Prime Minister Dr. Kenny Anthony’s New Year Address

Prime Minister Dr. Kenny Anthony Sunday night reported progress being made in resolving some of the economic problems confronting the country.

In a New Year’s address broadcast on radio and television, Dr. Anthony said that although St Lucia was not yet out of the woods, some good, sustained progress on the economic front was made in 2014.

The following is the full text of the Prime Minister’s address:

Good evening to one and all!

I take this opportunity to wish you, your families and friends, the very best for 2015.

The past twelve months have been a time of shared triumphs and tribulations for us as a people.

It was a year that, once again, tested the very will, resolve and character of our people.

But we are a resilient people, and as we continue to chart our way forward, I say to you tonight that I believe we have navigated the stormy seas of 2014 well, and whereas it may not all be smooth sailing ahead in this New Year, we are certainly headed for calmer waters.

To be honest, I welcome the departure of 2014 and look forward to 2015 with confidence.

1.1 A NATION OF CHARACTER AND DIGNITY

I wish to take this opportunity to extend my personal thanks to you, the people of Saint Lucia. I thank
you for your support and encouragement in 2014.

I also thank you for your forbearance and for understanding the perils that face our nation in these
difficult times. I certainly thank you for your understanding, in particular, the need to take
unconventional measures to overcome the challenges that we face.

Our journey is incomplete but we have certainly laid the foundations to complete the job at hand.
I believe in Saint Lucia and its people. I remain confident in the people of this nation. We are a bright
and talented people, capable beyond measure. We are a nation of pride, character and dignity.
We have shown time and time again our ability to handle whatever adversity and whatever challenges
that are thrown in our way. And we certainly had our share of challenges in the year just gone past.Not the least of these was the loss of some of our most iconic citizens, indeed, several of Saint Lucia’s
leading lights. They were individuals who mirrored the face of our nation and helped to shape us in one
way or another.

2.0 TRANSITIONS

Early in the year, the outspoken and energetic former Minister for Education, Culture and Labour, Louis
George, passed away. He served for almost two decades as the Parliamentary Representative for
Micoud North.

Later in the year, we mourned the passing of an icon, the former Minister for Education, Hunter J.
Francois. He was an educator in his own right, a man who laid the foundations of our system of
Education, a citizen of enormous talent, and one of our greatest intellectuals.

Former Governor General, Boswell Williams, a magisterial and for some, mercurial figure, went to his
final rest in July.

He was followed closely by one of our most courageous legal minds, the island’s first female Director of Public Prosecution, the eminent and indomitable jurist, Madame Justice Suzie d’ Auvergne.

Not too long after eulogizing Justice d’Auvergne, HilfordDeterville Q.C., departed from us suddenly,
without notice, without fanfare. He was a brilliant lawyer, a former President of the Senate and Bar Association, and one of the most jovial and colourful personalities in our midst. He will surely be greatly missed.

And we are certainly the poorer for the loss of businessman and chef par excellence, Edward Joseph,
better known to Saint Lucia and the world by the simple sobriquet, “Chef Harry”.
Again, we remind the families of those who have departed that we share their grief and loss.

3.0 CELEBRATIONS

But there was also much to be thankful for, and its hardships notwithstanding, we shared a great deal of
joy in 2014. The exploits of our latest culinary wonder, Chef Nina Compton, were celebrated by all and sundry.

Even as we marked the thirty-fifth anniversary of our political independence, we commemorated her
father and our country’s former Prime Minister, Sir John Compton, by erecting a statue in his memory.
An adopted son of the soil, former Archbishop of Castries, Archbishop Kelvin Felix was honored by his
Holiness, Pope Francis. He was elevated to the College of Cardinals, the first person from the Caribbean
to be so honoured.

We delighted in the continued exploits of our sports personalities. Lavern Spencer continued to excel. Team Saint Lucia was victorious in cricket, swimming, volleyball, football and track and field at the
regional level. Our national teams are reaping the benefits of world-class facilities.

Despite the economic challenges we have had major sectoral successes in the past year.

4.0 SECTORAL SUCCESSES

4.1 INFRASTRUCTURE

The Ministry of Infrastructure accelerated its work programme in 2014.

