PAM Manifesto has serious financial complications, could lead to collapse of St. Kitts and Nevis economy

BASSETERRE, ST. KITTS, JANUARY 24TH 2010 – PAM’s “shopping list” in their manifesto will push the National Debt to over 200% of GDP so they have stop talking about that topic, Prime Minister Douglas disclosed on Sunday night.

“I have asked the economic and financial technicians in Government to analyse the fiscal impact of the PAM Manifesto and  although they are still counting, they are already projecting that the implementation of such a manifesto, would result in huge deficits and push the debt well beyond 200% of GDP if the economy does not collapse before it reaches that point,” said Dr. Douglas, who pointed out that for the last decade PAM has been complaining about the National Debt and in their 2010 manifesto barely mentions the topic.

“I think I have a lot of experience as Minister of Finance and I know that Minister Harris will agree with me on this. If PAM was ever given the opportunity to implement their manifesto, our entire economy will collapse within six months of PAM assuming office. Our situation would be worse that many of our neighbours. Government workers would not  get their pay on time, Suppliers and Banks would suffer from the resulting arrears, liquidity would dry up, people would laid off in hundreds and thousands, land  and property values will drop precipitously and our progress would be set back by over a decade. I want you to quote me, Denzil Douglas, on this. Government is not a job for little boys, especially in the current global economic conditions,” said the Prime Minister.

Pointing out that the Labour Party’s 2010 manifesto does not make any promises, Dr. Douglas referred to the Party’s plan for the future.

“When we put our projects and plans to writing it must be in a budget or our Medium Term Adaptation Strategy, with a careful analysis of the cost of such projects, the expected impact, and how we plan to finance them,” he said.

Dr. Douglas said this is not the time for wishful thinking. “We must act responsibly if we wish to continue surmounting the challenges of the global crisis before us. Our many years in Government have taught us some important lessons. In particular, we know that all the major bilateral donors, international banks, and foreign investors will take up the manifesto of the winning party on Tuesday, and if they believe that their programmes will wreck the economy or they are not implementable, then they will curtail their activities in St. Kitts.”

“Even investors who are already here, are watching and waiting, before they commit too much of their money to our economy. This would put serious pressure on the financial systems and on the economy as a whole. You see, our investors (both local and foreign) want to make sure that experienced hands are at the wheels and that they the Government has a practical plan that will continue to successfully navigate the country through the global crisis.” said Dr. Douglas.