Public Entity Sint EustatiusOranjestad, Sint Eustatius

StatiasObservations, ConcernsandThe Way Forward

January 6, 2016

Table of Contents

page

Introduction3

IThree Pillars of the Evaluation Report 20154

Impact on the Population of Statia A New Government Structure Working of Enacted Laws and Regulation

IIImportant Observations With Reference to the Evaluation Report 7

IIIConsequences for the People of Statia 7

IVOther Areas of Concern Poverty Local Reality Office of the Kingdom Representative Purchasing Power and Taxes 8

VObservations: Bottlenecks and Impact on Statias Community10

VIHealthcare13

VIIStatia and Public Transportation14

VIIISocial Provisions14

IXBanking in Statia15

XEducation on Statia17

XIJustice in Statia18

XIIDemocratic Deficit19

XIIIThe Way Forward19

References21

Introduction

The Evaluation 2015 is the execution of an agreement derived from the Mini Conference of November 11, 2006. The evaluation is carried out with two objectives in mind, namely:a. To establish if the implementation of the points of that aforementioned declaration reached the set objectives, andb. To assess how the people in the Caribbean part of the Kingdom experienced this new status of Public Entity so far.

Shortly after 10-10-10, it became apparent that many of the agreements reached during these mini conferences were not fullymet. One area that created much expectation among the population was the social benefits such as the level of the Old Age Pension, Child allowance, rent subsidies and the anticipated increase of the spending power of the population.

The findings of the evaluation are received and they confirm what Sint Eustatius (herein after Statia) has pointed out as shortcomings all along for the past fiveyears. This document contains the comments of Public Entity Sint Eustatius on the evaluation report. It is prudent for Statia to present her observations and concerns on the findings of the Evaluation 2015 report and also indicate how the people of Statia see the way forward.

The evaluation assignment states that the evaluation's purpose is to collect as much factual information as possible about the manner in which the new administrative position of Bonaire, Sint Eustatius and Saba has been implemented. It is also important to emphasize that in accordance with the assignment, the evaluation report will not contain recommendations, but rather serve as a basis for the balanced decision-making process regarding the implementation of the agreements, and any changes that must take place after the evaluation.

Therefore, it is essential that the Executive Council, together with the people of Statia, make an inventory of observations, concerns with regards to the findings, and indicate unequivocally how Statia envisions the way forward.This inventory contains the main areas of concern and is therefore not comprehensive.

The Executive Council wishes to thank organizations, social partners, political parties and Statias community at large for their cooperation, input and sharing their personal opinions and experiences that have resulted in this extensive evaluation.

Executive Council, Public Entity of Sint EustatiusJanuary 2016

I.The three pillars of the Evaluation Report 2015

The impact on the population of StatiaThe conclusion of the committee that the island residents had unfounded high expectations is not shared by the residents of Statia.These committee members were not part of the Dutch representatives under Minister Nicolai and State Secretary Bijleveldt during the preparation towards 10-10-10,therefore they are not aware of the expectations that were created back then. Moving into the transition many promises that were made did not materialize for the residents.

Furthermore, Statiabelieves that when the opinions and views of the committee members are postulated, they must be tactical in their choice of not using Dutch bench marks to establish that the expectation of our people were too high. We must also be mindful in our choice of bench marks to substantiate conclusions.The reality of 2016 is that many goals that were desired by the people of Statia and Holland such as to reduce poverty, to stimulatesteady economic development and growth of the island, were not achieved.

The findings of the conducted surveys should not be shocking when viewing the result of the public opinion on developments since the transition, as well as the expectations for the next five years. The negative sentimentsrelating to the transition grew on a yearly basis and were causes for much mistrust and uncertainties in the relationship with the Dutch government. One thing can unequivocally be concluded is that Holland failed to comprehend the fragilesocio-economic and political situation from before 10-10-10 to public entity.The socio-economic standstill does not boost the progress in the other areas. The statement by the evaluation committee, If poverty is reduced, the social problems will also ease, can only be understood in the context that poverty reduction is a result of improved socio-economic development supported by the needed infrastructural improvements.

It will take more than poverty reduction to increase the confidence of citizens, professionals and administrators on the islands.There must be concrete investmentsand improvements made in infrastructure, economic possibilities, government, tax system, social welfare, etc.Statia applauds the establishing of the Multi-Annual-Program (MAP) 2014-2016 for the Caribbean part of The Netherlandsin which the local administration and The Hague will work together to combat poverty, deal with the deprivation, and improve the economic situation while respecting childrens rights. Statia is confident that this MAP, which wasto besigned and implemented since June 2015, will be signed early in 2016. Statia is confidentthat already in the second quarter, the execution of this Multi-Annual-Program will yield noticeable and positive results.

