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GROWTH FOR THE GREATER GOOD
Mr Speaker, Sir,
I move that the Appropriation Bill 2012 be read a second time.
2. Mr Speaker, Sir, it is a great honour for me to present the seventh
budget of the two consecutive mandates of this Government.
3. In 2005, this Government inherited, in the words of the previous
Prime Minister, an ‘Économie en état d’urgence’. And since then,
Mauritius has had to deal with one external shock after another. This
included the worst food price inflation and biggest surge in oil prices in
decades, the worst financial turmoil in a hundred years, the worst economic
crisis Europe has seen in a very long time, and now the relapse of global
economic recovery.
4. It has been six years of assorted adversities.
5. But under the strong and effective leadership of the Prime Minister,
supported by a committed cabinet, our country has weathered every storm.
6. These adverse global events have left many countries counting their
misfortunes. But Mauritius has withstood all the shocks.
7. Since 2006, we have:
• created 9,400 jobs annually, compared to just 4,500 annually in
the preceding 5 years;
• increased net international reserves to around 40 weeks of
import cover;
• set out one of the simplest tax return systems in the world;
• made Mauritius one of the lowest income tax economies in the
world;
• broadened the economic base with new sectors; and
• begun the democratisation of the economy.
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8. Mr Speaker, Sir, we have pulled the economy out of the ‘état
d’urgence’ and put it in an ‘état de résilience’ never seen before.
9. Every step of the way, the Government has managed the economy not
only for growth but also for uplifting the life of every citizen.
10. This Government has thus blazed a new trail of prosperous
development.
11. It has got both its rhetoric and its actions right - actions that match
up to its promises.
12. In the future we know the challenges will be even tougher. But we
will ride them out with even deeper determination.
13. As the saying goes, “it is only when it is dark that you can see the
stars”. Even in difficult times, opportunities will open up. We shall seize
them. We shall seize them to create more wealth for our country and a better
life for all our citizens.
GROWTH FOR THE GREATER GOOD
14. Thus, Mr Speaker, Sir, Budget 2012 is about more growth. It is about
GROWTH FOR THE GREATER GOOD.
15. Growth requires investment. And investment requires demand.
16. This budget faces up to the demand challenge.
17. It sets out a more intensive approach for export promotion and market
development.
18. It also promotes further the opening of our economy.
19. It makes bold adjustments to tax policy so that it promotes rather than
inhibits growth and social justice.
20. It announces institutional reforms to further embed efficiency and
good governance.
21. And it takes the country a stride closer to the full democratisation of
the economy.
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22. Budget 2012 recognises the need to facilitate the rising trend of
women seeking employment and will try to break the vicious circle for
youth. No jobs without previous experience, and no experience without a
previous job.
23. This Budget also goes to the roots of poverty and deals with its
painful manifestations. We know poverty is a difficult multi-faceted
scourge. It is not only a problem of material well-being but of human
dignity as well. That is why we will mobilise the maximum efforts to face it
down.
24. And Budget 2012 is about dealing with issues that resonate in the
daily life of our people.
25. Finally, it addresses the need to take the country safely through the
crisis.
26. The pursuit of GROWTH FOR THE GREATER GOOD will cut
across the four main objectives which I announced a few weeks ago:
• setting the basis for strong growth,
• riding out the crisis,
• improving our social protection, and
• fiscal reform.
REVIEW OF THE GLOBAL AND DOMESTIC ECONOMIC
BACKDROP
27. But, Mr Speaker, Sir, first let me give the economic backdrop to the
budget.
28. Three months ago I took office amidst fears that the world economy
was once again in peril. These apprehensions have further intensified.
29. The global economy is fragile and fraught with uncertainty. Global
trade is losing momentum. And consumer confidence is waning.
30. The wait for a robust upturn may be much longer than was
anticipated.
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31. But our own economy is showing strong resilience. The main
economic indicators for 2011 show:
• a real GDP growth rate of around 4.2 percent;
• an unemployment rate of 7.8 percent;
• an inflation rate of 6.5 percent;
• a budget deficit estimated at 3.8 percent; and
• a public sector debt of 54.2 percent.
32. Despite the high fuel bills, the Balance of Payments is in surplus of 3
billion rupees.
BUDGET OUTLOOK
33. Mr Speaker, Sir, for 2012, because of poor visibility as to where the
global economy is heading, we are cautiously forecasting a growth rate of 4
percent. This will be the same as the growth rate of world GDP.
34. This budget will raise revenue of 76.9 billion rupees of which:
• 16.4 billion rupees from income taxes,
• 44.4 billion rupees from indirect taxes, and
• 3.4 billion rupees from grants and other budget support.
35. Expenditure will amount to 90.5 billion rupees. And as a result, the
budget deficit for 2012 will be a respectable 3.8 percent of GDP. This is far
lower than the 5.1 percent deficit we inherited from the previous
Government.
36. To plan this low deficit, at a time when we know the economy needs
to be stimulated, required some hard choices. And we chose responsibly.
37. We chose tax changes that enhance economic growth rather than fill
the coffers of Government. We will raise, lower and even abolish some
taxes.
38. We also chose to ensure the quality of the deficit. This means that in
2012 Government will borrow only to finance its investments – that is to
create wealth in the future.
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39. I am pleased to announce that Government will, for the first time in
more than a decade, generate a surplus on its recurrent account.
40. However we still need to be prudent.
41. That is why we are reducing the public sector debt to GDP ratio to
54.1 percent in 2012. This is a significant improvement on the
unsustainable debt of 62 percent that we inherited. The experience of
Greece, Spain, Ireland, Italy and other countries holds valuable lessons for
us. We are seeing how a debt debacle can undermine economic stability.
42. Thankfully, we are well on course to the 50 percent debt to GDP
objective set in the law and to be achieved by 2018.
43. Mr Speaker, Sir, notwithstanding the resilience of our economy and
the sustainability of our deficit and debt, we will hold the rein tightly.
SETTING THE BASIS FOR STRONG GROWTH
44. Mr Speaker, Sir, there are ominous signs that trouble is in store.
45. There is urgency. Action must be taken now.
46. But, we must be rational and not merely reactive.
47. Mauritius has always been a nation of increasing prosperity. This
should never change.
48. During the next three years we will set growth on a more sturdy
course.
49. We will also set the base for a high-investment, high-productivity,
high-efficiency, high-technology and high-wage economy.
50. We will do so because this is the surest way to join the league of
high-income countries.
Tax Policy to Boost Investment and Growth
51. Mr Speaker, Sir, I will start with major changes in tax policies.
52. Some taxes are discouraging investment.
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53. We have given some deep thought to the impact of taxes on dividends
and interest on our economy. We have weighed their pros and cons. And
we have decided on what is best for our country.
