Professional Documents
Culture Documents
UATI
ON
2015
Public
Statias
Observations, Concerns
and
The Way Forward
Entity Sint
Eustatius
Oranjesta
d, Sint
Eustatius
January 6, 2016
Table of Contents
page
3
II
III
IV
V
VI
VII
VIII
IX
X
XI
XII
XIII
Introduction
Three Pillars of the Evaluation Report 2015
Impact on the Population of Statia
A New Government Structure
Working of Enacted Laws and Regulation
Important Observations With Reference to the Evaluation Report
Consequences for the People of Statia
Other Areas of Concern
Poverty
Local Reality
Office of the Kingdom Representative
Purchasing Power and Taxes
Observations: Bottlenecks and Impact on Statias Community
Healthcare
Statia and Public Transportation
Social Provisions
Banking in Statia
Education on Statia
Justice in Statia
Democratic Deficit
The Way Forward
References
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Introduction
The Evaluation 2015 is the execution of an agreement derived from the Mini Conference
of November 11, 2006. The evaluation is carried out with two objectives in mind,
namely:
a. To establish if the implementation of the points of that aforementioned declaration
reached the set objectives, and
b. To assess how the people in the Caribbean part of the Kingdom experienced this
new status of Public Entity so far.
Shortly after 10-10-10, it became apparent that many of the agreements reached during
these mini conferences were not fullymet. One area that created much expectation
among the population was the social benefits such as the level of the Old Age Pension,
Child allowance, rent subsidies and the anticipated increase of the spending power of the
population.
The findings of the evaluation are received and they confirm what Sint Eustatius (herein
after Statia) has pointed out as shortcomings all along for the past fiveyears. This
document contains the comments of Public Entity Sint Eustatius on the evaluation
report. It is prudent for Statia to present her observations and concerns on the findings of
the Evaluation 2015 report and also indicate how the people of Statia see the way
forward.
The evaluation assignment states that the evaluation's purpose is to collect as much
factual information as possible about the manner in which the new administrative
position of Bonaire, Sint Eustatius and Saba has been implemented. It is also important
to emphasize that in accordance with the assignment, the evaluation report will not
contain recommendations, but rather serve as a basis for the balanced decision-making
process regarding the implementation of the agreements, and any changes that must take
place after the evaluation.
Therefore, it is essential that the Executive Council, together with the people of Statia,
make an inventory of observations, concerns with regards to the findings, and indicate
unequivocally how Statia envisions the way forward.This inventory contains the main
areas of concern and is therefore not comprehensive.
The Executive Council wishes to thank organizations, social partners, political parties
and Statias community at large for their cooperation, input and sharing their personal
opinions and experiences that have resulted in this extensive evaluation.
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The shift of authority from the island administration to The Hague which was
not made very clear in advance, partly as a result of the transition from a kind of federal
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The expectation on the islands that direct links with The Netherlandswould result
in the level of provisions in a general sense being raised to a higher level(a for Dutch
standards acceptable level), in view of the principle of equal treatment contained in
chapter 1 of the Kingdom Constitution.
be improve drastically.
The FREE allowance needs to be brought to a level to
adequately carry out all government tasks and to eradicate the backlogs in infrastructure,
economy, government buildings, housing, etc.
III. Consequences for the people of Statia
The level of provisions and the cost of living needs to behighlighted as some of the
important priorities for the coming years. In the past five years, some improvements
have been realized, but, as the evaluation reports conclude as well, poverty and the cost
of living have increased. It is also essential that targets are set for the level of AOV,
minimum wage, social financial aid, and other allowances. "Het voor Nederland
aanvaardbare voorzieningenniveau" and the poverty line needs to be translated into
numbers.
It is noticeable that the evaluation report concludes:
that the new tax system has created a big burden on the Statia's population and
evaluated yearly, based on subsidiariteit. This has never been done and is now long
overdue. We have seen that it has been very difficult for the national government to
adjust to our local realities, which was also concluded by the Committee Spies. It is time
to seriously consider which tasks should be transferred to local governments with the
clear understanding of funds needed.