Action point 1.1:Statia expects Holland to jointly work with the island in creating structures to combat poverty, eradicate deprivation and lay down the groundwork for the path towards financial sustainability in Statia. Therefore, one aspect of said responsibility is the signing and implementation of the MAP no later than the first quarter of 2016.

A New Government StructureThe new government structureabruptly introduced since October 2010 has yielded a newset of interesting and unexpected challenges for the island government of Statia.The evaluation 2015 report shows that with the new administrative structure, the change from Monismto Dualism, has not eliminated most of the administrative challenges which existed prior to October 10, 2010. The basis for this change was to establish a clear distinction between the legislative and executive branch. One should keep in mind that besides the intended objectives as the result of the change of the governmental structure, new challenges have arisen. One of such challenges is the new relationship between the legislative and executive branches. Often enough, the legislative branch bypasses her authority, thinking that it is still part of the executive branchand vice-versa. A mind change is necessary and that will take time and the understanding that this change is important and crucial to the overall governing of the island.

One can confidently establish that in practice the vertical supervision which, with the introduction of the Kingdom Representative, is considerably stricter on paper than in Holland and, therefore, failed to compensate for the weakness in the horizontal chain. The assessment that the horizontal supervision chain is still weak on the islands despite the introduction of political dualism is puzzling. It is doubtful that the change from Monism to Dualism was meant to strengthen the horizontal supervision. The working of Dualism is that it creates a separation of powers between the Legislative and the Executive branches. This means that commissioners are not part of the legislative branch and, therefore, they do not have any voting rights in dealing with legislation, nor can they insert any direct influence in dealing with authority of checks and balances of the Island council.

Whether the suggestions of alleged irregularities arose in the interviews have actually been perpetrated by the administrators or not, has not been examined within this evaluation. The danger of making such a statement in an evaluation without the necessary documented substantiations, unjustifiably shine a negative light on the administration of the island.

Therefore, we refuse to accept the assessment of the evaluation committee that the new administrative structure offers a relatively wide scope of opportunity for administrators to abuse their powers. Furthermore, that they have their reservation whether the system of checks and balances in the new administrative structure is adequately tailored to the specific context of the administration in the Public Entity Statia. In our experience as public entit ythe WolBES, FinBES, Financiel beleidsverordening, etc. offers sufficient control and protection against the abuse of powers by administrators.

The fact that the islands are not properly able to effectively highlight their needs and preferences in The Hague is caused by their lack of capacity to properly document these needs. What also should be highlighted here is the fact that the red tape the islands are confronted with is counterproductive to a harmonious working relationship, and that on the contrary, the bureaucracyis visible in the approach of The Hague towards the island, especially taking into account the attitude of the Dutch representative visiting our shores. The recent boycott of The Hague against Statia by the Council of Ministers highlights the stranglehold that The Hague placed on Statia in a might makes right fashion.

The working of the enacted legislationsThe assessment by the evaluation committee that Bonaire, Sint Eustatius and Saba and the ministries have done an exceptional amount of work together is relative. Yes, large amounts of regulations have been amendedwithin a relatively short time framemost of the time in accordance with the principles and objectives of the ministries.On many occasions the input of Statia was requestedby proposed legislation, but given the time, the lack of expertise/know-how and finances, Statia was not able to submit her findings on the concept legislation. Therefore the implementation and enforcement took place regardless of whether the input of Statia was received or not. The few times that Statia was able to contribute an input; it was not reflected in the specific legislation and or regulation.

On the other hand, Statia supports the findings listed in this paragraph, specifically:The practical impossibility for island administrations (and civil organizations on the islands) to give real meaning to the consultation due to the enormous scale of the transition (and pressure of time): people were simply unable to respond to the ministries' best consultation intentions,The shift of authority from the island administration to The Hague which was not made very clear in advance, partly as a result of the transition from a kind of federal structure (Netherlands Antilles) to a decentralized unitary state (Holland),The changes in the area of implementation (such as tax legislation) and enforcement (particular by inspectorates) which already involved a major change of direction separate from amendments to the law,The expectation on the islands that direct links with The Netherlandswould result in the level of provisions in a general sense being raised to a higher level(a for Dutch standards acceptable level), in view of the principle of equal treatment contained in chapter 1 of the Kingdom Constitution.