54. Mr Speaker, Sir, I am pleased to announce that I am completely
abolishing the solidarity tax on dividends and interest, effective 1st January
2012.
55. Tax on dividends is a double tax. No one should be made to pay tax
twice.
56. To tax interest income is to tax savings. And we do not want to
penalise savings.
57. As regards capital gains tax, we all know that it will be a difficult year
for the treasury. But our system of taxation on property is erratic and
sometimes excessive. Here also we have weighed the pros and cons. And I
have put the long-term interest of the country first.
58. I am pleased to announce that the capital gains tax on immovable
property is being completely abolished and it will apply with immediate
effect.
59. And I am not stopping here.
60. I am taking further the endeavour to reform our tax policy, to make it
more just.
61. We have analysed very carefully the ‘raison d’être’ of the municipal
tenant’s tax which is payable on commercial properties. It is an unfair tax. It
is not paid by landlords but by tenants – the very people who, by definition,
can least afford to pay. There is also a wide disparity in the tax charged
between each municipality. In some cases the tax can go up to 20 percent of
the rent which can be a very substantial amount. There is uneven collection
and wide tax evasion.
62. I am therefore pleased to announce the complete abolition of the
municipal tenant’s tax, effective 1st January 2012.
63. Government will compensate the municipalities for revenue foregone.
This will represent some 175 million rupees per year.
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64. We are also removing land transfer tax on the sale of immovable
property by financial institutions relating to debt recovery.
65. Furthermore, Mr Speaker, Sir, in view of the difficult financial
situation of some of our hotels, guest houses and tourist residences, they
will, for 2012, pay the environment protection fee only if they are profitable.
66. And the tax holiday of Freeport operators which should end in 2013
will now be carried forward indefinitely.
Enhancing Promotion Capacity
67. Mr Speaker, Sir, I talked earlier about the importance of demand to
investment decisions. To boost investment we must take our products to
where demand is. We will do so very aggressively on our traditional
markets in Europe and the USA.
68. And we will run more focused and more carefully thought-out
promotion campaigns in India, China, and Africa, where the potential is
unfolding at a rapid pace.
69. We will seek to maximise the synergies among public as well as
private promotion agencies.
70. Since I took office, there has been formal coordination between
promotion agencies in the public and private sectors. This will continue.
They will collectively seek new markets for our sugar, fruits and vegetables,
textiles, seafood, financial services, tourism, ICT/BPO, education, health
care and other exports.
71. We are empowering BOI, now with a young professional at its head,
to actively promote Mauritius to further develop the financial sector,
ICT/BPO and the education and medical hubs.
72. Enterprise Mauritius, also with an experienced new CEO, will take
care of promotion for manufactured goods and agricultural products.
73. We will organise an annual Mauritius Fair with the participation of
foreign buyers and local enterprises.
74. Besides promotion abroad, the BOI will also facilitate inward
investment. We want the BOI to offer a unique experience for investors.
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75. The incremental promotional budgets of these organisations will be put in
a National Resilience Fund.
76. Never before, Mr Speaker, Sir, has so much resources been made
available to our promotion agencies to put Mauritius on the global map.
Internationalising Our Economy
77. Mr Speaker, Sir, as we promote Mauritius abroad as a quality
destination for foreign direct investment, we must also internationalise our
economy.
78. Government has decided to appoint two roving ambassadors for
Africa and the Indian Ocean.
79. They will assist in widening the network of Double Taxation
Avoidance Agreements and Investment Promotion and Protection
Agreements with African states. We are planning to start with Algeria,
Angola, Burkina Faso, Tanzania, and South Sudan.
80. But we won’t get off the ground if we do not have better connectivity
to the region. This is crucial. Our modern airport must become the new hub
for the region, offering interconnection between Africa and the rest of the
World.
81. What is certain is that our country requires frequent flights to Africa.
This can only be viable under a hub concept, where passengers come to
Mauritius on transit to other destinations.
Investment Facilitation: Regaining the Momentum
82. Mr Speaker, Sir, business facilitation is another core determinant in
the investment equation.
83. The performance of Mauritius in many international rankings is a
source of pride and joy for the entire nation. We are ranked:
First out of 53 countries in Africa on the Mo Ibrahim Index of African
Governance.
First in Africa on the Fraser Institute’s Economic Freedom Index.
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And again first in Africa, in the World Bank's Ease of Doing Business
report, for the 4th year running, well ahead of 2nd place South Africa.
84. However, these indicators should not be ground for complacency.
Instead, they should be a source of inspiration to do even better.
85. To carry through our ambition to always be amongst the best, we
have recently set up a Joint Public-Private Sector Business Facilitation Task
Force. Its focus in 2012 will be to report on policies and actions to:
• remove remaining bottlenecks to investment and exports;
• simplify regulations; and
• save time for applicants.
86. Indeed, Mr Speaker, Sir, time is money says the old adage.
87. This is why Government has also invested in a new system to cut the
time for registering property from 15 days to 2 days. The new system will
be operational next week.
88. Recently, my colleagues have started to abolish numerous import
permits except where they are absolutely necessary.
89. We are also amending the law to enable Permanent Residence holders
to purchase an apartment. This should attract more foreign direct
investment (FDI) and boost the construction industry while making more
economic use of residential land.
Opening more Economic Space at Home
90. Mr Speaker, Sir, as we seek more economic space abroad, we will
also broaden the scope for investment at home.
91. Government will do so by disinvesting from some of its commercial
and industrial assets. Our aim is three-fold: to make better use of
Government assets to generate wealth and employment, raise revenue to
invest in new strategic sectors, and offer better facilities to the public.
92. Thus Government will disinvest from -
• The casinos,
• Domaine Les Pailles Properties,
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• Port-Louis Waterfront Retail Outlets,
• The Belle Mare Tourist Village,
• Lakepoint Complex, and
• Offer a management contract for the Citadel.
Reforming Institutions
93. Mr Speaker, Sir, in recent years we have made significant efforts to
reform our institutions. The payoff has matched up to our efforts. Our
international ranking on governance bears this out.
94. However, the world keeps changing and we must adapt.
95. And today, I am pleased to announce a series of institutional reforms
that will further consolidate our progress on governance, embed efficiency,
provide greater satisfaction to employees, and improve service delivery.
96. Experts from Singapore are currently reviewing the functioning of the
parastatals in the water and waste water sectors to improve delivery of
services. It is expected that substantial reforms and investment will follow
in the water sector.
97. Assistance from Singapore will also be used to review the
organisation and functioning of the Mauritius Tourism Promotion Authority.
98. We have begun the search for a specialised Private Financial
Institution to undertake the transformation of the DBM into a Micro, Small
and Medium Enterprise Bank.
