with two priorities being the mainstreaming of Information and Communication Technology (ICT) in education, and the strengthening and expansion of the Technical and Vocational Education and Training (TVET) programme.

to integrate and strengthen TVET in our special education and primary schools.

This will result in an increased number of graduates possessing Caribbean Vocational Quality certification. My Government urges our private sector to collaborate with us towards achieving success in this vital initiative, vital to our mutual benefit.

The ICT in Education Policy and Strategy provides a clear outline and context for Saint Lucia’s e-Education drive and encompasses our SMART Nation initiative.

It will facilitate the transformation of our learning spaces into SMART classrooms, incorporating infrastructure and instructional materials which satisfy the requirements of technology integration.

Computer Coding and Robotics training, introduced in 2018, will remain a regular feature on the education agenda.

Initiatives to increase access to education will also continue via the #EDUCATESAINTLUCIA thrust.

Assessments will be undertaken of the feasibility of repurposing existing school plant to accommodate pre-K classes, so that more of our children can avail themselves of early childhood education.

Similarly, secondary schools which may be fit for the introduction of sixth forms will be identified.

The TVET programme will continue, with its focus on technical competencies, together with the soft and employability skills demanded by employers. While secondary and tertiary institutions are the main targets, efforts are being made

Plans to transition the Gros Islet Secondary School into a National Sports Academy are well advanced, while the introduction of a magnet programme to begin the transformation of the Anse Ger Secondary School into a Centre of Excellence for Arts is imminent.

Excerpts from The THRONE SPEECH

HEALTH CARE

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he progress made to date on commissioning and operationalization of the Owen King EU hospital is noteworthy and work will continue towards full transition of all outpatient and inpatient services within the shortest time possible. The decommissioning of the Victoria Hospital has become imperative and my Government is taking urgent action to achieve this.

Equally crucial is the completion of the St. Jude Hospital, based on its new design, with a timeline of 2021. This will be approached by means of phased transitioning into the new facility.

Selected health facilities will be upgraded to SMART institutions, so that they are adaptable to changing weather patterns, safe and operational during and after extreme weather events and emergencies, and energy efficient with lowered carbon footprints and operational costs.

My Government intends to implement a National Quality Management System in order to ensure that our healthcare system satisfies international quality standards. The requisite legislation to support the National Healthcare Quality Management System will be considered for enactment during this Session of Parliament.

The Transition process to the OKEU Hospital is now on

AGRICULTURE

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otably, major progress has been made via the Banana Productivity Improvement Project, which has recorded significant increases in acreage under banana cultivation, levels of productivity and number of farms in operation. This means also that the objective of restoring and improving the quality of livelihoods of some eighty thousand families residing in rural communities is that much nearer to attainment.

Banana Productivity Improvement Project has assisted in increased productivity

The establishment of the National Diagnostic Facility is well underway with housing for the Veterinary Services, Plant and Metrology Laboratories being almost 100% completed. My Government has also embarked on initiatives designed to reduce the food import bill and enhance national food and nutrition security, while creating employment opportunities, particularly for vulnerable groups in rural communities.

A new Plant Protection Bill aims to minimize the risk of transfer of exotic plant pests and diseases into and out of Saint Lucia. It will make existing laws consistent with the International Plant Protection Convention, facilitate implementation of the OECS Customs Union and Free Circulation of Goods regime, as well as the Economic Partnership Agreement signed with the European Union.

A long outstanding matter is the control of trading in endangered species. In this regard, Saint Lucia must take action to give effect to the Convention on

International Trade in Endangered Species of Wild Fauna and Flora (CITES) to which Saint Lucia is a party.

My Government intends to ensure that the CITES Act is implemented and its provisions addressing compliance with prohibitions, restrictions and approval requirements are enforceable.

To this end, the management and scientific authorities, housed in the Ministry of Agriculture, Fisheries, Physical Planning, Natural Resources and Cooperatives Forestry will work closely with border control agencies, the Departments of Trade and Commerce, and the National Conservation Authority.

This year my Government will also finalize the Cooperative Societies Bill, in an effort to modernize governance arrangements, facilitate the growth of cooperative societies, and recognize the Financial Services Regulatory Authority as the regulator for financial cooperatives.

