MONTSERRAT-BUDGET-Montserrat CM delivers budget
BRADES, Montserrat, CMC - Chief Minister Dr Lowell Lewis Tuesday presented a EC$142.2 million (US$52.9 million) budget promising to attract foreign investment to this British Overseas Territory.

"To date we have treated investments as if was left to the investors to come to us and determine how when and where they will invest on island. We intend to take a more proactive approach by determining what investments are desired and in what sectors and aggressively target and market ourselves in these areas."

The Chief Minister also said the government expects a boost in its revenues this year from the partial amnesty on tax arrears.

"It is evident that several small businesses and self employed persons are experiencing difficulties at this time. This will require bold initiatives by government and willingness by the private sector to engage in some of these programmes.

"We will declare a partial amnesty on all income tax arrears outstanding in

2005 or before. This policy recognises that many businesses are having a difficult time putting their records together but would like to resolve their tax liability," he announced.

Lewis also said his administration would provide tax concessions, both import duties and income taxes, to local and foreign individuals and businesses engaged in building residential accommodation or engaged in a housing development programme on island.

Those properties, he said, must be for resale and must be built before 2012 and would provide funding for other important development areas.

"The overriding aim of this policy is to encourage the private sector to become involved in the provision of residential homes and reduce the extent of government's involvement in this activity.

"If this programme is successful, the government of Montserrat may be able to channel some of the funds from the sale of government owned houses to other critical areas such as agriculture, fishing and small business development."

Lewis said Montserrat's public debt was US$3.6 million (EC$9.65m) or 8.7 per cent, well within the corridors of normality established by the Monetary Council.

The figure in the overall 2008 budget represents an eight per cent increase over 2007 and would be funded by local initiatives of the island's government and monies promised by the British government.

The largest allocation, approximately 26 per cent of the budget, was set aside to finance projects within the Office of the Chief Minister, the Ministry of Finance and the Administration Department to deal with policy coordination, governance and civil service administration.

A quarter of the budgeted figure has been allocated to fund social services in the Ministries of Education and Health; 13 per cent towards agriculture, natural resources, environment and disaster preparedness and mitigation; while 12.5 percent assigned for statutory payments including loans, pensions, social security and tax refunds.

The Ministry of Communications and Works is in line to receive 12 per cent of the overall budget towards the maintenance of the island's infrastructure; and 11 percent allocated to fund the Judiciary and security.

Dr Lewis said that given the programmes and projects planned for 2008, a growth rate of 3.43 per cent is projected for this year. He said that takes into account the economic impact of greater access and transportation to the island, the effects of which he said he expects to begin in the second half of the year when the construction of a new sea port begins.

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