99. The Ministry of Fisheries will explore how to involve a strategic
partner in the operations of the Albion Fisheries Research Centre.
100. Air Mauritius is conducting a strategic review to determine how best
to position itself as our country opens air access and seeks to be a hub
between Africa and the rest of the world. It is exploring the possibility to
expand its network of partnerships with other airlines.
101. The IFC is assisting Government in identifying a Strategic Partner to
develop Cargo Handling operations and transform Mauritius into a transshipment
hub.
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102. The new airport terminal is being built and operated under a
management contract with Aéroports de Paris.
103. The Ministry of Agriculture is merging cess-financed institutions to
save planters 287 million rupees a year.
104. In addition, the Office of Public Sector Governance has been set up
under the Prime Minister’s Office. It will, in priority, assist public
enterprises to improve governance, efficiency, services and cut out waste.
105. We are amending the Public Procurement Act to secure efficiency
gains, including obtaining expertise under Government to Government
agreements.
106. In the same vein, Government will consider bulk purchases to reduce
the cost of its procurement.
107. To improve access to public services, wherever possible,
Government will open its offices on Saturdays.
108. Government is really all about people. To ensure that the civil
service improves service delivery, we must focus on every public officer.
We must unleash their full potential and constantly upgrade their
knowledge, improve their skills and update their mindset.
109. A Civil Service College will begin operations by outsourcing courses
on motivation and leadership including problem-solving skills and planning.
110. The reforms I have just announced are essential if we are to raise our
people’s income levels and quality of life and avoid the middle income trap
which has ensnared many countries similar to Mauritius.
Consolidating Agriculture
111. Mr Speaker, Sir, business facilitation is an important leg of our
efforts to buttress the supply side of our economy. But each industry also
has its own specificities and concerns.
112. In the agriculture sector, the challenges are getting tougher every
day. For two consecutive years, output in the sugar sector has contracted.
Sugar cane planters need every support we can give. This year the total
budget for the Ministry of Agro-Industry and Food Security will surge to
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2.6 billion rupees, an increase of 700 million rupees compared to what
was spent last year.
113. Thus the Sugar Insurance Fund Board (SIFB) will grant a 70
percent discount on premiums due for 2011. This should reduce cost by
around 3,000 rupees per arpent.
114. As from next year, the SIFB will offer new policies that should bring
further drastic cuts in the premiums.
115. The use of better equipment and machinery will enhance the quality
of life and productivity of field workers, as well as add to our nation’s food
security. I am therefore pleased to announce a major incentive to the sector.
116. Henceforth Mr Speaker, Sir, all small planters and all small breeders
will obtain full VAT refund on agricultural machinery, equipment and tools
that they purchase in 2012. This will benefit some 23,000 sugar cane
planters, some 6,000 horticultural producers and some 5,000 animal
breeders, including cattle and pig breeders.
117. We are also maintaining the payment of an 80 percent advance to
sugar planters as soon as their crops are sent to the mill.
118. We are committing 310 million rupees for continuing the programme
of re-grouping small planters, de-rocking their lands and providing
irrigation wherever needed.
Ushering in a New Era of Agri-Technology and Bio Fuel
119. Mr Speaker, Sir, Government is ushering in a new era of agritechnology
and bio fuel. We are putting in place a framework to enable
production of sugar cane ethanol for blending with gasoline. This will add
value to our cane industry while at the same time bringing environmental
benefits and increasing self-sufficiency in energy.
120. As provided for in the historic deal made by the Prime Minister, the
stakeholders of the sugar industry will hold 35 percent of the equity of the
ethanol company. Government will facilitate the acquisition of the shares
through the Cane Democratisation Fund.
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Non-Sugar Agriculture: at the Service of Consumers
121. Mr Speaker, Sir, as regards non-sugar agriculture it holds the key to
food security and to lower prices for consumers.
122. The Agricultural Marketing Board will finance seed purchases so
that there can be greater supply of potatoes, onions and garlic to consumers.
123. I am also committing resources to improve market intelligence to
farmers. This will be crucial to avoid under-production which drives up
prices for consumers and over-production which depresses farmers’ income
and threatens future output.
124. I am increasing the budget for food security by about 50 percent to
150 million rupees. Of this amount, 22 million rupees will be direct
allocations to Rodrigues.
Non-Sugar Agriculture: Stimulating the Export Drive
125. Mr Speaker, Sir, non-sugar agriculture must also become more exportoriented.
It not only expands our GDP but provides us with the necessary
economies of scale to lower prices for our consumers.
126. But freight costs are holding back exports.
127. A new freight rebate scheme will therefore be introduced that will
involve a 25 percent cost-subsidy element to be shared equally between
producers and exporters.
128. At the same time, Mauritius must comply with the WTO trade
discipline. I am therefore allocating the necessary resources to train and
empower producers so they can export competitively, without subsidy, after
the WTO derogation lapses in 2015.
129. We are also extending the Fair Trade certification facilities to all
sectors of the economy, including producers of flowers, vegetables, fruits
and honey. The facilities will be for cooperatives and other federations.
Harnessing the Multiple Benefits of our Seas
130. Mr Speaker, Sir, investment in the fisheries sector has multiple
benefits. It improves the standard of living of fishermen, enhances our
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quality of life, improves the environment, widens the choice of consumers
and is of great value to the tourism industry.
131. Government will therefore invest in cutting edge technologies to
better harness the economic potential of our marine resources.
132. We are committing 10 million rupees to:
• replenish our lagoons by releasing at least 300,000 fish
fingerlings, and thousands of sea cucumbers in various areas,
including Bambou Virieux, Grand Gaube, Albion and Pointe aux
Sables; and
• create coral farms & reef sanctuaries.
133. But, Mr Speaker, Sir, this will only be possible if we have the total
support of the local communities and importantly if lagoon supervision can
be enhanced to a reasonable level.
134. An exchange programme will be put into place with Rodrigues
Fisheries Protection Service to share knowledge and skills.
135. Mr Speaker, Sir, to lower costs for all registered fishermen, they will
henceforth benefit from VAT refund on fishing gear, outboard and inboard
engines of up to 25 hp as well as VHF radios.
136. In the same vein, we are refunding VAT on semi-industrial fishing
vessels used by fishermen grouped in cooperatives.
137. We are also removing the 10 percent customs duty on refrigerated
vehicles. This will benefit fishermen, producers of other foodstuff as well as
consumers.
Financial Services: the Linchpin of our Economy
138. Mr Speaker, Sir, the financial services industry will continue to be
the linchpin of our economy. We have taken it to great heights of success.
But we will not rest on our laurels. We will provide strong support to the
financial services industry to weave new business links with the rest of the
world, comply fully with international norms and diversify its products.