To date, the Ministry has completed some sixteen new bridges. These include the De Mailly, DierreMorne and the Bois d’Orange bridges.

In 2015, in addition to the completion of the ALBA Bridge in Grande Riviere, Dennery North, we are looking forward to starting work on the rebuilding of the Canaries, Thomazo and Choc Bridges.

Work will soon start on the by-pass below the entrance to the Desruisseaux Road. That was the same
by-pass that accounted for the loss of two lives during the Christmas Eve Trough of 2013.
Some five major roads are under construction and rehabilitation in the south of the island. These include
the roads at Balca, Darban, Park Estate, Fiette, Morne Jacque, and Laborie to Banse La Haut.

Work on the Barred’Lisle has been completed. The barricades are no more. The face of our island is
changing. The scars left behind by Hurricane Tomas and the Christmas Eve Trough of 2013 are fast disappearing.

4.2 TOURISM

There has been a great deal to celebrate in the field of tourism.We have had a good year!

The hotels, the Hotel and Tourism Association, Tourist Board, the Air and Sea Ports Authority and of course the Ministry of Tourism have done exceedingly well.

I applaud Minister Lorne Theophilus and his team for their efforts. Airlift, stay-over arrivals, the cruise
sector and the yachting sector all trended positively in 2014.

Total stay-over visitor arrivals are estimated to have increased to 338,158, a 6% increase over 2013 which was itself a record breaking year. The arrivals for February, March, April, June, October,
November and December of this past year were the highest numbers ever recorded in these specific
months.Total airlift increased by 5% in 2014.

Airlift from the United States increased by 10%, thanks mainly to additional service on US Airways from Charlotte, United Airlines from Newark, Jet Blue from JFK and Boston and Delta from JFK.
Airlift from the United Kingdom increased by 14% following the year round service from Fly Thomas
Cook as well as the additional flights from Virgin Atlantic.

Airlift from Canada grew 18% with the additional service from Air Canada out of Montreal as well as the new service introduced by Sunwing from Toronto.

We are adding to the number of available rooms, with over three hundred million dollars’ worth of
investment underway. Of the four hotels that were in distress when this Government assumed office,
one was sold and three emerged from receivership. One of them, CapellaMarigot Bay, opened in late 2014. Later this year, I expect that Smugglers will be closed to undergo major transformation.
Work continues on the eco-luxury, five star resort, Six Senses Freedom Bay.

These developments were made possible by the enabling environment created by this Government.
Jobs were saved and new ones were created. Saint Lucia was also once again named as the leading Caribbean destination for weddings and honeymoons, at last year’s World Travel Awards.

Our hospitality workers are deserving of our respect and commendation. They are the reason that we
are able to set and keep to high standards and to keep driving the tourism product.

As I have repeatedly said, what puts Saint Lucia apart is not just its stunning beauty but more than anything else, it’s the quality of our people, our charm, sincerity, and goodwill. Our personality is our greatest asset. We are getting there, slowly but surely.

4.3 HEALTH

In 2014, we were able to rehabilitate and reopen the Dennery Hospital.

Site preparation for a new polyclinic in Dennery has commenced. This would ensure that the
communities of the East Coast, from Morne Repos to Thomazo, can have ready access to secondary healthcare. I expect that this year we will see the commencement of work on a new Wellness Centre for Anse La Raye/Canaries. In this year too, we will commission the new National Hospital. It will be called the Owen King EU Hospital, in honour of another distinguished son and also, in recognition of the generosity of the European Union to our country.

The reconstruction of the St Jude Hospital has been a sore point especially for our citizens in the south,
but thanks to the kind assistance of our friends from the Republic of China (Taiwan), and I must add, the
Government of Mexico, we have made good, solid progress.

I am pleased to report that there is light at the end of the tunnel.

This year promises to be a defining year for health care in Saint Lucia and we must take serious steps to secure the future of that sector.

We have promised you that our mission is to provide every citizen access to quality care, and we will deliver. The key factor to improving access to health care and offering quality service to our people is the resolution of the issue of the cost of health care.

Too many in our midst cannot afford to pay the cost of that service. We must face this issue squarely
and resolve it once and for all.

