PHILIPSBURG:--- The Soualiga Employers Association (SEA) on behalf of its members and the general public is calling on the authorities to activate its contingency plans to combat the increasing rate of inflation currently faced by our citizens. A note has been taken on several developments domestically, but the real issues as it relates to our increasing cost of living need to be looked at urgently.
The SEA is cognizant and fully aware that as an island that relies heavily on imports, more than often the increasing cost is likewise imported. However, at the same time, the association is adamant that as a responsible administration with such knowledge there must be mitigating plans or measures for such economic developments. In recent years, the Sint Maarten economy was hit by Hurricanes Irma and Maria, followed by the COVID-19 pandemic and currently, the effects of the invasion of Ukraine by Russia are already felt. The latter resulted in increased fuel cost and growing production and transportation cost. Due to these developments, the corporate and final consumers saw their expenses increase considerably. Even without systematic data available, the financial consequences are felt by everyone. The question, therefore, remains, 'What is our government doing to cushion the effects of these occurrences on its citizens?
Given the current situation, the Soualiga Employers Association hereby proposes three unsolicited suggestions that can easily be implemented. The first suggestion is to amend the water production and distribution concession afforded to external parties and place a maximum price on the per gallon consumed. This price cap could end the quiet growth of the water expenses and will have a positive effect on everyone. This should also go hand in hand with a review of the fuel clause imposed by our utility provider.
The second suggestion is to review with the intent to reduce the handling fees of container movements at the port, especially when it comprises consumable imported products. Again, in an economy that is so dependent on imports, external factors can influence almost all prices of products and goods. Therefore, measures should be examined and adopted domestically to ease the burden on the citizens.
The third suggestion is to enhance or enact the much talked about maximum price control mechanism we have been briefed on yearly by the ministry of TEATT and even amend the price ordinance. Notably, there has been a constant increase of businesses in the retail sector, especially that of supermarkets. This implies that the sector is profitable for which a price control may not affect them negatively.
Of course, more measures can be taken, but there is an increasingly urgent need, to begin with, the implementation of practical initiatives and policies to avoid deepening poverty, bankruptcy, or worse.
Recently the Dutch State Secretary Van Huffelen announced that the Netherland will conduct research into the costs of living in Sint Maarten. For sure, the results will be very in-depth and interesting. Nevertheless, those results will take time and there is an urgent need for action in the interim.
Source: Faxinfo https://www.faxinfo.sx/2022/03/03/the-sxm-festivals-program-is-becoming-clearer/