139. The House has already passed legislation to promote Limited
Partnerships.
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140. We will soon set out the legal framework to promote:
i. Foundations;
ii. Private Occupational Pensions; and
iii. New concepts of Trusts.
141. These should significantly widen the spectrum of financial vehicles
in our jurisdiction.
142. The Government of Mauritius will continue to protect our country’s
best interest with regards to the India/Mauritius Double Taxation Avoidance
Agreement.
143. The ‘Code Civil Mauricien’ will be amended to provide for an
appropriate legal framework which would govern leasing of both
immovable and movable property, especially finance leasing.
144. As regards the insurance sector, we are abrogating legislation that
would have allowed local assets to be insured with an insurance company
based in a foreign country in 2013.
Tourism: Back to Basics
145. Mr Speaker, Sir, Mauritius has built a worldwide reputation for the
quality of its tourism based on living up to its brand and delivering
consistently on its brand promise - high standards, a pristine environment
and friendliness of its service.
146. We cannot afford to stray away from these basics.
147. And we will stick to these basics by re-adopting a three-pronged
strategy focused on Attractiveness, Visibility and Accessibility.
148. Exaggerated claims are being made by some hotel operators on the
internet that can undermine the reputation of the destination. To address
this, an official rating system will be developed by the Tourism Authority,
in collaboration with tour operators.
149. The Tourism Authority will also introduce voluntary Green
certification which hoteliers can proudly display to their guests thereby
gaining a marketing advantage.
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150. As for our environment, there is far too much litter around.
151. Mr Speaker, Sir, if we want to remain a top class destination our
citizens need to understand the importance of maintaining a pristine
environment all around the island.
I am allocating 25 million rupees to the Tourism Authority to resume its
comprehensive cleaning and embellishment programme.
152. And I am also allocating 13.5 million rupees for the MSPCA to
intensify the campaign to control the population of stray dogs. This
represents an increase of 10 million rupees over last year.
153. As regards visibility, we will intensify our promotion campaigns in
traditional markets and fully exploit the growing potential on new markets.
154. Medical tourism offers good prospects for attracting more visitors.
To encourage that sector I am restoring the VAT exemption on cosmetic
surgery.
Giving a Push to Emerging Sectors
155. Mr Speaker, Sir, I talked earlier about this Government’s success in
diversifying the economic base. A number of new sectors have emerged
and contributed in no small way to the resilience of our economy.
Government wants to facilitate further the development of these sectors.
156. ICT/BPO is one of them. Its weight in GDP is rising fast. Its growth
is one of the highest. And it offers tremendous employment opportunities
for our youth that must be fully tapped.
157. A second undersea fibre optic cable, LION 2 will be operational by
mid-2012, thus ensuring continuity of service at all times.
158. We are further opening connectivity to give long distance telecom
operators the right of access to connect to international gateways via our
two landing stations. There will thus be more competition. And businesses
will be able to connect to multiple service providers.
159. The ICT Act will be amended to allow the ICT Authority to
intervene more effectively to ensure competition and competitive pricing of
services. The measures I have just announced should go a long way to bring
down cost and therefore lower prices of internet.
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160. To develop human resources, Government will give occupation
permits to workers in the ICT/BPO earning more than 30,000 rupees.
Knowledge Centre of Excellence
161. Mr Speaker, Sir, for the knowledge centre of excellence, Government
has reviewed its procedures to speed up granting of student visas.
162. Foreign students will now be allowed to take up employment on a
part-time basis for up to 20 hours a week except in the security sector. This
should attract a greater number of foreign students to Mauritius.
163. And we will develop the capacity to cater for even more students.
SLDC will reserve land next to the Knowledge Triangle in Réduit for
campuses of renowned foreign tertiary education institutions.
Setting the Framework for New High Value-Added Industries
164. Mr Speaker, Sir, we are adding a completely new sector to our
economic landscape and in particular to our tourism industry. Commercial
marinas constitute a multi-billion dollar activity around the world. And
Mauritius has what it takes to harness the full potential of marinas and their
hinterland development to create jobs for our youth and more wealth for our
nation. Moreover, it will be a strong selling proposition for the promotion
of our tourism industry.
165. Government will set the regulatory framework to ensure international
standards and environmental norms are met. And BOI will actively
promote investment in this new sector.
166. Mr Speaker, Sir, Government is also introducing the legal framework
to encourage the setting up of a film industry to attract international film
producers of repute.
167. To stimulate the interest of foreign film makers, Government will
contribute 25 percent to agreed expenses incurred in Mauritius with respect
to the production of a film, as is the practice around the world.
168. It is hoped that this will give a major impetus to our film industry
and open significant scope for our local film producers as well as artists and
for unleashing talents, and increasing international visibility, besides
attracting FDI.
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169. BOI will be given the necessary mandate to accompany investors in
this new venture.
Matching Skills with the Requirements of the Economy
170. Mr Speaker, Sir, it is conventional wisdom that economic growth is
dependent on the level of skills. Higher skills also hold the key to
productivity, competitiveness, and the earning capacity of our workforce. In
this Budget we are making special efforts on training that is directly related
to the skills that the market is looking for.
171. And most of the new training will be aimed at our unemployed
youth. Mr Speaker, Sir, youth unemployment in Mauritius, like in other
countries is a cause for concern. We need to make our youth more
employable by encouraging relevant and practical pre-job training.
172. I am introducing an innovative measure – the Sponsored Pre-job
Training Initiative, which I hope will be used extensively by employers.
Their contributions to the HRDC will henceforth be available not only to
train existing employees but to prepare our youth for employment. The
following conditions will apply:
• the duration of training should not exceed 6 months,
• HRDC will pay 60 percent and the prospective employer 40
percent of the training costs, and
• a stipend of 6,000 rupees per month per trainee will be paid on
a 50:50 cost sharing basis.
173. In addition, delivery of all training schemes for the unemployed by
HRDC, NEF and MITD will be consolidated along the above lines.
174. It is expected that in 2012, some 8,000 unemployed will be covered
by these schemes.
175. The Commission for the Democratisation of the Economy will work
with relevant Ministries to implement a pilot programme to empower
vulnerable women through small scale farming projects.
176. The Central School of Nursing will be reorganised and expanded. Its
syllabus will be revamped to cater for local needs, in particular the medical
hub, and to prepare our students for work abroad.
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177. And Government will encourage the setting up of private nursing
schools.
178. The Medical Council Act will be amended to review the criteria for
registration of general practitioners and specialists.
179. In addition, we are committing 87 million rupees for the preregistration
training of some 375 qualified medical graduates from both
local and foreign universities.
