Government

A new performance audit report is warning that the Government’s public-service pension system has accumulated over EC $200 million in pension-related liabilities. The report, titled The Government’s Pensions, was presented to the Legislative Assembly on June 30, 2026, and examined the operations of the Pensions Unit within the Office of the Deputy Governor. The Auditor-General found that while government reports annual pension and gratuity payments ranging between EC$10 million and EC$16 million, the actual long-term obligation to current and future pensioners is estimated at more than EC$200 million. The report noted that these costs are not fully reflected in Government’s published financial statements, which continue to operate on a cash-basis accounting system described as outdated and inadequate for capturing the true financial obligation. As this is the present-value estimate (discounted at 5% per year), the report noted that the gross amount of future pension-benefits to current pensioners is a far greater figure which means new pensioners, at higher average salaries and allowances, will continue to add to the Government’s total liabilities for these future pension-related obligations. “We have identified several deficiencies in operations and a large backlog of pension account reconciliations with and reimbursements to other countries over the past 30 years. We found that government’s pensions are non-contributory. The main factor leading to high recurring costs to the public finances is that the past and present employees who will receive 100% of the pension benefits make no contributions,” Ms. Meade reported. She explains that the government as the employer also makes no periodic contributions towards funding of future benefits. It pays 100% of the current pensions as they are disbursed. This arrangement contrasts sharply with the Social Security Fund which operates on a contributory model both for employees and employers, including the Government of Montserrat Public Employees. Ms. Meade noted that a recent decision by cabinet is to “transition to a defined contribution plan. Another approval recently by cabinet is to transfer the government’s pension to the administration of the Social Security Fund in late 2025. This should have taken effect during this fiscal year; however, discussions are still ongoing and implementation is deferred.” She stated that “the audit found that legislators’ pensions are the most generous category. Members of the Legislative Assembly become eligible for a special category of pension benefit after just six years of service as per the Service Act. Generally, we observe that across the types of public pensions, the legislator’s ratio of pension benefit to salary is the highest of all categories of pensions, having regard to the minimum of years of service required.” The report called for the introduction of employee contributions towards government pensions as the most important step towards long-term sustainability. It suggested that such contributions be introduced gradually, similar to previous reforms undertaken by the Social Security Fund between 2022 and 2026, to reduce the impact on employees. The report also recommended that pension contributions be considered for tax deductions, similar to existing deductions available for Social Security contributions. The Auditor-General further recommended improvements to pension budgeting, noting that government should use more accurate forecasting methods to account for increasing numbers of pensioners and periodic pension increases.

The Physical Planning Unit (PPU) has warned that planning permission must be obtained before development or construction can place on the island. The PPU says permission must first come from the Planning and Development Authority, PDA, before any works could begin. The unit says it has observed an increasing number of persons and agencies undertaking construction without the required planning approval. It cautions that this trend is a matter of serious concern as unauthorized development can compromise public safety, environmental protection, and the orderly development of Montserrat. Persons who have already received planning approval are required to notify the Physical Planning Unit before commencing construction. This enables the unit to schedule the necessary inspections and ensure that the development proceeds in accordance with the approved plans and conditions.  The PPU warns that commencing development without planning permission constitutes a breach of the Physical Planning Act, and that it will take appropriate enforcement action against unauthorized developments. Such action may include stop notices requiring work to cease immediately, enforcement notices requiring the removal, alteration, or correction of unauthorized works, and prosecution and other penalties provided under the Physical Planning Act. Failure to comply with these requirements may result in significant delays, additional costs, fines, or legal proceedings. The Physical Planning Unit says it is committed to promoting safe, sustainable, and orderly development throughout Montserrat. It therefore asks all property owners, developers, contractors, and public agencies to submit the necessary planning applications and obtain approval before starting any construction project. By working together and following the proper planning process, the Physical Planning Unit says it can ensure that development benefits the entire community while protecting the environment and infrastructure.

