Articles

Fri 8th Aug 2014

End ULP economic madness - SVG needs Green financial innovation

It is ULP regime economic and financial incompetence and lack of vision that has caused such a prolonged period of high poverty, high unemployment, high crime rate and extensive suffering for our people. SVG must change from ULP regime economic madness to a Green government in order to get a strong economy, financial competence and thousands of new jobs.

In 2001, when the ULP regime took office, the price of a barrel of crude oil was around US$35. Everyone knows that long-term, the price of oil will go up and up, because it will become more scarce and harder to access.

SVG is highly dependent upon oil to produce the electricity we need. So, in 2001, the ULP regime should have started a rigorous campaign to change over to using renewable energy to produce the electricity we need, and to stop our economy being squeezed, as more and more money would be used to pay for the ever increasing price of oil.

Instead, the ULP regime has openly displayed their economic ignorance and kept our country heavily dependent upon oil. At present, the price of a barrel of crude oil is around US$105 and we can see that our economy is shuddering to a halt, because so much of businesses and households money is wasted on paying for electricity produced by expensive oil.

We are paying about three times as much money for the same unit of electricity, because the price of oil has increased three-fold since 2001. The ULP regime's lack of vision and foresight is killing the economy and making our people suffer. All around the country businesses say they struggle to get sales and it's the worst it's been in 40 years.

Even after 13 years of the economy getting worse and worse, 10 years of consecutive fiscal deficits, and 3 years of consecutive failures of the audit of Public Accounts, the ULP regime still exhibit economic madness.

The ULP regime has imposed a combined tax and customs duty of around 25.35% on solar panels. At a time when our country must desperately turn to Green energy to help save the economy, the ULP regime is actively putting barriers in the way to discourage households and businesses from investing in solar panels to produce cheap electricity.

There is little more stupid than this and this point in itself illustrates the economic madness of the ULP regime leadership.

A Green government will abolish the combined tax and customs duty of around 25.35% on solar panels and all taxes and customs duties on wind turbines and all other equipment that produce electricity from renewable energy. This will make it much easier for households and businesses to produce cheap electricity from renewable energy.

We will set a target of having the majority of households and businesses producing cheap electricity from renewable energy and the majority of the nations electricity supplied by renewable energy. This will make electricity much cheaper for everyone. A number of people have told SVG Green Party Leader, Ivan O'Neal, that they have adopted renewable energy and now no longer have to pay Vinlec big bills of hundreds of dollars each month.

With renewable energy and lower electricity bills, households and businesses will have more money to spend on other things. This Green financial innovation means that households will be able to spend more money in shops and other businesses. Businesses would then have more sales and be able to employ more people.

With more money circulating around the country, we will see an increase in new businesses, and investment in innovation and technology. It is the high price of electricity produced from expensive oil that inhibits new businesses starting up and stifles business growth and economic growth.

A Green government will also set up an Independent Service Commission to calculate the monthly fuel surcharge rate at Vinlec. The fuel surcharge calculation and financial statistics will be transparent and put on public display. This will ensure that our people will get cheaper and fair-priced electricity. At present, the fuel surcharge is usually higher than the charge for energy used. This is unfair.

SVG needs Green financial innovation. We have had ULP regime economic incompetence for far too long.

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