Montserrat, August 17,1995
Bank Manager Advises on Crisis Management
The Manager of Barclays Bank here has urged businessmen to plan their way out of a crisis
brought on by volcanic activity.
Norris Vidal told a Forum organized by the Montserrat Chamber of Commerce and Industry that
available figures show a ten per cent flight in the island’s population. He said when you figure
the students from the American University of the Caribbean into that, buying power here could be
reduced by between 30 and 50 per cent.
The American University of the Caribbean (AUC) Medical School is relocating to St. Martin.
Vidal submitted that prevailing circumstances make it is necessary for importers to cooperate
and process joint purchases, in order to get the best prices. “You should also consider reducing
quantities as well as stock levels,” the banker implored.
He said as painful as it may seem, since staff costs are usually very high businesses may wish
to review their staffing levels. And he advised that during the crisis, companies should be more
selective in giving credit and in the amount they give.
At the same time, Vidal cautioned that this was not the time for high overdraft or high borrowing
levels, and he urged that importers should approach their principals with a view towards seeking
special terms and concessions. Locally, he surmised that it could become necessary for the
business community to seek relief from the authorities. “This could come in the form of import
duties or taxation,” he said. Adding “to recover from the volcano we all need to give something in
the short term.”
August 17,1995
Chamber of Commerce and Industry Hosts Economic Forum
The Montserrat Chamber of Commerce and Industry (MCCI) is applauding its all day forum last
Wednesday as a positive initiative. It says the business community demonstrated the ability to
contribute to the economic development of the volcano stricken island.
The exercise according to the MCCI was intended to produce ideas aimed at stimulating
‘optimism and revitalizing confidence in the economy of Montserrat
The opening session also attracted Governor Frank Savage, Chief Minister Reuben Meade and
other Government Ministers.
“We can make no apologies for the contingency planning we have made,” Governor Savage
declared as he addressed the participants. He said some of the criticism of the plan raises
questions about readiness and why some of the plans were not in place before. “This is a
question I ask myself,” he to told the businessmen. At the same time he revealed that while there
was a comprehensive disaster plan for dealing with hurricanes the plan for a volcanic disaster
was sketchy. “However,” he said “The British and Montserrat Governments have now put in place
a very comprehensive plan designed to protect and give sustenance to the population over a five
to six day period.”
Referring directly to the current situation, he said it was also sensible that ‘we have an off island
plan which has been developed with the friendly governments of Antigua, Guadeloupe and St.
Kitts and Nevis. “But” he said “we may have to face the fact that it may not be possible to come
back to the island straight away.”
A meeting last week between the MCCI and two U.S. Scientists seemed to evoke the ire of the
island’s British Governor. “I think the briefing which the American Scientists gave to the Chamber
has done a certain amount of damage because it was not authorized by the head of the seismic
team,” he said. The two scientists left the island the following day and the governor said some
damage was also inflicted ‘because one newspaper has chosen to make comments which the
scientists themselves do not recognize. ‘
The Governor and the Chief Minister have been giving nightly updates on the activity, and Savage
said “everything we have said to the public has been honest and has been approved by the
scientists.’ Reporting that over the last four weeks there has been an upward escalation in
activity, he said ‘we simply cannot tell where it is going. “At no time have the scientists told us it’s
unlikely that the volcano is going to erupt, at no time have they told us we could rule out
categorically a devastating explosion.’
Chief Minister Meade challenged the Chamber to consider answers to questions on a wide
range of “Do you as a chamber change or do you react to change?” The chief Minister asked. And
explained that he did not necessarily mean change because of volcanic activity but in terms of
economic activity, in technology and in the way they do business. “Do you as a chamber have
plans on which we can work together for private sector involvement in the developmental
process?”
The Chief Minister also wondered whether as a group the Chamber continues to focus on ‘short
term solutions for long term problems.’ And he expressed the view that the Caribbean has a
tendency to look at ‘quick fix solutions while quite a lot of the problems are long term rather than
short term problems.’ “We need therefore to look at long term solutions,” he concluded.
During the session, the discussions focused on agriculture, finance, manufacturing, tourism and
real estate.
By the end of the day, MCCI President Franklin Margetson said they had formulated ideas which
the Chamber could implement. He said there were also recommendations which will be taken
up with government.
“As was anticipated, it was a positive initiative and members of the MCCI demonstrated that they
had a willingness and the ability to come up with ideas which when implemented are bound to
have a positive impact on the economic health of the island,” Margetson said.
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