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Excerpts from The THRONE SPEECH

IMPROVING OUR BUSINESS AND INVESTMENT CLIMATE

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major undertaking is the adoption of the credit reporting system developed by the Eastern Caribbean Central Bank for application in the Eastern Caribbean Currency Union (ECCU). A Credit Reporting Bill, will be enacted, which will support the growth of the ECCU Credit reporting system and the development and operation of the credit bureau within the single financial and economic space.

Further, as our states move to deepen their integration and facilitate the movement of people and businesses, a legislative framework for accessing credit, using movable property, is indispensable. The Security Interests in Movable Property Bill will provide for small and medium enterprises to access finance, in instances where they lack traditional collateral.

A Free Zone (Amendment) Bill will be enacted, with a view to improving governance operations in free zones and assist in meeting international tax transparency requirements.

The Eastern Caribbean Central Bank My Government also intends to amend the existing Trade Licence Act, in our bid to regulate, more effectively, those non-nationals who are desirous of trading in Saint Lucia.

In the same vein, the Fiscal Incentives (Amendment) Bill is intended to expand incentives afforded to local businesses as a means of spurring industry and investment.

INFRASTRUCTURE

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t is my Government’s intention to enact a Shipping (Marine Pollution) Bill, which will give effect to ten international Conventions dealing with marine pollution, to which Saint Lucia is party, and will provide for jurisdiction in relation to pollution of the sea from ships, intervention on the high seas in case of oil pollution and dumping of wastes at sea.

My Government will also play its part in minimizing the transfer of invasive aquatic species through shipping, by enacting the Ballast Water Management Bill. This Bill will give effect to the International Convention for the Control and Management of Ships Ballast Water and Sediments and other international standards, and introduce measures to prevent, reduce or eliminate invasive species and pathogens.

An amendment is proposed to the Power-craft Act in order to bring the operation of jet skis within its purview. The amendment will introduce operational procedures by owners and operators, increase penalties and strengthen monitoring by the police.

CAPTURING POTENTIAL

ENERGY 6

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New Shipping Laws to be enacted

eading by example, my Government will increase the use of electrification for powering the fleet of government vehicles. In addition, more schools and other public buildings will follow the model of the Gros Islet Secondary School and Sir Arthur Lewis Community College, each of which boasts a 25 MW solar photovoltaic system, and harnesses solar power to supplement their needs.

Various options are also being explored in relation to geothermal and wind energy.

In the course of this year, my Government proposes to enact an Electricity Services Bill to support the transition to new and renewable sources of energy, encourage efficiency in all aspects of the electricity service and create a framework for more robust sector regulation.

Excerpts from The THRONE SPEECH

MAKING TOURISM OUR PEOPLE'S PRODUCT

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y Government will undertake initiatives to revitalize the Castries city center, making it more attractive to residents and visitors alike. Initiatives include the upgrade of the Castries Market, pedestrianization of the William Peter Boulevard, façade improvement for small businesses and beautification of the King George V Park.

Village and Community Tourism has the potential to confer direct benefits to communities, as it paves the way for the transformation of villages and towns into cultural, heritage or nature destinations, each one with its unique

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Green spaces and the pedestrianization of the William Peter Boulevard to be given attention identity and offerings. My Government intends to facilitate the development of a village tourism programme, to be administered by the people of the communities identified. The required institutional and governance structure will be established in a Village and Community Tourism Bill.

STRENGTHENING PUBLIC FINANCIAL MANAGEMENT

his year, a number of initiatives will be taken to strengthen public financial management, legislative reform being primary among them.

regulations as well as structural changes within the Department of Finance.

My Government pursues a Debt Management Strategy which aims to raise stable and consistent levels of The existing Financial (Administration) financing at minimum cost and subject to Act Cap 15.01 will be repealed, and a prudent levels of risk. The Strategy and new Public Financial Management Act the Debt Sinking Fund which is proposed introduced in its stead. to complement it, will be governed by a Public Debt Bill which will promote The Public Procurement and Asset transparency and accountability in debt Disposal Act No.19 of 2015 will be brought management. into force, accompanied by requisite

Legislation is also required to ensure that discretion attends the management of the National Economic Fund established under the Citizenship by Investment Act No. 14 of 2015. To this end a Saint Lucia National Economic Fund Bill is proposed, which will deal with matters of administration, financial transactions and reporting obligations.