Action point 4.2:
It is of great importance that the recommendations from the Ideeversa reports with
regard to the free allowance are implemented to give the local governments the
necessary financial means to execute their tasks in providing service to the people of
Statia.
Office of the Kingdom Representative (KR)
The evaluation report is very critical about the functioning of the new administrative
structure. The flaws that are being addressed by the Committee Spies need to be solved.
One such flaw is the office of the KR. This office derived its power from Chapter V:
Verhouding tot het Rijk of the law WolBES. This office is the end of The Hague's so
called funnel of constriction.
In essence, the relation with the mother country should be between Statia's government
and The Hague. In the laws and bylaws governing the life and liberty of the people of
Statia,this relation is deteriorated from Public Entity Statia -The Hague, to the Minister
of BZK, to the Secretary General of BZK, to KR.The function of the KR needs to be
revisited.
The input of the National Government through the various ministries needs to be more
structured and better coordinated. Instead of that the islands have to deal with all those
separate ministries, it would be prudent to have one ministry responsible for the Dutch
Caribbean islands. This will guarantee shorter communication lines and a more effective
means of spending of the money. Also the role of the Kingdom Representative needs to
be reviewed.
Action point 4.3:
Statia is of the opinion there is a need for an in depth scrutiny of the purpose and
functionality of this KR office in the chain of the relationship with Holland. Therefore,
this should be done post haste as one of the recommendations to be executed.
Purchasing Power & Taxes
The decreased purchasing power of our citizens since 10-10-10 remains unchanged.
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There is no improvement in our economy in sight. Statia is struggling to deal with her
annual budget, but the Ministry of Finance intents to raise the taxes with the result that
more money will be taken out of the economy of the islands. This will result in
decreasing buying power of the people of Statia and also will have a negative impact on
the already sluggish economy of Statia.
It is of paramount importance that an assessment is done before any actions are taken
that might result in an extra burdening of the people of Statia.
Action points 4.4:
a) The tariffs, including the threshold of USD 70,000 for property tax applicable for the
year 2015, must be extended until 2019 after which an evaluation of the economy of the
Public Entities in the Caribbean part of the Kingdom ought to take place.
b) The property tax destined for the Central Government for 2016 2019 must be
reduced by 0.8% to 3.2% for hotels and with 1.4% to 5.6% for other eligible properties.
This will allow Statia to introduce a percentage surcharge (opcenten), as the law allows,
without increase of the tax burden to the people of Statia.
The following is a list of concrete flaws of the current tax system:(This list is by no
means comprehensive)
1.
The idea of the introduced flat tax was to share the burden across the board and
increase the purchasing power of the population. However, the actual increase
in purchasing power does not cover the actual rise in the cost of living. The
Evaluation Committee has concluded that purchasing power for the lower and
middle incomes has decreased.
2.
Sint Maarten continues to levy their Turnover Tax on goods for Statia after
October 2010, while goods for the island should be exempted from this
domestic tax. Despite numerous attempts by both Island and National
Government, this situation continues to exist. The tax has even increased from
3% to 5%.
Action point 4.5:
Statia is a strong proponent for a practical agreement to be made with Sint Maarten for
Statias businesses/entrepreneurs to get reimbursement or exemption of Turnover Tax or
goods and material destined for Statia should automatically be exempted. Although
indicating what is done by St. Maarten, it is the responsibility of Holland, as a priority,
to reduce the percentages of taxes levied on the people of Statia introduced since
October 2010 to compensate for double taxation.
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The various 'kinds' of ABB altogether are among the main causes of the high cost of
living. ABB is also charged on shipping and insurance cost, while the cost for shipping is
already extremely high because of the small scale and low volumes (In this respect ABB
is treated as import duty, while it is not). The same applies for the ABB on services
which has had a negative impact on this industry. Lastly, construction work is also
severely impacted, because the ABB is applied to materials, which all have to be
imported, including the shipping cost. These were new taxes, and businesses ultimately
pass them on to the consumer.
