*Volume 7 Number 18
For The Week Ending June 2nd 1979
7th Year' of Publication - 216th issue
FU4L SHORTAGE BRINGS ELECTRICITY CUT
There is insufficient fuel in Grenada to keep the electricity power
station running at needed capacity and, from Monday (4th),
Grenadians will suffer daily power cuts.
In an interview with NEWSLETTER today (2nd), Mr W R Lord, Manager
of Grenada Electricify Services Ltd (GES), said the Company is some
20% short of.its fuel requirements.. .As a result, a programme of
"load-shedding will be introduced from Monday (4th) and, on a
rotation.basis, areas in the iisland will be without electricity
every day for about four hours.
"I dQnt see the end of this situation", Mr Lord said, "because there
is a world wide shortage of oil. Our stocks come from the Esso
and that Company has made considerable cut-backs of supplies."
GES normally produces 70,000 units of electricity per day using 7
generators. These are two 750 kilowatt (Kw) plants, one 1000 Kw; ,
three 1400 Kw and one 1500 Kw, making a total capacity of 8200 Kw.
Mr Lord said, however, that the high atmospheric temperature at this
time of the year affects the generators and this results in a
capacity Loss of at least 15%.
The power station now has about 1000 barrels of fuel in stock,
which, if not suplemented, will be exhausted in 7 days time. It
is not likely that the fuel supply will run out entirely, but the
Produced & Printed by Aitaer & Cpythia M"rhes
P 0 Box 65, St.Georges, Grenada, Westindies
Pace 2 THE GRENADA NEWSLETTER Week Aing 2.6.79
Company-has been assured of only 800 of the 1000 barrels needed weekly
for full operation, And the proposed load-shedding programme is to keep
in tune with th.
A source close to the oil industry told NEWSLETTER that the Esso Company,
Suppliers of diesel to GES, announced a 10% cut-back regionally on
supplies of gasolene from April 1st. Also regionally, a 10% cut-
back was announced on supplies oftkerosene, diesel, bunker oil and
aviation fuel from May 1st. In Grenada, these cut-backs have been
made effective from June lst, with consequent adverse effects on the
operation of the electricity power station.
According to the source, these cut-backs result from the close down
of the Iranian oil industry during that country's political unrest
last year. Iran normally produces 2 million barrels of crude oil
daily and, when this was taken off the market, Saudi Arabia increased
its production by 1 million barrels a day in an effort to cushion.the
effect of the Iranian oil shortage.
There is still a shortfall, however, and, together with the rest of
the Eastern Caribbean, Grenada is now feeling the effects of the
shortage. And, the situation is worsened by the fact that the oil
companies are now switching their production to oil for winter heating,
thereby further reducing available supplies of regular fuels.
Another source with oil industry connections told NEWSLETTER that the
fuel supply situation in Grenada can only get worse. This source
said that, in spite of the fact that gasolene prices were up by
nearly 20% last year, consumption increased by 5.7%. During last
year, also, consumption of diesel fuel increased by 18.1%.
"During the first quarter of 1979", the source said, "increases in
consumption of all fuels were phenomenal, and, with the present cut-
back in supplies, the community must be adversely affected by
!shortages before the year is over." ,
In the mean time, supermarkets, garages, hotels, industry, hospitals
'and other major users of electricity are apprehensive over the load
shedding proposals of GES. The larger supermarkets and the General
hospitall have stand-by generators for which fuel is now available, but
Week Ending 2.6.79 THE GRENADA NEWSLETTER Page 3
the cut-back of supplies tb the power station is indicative of the
general situation, and it is only a matter of time before these stand
-by generators are insufficiently supplied with fuel.
Smaller groceries, garages and most homes depend exclusively on the
public power supply and, while rotating four-hour periods of power
cuts, area by area, may cause no more than inconvenience, any
increase in the period of load-shedding will cause serious time
losses in garages using power tools, and considerable loss of foods
in groceries and homes.
In the tourist industry, several of the larger hotels depend on
electricity to pump water from storage tanks to the guests' roc s.
Arrangements have been made that the power-cuts in the hotel area
will not be made until after noon when the demand for water is less.
There will, however, be the problem of the lack of air-conditioning,
a problem shared by the business community where rooms, designed to
be cooled artificially, have no windows for natural cooling.
There are two other areas in which power cuts could have serious
adverse effects on Grenada's economy. Both the Grenada
Cooperative Nutmeg Association .(GCNA) and the Grenada Cocoa
Association (GCA) have electrically operated equipment used to
prepare nutmegs and cocoa for export.