SECURITY INITIATIVES

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overnment will intensify efforts at crime prevention and confidence building by increasing the numbers in the Royal Saint Lucia Police Force and providing training in critical new areas such as human trafficking and the handling of vulnerable persons, as we improve capacity to combat organized crime. The use of CCTV cameras will modernize crime fighting while an enhanced communication system will improve response time and improve coordination among agencies of the police force. ‌the matter of recidivism must be addressed. Too often, people leave prison and, with no support to find stable employment or a safe personal life, they fall back into criminal behavior. My Government proposes the introduction of a parole system which will assist in the early release of prisoners and their reintegration into the community with the support of specially trained parole officers. The requisite legislation exists and effect will be given to it.

CCTV Cameras to be installed

In preparation for the Fourth Round Mutual Evaluation by the Caribbean Financial Action Task Force, my Government will, following review of existing legislation, address matters of anti-money laundering, the financing of terrorism, and the implementation of the United Nations Convention on Corruption.

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The 2019/2020 Medium Term Strategy

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uring the recent budget presentation Prime Minister Hon. Allen Chastanet outlined Government’s strategy and fiscal policies on the way forward. This strategy will focus on developing the following 6 Areas- (Healthcare, Education, Agriculture, Tourism, Infrastructure & Citizen Safety).

MEDIUM TERM Development Approach

The medium term development plan is designed to provide opportunities for our young people to be in a better position to find jobs, own their own homes and to give them a future as productive citizens of their country. It will give farmers the ability to earn more to support their families, it will provide more jobs in the construction and tourism industries, it will ensure that every Saint Lucian has access to affordable, quality healthcare and make travel into and around our country safer and more comfortable.

This plan identifies six key areas to achieve sustainable and inclusive growth by 2022.

The goals of the six key areas are as follows:

Healthcare affordable access to quality healthcare

Education enrollment of 7,500 students in public post-secondary or tertiary education and TVET programs

Citizen Safety 45% reduction in serious crimes

Tourism 40% increase in visitor arrivals

Agriculture increasing exports in bananas and cocoa

Infrastructure 99km roads, double airlift capacity, 40% increase in cruise capacity

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Domestic Economic Performance and Prospects 2018 Performance •

The Economy continues to grow. It has grown by 8% since 2016

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It is projected that Saint Lucia’s economy with grow by 3% in 2019/2020

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the Debt to GDP ratio has fallen from 67.7% in 2015 to 64.9% in 2018

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Government’s Revenue grew by 6.4%

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Stay over visitors have increased from 344,000 in 2015 to 395,000 in 2018 Cruise visitors continue to break records - from 677,000 in 2015 to 760,000 in 2018 a 13.6% growth

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Yacht arrivals increased by 26.7% In 2018

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Tourist arrivals across all categories grew by 10.2% to register a new record of just over 1.2 million visitors in 2018

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Construction work will accelerate on the John Compton Dam, Dennery Water Supply Redevelopment (phase 2) and Vieux Fort Water Supply Redevelopment

Hotel Projects It is also anticipated that in the private sector, at least seven major hotel projects will commence during this financial year: •

Resort & Residences at Honeymoon Beach in Vieux Fort

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Hyatt in Choc Bay

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Villas and a Golf Course in Cap Estate

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An island-wide road rehabilitation project

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150 room Courtyard Marriott Hotel at Pointe Seraphine

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Water projects in Dennery and Vieux Fort

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Hotel construction in Choiseul

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The new Cul de Sac bridge

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Sandals 360-suite project

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The continuation of the 1st Phase of the DSH project

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Port development for Castries and Vieux Fort

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The commencement of the Castries Redevelopment Project and Implementation of Village Tourism in Gros Islet, Anse la Raye and Soufriere

Enhancing Implementation A Performance Management and Delivery Unit (PDMU) has been formed to improve implementation of Government projects. The PDMU comprises skilled professionals from a variety of backgrounds, with a mix of experience in both the public and private sectors to manage implementation of the Medium Term Development Plan.