180. Mr Speaker, Sir, we need to empower our youth to seize
opportunities in the tourism industry. High-pay jobs on cruise ships are one
of them.
181. Thus, training courses in hospitality on cruise ships will be run by the
Sir Gaëtan Duval Hotel School. This will prepare many of our young people
to take advantage of good employment opportunities.
182. In the same vein, courses on basic marine safety, fire fighting and
elementary first aid will be offered by the Mauritius Maritime Training
Academy. We expect some 500 young people to graduate from these
courses every year.
183. Finally, we need to ensure that workers can move to more attractive
jobs without worrying about accrued rights. To ensure that pensions and
associated benefits are fully portable we will make the necessary legal
amendments in the course of 2012.
Supporting SMEs
184. Mr Speaker, Sir, I spoke earlier about every sector of the economy
having its own specificities. The micro and SME sector is one of them.
185. In times of crisis they are the most vulnerable. And in a world of
rising competition they have to struggle to stay relevant and profitable. Yet
when they do succeed, they can make an irreplaceable contribution to the
economy.
186. SMEs produce 37 percent of our GDP, that is, some 120 billion
rupees worth of output. They give employment and provide a living to
250,000 men and women. And it is there that the culture of
entrepreneurship takes root, grows and democratises the economy.
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187. We know the fast onset of competition from emerging markets, the
crisis in Europe and the sluggish global GDP growth can be very testing
times for them. And their biggest frustration in facing up to these
challenges is access to finance.
188. A number of actions have been taken in the past to address the issue
of SME financing. The results have been limited at best. Admittedly it is a
tough issue to crack. But this Government will not let up.
189. Mr Speaker, Sir, on SME financing, we will break the mould.
190. Today we will support them where they are hurting the most – by
acting on the prohibitively high cost of credit. Interest rates of 14 percent
and even higher are dangerously stifling the drive of entrepreneurs. They are
threatening the growth, profitability and competitiveness of the SMEs. We
need to remedy the situation. Others have tried and failed. But we shall not
falter. And we will prevail.
191. After protracted negotiations, the banking sector has agreed to the
release of 3 billion rupees at an affordable interest rate of 3 percent above
the repo rate, that is 8.5 percent.
192. The main features of the scheme are as follows:
• New overdrafts and bank loans as well as renewal of existing
facilities will be made at the rate of 8.5 percent.
• All processing costs and related charges will be waived.
• Participating banks will collectively make available 3 billion
rupees for the next three years, that is, one billion rupees a
year.
• The Equity Fund will provide a guarantee instrument to offer
risk cover amounting to 35 percent of every loan and overdraft.
• Finally, banks will be allowed to claim the deduction from tax,
in respect of SME bad debts without the need to have recourse
to the courts.
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193. With this scheme we are doing things differently to give maximum
support to the SMEs. It is a revolutionary measure that addresses both
access to and cost of finance. More importantly it does not cover only new
operations but also benefits existing clients at renewal.
194. In addition, it covers both investment and working capital.
Furthermore, there will be no red-tape or inordinate delays and no need to
interface with Government.
195. Mr Speaker, Sir, the banks need to understand that the provision of
credit to SMEs at a fair rate is central to Government’s policy to ensure
equal opportunities for all.
196. I would like here to express my gratitude to the Prime Minister, the
Governor of the Bank of Mauritius and the commercial banks for their
support in achieving this revolutionary measure.
197. New loans to SMEs at the DBM will also be capped at the repo rate
plus 3 percent, that is 8.5 percent.
198. To further support the SMEs as well as other borrowers, Government
is abolishing the inscription fee leviable on registered loans.
199. Furthermore, I am removing registration duty which ranges from
1,000 rupees to 10,000 rupees on loans not exceeding 1 million rupees.
200. As a result charges will be reduced to cover only processing costs of
1,000 rupees.
201. These two measures will cost Government around 70 million rupees.
More Industrial Space at Lower Cost for SMEs
202. Mr Speaker, Sir, lack of industrial space is another major hindrance
to the development of the SME sector. It is also an environment hazard as
many micro entrepreneurs use residential and other non-industrial space for
their operations.
203. To remedy that situation Government is constructing an additional
175 units in industrial estates at five sites. They will be available to a wide
array of SMEs, including mechanics, carpenters, metal workers,
manufacturers and furniture makers.
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204. The size of the units will be at least 500 square feet.
205. I am also pleased to announce that Government will give a discount
of 50 percent on the rental in the first three years.
More Government Contracts to SMEs
206. Mr Speaker, Sir, we want to give SMEs a fair chance to work on
Government contracts.
207. We are amending the law to provide for at least two SMEs in the
short list of restricted bidding for procurement of up to 5 million rupees.
208. For low value procurement of up to 500,000 rupees per contract
subject to restricted bids, the Public Procurement Office will issue a
directive to include at least one SME in the shortlist.
209. The bidding documents will be simplified to encourage SMEs to
submit bids.
Democratising Entrepreneurship
210. Mr Speaker, Sir, I have also given deep thought on how to support
entrepreneurship generally. This is vital to democratisation.
211. ften the lack of income for the entrepreneur in the first year of
operation is the most serious inhibition to starting a business.
212. To encourage those that deserve help, we are granting them up to
20,000 rupees a month to cover their living expenses. They must have an
innovative proposal approved by the Mauritius Business Growth Scheme
(MBGS). This will be integrated into the assistance provided by MBGS for
business services and repaid on the same terms.
STEERING THE COUNTRY SAFELY THROUGH THE CRISIS
213. Mr Speaker, Sir, if there is one thing that has had a pervasive
influence on the preparation of the 2012 Budget, it is that the times call for
utmost vigilance. We must prepare for the worst and hope for the best. The
Budget we present today reflects this reality.
214. Going through the crisis, the responsibility of Government is clear.
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215. It must provide leadership in investment and job creation. It is a
responsibility we will not shirk.
216. We have therefore designed a Resilience Plan for the next three years
covering enterprises of all sizes, but with a special focus on SMEs,
infrastructure development and job creation. We do not want to be caught
short if the crisis intensifies. The Resilience Plan is made up of four
strategies.
Strategy One: Supporting Enterprises at the Microeconomic Level
217. Mr Speaker, Sir, Strategy One is to support enterprises at the
microeconomic level. To this end, I am committing 7.3 billion rupees to a
National Resilience Fund (NRF).
218. This is more than double the amount available to the Business
Growth Fund.
219. Let me be absolutely clear on how the NRF will be used.
• It is a contingency fund.
• It will be used to strengthen the resilience of the economy.
• If matters get worse it will be used as a rainy day fund to shore
up public finances.
• Money that is not needed will not be spent.
• And enterprises that will be supported will have to show
concrete efforts at building permanent resilience.
