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Tropical storm Chantal downgraded: disaster averted

Tropical storm Chantal had St Lucians on their toes on Thursday, but luckily failed to materialise as predicted - finding herself downgraded to a tropical depression just hours before she was due to hit the island. An amazingly bright yellowish- pink sunset followed by almost instant darkness and an evening of thunder and lightning, alternating with heavy showers were what St Lucians witnessed. Where flooding and landslides were feared and residents rushed to supermarkets to stock up on bottled water, batteries, canned food and candles, little more happened than 30.9 millimetres of rain overnight and some minor landslides. The Star reports this. By the time acting prime minister Mario Michel appeared on television to warn St Lucians of the impending dangers of Chantal, the storm had already been downgraded to a depression. Nevertheless, as The Mirror reports, hurricane experts expect a slightly more active season than was earlier forecast, now predicting up to 12 tropical storms and eight hurricanes. The hurricane season ends on November 31st.

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B&D: new issues cloud accusation of discrimination

The war of words between B&D Construction and the government of St Lucia continued this week, with press secretary Earl Bousquet 'spinning' attention away from B&D's allegations of victimization and discrimination by, in turn, introducing a range of counter-allegations against the construction firm. Bad management and a wish to "embarrass the government" are behind B&D's financial troubles and vitriolic attacks on the government, claims the government spokesman. But observers condemn Bousquet's attempt to, as they say, confuse the real issues.
Last week, top man at B&D Charles Daher accused the government of St Lucia of deliberately attempting to 'blackball' his company and deprive it of contracts and orders for materials, thereby restricting B&D's cashflow and causing the local firm to lay off some 600 workers. The confrontation between B&D and the government of St Lucia appears to have deeper roots (with both sides hinting at earlier problems) which came to a head last week when B&D took issue with the Government Tenders Board's handling of the tendering process for the Vieux Fort-Soufriere roadworks project, worth between 40 and 60 million dollars. B&D in a joint venture with Hippolyte Equipment Service Ltd. had submitted a bid for the project, with the intention of further enlisting some sixteen small local sub-contractors to help carry out the work. The bid was rejected because the envelope was allegedly not sealed properly. The contract was subsequently awarded to a Grenadian-registered foreign firm. B&D took issue with this and obtained an injunction to halt the proceedings. To avoid litigation, the government decided to declare the Tendering Board's decision null and void, and to re-initiate the tendering process. Theoretically, this should have solved the problem between B&D and the government - but accusations, allegations and denials continue to fly between the two parties, with several  newspapers giving the conflict front page coverage.
What is not really discussed but does appear to lie behind the B&D/government run-in, are allegations that certain government officials are involved in questionable handling of large construction projects such as the Vieux Fort-Soufriere road. Daher said as much last week: "Most persons involved in the construction sector are aware that there are certain construction firms and consultants in St Lucia that, by virtue of their connections and associations, receive favored treatment. These firms are given contracts that have never been put out to tender, at inflated prices. These firms have the monopoly on the procurement of goods and services for government projects and supply these items at a higher cost than might be supplied otherwise; and these firms are given the inside track as consultants on all government projects". The Crusader, three weeks ago, carried an editorial explaining in some detail why governments might prefer to award contracts to foreign firms rather than local ones, namely because "foreign firms repatriate their funds, making it easier to effect payments to local politicians and public officials through overseas accounts. The payments are bribes, kickbacks, or, more euphemistically, incentives which foreign firms pay local politicians and officials for favouring them with the contract. In this sense the Government is easily the foremost launderer of funds through these foreign firms which receive local finance and process the funds through foreign bank accounts available to them in special accounts".
Initially, the government responded to Charles Daher's strong accusations of victimization and discrimination by side-stepping the issues raised. Instead, Earl Bousquet accused the B&D management of trying to "embarrass the government". Why exactly B&D would wish to do that, press secretary Bousquet did not say - although the question appears pertinent considering that (as various newspapers explain) B&D was a major supporter of the SLP during the 1997 general elections and of the government during its initial years in office. As The Mirror reiterates, B&D donated a Human Resource Centre to to the prime minister's constituency of Vieux Fort, estimated to be worth between EC$700,000 and $1 million. Today, the structure stands overgrown by weeds, not even one-quarter complete and work on it halted many months ago.
In the second instance, government press secretary Bousquet alleged that B&D did not lay off as many as 600-plus workers, but closer to just seventy. Quoting "HTS independent investigations", Bousquet claimed: "there were only 70 employees on the B&D payroll at the time and so the onus is now on the company to prove that what they have said is true. And it can be proven by producing their NIS and Inland Revenue forms to show that they have been subtracting taxes due from 600 workers and paying that to the NIS".