At two of its three processing stations, GCNA operates electrically
run nut-cracking machines. A spokesman for the Association told
NEWSLETTER that, on the, proposed rotation of four-hour power.cuts,
there will be little adverse effect on the industry, but, should
the power-cuts become more severe, the processing stations will have
to revert to hand cracking, with a consequent increase in the cost
In the cocoa industry, GCA, and some of the larger producers, have
electrically operated machines for drying and polishing the cocoa
beans. "If the power-cuts continue and are increased", one
agriculturist told NEWSLETTER, "we shall have to go back to the
primitive method of 'trampling' cocoa, which is far less efficient
and far more expensive"
THE GRENADA NEWSLETTER
1In an agreement reached between Trinidad & Tobago and Barbados last
month, the Trinidad & Tobago Oil Company (TRINTOC) is to supply Mobil
Oil of Barbados annually with an estimated 230,000 barrels of reformate
(special crude oil). When refined by Mobil, this crude oil will
guarantee Barbados supply of fuel.
NEWSLETTER is reliably informed that approaches have been made to the
Government of Trinidad & Tobago to give the smaller islands of the
Eastern Caribbean a similar guarantee by undertaking to have TRINTOC
provide the shortfall in these islands' present fuel supply. To
date, however, Trinidad & Tobago has not agreed to do this.
COST OF LIVING UP 18%
The cost of living in Grenada increased by over 18% last year, and
indications are that Grenadians will have a similar increase during
the current year.
This trend is indicated by figures compiled by the Commercial &
Industrial Workers Union (CIWU) and Jonas Browne & Hubbard Ltd in
furtherance cf a cost of living agreement between the Union and the
Company. It was agreed that a weekly "shopping basket" of a
family of four be drawn up and that the basis of cost of living
calculations be taken as the value of that "basket" on 14th February
Fifty-six items were chosen for the "basket" and these range from
local vegetables and fish through imported coffee, canned meats, razor
blades, rice, toilet paper and rum. They include, also, gasolene,
kerosene and weekly bus fares estimated to cover 66 miles, and the
total value of the "basket"on 14th February 1978 was EC$150.67.
(originally, the value was EC$152.87, but the value of bus fares was
amended from EC$11.00 to EC$8.80)
According to the agreement between the Union and the Company, employees
are paid a cost of living allowance based on the value of the "basket",
and the value is monitored every three months. On 14.5.78, 14.8.78
.nd 14.11.78, the "basket" was valued, respectively EC$163.82, EC$114.04
nd EC$174.23, which represented increases of 7.16%, 6.24% and .12%. On
Week Endfing 2.6.79
Week Ending 2.6.79 THE GRENADA NEWSLETTER Page 5
14,2.79, the "basket value was BC$178.03, making a monitory increase~
of BC$27.36 over the past 12 months, a cost of-living increase of
The latest monitoring of the "basket" took place on May 15th and thi
indicates that a similar trend is taking place this year. The
value of the "basket" then was EC$185.61, an increase of BC$7.58 ove
the February 14th Figure. This indicates an increase of 4.26%
over the three month period, a rate which will result in an annual
figure close to the 18.16% of the 1978/1979 year.
Hubbards/CIWtJ Cost of Living Index
Weekly "Food Basket" For Family Of Four
14.2.78 14.2.79 14.5.79
Crix B&icuits 1 Ib 1.32 1.69 1.69
Baking Flour 10 Ibs 6.38 6.64 6.54
Bread 1 loaf 1.25 1.25 1.25
Sugar white (Canadian) 4 Ibs 2.48 2.52 2.88
Sugar -brown 4 lbs 2.20 2.48 2.32
Rice 4 lbs 2.88 2.76 2.56
Cooking Oil 1 bottle 2.46 2.44 2.44
Pig Snouts 1 lb 1.74 2.24 2.25
Salted Beef 1 lb 2.40 2.65 2.79
Corned Beef 1 tin 2.76 2.92 3.08
Sardines 2 tins 1.64 2.44 2.44
Split Peas 1 lb .90 .72 1.04
Irish Potatoes 4 lbs 1.44 2.24 2.80
Milo lb 2.50 4.08 4.05
Cheese lb 1.43 1.94 1..I
Chicken 2% lbs 7.18 8.00 8.00
