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The US$ will still be used when currency changes

Marlin says public being misled about currency, dollarization

PHILIPSBURG--The switch from the Netherlands Antilles guilder to the Caribbean guilder in 2012 will not have any bearing on the use of US dollars in St. Maarten, Constitutional Affairs Commissioner William Marlin told reporters recently.

He was debunking "misinformation" which he said was being peddled in the community by some politicians about this issue.

Tourists and businesses will be able to use US dollars. They will not have to change their US currency to the Caribbean guilder in order to do business here or to shop here, he said. Persons with US dollar accounts in St. Maarten will be able to maintain their accounts. The Caribbean guilder will have the same value as the current Netherlands Antilles Guilder Marlin said, adding that "absolutely nothing will change except the name and look of the currency."

The Caribbean guilder will have a fixed exchange rate of 1.79 Caribbean Guilders to one US dollar. The new currency will come in 5-, 10-, 20-, 50- and 100-guilder notes.

Marlin said some politicians were deliberately misleading the public about the issue of currency and dollarization telling them that they will no longer be able to use dollars when the new currency is introduced.

The decision for St. Maarten and Curaçao to establish a joint central bank and common currency - the Caribbean Guilder - was agreed to in the Hague in the 2006 final declaration under the tenure of Democratic Party leader and former Constitutional Affairs Commissioner Sarah Wescot-Williams. It was reconfirmed in November 2008.

However, Wescot-Williams and United People's (UP) party leader Theo Heyliger have made a sharp turnaround from their previous stance about establishing a St. Maarten currency.

Marlin said "everything will remain the same" when the Caribbean Guilder comes into effect.

"If one has US $100,000 in the bank it will remain US $100,000. If you have NAf. 100,000, what will change in the future is that instead of being in the Netherlands Antillean guilder, it will be the Caribbean Guilder currency and it will have the identical value as the current Netherlands Antilles guilder...

"I was recently approached by a concerned resident who said that members of one political party had told them that William Marlin was against dollarization and is promoting a currency that will not allow for the use of the US dollar," Marlin said.

He said this was a "clear" attempt to mislead the public and "place fears into the minds of people."

He said the misinformation that persons would have to close their dollar accounts and change their US dollars into the local currency is far from the truth.

"If businesses that depend heavily on doing business in dollars and who do their transactions in dollars are no longer allowed to have a dollar account and would need to change their money in a local currency, this can signal quite some losses for those businesses," Marlin said.

The Caribbean guilder will not come into existence on until January 2012. In the interim the Netherlands Antilles guilder will be used during the transition period from island territories of the Antilles to country status for St. Maarten and Curaçao.

"To dollarize or not to dollarize was not a decision taken by the National Alliance or William Marlin. It is a decision taken jointly by St. Maarten and the rest of the Kingdom partners and signed off on, on November 2, 2006 and again confirmed in November 2008 at the Westin Hotel."

"It is clearly politics being played with this issue and the inability to rise above petty politics and make the government look bad in every way that you can and misleading the public rather than educating the public by telling people that they won't be able to use dollars," Marlin said.

"They are telling people all kinds of things in the privacy of their homes but, some do come back and ask if this is true."

In the meantime, Constitutional Affairs Minister Roland Duncan said during Saturday night's Arts Video Studio (AVS) second political debate that St. Maarten stands to lose US $30 million per annum from the one per cent tax imposed on dollar withdrawals if it switches to dollarization. It will also incur huge expenses, Duncan said.


Local News
 
Marines ready to leave after successful hurricane training

page3b096PHILIPSBURG--Dutch Marines ran riot-control and disaster-relief drills to prepare for post-hurricane controls this year.

Most of the Marines who were seen driving military vehicles and running scenarios for hurricane exercises HurEx 2010 will be returning to Aruba, today, Tuesday, the Marines' public relations officer said.

The team was scheduled to arrive last week Sunday, but Hurricane Earl's passage through the Northeastern Caribbean pushed up their schedule by a day. Two other teams had arrived by Tuesday. Marines helped clean up after Earl, felled trees and placed debris on the roadsides. "We have gained good experience after Earl," detachment commander of the Marines Major Jan Willen van Dijk was quoted as saying in a press statement Monday.

Marines ran imaginary scenarios, like looters descending on Front Street after a major hurricane. They practised sedating rioters and restoring order with minimal violence. They also trained in treating and helping injured disaster victims.

These Marines, who are stationed in Aruba and Curaçao, train with local first-responder and disaster-relief teams annually to prepare for hurricanes. This year, HurEx immediately followed the glancing blow from Earl's passing.

