Donaldson Romeo, leader of the National Progressive Movement (NPM), is calling for meaningful income tax, pension and social welfare reforms, to alleviate the financial burden on low-income earners and retirees.
Romeo, who served as Montserrat’s premier from 2014 to 2019, has formed his own party to contest the next election.
In a release to the media, Romeo said his call is “based on the alarming findings in the Office of the Deputy Governor’s (ODG’s) 2021 Salary Review, which found that the estimated cost of living in Montserrat for a single person is currently $2,485 per month. This is driven by the high costs of rent, utilities, transportation, groceries, and other essential goods.”
As a result, public servants and low-income earners are struggling, with 40% of government employees currently not earning a liveable wage of $2,485 per month that can cover basic living costs.
“This dire situation has been compounded as a result of the failure to keep salaries in line with inflation on a yearly basis, just as has been done in the UK,” the release noted. “In light of the findings of the ODG report and the clear inadequacy of the current $18,000 income tax threshold, the following common-sense measures must be urgently implemented:
1. No person earning less than $30,000 per year should be taxed, as they earn less than the minimum yearly income required to support basic living needs.
2. People earning $30,000 – $48,000 per year who have dependents and mortgages should receive tax credits and other forms of support, to increase their disposable income and ability to contend with the financial burdens of raising children.
3. The minimum pension should be set at no less than $2,485 to ensure retirees can live with dignity and meet their mortgages and other essential expenses. No pensioner should get less than the living wage established by the Office of the Deputy Governor.
4. The social welfare payments of $900 for an individual, and $1,350 for two individuals in the same household, also need to be significantly adjusted based on the current cost of living.”
Romeo said his party was “unapologetic in its position that taxing individuals who do not earn enough to meet basic needs is unjust and counterproductive. Additionally, failing to address low pensions and social welfare payments will only lead to further depopulation and decline.
“The National Progressive Movement is therefore committed to delivering these urgent reforms and working towards a more equitable and sustainable economic future for Montserrat. While some of the revenue given up by Government will be recovered through increased
economic activity, strong evidence-based negotiations with the UK will be initiated to secure greater budgetary support to address critical needs, and to grow Montserrat out of dependency.
“It should also be noted that addressing the cost-of-living crisis in Montserrat requires the UK Government to provide no more support than it delivered to its own people during the 3-year COVID crisis. Further, providing this assistance on Montserrat will cost the UK taxpayers far less than what would be required to assist Montserratians who are forced to seek greener pastures in England,” Romeo stated.
No date has been set for the national elections which are constitutionally due this year.
