By LR LiburdThe St. Kitts-Nevis Observer
Once again the contentious issue of Land for Debt Swap has raised its head, as Prime Minister Dr. the Hon. Timothy Harris has stated that it was a sham perpetrated by the then Labour Party Government.
“It was a sham and it always was from day one. It was a manipulation of the books, because when truth be told and you go deeper, who controls the bank? The government…majority shareholder! The government says, well, you take these debts off your books, five hundred, half a billion dollars worth of debt just so off the books.”
The Prime Minister made this allegation, among others, at his last monthly press conference when asked by a media representative for an update on the Land for Debt Swap issue.
He said the Land for Debt Swap arrangement was proving costly to his administration instead of assisting in alleviating the huge debt burden St. Kitts and Nevis is carrying.
“This government is receiving advice on how best we will be able to deal with the Land for Debt Swap without creating difficult realities for other institutions that have become involved in it.
“The reality of the debt is such that one, it is here, and two, it has entangled a lot of institutions such as the National Bank, such as Social Security and such as all of us. And therefore faced with that reality, if you look at the National Bank’s performance, one of the things that perhaps you did not know, is that with the smart arithmetics and accounting that played out to get a success story with the Land for Debt Swap, was that the government was paying the bank some 18 million dollars. They tell you the debt gone. They had something the called a dividend and instead of the National Bank paying the government a dividend, it was that the government was paying National Bank what it called and purports to be a dividend, costing this country every year 18-plus million dollars to sustain that Land for Debt Swap.”
Dr. Harris said that was the reality the Team Unity Government inherited. “And that is why we say we are giving reasonable thought to these things. That is why when some people come and they say hurry, hurry, you all should have done do that, they don’t know because we didn’t come and keep a song and dance about this inheritance.”
He charged that the Labour Party Government had established a company to “…Set up a company, and you set up another company and you say you company you owe the debt; and the company look to its shareholders in case of difficulties. Well who are the shareholders? The same shareholders are the government and the bank!
The allegation and comments did not sit well with the Leader of the Opposition, the Rt. Hon. Dr. Denzil Douglas, and Senator Nigel Carty.
Responding to PM Harris during an interview with a local media house, Dr. Douglas said, “That is absolute nonsense! What he doesn’t realise is that the Land for Debt Swap resulted in the creation of a private company jointly owned by the National Bank and being managed for development by the board set aside between these two entities, government and the National Bank, that the land would be made available for development.
He categorically stated that the land was neither sold nor developed. “If the land is not being developed, it means then there has to be an interest being paid on that amount of money that was involved…,” he added.
“The whole idea,” he explained, “is once you transfer the land to the bank, it comes off the book of the government, but is not yet sold. Until it is sold, there has to be an interest paid, though at a significant reduced interest rate.
“What he needs to do is to stop criticising the initiative and find ways of putting that land to use so that the land would be effectively be transferred and thus further reduce the burden that it has on the bank and with the government. That is what happened. He does not understand that!”
Also speaking on the matter was Senator Carty, who declared there was no surprise in Dr. Harris’ response to the question posed by the reporter.
“When the land for Debt Swap was being debated, Team Unity walked out of Parliament. I was very disappointed but not really surprised that the kind of response the Prime Minister of the country gave in response to the question that was put before him on the matter of the Land for Debt Swap.
“I think that the Prime Minister and, of course, his government have been playing a trick with the people for a very long time. I think people are now seeing through them. It was that same government while in opposition, who neglect staying in the Parliament, and voted on the Bill would have been able at that time when it was passed to prevent it from passing. They allowed it to pass, and now that they have been in government and have been telling people for the longest while, telling people while they were in opposition, that one of the first things they would do is to repeal the Land for Debt Swap Act.”
The former Education Minister claimed that after being office since February last year, the Prime Minister is now trying to hoodwink the nation.
“After some 15 months in government, what you are getting is a cock and bull story from the Prime Minister of the country.”
Carty said the truth should be told and stressed that the government does not intend to repeal the Land for Debt Swap Act.
“The Prime Minister should tell the people the truth about this matter. And the truth about this matter is that the government does not intend, never intend while they were in opposition and does not now intend while they are in government, to repeal the Land for Debt Swap because they understand economics.”
He inferred that the government understands what the labour Party Government did was a very practical and realistic approach to the issues the nation faced at the time and they also knew exactly what they were doing while in opposition.
“So, I was very disappointed but at the same time not surprised because, knowing who Timothy Harris is, this is what he will continue to do because he has very little respect for the people and their intelligence,” Carty added.