The latter part of that suggestion ties in with a third allegation made by the government press secretary, namely that B&D owes the NIS a substantial amount of money. The question was therefore raised this week as to whether or not B&D qualified to tender for the Vieux Fort-Soufriere road project in the light of this debt. But B&D lawyer Peter Foster, in The Star, made it clear that although it is true that B&D is in debt to the National Insurance Scheme (NIS), this is not "a requirement that would render them ineligible to bid on contracts". (Incidentally, the St Lucia Employers Federation only last year revealed that the majority of outstanding dues to the NIS is not owed, contrary to popular perception, by private sector employers but instead by quasi-governmental and governmental organisations. According to investigations by the Federation, said its President in The Voice of July 1st of last year, 53 percent of the $36 million owed to the NIS is due from (quasi)-governmental organisations.)
Bousquet's fourth allegation is that B&D simply does not know how to manage its business affairs properly in an increasingly competitive global market, and that the quality of work delivered by the firm is sub-standard. Says Bousquet in the Wednesday Star: "I believe the company has overextended itself ... . They have been saying the government has not been giving them contracts. If that has been so I am suggesting that it is not because of victimisation but because of B&D's track record that it will either be unable to complete the job, or the job will be extended and cost the taxpayers more".
But Charles Daher retorts by returning to his original grievance, that of discrimination. "At the end of the day only two things can happen", Daher explains. "I will either survive or die. I'm standing up for my rights. I may end up folding at the end of the day, but if I have to fold up, then the truth must come to light. There is a campaign afoot by the prime minister's press secretary Earl Bousquet to make sure that we are discredited. I am not saying that we should be given all the work or be favoured over foreign contractors. I am saying it should be a level playing field".
A full-page notice in The Star and Voice newspapers headlined 'B&D and the Government of Saint Lucia in FACTS and FIGURE$', features two long lists of amounts allegedly paid by the ministry of Communications and Works to B&D Construction since 1997, and of projects awarded by the government of Saint Lucia to B&D Construction since 1997. It is unclear whether the notice represents an editorial article, a Government Information Service press release or a paid advertisement, and its source is not disclosed. Given the contents, the reader is left to presume that the notice is a paid advertisement from the government of St. Lucia and, further, is left to guess at the meaning of the detailed information in the absence of comparative figures for other contracting firms and projects. The notice ends as follows: "Meanwhile, B&D owes the Government of Saint Lucia and is yet to settle a claim of $784,000 for rental of equipment from the Dennery Workshop since 1996. B&D owes the Government of Saint Lucia and is yet to settle the sum of $1.39 million for mining pumice and use of quarry waste from quarries owned by the Government of Saint Lucia between 1998 and 2000". Again, it is not made clear what relevance these allegations may or may not have on B&D's claim that the government is giving preferential treatment to non-local contracting firms in the Vieux Fort-Soufriere road project, and that the government's press secretary is currently engaged in a campaign to 'black-ball' B&D Construction Ltd.
The Mirror newspaper in particular takes issue with the manner in which the government appears to be diverting attention away from the real issue raised by B&D, by introducing new, only partly related, lines of reasoning and counter-allegations.
The Mirror editor judges: "On an important matter like the awarding of contracts for the building of the south-west highway, the Government offered more spin. Now, they are learning that confusion has a price. It erodes confidence. It destroys trust. And in the final analysis it implants the notion in people that perhaps there is a spot of corruption somewhere. They did the right thing by sending the project back to tender, but they shouldn't have had to do that in the first place. And they certainly didn't score any points by confusing the issue instead of bringing clarity and understanding".
In a separate article by 'A. Consultant', also published in The Mirror, Bousquet also comes in for criticism for his handling of the B&D allegations. "I read the B and D statement in the Weekend Voice. Mr Charles Daher gave a number of reasons for the shutdown: that he was not getting work; that he was being denied materials; that the Government was favouring certain construction companies in the awarding of contracts. He did not say it, but he virtually accused the Government of presiding over corruption. The Press Secretary comes on TV with a response and does not refer to any of these allegations. Instead he accuses B and D of wanting to embarrass the Government, and of being party to some 'ploy' or 'plot' (he couldn't be sure which) to undermine the Government's 'economic credibility'. What nonsense. Have not B and D and the Labour Party had a very cozy relationship in the past? Why should the Company want to embarrass the Government? ... [Mr Bousquet's] statements did no credit to the Government which must now come out and tell the public about its policies on the awarding of contracts, whether it was accepting inflated bids for public works in this country, and so on and so forth". 