Eggs 1 doz 4.08 4.62 4.68
Condensed Milk 2 Tins 1.88 2.32 2.30
Powdered Milk (Eano) -21 lbs 7.60 8.59 8.52 4
Bath Soap (Lifebuoy) 2 cakes 1.10 1.78 1.78 i
Laundry Soap 2 cakes .80 1.10 1.18
Detergent (medium size) 1.35 1.46 1.46
Fresh Fish 3 Ibs 4.50 6.00 6.00
Evaporated Milk 2 tins 1.96 2.30 2.26
Grapefruit Juice (Libbys) 2 tins 3.64 4.24 3.84
Toothpaste (Colgate) large 2.32 2.45 2.59
Tomato Ketchup (Libbys) -12 oz 2.08 3.37 3.24
Onions 1 lb .84 .62 .99
Razor Blades 1 pkt .74 .57 1.04
Vim Cleaner (medium) 1 Tin 1.28 1.51 1.51
Kerosene 2 Gallons 4.30 4.82 6.32
Margarine 1 lb 2.29 3.04 2.79
Shortening 1 lb 2.28 2.48 2.61
Pork (stew) 2X lbs 4.75 5.50 5.50
Beef (stew 2 lbs 7.25 7.75 7.75
Salt 1 lb .20 .22 .25
Matches 2 Boxes .20 .24 .24
Curry l lb .93 ,94 .94
Black Pepper 1 oz .13 .15 .14
Toilet Paper 2 rolls 1.74 1.80 2.16
Tea lb 2.15 2.15 2.15
Coffee (Nestle) 2 ozk 5.05 6.83 5.44
Rum 26 ors 5.46 6.38 6.55
Carried Forward :- $111.86 $130.24 $13;.34
Page 6 THE GRENADA 4EBWSLB4tER I WeRE Bnding. 2.k.79
Hubbards /CIWU Cost of Living Indeh
Weekly "Food Basket" For Family Of Four
14.2.78 14.2.79 14.5.79
Brought Forward :- $111.86 $130.24 $132.34
Tomatoes 1 lb 1.73 2.10 2.43
Lettuce-- 2-lbs .. 2.80 5.60 4.86
Celery large bundle .49 .56 .56
Yams (Lisbon) 1 lb .70 .77 .84
Plantains 1 lb .56 .63 .70
Carrots 2 Ibs 3.46 4.20 4.20
Cabbage 2 Ibs 3.46 4.50 4.86
Macaroni- I lb 1.02 1.19 1.42
Chicken (backs & necks)- 3 lbs 2.10 2.28 2.79
Gasolene 5 Gallons 12.50 13.70 17.25
Bus Fares. Market to Grand
Mall (66 miles) 8.80 11.00 12.10
Tannias 1 lb .70 .70 .70
Chive & Thyme (large) .49 .56 .56
$150.67 $178.03 $185.61
Up 27.36 7.58
COARD SETS OUT MAIN GOALS TO CDB
Tbi Peoples' Revolutionary Government (PRG) aims to diversify both
domestic and export agricultural production. These are among the
goals set out by Minister of Finance Bernard Coard to the 9th Annual
General Meeting of the Board of Governors of the Caribbean Development
Bank, held in Barbados on April 25th and 26th last.
Mr Coard spoke on April 26th and, according to the text of his address,
now circulated, other goals are to diversify agricultural markets, to
expand the fishing industry, to establish agro-industries, improve the
earning capacity of tourism and develop the island's infrastructure.
The Minister said his Government had inherited "a most desperate and
chaotic economic situation", and he said financial mismanagement over
the years had reached staggering proportions. "In this regard",
he told the meeting, "it is well over 7 years since Grenadians.saw an
Auditor-General's report on the Government's Accounts, and a number
of years too since they last heard of a Public Accounts Committee".
Mr Coard told the Board of Governors there is a need for a regional
approach to oil prices, foreign investment, tourism development, and
Week Ending 2.6,49 tEB GRENADA MNWSLETTERB Page 7
regional air transport. He felt this approach is necessary also
towards fisheries development and questions of the Law of the Sea,
Speaking on industrial development, the Minister said it is necessary
to take seriously the question of allocation of industries. "Present
developments are rapidly leading towards a situation in.which, very
soon, each territory will have its own oil refinery, flour mill,
cement plant, textile mill, etc etc", he said, "and we will be
seeking to sell the surplus from these various endeavours to each
other !" Mr Coard thought the situation is becoming ridiculous
and needed to be sorted out urgently." -
A team from the Caribbean Development Bank is expected in Grenaoi
GERMAN AMBASSADOR VISITS
The Ambassador to Grenada of the Federal Republic of Germany,
Mr Karl-Heinz Rouette, arrived in the island on Thursday (31st) on
Mr Rouette, who is stationed.in Trinidad and who presented his
credentials on August 16th last to the then Governor-General, SAt
Leo DeGale, paid courtesy calls on Governor General Sir Paul Scoon
and on Prime Minister Maurice Bishop.
