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www.sxmislandtime.com
 PHILIPSBURG - Former Finance Commissioner, Councilman Roy Marlin, responded over the weekend to last week's press conference on the CFT by current Commissioner Xavier Blackman.
In his response the councilman stated that; the Commissioner of Finance on behalf of the Executive Council of St. Maarten tried last week in his press conference to appease the people of St. Maarten, that the Cft is just an advisory body and that the Executive Council has no obligation to follow the advice of the Cft .
The Commissioner should be truthful and explain the people of St. Maarten the consequences of not having a budget presented and approved on time by the CFT.
The Resolution Temporary Financial supervision Netherlands Antilles, Curacao and St. Maarten, which went into effect per November 8, 2008, clearly defines the role of the CFT.
This resolution also has an escalating model built into it in the event a government does not, or chooses not to follow an advice of the CFT.
The law states that drafts of the budget will be sent to the CFT for them to give an opinion before the budget is sent to the Island Council for its formal approval.
This process can help avoid the Island Council approving a budget and then the CFT still coming with major comments on the approved budget.
In this case the Commissioner may be right by stating that the budget is still to be handled by the Island Council, but it does not take away from the fact that the Executive Council is pushing a budget into an Island Council meeting for approval, in which they know beforehand that because of major flaws it will not receive CFT approval.
The draft budget 2010, according to the CFT, has a deficit of NAf 23 million, and whether it is premature to submit a CFT advice or not, this does not change the fact that unless there is a hard agreement between the Central Government and the Island Government of St. Maarten regarding the financing of the transfer of tasks, this deficit is a reality which must be dealt with.
The Executive Council must either produce the agreement mentioned above or come with alternative measures in order to cover the deficit.
The law regulating the budget processes and the implementation of the CFT is as follows:
An advice from the CFT includes motivated findings with regard to its judgment if the budget complies with the norms of a balanced budget which norms are laid down in article 15.
This advice was given by letter dated December 16, 2009 from the CFT addressed to the Executive Council. This advice also entailed recommendations on how to bring the draft budget in compliance with the norms. The CFT gave the Executive Council until January 14th 2010 to react to its recommendations and make adjustments to the draft budget.
The law states that in the event an advice by the CFT as described in article 12 includes recommendations then the Executive Council must within 14 days after receipt of the advice inform the CFT in which manner they will take these recommendations into account and within which period.
This was done by the reaction letter from the Executive Council submitted to the CFT sometime in January after the deadline of January 14th.
Then the law goes on and states, in the event that in the opinion of the CFT the Executive Council in its reaction does not show that the norms will be achieved or if the Executive Council does not react at all then the CFT will within 14 days after receipt of the Executive Council's response, inform the Executive Council and the Island Council of its conclusions.
This was done in the letter from the CFT to the Executive Council dated February 8, 2010. The law goes on and states, after 7 days if in the opinion of the CFT the Executive Council reacts and this reaction does not show that the norms will be achieved and that there is no question of the budget complying with the norms, the CFT will then inform the Kingdom Council of Ministers, through the Minister of Interior Affairs and Kingdom Relations.
The information by the CFT to the Minister can be accompanied by a motivated advice to give an instruction to the Executive Council, for the budget to be brought in compliance with the norms.
The Kingdom Council of Ministers can, based on the advice of the CFT, decide to give an instruction to the Executive Council in order for the budget to comply with the norm, which is a balanced budget. In the event the Executive Council refuses to carry out the instruction it can also be given to the institutions charged with upholding Kingdom matters in the Netherlands Antilles the Governor General.
This instruction by the Kingdom Council of Ministers can entail implementing the same recommendations given by the CFT in its letter of February 8, 2010 which are eliminating payment of cost of living adjustment for civil servants and on subsidies, which will also be for teachers and other government subsidized institutions, increase of TOT, increase of excise tax on gasoline, implementing excise tax on alcohol and tobacco or implementing casino tax.
Other ideas of taxation which are applicable in the Netherlands and on Curacao and Bonaire, but not necessary suitable for St. Maarten may also become part of the instruction such as import duties, real estate or land tax, environmental taxes on water and electricity, increase of wage tax or increase of foreign exchange taxes, just to name a few.
Presently any and all new policies which are on the books, cannot be executed until the budget has been approved which translates in the sectors and departments within government being put between a rock and a hard place with regard to carrying out their regular responsibilities.
These areas include but are not limited to garbage processing, promotions and/or periodic salary increases for civil servants, increases in subsidies for foundations, payment of cost of living adjustment etc.
They now choose to tell the school teachers that the cost of living adjustment is approved by the Executive Council but the finance department is refusing to pay it out. Blaming civil servants again and not telling it as it is. It cannot be paid if the NA/Heyliger government 2010 budget is not approved
In conclusion Councilman Marlin stated that again the Democratic Party calls on the NA/Heyliger government to humble themselves pull back the draft 2010 budget and come with a complete new draft that complies with the norm, before it is too late and the people of St. Maarten, are made to suffer.
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