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For The Week Ending 27th April 1985
l1h Year of publication - - 316th Issue
Volume 13 Number 5
BLAIZE PRESENTS BUDGET
Prime Minister Herbert Blaize presented on April 26th his 1985 Budget t
amounting to nearly.EC3250 million, and divided alma t equally between
the recurrent and capital sectors.
Actual figures are EC$123.2 million for the recurrent ane Ec$126.7 mil-
lion for the capital, making a total of ECS249.8 million,
Nearly a quarter of recurrent revenue will come under the head ,"Budget-
ary Aid". Mr. Blaize did not specify where this would originate but
his address to parliament hints it will come from the United states
Agency for Internaiional Development (USAID),
'"USAID is to.be highly commended for its continuing budgetary support",.
he said, "and also for the major assistance in the capital programmi".
Largest recurrent revenue earner come under the head "Taxeb", and is
estimated to raise ECS44.7 million. The biggest items under this head
are I~nome Tax on individuals and the Stamp Duty which is charged on
imported goods, but the estimates on both of these show drops from last
The provisional outturn for 9&'. shows .nditOdual Income Tax at
EC$14.3 million; but it is expected that Government will collect only
ECS12.2 million under this head.
The reason is the Budget gives relief in the field of lucome Tax.
Spersonal'.ax free allowance has been increased from ECS1,500 to
EC32,500. Th're are increased allowances for wife and children,and
the top rate of 65% has been reduced to 50 .
SFOI NDED 17TH AGUST 1973
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page 2 :-: GREIADA NZE':SLETTER Week Ending_ 2/4/85
Concerning Stamp Duty, the peoples Revolutionary Governmen- charged this on
both the c.i.f. value and Imp.-.rt Duty on goods. It is now to be charged on
the c.i.f, value only, and is estimated to realise ECt14.4 million. "a dr6p of
over 6% from the 1984 figure. ,.
The prime Minister said his Government is"certain that, while these tax re-
lief measures appear to affect Government revenue adversely, they will have
a favourable result in that they will lead to enhanced economic activity.
"In the final analysis, the public finances will be a beneficiary of these
measures", he said, "and we are sticking our necks on the line to prove that
you can increase revenue even while you reduce taxes".
The largest recurrent expenditure is the Public Debt which will absorb ECl29
million. Next is Education with EC521.2 million and Health with EC$15.2 mil-
The supreme Court, whose provisional outturn of figures for both 1985 and 1984
both' show expenditure of e about half a million EC dollars, shows, in the 1985
estimates, an increase of nearly 3C,-.' to EC12.1 million. A margin note a-
gainst this head says "Trial Expenses" and probably refers to estimated ex-
|penses in the Maurice Bishop murder trial.
Of Capital Revenue, only ECS4.1 million or about 3% will come from local rev-
enue. External aid will supply EC$19.6 million in loans and C0Q102.9 million
-he Ministry of Works, with the International Airport 'ta complete and an ex-
tensive road programme, gets the overwhelmingly largest slice of the Capital
Budget with EC380.3 million. The Ministries of Agriculture and Tourism, and
of Health come next with appropriations of ECS19.4 million and 'EL:'U2.5 million
PETERiS MAKILS CRiYICISMS
'r. Marcel peters, Le-ader of the u position in: th H-use of Representatives,
(has criticized the operation of the national Insurance scheme (NIS) which was
!introduced during the regime of the peoples Revolutionary Governments
Speaking in the House on April 26, following the presentation of the 1985 Bud-
get by prime Minister and Minister of Finance Herbert Blaize, Mr. peters said
that, while NIS is a desirable thing, he could not understand the rush with
which the scheme had been introduced.
'"It was too hastily done", he said, "and so was not properly orarni red".
".- Leader of the Opposition said people'weie registe:-id for the scheme with-
t their correct ages 1'ein,' recorded and, while this creates no 9robems
I _ ~ _
Week Ending 27/4 85 T. i;L.[A NEWSLETTR Page 3
with the making of contributions to I. S, when the time comen for the coll-
ecting of claims, difficulties arise.
Some people who live far out in the country sometimes have to incur more.
expense than the claim they have to draw in order to get over all these
difficulties he said and he asked for an immediate investigation into the
operation of NIS.
Mr* peters said he noted, from the Budget presentation, that "dividends on
income"(sic) will now be free of tax.
"This means the shareholders of large companies will have no tax to pay on
dividends", he said, "but the poor farmers are still called upon to,pay. 1i
increase on their fertilizer's cost".
Mr. peters said he was taking time to say this because the budget document
could be meaningless if its deficiencies are not corrected. That document
has a lot of "nice figures", he said, but conditions 'conducive to all con-
cerned" must be created if the budget is to be successfully implemented.
The Leader of the Opposition drew attention'of the House to the vote under
which personal emoluments are provided for.
"I want to state that this budget did not really consider seriously person-
al emoluments for parliamentarians, Ministera of Government and, of course,
the Leader of the Opposition", he said.
Mr. peters said he was not bringing this matter up from a personal point oi
view but from the position of whoever is the Leader of the Opposition.
A Member of Parliament receives a "pittance" of EC$627,00 per month, Mr.
peters said, and the Parliamentarian is expected to visit his or her con-
stituency and make sure the needs of that constituence are taken care of
properly. Additionally, he said, no travelling allowance is given and he
thought this an infringement of human rights.