II.Important Observations with reference to the evaluation report

The evaluation report confirmed that in 2010, there were huge backlogs, in most, if not all sectors of our society. The report also concluded that it was the intention that through prioritizing our economy, the educational system, health care, our infrastructure, our social security system and our safety would have been improved. The assessment of the committee is that the goals clearly have not been met. It is the firm belief of Statia that a more comprehensive approach is needed. The shift of funding to more effective and efficient spending of the available funds is absolutely necessary.

Statia stands on the premise that more emphasis must be placed on the wellbeing of our people. Therefore, eradication of poverty is one aspect in establishing that. It is prudent that it is firmly established what one must understand with Een voor Nederland aanvaardbaar niveau in providing services in all areas. These services are especially needed, in the social sector, infrastructure and general living environment of our people. Doing so will assure that a higher standard of living be achieved on the islands. Therefore, the next step in this evaluation process, after the Public Entities present their remarks to BZK, a ToR will be drafted to establish how the recommendations will be established. Statia believes that we (Statia and Holland) have to work TOGETHER in an environment of mutual respect, understanding and dignity for each other in building an island that meets the needs of all its citizens.All hands need to be brought on deck to improve the quality and capacity of our local government organization. This applies not only to the civil service, but to the functioning of the island council and the executive councilas well. This will require substantial support of the National government and the help of external expertise. (Plan van Aanpak, 2015). The financial resources our government has at its disposal need to be improve drastically. The FREE allowance needs to be brought to a level to adequately carry out all government tasks and to eradicate the backlogs in infrastructure, economy, government buildings, housing, etc.

III. Consequences for the people of Statia

The level of provisions and the cost of living needs to behighlighted as some of the important priorities for the coming years. In the past five years, some improvements have been realized, but, as the evaluation reports conclude as well, poverty and the cost of living have increased. It is also essential that targets are set for the level of AOV, minimum wage, social financial aid, and other allowances. "Het voor Nederland aanvaardbare voorzieningenniveau" and the poverty line needs to be translated into numbers.It is noticeable that the evaluation report concludes:that the new tax system has created a big burden on the Statia's population and describes many of the flaws in the system.

Action point 3.1: Statiawould like to requestan independent evaluation of the tax system in an effort to establish what should be adjusted to have a system that is more consumers friendly and fits the Statia situation.

IV. Other areas of concern

Statia would like to stress that the following issues be addressed as first priorities:

PovertyThe evaluation committee has concluded that the standard of living has decreased in the past 5 years. The committee concludes on one hand that certain aspects of the transition have contributed to this deterioration and on the other hand that poverty alleviation has to be a joint priority for both National and Island Governments for the coming years.

Action point 4.1:A poverty line based upon "een voor Nederland aanvaardbaar voorzieningenniveau" have to be established, as well as a plan of approach on how to make sure that no Statian has to live below the poverty line.

Local RealityStatia wishes to have more influence in policy making; be able to organize government in a way that suits our local situation best. On November 3rd, 2009 it was agreed upon that the division of tasks between the National and Island Governments would be evaluated yearly, based on subsidiariteit. This has never been done and is now long overdue. We have seen that it has been very difficult for the national government to adjust to our local realities, which was also concluded by the Committee Spies. It is time to seriously consider which tasks should be transferred to local governments with the clear understanding of funds needed.

Action point 4.2: It is of great importance that the recommendations from the Ideeversa reports with regard to the free allowance are implemented to give the local governments the necessary financial means to execute their tasks in providing service to the people of Statia.

Office of the Kingdom Representative (KR)The evaluation report is very critical about the functioning of the new administrative structure. The flaws that are being addressed by the Committee Spies need to be solved. One such flaw is the office of the KR. This office derived its power from Chapter V: Verhouding tot het Rijk of the law WolBES. This office is the end of The Hague's so called funnel of constriction.

In essence, the relation with the mother country should be between Statia's government and The Hague. In the laws and bylaws governing the life and liberty of the people of Statia,this relation is deteriorated from Public Entity Statia -The Hague, to the Minister of BZK, to the Secretary General of BZK, to KR.The function of the KR needs to be revisited.