The core activity of the PDMU is to: •

Provide support and challenge to sectors in delivery planning, to ensure plans are sound, comprehensive and specific.

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Provide performance insights through monitoring and reporting

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Solve implementation problems

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Build capacity

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Coordinate across sectors

New Castries Market

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The Health Care Strategy ational Health Insurance, National Hospitals and SMART Facilities is the focus of the Health Sector Strategy.

Affordable access to quality healthcare is among the key areas of focus for the Government of Saint Lucia, as it continues to empower the People of Saint Lucia. Prime Minister Honourable Allen Michael Chastanet, during his Budget Address, provided an update on the health sector strategy which is part of the Government’s Medium-Term Development Approach.

Prime Minister Chastanet announced that during the coming financial year EC$162 million will be invested in the health of Saint Lucians at all levels.

1. Design and implementation of a National Health Insurance 2. Strengthening of primary and public health to: • • • •

Ensure every child gets their full vaccines Increase effectiveness of our prevention of NCDs Increase our attack on mosquito borne diseases Strengthen the quality of primary wellness centres and medical centres.

3. Implementation of Quality Assurance Framework, through the adoption of ISO-9001 2015, the international standard for quality management systems

The Mon Repos Wellness Centre being transitioned to a SMART Wellness Centre

Prime Minister Hon. Allen Chastanet, Minister for Economic Development, Housing, Urban Renewal and Civil Aviation Hon Guy Joseph and Minister of Health Mary Isaac on tour at OK-EU

A major part of the island’s health strategy is the full operation of OK-EU Hospital and the completion of St. Jude, as well as the design and implementation of a National Health Insurance and the strengthening of Primary and Public Health.

4. Full commissioning of the National Hospitals in the new locations.

With regard to National Health Insurance the Prime Minister stated that the Government will ensure that adequate provisions will be made to cover the poor and most vulnerable within our society.

To achieve the strategic health outcomes over the medium to long term, the Department of Health and Wellness shall pursue the following health sector drivers during this financial period:

The St. Jude Hospital Reconstruction Project in Vieux Fort will deliver a 90-bed facility that will cater for both inpatient and outpatient services. The project will involve the construction of: A new wing to incorporate all the functions and services of the existing East and Surgical Wings; Integration through retrofitting of some existing buildings to achieve a fully functioning hospital to match the services of a level 4 facility; and revision of the internal layout of buildings to be integrated for functional efficacy and standards compliance. Funding has been secured for the project, which will last 18 months.

The full commissioning of the OKEU Hospital continues to be a top priority.

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Along with the Dialysis and Physiotherapy Units, all outpatient services with the exception of the Oncology Clinic have been transferred to OKEU Hospital.

Plans for the physical relocation of staff, equipment and services from Victoria Hospital are well advanced.

Additionally; •

The Cuban Eye Health Programme will be relocated to the old Turning Point facility

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The Oncology Unit will be relocated to the National Wellness Centre

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The Sexually Transmitted Infection (STI) Clinic will be relocated to the Castries Wellness Centre.

The transitioning process from Victoria Hospital to the new OK-EU Hospital ongoing.

The Government is also working with the Pan American Health Organization - and with funding provided by the United Kingdom Department - seventeen health centres will be upgraded as part of a SMART project.

They include Comfort Bay Senior Citizens Home, La Clery Wellness Centre, VieuxFort Wellness Centre, the Transit Home, Deruisseaux, Belle Vue and Mon Repos, Saltibus, Mongouge, La Fargue Wellness Centre, Bexon, Laborie and Richfond Wellness, Monchy, Entrepot, Ti Rocher and Castries Wellness Centre.

A new Soufriere Hospital will also be constructed to serve the people of Soufriere, Fond St. Jacques, Canaries and Choiseul.

EDUCATION

SECTOR STRATEGY

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fforts are underway to modernize our school curriculum and teaching methods so that students’ performance rates can be improved and young people provided with the skills that will enable them to find rewarding and productive work.

