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Subject: Zagers returns from Holland satisfied with meeting
Commissioner of Finance, Bruce Zagers, returned on Wednesday after his recent visit to the Netherlands. Zagers elicited that he landed back on his home island of Saba with a sense of satisfaction regarding the short-notice meeting in The Netherlands. Island Secretary, Menno van der Velde was also part of the delegation who requested the urgent meeting with State Secretary Jan Kees de Jager.
Zagers stated to GIS, “The delegation in Bonaire did not have the liberty to answer many questions posed by the BES islands. It was obvious during the session that the issues needed to be discussed further on a political level. The delegation was instrumental in assisting the islands with the arranging of the meeting with the State Secretary in Holland”
“I am very grateful for the hospitality and the acceptance that the State Secretary has shown the delegation during our short visit. Although we had little time to sufficiently peruse all the underlying documentation in the fourth draft tax law, together with Statia we were able to bring forward the main issues. These main points were debated between the two islands, Saba and Statia, and at the end one document was created which was discussed with the State Secretary and his delegation.” stated Zagers
Currently, the proposed fourth draft tax laws are still of a confidential nature which means that specific details of the meeting were not given to GIS during the interview. Zagers elicited that he did not want to compromise the process, as significant improvements of the proposed tax law have recently been achieved during the meeting in Holland. “In the future when the documentation is somewhat finalized, information campaigns by both the Island Government and the Dutch Ministry of Finance will be launched to inform the citizens of the Island. I can say however, that the new proposal has an obvious shift in direct taxes to indirect taxes, meaning that tax burden would be shared.”
The fourth draft tax proposal is based on four main principles. The new system should generate sufficient revenues, but should be more or less equal to what is currently being collected. The new system should be simplified thus making it easier to implement and execute on all levels. There should also be a broad based level of acceptance of the new tax system. This system should stimulate economic activities on the BES islands. The foremost points which were brought up were centered on the four principles. It was in this manner that the delegation members were able to substantiate their arguments about their various concerns.
While in Holland, Zagers held a brief meeting with Mr. M.A.F Groenen who is a senior policy maker who is focusing on the dollarization process on the islands. Groenen, whom recently visited the islands, was unable to meet all the Government representatives due to the tax presentation on Bonaire. This provided a good opportunity to meet while in Den Haag, as both Commissioners of Finance were present. Zagers stated to GIS, “Different scenarios were discussed as to how we would proceed during the transition period before 2011 when the US Dollar would become our official currency. Mr. Groenen assured us that ample time will be given and information will be distributed to the population in as early as 1st Quarter of 2010.”
Commissioner Zagers
SUBJECT: Zagers attends urgent meeting in Holland regarding new tax draft
Date: Sunday, October 25, 2009
On Saturday, October 24, Commissioner of Finance Bruce Zagers left Saba to urgently travel to Holland for a meeting with State Secretary of Finance, Jan Kees de Jager. This unanticipated visit to the Netherlands was deemed necessary by both Saba and Statia after an attending a presentation on Bonaire by Dutch Civil Servants regarding the fourth draft tax laws.
Zagers initially was hesitant to travel to the Netherlands on short notice, however, he stated that he felt a “sense of urgency” to meet with the State Secretary and that this was his deciding factor for the working visit. Commissioner Zagers informed GIS that, “A window of opportunity was made available by the State Secretary and we felt it necessary to take advantage of the opportunity to express the islands concerns about the proposed draft laws.”
Zagers stressed his dissatisfaction on how the process was handled. Proposals made in the third draft tax laws had been previously discussed at length and several agreements had been made. However, now being several months later, the Islands are presented with a new proposal which has been drafted unilaterally by the Dutch representatives. This new proposal varies significantly from the third proposal.
“The meeting in Bonaire was definitely an eye opener for the Islands”, stated Zagers. The meeting was adjourned on a few occasions making it necessary for the islands as well as the Dutch Delegation to hold private discussions. It was determined by the representatives of the BES islands that a letter would be send to the State Secretary voicing the BES islands concerns. This letter will be sent to the Ministry of Finance before the actual meeting with Saba and Statia.
The BES islands received the new draft approximately one week before the presentations on Bonaire. Recently, it was also learnt that this proposal would be sent to the second chamber for approval on Wednesday, October 28th; just a few days after the islands only received the opportunity to get a brief explanation on the proposed tax laws.
“Although the new proposal seems slightly better than the current tax system, there are still areas that vary tremendously from the third draft tax law proposal. I feel that the private sectors of the islands were not adequately taken into consideration with this new proposal. Any new inclusions in the new tax system will have major consequences for each island territory”.
