{"id":3839,"date":"2017-07-05T16:33:09","date_gmt":"2017-07-05T20:33:09","guid":{"rendered":"http:\/\/antiguanewsroom.com\/?p=3839"},"modified":"2017-07-23T17:34:46","modified_gmt":"2017-07-23T17:34:46","slug":"3839-2","status":"publish","type":"post","link":"https:\/\/antiguanewsroom.com\/3839-2\/","title":{"rendered":"St Vincent PM disagrees with CARICOM Chairman on LIAT"},"content":{"rendered":"
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St Vincent and the Grenadines Prime Minister Dr Ralph Gonsalves Wednesday publicly disagreed with his Grenadian counterpart Dr Keith Mitchell on the financial problems facing the regional airline, LIAT and again appealed to regional governments to invest in the Antigua-based company.<\/p>

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But Gonsalves, who is also the chairman of the shareholder governments, told the Caribbean Media Corporation (CMC) that he was disappointed in Mitchell\u2019s statement.<\/p>\n

\u201cI think Prime Minister Mitchell\u2019s speech last night was unfortunate,\u201d he said, adding \u201cof course we disagree on LIAT, but to say that the decisions which are made in relation to LIAT at the board level are political, he just doesn\u2019t get.\u201d<\/p>

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Speaking during the ceremonial opening of the 38th<\/sup>\u00a0Summit of Caribbean Community (CARICOM) leaders here on Tuesday night, Mitchell, the incoming CARICOM Chairman, said that transportation remains the lifeblood of the regional integration process.<\/p>

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But he said that weak domestic and intra-regional air travel, added to low service competition and high travel costs, all culminate in the reality that Caribbean countries connect more easily to destinations outside of the region than to destinations within member states.<\/p>\n

He said it would represent a significant installment to the \u201cregional integration account\u201d if regional leaders would collectively agree to reduce airline ticket taxes, as well as other fees which attach to the cost of intra-regional air travel.<\/p>

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\u201cFurther, I have long held the belief that political presence on the board of airlines, such as LIAT, is not helpful to its proper management and efficiency.<\/p>\n

\u201cLIAT\u2019s sustainability would have benefited if it was run more as a private sector company. Governments could then subsidise flights to given destinations or routes that are in the best interest of their respective countries.\u201d<\/p>

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LIAT is owned by the governments of Antigua and Barbuda, Barbados, Dominica and St. Vincent and the Grenadines, and Mitchell told the ceremony \u201chow could LIAT thrive when, for example, a few months ago, literally overnight, LIAT cancelled one of its most lucrative routes to and from Grenada, without any consultation with the citizens or leadership of Grenada?<\/p>

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\u201cAnd it was all based on politics. Colleagues, we have to do better as a region,\u201d he insisted.<\/p>\n

Gonsalves told CMC that the LIAT board was headed by a distinguished Caribbean national, Dr. Jean Holder of Barbados asking \u201canybody thinks of Jean as being some kind of political person?<\/p>\n

He said another board member, Isaac Solomon, is a banker who heads RBTT in the sub-region, saying \u201cthis is a distinguished professional\u201d and brushed aside the suggestions that they would be party to any political decision to undermine the airline.<\/p>\n

\u201cIt is sophistry for my friend Keith to say that if it is owned by the private sector that he will put money in. What is the difference between the private sector and the public sector? We have asked for other governments to come aboard LIAT, it is one thing to say on the side-lines and criticize it, it is another to put your money where your mouth is\u201d.<\/p>\n

Gonsalves said that in 2001, LIAT put out a 40 million rights issue to get capital and only his government that put up EC$2.9 million, no private sector made any investment.<\/p>\n

\u201cAt that time, a lot of them were dancing with (Allen) Stanford (the disgraced US billionaire who established a regional airline) and I held the position we have to invest in LIAT. I went to the parliament of my country and say we are investing in an airline for all practical purposes insolvent.<\/p>\n

\u201cBut if LIAT did not exist we would have had to invent it,\u201d he told CMC, adding \u201cwe have done tremendous reforms with LIAT\u201d.<\/p>\n

He said St. Vincent and the Grenadines receives 42 flights a week from LIAT, while Grenada enjoys at least 39 \u201cand we put a lot of money in it.<\/p>\n

\u201cSo, I don\u2019t agree with my friend Keith in his critique of LIAT and I have to say he has put the issue in the public and I have to respond. He is my friend and I hope this matter is resolved.<\/p>\n

\u201cIf you attack LIAT unjustifiably, I will stand up and defend LIAT. LIAT has a lot of flaws, a lot of limitations, but I would like to invite him while I am on Grenadian soil to put some money in LIAT or either become an equity partner, or if you want additional routes negotiate it with LIAT and say this is the market support for additional routes rather than this kind of unfounded critique of LIAT.<\/p>\n

\u201cHe knows my position on this and he will not be surprised at my stance on this,\u201d Gonsalves told CMC.<\/p>\n

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St Vincent and the Grenadines Prime Minister Dr Ralph Gonsalves Wednesday publicly disagreed with his Grenadian counterpart Dr Keith Mitchell on the financial problems facing the regional airline, LIAT and again appealed to regional governments to invest in the Antigua-based company. But Gonsalves, who is also the chairman of the shareholder governments, told the Caribbean […]<\/p>\n","protected":false},"author":3,"featured_media":3840,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,7],"tags":[],"class_list":["post-3839","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-regional"],"yoast_head":"\nSt Vincent PM disagrees with CARICOM Chairman on LIAT - Antigua News Room<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/antiguanewsroom.com\/3839-2\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"St Vincent PM disagrees with CARICOM Chairman on LIAT\" \/>\n<meta property=\"og:description\" content=\"St Vincent and the Grenadines Prime Minister Dr Ralph Gonsalves Wednesday publicly disagreed with his Grenadian counterpart Dr Keith Mitchell on the financial problems facing the regional airline, LIAT and again appealed to regional governments to invest in the Antigua-based company. 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