In that regard, I have written to the Leader of the Opposition and suggested that we establish a Joint
Parliamentary Committee under the chairmanship of Former Prime Minister Stephenson King, to review
the financing options for Universal Health Care.
I have suggested that Senator Dr. Stephen King be invited to serve as Secretary to the Committee.
We need to protect the issue of access to health care from the whirlwinds of political warfare and competition.

4.4 AGRICULTURE

We also hope to build on what was a strong year for agriculture. The Ministry of Agriculture, along with
our local farmers, deserve a great deal of credit.

They have had to deal with natural disasters and with Black Sigatoka. Our banana producers, working
with the officers and leadership of the Ministry, have begun to see a gradual but steady increase in
production.

Despite the natural and trade challenges that our farmers have faced over the years, they continue to
make an important contribution to our foreign exchange earnings and food security. We must applaud
the hard working farmers who remain committed to the soil and the development of the sector.
The Ministries of Agriculture, Education, Health and Social Transformation, with the help of corporate
partners like LUCELEC and Consolidated Foods, and the Government of Brazil, have expanded and retooled the Schools Feeding Programme as part of our national response to the United Nations Zero
Hunger Challenge.
If, as anticipated, the pilot programme is successful, we will look to introduce it to more schools this year.

4.5 EDUCATION

The One Lap Top Per Child Programme has been extremely well received by students and teachers alike.
As promised we are enlargening the programme to include form three students and to this end, I am
pleased to remind parents that this month we will be delivering laptop computers to all students in
forms three and four.
These laptops, wisely used as a teaching tool, can help to transform the delivery of education in our
classrooms.

New AccessCentres will expand Wi-Fi access to our students. New Access Centres with free wireless
internet service are under construction in Vieux-Fort and Micoud. These two Centres will build on the
success of a similar facility opened in Soufriere last year.
Great strides have been made in renovating our aging schools.
As of September 2013, renovations were completed in the following schools: DerniereRiviere
Combined, Dennery Primary, Desruisseaux Combined, and Saltibus Combined.
The Fond Assau, Corinth Secondary, Clendon Mason Memorial, and the Vieux Fort Infant are presently
being renovated.

The Canaries Infant School is under renovation and reconstruction following the passage of the
Christmas Eve Trough on December 24, 2013. Other schools will follow in the near future.

4.6 ENERGY

In 2014, we also made some important strides in sustainable development, especially in the sphere of
energy. We are confident that this year we can finally begin to tap our vast geothermal resources, a concept we have been exploring as a nation for nearly forty years.
The development of alternate energy resources will have a positive effect on our economy, as we seek
to reduce our reliance on fossil fuels. I have committed Saint Lucia to obtaining thirty five per cent of our energy from sustainable and renewable sources by the year 2020. That is now just five years way. It is an ambitious goal, but we are taking steps towards achieving it.

4.7 FOREIGN POLICY

In 2014, Saint Lucia continued to enjoy strong international relations. The readjustments in our foreign policy positions and outlook have paid rich dividends. Hon. Alva Baptiste, the Minister for External Affairs, deserves commendation. Consider for a moment the following.

After the Christmas Eve Trough of December 24, 2013, the Governments of Mexico and India made
grants of US$500,000.00 to us. The Government of Turkey provided US$280,000.00. The Republic of China (Taiwan) provided US$200,000.00. Other countries generously donated relief supplies of various kinds. We are thankful to all of these countries for the vast outpouring of support in our hour of need.
Some in our midst have criticized our engagement and friendship with Venezuela, a historical friend.

Yet, it is a friendship that has yielded extraordinary benefit to the Government and people of Saint Lucia.
From ALBA alone, this Government has received nearly $35.0 million dollars in grants, over EC$ 7.0 million to finance the construction of bridges and recently $27.0 million to prolong the life of NICE.
In addition, this year, as you heard earlier, Venezuela, acting through Petro-Caribe, has donated some
7000 laptops to our school children.

We were excited to welcome all of the independent members of the Organization of Eastern Caribbean
States to the ALBA family.
We saw a historic landmark in the latter part of the year, as the ALBA family, the Caribbean Community, and indeed the world, rejoiced with the news of a thaw in relations between Cuba and the United States. Over the years, Saint Lucia, like other CARICOM States, has urged the United States to normalize its relations with Cuba and end its embargo against Cuba.