The Leader of the Oprposition said Parliamentarians are allowed to import
vehicles with 1C00C. ic.port duty concessions and he thought this proved con-
clusively, that the post of a Parliamenta4in is a "travelling post" which
should have a travelling allowance attached.
"I wish this Honourable House to remember", Mr. Peters said, "that the Lead-
er of the Opposition is not the Leader of the Opposition for the Constituen-
icy of St. Andrews North East 'his Constituency) but is the Leader of the O.
Position for Grenada, Carriacou and petit Martinique".
;Mr. peters said that, in the light of this, the Leader of the Opposition,
lwho is not in receipt of a travelling allowance, is the victim of an in-
fringement of human rights.
pa- 4 TH- GRL[;ADA NE1SLETTER Week E~,d. n_ 27/4/85
THE TAX RELIEF ,LASURES
presenting Grenada's 1985 Budget on April 26th, Prime Minister and Minister
of Finance$ Herbert Blaize, outlined a number of measures which, he said,
are designed to bring teliof to Grenadians.
The first is a reduction on the export duty charged on agricultural produce
which reduction ho acid is of the order of 25,.
"We have been able to do this by simplifying the present export rate struct-
ure from an ad valorum to a specific charge", he said, "so that farmers will
gain fully from any increase in prices without having to share with Govera-
a-wjil- ucsh i t ^ ia)fd tLonrfits,
I he prime Minister set out the new rates as follows:-
reduced from .19 per pound to 15p per pound
reduced from $1.29 per pound to '97 per pound
reduced from 50 per pound to 38.pe" pound
r--iuced from 15t per 100 pounds to 11.25o per 100
The Government hope .to progressively eliminate the Expert Duty tax over a per.
iod of four year,, the Prime Minister said.
Mr. Blaise dealt next with Income Tax and said it has been decided t2 increase
!the basic tax free allowance from $1,500.00 to EC$2,500.00
Te announced also the following increased allowances:-
1st Child allowance
2nd Child allowance
3rd Child allowance
increased from B600.00 to $1,200.00
increased from 6r50.00 to $1,000.00
increased from $650.00 to S 800,00
increased from $350.00 to$ 500.00
>"In addition", the Prime 1Minister said, "the present structure which provides
Sfor eleven 'bands* has been reduced to only six 'bands, with a threshold rov-
ing from zero doll-rs to $1,000.00"
2ne old structure of eleven 'bands'
For the first
For the next
For the next
For the next
For the next
For the next
For the next
For the next
For the next
For the next
On excess over
TLEE G-.EN:ADA NEWSLETTER
The new structure of six 'bands' is:-
On the first $1,000.00
On the next $1,001.00 to 36,000.00
SOn' the next. 6,001.00 to $11,000.00
On the next $11,001.00 to ,16,-00000
O the next $16,001.00 to $21,00000
On the next $21,001.00 to $30,00000.0
On excess over $30,QO0000
The 'prime Minister said the effect of the new allowances and structure is
best appr'iiated by examination of the following cases of persons with cer-
tain levels of income:-
Single person with no children
Single person with one child
Married person with no children
Married person with one child ',
Married person with two children
Single person with no.children
Single person with one child
Married person with'no children
Married person with one child
Married person with two.children
Married person with three children
Single person with no children
Single person with one child
Married person with no children
-Married person with One child
Married person with two children
Married person with three children
"Companies have not been forgotten"
was felt that some relief should be
in the Company Tax from 55% to 50%,
Moreover, as a means of stimulating
, the Prime Minister said, "firstly, it
given to Companies by means of reduction
a revenue loss of approximately $350,000.
investment by ordinary Grenadian in
Companies or overall development, and bringing dividend income in line with
interest income, which is currently exempt from income tax, Government has
decided to make 'dividend income free from Income Tax.
Mr. Blaize said relief will be given also with reference to the stamp duty
charged bn imported goods. This duty he said will now be calculated and
charged only on the c.i.f. 'value of goods and not on the c.i.f. value plus
import duty, the mode which was introduced in 1983.
SThis measure is expected to have some impact on the cost of livIng, the Prime
SMinister said, but the gain to taxpayers is being partially offset by a 15?
increase in the Extra-regional tariff on some 90 items as a result of a
W.e-k Ending 27/4F85
Week Ending 27/4/85 THE GR.,DA rJEWSLETTR age 6
decision of the Commonwealth Caribbean Heads of Government meeting in Nassau
in July 1984. This increase, he said, is being effected for the promotion of
The prime Minister said the Budget represents An effort by Government to re-
lieve Grenadians from the "heavy burden of taxation", and "history has shown
that a free and unshackled people .are generally .blessed with the incentive,
energy and enthusiasm i' produce.
"TJe recogpise that the 1985 Budget represents only the first steps in our at-
tempt to revilatise and resuscitate the economy of Grenada", he said. "We
appreciate that, there is a lot yet to be done and that- complacency is to be
t.;oided at all costs".
Mr. Blaize took the-opportunity to call on the people of Grenada, Carriacou
and Petit Martinique to greater productivity, so that, under God's guidance,
Sthe future growth and prosperity of the country will be assured.
SENATOR PFILBKRT CHARGEDD
senator Franklyn :;l.ilbert, 52, was on weekend of April 27th, free on an
EC$6,000.00 bail bond.
Mr. philbert was arrested on Arril 25th, kept in Police custody overnight
and, on April 26th was chSrgod before Chief Migistrate Lyle St. Paul on four
&ounts of "stealing by reason of his employment".
