PHILIPSBURG--A group of 73 local construction-related companies submitted a petition to the Council of Ministers and Parliament on July 15, raising concerns about contracts going to foreign contractors with no ties to St Maarten, particularly the far east.
The petitioners said procurement processes should promote fair competition, represent the St. Maarten standards and conditions based on favouring contractors that work with locally-based companies, and, if necessary, authorities should be strict about not permitting any work method that will not fit into the local community.
“We must build and strengthen the local St. Maarten economy with the Irma Recovery funds, not weaken it,” the contractors declared in their petition, a copy of which was sent to “The Daily Herald”.
The petition was supported by contractors, subcontractors, suppliers, consultants, architects and other construction-related companies. In their petition, the businesses urged contracting authorities to carefully consider using public funds or other acquired funds for contracting contractors to execute works in St. Maarten.
“We represent a particularly important part of the St. Maarten economy and society, and we provide the cornerstones for our hospitality industry. Together with our employees, the policymakers, the Parliament and the government, we have the obligation to collaboratively prepare St. Maarten for the future. And together we must protect what we have built since our independence within the Kingdom of the Netherlands,” the petition read.
“With the support of the Irma Recovery Fund, we have been able to build and cement significant changes on St. Maarten. With the NRPB [National Recovery Program Bureau – Ed.] initiating and overseeing these changes, we see a procedural approach, driven by World Bank policies, in the designs of the term of references and the tender procedure. This approach is designed for generic larger economies and, without considering the specific local conditions, can have devastating consequences for our small island economy.”
According to the petition, most recovery funds aim to support the economic and social development of the receiving countries. The ultimate goal is to enable the receiving countries such as St. Maarten to become self-sufficient and sustainably shape the future. So, involving local parties/businesses is of paramount importance when executing projects. The locals will gain more experience and knowledge to be more resilient.
“We firmly request to ensure that the contracting authorities proceed with a procurement process that promotes fair competition, represents the St. Maarten standards and conditions, and is based on favouring contractors that work with locally-based companies. And, if necessary, be strict about not permitting any work method that will not fit into the local community.”
The petitioners said it is a fact that local qualified human resources in St Maarten are more familiar with the local legislation, the local circ*mstances and logistics. Personnel coming from abroad will take more time to prepare and understand the local standards/logistics and regulations/laws. “That is why our local human resources must be preferred over personnel from abroad to proceed with the execution of projects funded with special funds.”
Petitioners said also that contractors from outside St. Maarten have often no experience in St. Maarten. “We as local companies with a large record in the Caribbean, especially in St. Maarten, have successfully executed and completed various projects. It is also a fact that awarding contracts to companies outside St. Maarten with no bond with the island of St. Maarten could negatively impact the local economy. The local companies are committed to employing and using local labour and suppliers, so the St. Maarten economy will always benefit tremendously.
“Throughout the Caribbean, we have seen the disruptive effect that these companies can have on the local economies,” the petition read.
“Again, it is our God-given task and responsibility, as the unified business community, Parliament and government to steer St. Maarten away from these highly threatening developments.”
The petitioners stressed that local businesses have a strong engagement with and support from the local community. “Local businesses have been involved in different community projects and will continue to do so in the future to foster community goodwill and participation. With the arrival of big companies from outside St. Maarten (especially far east), the playing field will be disturbed, local businesses cannot compete with very low prices and will subsequently leave the disturbed market including the consequences. We emphasise that the government should protect the market of small islands such as St. Maarten. This can be done by taking measures and designing policies to safeguard the economies of small island nations. These measures are necessary due to the unique vulnerabilities these islands face, including limited resources, high dependency on imports and susceptibility to external economic shocks,” stated the petitioners.
“We emphasize the importance of ethical considerations when awarding contracts to contractors outside of St. Maarten. We as local businesses will be committed to adhering to all ethical standards and will keep being committed during the execution of the works. Disturbing the local market by allowing other standard/practices will have far-reaching consequences for St. Maarten as a whole.”
The petitioners believe that their suggestions are essential to ensuring that local companies are being protected and that this will serve the best interests of the community and the interests of St. Maarten.
“We hope you will seriously consider our requests and take the necessary steps to ensure a fair and transparent awarding process. We are available to present and defend this petition and discuss the possible consequences as outlined in this document,” the petitions said.