220. I am therefore pleased to announce that resources from the NRF will
be used to broaden the reach of the Leasing for Equipment Modernisation
Schemes (LEMS) and to improve them. We are maintaining the LEMS
because they have proved to be very successful instruments to support
enterprises. To this day, more than 300 enterprises have benefited, 56
percent of which are SMEs.
221. I am therefore extending all facilities under the LEMS to December
2014.
222. And Mr Speaker, Sir, because of its successful record, I am also
extending LEMS to all industries, including traders, as long as their turnover
does not exceed 50 million rupees.
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223. The 7.3 billion rupees that Government is committing will also be
used to significantly increase support under the various on-going schemes,
namely:
• The Guarantee for Import Loans,
• The Factoring Scheme for SMEs, and
• The Planters Harvest Scheme for small service providers.
224. We are also introducing a guarantee scheme under the NRF to enable
SMEs to get insurance cover on their exports as well as on local sales.
225. In all Mr Speaker, Sir, the NRF will be used for the following:
i. The LEMS
ii. SME industrial parks
iii. Overseas promotion campaigns
iv. Youth employment programme
v. Subsidised airfare to Rodrigues
vi. Transformation of DBM
vii. Participation of SMEs in fairs
viii. Factoring scheme for SMEs
ix. SME financing guarantee scheme
x. Mauritius Business Growth Scheme
xi. Film Incentive Framework
xii. Equity Fund to support corporate restructuring
Strategy Two: More Government Spending on Infrastructure
226. Mr Speaker, Sir, Strategy Two will be to use Government spending
on infrastructure as a lever to increase investment, employment and growth
during the crisis.
227. We plan to inject next year 21.2 billion rupees in the economy for
key infrastructure projects. This should give a major boost to the
construction industry.
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228. The pursuit of the Harbour Bridge and Métro léger projects will
provide a significant stimulus to riding out the crisis.
229. We are keeping 1.5 billion rupees of the planned amount for projects
approved and not yet ready for execution. We are urging the various
ministries to speed up their implementation so as to prop up investment. The
resources will be disbursed on a first-come-first-served basis.
Strategy Three: Financial System Stability
230. Mr Speaker, Sir, Strategy Three of the National Resilience Plan is to
further build up the stability of our financial system.
231. Since 2008, global events have taught us that we can never be careful
enough. Financial stability is an area where being ahead of the curve can
pay hefty dividends.
232. In that regard, we have requested the IMF to make recommendations
on how to ensure a well-coordinated watch on the stability of our financial
system.
Strategy Four: Coherent Macroeconomic Response
233. Mr Speaker, Sir, Strategy Four will focus on macroeconomic policies.
When the economy is buffeted by external shocks, coherence in fiscal and
monetary policies is vital. I am thus setting up, in my Ministry, the
necessary mechanism for determining, with the Bank of Mauritius, the
accepted range of the rate of inflation. The Monetary Policy Committee
will then decide on how to keep inflation within that agreed range.
SHARING PROSPERITY WITH ALL
234. Mr Speaker, Sir, one of the key metrics of our success in achieving
Growth for the Greater Good will be the narrowing of the gap between the
rich and the poor.
235. Too many people are still not enjoying a fair share of the prosperity
we have been creating.
236. Government spending on transfers, housing, health care and
education, in other words on social spending, can make a big impact on
sharing prosperity. As a compassionate Government this is where our focus
has always been. Budget 2012 will take this commitment even further.
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237. We have set the ball rolling on wage compensation. Government
granted an increase of between 6.6 percent and 11.5 percent to workers in
the low wage bracket.
238. Beneficiaries of the Basic Retirement Pension (BRP) will also be
compensated for the increase in cost of living, as from January 2012. The
monthly BRP will go up to 3,350 rupees for pensioners aged 60 to 89 years,
to 9,975 rupees for those aged 90 to 99 years and to 11,320 rupees per
month for centenarians.
239. But this is not the last station on the way to sharing prosperity with
all.
240. Mr Speaker, Sir, we would not be walking the talk on sharing
prosperity if we do not address the issue of exclusion.
241. We all know people who have worked hard, yet at the age of 60 have
very little to show for it.
242. They have lived all their lives in the informal sector.
243. Thousands of our citizens, in particular part time and informal
workers, household workers, gardeners, drivers, and casual agricultural
workers do not participate in the benefits of the National Pension Fund.
Many of these men and women take care of us in our daily life – provide us
our meals, and take care of our children and our homes.
244. Today I believe it is our turn to take care of them. Today it is our turn
to tell these men and women that we feel for them.
245. Mr Speaker, Sir, there are a couple of barriers that stand between
them and entitlement to the benefits of the National Pension Fund.
246. Often, employers avoid registering their household employees
because of the time and trouble that it involves and the administrative
burden they have to face.
247. Often also, the employees themselves avoid registration so as not to
pay their share of the contribution to the National Pension Fund (NPF) and
Transitional Unemployment Benefit (TUB).
248. Mr Speaker, Sir, today we will remove these barriers.
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249. I am pleased to announce that for all those earning up to 3,000 rupees
a month, Government will now pay their share of the contribution to the
National Pension Fund as well as pay their share of the Transitional
Unemployment Benefit.
250. This effectively adds another 4 percent to their remuneration. On a
salary of 3,000 rupees it amounts to 120 rupees per month which we will
pay on their behalf into their NPF and TUB accounts. This will provide
more pension for them in the future and is in addition to the hefty increase
of 330 rupees granted during the salary compensation exercise.
251. Furthermore, the Mauritius Revenue Authority (MRA) will adapt its
annual income tax return to enable registration of the employee and
payment of the annual NPF contribution in one go by employers, without
additional interest or penalty.
252. MRA will issue an annual income statement to each employee.
253. We will also professionalise housekeeping work. To this end the
National Empowerment Fund (NEF) in collaboration with NGOs, will train
some 500 domestic workers next year, and provide them with a certificate.
Decent Housing Units for Every Family
254. Mr Speaker, Sir, another most conspicuous manifestation of poverty
in our country is the number of people who live in poor housing conditions -
men, women, children and the elderly.
255. Many of the housing estates are fast becoming no man’s land. There
is a lack of regulation and discipline, poor sanitary facilities, poor water
reticulation and wastewater disposal systems, to name but a few. Common
areas are often in a state of dilapidation.
256. If we do not act now, we can imagine what the living conditions for
these families will be like in the future. And this is not where we want to
take our country and our society.
257. What these families need, is a clean, safe and healthy living
environment.
258. For these families too, we are today taking meaningful action that
will make a big difference to their life.
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259. We are committing the necessary resources in 2012 to ensure that all
the 44 NHDC housing estates have a functional syndic. Currently only 9 of
them do.