Under the peoples Revolutionary Government, Mr. Philbert was a civil ser-~nt
in the.Ministry of Labour and was.Acting Labour Commissioner. Following the
October 1983 military intervention, he quit that post and, for a while was'.
-ssociated with the Grenada United Labour Party (GULP) of sir Eric Gairy.
When Mr. Marcel Peters, Gairy's sole winning candidate in the December 1984
General Elections, left GULP and launched the'Grennda Democratic Labour Par-
ty, iMr. Phi!.2ert became a foundation member and was appointed to the Grenada
senate by Mr. peters,.
SMr. philbert is renpr-sented in this matter by Grenadian barrister Mr. Fennis
Augustine, Grenada's High Commissioner in London during the regime of the.
Peoples Revolutionary Government.
The accused man is to appear in Court on May [15tI to answer the charge which
carries a maximum penalty of 7 years imprisonment.
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Week Ending '2/4/4 THE GRENADA NEWSLETTER Page 7
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BISHOP ';U'.DE TILIAL IN JUNE (?)
Sir Archibald Nedd, Chief Justice of Grenada whose award by the Queen of a
knighthood has been announced, told :,.jSLETTER on April 19th it is likely
the persons accused of the murder of Prime Minister Maurice Bishop and oth-
ers may be brought to trial at the June Assizes.
"Negotiations have reached a stage where I am now certain that I can assign
6 or 7 barristers to the Defence", he said.
Nineteen persons, including Bernard Coard, Former Deputy Prime Minister in
the Peoples Revolutionary Government (PRG), and his Jamaican wife, phyllis,
are accused of killing Bishop and 10 others: the charges arise out of in-
cidents at Fort George on 19th October 1983, 6 days before the United State:
At the Frcliminary Inquiry before the Magistrate, the accused were defended
by a team of 7 Jamaican barristers under the leadership of Mr. Howard Hamil-
ton, Q.C. That inquiry was concluded on August 3rd last year, the 19 were
committed to stand trial and, since then because they are unable financially
to retain Counsel themselves, the Court has been trying to find barristers
to defend them.
The Jamaican team was-the accused "counsel of their choice" but acceptable
arrangements were not reached with them and Sir Archibald's announcement in-
dicates he has found other barristers who are willing to defend the accused.
The Chief Justice did not name the Defence team but said 2 Grernaian barris-
ters would be included on it. That team will be assif'ed to defend 17 of
the accused. Bernard and phyllis Coprd have said they will retain their
In addition to the Coards, the accused include Hudson Austin, General of the
peoples Revolutionary Army, several of his officers and prominent members of
U.S. RESPOND I .!CUILD "IU!cTAr JrJLOUS
I Should Grenada's security be threatened after the withdrawal of the United
States military, scheduled for later this year, Washington's response would
I This declaration was made on April 11th at a press Conference in Grenada by
t Rear Admiral R.R. Hedges, Commanding Officer of United States Forces in the
"We have men and machines that are mobilised on a continuous basis", he said,
"not just for Grenada, but for the safety of the United states of America.
jWe are always readj. -continued-
----- ~--------- ------- -~--------
Admiral Hedges said Grenada is now going through a normalisationn process"
and, to the U.S., this means that the country will "fit in" with all the is-
lands of the Eastern Caribbean*
The United States Acncy for International Development (USAID) is "alive and
well" and will continue in Grenada, he said, the State Department and the Em-
bassy presence will be continued, and there will be a Military Assistance Pro-
Sgramme similar to the other Caribbean islands.
"It has been our objective to make sure that the Police.Forces are alive and
well in all of theislands", he said, "to train the Special Services Unit
(SSU) in all the islands, to make sure that each has a Coast Guard capabil-
-ty, We will continue to strengthen that as we go along and we will contin-
de with the training".
Admiral Hedges said the United States is well aware that if the training al-
ready done is not reinforced, it would be a waste of training and there is
no intention of permitting such a waste.
The Admiral said there will be a Military Exercise in the Eastern Caribbean
in September. The island on which this exercise will take place has not yet
been decided but the SSU of St. -itts/Nevis, Antigua, Dominica, St. Lucia,
St. Vincent and Gru:nada ,wijl all take part.
Barbados and Jamaica:have Defence Forces and not SSU, he said, and if those
Sisindo wish to take part in the exercise, they would be welcome.
WI'TTHD;'7," AL PL.Af UNlHANGED
Rear Admiral R.R. Hedges, Cr.mm-ending Officer of United States Forces in the
Caribbean, on April 11th denied at a press Conference in Grenada that all
United States miliLtr-: personnel would be withdrawn from Grenada on A-pril
Admiral Hed,es said the report to this effect.was false and there has beei
no change in the plan for a phased withdrawal which will be completed on June
"The bulk of the Forces will be gone by June", he said, "but the U.S. Army
is here at least till September because we have a training mission and we
Swill continue to train until then when we envision our training aspert will
iThe Admiral said there will not be any "mass exodus" of troops at any time.
Military planes come to Grenada from the TJnited Stateq every week a.r, as
personnel are no lorger required c0: the island, they are se.t back home, he
id, and this has been going o. for some time.
W--ek E-:'ding 27/4/, 5
TEC GrNIIAD. NE'ISLZITER "
;oeek Ending 27/4,'/05 T'zE I-' DA !iE'2LETTER Page 9
--_ ---- -- --<-
Admiral HIdges said he is convinced the 2oyal Grenada police Force has
been properly trained and, under Commissioner of police Russel Toppin, Gre-
nada will have a very viable police Force.
