Prime Minister says Lockbox does not Exist

Monday, Aug 28

Q

uestions have arisen regarding the status of taxes collected by the previous Chastanet-led administration for the rehabilitation of roads. Famously called the “lockbox”, the last administration promised to deposit the $1.50 tax increase on every gallon of petrol in an account specifically designed for it.

However, upon assuming office in 2021, current Prime Minister Hon. Philip J. Pierre says he has been unable to ascertain the whereabouts of the “lockbox”, asking the former administration to provide some clarity. Former Prime Minister Allen Chastanet disclosed in a recent UWP town hall meeting that the funds from the “lockbox” were used to construct roads ahead of the 2021 general elections.

 Pierre dispels Chastanet’s claims, revealing that a “lockbox” never existed. Rather, the taxes collected from the purchase of fuel were placed in the nation’s Consolidated Fund which he surmised was not an issue. Pierre urges the Opposition to cease what he calls “misleading” the country.

 “There is no reason for the Leader of the Opposition to constantly mislead the public. There is no lockbox. The [only] lockbox that exists is for the airport. There was never a lockbox for roads. The gas tax was placed in the consolidated fund, as with all other taxes. There’s nothing wrong with that. The health and security levy is going to the consolidated fund. People say whatever they want, and it works as fact. But that’s wrong,” the Prime Minister explained. Section 77 of the Constitution of Saint Lucia states that “all revenues or other monies raised or received by Saint Lucia shall be paid into and form a Consolidated Fund.”

 “There are 6 companies, that received Direct Financing Contract, and one of these companies - Fresh Start - alone received direct awards totaling $85-million. And at the end of that period in March a total of $ 84 million was still owed. So if the money collected for the gas tax was in the lockbox, we’d easily be able to tell you how much was collected and how much was paid for roads. But no one can tell you that, because no one knows,” Pierre continued.

 The Opposition has, in recent times, called on the government to repair the roadways across the island including the Castries-Gros Islet Highway which received funding from the Kuwaiti Fund but was discontinued by the Allen Chastanet administration. At present, works continue along the Millennium Highway where the contractor, C.O. Williams, has a projected completion date within the first quarter of 2024.  The government has demanded that it be completed in 2023.