Thursday, August 13, 2020

Necessary Cost Adjustments

 

Under the Quarantine Act and the Regulations made under it, Anguillians and residents of Anguilla returning home from certain countries that are experiencing dangerous levels of the Covid-19 disease, such as the USA, must be taken directly from the port they arrive at to an authorized place of quarantine.  There, they are provided with lodging, medical attention, security, food, and drink, all at the public expense.  This lasts for a period of approximately two weeks.  They are not allowed to pay for it.  Even if they wish to pay for their board and lodging, they are not permitted to do so.  The rules, they are told, require that this be a public expense.  Millions of dollars, I understand, have been disbursed by the past and present government on this venture since quarantines started in March.  This is an expense that was never budgeted for.  It is money that we can ill afford.  Our economy has tanked with the failure of our tourism industry since the start of the year due to the pandemic.

The House of Assembly should be asked to vote on a Bill to require persons who are detained, quarantined, or placed in isolation, to pay the costs of their quarantine.  Most if not all Anguillians will agree that this is a necessary reform.  It is unfair to the Anguillian public that we should have to pay the costs incurred by persons who choose to return to Anguilla at this time, and put us all to the risk of contracting the disease.  If returnees wish to enjoy the comfort and safety of home, they should be willing to pay for all associated costs incurred by their return from abroad.  This has become the international standard, and we will not be doing anything unusual in having our law ensure this.

Care must be taken to ensure such a provision does not offend against our constitutional right to freedom of movement.  There is an exception in cases of public health and safety.  The necessary Orders must first be made by the Governor and Executive Council under the Constitution and the Public Health Act.

It is a simple enough measure to enforce.  One of the conditions for permitting the return to Anguilla should be a payment of a deposit, say US$10,000.00, per person into the Treasury.  That would give the provision teeth.  The deposit will be refunded, less the cost of all disbursements associated with their quarantine, at the end of their quarantine.  If this proves too expensive for any would-be returnee, he or she is not obliged to make the payment.  They can simply stay where they are and save the cost of returning.

The duty to refund government’s costs should not be limited to persons who return to Anguilla with the permission of the Quarantine Authority.  It should extend to persons who enter illegally.  In the case of persons who are caught illegally entering Anguilla in breach of the Quarantine Act or any Regulations made under it, the Act should provide that one of the conditions for their release from custody is the payment of a cash bond, say US$10,000.00, to secure the refund to government of all costs incurred in their arrest and detention and medical treatment including but not limited to transportation, board, lodging, medical and other.  It should cover all costs of tracing and treating the persons who have encounter the illegal entrant.

Nor should this bond be limited to persons who want to return in the future.  There is nothing legally impossible or morally wrong in the law being drafted to authorize Government to demand a refund of part or all the past costs paid in maintaining earlier returnees in quarantine at the public expense.  Every effort should be made to recover the past costs incurred in relation to persons who have been given permission under the Quarantine Act and its Regulations to enter Anguilla since January 2020.  This may be hard on some of the persons and families affected.  They can be given time to meet the refund, and other terms.  In suitable cases, perhaps certified by the Department of Social Development after the application of a Means Test, the law might even provide for exceptions to be made.  In my view, most if not all the persons who have had their quarantine expenses paid for by government should be obliged to refund all the costs that were paid out of public funds.

What is certain is that we cannot continue to meet this expense.  We simply do not have the money in the public purse.  In one of his last speeches in the House of Assembly, the outgoing Minister of Finance revealed that our projected tax revenue for the year 2020 will be about one half of the amount budgeted.  Further, we do not know how long the quarantine provisions will have to continue into the future.  Given the irresponsible behaviour of the US and certain other governments in dealing with their own infections, it might last until well into 2022.

Since I wrote the above paragraphs, someone has pointed out to me a draft Quarantine (Amendment) Bill on the Order Paper for debate on 11 August.  It is a noticeably short Bill.  It provides,

“(1a) Notwithstanding subsection (1) the Quarantine Authority may require persons who are detained, quarantined or in isolation pursuant to this Act to pay in part or in full the expenses incurred by the Quarantine Authority in detaining, quarantining or isolating such persons.”

This is inadequate.  It is a token provision.  It is for show only.  It lacks teeth.  It is filled with loopholes.  It gives a power to charge the costs without any mechanism for collection. 

Bearing in mind that the Constitution limits the power of the Assembly to pass an Act restricting our freedom of movement, care must be taken to ensure that the necessary State of Emergency and Public Health Orders and Proclamations are renewed from time to time.  The ones made earlier this year all appear to have expired without being renewed.  Without care being taken, any law restricting entry into Anguilla by Anguillians may be unconstitutional and unenforceable.

And, while we are on cost cutting measures, is there any reason why a 40% tax cannot be imposed on all pensions previously paid to Ministers and Parliamentarians?  These payments have been a huge drain on our Treasury.  They have met with universal condemnation in Anguilla.  I do not have the exact figures at hand.  We have all seen various sums circulating in the media.  If these are correct, we have paid out tens of millions of dollars in the past several years in gratuities and pensions to retiring parliamentarians.  They need to do their part now that we are in crisis.  They need to refund some of this undeserved largess they paid themselves.  A 40% tax should be immediately imposed retroactively on the pensions and gratuities of every living parliamentarian who benefitted.  Retired parliamentarians and Ministers should be happy to agree to refund 40% of the very generous pensions and gratuities paid to them.  To answer the question at the start of the paragraph, care will have to be taken to ensure that such an Act does not offend against the protection of private property provision in the Anguilla Constitution.  If it does, then retired parliamentarians will need to be shamed into making a voluntary return of their ill-gained pensions.

Such an essential reform, if legal, is not intended to be retroactive only.  Entitlement to pension and gratuity for future retirees should be reduced accordingly, ie, by 40%.  Those who are presently in the House of Assembly and in Government would be aware of how untenable and unsustainable their overly generous pension provisions are.  There is no possible legal or moral objection that can be made to such a reduction.

While we are on the topic of curtailing benefits, why not extend the cuts to parliamentary salaries and allowances?  Anguillian politicians are in receipt of a high level of remuneration that is not matched in any other West Indian nation.  We have heard a previous Minister of Finance make a boast of the fact.  The levels of salaries were set during the 1980s and 90s when money was flowing into the Treasury like water under a bridge.  Those days are now long gone.  We cannot afford these excessive salaries any longer.  Ministers and Parliamentarians should agree in the public interest to reduce their salaries and allowances by 40% with immediate effect.  Such a contribution would meet with universal acclaim and appreciation in Anguilla.

Anguillians join in calling on Dr Ellis Lorenzo Webster, the Hon Premier and Minister of Finance, to move the necessary actions in the Executive Council.  We urge all Ministers and Ministerial Assistants to support these initiatives.  We call on all members of the Opposition to support these measures when they arrive before them as a series of Bills for debate.  We call on all members of the House of Assembly to pass the reforms into law without undue delay.