Address By Anguilla's Hon Victor F Banks At Handing Over Ceremony ... - Caribbean Pre

[Anguillan newsboy]

The Valley -- August 2, 2007 -- Dr the Honourable Ralph Gonsalves, Prime Minister and outgoing Chairman, Distinguished Prime Ministers and Ministers of Finance. A very special welcome to Prime Minister, Dr the Right Honourable Keith Mitchell in his new capacity as Minister of Finance for Grenada and for the first time, the Acting Prime Minister of St. Lucia, the Honourable Stephenson King, who is standing in for Prime Minister, the Right Honourable Sir John Compton.
Sir John remains in our prayers for a full and speedy recovery and I would wish you Minister to convey our sincere best wishes to his family as well as to the Government and people of St. Lucia.
We are extremely happy to have the Governor of the Central Bank, Sir Dwight Venner, the management and staff of the ECCB, specially invited guests, and other distinguished ladies and gentlemen. Let me proudly welcome you all to our beautiful homeland Anguilla. And we expect that you will make time to experience the charming delights and unique hospitality for which we are renowned.
Please now join me in congratulating, Dr. the Honourable Ralph Gonsalves, Prime Minister of St Vincent and the Grenadines, on his efficient and effective chairmanship over the past period. His contribution to these meetings has always been both enlightening and entertaining. I do look forward to his support in the period ahead.
I am indeed honoured to accept the chairmanship of the Monetary Council for 2007/2008 during a time of historic importance for the member countries of the Eastern Caribbean Currency Union (ECCU), as we move boldly forward along a course of deeper integration through the establishment of a single economic and financial space.
Accordingly, our policy making must be consistent with the new modalities implicit in this emerging arrangement. It is in this context, that I fully endorse the comments of the Governor in his foreword to the ECCB's Annual Report for 2006/2007, that the region must develop a clear and strategic response that would enable us to steer through a new regional and international economy.
The ECCB continues to be a success story for the region. Our economies have benefited from having a strong EC Dollar. And there is no doubt that our sub-region may have become fragmented had it not been for this institution. The ECCB as an institution is at the very heart of regional integration. A case in point, my own country Anguilla joined the ECCB a full ten years before becoming an ***ociate member of the OECS. Our individual countries have all benefited from having the EC Dollar. In dollars and cents this year alone some $15.7 million was distributed as profits from the ECCB and the net income for 2006/2007 was some $34.8 million.
As we move ahead in 2007 the economic outlook for the ECCU promises to be positive. This prediction is based on the generally favourable circumstances that the Currency Union continues to enjoy in the external environment. This expected growth in our economic activity will be driven largely by foreign direct investment financed construction activity and expansions in other non-traded sectors of the economy.


31 years of currency stability
The tourism sector is expected to benefit from an increase in visitor arrivals in most of our member states, as a result of intense marketing and favourable economic conditions in the major markets; while the expansion in agricultural production will be influenced by growth in banana production and ongoing agriculture diversification efforts in some countries.
But we must temper this positive outlook by noting that the recent fiscal performance in many of our countries is a direct outcome of expenditures ***ociated with hosting the Cricket World Cup 2007 which of course impacts the medium term fiscal position. And we must continue to bear in mind that the continued high levels of public sector debt and fiscal imbalances makes the region sensitive to shocks in global growth, commodity prices (particularly oil and food) and financing conditions.
Due to the pervasive nature of oil usage, any major spikes in oil prices will have economy wide implications for the cost of goods and services, yet further affecting the competitive position of the ECCU.
And we should always remember that should the ECCU territories be impacted by major hurricanes, the macro economy could be adversely affected. These are the systemic realities of our regional construct.
Colleagues, despite these circumstances we must take a moment to reflect upon our achievements. The currency union celebrated 31 years of currency stability with the EC dollar pegged to the US dollar. This level of stability has created an environment that has enhanced both local and external investor confidence in our region.
Let me briefly and proudly mention some of the ongoing initiatives by the Central Bank which are contributing to our regions success:-
Because this environment must be sustained by continued efforts at increasing the productive capacity within the region, the Bank continues to lend its support through its money and capital market development initiatives. Accordingly, it is significant that this year, the ECCB will be launching the Eastern Caribbean Enterprise Fund. The ECEF is designed to be a multifaceted institution for the provision of venture capital development finance and technical ***istance services to the private sector. And will maintain as one of its primary objectives more effective mobilization of financial resources to the new and emerging productive sector of the region.
…. The ECCB plans to continue its promotion of the ECSE as the exchange of choice for investors, issuers and intermediaries across the wider CARICOM region, complementary to the single market and economy and as a player in the globalised market.
…. The ECCB plans to support private sector development by promoting the establishment of an OECS distribution and transportation company which will serve to mitigate many of the logistical impediments to intra-regional trade.
…. The Bank continues to encourage and facilitate participating governments in further development and promotion of the regional government securities market. This facility is being under utilized and it requires a deliberate strategy to educate governments in how to effectively access this positive source of budgetary support.
….. As a vehicle for the promotion of good governance in the Eastern Caribbean Currency Union, the ECCB will continue to collaborate with key regional stakeholders in improving the governance structures within the public and private sectors. The improvement in debt management and the quality of statistics will continue to be a critical element of this strategy.
…. The private sector development thrust must be nurtured and sustained through continued support of entrepreneurship. Accordingly, the Bank continues to promote the establishment of investment clubs and the junior achievement programmes. Thus, creating the platform for local empowerment at all levels.
…. The stability of the financial system is equally important to the growth and development of our member states. In this regard we must continue to safeguard our system by addressing any gaps in the supervisory and regulatory system that may exist.
This list of initiatives is neither exhaustive nor complete. It is in fact part of an ongoing labour --- a manifestation of a vision for a strong regional community.
We in the ECCU consider ourselves an important subset of the wider regional movement --- and have a real sense of the need for us to first move forwards together --- to strengthen our link in the chain. Our small size, separately, must impel us to increase our impact together and as a sub-region we must continue to create an environment for stability through our institutions; to find a way to foster cooperation among leaders devoid of such impediments as issues of sovereignty --- a form of collegiate solidarity which makes it easy to discuss each others shortcomings/failures; share experiences and celebrate successes; to prepare ourselves to be more effective and more productive in the wider regional context/arrangements --- by developing our individual potential and capacity; to demonstrate that in our sub-region there exists a willingness and a commitment to take bold and courageous initiatives on the political level while creating an informed and educated community prepared to make the necessary sacrifices.
In terms of my own country we have had unprecedented economic growth over the last three years, we had a great tourist season and our fiscal position has improved significantly over the last five years. In fact in this fortieth anniversary year of the Anguilla Revolution we are enjoying at the end of June a recurrent surplus of EC $40 million and liquid reserves of EC$ 40 million as well. While real challenges still persist we have high hopes for Anguilla.