260. For 2012 Government will contribute 200 rupees per housing unit,
per month, that is 2,400 rupees per year per housing unit, to set up a syndic
in all NHDC estates, except for the three middle-income ones. The
residents will appoint their own syndic and will be encouraged to
supplement Government’s contribution. The main role of the syndic will be
to ensure coordination, discipline, and maintain common areas in a clean
and orderly state.
261. This will considerably improve the daily life of some 6,150 families.
262. In addition, we are committing resources to:
• rehabilitate the wastewater disposal system of housing estates;
• rehabilitate water supply on 15 NHDC estates; and
• carry out waterproofing works in housing estates at Rose Belle and
Palma.
263. Mr Speaker, Sir, Government is also giving a major boost to the
construction of more housing units. We will do so with an innovative new
vehicle that will mobilise substantial amounts of financing for housing
development.
We will encourage the setting up of not-for-profit Housing Development
Trusts.
264. The main features of this new scheme are as follows:
• The Trusts will mobilise resources from the CSR fund of
companies to meet one third of the costs.
• Government will bear another one third of the costs and will
provide for the offsite infrastructure, if the project is within an
agreed distance from existing infrastructure.
• Any land may be contributed for construction by these Trusts, as
would any land acquired under the Prime Minister’s deal with the
sugar sector.
• Preference will be given to smaller sites that promote social
inclusion.
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• To lower costs to purchasers, the social housing projects of these
Trusts will not be subject to VAT.
• They will also be exempted from the payment of land conversion
tax, registration duty and land transfer tax.
• And the Trusts will be responsible for on-going management of
the estates.
265. Mr Speaker, Sir, we can build houses. But it serves no purpose if
they are not affordable to low-income families. We know that most of these
families would find it impossible to make ends meet if they have to pay the
full price. We want to give them maximum assistance.
266. Families earning less than 10,000 rupees will thus pay only the final
third of the cost. This means that, for example, for a house that costs around
900,000 rupees, a family will pay only 300,000 rupees.
267. This benefit will only go to families who will agree to enter into a
comprehensive social contract covering civic responsibilities, employability,
education of children and family values.
268. To kick start this project, SLDC will provide 4 arpents of land at
Dagotière for the construction of 50 units.
269. Mr Speaker, Sir, in addition the NHDC has identified 160 arpents
under the Prime Minister’s deal with the sugar industry. This will enable
the NHDC to accelerate its own programme to construct 1,000 units.
270. For low income families, earning less than 10,000 rupees per month,
the same conditions will apply as for the Housing Development Trusts.
271. Mr Speaker, Sir, I am pleased to announce that we are now
committing 1.5 billion rupees to the Social Housing Development Fund.
272. Furthermore, NEF will expand its scheme for concrete cum CIS
houses, constructed on beneficiaries’ own land, to 600 units including 400
in Rodrigues.
273. And emergency housing under the CIS scheme will add another 600
units.
274. In our housing policy, we are not forgetting the Sans Domicile Fixe.
For them, NEF will create a shelter at Abattoir Road, Port Louis.
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275. Mr Speaker, Sir, to assist middle-income earners, and give a further
spur to construction, we are removing land transfer tax for the next two
years on the construction of housing estates comprising at least 5 units, at a
maximum price of 2.5 million rupees each.
276. First-time buyers will be fully exempted from registration duty when
purchasing a home under that scheme.
277. Finally, there are some 2,000 families in ex-CHA housing estates
who cannot benefit from the facility given to them for the purchase of state
land, on which their houses stand, because they simply do not have the
means. Mr Speaker, Sir, these lands will now be granted free of charge.
Government will waive payment of 2,000 rupees representing the cost of
the land.
Health is Wealth
278. Mr Speaker, Sir, I will now elaborate on our policies on health care.
279. Health is wealth. Health is also happiness.
280. That is why we will deepen our commitment to take our country to a
modern, cutting edge health care system.
281. Our very first action will be for patients who need to go overseas for
treatment but cannot meet the costs. To be sick is already distressing. Not
to be able to afford the treatment is a personal tragedy.
282. Mr Speaker, Sir, I am therefore more than doubling the maximum
grant under the Overseas Treatment Scheme from 200,000 rupees to
500,000 rupees. The air ticket for one person accompanying the patient will
be on the same conditions as before but will be delivered by the Ministry of
Health as a one-stop service.
283. In that same spirit of relieving people of their pains and tribulations,
we are increasing the amount allocated to the rehabilitation of alcoholics
and drug addicts by 70 percent to 51 million rupees. This will reinforce our
capacity to combat drug abuse, alcoholism and addiction to tobacco. As we
spend more on cure and rehabilitation, we also need to take action to
eliminate the abuse of alcohol and tobacco smoking.
284. To that end, we are increasing excise duty rates as follows:
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• on fruit wine and made wine, to 25.20 rupees per litre and 54
rupees per litre, respectively;
• on other alcoholic drinks by between 10 to 30 percent; and
• on cigarettes and cigars by 15 percent.
285. We are, on the other hand, removing VAT on gums that are used as
substitute for smoking.
286. Government will also spend more on prevention of Non-
Communicable Diseases (NCDs), including new tobacco cessation clinics.
287. In addition, we are including expenditure on campaigns for the
prevention of NCDs as a fourth priority in the CSR guidelines, along with
alleviation of absolute poverty, social housing and welfare of children from
vulnerable groups.
288. Mr Speaker, Sir, Government will also recruit 300 nurses to improve
care.
289. Finally, I am pleased to announce yet another innovative measure –
this time to broaden access to private medical care.
290. Private health insurance is growing but is still beyond the means of
many in Mauritius.
291. Yet private health insurance has many benefits:
• Patients can choose their medical practitioners and health
institutions.
• It will relieve pressure on our hospitals, especially for surgical
procedures; and
• It will contribute to the development of our medical hub.
292. Mr Speaker, Sir, all employees benefit from contributions of their
employers to the National Savings Fund (NSF). Of these, a great many
contribute more than 300 rupees per month. I am today allowing employees
to use their monthly NSF contributions as payment of private health
insurance.
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293. Employees will now have the possibility to opt for private medical
care for themselves and their family. Anyone wishing to do so should
inform the NSF to redirect their future monthly contributions to the
insurance company of their choice.
Shaping the Education, Training and Skilling for the 21st Century
294. Mr Speaker, Sir, education and skills are the bedrock of
competitiveness in the 21st century - a prime mover of our development
ambitions - crucial to sharing prosperity with all.
295. The best future for our children resides in the best approach to
education.
296. I will start with the 3,000 children who need special education. I am
today increasing the grant in aid to Special Education Needs schools by 25
percent.