President Obama has gone where no other recent American President has had the courage to go. We
applaud him for his courage, foresight and wisdom.

5.0 THE ECONOMY

I now turn to a subject that is on the lips of everyone; the economy.Although we are not yet out of the woods, we are seeing some good, sustained progress in 2014. We
are trending positively in terms of net foreign investment, in the hotel sector and elsewhere. The
international community has renewed confidence in Saint Lucia, in its leadership and in its people.
We are building a sustainable economy and providing jobs for Saint Lucians.

5.1 GROWTH

As you heard earlier, the economy showed some signs of strength in our leading sector, tourism.
However, the momentum towards a return to growth continues to be undermined by weaknesses in the
construction and manufacturing sectors.
We experienced a moderate rise in inflation during the first three quarters of last year. That has now
abated.
Inflation is now trending downwards on account of lower fuel prices. This is another welcome
development.

5.2 FISCAL PERFORMANCE

With respect to public finances, central government’s fiscal position improved in the first half of the fiscal year, 2014/15.

This was mainly due to higher revenue receipts and lower expenditure. Total revenue and grants is
projected to increase by 2.3 percent while total expenditure will remain flat, resulting in a current
account surplus of $5.6 million and a lower overall deficit of 5.2 percent of GDP. Accordingly, this has led
to a deceleration in the rate of increase in public debt to 2.1 percent compared with the previous three
years.

It really is unfortunate that we did not succeed in reducing the fiscal deficit even further. Of course, the
explanation lies in our failure to secure agreement among all parties to contain and reduce the cost of
the Public Service.

We have reached agreement with some unions that is, the unions under the umbrella of the Trade
Union Federation. I thank them for coming to the negotiating table and understanding that we all must
put the needs of the country first. Of course, I am enormously grateful to those unions for accepting a
wage freeze but as I have explained in the past, a wage freeze addresses future costs not existing ones.
So even with a wage freeze, other measures will be necessary to contain our recurrent expenditure.
Wages and salaries form a substantial portion of Government’s expenditure and we must, collectively,
find a stable, sustainable solution in the shortest possible order.

5.3 UNEMPLOYMENTUnemployment continues to be a stubborn problem.

This situation would have been far worse had it not been for the interventions of the Government to
establish NICE, expand opportunities in training for employment in the cruise sector and continuing its
programme of employing small contractors in construction projects, island wide.
Employment opportunities provided through STEP, HOPE, Caretakers Programme continue to bring
relief to thousands of Saint Lucians. The better than expected performance in tourism has also led to
more hiring by some hotels.
The cruise sector does present us with some possibilities. Already, young Saint Lucians are reaping the
rewards of the Cruise Ship Employment Programme.

I want to share with you one recent experience to highlight the potential of this programme.
The current phase of the programme was introduced in the second half of 2014. As you know it has a
training component. In this phase, ninety one (91) Saint Lucians have successfully completed their
training with Springboard and secured employment on Carnival Cruise Lines.
Of the ninety one, eighty four (84) have been recruited for skilled positions, while only seven (7) were
offered semi-skilled jobs.

I wish to thank Carnival Cruise Lines, Springboard Training and Development Centre, the National
Insurance Corporation and the Saint Lucia Development Bank for co-operating with the Government to
provide these opportunities to our young people. More young people will be given the opportunity for
employment on Carnival Cruise Lines in May/June this year.

However, despite these efforts and successes, we are not going to make a significant dent in
unemployment until we see a return to investment and growth in our economy.
Meanwhile, this Government will continue to ease the burden of those who are unemployed.
Apart from relentlessly pursuing new investment, we plan to increase resources for training for
employment in the cruise sector, extend opportunities in NICE, and make even more robust
interventions in the construction sector to boost employment.

