Browse > Home / Local News / Unpaid Utility bills soaring in the US, and St. Maarten…?

Unpaid Utility bills soaring in the US, and St. Maarten…?

April 26, 2008

According to the latest reports in the U.S. soaring unpaid utilities bills are causing major disruption for companies and residents since the harsh winter in the northern states created above average consumption as well as rising oil prices adding “insult to injury” to a declining economy.

In St. Maarten high season is almost coming to an end and this normally spells two incidents:

  1. Rising temperatures and thus higher “cooling” bills
  2. Less discretionary income for companies and thus also employees

So, will St. Maarten also see a lot of disconnections?


If the predictions that oil prices will increase to as high as $200 per barrel materializes, we can expect to see electricity bills that are going to be almost double of what they were same time last year.

Compounded by rising food costs, gasoline costs and other rapidly increasing expenses in day-to-day living while minimum wages are really at bare minimum and pensions are ridiculously low, massive disconnections over the summer months on St. Maarten may well be a common sight.

Since the St. Maarten government is not a pro-active government (this seems to be a normal behaviour for most governments) in foreseeing arising problems for its people, it will almost certainly lead to “turbulent” times. The one pillar economy that thrives on tourism and is influenced by its touristic seasons (high or low) will undoubtedly be affected by the U.S. recession and rising gas costs and its consequences. While lay-offs are common in the “off-season” with hotels, restaurants, bars, activities, charter, watersports and marine industry, it is expected that these numbers soar over last year’s.

Traditionally these seasonal lay-offs do cause problems for people, however most seasonal workers are aware and manage to put away some savings to “stretch” their income for the period of unemployment until the next season “kicks in”, but this year we understand that many due to the overall sharp rising costs were not able to do the traditional “ting”. Casino workers in the past made good headway based on the tips gamblers would leave but we understand that even in this sector the “well” has dried up.

Since Casinos are also seasonally influenced by the tourist fluctuations, the rising tourism numbers for Cuba from European origin and the announcement by the Jamaican government to “venture into the gambling arena”, the pressure on one of St. Maarten’s highest foreign currency inflow sources may come under very heavy stress as well.

Should all these factors become a reality we will see massive lay-offs in the Casino industry as well compounding further to the decline of discretionary income.

It would be wise if government would first look at the “home front” and secure the St. Maarten economic position for its population before continuing the “hot pursuit” of becoming a country within the Kingdom. The reason for this remark is that negotiations with the Dutch to obtain said status are mostly based on “sound government policies”, “an adequate justice apparatus”, and “financial stability” before further negotiations will bear any fruitful results.

With the low season looming, rising prices for food and utilities, heavy pressure on the job market, and possible massive lay-offs, the justice and financial system will come under heavy pressure which are exactly the criteria for the Dutch to grant a “separate status within the kingdom”.

Written by admin · Filed Under Local News 

Comments

Got something to say?

You must be logged in to post a comment.

Search blog stories: