Prime Minister and Minister of Finance, Dr. the Right Honourable Keith Mitchell confirmed Tuesday that the value of Grenada’s contribution to regional airline, LIAT has not yet been decided.
At Tuesday’s Post Cabinet Press Briefing, Dr. Mitchell confirmed also that Government has received from LIAT an analysis of what Grenada’s contribution should be.
He said, “While we agreed to pay some cash, I cannot say at this point in time that the number they have presented, US $487 thousand, is what Grenada would give.
We are doing an analysis before we make the actual payment which will be before the end of the month.
We will pay, but I cannot tell you right now what the specific amount will be.”
CARICOM leaders were advised at their recent meeting in St. Kitts and Nevis, LIAT can go down, based on its present situation.
Dr. Mitchell said, “If LIAT goes down, it is going to take some time for a new airline to emerge.
It will damage our economy, our country and create tremendous hardship for our people.
So it is not in our interest to let it go down and given that we have seen a trend of change in recent months, we have agreed that we will contribute towards the cash injection that the company needs.”
Dr. Mitchell gave assurances that Grenada’s actual contribution will be made public when it is finalised.
“It is the public’s money, anything we do, we will have to inform the public and give the rationale for it.”
The Prime Minister also noted that a review of the current tax structure must be part of the overall restructuring of LIAT’s operations.
He said, “Most of the cost of LIAT’s tickets is based on taxes imposed by governments including Grenada. We must reduce the taxes.
It is not fair to expect Grenada or any other country to subsidise the cost of flights when it includes massive taxes imposed by another country. I have no difficulty subsidizing, but it would not be under the present tax structure.”
According to the Prime Minister, a committee has already been established to review the taxes.