Action point 4.6:
The difference in ABB between Bonaire and Statia/Saba stays in place because of the
difference in historical build-up of taxes, and the different nature of the economy: the
cost of living is already very high on Statia, and an increase in ABB would make the cost
of living even higher. CBS statistics have proven this over the years, and the evaluation
committee comes to the same conclusion.
V. Observations: Bottlenecks and Their Impact on Statias Community
In Statia, numerous small-scale initiatives and projects have been given shape, partly
thanks to the efforts of the local communities. Unfortunately, these positive
developments are eclipsed by a widely felt disappointment on the islands, which has
consistently increased since 2010.
There are strong indications that the transition, and particularly the introduction of
certain laws (including tax laws), have not had the intended positive influence on the
economic development of the islands and, therefore, did not contribute to the inhabitants'
level of prosperity.
It seems repetitious, but again the mentioning of the new tax system is needed to
substantiate Statia's position. The new tax system was intended to stimulate economic
development in Statia. Although the influence of the new tax system on the economic
development of Statia cannot be quantified, this objective was surely not achieved.
Action point 5.1:
The committee was unsuccessful in identifying why the implementation of certain laws
failed their objectives and to review the direct impact on the people of Statia. This must
be rectified through thorough assessment in an effort to establish the necessary
adjustments needed.
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Another point that needs clarification is the interpretation of what was agreed on prior to
10-10-10. It is established that the improvement lagged behind the expectations as a
result of the vagueness of the agreements made prior to 2010. It became apparent that
Holland and the Public Entities have a widely differing interpretation of the agreements
made. One of the main examples of this related to the agreement is that of the provision
of wealth/ health care and provisions would be elevated to een voor Nederland
aanvaardbaar niveau. From the onset, Holland and the islands held different opinions
on the interpretation of this agreement, with the result that not all services and provisions
(especially social provisions) have been made concrete while the living standards have
been falling steadily. The desired standard of provisions should not be formulated with
abstract words only, but geared directly towards actual practice.
Action point 5.2:
It is of great importance to get insight into the social acceptance of the involvement in
the transition process that a clear picture is painted, jointly and in the short term, of
what the desired standard of services and provisions on Statia should be likein all
aspects. It will undoubtedly also contribute towards enhancing mutual trust and
coordination for the future.
On another note, it is observed that in the period leading up to the transition in 2010, it
was already clear that this agreement on gradual integration was being interpreted
differently. This particularly applied to the difference in opinion about the extent to
which efforts should be geared towards introducing Dutch legislation and to what extent
deviations from the Dutch legislation were needed due to special circumstances on the
islands. It also became clear that there were differences in opinion on the term within
which a further integration should be realized.
It is now more than clear, that then it was more difficult to fathom those factors such as
climate and geographical circumstances; circumstances which based on chapter 1 ofthe
Kingdom Constitution can lead to differences due to different circumstances. Not clearly
establishing in all sectors what is the, within The Netherlands, acceptable level of
provisions. This has created the justification for the current reality that the living
standard of a relatively large group of inhabitants is lagging far behind what is deemed
acceptable in the European part of Holland. At the same time, there is a sense that
Holland takes insufficient account of the local circumstances and the differences
between the European part of The Netherlands and the three islands, also among the
three islands, in legislation and implementation in other cases as well.
There appears to be a consensus that the decision to turn the island into public entities to
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express the direct ties with Holland is not felt as an improvement compared to pre 1010-10, when the islands at least had some level of proximity to the central
administration. Statia had a representative in the executive and legislative branch of the
Netherlands Antilles. Now this is not the case. As a result of this,the people of Statia feel
ruled over from afar by persons who, more often than not, do not make an effort to see
and hear what the inhabitants of the island experience.
Logically, our political representatives in the Dutch Parliament will answer foremost to
their Dutch European constituents, who have no interest in what is taking place on our
little island. Beside this parliament structure a form of representation needs to be
established whereby each island has the tool to directly approach the political
representatives as well as the various ministries in The Hague.
Many people on the island do not see any improvement on the situation that was in place
when they were still part of the Netherlands Antilles, despite the improvements made in
the areas of health care and education.On the contrary, they see only a regression in
many areas.