The input of the National Government through the various ministries needs to be more structured and better coordinated. Instead of that the islands have to deal with all those separate ministries, it would be prudent to have one ministry responsible for the Dutch Caribbean islands. This will guarantee shorter communication lines and a more effective means of spending of the money. Also the role of the Kingdom Representative needs to be reviewed.

Action point 4.3:Statia is of the opinion there is a need for an in depth scrutiny of the purpose and functionality of this KR office in the chain of the relationship with Holland. Therefore, this should be done post haste as one of the recommendations to be executed.

Purchasing Power & TaxesThe decreased purchasing power of our citizens since 10-10-10 remains unchanged. There is no improvement in our economy in sight. Statia is struggling to deal with her annual budget, but the Ministry of Finance intents to raise the taxes with the result that more money will be taken out of the economy of the islands. This will result in decreasing buying power of the people of Statia and also will have a negative impact on the already sluggish economy of Statia.

It is of paramount importance that an assessment is done before any actions are taken that might result in an extra burdening of the people of Statia.

Action points 4.4: a) The tariffs, including the threshold of USD 70,000 for property tax applicable for the year 2015, must be extended until 2019 after which an evaluation of the economy of the Public Entities in the Caribbean part of the Kingdom ought to take place. b) The property tax destined for the Central Government for 2016 2019 must be reduced by 0.8% to 3.2% for hotels and with 1.4% to 5.6% for other eligible properties. This will allow Statia to introduce a percentage surcharge (opcenten), as the law allows, without increase of the tax burden to the people of Statia.

The following is a list of concrete flaws of the current tax system:(This list is by no means comprehensive)1. The idea of the introduced flat tax was to share the burden across the board and increase the purchasing power of the population. However, the actual increase in purchasing power does not cover the actual rise in the cost of living. The Evaluation Committee has concluded that purchasing power for the lower and middle incomes has decreased.2. Sint Maarten continues to levy their Turnover Tax on goods for Statia after October 2010, while goods for the island should be exempted from this domestic tax. Despite numerous attempts by both Island and National Government, this situation continues to exist. The tax has even increased from 3% to 5%.

Action point 4.5: Statia is a strong proponent for a practical agreement to be made with Sint Maarten for Statias businesses/entrepreneurs to get reimbursement or exemption of Turnover Tax or goods and material destined for Statia should automatically be exempted. Although indicating what is done by St. Maarten, it is the responsibility of Holland, as a priority, to reduce the percentages of taxes levied on the people of Statia introduced since October 2010 to compensate for double taxation.

The various 'kinds' of ABB altogether are among the main causes of the high cost of living. ABB is also charged on shipping and insurance cost, while the cost for shipping is already extremely high because of the small scale and low volumes (In this respect ABB is treated as import duty, while it is not). The same applies for the ABB on services which has had a negative impact on this industry. Lastly, construction work is also severely impacted, because the ABB is applied to materials, which all have to be imported, including the shipping cost. These were new taxes, and businesses ultimately pass them on to the consumer.

Action point 4.6: The difference in ABB between Bonaire and Statia/Saba stays in place because of the difference in historical build-up of taxes, and the different nature of the economy: the cost of living is already very high on Statia, and an increase in ABB would make the cost of living even higher. CBS statistics have proven this over the years, and the evaluation committee comes to the same conclusion.

V. Observations: Bottlenecks and Their Impact on Statias Community

In Statia, numerous small-scale initiatives and projects have been given shape, partly thanks to the efforts of the local communities. Unfortunately, these positive developments are eclipsed by a widely felt disappointment on the islands, which has consistently increased since 2010.

There are strong indications that the transition, and particularly the introduction of certain laws (including tax laws), have not had the intended positive influence on the economic development of the islands and, therefore, did not contribute to the inhabitants' level of prosperity.

It seems repetitious, but again the mentioning of the new tax system is needed to substantiate Statia's position. The new tax system was intended to stimulate economic development in Statia. Although the influence of the new tax system on the economic development of Statia cannot be quantified, this objective was surely not achieved.

Action point 5.1:The committee was unsuccessful in identifying why the implementation of certain laws failed their objectives and to review the direct impact on the people of Statia. This must be rectified through thorough assessment in an effort to establish the necessary adjustments needed.

