SXM TALKS (14.04.2020) The St. Maarten government will start to implement the St. Maarten Support Relief Plan (SSRL) this month. The main aim of the stimulus plan is to avoid layoffs and prevent companies from going belly-up during the current coronavirus COVID-19 crisis. A key component of the plan is government’s plan to provide a payroll subsidy to the “most affected” businesses to cover up to 80 per cent of their workers’ salaries for a three-month period. Self-employed persons such as independent taxi drivers, vendors, tour operators, and artists, etc., can also benefit from income support.
The main aim of the stimulus plan is to avoid layoffs and prevent companies from going belly-up during the current coronavirus COVID-19 crisis. A key component of the plan is government’s plan to provide a payroll subsidy to the “most affected” businesses to cover up to 80 per cent of their workers’ salaries for a three-month period. Businesses can cover the remaining 20 per cent. To qualify for the payroll subsidy, businesses have to “prove [that they have encountered] hardship” of at least 20 per cent. Self-employed persons such as independent taxi drivers, vendors, tour operators, and artists, etc., can also benefit from income support.
PHILIPSBURG–The St. Maarten government will start to implement the St. Maarten Support Relief Plan (SSRL) this month, irrespective of whether a response is received from the Dutch government in time.
The plan was sent to Members of Parliament (MPs) on Monday for their approval, Finance Minister Ardwell Irion told The Daily Herald, “And no. I am not waiting on the Dutch position. We will be executing [the plan – Ed.] this month,” he said. “We will also be launching a website by the end of the week.”
The main aim of the stimulus plan is to avoid layoffs and prevent companies from going belly-up during the current coronavirus COVID-19 crisis. A key component of the plan is government’s plan to provide a payroll subsidy to the “most affected” businesses to cover up to 80 per cent of their workers’ salaries for a three-month period.
Businesses can cover the remaining 20 per cent. To qualify for the payroll subsidy, businesses have to “prove [that they have encountered] hardship” of at least 20 per cent. Companies will have to apply for the payroll support. The subsidy to cover up to 80 per cent of the workers’ salaries will not be given directly to workers, it will be given to companies which will in turn pay it to their workers in an effort to keep more persons employed.
Self-employed persons such as independent taxi drivers, vendors, tour operators, and artists, etc., can also benefit from income support.
Persons who are already unemployed can apply for the already-established unemployment benefits from government.
The intention is for the subsidies to apply to the workers’ April salaries.
Another part of the plan is providing low-interest loans to businesses that can be used for expenses such as the purchasing of products, rental and utility payments, and other expenses the business may incur.
Government has requested NAf. 254 million to cover the cost of its Relief Plan for the first three months. It was requested that the funds be provided as a grant and not as a loan. The Netherlands has asked government to submit a proposal for the second quarter of the year, hence the request for three months. However, the overall plan has a scenario for nine months.
Government is expected to receive a decision from the Dutch government on its request this next week.
The plan was presented to the Committee for Financial Supervision CFT on April 4 and to the Ministry of Home Affairs and Kingdom Relations BZK on April 5.
The SSRP will cover “direct relief,” which includes a payroll support programme, income support programme, a soft loan programme, and an under-employed programme for an amount of NAf. 108.44 million. For the unemployed, the established unemployment benefits will continue.
The SSRP also includes funds to compensate for the loss of government income for an amount of NAf. 89.2 million to enable government to carry out already-existing but now expanded programmes, a food voucher programme and a food boxes programme for the most vulnerable groups, meals for the elderly and psycho-social care.
An amount of NAf. 56.28 million has been budgeted for the additional healthcare expenses and is also intended for support to Social and Health Insurances SZV and St. Maarten Medical Center (SMMC).
The request to the Netherlands was prepared in close consultation with CFT and with guidance from the International Monetary Fund (IMF).
The COVID-19 pandemic has had a negative impact on St. Maarten’s healthcare system and economy, as it has done to countries worldwide. Being a tourist-based economy, closing borders and “locking the island down” has directly affected the economy. St. Maarten has not yet recovered from the financial repercussions of Hurricane Irma. This, in combination with the slow season and no timeline for the recovery of global tourism, makes the island more vulnerable than most.
Government acknowledged that it is imperative that adequate measures are taken to absorb the economic and social impact of this new shock and to achieve rapid recovery of the economy. It also acknowledges the importance of supporting businesses and persons who are at risk of losing their jobs.
Source: The Daily Herald https://www.thedailyherald.sx/islands/govt-stimulus-plan-sent-to-mps-for-approval-monday