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Three national ordinances must be adopted by Parliament for further liquidity support

Main news | By Correspondent June 16, 2021

WILLEMSTAD - In a letter dated June 10, Eugene Rhuggenaath, then still in the capacity of caretaker prime minister, asked President of Parliament Charetti America-Francisca to deal with the three National Ordinances as soon as possible, so that they can be adopted so that Curaçao can meet the conditions of the Netherlands for further liquidity support.

This concerns the national ordinances that relate to the reduction of 25 percent in the total package of employment conditions for Members of Parliament and ministers as of 1 July 2020 and the national ordinance that concerns the maximization of the employment conditions of top officials within the (semi-)public sector and the cut on the total benefits package with 12.5 percent of staff and senior officials of the government-affiliated entities.

The adoption of these laws is a condition of the Netherlands for Curaçao to be eligible for further tranches of liquidity support. Also for the third quarter of this year, the government of Curaçao has submitted a request to the Kingdom Council of Ministers for liquidity support.

The first two national ordinances were submitted to Parliament on February 19 of this year, while the maximization of the employment conditions of top officials was presented to Parliament on February 16, 2021.

On 8 June, Undersecretary Raymond Knops of the Interior and Kingdom Relations once again stated in written answers to questions from the Standing Committee on Kingdom Relations of the Dutch Parliament in the Annual Report on Kingdom Relations 2020 that the 25 percent cut on the employment conditions of ministers and members of parliament in Curaçao has been implemented, but the legislation drawn up for this purpose that must provide the legal basis has not yet been approved by parliament. The legislation providing for the 12.5 percent cut on the employment conditions of government-affiliated entities also has yet to be approved by parliament.

“Since the aforementioned legislation should have been approved for some time, the Kingdom Council of Ministers decided on March 26 that Curaçao will only be eligible for liquidity support again once the legislation has been enacted and entered into force,” said Rhuggenaath.

Rhuggenaath further indicates that the cut on the employment conditions of ministers and members of parliament has been implemented on the actual employment conditions that applied before the reduction and not based on a higher pay scale. At least until June 30, 2023, the employment conditions will remain frozen, Rhuggenaath emphasizes in his letter.

“On the basis of an evaluation of the government finances, including the need for liquidity support or a deviation from the standards of the Financial Supervision Act, it can then be decided whether or not to adjust the cut and adjust it to the highest official pay scale.”

Questions were asked about the national ordinance regarding the maximization of the employment conditions of top officials within the (semi-)public sector and the reduction of the total package of employment conditions by 12.5 percent for staff and top officials of government-affiliated entities by the central committee of Parliament. As soon as these questions have been presented to the government by Parliament, it will be possible to indicate when the written answers can be received.

"My request to you is to promote the hearing of three National Ordinances as soon as possible so that these can be adopted in the short term and Curaçao can meet the conditions for further liquidity support," Rhuggenaath concludes his letter to the President of Parliament.

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