THE COLLAPSE OF INDIGENOUS BANKS –BONNE TERRE BRIDGE This week we were greeted with the unfortunate news of the need for the ECCB to take control of the operations of two indigenous banks in Anguilla. I have worked and lived in Anguilla over a period of three years so I am aware of the operations of these banks and the individuals involved in its management. Anguilla is an island that has always amazed me, and there is a soft spot in me for that wonderful island of 12,000 people. Recently we were also greeted with the shocking news of the Bank of St. Lucia posting a loss of a staggering $ 122.5 million for last year. There is no other bank I know in the Eastern Caribbean that has sustained such losses. Something has gone desperately wrong, and Sir Dwight Venner in his winter years of leading this institution is now faced with his greatest challenge of saving the economies of the OECS. The Eastern Caribbean Central Bank assumed control of the Caribbean Commercial Bank and the National Bank of Anguilla in a move that is designed to ensure stability of the banking system in the Eastern Caribbean Currency Union. While I agree with Sir Dwight that the economies of the ECCU are mainly dependent on tourism and construction for their growth and that the global crisis has had an impact on both sectors, it is clear also that poor lending practice is a contributor to the demise of these banks. The levels of non-performing loans in these two banks in Anguilla had escalated to levels beyond the guidelines set by the ECCB and these banks were unable to meet their capital requirements. The ECCB has proposed a series of measures to address the grave situation in Anguilla. In the midst of this miry clay, First National in St. Lucia has done quite well, and the astute management of Mr. Glasgow and his Board may have saved the collapse of this bank during this global crisis. He is now retired, but I think St. Lucia owes him some adulation for his hard work and dedication. What lessons can be obtained from these situations for Governments of the OECS. On one day this week I spoke with three young men who were involved in the construction industry. It is clear from their faces that they are facing some tough times, and their voices spoke of desperation. All they were asking was for was a chance to earn a decent living, an opportunity to work to feed their children. It was heart breaking as there was no way I was able to assist. The construction sector has collapsed lungs in St. Lucia, and the efforts to revive this patient are not working. If you are in a famine, does it make sense to spend the little money you have to buy caviar, or if there is a drought, would you buy champagne. In the natural world your response to any situation is to move into survival mode. The human body is built to go into survival mode when under stress. So if God set up his creation on Earth to switch into survival mode to last through a crisis, why are Governments denying the laws of creation? I have a fundamental difference of opinion with the technical advice that has been given to the Minister of Infrastructure on the construction of Bridges. The Minster of Infrastructure is clear in his pronouncements that he is not an engineer and will rely and respect the views of his technical staff. I have interfaced with him personally and in my capacity as President of the Association of Professional Engineers, I hold him in high regard. I am directing my criticism to the technical reasons given for those decisions. We have seen the construction of the Bonne Terre Bridge, which is in my opinion a very poor design and the Ministry will have to go back and do additional work to protect the embankment. Why should funds be spent on building bridges to accommodate four lanes on the Gros Islet Highway at this time? Next time you are driving from Sandals to Cap Estate, imagine a proper four line highway with a median and shoulders, then take that image and superimpose it on the route. You will be amazed at the number of structures that will have to be moved along the Gros Islet. One year‘s budget is required to acquire the land for the expansion of the Gros Islet Highway. In a famine does it make sense to buy caviar?, Should we not have proceeded to construct resilient structures which would generate savings that can be diverted to other projects.? I see no technical reason for pursuing the expansion of bridges to four lanes along the Gros Islet Highway at this time or in fact any time in the future. Transportation issues are not only solved by road expansion, and when you get into the technical jargon of trip generation and modal split, you appreciate this fact more. Observe how many cars going into Castries have one or two passengers, image using 25 seaters instead of the 14 seaters along that route, then consider how many less vehicles will be on the road if concepts like car-pooling and improved transportation are in place. I maintain that a National Drainage Project is what is need at this point to stimulate the construction sector. This project involves a massive drive in construction of drains across the island, thus mobilizing trucks, equipment, labour, quarry suppliers, block plants and hardware suppliers. This infrastructure asset will pay for itself in the reduction of damage to roads and improved access to communities. The savings on proceeding with building resilient bridges that are reflective of current economic situations will fund this programme. This National Drainage Project has significant backward linkages (truckers, equipment owners, block plants, concrete plants, and hardware suppliers) that will stimulate the economy and there is little drain on foreign exchange as only the cement and reinforcement are imported. I believe we should give up the lanes to go with the drains. (Good Calypso line). John Peters
Posted on: Sat, 17 Aug 2013 06:34:36 +0000
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