There are no overall solutions to speak of despite the fact that the nature of the problems
and scale of islands call for such aremediation. In other words, although the dire
situation is known, no substantial efforts is being made to bring about necessary
changes. The fragmentation is difficult to handle for the islands because of their limited
staffing capabilities. It takes a lot of meeting and consulting which means that a
disproportionate administration load falls to the islands. The relations became more
strained, particularly those between the European part of The Netherlands and Statia and
to a lesser extent Bonaire.
The performances of local administrations do not stand alone and should be viewed in
the context of the circumstances in society as a whole. A relatively large section of the
population has trouble surviving due to a complexity of problems, which includes a
diminishing purchasing power, level of education and difficult family situations. The
administrative practices and the quality of the administration are first and foremost
determined by personal qualities and conduct, while the administrative culture only has a
minor influence.
Action point 5.3:
Since there is still a lot of room for improvement in this area of administration, a plan of
approach must be established to be achieved through education, supported by Dutch
ministries and collegial accountability. Achieving the necessary changes will not happen
overnight. It will require huge efforts, patience, time and energy.
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expenses.
Also the increase of the minimum wage and the allowances that are connected to the
minimum wage is needed, but this increase should not go to the extent that businesses
succumbed under these increases. This balance must be monitored closely in the interest
of employees and businesses.
A closer look is needed in the very high social benefits which have created a big burden
for the businesses on the island. Seeing the huge discrepancy in the level of social
benefitsbetween Holland and Statia,one wonders if this matter was a discussion point
during the deliberations leading up to the new constitutional status. The same holds true
for the minimum wage and the level of AOV.
Action point 8.1:
AOV level, minimum wages and social premiums must be revisited and adjusted
accordingly in the interest of the businesses and the people of Statia.
Applying laws based upon the European standard is not always beneficial for Statia.
Inspections have to be done with a better understanding of the local situation in order to
be effective.
Action point 8.2:
Statia supports the initiative for the transfer of the labor office back to the local
government. With local execution and accountability, the task of this office can be
executed more efficiently and the local labor market is better protected.
IX. Banking in Statia
AFM/DNB. The regulations for banking have been changed to a large extent in
accordance with the situation in Holland. This has led to differences between regulation
in Sint Maarten and Statia, especially in areas where AFM is active. This caused
difficulties for the banks on Statia, since they are all Sint Maarten based.
It has become more challenging for the banks to do business on Statia since they are
running the risk of not complying with the (for them) alien regulations, and are inclined
to retract their business from the island. That would be disastrous for Statia's economy.
This also resulted in making it much more difficult to acquire loans. The requirements
for loans are more stringent and in most cases the "small man" is not able to get a loan.
The same principle of compliance counts for money services like MoneyGram and
Western Union, and insurance companies and their brokers in Statia.Another proposal is
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to encourage Dutch banks to establish themselves on Statia. These banks are familiar
with Dutch regulations and in general offer a higher level of services to their clients.
Action point 9.1:
Statia supports that the public must be protected against the banking industry. It is clear
that when measures are based on banking regulations of Europe, without taking the
Caribbean banking structure and culture into account, then the same persons these laws
intended to protect, become the victim of this protection. Therefore, it is imperative that
an evaluation of these regulations take place with the input of the local banking
industry.
X. Education on Statia
Education on Statia has seen a lot of positiveinvestments but, just like in health care,
there is still room for improvement. Many of the Primary and Secondary educational
institutions have met or are well on the way to meeting the basic quality assessment
requirement of the Dutch Inspection Authority.The most challenging struggle for Statia's
students is furthering their studies after high school. Studying in the United States is
very expensive in comparison with studying in Holland. An established fact is that the
level of Dutch of many students is not sufficient that inhibits them from continuing their
education in Holland. Several solutions are possible, such as more focus on Dutch as a
foreign language in primary school and high school, or the opportunity to follow an
intensive Dutch course to get students ready for studying in Holland.