297. Mr Speaker, Sir, the foundation years of schooling are the most vital.
It is in those years that children develop the aptitudes to perform well in
future years. We are therefore extending the pre-primary education grant so
far applicable to children aged 4 to also cover 3 year olds. This means that
some 16,000 more children will benefit from the grant. This measure will
also contribute to our policy of empowering women to join the workforce.
298. In the same spirit, we are offering access to ‘crèches’ to some 2,000
children in Mauritius and Rodrigues - children whose parents could not
otherwise afford it – giving them the same opportunity in life as for well-off
children. To this end 1,500 rupees per month for a child up to 3 years old
will be offered to poor families accompanied by a social contract with the
NEF.
299. And we have another path-breaking measure to give our children a
strong foot-hold in life. Companies will now be able to use their CSR fund,
to provide free of charge, crèche and kindergarten facilities for their
employees earning less than 12,000 rupees per month.
300. NEF will continue to assist NGOs to set up children nurseries.
301. Mr Speaker, Sir, I am also pleased to announce that child-minding
services will now be made available after school hours, in public preprimary
and primary schools, against a reasonable fee.
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302. And we must also attend to children who are abused. Government is
recruiting 20 additional support officers to reinforce the National Children’s
Council and the Child Development Unit to follow up more effectively on
such cases. Six new children shelters will be opened across the country in
2012.
303. All these actions, Mr Speaker, Sir, add up to strong support not only
to our upcoming generation but also to empower women to join the labour
force.
304. Mr Speaker, Sir, if we want to achieve better sharing of prosperity,
we will need to bridge the gap between low and high performers in our
schools. Poor performance at school is the biggest barrier to moving up the
social strata- in other words to social inclusion.
305. The high percentage of failure at CPE must continue to be addressed.
These children need our attention. We are therefore putting in place a
Summer School Programme. Let me outline how it will work.
• The focus will be on schools where less than half the students have
passed the CPE.
• It will provide targeted supplementary education in reading,
writing and arithmetic for students who have not achieved the
required proficiency.
• The children will be taught up to 3 days a week.
• They will be provided with a hot meal.
• Children may choose to attend a different school than their own.
• Preferably children will be taught by different teachers.
306. Mr Speaker, Sir, I am also pleased to announce the extension of the
pre-vocational education programme from 3 years to 4 years that is up to the
age of 16.
307. Mr Speaker, Sir, we have all been concerned about the state of some
of our school buildings. I am allocating today 500,000 rupees to each and
every Government school in Mauritius and Rodrigues, apart from the very
smallest, for renovation and upgrading. A Committee of parents and
teachers will decide on what priorities this money will be spent on.
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308. Mr Speaker, Sir, students, members of Parent Teachers Associations
and other stakeholders should thus be able to operate in a far more
conducive school environment.
309. To maximise the use of our school infrastructure, the Open School
Programme will be extended. In the afternoon, at weekends and during
vacation, the community at large must be able to use these facilities for
learning, social, cultural and sports activities.
310. Finally, the National Institute for Civic Education at the Prime
Minister’s Office will pilot a programme for 200 young people. The aim is
to promote nation building and inculcate pride in the nation with particular
emphasis on our common purpose, sense of unity, patriotism, civic
responsibility and common national identity.
Social Register of Mauritius
311. Mr Speaker, Sir, this Government never shrinks from lending a
helping hand to the most disadvantaged. However, some social programmes
will be heavy on the exchequer, in particular, our housing programmes, and
the provision of crèches to the poorest. They will have to be well
administered and give the desired results.
312. As is the practice all over the world, Government needs to be able to
identify the needs of the poor and measure the success of programmes
offered. The Social Register of Mauritius (SRM) will be a powerful tool to
maximise policy effectiveness in the fight against poverty and will be used
in the application of the housing schemes and crèches.
Sports and Leisure
313. Mr Speaker, Sir, sports is having an increasingly positive impact on
our culture, leisure time, health, economy and national unity.
314. Many of our youth are showing their potential and we know there are
more talents to unleash.
315. The Trust Fund for Excellence in Sports is doing an excellent job in
training and empowering our young sports men and women. So far there are
80 beneficiaries. Government is extending the programme to 250 athletes
next year and the disciplines covered will increase from 8 to 12.
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316. Mr Speaker, Sir, we are not all made equal but we all have unique
qualities and talents. I strongly believe that it is the role of Government to
bring out the greatness that we all have within us.
317. With a view to nurturing the talents of our young sports men and
women, I am pleased to allocate 4.5 million rupees for awarding six
scholarships annually to our promising youth to train overseas. The
scholarship will cover living expenses and coaching fees abroad and will be
administered by the Trust Fund for Excellence in Sports.
318. In total, Mr Speaker, Sir, the budgetary allocation to the Trust Fund
for Excellence in Sports will jump from 3.8 million rupees to 12.5 million
rupees in 2012.
319. For more leisure and sport opportunities Government will set up the
Mauritius Schools Football League which will organise saturday inter-school
tournaments among secondary schools.
320. Mr Speaker, Sir, as an incentive for the private sector to employ high
level athletes approved by the Ministry, companies employing them will
now be allowed to pay 50 percent of their wages through their CSR fund.
The aim is to compensate companies who release these staff for training.
Bolstering the Justice System
321. Mr Speaker, Sir, our justice system is a pillar of our development and
it is at the base of our country’s success. It is one of the strengths that set
Mauritius apart from many other countries. It is a strength that we must
never lose. As our society evolves, our justice system must follow. Today
we are putting a special focus on enhancing its efficiency, accessibility and
ability to deliver justice in a cost-effective manner.
322. The fall in the crime rate has vindicated Government’s efforts to
improve our justice system under the impetus of the Prime Minister himself.
323. But access to justice must be fair and equitable. There should not be
‘justice à deux vitesses’. The poor should never be denied access because
they do not have the means to meet lawyer’s fees. We are therefore raising
the maximum monthly income limit for entitlement to legal aid from 5,000
rupees to 10,000 rupees. The other criteria will also be doubled.
324. Mr Speaker, Sir, our jails are over-crowded. Some thirty percent of
these inmates are on remand. To remedy this, the Bail Act will be amended
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shortly to allow for the use of electronic bracelets. Some 1,800 of these
bracelets will be purchased along with the accompanying ICT network.
325. A Victims Assistance scheme will be set up for child victims and
victims of sexual offences.
326. Mr Speaker, Sir, justice delayed is justice denied. To speed up
decisions on appeal cases, Government is consolidating twelve Appeal
Tribunals into three, namely an Environment and Land Use Appeal
Tribunal, a Revenue and Valuation Appeal Tribunal and a Regulator

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