Amcham ‘appreciative’ of budget, wants clarity on Clico bailout

THE American Chamber of Commerce (Amcham) says it appreciates Finance Minister Colm Imbert’s continued efforts to create a budget that strives to balance economic revitalisation while preserving an adequate social safety net.

The chamber said it is pleased with plans to digitise government services, reduce crimes on businesses and move towards renewable energy.

Imbert presented a five-plus-hour budget reading at the Red House on September 30.

The budget was based on an oil price of US$77.80 per barrel and a natural gas price of US$3.59 per mmbtu.

In a press release on September 30, Amcham said it "acknowledges the magnitude of the impact that crime is having on the economy...

"And the focus on reducing home invasions and crimes on businesses is welcomed. We are encouraged by the focus on enhanced training for the TTPS."

A total of $6.912 billion was allocated to national security.

Amcham said this is an area of opportunity to collaborate with the private sector and "we stand ready to assist.

"(We are) encouraged by the proposed measures announced by the minister to tackle violent crime and criminality, including the implementation of body cameras, speed guns and advanced fingerprinting technology, along with the acquisition of two search-and-rescue surveillance aircraft and other surveillance measures announced to bolster crime prevention and detection."

It added that the budgeted oil price seems reasonable, based on similar pronouncements from reputable energy-forecasting agencies.

"And the more important revenue source, the estimated natural gas price, seems reasonable, especially with the new pricing arrangements following the restructuring of Atlantic LNG."

The chamber said it is grateful Imbert has committed to clearing up outstanding VAT refunds as well.

"We trust that in clearing these debts for the energy companies, prior consultations will be held so that the eventual solution will achieve the desired results."

On digitisation, it said it welcomes the introduction of e-passports, e-immigration forms and digital health records.

However, on the topic of renewable energy, it wished there were clear timelines given for feed-in tariff policy and legislation.

"We eagerly anticipate the unveiling of the renewable energy policy announced by the minister, which was drafted by the Ministry of Energy earlier this year.

"We believe this policy has the potential to enhance opportunities for private-sector investment and facilitate a systemic transition to a low-carbon economy. Therefore, we hope the policy will be made publicly accessible for input before its finalisation and implementation."

Imbert also announced the sale of the government’s 49 per cent shareholding in the Colonial Life Insurance Company (Clico). He added that the government is still owed around $13 billion from the bailout.

Amcham said, "We urge the government to provide details so that the public is aware of the facts and details.

"We support divestment of assets that would be better managed by the private sector."

It added, "As the ministers deliver their detailed statements on the plans for their ministries, we look forward to further information on timelines for implementation of measures announced and how success or impacts will be measured."

The chamber recommended ministries report on initiatives and commitments made in the previous budget "so that the public can be apprised of their progress and what impacts they have had.

"We, therefore, encourage the government to set clear priorities for outcomes in every ministry and provide regular updates on progress."