Zagers concluded by stating,” This visit to the Netherlands will give both Saba and St. Eustatius the opportunity to plea their individual cases to the State Secretary of Finance. This seems to be our only granted opportunity to discuss this proposal before it goes to the Second Chamber. Although there is little time remaining, I look forward to a positive and fruitful meeting with Mr. de Jager.”
SOURCE: Saba Government Information Services
Commissioner Zagers
Civil Servants to receive back pay
On Thursday, October 8th, 2009, Commissioner of Finance Bruce Zagers announced news concerning the payment of the retroactive salary for the civil servants of Saba. Zagers said that he received the notification from the CFT (Financial Supervision Committee) and that State Secretary Ms. Ank Bijleveld had signed the agreement releasing the funds for the years 2003 until 2005. Zagers also said that with special permission from the CFT the payment of the portion for 2008 can also be made available to the civil servants shortly.
On Wednesday, October 7th, Zagers requested an extraordinary Central Committee meeting to discuss the new developments, with special emphasis to the issue of payment for 2008. The Executive Council will send a letter to the CFT requesting approval of this payment before the actual budget amendment would be made. Zagers told GIS, “Before such a move was made, I needed to first discuss it with my colleagues in the Central Committee”.
In 2001 the Executive Council of Saba made a decision to start the process of giving periodic increases to the civil servants. During that time, the Council faced major liquidity problems and were unable to implement said decision. Last year, this old decision was brought to the attention of this Executive Council. Zagers stated that he immediately started the process by obtaining the necessary legal advice and the actual calculations, which proved by be complex and time consuming.
In November last year it was decided that the disbursement of the retroactive payments would be made in early December. Payroll was made and the budget amendments were prepared. The budget amendment was sent to the CFT for approval but based on advice from BZK these payments were to be included into the debt relief for the Netherlands Antilles. Consequently, the amendment was not approved meaning the payment was put on hold. Being that the payroll had already been calculated this meant that the gross amounts appeared on the civil servant payslips. Because of this setback much undue stress and unrest came over the civil servant apparatus.
“During the past nine months a lot of work has been dedicated to resolving this issue. There were numerous procedures that needed to be addressed and put in order to get as far as we are today”, stated Zagers.
An independent accountant, Ernst and Young, was hired to verify the calculations and also evaluate the legality of the process. During their verifications an oversight made during the initial calculation was discovered. Originally the gross amount for the retroactive salaries was over Naf 700,000. Once these calculations were revised the new gross amount was over 1.2 million guilders. This means that most civil servants will receive a higher payment than what was originally expected.
Payment for the years 2006-2007 are still pending, but should become available before the end of the year. Approval for the payment has already been made but the disbursement of the funds is awaiting budget amendments in Holland. The total gross amount which will remain outstanding is Naf. 570,000.
“I fully understand the frustration that the civil servant apparatus with the delay in these payments. However, the proper procedures needed to be followed before approval could be given to the Executive Council. I’d like to remind the community that we are under financial supervision and because of this, things do not exactly go as quickly as we’ve grown accustom to. The delivery of this payment is not affiliated with any type of political strategy as rumours have suggested in regards to the upcoming Central Election”, stated Commissioner Zagers.
On Wednesday Zagers received a positive update from the CFT and immediately requested the Central Committee meeting to discuss the new development. On Thursday, Zagers got a “green light” from the CFT and immediately communicated this decision to the Finance Department so that they can start preparing new payroll calculations.
“I fully acknowledge that there are many instigators trying to turn the civil servant apparatus against this Administration because this payment was delayed. However, the fact remains that this has been a major priority for the Executive Council since last year when the 2001 Decision was brought to our attention. The rights of civil servants have always been a priority for this Administration.”
In the previous two years, all outstanding cost of living adjustments were paid including the recent ones. Vacation allowance is now being paid on-time and most importantly a decision made in 2001 was resurrected and put on a high-priority to be solved. Although the back payment was delayed, all civil servants were placed in their correct scales as of January 1st, 2009 and without any kind of job-performance evaluations.
“The persons whom have tried tirelessly to instil a lack of faith in this administration amongst the civil servants have failed to understand the process and what the Executive Council has been able to accomplish for the civil servants for the past two years”, stated Zagers
In closing, Zagers went on to say that civil servants can expect payment to be made before the end of October. The total gross amount which will be paid for the years 2003-2005 & 2008 is NAF. 706,140. The remainder for 2006 and 2007 will hopefully be forthcoming before the end of the year. Commissioner Zagers stated, “On behalf of the Executive Council, we would like to graciously thank all parties involved, namely, the Finance Department, Personnel Department, CFT, Ernst & Young, and the Dutch Government.”