"It is probably difficult for the police FoDrc= to assert themselves as long
as the Caribbean peacekeeping Force and the American Military presence are
on the island", he said, "they obviously, have been the dominating Force".
He felt, however, that as the visiting Forces are phased out of the island,
the Royal Grenada Police Force will show that it is a viable Force dedicat-
ed to law and order.,
"What I am saying is that you must throw them into the sea so that they cai
swim", he said.
GRENADA, A REVIEW
A phased withdrawal of United States troops from Grenada officially began
on April 12th and will be completed on June 12th.
The U.S. Military presence on the island began on October 25th 1983 when, in
response to a r-qust from Governor General Sir Paul Scoon, President
Reagan diverted to the Caribbean some 6,000 troops bound for the Middle
Code named "Operation Fury", the U.S. troops undertook a rescue mission
which, in a 3-day action, wrested the island from the Marxist groD whose
internal dissentions had resulted in the execution of the Prime Minister,
some members of his Cabinet, and the massacre of scores of islanders.
Within 2 months, these combat troops had been withdrawn, leaving some 100
Military Policemen with support personnel. These, too, will be out of the
island shortly and they leave behind a country slowly rightirg itself aft-er
the trauma of its experiences.
Last December, Grtnndians went to the polls for the first time in 8 years
and gave a landslide victory to the moderate party cf Prime Minister Herbert
Blaize. Since 1967, the Gren-adian political scene had been dominated by
Sir Eric Gairy whose excesses were exposed by a Commission of Inquiry 11
years ago into the breakdown of law and order in the island and police brut-
Sir Eric's misrule was the p..rfect background for the ascendency of the
SMarxist New Jewel Movement of Maurice Eishop which had its beginnings in
19?3, and there was popular support when Bishop overthrew Sir Eric in an al-
most bloodless revolution in 1979.
i However, increasing repression by Bishop's Government led to gro'ring popular
disenchantment, and a power struggle with his deputy Bernard Coard (now in
g 10 'THE rENDAINEWSLETTER Wek Ending 27/i/,95
jail awaiting trial for murder), led to th ac.'assinations and murders which
preceded the United States military intervention*'
That intervention left political wounds, the scars of which are still evident.
"he first relates to relations between Grenada and the United Kin gdom.
The British Government, probably piqued because the Governor General's plea
.for help was. made to I' ashington and not London, held aloof from and percept-
Sibly. frowned on the U.S. action in Grenada. And, matters were not helped
t hen Secretary General of the Commonwealth Secretariat,. Sir "Sonny" Ramphal,
came to Grenada and announced that the Commonwealth was willing to help in
the rebuilding of Grcnad-, prc ided the Americans were asked to leave.
Far from seeing them as an occupying force, Grenadians regard the American
troops as firm friends. The British Government seems, eventually, to have
come to a different assessment of the situation and has taken steps to "mend
the fences". Substantial grants and interest frse loans have been made
available and the Queen will visit the island in October.
SEarly last year, Baroness Young, Minister in the Foreign and Commonwealth
Office, visited Grenada and was asked how she would then describe her Gov-
ernment's attitude to the island.
"I think what is important now is not to look back but todlook fort.rd", she
said, "and we are looking forward to the reconstruction of Grenada".
In the Caribbean, since fhe Intervention, relations have remained col be-
tween Grenada and her island neighbour, Trinidad.
Together.with te .Americans, a Peacekeeping Porce, made up of units from
several Lnglish sp-.:-.king iciands, came to Grenada and this Force (to be with--
drawn later this year), has remained here until now.
But, Trinidad'.s Prime Minister George Chambers re-ired the invitation to
take part in the op-rntion and this hurt Grencdians who ha-e strong cultural,
busint.ss and f'-mily ties with Trinidad.
Since Grenada's General Elections last December,, there has been some that in
these relations but a return to normal is not yet in z`ght.
Whnt is returning to normal is the important tourist industry with new hotels
being built and old ones expanAing. There is a promise too of industrial
development with the visit to Grenada on April 12th of Puerto Rico's Govern-
or Raphael Hernandes Colon.
Accompanied by representatives of several big manufacturers already operat-,
ing in pverto Rico, he had talks with Prime Minister Blaize relative to the
establishment of industrial plants in Grenada.
Week Ending 27/4/85 THE GlREN;D., NEWSLETTER Page 11
"We are here for a meeting with Prime Minister Blaize regarding twin pro-
jects that will be done between Puerto Rico and Grenada", he said. "It is
a gesture of Caribbean solidarity and we hope these projects will go forward
The security of the island is vital if these projects are to succeed and
some reservations have been expressed by Grenadians over the withdrawal of
the troops at this time.
However, Commissioner of Police Russel Toppin is satisfied with the train-
ing his new Force has received and, in an interview on April 11th, Rear Ad-
miral R.,. Hedges, Commanding Officer of.the United Stages Farces in the.
Caribb&an, said the, Royal Grenada police Force will prove itself viable
when the visiting Forces leave, .
"You have to throw them into the sea so that:they. can swim", he said.
THE CUB.AN CLAIM
Mr. Ben Jones, Minister of Legal Affairs in the Grenada Government, told
NEWSLETTER'on April 16th that "differences of opinion" which may exist in
his Government with reference to a claim made by Cuba are no wrore than the
normal course of affairs.
Mr. Jones was responding to a recent report that there is a division of op-
inion in the Government as to how an action brought by the Cuban Government
is to be handled.
