GRENADA WEEKLY ACTIVITY REPORT: OCTOBER 14 - 20, 2007

UNCLAS GRENADA 000151

SIPDIS

SIPDIS

E.O. 12958: N/A
TAGS: EFIN EAGR PGOV GJ
SUBJECT: GRENADA WEEKLY ACTIVITY REPORT: OCTOBER 14 - 20, 2007



1. (U) Embassy Grenada's weekly activity report (GWAR) provides
a little detail about events of interest that do not merit
longer reporting at this time.


2. (U) Begin GWAR text:


A. Grenada's Private Sector Warms to VAT
Private sector entities are expressing confidence in the
eventual implementation of value added tax (VAT) to replace
Grenada's current schedule of taxes. VAT was originally
scheduled to go into effect on October 1, 2007. The political
opposition took advantage of the extended period between the
2006 announcement and the planned 2007 implementation to sow
confusion, hinting that VAT would not replace but be added to
the current taxes and that it would result in double taxation.
The government's public education program appears to be working
with the business sector. Further work to educate individuals
should help as well. Note: VAT was removed after Hurricane Ivan
devastated Grenada in 2004 rather than just suspended, in what
was perhaps short-sighted political grandstanding by the ruling
party.


B. Food Prices Rise
Milk (milk powder and canned as Grenada has no dairy industry)
and flour prices, both on the list of staple food items with
prices controlled by the government, are being allowed to rise.
Already squeezed by high prices of food and other consumer
goods, many imported from Trinidad, the U.S., Canada, and the
UK, Grenadians grumble about the high cost of living, but seem
resigned to continued bad news.

A large number of Grenadian farmers walked away from their land
after hurricanes Ivan (2004) and Emily (2005) swept through,
destroying most vegetation on the island. Production has not
recovered to pre-2004 levels. The government in August of this
year called on Grenadians to plant fruit trees and vegetable
gardens to reduce their dependence on imported items, and lower
their food bills.


C. October 19th Anniversary Observed
October 19 is not a public holiday, but relatives of those who
died in the bloody end to Grenada's 1979-1983 revolution, as
well as others who suffered at the hands of the People's
Revolutionary Government (PRG) and Army (PRA) during their rule,
observed a day of mourning. Prayer services were held during
the day, culminating in an evening candlelight vigil at Fort
George where former Prime Minister Maurice Bishop, members of
his cabinet, and an unknown number of Grenadians were killed or
injured.

Calls for the return of the bodies of Bishop et al - some
directed at the United States - to their families were repeated.

MCISAAC