This means that the quality of our technical education will be improved along with the improvement of our school education. The Centers of Excellence in Sport and the Arts and Culture, will provide non-traditional but important avenues for students to realize their full potential, while receiving a sound secondary level education.

The Ministry of Education will continue to provide professional development training for teachers so that they are better able to deliver a higher quality of instruction.

The aim is also to increase the number of students who qualify for University and higher education.

Minister for Education Hon. Gale Rigobert engaging students of the Choiseul Secondary School

Additional Interventions •

Money has been allocated for the SCORE programme to give extra support to students in specific subjects to help carry them over the line. The programme will be inaugurated during summer this year.

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An additional $10 million has been allocated in the budget for the rebuilding and refurbishment program during the coming fiscal year.

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The ICT Integration/SMART Schools project will receive $2.5 million towards its digital literacy curriculum.

The Government earlier this year completed construction of the new blocks at the Choiseul Secondary School. The school accommodates approximately 650 students and comprise, among other modern amenities, sick bays for male and female students, a resource room, technical drawing lab, IT laboratory, music and theatre rooms, chemistry and physics laboratories. The new blocks are also designed to be earthquake and hurricane resilient and will serve as emergency shelters during natural disasters. They also allow for handicap friendly access.

Minister of Sports Hon. Edmund Estephane and Hon. Herod Stanislas MP for Soufriere at the recent sod turning for the stadium in Soufriere.

SPORTS DEVELOPMENT Government will invest $20.6 million in sporting facilities and programs across the country during this financial year.

These facilities will ensure that our people channel their energy into positive and healthy activity. Four sports facilities have been identified initially for further development as follows: •

FIFA and IAAF certified stadium in Soufriere

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A large sports hub at Dennery

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A medium sports hub in Micoud North

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A community hub in Micoud South

To augment this sports development programme the School of Excellence (Sports) in Gros Islet has already started a pilot programme, introducing form 3s to a sports curriculum.

The new blocks at the Choiseul Secondary School

Government also plans to merge the National Lottery into the Gaming Authority to handle the regulatory aspects of the Lottery. This will translate to a new Youth and Sports Authority, with the expertise to be able to invest in sports and cultural development.

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TOURISM STRATEGY

Ground breaking for the Hewanorra Redevelopment project

Investments and incentives in agro-processing a priority area

AGRICULTURE STRATEGY

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Saint Lucia continue to record growth in various sectors of the tourism industry

s the key economic pillar for future growth, considerable amount of attention has been paid to the tourism strategy. The aim is to increase stay over arrivals from 386,000 in 2017 to 541,000 by 2022.

Ten of the game changers in the first focus area, “Unlocking High Impact Tourism Project” are fully private sector driven with Government funding the Redevelopment of the Castries Central Market and the wider beautification of Castries as part of the OECS Regional Tourism Competitiveness Project.

As the cruise tourism market continues to expand, the Government has identified the Castries City Tourism Product as a priority for Saint Lucia with targeted investment sites and activities aimed at making downtown Castries more pleasant and attractive to tourists as well as to Saint Lucians.

Village Tourism will unfold in Gros Islet, Anse La Raye and Soufriere as the first beneficiaries of this new tourism product.

The key economic targets of the tourism sector strategy are to: • • •

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Increase GDP contributions to $1.9 billion by 2022 Attract investments of $3.5 billion by 2022 Create over 4,000 new jobs by 2022

With the start of the Banana Productivity Improvement Project in April 2017, acreage under banana cultivation has increased by 134% to just over 2,600 acres. The number of farms has grown from 286 to 740.

Similarly, a programme is being developed to expand cocoa production in order to increase cocoa exports and provide another source of income for farmers.

1. Rehabilitation of the Millennium Highway and West Coast Road 2. Reconstruction or rehabilitation of secondary and collector roads 3. Development of a cargo and container facility at Cul De Sac 4. Upgrade of the amenities and facilities for cruise at Port Castries 5. Development of Vieux Fort Cruise Port 6. Re-Development and expansion of Hewanorra International Airport to handle one million passengers by 2022.