This is the Ambassador's third visit to Grenada since his arrival
in Trinidad on July llth last year, and his first since the March
Mr Rouette returns to Trinidad today (2nd) (96 w
EC$2 MILLION GOVERNMENT OVERDRAFT AUTHORIZED
The Minister of Finance, Mr Bernard Coard, has been authorised to
borrow up to sC$2 million in the form of overdrafts with the
commercial banks. A
This authority is contained in People'q Law Number 34/197~of M.ay
Page 8 THE GRENADA NEWSLETTER i ee0dkind .2.6.79?
124th, and it states that this authority is necessary since, on March
i8th, the last resolution empowering the Minister of Finance to operate
an overdraft, expired.
iIn an address to the Chamber of Commerce on April 24th, Mr Coard said
that, at the end of January last, the previous Government had exceeded
the authorised overdraft of BC$2 million by BC$20 thousand. In what
the Minister called a "remarkable achievement", the overdraft had been
reduced to EC$40 thousand by April 23rd.
GRENADA MILITARY FORCE DISBANDED
The Grenada Military Force, established in 1976 under the Grenada
Military Force Act, has been officially disbanded.
People's Law Number 32 of 1979 (dated 28th May) declares the
diibandment to be effective from March 13th, the day of the
revolution, and states that "any liability of the Government to
members of the Force is discharged from that date."
There is a proviso, however, under which the Minister of National
Security may a direct that a specific sum be paid as a gratuity to
a formAi member of the force in circumstances where the case is
considered exceptional and warrants the payment of such a gratuity."
At 31st December 1978, there were 140 officers and men on the pay
roll of the Grenada Defence Force. This number was made up of
121 Privates, 8 Corporals, 6 Sergeants, 1 Company Sergeant Major,
2 Captains, 1 Major and 1 Lieutenant Colonel. The monthly pay
sheet for the Force totaled EC$4-7,857.99, of which EC$44,500.49
went to the NCOs and Privates.
The Commanding Officer of the Grenada refence Force, Lieutenant
colonel Winston Masanto, is now among the political prisoners in
preventive detention. So is Major Fitz-Albert Abkaham, Captain
M Campbell and Sergeant Ian LaCrette. Listed among the detainees
is a "R Fraser" which may be Company Sergeant Major B. Fraser.
Among the detainees is also a C.Benjamin which may refer to Number
'5, Sergeait C Benjamin of the Defence Force. Captain Hyacinth
Wee*C Bodino.. Z 9 .. *tHE GoR" -W WSi.EtZu
Brisan was one of the two .casualties of the revolution. He was
killed on the morning of March 13th when he attempted to draw a gun
while surrounded by a detachment of the People's Revolutionary Army.
The last statistics given for banana shipments were in NEWSLETTER *
for the week ending May 12th and covered shipments up to that by
"Geestcrest" of May 8th.
Statistics are now available on the following :
Ship &* Boxes
22 4 fA
Weight (Ibs) (boxes)
34.849 pet lb
The price paid to producers by the Grenada Banana Cooperative Society
(GBCS) was EC 15 per pound on the weight of fruit received at the
boxing plants, but these weights are not yet available. '4
The following boxing plant weights
Ship & Date
have now been advised :-
Boxing Plant Weight (lba
Statistics on shiPments after that of "Geestland" of 21st May are
not yet available and, up to that shipment, statistics still to be
advised are the boxing plant weights for shipments of 8th, 15th and
?nr. or+ ro~ ?4 ~q? MI Ik
THE GRENADA NEMW TTB WelBing 2.$79
BANAN STATISTICS CQRRBCTION
NEWSLETTER has been advised that there is an error in the prices
previously recorded as being paid by Geest Industries Ltd on'the
shipments by "Geeststar", "Geestlandt and "Geesttide" on 17th, 24th
and 30th April.
Information originally given to NEWSLETTER was that the Geest prices
on these shipments were, respectively, ECC 23.466, EC% 23.824 and
ECO 23.828. The correct prices are now advised as ECO 33.466,
ECO 33.824 and ECC 33.828.
NEWSLETTER regrets any inconvenience caused.
CRUISE BINER CALLS
The last statistics covering cruise liner calls were reported in
NEWSLETTER for the week ending May 19th and covered calls upo
DiAing the week ending May 26th,
May 23rd "Carla C"
-24th "Ivan Franco"
S 26th "Fair Wind"
During the week ending June Ind,
May 29th "Maxim Gorki"
30th "Carla C"
there were three calls
there were two calls