The Government of Montserrat is extending its sincere appreciation to stakeholders who participated in the Sustainable Development Strategy (SDS) and National Development Plan (NDP) consultation workshops. The consultation were held from 13–17 July. Over the five-day period, 111 stakeholders contributed their knowledge, expertise, and perspectives to help shape Montserrat’s long-term development agenda. Participants represented a broad cross-section of society, including public servants, private sector organisations, youth, civil society organisations, and members of the Montserratian diaspora from the United Kingdom, the United States, the Caribbean, Canada, and the Middle East. Stakeholders participated in structured workshops designed to review and validate the SDS Planning Framework and the NDP Results Logic, both of which will provide the foundation for the first draft of these national planning documents. Following completion of the draft documents, the Government will launch an extensive programme of public engagement to ensure all residents and stakeholders have an opportunity to review and provide feedback. The draft Strategy and Plan will be made available through online platforms and will be supported by island-wide public consultations, community meetings, and radio programmes designed to encourage broad national participation. The Government encourages all residents and stakeholders to continue contributing to the development of these important national planning documents. Comments and suggestions may be submitted through the Policy and Planning Division, Cabinet Secretariat, or by email to sempled@gov.ms or andrevhenry@me.com. The Government of Montserrat is thanking individuals and organisations that contributed to the important exercise. It says the collaborative spirit demonstrated throughout the consultation process reflects a shared commitment to building a resilient, inclusive, and prosperous Montserrat for current and future generations.

The Government of Montserrat, through the Montserrat Customs and Revenue Services (MCRS), continues to strengthen collaboration with key stakeholders in the island’s import and trade sector following a productive meeting with customs brokers and shipping agents held on Tuesday, July 28, 2026, at the Brades Arts and Education Center. The meeting was hosted by Comptroller of Customs, Mr. Derrick Lee, and formed part of MCRS’ ongoing commitment to improving customs administration, enhancing compliance, and preparing the island for the implementation of the Harmonized System (HS) 2028, which will come into effect across CARICOM on January 1, 2028. Joining Mr. Lee on the discussion panel were Mr. Peter W. A. White, Director General of the Montserrat Customs and Revenue Services; Mr. George Green, Superintendent of the Montserrat Port Authority; and Ms. Juliana Sweeney who is the Deputy Comptroller of the Montserrat Customs and Revenue Services. The session provided brokers and shipping agents with important updates on the transition to HS 2028 while reinforcing the critical role they play in maintaining efficient, transparent and compliant import processes. Discussions focused on improving manifest accuracy, ensuring proper tariff classifications, verifying consignee information, confirming exemption eligibility, and enhancing the quality of customs declarations submitted through the ASYCUDA system. Director General Mr. Peter W. A. White emphasized that the successful implementation of HS 2028 will require strong partnerships between Customs, brokers, shipping agents and the wider business community. Participants were encouraged to remain engaged throughout the consultation, training and system update process leading to the 2028 implementation. Comptroller of Customs Mr. Derrick Lee thanked attendees for their participation and stressed that ongoing dialogue between Customs and industry stakeholders is essential to facilitating legitimate trade while protecting government revenue and maintaining international standards. The meeting concluded with an interactive question-and-answer session, allowing participants to raise concerns, seek clarification and contribute recommendations aimed at improving customs operations on Montserrat. The expected outcomes include greater accuracy in customs submissions, stronger compliance, reduced processing delays, increased accountability, and a more efficient importation process for all stakeholders. As Montserrat continues to modernize its customs and revenue systems, the Government remains committed to working closely with the private sector to build a more efficient, resilient and internationally competitive trade environment.

Montserrat’s leader of government business, Premier, the Honourable Reuben T. Meade has reiterated the need for internal investments to drive economic development on island. Premier Meade was at the time discussing the economic state of the island with former Caribbean Development Bank (CDB) president Hygenius “Gene” Leon, another economist, on the “what’s on your mind” radio programme. Mr Meade used the introduction of the government’s micro business finance scheme as an example where a $2-million dollar pot of money allocated to the scheme was fully utilized. He gave the breakdown of the funds assigned as Fisheries – $549,000 Agriculture/farming – $451,000 Hospitality and tourism – $304,000 Consultancy professional services – $186,000 Retail and distribution – $147,000 Other – $120,000 Agri-processing – $120,000 Construction and trade – $50,000 Information technology -$50,000 Health and wellness – 13,000 Printing, media and publishing – $9,500 Premier Meade stated that the Government was able to secure an additional $2,000,000. “Hence my meeting at the ECCB. I was able to convince them that we needed more money. And I was in a position to obtain $2.1 million, of which $2,000,000, approximately 1.9 will go into the micro and small business scheme or the small business loan scheme. Mr. Meade said $100,000 will go to the Ministry of Agriculture for development work there. “The whole idea here is we put money into the economy, we put money into small businesses and farming activities. And through proper monitoring, the collection of data, we would be in a position to look at development in a broader perspective, Premier Meade explains. Meantime, Mr Leon praised the effort of the government as one of the pivotal programmes that one should not only support but expand going forward. He shared that to be able to undertake any meaningful investments and growth, one needs to be able to have not just adequate but affordable finance.