Another point that needs clarification is the interpretation of what was agreed on prior to 10-10-10. It is established that the improvement lagged behind the expectations as a result of the vagueness of the agreements made prior to 2010. It became apparent that Holland and the Public Entities have a widely differing interpretation of the agreements made. One of the main examples of this related to the agreement is that of the provision of wealth/ health care and provisions would be elevated to een voor Nederland aanvaardbaar niveau. From the onset, Holland and the islands held different opinions on the interpretation of this agreement, with the result that not all services and provisions (especially social provisions) have been made concrete while the living standards have been falling steadily. The desired standard of provisions should not be formulated with abstract words only, but geared directly towards actual practice.

Action point 5.2:It is of great importance to get insight into the social acceptance of the involvement in the transition process that a clear picture is painted, jointly and in the short term, of what the desired standard of services and provisions on Statia should be likein all aspects. It will undoubtedly also contribute towards enhancing mutual trust and coordination for the future.

On another note, it is observed that in the period leading up to the transition in 2010, it was already clear that this agreement on gradual integration was being interpreted differently. This particularly applied to the difference in opinion about the extent to which efforts should be geared towards introducing Dutch legislation and to what extent deviations from the Dutch legislation were needed due to special circumstances on the islands. It also became clear that there were differences in opinion on the term within which a further integration should be realized.

It is now more than clear, that then it was more difficult to fathom those factors such as climate and geographical circumstances; circumstances which based on chapter 1 ofthe Kingdom Constitution can lead to differences due to different circumstances. Not clearly establishing in all sectors what is the, within The Netherlands, acceptable level of provisions. This has created the justification for the current reality that the living standard of a relatively large group of inhabitants is lagging far behind what is deemed acceptable in the European part of Holland. At the same time, there is a sense that Holland takes insufficient account of the local circumstances and the differences between the European part of The Netherlands and the three islands, also among the three islands, in legislation and implementation in other cases as well.

There appears to be a consensus that the decision to turn the island into public entities to express the direct ties with Holland is not felt as an improvement compared to pre 10-10-10, when the islands at least had some level of proximity to the central administration. Statia had a representative in the executive and legislative branch of the Netherlands Antilles. Now this is not the case. As a result of this,the people of Statia feel ruled over from afar by persons who, more often than not, do not make an effort to see and hear what the inhabitants of the island experience.Logically, our political representatives in the Dutch Parliament will answer foremost to their Dutch European constituents, who have no interest in what is taking place on our little island. Beside this parliament structure a form of representation needs to be established whereby each island has the tool to directly approach the political representatives as well as the various ministries in The Hague.Many people on the island do not see any improvement on the situation that was in place when they were still part of the Netherlands Antilles, despite the improvements made in the areas of health care and education.On the contrary, they see only a regression in many areas.

There are no overall solutions to speak of despite the fact that the nature of the problems and scale of islands call for such aremediation. In other words, although the dire situation is known, no substantial efforts is being made to bring about necessary changes. The fragmentation is difficult to handle for the islands because of their limited staffing capabilities. It takes a lot of meeting and consulting which means that a disproportionate administration load falls to the islands. The relations became more strained, particularly those between the European part of The Netherlands and Statia and to a lesser extent Bonaire. The performances of local administrations do not stand alone and should be viewed in the context of the circumstances in society as a whole. A relatively large section of the population has trouble surviving due to a complexity of problems, which includes a diminishing purchasing power, level of education and difficult family situations. The administrative practices and the quality of the administration are first and foremost determined by personal qualities and conduct, while the administrative culture only has a minor influence.

Action point 5.3:Since there is still a lot of room for improvement in this area of administration, a plan of approach must be established to be achieved through education, supported by Dutch ministries and collegial accountability. Achieving the necessary changes will not happen overnight. It will require huge efforts, patience, time and energy.

VI. Health Care

Overall the health care has improved over the past five years. The quality of the health care provided during referrals abroad is good, and Statias infrastructure for healthcare has seen improvements as well. There is, however, always room for improvement: Statia is in favor of more investments at home and on DutchSt. Maarten (SMMC).This is cheaper because you save on travel costs, and it is more convenient for patients. It is closer to home, there is no language barrier and foremost visits of family members is possible, easier and cheaper. For these same reasons more investments should be made in the Queen Beatrix Medical Center on Statia. Investing in Sint Maarten Medical Center would also improve the quality of care in the Kingdom at large and it would improve the relationships within the Kingdom.

Action point 6.1:It is a must to invest in Sint Maarten Medical Center to reduce costs of referrals to Colombia and Guadeloupe. Referrals then surely will be easier on the patient - family relation. No language barrier, family contact is greater and the friendliness is very supportive.