An informed source close to the Government said that, in May 1984, the Cubqn.
Government called on Grenada's Interim Government to .return hundreds of
pieces of construction equipment sent .by Cuba to the peoples Revolutionary
Government for the building of: the International Airport at point, Saline.
What the Interim Government's response was id not known bit, on 20th August
1984, the Cubnn Government filed a suijt in the Grenada Supreme Court for the
return of the equipment valued at over 5 million United Statea dollars.
-Mr. Jones confirmed that his Ministry has the matter under consideration bat
said any .l'differencea of opinion" merely reflect discussions which have tak-
"A matter of this magnitude generates a great deal of discussion within
Government", ne said, "and a 'number of questions and opinions have been raids-
ed and expressedl,
The Minister said all these questions and opinions must be considered and
weighed if the Government is to come to the best decision,
Page 12 i'T G:l D,. NE'VSL:TTER Week Ending 27/-./85
The Caban case is reing handled by two Jamaican Barristers, Mr. Dudley
Thompson, Q.C., and Ms. Shirley playfair, and associated with them is Mr.
Carol Bristol, St. Lucia born Barrister practicing in Grenada.
Some preliminary hearings in this matter have already been taken bef6rea
Judge in Chambers but a date has not yet been fixed for hearing in open
.STATE F'OiS TC BE CUT UP
Minister of Lands, George Brizan, disclosed in parliament that the Govern-
ment has some :,500 acres of land which it intends to cut up into "model
farms" under private ownership.
This .land', now'divided into 25 farms, came into Government ownership by
forced acquisition by both the Government of sir Eric Gairy and Maurice
Bishop's Peoples Revolutionary Gcvernment, and Mr. Brizan's statement came
in reply to a question tabled by Leader of the Opposition, Mr. Marcel Pet-
Among other thin-s, Mr. peters wanted to know whether Government intends
to "fragment" the state-owned farms and into what size sub-divisions they
will be cut.
"I prefer not to use the word 'fragment, ", Mr. Brizan said. "The word
'fragment' can be quite misleading in terms of agricultural development,".
Government will design a programme under which the estates will be cut up
into family operated farms in size from 5 to 15 acres, he said, the qsize.
depending on soil, rainfall, crop and toprography.
"Three types of-person, -generally, will qualify 'to manage, operate and, ul-
timately, own a model farm", Mr.' Btizan said. governmentt will give prior
ity to workers on the state farms, small farmers who need moreland and
graduates of the' Mirabeau Farm school".
Government will make these mnodel-farms available on a leasehold basis, poss-
ibly on a term of 10 to 15 years, he said, and .iyments towards the lease
will be applied to the purchase of equity in the farm. A. project Manage-
ment Unit will be established, he continued, to manage the creation and sup-
ervision of model farms and to provide certain central common services.
In an interview in March, the Minister gave details of the state-owned
farms. He said then that, in 1983, there had been 34 of these farms with
a total acreage of 7,156 and, in 1984, 9 of these had been returned to their
lusterday, in parliament, he gave the 1983 figure as 35 farms and safl in
i984, 10 had been returned to their owners.
.W3ek Ending 27'/4/85 THi GRENAD NEWSLETTER Page ,13
In an interview on April 27th, Mr. Eri.zn said the difference between his
previous 'irures and those given on April l 26th resulted from the fact that,
in March, one estate, "Beau Sejour", had been "in dispute" and had not been
taken into account.
With reference to the 25 remaining farms, in his March interview, Mr. Briz-
an gave a total acreage of 4,159 and said that, of these the owners of 12
had not been paid. Of th'e 12, totalling 2,559 acres, 6 owners want their
land back and 6 want to be paid.
In Parliament on April 26th the Minister said that, over the period 1981 to
1983, Grenada Farms Corporation, the organisation managing the state farms,
lost ECQ3.4 million including subsidies.
"The state Farm experiment", he said, "has been a financial failure.
NIS NbLDS REVIEW,
Grenada's Ministry of Social Security has been giving particular attention
to the operation of the National Insurance Scheme (NIS) which wasa ntroduer-
by the peoples Revolutionary Government in April 1985.
This was disclosed by Dr,. Francis Alexis, Minister for Social Security., as
he replied in parliament on April 26th to a question tabled by the Leader o~
the Opposition Mr. Marcel peters.
"The entire operation of NIS has been exercising the mind of the Ministry
:for some time now", he said, "particularly as regards benefits and the dis-
tribution of contributions as between employer and employee",
Mr. peters' question inquired, among other things, whether the Ministry con-
templated setting up a committee comprising members of the Trade Union Coun-
cil (TUC) and "other organizations representing workers" to .examine the op-
erations of NIS with emphasis on "alleviating the m-an" hardships experienced
by contributors ...,
Dr. Alexis said the Ministry had discuss,: this matter with both thf TUC
and the Employers Federation and both organisations have expressed the need
for a thorough review of certain aspects of NIS.
The law setting up NIS demands that, before the rate of contribution can be
* altered, the Minister said, there must te anacatuaril oa r and the Inter-
national Labour Organisation (ILO) has been asked for technical assistance
in this connection.