5.4 OUTLOOK IN 2015

I am optimistic about the prospects for 2015.
Barring unforeseen events or developments, I expect our economy to return to a trajectory of growth.
This optimism is anchored on the strengthening of the global economy, particularly our principal tourism
market, the United States of America. Of course, the situation in Europe is worrisome but of that group, our other major source market for
tourists, the United Kingdom, appears to be holding its own.
More importantly, domestic real economic activity is expected to recover in 2015 on account of stronger
performance in the construction sector supported by continued growth in tourism and lower
inflationary pressures due to expectations of falling fuel prices.

6.0 DRIVING REFORM

One of the areas that causes me deep concern is the pace of reform in our country.
We are slipping behind our competitors. The Economic Freedom Score done by the Heritage Foundation
scored Saint Lucia 33 in the 2014 Index of Free Economies. Saint Lucia scored 2nd out of twenty nine
countries surveyed in the South central Region.
Its overall score is above average in the world.

While I welcome this ranking, I cannot ignore the fact that we are slipping in the rankings as the best
place to do business in the Caribbean. In 2007 we were ranked Number 27 in the world and Number I in
the Caribbean.

Since then we declined steadily. By 2014, we slipped to 100, eclipsed by five Caricom States.
Why, because we have dithered in making modest changes to the way we do business and make
decisions. We have become sclerotic, bureaucratic, and inefficient. We are mired in red tape. We invent
problems rather than seek solutions to them. We have become frightened of innovation and change
sometimes clinging to what we know best.

We have to understand that the world has dramatically changed around us and if we do not change with
it, we will become irrelevant. Some changes have been initiated by the Public Sector Modernization
Unit, for example, the introduction of payments by credit cards, and the one-stop call centre.
These, do not, however, touch the administrative processes particularly in respect of economic and
commercial transactions.

I propose in the next few weeks to create a unit whose sole purpose would be to cut red tape across
Ministries and agencies of the Government to drive reform. The unit will focus exclusively on
competitiveness for economic development.
In effect, I plan to redesign the reform process to allow key reforms to be implemented through a
specific unit to allow for the integration of outcomes, procurement of technical skills, and more
definitive timeframes for completion.

Staff for this unit will be drawn from the existing pool of public officers.7.0 CRIME AND LAW ENFORCEMENT
As a nation, we must pray for a more harmonious, tranquil and peaceful 2015.
In 2014, the Royal Saint Lucia Police Force recorded a reduction in the volume of major offences
including motor vehicle theft, burglary and sexual offences.
Saint Lucia has experienced a fourth consecutive year of reduction in the number of homicides.
Homicides in 2014 totaled thirty-four. But any loss of life is regrettable. One homicide is already one too
many. We must be resolute in our efforts to continue the downward trend in the number of homicides
in fair Helen.

Sadly, there were twenty-one fatal motor vehicular accidents last year, the same as the previous year.
Already, this year we are off to a bad start. It is particularly traumatic when the victims are children, as was the case a few days ago. Our condolences, prayers and sympathy go out to the families of this recent tragedy.

We really need to re-institute programmes of road safety to deal with the carnage on our roads.
The Police Force must be commended for its work in 2014, especially as regards its social outreach. Law enforcement officials built or renovated houses for needy persons in Babonneau and Choiseul. The Police Commissioner hosted an island wide series of school lectures and visits as well as Town Hall meetings and appearances on a number of radio programmes.
While it is important to educate the general public on the work of the Police Force, it is equally
important for the police to hear our citizens, in order to make policing more relevant to the community.
There have also been specific interventions in some of our more troubled areas to minimize the
incidence of gang related activities.

7.1 REPORT ON EXTRA-JUDICIAL KILLINGS

There is, unfortunately, one matter that must be brought to conclusion in the days ahead. It is the
allegations of extra-judicial killings against certain members of the Royal Saint Lucia Police Force during
the years 2009-2011.
I wish to confirm that the Government of Saint Lucia has received the report from the Team of
Investigators. I confirm as well that the Cabinet of Ministers is deliberating on the contents and
implications of the report.
This address is not the occasion to share the findings with you but I intend to do so in a separate address
in early February.8.0 AN ALARMING TREND
We also witnessed an alarming number of suicides in 2014.
The Ministry of Health and the Mental Wellness Centre are making every effort to ensure that
counseling and psychiatric services are available to persons of all ages who are suffering from
depression and other related conditions. Depression is a very serious matter, and persons from every
stratum of society can be affected.
It is important that Government furnish our citizens with the necessary safeguards, but we must also
implore families, the religious community and the wider community to reach out to those in need
before they arrive at this terminal stage.
Let’s go back to our tradition of being our brother’s or sister’s keeper.

