PRESS RELEASE - MEETING WITH GARFIN

PRESS RELEASE-MEETING WITH GARFIN

Grenada's Opposition Leader, Dr. the Rt. Hon. Keith Mitchell has advised officials of GARFIN, the Grenada Authority for the regulation of Financial Institutions, that while his party, the New National Party, has no problem with the regulating of the Insurance industry, it cannot support the proposed new legislation which will impose a tax on insurance premium.

Speaking to the officials of GARFIN at a meeting held on Friday, July 27, 2012, Dr. Mitchell reiterated that his party and he himself, have no problem with regulating the insurance industry, especially since it was his party which brought in legislation to establish GARFIN, taking into account the need to ensure that the hard-earned deposits of the average man and woman in the country are adequately protected.

He said that his party remains committed to strong and effective regulations for the insurance industry, but that it cannot in principle support the imposition of an additional tax on the people or any action which will enable the Government to have access to people's money and to use it for its own purposes.

This is especially important in light of the Government poor record of economic and financial management, and the management of the country's affairs in general

The Opposition Leader is stressing that it is poor management which has contributed to the rapid decline in the economy, including the decline in investment, the flight of investors, the closure and downsizing of local businesses, the continuing loss of jobs and the inability of the economy to absorb the large number of young graduates who have now entered the job market.

He is advising that even with this very terrible economic and financial state that the country is in, the Government is not learning from its mistakes. It is still continuing the pattern of misguided policies and actions. An example is the recent purchase of a building for close to $2.0 million, even at a time when the Government is experiencing problems paying public servants, meeting its obligations to the poor and needy, and fulfilling other financial obligations.

This situation, he says, has left everyone, including the Government desperate. And because of this desperation, the Government is concocting various schemes to finance its direct operation and that if its entities.

This proposed tax and deposit are one more of these schemes. It will only impose more stress on business and bring more financial hardship to the already struggling people of the country.

Dr. Mitchell is saying that as a responsible Opposition, his party intends to carry out its responsibilities to the people with wisdom and caring, and without fear of favour.

It therefore cannot in good conscience, support the Bill as it will represent yet another imposition that will place even more burden on the backs of the Grenadian people.

Before the meeting ended, the Opposition Leader strongly advised the team, that rather than focussing on meeting the Opposition, GARFIN should instead meet with the Minister for Finance with a view to obtaining answers  to its questions and obtaining clarification regarding the rationale, the specific  provisions, the implementation and the potential impact of the proposed legislation.