The levels and structure of study financing have not increased and have remained the
same as it was in the former Netherlands Antilles. These levels do not reflect the current
situation as the average price of tuition, especially in the USA, has increased
dramatically. This makes it very difficult for persons to pursue their tertiary studies as it
is financially not possible.
Statia supports the initiative to look at the scholarship financial differences in an effort to
establish realistic financial support in the scholarship package of the students. It is also
important that countriesin the Caribbean region, the UK and Canada are added to the
acceptable countries for study financing to increase the options for students.
Action point 10.1:
The scholarship packages need to be re-adjusted to fit the financial requirement of the
destination of study.
There is a great need to have the available human resource potential among our people
exploited for achieving growth in human independence and improvement within the
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labor force.
organizations, and create opportunities for Statians studying abroad to gradually return
to Stati.
XI. Justice in Statia
The general consensus is that on Statia the crime level has increased since 10-10-'10; of
which more specifically breaking in and theft. The believe that the police are not taking
enough actions to prevent this from happening. People felt safer before 10-10-10
because the police force was much more visible, especially at night. In case of an
emergency there is hardly anyone after twelve o'clock in the police station, and on top of
that, the call placed for police assistance connects first to Bonaire. This is unacceptable.
Our people must have the same safety and protection as those living in Holland.
Action point 11.1:
It is advisable that an emergency number is established on the Statia and that more
manpower is provided so the police station is manned after twelve oclock. The
communication with public need to optimize in an effort to build up the respect and trust
of the public in the police force. To protect and serve must mean something for the
people again.
Another issue of contention is that within the Ministry of Justice, agreements made with
the respective State Secretaries of Justice seem to become invalid after changing of the
State Secretary. With State Secretary Teeven it was agreed upon that young offenders
will be sent to the juvenile center in Sint Maarten.The family members of those that are
incarcerated in Bonaire will, at least once per quarter, have the opportunity to visit their
family member, paid for by the ministry. Mr. Teeven left office and that dossier was
never executed. Family visits to inmates have been established and cemented in several
High Court rulings of the Kingdom of the Netherlands.
Action point 11.2:
It is important that although there is changing of the guard, continuity is a must where
firm agreements have been made.
XII.Democratic Deficit
In the constellation of the Netherlands Antilles, Statia enjoyed a certain level of
autonomy. Statia was represented in the Legislative Branch with a Parliamentarian and
in the Executive Branch with a State Secretary. After 10-10-10, the processes of
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island. It is time for the mother country to understand that being in for a penny also
includes being in for a pound.
Acknowledging the many, if not all, critical remarks in the findings of the committee is
one thing. The question that remains is what will happen with these findings? This will
be a challenge for the coming years and, therefore, it is of utmost importance that Statia
together with The Hague works towards a status where all these negatives will be a thing
of the past. This will not happen overnight, but as long as the first step is taken in that
direction, we will be already closer to our destination, namely, our living circumstances
will be equal in equal circumstancesto that of the European part of The Netherlands as
per the mandate given by the Kingdom Constitution.
A first step could be the establishment of a joint committee of the islands and the
National government to identify and recommend clear decisive actions that will remedy
the many shortcomings brought forward in the Spies report.
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References
Document: Reaction Bonaire, Sint Eustatius and Saba to the evaluation reports
DP Statia notitie: Proposal Property Tax (Vastgoedbelasting)
DP Statia: Comments on Evaluation Vijf Jaar Caribisch Nederland
Standpoint Constitutional Evaluation Public Entity Saba 11 December 2015
Interviews with individuals on Statia
Vijf jaar Caribische Nederland:Gevolgen voor de bevolking, Evert Pommer and
Rob Bijl
Vijf jaar Caribisch Nederland:De werking van de wetgeving,Heinrich
Winter,Herman Brring,Niko Struiksma,Gert Blekkenhorst,Jur van der
Velde,Christine Veen and Roel Botteman
Vijf jaar Caribisch Nederland:Werking van de nieuwe Bestuurlijke Structuur,
dr. Oberon Nauta
UPC: Knowing The Game and UPC Take On Dutch Interference"
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