St. Vincent and the Grenadines Prime Minister Dr. Ralph Gonsalves has announced a cost-of-living initiative aimed at supporting 3,000 vulnerable households over three months. Beginning in December 2024, eligible households will receive a monthly allowance of $175, referred to as “COLA Special.”
This announcement was made during his address on the 45th anniversary of the country’s independence from Britain. Gonsalves emphasized that the initiative is means-tested and targets those particularly in need. “This will cost for the three months, EC$1.575 million (One EC dollar=US$0.37 cents) or EC$525 monthly,” said Gonsalves, adding that the program will be executed by the Ministry of National Mobilization.
Prime Minister Gonsalves said the government will evaluate this program after the initial roll-out, with a view to a possible continuation further into 2025.
As has been the case for over a decade, Gonsalves used the speech to make a series of “announcements”, several of which were not new.
The independence address could be the second to last before general elections, which are constitutionally due by February 2026 but are widely expected before the end of 2025.
Political observers often use the speech to gauge when the general elections are likely to be called.
Gonsalves also announced that his ruling Unity Labour Party (ULP) government would be ramping up its surveillance of “those unscrupulous retailers.
“We have some good retailers, and we have some want to gouge us — as you say on the road, ‘dig out we eye’. We have some unscrupulous ones who are reportedly engaged in price gouging,” he said.
Prime Minister Gonsalves said the government would use the Consumer Protection Act and the Price and Distribution of Goods Act “to the fullest to curtail price gouging, especially in the unusual circumstances, occasioned by Hurricane Beryl”.
Among the other new initiatives announced by the prime minister was the indefinite continuation of the policy that people who use less than 250 units per month will not pay any value added tax (VAT) on their bills.
He also said the duty-free concession on cement will be extended indefinitely.
“I am resolved to make cement in this country the most affordable in the entire OECS (Organisation of Eastern Caribbean States).”
He said the EC$600 income support monthly for unemployed, heads of households, owners of micro-enterprises, farmers, farm workers, fishers and their crew and the workers laid off in the tourism sector as a result of Hurricane Beryl will continue for a period in 2025.
Gonsalves also announced that 368 recipients of loans from the National Student Loan Company will receive one month’s relief in their repayment in December. He said these recipients have graduated from university and are current with their loan payments.
“I want them to spend a little better Christmas in post-Beryl,” he said referring to the category 4 hurricane that devastated parts of the country, mostly the Southern Grenadines on July 1, before leaving a trail of destruction in other Caribbean countries.
“This will cost the government just over EC$200,000,” Gonsalves said, adding that the relief is additional to the reduction of the interest rate on student loans to 4.5 per cent annually, as he announced last year and was implemented in Budget 2024.
In 2020, Gonsalves dismissed as “opportunistic” a policy announced by the main opposition New Democratic Party (NDP) that if elected to office it would have halved to 4.5 per cent the interest students pay on loans from the state-owned company.
Gonsalves also announced that second-year students of the community college and all teachers at all primary and secondary schools owned or assisted by the government will receive brand-new laptops.
“We estimate that there will be about 2,500, maybe slightly more. You will get them courtesy of the government in early 2025,” he said, adding that this is expected to cost more than three million dollars dollars.
He further said that all 320 new applicants for the one-year Support for Education and Training (SET) program who qualified have been approved for employment from November.
Further, SET employees who are Community College graduates will receive EC$200 more monthly on their existing stipend while those who are university graduates will receive $300 more.
Gonsalves noted that the current SET employees — over 200 — have had their stints extended to December 2024.
In the area of sports, he said the government, in conjunction with the private sector, football clubs and the Football Federation, will spearhead the establishment of a semi-professional football league “to make sure that our young football players make some money while they are playing football”.
Police officers who provided security during the T20 World Cricket Cup in June will be paid an estimated EC$500,000, the prime minister announced.
Gonsalves, who is also Minister of National Security, had said earlier this month that the police had submitted a bill of EC$780,000, and he had asked the acting Commissioner of Police Enville Williams for “a realistic document”.
He said on Sunday night that the government and the Commissioner of Police had reworked the numbers for the payment.
Gonsalves also announced that allowances for particular categories of public employees, including aggrieved police officers and junior doctors, will be reviewed upwards for 2025.
“Some of these allowances have not been increased for a little while, and we have to put that right,” Gonsalves said, adding that the details will be provided in the national budget of 2025.
He further said his government will beef up the state institutions responsible for citizen security, including the law courts, the police force, the Coast Guard, the prisons and the National Commission on Crime Prevention, adding that he would provide details in Budget 2025.
Gonsalves also announced that the duty-free concessions on “Christmas barrels”, which came into effect following Hurricane Beryl, will run through January 31, next year.
“So those who are late will have an extra month,” he said, adding also that the government will establish a national orchestra and a national choir this year.
The prime minister also noted that on October 24, the government awarded 104 national scholarships, national exhibitions, special awards and bursaries for university education on the basis of the results of the 2024 Caribbean Examination Council’s (CXC) CAPE and associate degree examinations.
Additionally, this year, 50 students were granted economically disadvantaged student loans by the state-owned National Student Loan Company to pursue university education.
The prime minister said the repair program for houses damaged by the April 2021 eruption of La Soufriere volcano and Hurricane Beryl will continue unabated until all the houses are repaired.
“I don’t have all the money as yet. It’s a huge task, but we are getting there. I’m gathering it bit by bit, day by day, sweet Jesus, and together, we will solve this housing problem that Beryl has created for us,” he said.
Gonsalves further said the government will restructure its sports department “to ensure optimal functioning in light of the huge expansion of top-quality sports facilities, the vastly improved performances of our sportsmen and women, and the increased roll-out of educational training and job opportunities for sportsmen and sportswomen”.