SOURCE: Saba Government Information Services
June 23, 2009 (SGIS) – The Bottom, Saba:
On Tuesday, Mr. Ruud Koopman and Jan Vos from the Bestuursacademie Nederland met with Commissioner Zagers to discuss the expansion of their company to the Antilles. Bestuursacademie is known for their quality instruction and training in Government management, human resources, finance, immigration, and security programs as it directly relates to the Government apparatus. Their company also plans to help negotiate and acquire personnel fitting the needs of local Governments. Koopman and Vos explained the plans of their company to bring their business operation closer to their Antillean Government clients.
“We are building a Foundation of the Bestuursacademie in the Antilles that will develop local programs catered towards Government functions”, stated Directeur Ruud Koopman. Being locally based, the company can then intimately develop their programs to the needs of each Island Government. Since Saba is going through constitutional changes, this local service will prove to be beneficial in the months and years to come.
What is most important about this kind of training is the collaboration and customized programs that can exist between Governments; such as that of the BES. Bestuursacademie will develop a virtual academie online that will facilitate forums, collaboration, information sharing, and informal lessons amongst their Government clientele. Hands-on training will be provided on almost any island since the company plans to make use of local training facilities. These trainings will call upon diverse groups of Island Civil servants to meet up and be trained together, as well as give them an opportunity to share with their likeminded peers.
Each Island will put a Advisory Board in place, which will oversee what is needed in terms of lessons, training, and collaboration to suite their unique situations. Bestuursacademie will then follow-up with these Advisory Boards and develop a collaborative hands-on lesson plan and course trainings to suit their clients’ needs. Where it can, Bestuursacademie will rely on local subject matter experts to become teachers and make use of local facilities – therefore also strengthening the local economies of each Island. Furthermore, the quality of teaching will be monitored on an ongoing basis at each facility.
This Foundation which will be developed by Bestuursacademie will take the profits made and reinvest it back into the program thus becoming a revolving fund. It is because of this type of organization structure that Bestuursacademie claims that they will be cheaper than other educational solutions; in particular having trainers fly to the Antilles from Holland.
Commissioner Zagers followed up with GIS and stated that this service should prove, “Highly beneficial to a functioning Government apparatus within the Antilles”. Zagers went on to say that, “Government is very interested in providing ongoing training of its staff, because education is something that must be improved across the board”.
This initiative should start off in September after the advisory boards are chosen and the initial programs will become available.
Source: Saba Government Information Services – gis@sabagov.com
Photo caption: Commissioner Bruce Zagers, Account Manager Jan Vos, Directeur Ruud Koopman
April 9, 2009 (SGIS) – The Bottom, Saba:
Commissioner of Finance, Bruce Zagers announced today that the cost of living adjustments for 2006 & 2008 will be paid out Thursday by the Island Government of Saba to all of its civil servants. 2007 cost of living has already been paid out last year. The reason why 2006 is being paid out now, is because previously there was a misconception about which table was being used for that year, and it was recently concluded that indeed a cost of living adjustment was necessary for the year of 2006.
The statistics used to make these calculations come from the Central Bureau of Statistics.
As for the highly anticipated retroactive payments coming from the periodic increases the Executive Council would again like to ask all parties involved to be patient. The Council is still waiting for the completion of the financial audit which has been started by the accounting firm Ernst & Young. Upon the completion of the audit, the report will be forwarded to the CFT as well other relevant Dutch parties. As soon as this money becomes available, this much deserved retroactive payment will be dispersed.
Source: Saba Government Information Services – gis@sabagov.com
The below documents have been posted for public view.
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For the last two years, the BES islands together witht he Dutch Ministery of Finance have been workign on the future tax structure. These ongoing negotiations have been held on various islands and during the BES weeks, in the Netherlands. The overall goal is to provide revenue for the Islands without increasing the tax burden for the residents. Both Holland and the BES islands realize that the people can not be strained in order to increase revenue. One of the main goals agreed upon with State Secretary, de Jager is to decrease direct taxes and increase indirect taxes. This basically means, that the tax burden will be shared among all persons on the Island – not only the local citizens. For more information please refer to this site and read the translated document.
DOWNLOAD – Bes-fiscal-dlst2009