Grenada PM outlines job creation in economic stimulus plans

Grenada’s Prime Minister Tillman Thomas.

ST GEORGE’S, Grenada, April 2, 2009 – Grenada’s Prime Minister Tillman Thomas is promising to create more than 3,000 jobs this year as part of a stimulus package for his country’s economy.

In an address to the nation, Thomas said the country was beginning to feel the effects of the global economic downturn and measures are being put in place to simulate activity and arrest the economic decline.

Under the plan, the implementation of a Road Improvement and Maintenance Programme, a Farm Labour Support Programme aimed at revitalising the agricultural sector through the provision of labour for specially targeted farms and agricultural activities, a water supply project and the rehabilitation of many government buildings, will create 3,382 jobs.

The Grenada Prime Minister said that a number of social programmes will also be introduced.

“Government stands prepared to increase the number of persons eligible for assistance under the Public Assistance Programme from the present 4000 to 4600. It should be noted that this process will take place throughout the remainder of the year as the audit of the list continues,” he said, adding that plans are also afoot to commence the Skills For Inclusive Growth programme in September under which at least 300 young people will be trained annually over the next four years.

Thomas said steps had to be taken because most of the large tourism development projects have slowed down or stopped due to a lack of financing and tourist arrivals have declined, bank liquidity has tightened and some jobs have been lost.

He said that in order to advance private sector projects, Cabinet has established a Business Facilitation Committee “to meet with the developers on an ongoing basis to identify and assist in removing bottlenecks in the way of implementation and completion of these projects”.

“At this moment, government is engaged in negotiations with a foreign bank aimed at assisting one or more of the developers in raising concessional financing for their projects. Given the special disadvantages in the rural areas at this time, government has decided that special consideration should be given to attracting businesses in the rural community,” Thomas said.

Recognising that small business accounts for more than half of all employment in the island, Thomas said that sector would also be given a boost with the launch of a small business entrepreneurs’ programme next month.

“This programme will provide finance, training and outreach services by the Business Development Centre of the Industrial Development Corporation. The programme aims to provide financial assistance to a targeted number of 100 small entrepreneurs to assist them in starting new initiatives, and or improving their current business. The sum of EC$1 million is being injected into this programme,” he said.

Famers are also getting a helping hand. In collaboration with the European Union and a local financial institution, a rural credit scheme will be established to provide support for many farmers to dramatically increase local fruit and vegetable production.

Within the next month, the Marketing and National Importing Board (MNIB) will also launch a Market Guarantee Scheme. The MNIB will be charged with providing market intelligence and guaranteeing the badly needed market for farmers’ produce.

The Grenada leader has also extended the tax amnesty till the end of this month to give businesses and individuals a chance to make a fresh start.