Prime Minister says manufacturing, tourist industries making a rebound

Prime Minister the Honourable Dr. Timothy Harris said the manufacturing plant is back to about 90 percent and hotels and guest houses are recalling some of their workers.
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BASSETERRE, St. Kitts – Although the second quarter of 2020 witnessed the closure of the Federation’s manufacturing plant and tourism industry, Prime Minister the Honourable Dr. Timothy Harris said during his opening remarks on “Leadership Matters,” that the manufacturing plant is back to about 90 percent and hotels and guest houses are recalling some of their workers.

“The COVID-19 Pandemic caused a dramatic decline in the economic growth around the world,” said the Prime Minister. “All countries – small, medium and big – were and still are negatively affected by the pandemic.

“To help our employees keep their heads above water, my Government formed several relief and support measures, including the waiver of water payments for six months (April to September) for those who suffered as a result of COVID-19,” he said. “There was a moratorium on electricity payments, and a moratorium to those with mortgages to commercial banks.

“To date, over 2,000 holders of mortgages valued at over $400 million have benefitted. We facilitated an additional 940 persons who lost incomes due to COVID-19. The Poverty Alleviation Programme (PAP) beneficiaries count peaked at about 5,800 as more households lost their breadwinners.

“Up to September 2020, my Government has paid out $23 million in Poverty Alleviation stipends to assist the poor and vulnerable in our midst,” said Dr. Harris. “In addition, with the $1,000 per month stimulus package, a further $20.6 million was paid by the Social Security Board over a three-month period (April to June).

“I record my appreciation to the employees of the Ministry of Sustainable Development, the Treasury Department, Social Security Board and the Labour Department for their fine work, which led to over $45 million of direct income support to persons in St. Kitts and Nevis, the majority of whom are in the lower-income brackets.

“Further support has come to our people from the Severance Fund. Although this was left in the red by the negligent former regime, my Government took the decision to put in $11.1 million to assist those who were eligible for severance payments. So far, 1,855 claims for severance payment have been received by the Labour Department and 620 have completed the necessary processing and are approved for payment.

“Significant claims have been processed from the Marriott Hotel, OTI, Park Hyatt, Four Seasons Resort, Nisbet Plantation, TDC Airlines, Caribelle Batik and Delisle Walwyn, (Kantours, Vacation Tours, Sky Safari), to name some entities in the tourism, manufacturing and construction industries.

“In sum, progress is being made. A caring Government is helping our people during this difficult time. We could have said that there was no money in the Severance Fund. Instead, we invested $11.1 million to help our people. Someone from Nevis WhatsApped to ask how much the NIA had put back into the Fund. The simple answer is that whether the workers are from Nevis or St. Kitts it is the Federal Government that is carrying the financial burden of the Fund.

The way forward for the Severance Fund

“We have sought the professional advice of an actuary on how we can make the Severance Fund more sustainable. We await the report. It will be discussed with the Tripartite Committee and the public before action is taken.

Regularization of STEP, GAE workers in process

“Against this background of the impact of COVID-19 on employment in St. Kitts and Nevis, we look in greater detail to the plans of the Government to institute reforms to enhance the productivity of our Skills Training Empowerment Programme (STEP). We also consider the Government Auxiliary Employees (GAEs) and the role of the Labour Department in assisting and stabilizing the labour market in St. Kitts and Nevis.

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