27.02.2010

We are stronger,more determined says President

 

Seychelles has survived the economic storm that swept the world and has emerged from it stronger and more determined, President James Michel said yesterday evening.

Giving his state-of-the-nation address for 2010, he said: “We have held firm against the biggest storm. We have shown the world our resilience. The people of Seychelles have come together, and the future holds the promise of a better quality of life for them.”

The President was addressing the National Assembly, and also the Seychelles nation via live radio and television broadcasts.

He said the effort to survive the global economic crisis was possible because the Seychellois people came together at a time of crisis, and by continuing in this spirit of unity the people of Seychelles “can bring about real and positive change”.

“Together, we are ready for the future. The work of our government is based on the principle that our people should always be at the centre of development,” said Mr Michel.
“It is enshrined in the principles of equality of opportunity and social justice for all. Where we find deficiencies, we fix the problem, and where things are running well, we strive to do even better.”

 

The President outlined the state of the economy, in comparison to the previous year. In February 2009 the Seychelles rupee stood at R16.77 to the US dollar, today it stands at around R11.48 to the dollar.

 

In February 2009 the country’s reserves stood at US $47 million and the debt stock represented 170% of gross domestic product (GDP). Today the country’s reserves total US $190 million and debt has been reduced to a sustainable level of 84% of GDP, he said.

Last year, economic growth was expected to be reduced by between 7% and 8%, and interest rates had risen to 29.27%. But in February 2010, foreign currency is readily available in the banks and economic growth is expected to be in the region of 4%. Interest rates are continuing to fall and some are even lower than pre-reform rates, the President stressed.

 

He said that the government is working to improve the quality of life of every Seychellois and to reduce the cost of living for every family. He also stressed the need to nurture the entrepreneurial spirit so as to make the economy even stronger.

“We must empower Seychellois to enable them to create wealth,” he said.
“To do this, we must identify and eliminate the obstacles in their way. We must free the hands of small entrepreneurs, and encourage them.”

Mr Michel also announced changes to measures in the country’s tax reforms, a reduction in the PUC electricity tariff, as well as the formation of a new Technology and Innovation Council.

He said the government will work to improve the police force and the health services, which have received criticism from the public, and efforts will be stepped up to bring government closer to the people through district consultations, as part of democratic government.

The President said the country does not lack employment opportunities, and with the creation of 3,000 new jobs in the next four years, mainly in the tourism sector, Seychellois will benefit from a better standard of living.

He noted that the country now has about 10,000 expatriate workers, mainly in the construction and tourism sectors, and he regretted that some people are “creating animosity towards the expatriates”.

“We are a country renowned for its harmony and welcome. Our way of life is one of our strong points which makes visitors return to our country,” he said.

“Seychellois have no time for xenophobia. Every fast-developing country needs expatriate workers...all these developments and all these projects are being undertaken above all for the benefit of the Seychellois.”

Mr Michel said raising the level of teaching is one of the priorities of the education system and the reforms now being carried out will put more resources at the disposal of teachers.

A new scheme of service was introduced in January aimed at encouraging more young people to enter teaching, and the University of Seychelles now offers a degree in teaching, he added.

“Reform alone in education is not enough. What is important, and where we should concentrate our efforts, is the experience of each child and each worker in school,” he said.

 

To improve this experience, a new school model will be put in place to ease collaboration between the education ministry, the school, the school council and the community.

 

The President noted that this year Seychelles has its own university – a major achievement. And he said a Young Leaders Programme for the military and the police will be launched soon, after the country celebrated the success of the first group to complete the Young Leaders Programme. 

“Opportunities for young people abound,” he said.
Mr Michel said the government will deliver the 5,000 houses it had promised to build by 2011, but there will be a delay because of unforeseen circumstances.

“The world economic crisis, reforms that we had to undertake, and the hike in the price of construction materials forced us to readjust our plans in certain cases. But our commitment remains firm.”
The next Indian Ocean Island Games will be hosted by Seychelles in 2011, and the President said that the government will support the preparation and organisation of the event, adding a note of encouragement to the athletes:

“Our athletes have started preparations for the event, and already the sense of patriotism makes us aware that we are one nation, one people and one Seychelles.

“I wish all our athletes good preparation and I am sure they will raise our flag high.”

In his address, President Michel also announced several major changes aimed at cutting the cost of living, boosting business and enterprise, improving living conditions and reinforcing law and order (see accompanying text).

Major changes to benefit the people

 

During his 2010 state-of-the-nation address delivered before the National Assembly yesterday, President James Michel announced the following major changes aimed at cutting the cost of living, boosting business and enterprise, improving living conditions and reinforcing law and order:

• The Public Utilities Corporation will cut electricity tariffs, following its increase of 27% last month. It will reduce the level of the increase to 5% for domestic consumers, as well as for businesses, in respect to the first 1,000 units. This is made possible by the donation of two electricity generators, worth around US $15m, by the government of Abu Dhabi to the people of Seychelles. The new tariff will be effective from March 1.

• Renewable energy promotion will be boosted through a wind energy project, with eight turbines, financed by the government of Abu Dhabi and worth US $25m.

• Between 2010 and 2014, a total of 3,000 new jobs will be created, mainly in the tourism sector.

• The government has built 1,200 houses as part of the Ile Perseverance housing project, and 313 housing units will be completed by the end of 2010. The government expects to finish another 300-350 houses per year from 2011, in order to complete the 5,000 total for this project. A grant of US $30m from the government of Abu Dhabi will ensure the project will be completed.

• The President is establishing a Council for Technology and Innovation to promote creativity, research and development.

• A new school model will be put in place to ease collaboration between the Ministry of Education, schools, school councils and the community.

• The government will make more resources available to the police. There will be more foot patrols, and police officers will work to become more familiar with the communities where they work.

• The President will propose a series of laws to make the penal code more effective and give more protection to citizens. He is calling for the doubling of the sentence when a criminal repeats an offence, harsher sentences for crimes against children, and community work sentences for those who cause a public nuisance.

• The President has asked the minister responsible for agriculture to look into the unacceptable rise in the price of meat and eggs, and to take the necessary steps to ensure the continued availability of these products on the market at an affordable price.

• The Ministry of Finance will increase the threshold for business tax from R100,000 to R150,000 for sole traders and partnerships. The system of tax receipts will not be applicable for these groups, with retrospective effect from January 1, 2010.

• All businesses can seek a tax exemption on the cost of equipment and tools costing less than R100,000 in the year of purchase, instead of calculating depreciation as was the case in 2009, with effect from January 1, 2010.

• The government will not enforce the system of automatic tax deduction in the absence of receipts but will encourage businesses to continue keeping receipts and accounts in an appropriate form, so their book-keeping is in order and in accordance with regulations, with effect from January 1, 2010.

• Other than the goods and services tax, there will be no “business tax” on rental of houses, with effect from January 1.

• The government will abolish tax on dividends for all residents, with effect from January 1, 2010.
• The government will abolish tax on interest on personal savings, with effect from April 1, 2010.

 

Forrás: http://www.nation.sc/imprimer.php?art=18680