CITIZEN SAFETY

In terms of food production there are opportunities for high yield, high value crops and non- traditional technologies like aquaponics and hydroponics, development of agro-processing in plantains and coconut water, and increased meat, poultry and egg production to meet the expected demand of a growing tourism sector.

The approach to citizen safety will include better policing, greater efficiency in the legal system, the rehabilitation of offenders and strengthening the justice system. Crime prevention and detection will benefit from a stronger police presence in “hot spot” areas and increase in foot and mobile patrols.

The Safe City CCTV project in Castries will receive $5.8 million, of which $1.8 million has been allocated for 2019/2020.

The Saint Lucia Marketing Board is being restructured to provide much needed support to farmers; as plans include strengthening the supply distribution chain linkages to provide farmers, intermediaries and consumers greater confidence in the sector.

The recently reopened forensic lab is working through the backlog of cases, while the re-opening of the Nyerah Criminal Court has resulted in 24% of old cases being cleared, with the target of 70% of backlog cases being cleared by year end.

INFRASTRUCTURE DEVELOPMENT STRATEGY

Rehabilitation of inmates and the reduction of recidivism of inmates at Bordelaise and wards at the Boys Training Centre will be aided with the offering of life skills, literacy and numeracy schooling, substance abuse counselling and CVQ certification programmes all in an effort to help them re-enter society with viable options for employment. The introduction of a parole system early in this financial year, is intended to support discharged inmates in transitioning into the community.

The goal is for a 45% reduction of serious crimes, by the end of the strategy term in 2022, and a 30% reduction in repeat offending by that same year.

Our roads, air and seaports face three common issues: poor physical condition, limited capacity and poor connectivity that makes the country highly vulnerable in the event of extreme weather conditions.

The goal is therefor to enhance Saint Lucia’s infrastructure to support economic activity in tourism, agriculture, retail and trade. There are six areas of priority which have been identified for infrastructure; namely:

TAX REFORMS U nder the theme “Growth by Empowerment for a Better Future” the Minister for Finance presented the Appropriation Bill 2019-2020 which focused on “opportunities that will propel every Saint Lucian to an acceptable standard of living and offer the chance to build wealth for themselves and their families.”

Personal Income Tax

Part of this plan, explained the Prime Minister, was the reform of the personal income tax system to make it simpler, more progressive and less burdensome.

In 2017 Government amended the housing tax regime to allow residential property owners to benefit from a three-year exemption on Land and House Tax

The Minister for Finance further noted that pensioners and persons 60 years and over, will not pay any tax on the first $31,000 of their income compared to $24,000 under the current regime.

Land and House Tax The three year moratorium on the payment of land and house tax commonly known as property tax, for residential properties will run until December 2019.

The Prime Minister explained that the new regime seeks to provide income tax relief to lower income earners.

“A large number of low-income employees will no longer be required to pay personal income tax, while others will benefit from reduced tax liabilities,” said PM Chastanet. “However, high income earners will be expected to pay more as a result of the progressive nature of the tax system. As such, the new regime is expected to be revenue neutral with no adverse impact on the government’s revenue collections from PAYE.” Expected to come into effect 1st January 2020, the new system will be as follows: • • •

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The personal allowance will be increased from $18,000 to $23,000. What this means is that for an average income earner, the first $23,000 of annual income will be tax free; There will be three (3) tax bands with the following rates: (i) The first $0 to $10,000 of chargeable income will be taxed at a rate of 10%, (ii) the next $10,001 to $20,000, at a tax rate of 20% and (ii) the remaining amounts above $20,000, at a tax rate of 30%; Limit the amount of total deductions that can be claimed up to a maximum or cap of $25,000 in any given year.

Restrict the number of allowable deductions to the following four (4) categories: Housing Deductions, Future & Financial Benefits, Medical Deductions and Child and Education Benefits.

Excise Tax on Fuel The excise tax rate on fuel has been set at $4.00 per gallon from March 2019. This has meant that since then, prices at the pump have been reduced to below $13.95 per gallon for both gasoline and diesel. During the course of this budget year, international oil price movements will be closely monitored and the price cap will be reviewed, if necessary with the goal of maintaining the $4.00 excise tax rate.

