P o Box 65
THE GREADA NEWSLETThR
For The Week Ending April 16th 1977
GRENADA' 81977 BUDGET
Revised Estimates show that, at 31st December 1976; the deficit
balance in Grenada's Consolidated Fund was over E0$8 million more than
was estimated when the Budget for 1976 was drawn up.
this was disclosed by figures laid before the House of Representatives
on April 6th by Mr George Hosten, Minister of Finance, in the course
of presenting the island's Budget for 1977, and Mr Hosten's figures
reveal that it is estimated that, at the end of this year, the deficit
balance in the Fund will exceed EC$24 million.
ln December 1975, when Mr Hosten presented a EC150.3 million Budget
for 1976, he disclosed that the Budget would provide an estimated
surplus of EC$81,690.00 and, as a result, the Consolidated Fund would
show a reduction by this amount from the estimated deficit balance
which existed at 31st December 1975.
Revised Estimates for 1975, however, have increased the deficit balance
at the end of that year by EC$2,696,702.00 to EC418,817,963.00, and the
financial situation deteriorated further when the operations of 1976
resulted, not in the estimated surplus of EC0$8.6 thousand, but in an
estimated deficit of EC08,020,392.00
As a result of this, the revised estimated deficit balance in the
Consolidated Find at 31st December 1976 is EC$24,059,963.00 and, with
the Budget for 1977 showing a small estimated surplus of EC$3,744.00,
the estimated deficit balance at the end of this year remains almost
unchanged at EC$24,056,119.00.
According to figures presented by the Minister of Finance, the original
estimate of local revenue for 1976 was exceeded by EC$2,002,740.00
and the revised figure under this head is now EC$28,300,000.00 .
Revenue from Grants and Loans, however, while originally estimated
at EC$24,146,640.00, realized only EC$2,992,000.000, a shortfall of
The 1977 Budget of EC#58,136,950.00 is being financed from Local
Revenue EW035,723,750 (not EC436,423,750.00 as stated in NEWSLETTER of
THE GRkNADA NEWSLETTER leekk Ending 16.4.77
week ending April 9th), E0C1,570,000.00 in "Special Reimbursements"
end E$20,843,200.00 in Grants and Loans (not ECO20,143,200.00 as
stated in NEWMBLTTER for week ending April 9th). This apparent
error of EC0700,000.00 resulted from the fact that, in the Financial
Summary of the Budget, money to be received from the International
Monetary Fund is included in "Local Revenue".
Grants and Loans which are expected will come from the International
Monetary Fund EC)700,000.00, British Development Aid (BDA)
Ec#5,978,200.00, the Canadian International Development Agency
(CIDA) EC$5,370,000,00, the European Development Fund (EDP)
EC$2,776,000.00, the Caribbean Development Bank EC$4,849,000.00,
the International Bank for Reconstruction & Development (IBRD)
EC$1,000,000.00 and "Other" sources EC)170,000.00.
The two biggest single items under Capital Expenditure are each
EC$2 million, one coming from the EDP for a road construction
programme, and the other from CIDA for water supply improvements.
Next in value is also from CIDA and is for EC$1,870,000.00 for
reconstruction of the Pearls Airport Terminal and Apron.
Of the EC$5.9 million to come from HDA, EC01,744,000.00 is for
reconstruction of road and bridges now being cwried out by the
British firm of Higga & Hill, two sums of EC$4 million go
respectively to runway improvements to Carriacou Airport and
replacement offices for the Ministry of Agriculture which was
destroyed by fire on March 26th 1976. Also from BDA will come
EC$1,076,000.00 for construction of a Junior Secondary School
and two Primary Schools.
Another Junior Secondary School is to be built with ECB$1 million
from the amount received from CIDA, and two housing schemes, one
for "low" income and the other for "medium" income, are to be
undertaken with funds from ODB, taking respectively ECG.6 million
and ECB1 million.
Details of the vote for the Ministry of Health & Housing indicate
that the EC$170,000.00 from "other" sources is for an X-Ray
machine donated by the University Scahol of Medicine, while
referencee to details of the vote for the Ministry of Environmental
THE GRENADA NEWSLETTER Week Ending 16.11.77
Development, Works & Sport shows that the EC$1 million from IBRD is
for a new airport, and that a token allocation of EC010 thousand has
been allocated from local revenue for "design studies for New Airport
with night landing facilities in collaboration with IBRD."
OPPOSITION LEADER ATTACKS BUDGET
Replying to the Budget speech of Mr George Hosten, Minister of Finance,
at the House of Representatives Meeting on April 6th, Mr Maurice
Bishop, Leader ao the Opposition, accused Government of having policies
which brutalisee and rape democratic traditions and conventions" of
the people of Grenada.
Mr Bishop said it had taken the Minister of Finance four months since
the General Elections in December to present a Budget for 1977, and
the Opposition regarded this as "a serious violation of the people's
rights of representation." "It is in the same light", said the
Leader of the Opposition, "that one must view the matter of the
Estimates. Under the Constitution of this country, the Estimates
should have been laid before the House no later then December 31st,
but the very first look the Opposition had at these Estimates was on
the night of April 3rd when they were delivered by uniformed policemen
Mr Bishop went on to say that what was given to the Opposition at that
time was only the Estimates of Expenditure, and the Estimates of
Revenue were not disclosed to the Opposition until late in a Finance
Committee Meeting which had taken place on April 4th.