"It has been less than 24 houre",-he said, "nince I have received further
communication from ILO indicating both a willingness .o participate in a
review. of the scheme and t'o identify resource personnel co make the review
possible and menigfu". -cntiued-
page 14 TL GRENADA NJSLLTTER Week E: ing 27/4/85
Before making proposalsto Cabinet for amenoing NIS. Dr. Alexis said, his
Ministry will have further 'discussions with TUG and the Employers Federa-
As operated at present, there is a contribution to the Scheme of 8% of the
employees salary paid on a 50/50 basis by the employee and employer. These
contributions finance benefits under the heads of Sickness, Invalidity,
Maternity, Survivors Benefit and Funeral Grant.
At age 60, an employee receives a pension of 30'% of his average annual in-
surable. earnings plus an addition, on a fixed basis for weekly con:tribu-
tions made in,excess, of 500-
A Funeral Grant of ECOO00 is payable on the death of a person who is eli-
gible for or in receipt of Sickness, Maternity,~ Invalidity or Age benefits.
LOCAL GOVERNMENT CONSULTATIONSS"
The'Grenada Ministry of Local Government on April 20th wound up a series
of public "consultationae in a move to reestablish local Government in the
Dr. Francis Alexis, Minister for local Government, told NEWSLETTLH that
this meeting was different from those already held.
"The previous meetings were held in different specific locations for the
people in those locutions", he said, "but today's workshop has represent-
atxves from all over the island".
Dr. Alexis said the only areas not represented were Grenada's sister is-
lands of Carriacou and petit IMartinique where similar workshops are to be
The Minister said tie i.eetings have been-very useful in that they have per-
-itted Government to ki v- the wishes of the public with respect to the form
local Government should take when it is reintroduced
"This exercise has pointed out to us the mistel-es w. would have made if we
had not had these consultations", he said, "and an example of this is the.
modification we have had to make concerning village councils".
The Government had intended toqhave a "multiplicitylof these Councils,. Dr.
:Alexis said, butit has become obvious the public things this would be "too
;much confusing". The total proposed number of village councils has now
been whittled down frcn over 100 to 52, he said.
!Other -a s ji which the public has, influenced modifications are in the
establishment of District BoLr-d and the provision for CF-tral Government
itc nominate members to ical Government bodies- -conti
Week Ending 27/4/85 TH GRLJID,, NE;J2 LETER Page 15
S"There was some doubt in the Ministry as to whether we should have District
Boards", Dr. Alexis said, 'but the people have made it clear they want Dis-
trict Boards. As far as nominations to the Boards are concerned, we were
thinking of some Central Government nominations, but the people have raised
doubts about this and it has been dropped from our proposal".
The Minister said he expected to take his proposals to Cabinet within a
month. He could not say how long Cabinet will take to consider the matter
but, it is important and he does not expect it to be rushed through.
Dr* Alexis said some difficulty is being experienced with having the draft
legislation prepared. Technical aid has been sought, there have been some
hitches but efforts are continuing.
Grenada has not had Local Government since 1969. At that time, the capital
city, St. George's,-was a municipality and there were District Boards in ali
In that year, addressing the Annual Conference of Local Government bodies,
Mr. Herbert Preudhomme, then Minister for Local Government in the Grenada
United Labour Party (GULP) Government of Sir Eric Gairy, announced his Gov-
ernment had decided to dissolve all local Government bodies.
Mr. preudhomme said this move was tD facilitate reorianisation of Local Gov-
ernment in the State but this action was seen as undertaken to oust the Grm
nada National Party which then controlled Local Government.
GULP did not reorg.nise or reintroduce Local Government.
SIR PAUL: G'T TO WORK ON TIME
Governor General Sir Paul Scoon on April 16th called on Grenalian teachers
to examine themselves as professional people.
Sir Paul was officially opening the 24th Annual Conference of the Grenada
Union of Tcrchers and he said productivity begins with punctuality for work.
"Late coming by teachers cannot be tolerated", he said. "Indeed, late com-
ing by any category of workers in this country should not be tolerated. It
is dishonest and smacks of ill-discipline. people who cannot arrive at
work on time are not ready for work".
Sir Paul said it is better, and more honest, for teachers to remove them-
selves from the teaching profession rather than exploit the classroom with
laziness, indolence and couldn't-care-less attitude.
I The Governor General spoke out against those who give -o good example to
youth, who give nothing of their time and talent to helr youth but who are
always ready ,to condemn youth.
-,e 16 THE GF.L .PA N'',SLTTZ.R VWeek Etjin 21.
There are many young; people, he said, whc, by their deportment and good
manners point the way to a more peaceful, prosperous and stable society,
and they should be encouraged.
"Having said all this, let me say categorically that I abhor violence in
any form, that I detest bad behaviour", he said, "and I feel that unseemly
behaviour should be firmly dealt with. But we must remind ourselves that
the school is a microcosm of the wider society and the outburst of unaccept-
able behaviour on the part of school children is symptomatic of the general
Smalaise in a society in which traditional values were- flouted, in which hum-
an.dignity and individual freedom were set aside and in which respect for
authority gave way to buffoonery and deceit".
This has caused a great deal of confusion in the minds of youth, the Govern-
or General said, and it is therefore the business of all Grenridians to be
vigilant and act firmly and decisively when necessary to protect young Gre-
nadians from influences which may dull their minris and cause disruption in
The Teachers Conferenece, which lasted two days, had as its theme, "The role
of the Tea.'her .in the meaningful development of the-Youth"
P.R.'s HERN .i-E C'CLC', VISITS BL IZE .
Puerto Rico's Governor Raphael Hernandez Colon, flew into Grenada's point
Saline Airport on April 12th for discussions with Prime Minister Herbert
Interviewed at the airport, the Governor said his meeting with Mr. Blaize
would cover the possibility of developing joint industrial projects between
Puerto Rico and .ricn-,ti.