The execution of the health insurance has not proven to be very efficient. This is frustrating for patients (for example when they only receive their daily allowance after their medical referral), and costs the Dutch government a lot of money. Improving the EFFICIENCY of the execution eliminates the need to make cuts in the insurance package. Why upon arrival in Columbia each patient is provided with a taxi while all the patients are going to the same location for boarding? Another area that surely can yield saving is the return date after completion of treatment. Patients are confronted with many days of extra stay in Columbia before travelling back home. The budget and backlog were initially tremendously underestimated, which is the reason why there was such a sharp increase in the budget over the past years. Things have normalized and now there is more of a natural growth.

Action point 6.2:Statia therefore, strongly supports an assessment of the logistical part of the referrals. This will surely free a substantial amount of funds that allows the reintroduction of dental care and physiotherapy in the health insurance package. In Holland one can buy a secondary insurance to cover dental care for example. On Statia this is not possible; therefore, this possibility calls for a discussion with the ministry that must lead to a suitable solution on this matter.

VII. Statia and Public Transportation

In Holland, prices for public transportation are regulated by concessions in order to keep the cost of transportation from remote areas to service centers (cities) affordable. In rural areas, such as Wadden eilanden the national government provides subsidies to the transporters in an effort to keep transport cost affordable. For almost all transport services, Statia rely on Sint Maarten, but unlike Holland, transport to and from Sint Maarten is not regulated, and prices are very high. This hampers the development of Statia tremendously. The high price of transportation of both persons and freight is a major contributor to the high cost of living in general on Statia. Tourists also refrain from visiting the island because of the high price of tickets, which severely hampers our economic growth.

It is also noteworthy that there is no competition for transport to Statia out of Sint Maarten. Therefore, although the price of oil has seen a drastic decrease over the last years, prices for shipping and flight tickets continue to increase. Regulating the prices for shipping would be a very efficient way to bring down the cost of living on Statia, since shipping prices are reflected in almost all prices on the island.

Action point 7.1:Before 10-10-10 The Netherlands Antilles was responsible for proper transportation between the islands. The Netherlands did not take over this responsibility. Statia is of the opinionthat The Hague,as rechtsopvolger, shouldbe responsible and regulate the traffic between Sint Maarten - Statia via concessions and consider the route as public transport. The point of departure needs to be affordable and reliable transportation between the islands.

VIII. Social Provisions

The pensioners who collect only AOV live below the poverty line and often have to work well beyond retirement age just to make ends meet. For Statia, the job market is extremely limited, which makes it very difficult for pensioners to find work to supplement their meager pension incomes. Unlike in the European part of the Holland, Statians mostly don't have a secondary pension beside their AOV. When AOV is the only income, it is very difficult for one to live an independent and dignified life. It is advisable to increase the level of AOV so that seniors without an extra pension can also live a life where their basic needs are covered, with an income that can cover their expenses. Also the increase of the minimum wage and the allowances that are connected to the minimum wage is needed, but this increase should not go to the extent that businesses succumbed under these increases. This balance must be monitored closely in the interest of employees and businesses.

A closer look is needed in the very high social benefits which have created a big burden for the businesses on the island. Seeing the huge discrepancy in the level of social benefitsbetween Holland and Statia,one wonders if this matter was a discussion point during the deliberations leading up to the new constitutional status. The same holds true for the minimum wage and the level of AOV.

Action point 8.1: AOV level, minimum wages and social premiums must be revisited and adjusted accordingly in the interest of the businesses and the people of Statia.

Applying laws based upon the European standard is not always beneficial for Statia. Inspections have to be done with a better understanding of the local situation in order to be effective.

Action point 8.2: Statia supports the initiative for the transfer of the labor office back to the local government. With local execution and accountability, the task of this office can be executed more efficiently and the local labor market is better protected.

IX. Banking in Statia

AFM/DNB. The regulations for banking have been changed to a large extent in accordance with the situation in Holland. This has led to differences between regulation in Sint Maarten and Statia, especially in areas where AFM is active. This caused difficulties for the banks on Statia, since they are all Sint Maarten based.