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Parents of disabled kids lobbying for better care

Parents and guardians of children with physical and mental disabilities are getting together to form a parent support group which, amongst other things, intends to lobby the ministry of Health for better health care and support services for their children. A speech and language therapist is urgently needed - something for which the Child Guidance and Developmental Centre (CGDC) has been pressing for three years now. Founder, director and full-time volunteer of the CGDC, Dr Brigitte Schuling, submitted a comprehensive proposal to the ministry of Health back in 1998 and several letters have been sent since but, according to articles in The Voice and Star, the ministry never responded.
The ministry of Education similarly has yet to take on the plight of children with multiple disabilities. The initiative of parents to unite themselves to become a stronger force in demanding care, attention and respect for their children's needs, comes at the end of yet another three-week Summer Camp for children with disabilities, held under the guidance of Schuling and with help from five overseas volunteers. Held at the Dunnottar School, the visiting speech and language therapists, two occupational therapists and pediatric physiotherapist worked with 7 to 10 children daily, and also saw 30 children as out-patients. The idea behind the Summer Camp is to show parents and children how much progress can be made in three weeks of intensive care and attention. "We wanted to prove that therapy makes a difference", explains Dr Schuling in The Star. "How can parents vote for something or ask for something if they don't know what it is or how it can help them? How can they believe in their children when they have never even seen their children progress and get better?"
A first priority will be to acquire the services of a full-time speech and language therapist, a pediatrician and a position for coordinator of the CGDC. The Voice quotes Dr Schuling as saying: "I don't know how much longer I can do this as a volunteer; we need an occupational therapist and in the long term, we need a psychologist on the team to do psycho-educational assessments". Dr Schuling expects that if her proposal is put into action, within five years, the CDGC could be run entirely by St Lucian staff. "I understand that there are lots of needs in the country but the children are the future of the country and I really think it's time to improve their quality of life and the development of the children in order to have a healthier and better educated population". The children Dr Schuling has in mind are those with cerebral palsy, autism, spinal diffident and hydrocephalus, as well as several other disabilities. An additional problem in St Lucia, recognises Dr Schuling, is the stigma that often rests with such illnesses. "Parents are still reluctant to seek help or take the children out for care and certain myths are more alive here than in other parts of the world. In addition, parents and children who have such disabilities, are not treated with the necessary respect". The Voice writes this. The Star continues the point by quoting Dr Schuling as follows: "Parents sometimes feel guilty and overwhelmed when they have a disabled child. It is important for them to meet with each other and other qualified persons to talk and rid themselves of that guilt and shame. Every human being deserves the respect and the help to bring out their potential and although this child may not walk on ihs own or talk like we can, there is always something that the child can do to be a little more independent and to improve his quality of life. ... St Lucia has overcome many problems like malnutrition and children are very well immunised, but now these children are surviving other areas are being ignored. It's not just about survival anymore, it's about quality of life. ... The time has come to take action and to be pro-active. Parents should not be afraid to ask questions. We in St Lucia are not ready to ask questions and not all doctors are ready to give answers. The first thing that we need is for the parents to help us lobby for a speech and language therapist. We will start with a petition and get as many parents as possible to sign. Perhaps we will get a core group of parents to meet with the minister and to discuss with her the need for therapeutic services. We don't have to be shy and hide away. We need to keep asking, keep demanding, keep pushing until someone listens".
This week, the St Lucia Golf and Country Club through Youth Empowerment International made a donation of EC$5,000 to the Summer Camp.

