PRIME MINISTER PIERRE AIMS TO ESTABLISH A FINANCIAL RESERVE GEARED TOWARD CLIMATE INVESTMENTS.

In a highly anticipated debate on Tuesday March 11, Prime Minister Honourable Phillip J Pierre, presented the Sovereign Wealth Fund Bill. The incentive is aimed at putting aside reserves for the country to cushion against disasters or other shocks.

The bill was a moment of pride for the Prime Minister, who said that Saint Lucia will now join more than 150 countries who have established sovereign wealth funds.

Describing the bill as both historic and significant, the Prime Minister announced the specific purpose of the fund.

“The Sovereign Wealth Fund is a public fund. The objective of the fund will be to support investments in climate adaptation and mitigation, in addition to sustainable economic development,” Prime Minister Pierre said.

In a resounding show of support, government parliamentarians praised the Prime Minister for his foresight.  One member who was instrumental in the process of developing the Fund, is the Minister in the Ministry of Finance, Economic Development and Youth Economy, Hon. Wayne Girard. He spoke of the benefit of the fund to Saint Lucia, as a vulnerable island susceptible to natural disasters.

“I represent a coastal community and I take those issues seriously. Given the expenditure estimates and our recent experiences with COVID-19, given the threats to present and future generations, we must create a vehicle that allows Saint Lucia to meet those expenditures in a novel way. This fund is such a vehicle,” he said.

Parliamentary Representative for Soufriere, Hon. Emma Hippolyte, who witnessed first-hand the damage caused by Hurricane Beryl, said the fund is vital. Equally important she pointed out, was the potential of the fund to re-introduce a culture of savings to the country.

“This piece of legislation before us is one where we're signaling to our young people that we must save for a rainy day. This is what our grandparents and seniors in our communities have done for ages, and this is what this government is doing today. When we look at what is happening in the world around us, we realize that we cannot rely on external parties. The time for us to make provision for a rainy day is now,” Minister Hippolyte said.

The Sovereign Wealth Fund was first proposed in 2017 by the former administration led by Prime Minister Allen Chastanet. However at Tuesday’s sitting, Mr. Chastanet opposed the creation of the fund.
The bill will move to the Senate for debate,  before final approval.