8.0 THE ISSUE OF FUEL PRICES

Before I close, there is one issue that I wish to touch on, albeit briefly, only because it has aroused intense debate and discussion, all healthy for our democracy. It is the issue of fuel prices.
I will confine my comments to two specific issues as I believe that the full argument is best dealt with in other fora.
The recent adjustments by the Government, has reduced the price of gasoline by $2.20, diesel by $1.93,
a 20lb LPG by $4.04, a 22lb LPG by $4.43 and a 100lb LPG cylinder by $20.17.

The reduction on gasoline was based on the following calculations on the average price of oil over a
three month period prior to January 12, 2015:
Average Landed Cost- $8.60;
Distributors Margin- $1.07;
Retailer’s Margin- $1.05;
Service Charge @5% – 0.43 cents;
Excise Tax- $2.50.
Price per gallon – $13.65.
When the wholesaler’s as well as the retailer’s margins are added to the landed cost of the fuel over the
accounting period, the total cost then becomes $10.62.
It boggles the mind, therefore, that gasoline can be sold below $10.00 at this time, when, before any
taxes are imposed the price of gasoline is well over $10.00.Some have argued that the Government has imposed hidden taxes on the cost of fuel. Frankly, I do not
know how that could be done in the full view of the suppliers, Rubis and Sol. The truth is whilst in
opposition, we promised to reduce the amount of taxes imposed on petrol and we have done this.
So rather than the “hidden taxes” claimed by those who know better, the reality is that this government
has reduced taxes on petrol.

My good friends on the Opposition, through their Political Leader, say that they would go back to the old
system of adjusting fuel prices every month and abolish subsidies on fuel. This may be tempting as the
current price of oil has declined significantly. But as sure as the sun rises and sets, the price of oil will rise again. What happens then? More volatility?
More ominous for the people of Saint Lucia is the suggestion by the Political Leader of the UWP that subsidies should be removed. Based on the last adjustments, if subsidies are removed on the price of propane, a 20lb LPG cylinder will sell for $47.15, a 22lb cylinder would then sell for $51.87.
That is the recipe of the opposition for caring and for being sensitive.

No Government should, of course, bury its head in the sand like the proverbial ostrich.
If the price of a barrel of oil declines even more sharply in the next few weeks, it may well make sense to
adjust the period of calculation from a period of twelve weeks to eight weeks or even less in the short term. Whatever adjustments that are made, we need always to remember that we also have to ensure that our fragile fiscal situation does not deteriorate any further.

8.1 THE PUBLIC TRANSPORTATION SECTOR

In all of this, there is a special category of persons who deserve our thanks and appreciation. I refer here
to our minibus drivers. More often than not, we criticize them and heap abuse on them.
Today, I thank them for putting the interests of commuters and the interests of this country first.
They have been urged, goaded and even threatened about increasing bus fares. They have resisted
these pressures. I thank them. I thank them too for putting the people of Saint Lucia first.

9.0 CONCLUSION: SUPPORT EACH OTHER FOR THE GREATER GOOD

Just as we have benefited from enjoying bilateral relations with foreign Governments, we must be able
to cultivate relations amongst our own people.We recognize that the private sector, the Parliamentary Opposition, civil society, Trade Unions and nongovernmental organizations like the National Youth Council, all have a role to play in building a better
Saint Lucia.

We embrace every opportunity to reach out to the people of Saint Lucia, to share with them our vision
and to work together to achieve that vision.
As we set out on the journey into a new year, I encourage you to reach out to one another. Pledge to
make 2015 one in which we as Saint Lucians truly support one another for the greater good. I have said
previously that Saint Lucians are capable of great things.

We are a talented people. We are a great people.
Let us truly bring our best to the fore over the next twelve months. To all of you, I give my sincere
pledge that my Government will work tirelessly to do its part.
I wish each and every Saint Lucian at home and abroad a peaceful, prosperous and blessed 2015