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Government distances itself from hotel closures

At a time when Berthia Parle, president of the St Lucia Hotel and Tourism Association (SLHTA) is warning that there may well be one or two more hotel closures before the end of the low season, Dale McDaniel, general manager of the Hyatt Regency Hotel, has stepped forward to take on the vice-presidency of the SLHTA.
With stayover visitor arrivals down by 18% so far this year, and the month of August being "exceptionally bad", small hoteliers in particular are "really feeling the strain", Parle said on Wednesday. Already, the Papillon and Royal St Lucian hotels have closed until mid-December, leaving some 300 workers out in the cold, and last week, the Orange Grove Hotel closed its doors, sending home another 53 members of staff. Parle suggests in The Star that utility companies (water and electricity) should offer to help small hotels by temporarily waiving their bills. More aggressive marketing of the island is also needed, says Parle. Meanwhile, Dale McDaniel realises that he is joining the hierarchy of the SLHTA at a difficult time. Being also the head of the organisation's Marketing Committee, McDaniel seems especially primed to "try to increase the arrivals to the island". "Our first goal was to work more closely ith the St Lucia Tourist Board - so the Hotel Association and the Tourist Board are now working as one unit to make sure that we're talking the same talk and I feel like we've made some great progress", McDaniel states in the Thursday Voice. Meanwhile, government press secretary Earl Bousquet takes issue with the fact that some measure of responsibility for the hotels' closures has been laid at the feet of the government. "Much hay was also made in the media about the closure of the Orange Grove hotel at Bois D'Orange", Bousquet writes in the Wednesday Star. "The private family property had been leased to another private operator and was in financial trouble, resulting in its creditors, the Bank of St Lucia, putting the hotel into receivership. However, the government was somehow blamed for the loss of 58 jobs there - despite the bank's assurance that the workers will be compensated and re-hired whenever the hotel re-opens".
In a televised commentary on DBS on Friday evening, Bousquet reiterated this 'don't blame the government' stance, adding to it the argument that economies are in decline world-wide, and that within the Caribbean, St Lucia is, relatively speaking, not doing so badly.
As if to shed a different light on that line of reasoning, the Wednesday Star carries two long articles which make it clear that both in the Bahamas and St Thomas, the tourism industries continue to grow healthily. Only a few weeks ago, following a visit to the Bahamas, Bousquet wrote a lengthy article in The Star in which he demonstrated that compared to the Bahamas, St Lucia's tourism product is a lot cheaper and more competitive. This week's article on tourism in the Bahamas, however, argues that precisely because the Bahamas caters for the higher end of the market, its market share has remained firm. St Thomas, too, recorded a 14% increase in cruise ship arrivals compared to last year.

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Gaspard vs. Finisterre: fraud in run-off election

What was initially described by press secretary Earl Bousquet as "a victory of sorts" for the St Lucia Labour Party (SLP), had by Friday turned sour when news broke that the run-off election for the Babonneau constituency had been tainted by fraud Contender Felix Finisterre, and not incumbent parliamentary representative Michael Gaspard, appears to have received the largest number of legitimate votes - despite the initial reports that Gaspard had won the run-off by 25 votes.
But speaking at SLP headquarters on Friday morning, prime minister Dr Kenny Anthony revealed that some 100 ballots cast had been fraudulent. "The executive of the St Lucia Labour Party met Thursday night in full force", the PM declared, "and agreed that the outcome of the runoff in Babonneau is null and void because the process was tainted by fraudulent ballots. The evidence available to the party executives indicates that certain ballots were stolen from the assistant secretary and these ballots were cast in favour of one of the candidates". The Star adds that the candidate in question was Michael Gaspard, who received "almost 100" fraudulent ballots. The newspaper continues: "According to the SLP leader, the suspicion arose when the ballots were found in consecutive order and none of the ballots numbered between 300 to 400 were found in Felix Finisterre's box" Dr Anthony said that "Given this evidence it was decided by the party executive that these were not results that the party could live with, that the process clearly was flawed and compromised and inconsistent with the integrity of the St Lucia Labour Party and we will not yield to any act of behaviour that is undignified".
While concluding that the fraud must have been committed by a Gaspard supporter, Dr Anthony did his best to clear Michael Gaspard from any involvement in the scheme. "The SLP does not believe that he is involved in what took place or that he knew of what had taken place", the PM stated. The Star adds: "Both candidates were present at the emergency meeting held by the Labour Party executive and according to Dr Anthony, Mr Gaspard was very 'suprised and shocked' when told what had occurred."
Disciplinary action will be taken against certain people, including the assistant secretary "for his negligence in leaving the ballots unattended", reports The Star.
As for the outcome of the election: the PM acknowledges that if the 100 fraudulent ballots are deducted from Gaspard's votes, he would be left with "about 37 votes". Finisterre, on the other hand, received 112 votes. A new run-off will be scheduled for the Babonneau seat - but a date has yet to be announced. The Voice expects a new vote in two or three weeks time but The Star relates the rumours it has heard that "neither candidate wishes to engage in another run-off".

