“And if you are engaging and abusing it, the Trustee is best placed, because they have to monitor everything.”

Bota McNamara, Legal Consultant for the Insolvency Legislation, explained the role and authority of the Trustee and the Insolvency Supervisor under the new legislation spearheaded by the National Competitiveness and Productivity Council (NCPC). In recent weeks, the NCPC has held several stakeholder consultations with the legal fraternity, insurance, and financial sectors, and the business community to update them and solicit feedback on the imminent enactment of the Insolvency Bill.

“In terms of powers, as I said, the Trustee be it Government or otherwise has a lot of powers built in to investigate, to engage in collection of assets, distribution of assets, and ensure that the system plays fair for both sides creditor and debtor.  The same with the Insolvency Supervisor, because they will have at their disposal a lot of tools to police Trustees to ensure that they are doing their job correctly.  And when they are action in a quasi-judicial manner they will also be enforcing the law to make sure those engaging in it can benefit lawfully from whatever rights they seek to enforce.”  

Nicolas Barnard, Chairman of the NCPC, stated that the Office of Insolvency will serve as an arbiter, providing assistance to businesses and individuals negotiating proposals with lending institutions.

“With that abating that can help them, that can mediate, I think it’s a fantastic idea. I think it will give businesses a lot of confidence. Going through difficult times they know there, is a door that they can knock on. Again I also think that the banks will actually appreciate  that mediating agency and it will give them security too.”

Brian Louisy, Executive Director of the Saint Lucia Chamber of Commerce, Industry, and Agriculture, acknowledged the Chamber’s support and active participation in discussions and consultations over the years, contributing to the formulation of the Insolvency legislation from its initial concept to its current stage.

“So, it gives people an opportunity to look at their financial situation, look at their debt situation, and make arrangements other than just wrapping up their businesses. So, it gives options. It gives the businesspersons a chance to continue their operations. It gives an individual a chance to maximize their returns and their options. It also gives the creditor a greater chance and a greater structure in recouping some of the outstanding resources that they have put forward.”

He noted that the Chamber has long advocated for strengthening Saint Lucia’s financial infrastructure and landscape to offer more options for both the business community and individuals.

“The Chamber was one of those over 15 years ago spoke about the issue of access to credit and access to credit has two sides it has the supply side but also has the demand side. How do businesses and people organize themselves and organize their arrangements in a credible way that makes them more attractive and makes it easier for them to access whatever credit is available?”

The NCPC also received high commendation for its steadfast commitment to advancing the Insolvency legislation.

“Well I am extremely proud to be the Chairman of the NCPC, essentially I have looked at the very hard work undertaken by the staff of the NCPC. I think it’s hidden in the shadows to some extent and it’s been marvelous to look and see what work and what they have achieved. To hear the people on the ground articulate what they have achieved it’s fantastic.” Nicolas Barnard

“The NCPC has not taken this as a tick-in-the-box process where they say we did that, they have done extensive dialogue, substantive negotiation. It has been sometimes frustrating but they have stayed the course and so we are happy to see this legislation come to fruition.”  Brian Louisy

The NCPC has launched a public education campaign to inform stakeholders and the wider public about the benefits and provisions of the Insolvency legislation.   

The Department of Finance, through the Accountant General’s Department, has introduced a new and innovative Financial Management System to replace the 25-year-old Smartstream system.

Infor Cloudsuite, officially launched on June 5, 2024, is a modern, technologically advanced, cloud-based financial management system designed to supersede Smartstream. The new system will streamline financial processes, ensuring transparency, accountability, and regulatory compliance to optimize resource allocation within government agencies.

Swithin Donelly, Deputy Budget Director said, “Cloudsuite ACM will revolutionize the way we handle our human resources. For the first time in history, the Ministry of Public Service will digitize all of its work processes. This platform will streamline recruitment, onboarding, performance management, and employee development. It will foster a more engaged and productive workforce.”    

During his remarks, Accountant General Matthew Branford outlined the Treasury’s role as the custodian of all government financial resources, emphasizing its fiduciary responsibility to protect and safeguard public funds, maintain public trust, and uphold integrity in the public financial management process. 