"This we regard as a very serious violation of the rights of
Parliamentarians and a serious abuse of the workings of Parliament",
Mr Bishop said. "Were we in possession earlier of these Estimate,
we would have been in a position to have prepared an alternative
Budget ... to give our views as to how these $58 million should have
Turning to the details of the Budget, Mr Bishop expressed
dissatisfaction with financial allocations to the Ministry of
Agriculture, Forestry & Fisheries, the Ministry of Labour, Youth
Development Capital Investment Funding, and the Ministry of Social
TH! GRENADA ilEvSLLTTER Week ending 16.1t.77
Affairs, Community Development & Co-operatives.
"In a 58 million dollar budget", said Mr Bishop, "in a country that
thi Government claims is agricultural, EC$1.8 million has been
allocated in a recurrent form for agriculture". The Leader of
the Opposition said the Government "which still claims to be a labour
Government", had allocatedd in a iLC,58 oallion Budget, "less than EC$*
million in recurrent expenditure" to the Ministry of Labour.
"Looking also at the Ministry of Social Affairs, Community Development
& Co-operatives", said Mr Bishop, "we find that less than ECOj million
has been allocated in recurrent expenditure". "What does this tell
you about the priorities of this Government ?" he asked.
The Leader of the Opposition contrasted the "paltry sum of $9.60 a
month" allocated for welfare allowances to the aged and handicapped
(which, he said, had been raised in Finance Committee from $2.40 a
month under pressure from the Opposition) with salaries and
allowances to Members of the Governing Party.
He pointed out that, in addition to the 9 seats won by the Grenada
United Labour Party, that Party had appointed 10 Senators and, of
this total of 19 persons, one had been made Deputy-Speaker, one has
been made President of the Senate and, of the remaining 17, 16 have
been made either Ministers, Ministers of State or Parliamentary
Secretaries. "The Government's concern", said Mr Bishop, "was
to find a grazing ground for certain mill-stones that have been
hanging around their necks."
Turning to Mr Gairy's emoluments, ar Bishop said his salary is
EC$18,000.00 a year, and to this must be added his Entertainment
Allowance of EC$6,000.00 a yew Official Entertainment Allowance of
EC432,000.00 a year, Government Hospitality Allowance of EC$12,000.00
a year and EC$8,000.00 for Maintenance and Supplies of the Prime
Minister's Household at Mt Royal. "If Mt Royal needs to be
maintained and supplied to the tune of EC$700.00 a month", said the
Leader of the Opposition, "then we on this side of the House would
very much like to know from the Honourable Prime Minister how he
manages to maintain and supply it in this way."
THE GRENADA NEWSLETTER Veek Rnding 16.i.77
Mr Bishop said the Opposition should be told what is esxplLed to
Mt.Royal, what is used on the entertainment allowance, who gets
Government hospitality allowgpces, who uses the official entertainment
allowances, and who is in charge of voting these -allowancea.
"In a country like Grenada which, in terms of local revenue, can
speak only of EC$35 million'', aaid Mr Bishop, "it is scandalous that
any one m should be drawing that kind of salary and using up that
kind of allowance."
Other speakers from the Opposition aide of the House were Mr Bernard
Coard, Member for the Town of St.George, and Mr Herbert Blaize,
Member for Carriacou & petit Martinique. Mr Blaize was still
speaking when the House was adjourned to Monday 25th April.
EASTER WATER PARADE
Grenada'a second annual Easter Water Parade was declared open by Sir
Leo deGale on Saturday April 9th at a ceremony on the Carenage,
St.Georges attended by representatives of foreign governments,
denominational Heads, members of the Grenada Government and some 400
Grenadians and visitors.
Speaking at the ceremony, Prime Minister Gairy said he felt gratified
that, through the Easter Water Parade, Grenada was. gaining recognition
and respect from other countries, both large and small. "The fact
that so many of you have come from places both far and near", said
Mr Gairy, "is a clear manifestation of meaningful friendship and the
high esteem in which you hold my people, Government and myself,
The prime Minister said that Grenada is not afraid to take decisions
and, within the last 18 months, through his address to the United
Nations, Grenada had presented to the world Body a new dimension of
subjects, some of which, he thought, may be considered by limited
minds as "strange and extraneous". Mr Gairy said, however, that
these subjects were of extremely great significance and importance
"if we, the inhabitants of this small planet, earth, are to live with
greater understanding of ourselves and our environment, and foster a
THE GRENADA NEUSLETTER aeek Ending 16-J.7/
greater measure of lasting world peace.
Mr Gairy said that among the several matters raised in the UL was
e plea for a concept, acknowledgement and acceptance of a Universal
God. Grenada had also asked for an agency devoted to psycia
research including the 'Bermuda Triangle', and an international
exchange of knowledge on Unidentified Flying Objects (UFOs).
