Grenada's leading trade union body the Trade Union Council (TUC) is asking the Keith Mitchell administration to suspend the implementation of its five per cent Reconstruction Tax. Last year's Hurricane Ivan had a catastrophic effect on the island's economy. The cost of the damage caused by Ivan has been put at EC$2.4 billion (200 per cent of Grenada's 2003 nominal GDP). Almost 28,000 houses were damaged of which 10,000 were irreparably so. Ten months later, during which Grenada was undergoing a recovery, Emily struck the island leaving in its wake damages estimated at EC$140 million (more than 12 per cent of Grenada's 2004 nominal GDP). Grenada now has to ask its creditors for debt relief while it undergoes reconstruction and resuscitation of the country's civic amenities and infrastructure. In an effort to address its own problems, the government is looking to impose a five per cent Reconstruction tax on its citizens in order to get the country back on its feet. Acting President of the TUC Madonna Harford is of the view that following the resultant increase in the cost of living, to now impose an additional levy is too heavy a burden for the Grenadians to bear. She said the increase in gas prices has had a multiplying effect on the pockets of workers and the population in general. According to Harford, many of the workers the TUC represents are not opposed to making a contribution to the reconstruction of the country. However, she stressed that with the increase in goods and services workers would find it very difficult to contribute to the fund since salaries have remained stagnant. She added that in light of the magnitude of the devastation to the island by both hurricanes last year, the TUC made several recommendations to the government on raising the money for the rebuilding of the country. One suggestion put forward by Rae Roberts, the TUC's General Secretary would indeed see the imposition of a levy, but one done incrementally. This would see one per cent in the first year, and two per cent in each of the last two years. He also recommended that the private business sector should contribute an additional half-a-per cent on corporate profits for a period of three years. Roberts added that the TUC had also urged the government to impose a two per cent tax to be collected at the port on luxury cars and vans for a three-year period. The tourism sector should also be tapped, with visitors to the island making a contribution of US$2.00 to assist in the rebuilding of hotels and other tourist attractions. Roberts claims that that these recommendations were sent to the Ministry of Finance but that the TUC did not even receive an acknowledgement that they were received. The TUC is also calling on the government to hold dialogue with the "social partners" in the country on the way forward. TUC Treasurer Elliot Bishop, who heads the Commercial and Industrial Workers Union (CIWU), warned the government that immediate dialogue is needed before implementation of the 5 per cent reconstruction tax. Bishop said if this is not done there could be a "crisis situation" in the country. Reprinted from jamaicaobserver.com