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These items will be phased out over a one year period commencing June 1, 2019 until May 31, 2020.

In the first instance, the Government will be phasing out the importation of: 1. All Styrofoam® food service containers including cups, plates, and hinged take-away containers and 2. Other selected Plastic cups, plates and containers.

New Look for William Peter Boulevard

aint Lucians can expect noticeable improvements and a possible re-purposing of the popular William Peter Boulevard soon. This initiative is being spearheaded by the Ministry of Tourism, through the OECS Regional Tourism Competitiveness Project (ORTCP).

During the last week of March, a consulting team was on site at the Boulevard where they were joined by Mayor of Castries, Mr. Peterson Francis.

Mayor Francis expressed his expectations for the Boulevard as a unique space that is free-flowing, pedestrian-friendly and encompasses a pavilion for hosting local talent and entertainment. He also confirmed that the physical and functional transformation is part of plans by the Government, to revitalize Castries.

Under this initiative, the Boulevard is not only expected to get a facelift, but also a fresh look that will include pedestrianization, storefront enhancements, beautification, and deliberate interventions to increase economic activity.

Saint Lucia Jazz kicks off May 5 Saint Lucia Jazz and New York’s Jazz at Lincoln Center have partnered to take you on a most exciting and authentic jazz journey for Saint Lucia Jazz 2019, May 5 to May 12. From north to south, the island will fire up with Caribbean Jazz, a nautical jazz excursion, Grammy® Award winning performers, and the first Gospel-inspired inspirational Jazz Brunch.

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Ledisi One of the many stellar acts for Saint Lucia Jazz

For this inaugural year of collaboration, Jazz at Lincoln Center has programmed a stellar lineup to include Christian McBride, Ledisi, Etienne Charles, Russell Hall, Gregory Porter, Dianne Reeves, Catherine Russell, Somi, The Baylor Project, Veronica Swift, members of the New Orleans Jazz Orchestra, and a host of musicians and collaborators from the Caribbean will perform throughout the week. In addition to world-class performances, the 2019 Saint Lucia Jazz Festival will feature “Artists in Education” initiatives including master classes, professional development, and live performance collaborations with Saint Lucia School of Music students and local jazz artists.

Visit Events Saint Lucia Instagram and FB pages for details

Ban on Styrofoam Products In a previous announcement Hon. Gale Rigobert indicated that studies have shown, food service containers made from Polystyrene and Expanded Polystyrene, also known as Styrofoam®, along with Plastics have continued to negatively affect the health of citizens and the cleanliness of our environment.

In this regard, the Department of Sustainable Development in partnership with other key agencies such as the Saint Lucia Solid Waste Management Authority, the Department of Economic Development, Ministry of Commerce, the Department of Finance and the Customs and Excise Department have over the last months worked towards the development of a suitable strategy to eliminate single use plastics, polystyrene and expanded polystyrene from our market and environment.

Thereafter, a ban on the use of these products will become effective immediately on June 1, 2020.

Saint Lucia to Benefit from Agreement Between Taiwan (ROC) and The Pan American Development Foundation (PADF) The Embassy of Saint Lucia to the United States recently participated in a signing ceremony between the Taipei Economic and Cultural Representative Office in the United States (TECRO) and the PanAmerican Development Foundation (PADF) that will amongst other things, support small-scale urban agriculture in Saint Lucia. H.E. Anton Edmunds, Saint Lucia’s Ambassador to the United States and Permanent Representative to the Organization of American States, during his intervention, commented, “We view this new initiative as a sign of Taiwan’s deep and continued interest in Saint Lucia’s economic development, particularly as it relates to supporting some of our most vulnerable sectors”.

City Car Wash in Progress Work continues in earnest for the establishment of a car wash in the vicinity of the George V Park in Castries.

The initiative is spearheaded by the MP for Castries- Central Hon. Sarah Flood Beaubrun and is expected to create employment for several young persons.

It is also intended to create a businesslike approach to the car washing which is sometimes done haphazardly around the city.

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