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Laurent: 'Use bananas to bridge gap to new economy'

With at least four to six years of regular and secure market access to look forward to, St Lucia should continue to concentrate on its banana industry, while at the same time working at diversifying its agricultural sector to include other products, and strengthening alternative sources of income in the wider economy, such as tourism and international finance. This recommendation comes from Edwin Laurent, the OECS Ambassador to Brussels, and is printed in both The Mirror and One Caribbean newspapers.
Not able to compete with the vast banana plantations in Latin America, where yields per acre are much higher, the cost of labour cheaper, and results more consistent, the technical arguments for the Windward Islands to move away from banana production are "impeccable", says Laurent. But simply abandoning banana production is not the answer, argues Laurent. Alternative agricultural crops will encounter many of the same problems as bananas - as "The unpalatable reality is that it is agricultural production generally in the Windward Islands rather than simply the banana sector specifically which faces problems of international competitiveness. ... Those then who advocate the abandonment of bananas need to bear this reality in mind. For any crop to replace bananas in the Windwards, they must pass the test of being able to be grown and marketed competitively and profitably. Farmers cannot be expected to, and indeed will not make the switch otherwise. Whilst diversification should extend beyond agriculture, notably into the services sector, the Windward Islands also need to maintain a vibrant rural economy which provides the required jobs and income. Without these, the development prospects of the islands will be jeopardised and their societies destabilised by high rural unemployment and poverty with massive migration into the already overcrowded urban centres. A 55-year-old peasant cannot be expected to switch to being a computer programmer or a hotel waiter - diversification is a generational process. Expanding the tourism and the financial services sectors can certainly contribute but, in the short to medium term, will not absorb the labour released by the banana industry. The hope for the future still requires a flourishing agriculture, albeit one which is diversified and efficient. This is a prerequisite for any progress or indeed the continued economic stability of these islands."
Further on, Laurent continues: "True, there is uncertainty over the prospects particularly beyond 2008 but at least until 2006 the Windwards have a safe market in Europe. It would be absurd for farmers to abandon their fields now despite having security for at least a further 4-6 years. Whilst the market is becoming more competitive and difficult, bananas still offer the best immediate option for farmers. Although prices cannot be expected to return to the levels of the old days, those farmers who are able to achieve high enough yields per acre whilst keeping costs to a minimum can still make a living. However, in the long run, the Windwards must dramatically expand alternative agricultural output alongside bananas. ... [T]he challenge to the Windward Islands is to use the remaining years of the EU banana regime as a transition period to radically and fundamentally restructure their industries making them much more efficient and cost competitive, as well as diversifying both the agricultural sector and wider economy so as to generate new sources of income and employment".

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Radio Caribbean International to continue operations

Radio Caribbean International (RCI) is not closing down - despite rumours to the contrary. This is reported in The Star. A change in management is on the cards but the 40-year-old radio station - that has a loyal following not only in St Lucia but also in Dominica and Martinique - does not face closure. The only uncertainty at this stage is whether the change in management will have dire consequences for some of the fourteen members of staff.