It has become more challenging for the banks to do business on Statia since they are running the risk of not complying with the (for them) alien regulations, and are inclined to retract their business from the island. That would be disastrous for Statia's economy. This also resulted in making it much more difficult to acquire loans. The requirements for loans are more stringent and in most cases the "small man" is not able to get a loan. The same principle of compliance counts for money services like MoneyGram and Western Union, and insurance companies and their brokers in Statia.Another proposal is to encourage Dutch banks to establish themselves on Statia. These banks are familiar with Dutch regulations and in general offer a higher level of services to their clients.

Action point 9.1: Statia supports that the public must be protected against the banking industry. It is clear that when measures are based on banking regulations of Europe, without taking the Caribbean banking structure and culture into account, then the same persons these laws intended to protect, become the victim of this protection. Therefore, it is imperative that an evaluation of these regulations take place with the input of the local banking industry.

X. Education on Statia

Education on Statia has seen a lot of positiveinvestments but, just like in health care, there is still room for improvement. Many of the Primary and Secondary educational institutions have met or are well on the way to meeting the basic quality assessment requirement of the Dutch Inspection Authority.The most challenging struggle for Statia's students is furthering their studies after high school. Studying in the United States is very expensive in comparison with studying in Holland. An established fact is that the level of Dutch of many students is not sufficient that inhibits them from continuing their education in Holland. Several solutions are possible, such as more focus on Dutch as a foreign language in primary school and high school, or the opportunity to follow an intensive Dutch course to get students ready for studying in Holland. The levels and structure of study financing have not increased and have remained the same as it was in the former Netherlands Antilles. These levels do not reflect the current situation as the average price of tuition, especially in the USA, has increased dramatically. This makes it very difficult for persons to pursue their tertiary studies as it is financially not possible.

Statia supports the initiative to look at the scholarship financial differences in an effort to establish realistic financial support in the scholarship package of the students. It is also important that countriesin the Caribbean region, the UK and Canada are added to the acceptable countries for study financing to increase the options for students.

Action point 10.1: The scholarship packages need to be re-adjusted to fit the financial requirement of the destination of study.

There is a great need to have the available human resource potential among our people exploited for achieving growth in human independence and improvement within the labor force.

Action point 10.2:Scholarships must be awarded on basis of what Statias needs are. Statia must be more influential in dealing with the present Dutch policy of scholarship in an effort to prevent granting random scholarships. Simultaneously, and in line with the adjusted policy, a needs assessment will be carried out to determine those competencies. Statia believes that students with a scholarship should be encouraged to return home to contribute to their country.

There is a lack of support, services and possibilities for children with special needs. The schools on Statia are doing all they can to offer tailor-made possibilities and programs to these children. Acquiring funding for their specialized needs is very difficult. The focus is, as a result of international treaties, on the rights of the child and therefore the rights of these special needs children must be a priority at all times.

Vocational Education and also Special Education are still treated as foreign entitiesin the educational system. A myriad of researches worldwide and in the wider Caribbean have shown that there is a greater need for vocational education and hence the shift in education to promote and include more vocational subjects. The time is here that stakeholders and government take their responsibility to champion for the necessary support system for these sections of the educational system.

Action point 10.3: More focus, funding and opportunities must be organized for vocational and special needs students on Statia.

The evaluation reports state that it is important to work on capacity building within the community at large. That is an incentive to invest in the education system even more. It is also an incentive to work on a better connection between secondary and tertiary education, and between tertiary education and the labor market on Statia.

Action point 10.4: Stakeholders in education must investigate what is needed to set up exchange programs (School at Sea) with Holland and regional organizations, in an effort to strengthen local organizations, and create opportunities for Statians studying abroad to gradually return to Stati.

XI. Justice in Statia

The general consensus is that on Statia the crime level has increased since 10-10-'10; of which more specifically breaking in and theft. The believe that the police are not taking enough actions to prevent this from happening. People felt safer before 10-10-10 because the police force was much more visible, especially at night. In case of an emergency there is hardly anyone after twelve o'clock in the police station, and on top of that, the call placed for police assistance connects first to Bonaire. This is unacceptable. Our people must have the same safety and protection as those living in Holland.

Action point 11.1: It is advisable that an emergency number is established on the Statia and that more manpower is provided so the police station is manned after twelve oclock. The communication with public need to optimize in an effort to build up the respect and trust of the public in the police force. To protect and serve must mean something for the people again.

Another issue of contention is that within the Ministry of Justice, agreements made with the respective State Secretaries of Justice seem to become invalid after changing of the State Secretary. With State Secretary Teeven it was agreed upon that young offenders will be sent to the juvenile center in Sint Maarten.The family members of those that are incarcerated in Bonaire will, at least once per quarter, have the opportunity to visit their family member, paid for by the ministry. Mr. Teeven left office and that dossier was never executed. Family visits to inmates have been established and cemented in several High Court rulings of the Kingdom of the Netherlands.