"I am accompanied by representatives of several pharmaceutical c-r;panies
which have investments in Puerto Rico", he said," and they are looking at
Gi' .ada as ':site for investment which Will create jobs both in this island
and Puerto Rico".
The Governor's visit was against the background of a review now being taken
of a particular section of the U;S. Tax Code by the U.S. Treasury Department.
Under this section, Number 936, companies investing in Puerto Rice are exempt
from income tax and, in return reinvest a percent:-e of 1teir profits in
Puerto Rico* There is a threat that this section may be withdrawn and the
Puerto Rico plan is to extend the benefits of "936" to the rest of the Carib-
bean, thereby assisting president RaFg..n's Caribbean Basin Initiati-.e.
"We are envisioning twin plants projects", Mr. Fern-ndez Colon said. "T"e
re ready to finance the projects with what 'e call '936 funds' vhirh are
i generated by the earnlngs of these companies in rucro-o Rico,"
Week Ending 27/4/82 THE Gra.D, NEWSLETTER Page 17
The Governor said the ITwin plants projects" is a scheme under which com-
panies already established in Puerto Rico would set up a twin plant in Gre-
nada or some other Caribbean country.
His talks with Mr. Blaize would be in this connection, the Governor said.
The cooperation of the United States Government is needed to maintain the
relevant section 936, he said, but there is a difficulty.
"We have a problem with a tax simplification programme of the Treasury De-
partment", the Governor said,"and, in that context, Section 936!is in jeo-
The plan he proposes puts a new dimension on the "936 funds", Mr. Hernandez.
Colon said, and he believes-that through the efforts he is making, and oth-
er efforts being made in Puerto Rico, the Treasury will drop its,proposal
to do away with sectionn 936.
The Governor said the companies in Puerto Rico benefitting.from the provis-
ion of Section 936 are very interested in seeing that that section is main-
"This section is very important to them", he said, Randd, in supporting the
proposal for twin projects, they are furthering the objectives of president
Reagan's Caribbean Basin Initiative and, therefore, they are securing the
The Governor called his visit to Grenada a "gesture of Caribbean solidarity"
and expressed the hope that the twin projects would go forward soon,
prior to the Governor's visit, the Chairman of Grenada's Industrial Develop-
ment Corporation (IDC), Mr. Sam Graham, confirmed that industrialists in
Puerto Rico would visit Grenada.
"There are at least 4 companies interested in looking at Grenada for the pur
poses of investment", Mr. Graham said.
The IDC Chairman named these companies as Johnson and Johnson, Westinghouse,
and two manufacturers of pharmaceuticals, the Schering-Plough company and
Smith, Kline and Beckman.
Accompanying Governor Hernandez Colon would be Mr. Richard D. Copaken, the
Washington based Attorney for the Governor of Puerto Rico, an informed
source told NEWSLETTER,tlso in the party would be Mr. peter Johnson, Execu-.
tive Director of Caribbean-CentralAmerican-Action which is headed by Mr.
The source said that, arriving separately from Washington for the meeting
would be Mr. Antonio J. Colorado, Head of Puerto Rico:e Economic Development
Administration and he would be accompanied by one of the potential investors.
.rage 18 ... .. T' GRCA1TL NE:.SLZTER .. ....... k in 27/
The source said 'estinghouse and Johnson and Johnson are 2 of the 5 largest
employers in Puerto Rico, Westinghouse having 22 plants in that island and
Johnson and johison some 10 to 12 plants.
Three aircraft were in service..bdinging the Governor and his party to Gre-
SThat party includedMr. RichardRodney, Vice ;resident of Technical Services
of Smith,- Kline and Beckman, Mr. Bill Keppler, Senior Vice president of Tech-
nical Operations and Management systems of the schering Plough Company, Mr.
Cal Mitchell, Vice president of the Abbott Com;any of Puerto Rico, manufa~t-
urers of-ohaimaceuticals, Bob Ciatto, Vice presidentiof Technical Opera-
tions of Johnson and Johnson and M'r John Collins'of Puerto Rico'6 Industri-
al-Development CorporatiOif "
Also in the party was Mr. Robert Garcia, a Democratic Party Congressman
from New York.
.0AS SUPFCKTS SPORT
I The Government of'Grenide received, from the (Cranisation of American States
(OAS) on April 22nd, a'gift of some Us2,000 worth of sports equ-ipment.
The presentation was done by Mr. Norberto Ambros, OAS Director in Grenad i,
and:he made'a symbolic handover of the equipment to Mr. G0.orge McGuire,
Minister for Sport in the Grenada Government.
"Support'for-sport has been an official pa r of OAS activities since 1982",
Mr. Armbros"said:, "and the present don-'tion is'a continuation of a joint ef-
fort between the Government of 3rena.dI and the OAS".
Th- OAS Director 'aid, over the period 1i82 to 1985, OAS has given Grenada
USC6,000 each year in sports equipment and'servf es, including coaching.
The equipment presented on April 22nd was purchaised from the 1984 grant, he
caid, the 1985 grant ,ha- not y,et been tapped, but he expected that money will
soon be utilised.
"The Gr-nad- Government has requp'-ted US$16.00P) for the period 1986/1987,
Mr. Ambros said. "This is subject to OAS 3pprov3l and we hope this amount
will be made available".
