Is Gonsalves wasting SVG taxpayers’ money on LIAT?

11.FEB.11

Editor: LIAT has announced a loss of $15 million for 2010 and predicts a loss for 2011. Why are people not surprised?{{more}}

At a meeting on 2nd February, 2011, the prime ministers of Antigua, Barbados and SVG said 46,597 departures in 2010, as opposed to 49,127 departures in 2009 is the cause for LIAT’s loss in 2010. This statement is foolish and illustrates a lack of financial intelligence by LIAT’s shareholder government.

SVG Green Party says that while LIAT is being propped up by these governments, it will never be properly profitable. The problem is that no matter how badly the company is run, it will always be bailed out. This causes inefficiencies, which inevitably lead to LIAT making a loss.

SVG Green Party believes that it is unacceptable for Gonsalves to waste SVG taxpayers’ money and continue to prop up LIAT. It’s like throwing money down a hole and there seems to be no end in sight to the taxes SVG’s people must pay.

Most Caribbean countries have realised this and have stopped funding LIAT. Sadly, in SVG, there seems to be no financial intelligence at the top. Our people must suffer unnecessary tax to prop up LIAT.

SVG Green Party believes that the propping up of LIAT should stop. Only then will LIAT be able to deduce its operational weaknesses, find its true break-even point, and be profitable.

Ivan O’Neal BSc(Hons), MSc, MBA
Leader and Co-founder of SVG Green Party