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Government: 'economy doing better than elsewhere'

The economy of St Lucia is not doing well - but it is doing better, or rather: less badly, than several other countries in the Eastern Caribbean. With that mixed message, the government of St Lucia admits that all is not well with the local economy. At the same time however, while admitting that St Lucia is suffering from an economic slowdown, the government strongly emphasises that an "economic storm" is facing the entire Eastern Caribbean, as well as the United Kingdom and the United States. Press secretary Earl Bousquet claims this in an article in The Star and Voice newspapers in which he reports on a July 24th meeting of the Eastern Caribbean Central Bank.
Concentrating on "adverse external occurrences", the government spokesman admits that there has been a drop in stay-over visitor arrivals and a decline in banana production, impacting negatively on overall economic activity, "due to the associated reduction in foreign exchange earnings and consequently the money supply", writes Bousquet. "Performance in the manufacturing sector continues to be weak. Consequent on the slowdown in the US economy, output and exports in garments and electronic products experienced declines. The decline in economic activity resulted in a contraction in revenue collected, which severely hampered the capacity of the government to provide for the substantial increase in the demand for social services. More specifically, banana export earning fell by 47.6% to $12.8 million, while gross visitor expenditure was estimated at $202.4 million, 2.3% below the total for the corresponding period last year".
Government policies intended to counteract these negative trends, according to Bousquet, are, amongst others, intensification of the road development programme which will "seek to inject liquidity into the system ... resulting in an upward turn in economic activity". This policy has particular relevance when set against the background of B&D's recent claim that the government discriminates against (small) local contractors and prefers to give contract to foreign firms. With respect to the woes in the banana industry, "It is expected that the decline in banana production will be reversed as farmers benefit from the inputs credit provided by the government". Bousquet goes on to state that "In addition, the government intends to carefully examine the possibilities available to quickly reverse the slide in tourism arrivals, including the ensuring of adequate airlift and re-evaluation of the marketing campaign".
But government policy stops short of lowering interest rates on the island - a measure which could make it cheaper to do business and more attractive to invest in housing and other areas. Only last week, in a letter to The Mirror and The Star a business woman wrote: "To borrow money in our neighbouring island of Barbados to build a house, the mortgage rate is 7.5%. Why is it that here in St Lucia we are being forced to pay 12-17%? ... How is it that the banks are being allowed to make so much money and we St Lucians are struggling every month to meet our bank payments. For the first time in my 40 years in St Lucia I am scared. Scared of losing my business of some 15 years old now, scared of how I will repay my bank loans, scared of how I will tell my employees that they no longer have their jobs".
But Bousquet reveals that "after intense debate" (it is unclear who participated in the debate), "it was decided that interest rates would remain unchanged for the time being, though the feasibility of reducing the rates will be examined further". As reasons for the reluctance to change (and, presumable, reduce) interest rates, the government, according to Bousquet,  feels that "Preliminary research undertaken by the Eastern Caribbean Central Bank proved highly inconclusive as to the effect of an interest rate change on the foreign exchange sectors of the regional economy. Furthermore, as the cases of America and especially Japan illustrate, simply altering the interest rates is not an automatic cure for economic ills, especially when structural deficiencies exist. In addition, it was noted that the measure - which the Central Bank can institute - is not guaranteed to entice commercial banks to reduce interest rates". Instead, proposes the article, the functioning of the OECS securities market should be sped up, so that cheaper credit might become available there.
With the recent merger between the St Lucia Development Bank and the National Commercial Bank to form the Bank of St Lucia, St Lucia lost its one financial institution whose specific mission it was to support the development of local businesses and projects. At the launch of the Bank of St Lucia, some six weeks ago, chairman Victor Eudoxie somewhat cryptically announced that one of the new bank's plans was to reconsider interest rates on the island, "in a manner that will stimulate the economic growth of our people and which we hope our competitors will find necessary to follow". Thus far, however, no change in interest rates has been announced by the Bank of St Lucia.
Coincidentally, The Voice this week reports on its front page that the Bank of St Lucia, unlike the St Lucia Development Bank, is no longer accountable to the St Lucian public - only to its shareholders, with the government being a major player. At the time of the Bank's launch, managing director Marius St Rose described the Bank's goals as follows: "[T]hrough this merger we intend to provide more diversified and competitively priced customer oriented products and services, enhance the career opportunities available to staff and provide higher and more stable returns to shareholders".

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