Newsfrom Our Region
PM Douglasof St. Kitts and Nevis and Eastern Caribbean PMs Sign agreementwith C&W
Chairman of the Authority of the Heads ofGovernment of the Organisation of Eastern Caribbean States (OECS),Dr. the Hon. Denzil L. Douglas says Monday's signing ceremonybetween Cable & Wireless and five Eastern Caribbean Statesis of enormous significance to the sub-region.
Speaking at a Signing Ceremony at the RexGrenadian Hotel in St. Georges, the Grenada capital, in the presenceof his Prime Ministerial Colleagues from Grenada, St. Vincentand the Grenadines and the Dominica Minister of Telecommunications,the St. Kitts and Nevis Prime Minister said the agreement mustnot be underestimated in its impact on the lives of the peopleof the OECS, the economies of the Contracting States and the newpartnership between the public and the private sectors in thenew environment of telecoms reform.
Dr. Douglas recalled the warning in 1998to the OECS countries, that the global economy was rapidly changingand there was need for OECS nations to begin to prepare for suchchanges. "Though the macro-economic indicators were not unfavorable,there was still too much un-utilised and under-utilised labour.The stimuli for growth were declining. Our poverty situation wasnot being seriously improved, our primary agricultural productsof bananas and sugar were now uncompetitive with declining productivityand the loss of preferential global markets enjoyed for years."
"Our own tourism and hospitality servicessector which was once attractive and competitive, was now receivingtremendous challenge from competitors and our own internationalfinancial services sector, had begun to see the first signs ofchallenge from the developed world to ensure that the jurisdictionsof the Eastern Caribbean States were supervised and regulatedwith acceptable standards and practices," Prime MinisterDouglas noted.
He emphasised that countries were advisedalso that the informatics sector held out hope and promise inthe quest to diversify the OECS economies, but the lack of competitivewithin this sector was prohibitive and a disincentive.
The OECS Chairman said that it was againstthat background that the international and regional institutionsadvocated telecom reform for the OECS sub-region with the WorldBank teaming up with the OECS Secretariat, to set the stage forcompetitive telecoms services in a liberalised environment.
"Today therefore is a most historicalday because we believe that competitive services, though not apanacea for all our economic challenges in the sub-region, willlead to improved growth and development in the telecoms sector.It will provide investment capital and realise greater opportunitiesfor employment of our young people and stimulate economic growthfor the sub-region," said Prime Minister Douglas, statingthat he was confident that the agreement "opens up a vistaof global opportunities that will set the stage for the empowermentof our own domestic and sub-regional entrepreneurs, who can markettheir skills and showcase their capacity for enterprise and successin this new and exciting knowledge-based and technologically-drivenglobalised economy."
The OECS Chairman and St. Kitts and NevisPrime Minister said the OECS as a sub-region should be justlyproud as in three weeks time, "we shall return to historicBasseterre in St. Kitts and Nevis, to commemorate the 21st Anniversaryof the founding of the OECS with the signing of the Treaty ofBasseterre."
Prime Minister Douglas noted that 20 yearsago, "our predecessors as leaders of government pledged amongthemselves on behalf of the people of the Eastern Caribbean thatthey would foster a greater effort at economic integration andfunctional cooperation so that we would be better able to facethe challenges of an increasingly hostile global environment."
"This 21st birthday gift, therefore,is symbolic of the dismantling of the monopoly of the telecomsgiant - Cable & Wireless - a telecoms giant not only in theCaribbean region, but throughout the world and I emphasise thatthis 21st birthday gift should be enjoyed by not only this generationof Eastern Caribbean people, but by generations yet unborn,"said Prime Minister Douglas.
He used the opportunity to commend the OECSSecretariat under the leadership of then Director General, HisExcellency Mr. Swinburne Lestrade and all the players of the technical,legal and administrative teams, who worked to realize the SigningCeremony.
Dr. Douglas also paid tribute to Grenada'sPrime Minister Dr. the Hon. Keith Mitchell, "who steeredthese negotiations through very difficult times when we thoughtthat they were being railroaded." Ministers of Telecommunicationsfrom the Contracting States of Dominica, Grenada, St. Kitts andNevis, St. Lucia and St. Vincent and the Grenadines, especially,St. Lucia's, Hon. Calixte George and St. Kitts and Nevis' Hon.Cedric Liburd were also praised for their contribution.
The Agreement signed last Monday in St.George's, becomes effective June 1, 2002 and replaces the Memorandumof Understanding signed on 7th April 2001, under which Cable &Wireless agreed to surrender its exclusive telecommunication licencesin Dominica, Grenada, St. Kitts and Nevis, St. Lucia and St. Vincentand the Grenadines.
The new agreement provides for pricing ofcertain telecoms regulated andunregulated services by Cable &Wireless and sets out these pricing rules, price caps and pricecap rules in an annex which will form part of the licences thathave been granted to Cable & Wireless by the Ministers ofTelecommunications in the OECS Contracting States.
The Agreement further recognises the specificregulatory role and functions of the sub-regional and domesticregulatory bodies namely the Eastern Caribbean TelecommunicationsAuthority (ECTEL) and the National Telecommunications RegulatoryCommission (NTRC).