"Marines are well trained and able to assess situations well," Van Dijk said. "Yet in this way we can dot the I's." Marines also did their usual training while here to be ready for the HurEx, Van Dijk said.


Local News
 
Cable TV back in most districts

MADAME ESTATE--Cable TV is back in most districts after Hurricane Earl's passing last week, St. Maarten Cable TV said Monday.

Technicians are still repairing lines to houses and businesses that the Category II storm knocked down as it brushed through the region. Only a few areas – like Pointe Blanche's Chin Cherry Road and others – remained without cable TV up to Monday, St. Maarten Cable TV Managing Director Beulah Jonis told The Daily Herald.

Areas without cable TV probably have damaged lines, she said.

Jonis urged residents to prune trees and clear away debris from around their homes before storms passed, insisting that basic cleaning could mitigate a storm's impact and speed up service restoration. "They should cut down those trees. Most of the damage is caused by them pulling down lines," Jonis said.

Many places were knocked out of service because of fallen trees and floating debris. However, the only channel that is still out after Earl destroyed three of St. Maarten Cable TV's satellite dishes is a premium channel that had already been experiencing problems.

Technicians are "working area by area" now to put the cables back onto their posts to restore cable TV service, she said, asking customers for their patience.


Local News
 
Frans continues effort to get Air Berlin flight

PHILIPSBURG--Commissioner of Tourism and Aviation Affairs Frans Richardson recently returned from Berlin, Germany, where he continued his efforts to secure additional airlift for the island from the European market, this time through Air Berlin.

The Commissioner met with executives of the airlines primarily to discuss strategies on getting major wholesalers in Germany to start selling and promoting St. Maarten. He said a plan of action will be developed on how to attract the German traveller to St. Maarten.

Additionally, he said, preparations are underway for St. Maarten to host a large delegation of travel writers and wholesale representatives from Germany to St. Maarten later this year.

"This trip is important for stakeholders from Germany to see the island first hand before they begin selling and promoting. We will also take them to Saba, Anguilla, St. Barths and include the French side. We also want to highlight the connectivity options that exist with Winair to the rest of the Caribbean," Richardson said. "They are very interested in St. Maarten, but we still have a lot of work to be done," he added.

Richardson said no start date for a flight has been targeted, but he hopes to see it realised in the course of 2011. "I am committed to securing this new airlift from Europe," he said.


Local News
 
DP questions rental of the ‘new’ parliament building

PHILIPSBURG--Opposition Democratic Party (DP) says there are still numerous unanswered questions surrounding the rental of the Caribbean Palm building to house the new 15-member Parliament of Country St. Maarten for US $96,000 per month.

DP Councilwoman Maria Buncamper-Molanus told the press Monday that the party will be writing to government on the matter, with the hope of getting information on the bidding process followed to acquire the building on Front Street and how the contractors for the refitting have been chosen.

"We [the Island Council] don't know what we are getting and considering the new laws passed on government accountability, we will be seeking answers," she said. "Why was this money [being use to rent and repay the owners for the refitting the building] not being used to complete the new Government Administration Building, called an expensive pigeon coop by government when in opposition."

DP candidates for the September 17 early Island Council elections have indicated that they will not use the Caribbean Palm building if/when elected. Asked about this, Buncamper-Molanus said there was still time to reverse the decision to rent the building. "After all, it is the people's money and from all indication the building will not be ready by 10-10-10, when the new parliament will be sworn in."

DP leader Councilwoman Sarah Wescot-Williams said she completely rejected the argument by the National Alliance (NA)-led coalition that renting the building had become necessary because DP had not completed the new building on Pond Island.

"One of the first announcements by the NA/Heyliger/Laveist government was that the new financial structure was to be in place, and some time later government said it was no longer going in that direction and was looking at new options," Wescot-Williams said. "We totally reject government's argument that DP has been negligent. What have they done in the past 15 months in office? That argument would have stood five to seven months ago, but not now.

Buncamper-Molanus said the building on Pond Island and the present administration building on Clem Labega Square "belong to government," thus investments should be made into the properties that belong to government and people.

NA leader Commissioner William Marlin had defended the rental of the building in a newspaper interview, saying that government will be paying less than the average price per square metre to rent the Caribbean Palm building.

Government will be renting four floors, including the loft in the five-floor building for US $96,000 per month.

Caribbean Palm owners will be responsible for securing contractors to carry out the necessary interior work in time for October 10. At least four faction offices, meeting rooms and separate offices for each of the 15 parliamentarians will be among the facilities in the building.


Local News
 
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