“It has become necessary to migrate to a more sophisticated financial management system that compliments today’s dynamic business landscape. Ladies and gentlemen, I am delighted to introduce to you Cloudsuite, Financials and Supplies Management, and Human Capital Management.”

He added that the Treasury was able to plan, develop, and transition to this technologically advanced system with financial and technical assistance from The Caribbean Regional Technical Assistance Centre (CARTAC) and Smart Solutions International.

“The new system represents a significant leap forward in efficiency, productivity, and collaboration in a world where organisations are constantly challenged by business complexity and the need for fast past adoption. We believe that Infor Cloudsuite offers a comprehensive solution to help navigate these challenges and unlock the full potential of our department.”

Paul Warren, representing Smart Solutions International, presented the project overview. He highlighted numerous advantages of the new system, including Human Resource Management, Contract Management, and Procurement Management, along with other functionalities not available in Smartstream.

“Half of what we’re going to be able to do on Cloudsuite is even possible today on Smartstream. It’s not just a question of the technology but the suite has been enriched in terms of additional functionality as well as additional modules. So we’re able not just to modernize what you do today we’re actually able to address things that are gaps that are maybe done manually today, maybe done through third party systems, homegrown systems, reporting in terms of data warehouses and other things that are a challenge to maintain.”

Francis Fontenelle, Permanent Secretary in the Department of Finance, commended all stakeholders for their efforts in reaching this project milestone. He emphasized that financial management is the backbone of any successful organization, particularly in government.

“This new system will empower us to elevate our financial management practices to new heights. Practically speaking this system will allow a government to foster compliance with our regulatory requirements given that we have recently enacted the Public Procurement Act and the Public Finance Management Act. As we journey with this new system we must be bold to sufficiently explore and endeavour to maximize the benefits afforded by the system and to obtain the comfort that the system will assist us as we navigate through this digital and technological revolution.”

The launch brought together stakeholders from both the public and private sectors, who received a brief demonstration of the Infor Cloudsuite system. Smart Solutions International will support the system deployment through a multi-year agreement.

“That’s why when we measure productivity we have to adjust for inflation. We have to discount the effect of inflation.”

Trade Advisor in the Ministry of Commerce, Dr. Thomas Samuel recently addressed the impact of inflation on national productivity and overall GDP. Saint Lucia saw a significant reduction in its inflation rate in 2023, with the rate dropping to 4.1% from 6.4% in 2022. This decrease was largely attributed to favorable global supply developments and lower commodity prices, which helped ease domestic inflationary pressures.

“Inflation is a rate. It’s not just an absolute increase. It’s a rate of change. So when we say inflation is trending downwards what we mean is that the rate of increase is slowing down which is really called disinflation.”

The 2023 Economic and Social Review highlights notable reductions in the Housing, Water, Electricity, Gas, and Other Fuels sectors, which experienced a 2.9% decline. However, Dr. Samuel cautioned that consumers should not expect an immediate reduction in the cost of goods and services.

“Generally in most economies, prices are sticky downwards. In other words, there is a sought of reluctance on the part of those who sell goods to voluntarily bring prices down unless it affects them. But, the markets usually have a correction and so they are either going to be priced out of the market and will see it in their interest to bring it down a bit. And, because more goods come onto the market there is more supply and supply catches up and corrects that imbalance that I eluded to earlier.”

The government’s efforts to stabilize the economy and support consumers through strategic policy measures have played a crucial role in managing inflation and fostering economic stability. Dr. Thecla Fitz-Lewis, President of the National Consumer Association of Saint Lucia, stated that inflation remains a real concern for all consumers. While acknowledging the government’s contributions to cushioning the impact of inflation, she proposed several recommendations to educate consumers on budgeting and financial planning, smart or comparative shopping, energy and resource conservation strategies. 

“Also on debt management. We want to advise customers to avoid high-interest loans, like the loan sharks, and to pay down existing debt to reduce their financial strain. So, it’s a behaviour that most must adopt. It’s not just the government to give us subsidies and tax breaks but it’s for consumers to be educated enough to understand how to manage their spending and their debt.”

Regarding recommendations to the government and policymakers to address the impact of inflation, Dr. Lewis stated that the association has suggested measures such as targeted subsidies and support programs, tax relief initiatives, and the continued promotion and consumption of local products. The Government of Saint Lucia is currently implementing some of these recommendations.