OECS secretariat's managment must be improved
Notwithstanding all of the foregoing, I take over the Chairmanship at a time when we need to consolidate and build on the gains we have made thus far. We need to finalize and implement the revised treaty of B***eterre. Consistent with our vision, we have to ensure that all eight member countries of the ECCU remain on a sustainable path of economic development. Jointly and severally we must take this matter seriously. We have to be each others keeper and realize that in a single financial space, what affects one affects all.
Over the thirteen years that I have been a member of the Monetary Council I continue to speak about the need for a sense of collegiate responsibility and the need to establish a comfort zone in these meetings where we can speak freely about the challenges we face as separate nations and work together to find solutions --- again realizing that we have a common purpose --- as a union.
It is with pride that I highlight the success of the CARICOM second USA Summit in June this year. Our own Dr Ralph Gonzalves was quoted to have said "We have come not in supplication but to forge a genuine partnership based on mutual respect..." This is a clear indication that our region has matured and come to the realization that we must not go forth as beggars. It is about forging trade and economic relationships predicated on mutual respect and a high sense of regional esteem.
We have to improve the way the OECS Secretariat is managed and funded. It was disappointing to receive a correspondence from the OECS Secretariat requesting Member States to meet their financial commitments to the Organization. It is a source of great embarr***ment. As the overarching organization for regional integration --- we seem to be making a joke about the critical importance of strengthening the capacity and effectiveness of the Organization. The benefits of OECS outweigh the cost of our individual country contribution. It seems time for us to really consider legislation to make the funding of OECS a statutory obligation.
I remain proud of the ECCB's research agenda as it continues to seek solutions to the myriad challenges facing our region. While at first blush it appears to be far removed from financial management and regulation --- the issues of health in our region looms as a major challenge for our economies. The high cost of health care ***ociated with wide spread diseases like hypertension and diabetes as well as the threat of the HIV/Aids pandemic must feature in that agenda. And while I commend the work that is already being done by the Bank --- there is a real need for a strategy for culture change --- beginning at the highest level of corporate decision making and government policy.
Hopefully, this will manifest itself in educational programmes, wellness promotion practices and the funding for vital research and treatment projects. I believe that it is fair to say that at the level of the Monetary Council --- our members themselves are at high risk based on the stress ***ociated with our responsibility --- and the attendant tendency to personal neglect. Let the culture change begin with us.
Colleagues, let us not rest on our laurels, or take false comfort in our past successes. This is a pivotal moment in our history which requires even more focused attention than the past --- the vision of past leaders beckons us to finish the noble task of creating a robust community and leaving a strong legacy for generations of leaders and citizens of our region. There can be no gains without sacrifice --- no healing without pain --- no progress without obstacles.
It is based on the feeling that these rambling comments reflect the commitment of this institution, that I accept, with a great sense of privilege, the Chair of the Monetary Council of the ECCB --- on behalf of the Government and people of Anguilla and the furtherance of the great cause of a strong regional community.
I thank you all very much indeed for your kind attention
Hon Victor F Banks