Statement by the Hon Prime Minister, Dr Timothy Harris at the Cabinet Press Conference on 29th June 2022 at the NEMA Headquarters

My fellow citizens and residents, in keeping with our good governance agenda, I take this opportunity to update you on matters of national importance.

This summer is shaping up to be a challenging one of hurricanes, surging inflation in the United States of America, Canada and Europe – our traditional source markets for goods and services. We also faced uncertainty regarding the developments relating to COVID-19 and now monkeypox has been found in St. Lucia.

Speaking of the deadly COVID-19 pandemic, the United Kingdom has entered the fifth wave with experts warning of imminent surges in cases. The Associated Press is reporting that the number of COVID-19-related deaths increased globally by 4% up to early June.  

With the high uncertainty in the global economy, it is very clear that our country needs competent and proven leadership now and in the future to weather the storm. Our people must do all that they can to protect themselves and avoid chaos and confusion which will set us backwards.

I am pleased to report that we continue to experience a reduction in major crimes in St Kitts and Nevis. Recent data reflect a further drop in crimes in our country.  For the period January 1st to 25th June 2022 697 crimes were reported. This represents a two (2%) per cent reduction in crimes over the corresponding period in 2021 when 714 crimes were reported. I extend commendation to all our security agencies for their contribution to this reduction. Our country is safer than any other time in the last twenty-five years. My government will continue to invest in our security infrastructure. In this regard, I am pleased to advise that major renovation works are to commence at the Charlestown Police Station, which is estimated to cost around $2.2 million.

In face of significant global risks, my government continues to manage well, and protect the poor and vulnerable in our society. 

Income Support Program 

 Our income support program continues to provide assistance to many who were displaced by COVID-19. The Ministry of Finance is reporting that 3120 persons have benefitted from this program for the year so far with $7.8 million paid out in 2022.

Taking into consideration payouts in 2021, the accumulated total payout for 2021 and 2022 is $15.8 million.

My government has also paid out $398,000 in disability support to 158 beneficiaries in 2022 so far. In 2021, a total payout of $486,500 was made to beneficiaries under Disability Support Program, bringing the accumulated total payout for 2021 and 2022 to date to $884,500. These are significant efforts by my administration to help families cope during these difficult times. 

Cost of Living Measures

In pursuing a policy of mitigating the rising cost of living, we were mindful that many families had yet to recover from the effects of COVID-19, and a critical part of the 2022 Budget approved by the Parliament involved the extension of several elements of relief to our people.

The elements of relief are consistent with our efforts to protect our people from spiralling cost of living caused by forces external to us, like the Russian/Ukraine war which has triggered a shortage of energy, agricultural inputs, food, etc. and subsequent high prices.

 My government has responded to bring relief to our people, ease their hardships etc.

The following cost of living measures has been taken to help consumers, and protect the poor and vulnerable.

1. Waiver of Payments for consumption of water for individuals who have been laid off or have experienced a reduction in earnings as a consequence of COVID-19.
2. Waiver of payments for the consumption of water by Farmers.
3. Removal of VAT and Import Duty from selected Hygiene Items.
4. Removal of Import Duty and Customs Service Charge on Selected Items including Vegetables, Fruits, Fruit Juices, Cough and Cold Preparations and Vitamin Supplements.
5. Reinstatement of the annual Import Duty exemption for 16 Tires (4 Tires per quarter), 4 pairs of Brake Pads and 3 pairs of Brake Shoes for “H” Passenger Buses.
6. Re-introduction of the duty-free allowance by non-commercial importers for a six-month period ending September 2022. 
7. Reduction of the remaining duties and taxes on the ingredients required for the production of $2.00 bread for a period of 6 months.
8. Placement of an eight-month cap on the freight cost that is used in the calculation of duties and taxes that are paid on the importation of goods for 20 and 40 foot Dry and Reefer Containers. 
9. Corporate Income Tax Reduction from 33 Percent to 25 Percent (Businesses that retain 75 percent of employees).
10. Unincorporated Business Tax Reduction from 4 percent to 2 percent.
11. Reduction of the Excise Tax on Fuel from $2.25 to $0.95. (Also, an increase of $0.30 on the Dealer’s Margin)
12. Continuation of the Poverty Alleviation Program, SAFE, SELF and other Social Safety Net and Welfare Programs.
13. Income Support Programme (Up to $1,000.00 per month).
14. Disabilities Support Programme ($600.00 per disabled child).
15. Fuel Subsidy Programme ($400.00 per Passenger/Taxi Drivers).
16. Moratorium on Payment for Electricity arrears, and waiver of fee for electricity reconnection. We could not continue the policy of putting families in darkness; the shame and agony surrounding this were not consistent with the compassionate society we encourage.  

Bringing Water to Our People

My government continues to deliver for the people. In particular, our plans to solve the perennial water problems in our country are being actioned. This is not a new project. Indeed, in December 2020 my government signed a contract with Bead LLC. to undertake a groundwater development project. The project had two components: (A) to remedy the water quality of Shadwell #2 well and (B) to drill a new well at Cayon. The site has already been identified from previous exploration work.

Given the recent water shortage, our Water Department has determined that well drilling at Cayon is more of a priority than the remediation of the well at Shadwell.

It is recommended that Bead not only complete the well in Cayon but also drill in the following areas Lodge, Molineux, Phillips, Saddlers, Dieppe Bay, Parsons, and Newton Ground.  We will also advance water availability by constructing desalination plants.

An adequate and safe water supply is one of the most basic infrastructures on which our socio-economic development rests. This matter cannot be postponed as the health and well-being of our country rests on our moving quickly to solve water problems.

Alternative Energy

The dramatic increase in the cost of fossil energy has reinforced the need for us to move ahead with plans to secure safer, cleaner and more reliable energy resources. St. Kitts and Nevis will lead the way with the build-out of our solar farm.  When completed we expect the cost of electricity to be significantly reduced, and higher reliability of energy supply.

My government has responded with compassion to the pleas of residential customers to do something to ease the pressure of electricity costs on their livelihoods. Consequently, my government has:

1. Instituted a moratorium or hold on arrears of electricity bills,
2. A freeze on disconnection of persons provided they pay their current portion of the bill,
3. Waiver of the electricity reconnection fee of $150.