Action point 11.2: It is important that although there is changing of the guard, continuity is a must where firm agreements have been made.

XII.Democratic Deficit

In the constellation of the Netherlands Antilles, Statia enjoyed a certain level of autonomy. Statia was represented in the Legislative Branch with a Parliamentarian and in the Executive Branch with a State Secretary. After 10-10-10, the processes of representation and accountability in the two branches disappeared.

Therefore, one of the key issues that became apparent during the discussions of more autonomy is the classic one of political representation, namely, how the preferences of Statias citizens can be linked to decision making and guaranteed in Holland. The processes of political representation have to be understood within the context of the constitutional framework of Holland.

As far as assessed, there are a series of problems with this model of Public Entity. No representation in the legislative and executive branches. Behind the closed doors of the Council of Ministers, and the complexity of relating policy outputs to outcomes, makes it extremely difficult for the people of Statia to evaluate the actions of the government in The Hague. On top of that, there is no voice in The Hague which gives Statia a say by voicing the opinion, observation, concerns and approach of Statia. In other words, they are talking about Statia, making decisions for Statia and signed treaties on behalf of Statia without any substantial input of Statia.

Action point 12.1: In conferences with Holland about more autonomy, it is of paramount importance thatproperrepresentationis one of the priority points. Statians want to have serious input on matters regarding their life and liberty.

XIII. The way forward

The findings of the Evaluation 2015 confirmed what Statia emphasized all along during the many meetings of the past five years. What is very clear, and echoed also by the committee, is the fact that each island is different and needs a tailor made approach to fight the deprivation and poverty in Statia. It is also essential that a plan of approach is established to help forge Statia on the path of financial sustainability. It is, therefore, time for Statia, as an island of the Caribbean part of the Netherlands, together with TheHague, to carve out a path of approach towards the execution of the development of Statia.

Seeing the damning findings of the report of the evaluation 2015, the minister will have to demonstrate to the Second Chambers satisfaction that they as the legislative body, must assume responsibility to provide the lack of manpower, expertise and finances in the interest of the people of Statia. Time and time again, The Hague has pushed the limits of its duty, acting unilaterally to change the laws, tightened the supervision on the island. It is time for the mother country to understand that being in for a penny also includes being in for a pound.

Acknowledging the many, if not all, critical remarks in the findings of the committee is one thing. The question that remains is what will happen with these findings? This will be a challenge for the coming years and, therefore, it is of utmost importance that Statia together with The Hague works towards a status where all these negatives will be a thing of the past. This will not happen overnight, but as long as the first step is taken in that direction, we will be already closer to our destination, namely, our living circumstances will be equal in equal circumstancesto that of the European part of The Netherlands as per the mandate given by the Kingdom Constitution.A first step could be the establishment of a joint committee of the islands and the National government to identify and recommend clear decisive actions that will remedy the many shortcomings brought forward in the Spies report.

Action point 13.1:Statia is a strong proponent of a advisory body to oversee the increase of the limits ofStatias political powers in dealing with The Hague, and on the other hand also tomotivate The Hague to overcome its natural reluctance of actually getting cooperativelyinvolved in dealing with this part of the kingdom. Their willingness, input andtrustworthiness must leave little recourse to rectify this injustice of double standardportrayed on the people of Statia these past five years

References

Document: Reaction Bonaire, Sint Eustatius and Saba to the evaluation reports DP Statia notitie: Proposal Property Tax (Vastgoedbelasting) DP Statia: Comments on Evaluation Vijf Jaar Caribisch Nederland Standpoint Constitutional Evaluation Public Entity Saba 11 December 2015 Interviews with individuals on Statia Vijf jaar Caribische Nederland:Gevolgen voor de bevolking, Evert Pommer and Rob Bijl Vijf jaar Caribisch Nederland:De werking van de wetgeving,Heinrich Winter,Herman Brring,Niko Struiksma,Gert Blekkenhorst,Jur van der Velde,Christine Veen and Roel Botteman Vijf jaar Caribisch Nederland:Werking van de nieuwe Bestuurlijke Structuur, dr. Oberon Nauta UPC: Knowing The Game and UPC Take On Dutch Interference"

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