Referring to Tourism, Mr Gairy said Grenada depends to an
increasing large extend on this industry to boost its economy and
provide employment. "During 1973 and 1974", the Prime Minister
said, "the Tourist Industry suffered some major setbacks because
of malicious acts and propaganda projected to the outside world
by Opposition factions in their desperate attempts to try to be
the leaders of this country."
"In fact", continued Mr Gairy, "only a few weeks ago, some of the
leaders of the Jewel arm of the so-called 'Alliance' visited several
territories in the region trying to get the Governments and people
to isolate this beautiful country of ours". Mr Gairy thought
that isolation would damage the Tourist Industry and that all
Grenadians would be made to suffer "since they would be denied
the basic amenities of life."
"The enemies of progress have always placed their talents and their
intelligence in directions designed to villify the good name of
our land and people", said the Prime Minister, "and to stultify
the progressive programmes of our Government, but God, the great
Jehovah Ja, the Supreme Father of the Holy Cosmic has never
yielded to unholy noises, and victory has been realized."
Mr Gairy said the Easter Water Parede had been initiated so that
the rich potential of Grenada's beautiful beaches and scenic beauty
could be displayed during the festivities of the Easter Season,
thereby enhancing the island's tourist potential and increasing the
volume of business for businessmen. "This festival at Easter
time", he said, brings together many elements of what we have to
offer, aquatic sports in our tranquil waters, our delicious
cuisine with its variety of dishes from the forests, from the
ri.e-s-s and from the sea ..... and, most of all the genuine and
THE GRENADA NEWSLETTER Week Ending 16.4.77
friendly warmth of our people".
A Press Conference with Prime Minister Gairy scheduled for today (15th)
to give details of the activities of the Easter water Parade (which
comes to an end today officially) has been postponed to an
HAMG GLIDER ESCAPE DEATH
World champion hang-glider, Mark Barker, was hospitalized in Grenada
on April 9th after he plummeted into St.Georges inner harbour from a
height of some 200 feet.
Harker, who was doing an exhibition glide during opening ceremonies
of the Easter Water Parade, was being towed by a fast moving speed
boat when his glider's wings were seen to fold, dropping him into the
sea a scant 30 feet from the rocky western side of the harbour
In an exclusive interview with NEWSLETTER on Monday (1th), Mr Peter
Capella, Grenada' s Director of Tourism in Munich, Germany, said Harker
had agreed to come to Grenada and do the exhibition glide free of cost
following an invitation extended by Mr Capella.
Mr Capella said the accident had occurred when there had been nearly
400 feet of line between the boat and the glider, and the immediate
cause of the accident had been the crumpling of a wing-strut.
It is reported that Barker's injuries include several fractures of the
pelvis, a bruised bladder, internal bleeding and damage to the spine.
An emergency operation was performed in Gremada on the day of the
accident and Harker was flown out by helicopter on Monday (11th) to
Barbados where he-will be at the Queen Elizabeth Hospital until he
can be flown to a hospital in Germany.
Mike Harker is a United States citizen of German extract and is a
resident of California, U.S.A. He operates a hang-glider school
in Allgau, Bavaria, Germany, and, in addition to the hang-glider
championship, has held the world's speed ski record.
THE GRENADA NEWSLETTER Week Ending 16.4.77
GRMADA/VlENEZE DIPLOAIO RQEA'Mg
Grenada and Venezuela have diplomatic relations at the level of
ambassadors with effect from Thursday April 14th.
This was disclosed in a Government Information Service Press Release
which stated that a joint communique was being issued in both
St.Georges and Caracas. The full text of the communique reads :-
"The Government of Grenada and the Government of the Republic
of Venezuela for the purpose of strengthening the existing
bonds between their peoples, conscious of the ties of friendship
and co-operation that should guide their relations and the
desirability of formalizing them, have agreed to establish
diplomatic relations at the level of ambassadors."
0 A S PREPARATIONS
The Grenada Government Information Service announced today (15th)
that the geodesic-type dome which will house the 7th Regular
Session of the Organisation of American States, due to commence
in Grenada on April 14th, is nearing completion.
The dome, which is situated in the grounds of Holiday Inn on Grand
Anse beach, has floor space of 8,780 square feet and will provide
seating for 650. The skin of the dome is a heat and weather
resisting nylon compound and the entire structure is designed to
withstand wind of up to 110 mph.
Construction is now at the point where air conditioning is being
installed and when work on the dome is complete, the area will
The S.S."Geestcrest" called at Grenada this week to unload cargo
but loaded no bananas. It is understood that harvesting of
bananas was deferred this week as transport by trucks to the
St.Georges pier would have conflicted with arrangements for the
Easter Water Parade. (45 words)
CRUISE LINER CALLS (Week Ending 9.4.77)
April 3rd Vistajford 412 Passingers
Stella Oceanis 263 do.
4th Ivan Franco ) 636 do.
5th Cunard Counte"e' 747 do.
6th Stelle Oceania 165 do.
Mermoz 344 do.
9th Sun Viking 665 do. Alist Hughes
W######## 15 April 1977