Accepting"the Zi'ft';Mr. jcGuire expressci thanks to the OAS and a:)pre.ciation
of Mr. Ambros' personal interest.
"I am heartened to seethe equipment how'made available to us by the 0AS",
he said. "It will make a significant impact on many discipliro-, in part-
icular, football, basketball, athletics and volleyball",
Week Ending 27/4/g5 TI.: C:Ef'DA NEWSLETTFR Page
7,_ -'4 /. F 5 19
The Minister said his Government realizes there must be "deep rooted chang-
es" in the way sporting progr'Lmnes are approached and is aware of the need
to chnngc people's attitudes and cc identify and correct administrative
Mr. McGuire said efforts have been made to revive the National Sports Coun-
cil but this cannot be done until fundamental changes have been made. Thesr
changes include establishment of new structures at the parochial level, fol-
lowing which, action can be taken at the national level,
Identifying the "attitudes" which need to be changed, the Minister said
there is a too-casual approach to sport and there is no longer an %im to
reach the top.
"In the past, sport used to be fun", he said, "and it is Government's policy
to put fun back into sport. If people enjoy sport more and see that sport
is well reconriaed at all levels of our society, they will aspire to greater
There is a basic Froblem in the society, Mr. McGuire said, and this is the
problem of discipline. There is an attitude of "anything goes", he contin-
ued, there is the thought that the restoration of democracy is licence to
have a casual approach, and there can be no achievement in spo-t if there
is no discipline.
The Ministry of Sport has a difinite programme, the Minister said, but,while
some areas of sport are already well organised and flourishing, he did not
expect to see a general improvement inside of 2 years,
NEW .,N'LIC.CJ ;.RCHDEACON
Grenada-born Anglican Archbishop of the Vjestiniies, Cuthbert Woodrcffe, has
instituted and inducted the Right Reverend Philip Elder to be Archdeacon of
Grenada and Rector of St. George's Parish in the island.
The ceremonies took place on April 23rd in St. George's Anglican Chu-ch in
the presence of a wide cross-section of the *ommu'itt including Governor
General Sir Paul Scoon.
Also present were Prime Minister Herbert Blaize, Chief Justice Sir Archibald
Nedd, Mr. George McGuire,, Minister of Education in the Grenada Government,
Lieutenant Colonel Earle Huron, Commander of the United States Forces in Gre-
, nada and B-rb.dos High Commissioner to Grenada, Mr. Walter Burke-.
The Roman Catholic Vi-ar General, Cyril Lamontaigne, was present and took
part in the ecclesiastical processeon.
SDelivering his charge to the new Archnie.con and the cong-egation, His Grace
said one of the "sad twists" of the "modern thing called liberation theology"
I __ ~ _
pD-e 20 rHIE .E:'DA rNES'LET-R :ee'k Ending 27/!',85
.is. that it would care for the old, the coak and the'poor :but fail .to under-
stand that the rich, strong and-young also need to be cared for.
!'The rich possess a soul made by God truly as with the poor", he si.id, "and
't is for us to see that he does not go to hell for we shall have to answer
for the rich soul as well as for the poor soul".
T'he Archbishop said there will have to be an answer.for the weak soul as well
as the str-ng soul, for the old s ul as well as the young soul,,
Guyana-born Bishop Elder, 59, was Suffragan Bishop of Guyana.from 1966 to
1976 before migrating to the,United StJtes of America, a move taken in the
interest of the education of his children.
In the U.S.A. Fiiho? Elder was Rector of a New Jersey parish, which post he
vacated on the Archbishop's invitation to assume duties in Grenada.
NCH '-ILPS KIDS
Didrdvanta.;ed rnhildrean 'in Gr-:n-.da are to benefit from a gals concert attend-
id.by uceen Elizabeth at London'as Albert Fall or March'9Oth.
This was announced on April 10th in a Pr:ess Release issued in Grenad- by, the
Office of the Resident Ieprersentative of the British High Commission, Mr.
ne concert, org-,nis.ed to. raise funds for the Naticnal Children's Home (NCH)
working in the Caribbean, featured a number of Westindi an artists including
,he folk-rock grcup, Stctleye Sp-n. -"Ste-el bands, Teggae and Calypso music
-roups were also featured.
',e NCH Chairman, Lord Tonypandy, said the money raised from the concert
would be part of the urg-nnisati6n"s contribution to laternatinnal Youth Year
an. would also help to finance NCH's work in the Westindies,
_n Grenada, NCE advises Government on Child Welfare Legislation while-in St.
,ucia the -crg:.iz-.ation runs a Centre-for tcene,.-e ..lIs "at risk". In Domin-
ca, it finances "Oper:ation Youthqua.ka", a project for orphan boys, and in
Samaica the charity administers a school for disadvantaged youngsters.
London Methodist Minister,, Dr. Thomas Bo.min Stephenson, founded NCH 116
rears agp to help children disadvantaged educationally, physically and
-.ocially. Financed by voluntary czntribu-ions, NCH runs a number of homes
in Britain. .Its overseas projects are confine& 'to the Caribbean and Zim-
~ I ~ IL
T;Ai 3R.L-:i.,D/. NEWSLETTER
QueEn Elizabeth, who is patron of NCH, will visit several Westindian count-
ries, including Grenada, later this year.
27th April 1985
printed & Published by the Proprietors
JAister & Cynthia Hulhcos, Journalists
of Scott Street, St. Georges, Grenada, Westindies
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'i-ek Endi.ng 27.4/F,'/ 5