The use of the above phrase in this commentary is deliberate. It is a commonly-used expression in times of adversity, when the going is tough and when an alert needs to be sounded to avoid sinking in the depths of any given situation. And what do we need to be more attentive to, or cautious about, than the present financial and economic troubled waters in which we have entered and must stay afloat?

Unlike any other time in the history of Anguilla, we found ourselves having to present two different budgets in one year and, late at that, and each of them with a high deficit. The first, in April, though passed in the House of Assembly, was eventually rejected by the former British Government. The second, presented on Monday this week, and to be debated next week, is most likely to win the approval of the new UK coalition Government, whose Overseas Territories’ Minister, Henry Bellingham MP, indicated his agreement once the budgetary measures, including salary cuts and new taxes, were adhered to. He also agreed to a three-year period during which Anguilla would work towards balancing its budget.

It is only fair and right that this should be allowed, given the reality of the world-wide financial and economic situation and its demeaning impact on both large and small countries. Britain, with a 2010 deficit of 230 billion dollars in its budget presentation this week, should be the last Mother Country not to understand the woes of its Overseas Territories and not to provide some easement. The UK Government’s relaxing of the borrowing guidelines, under which Anguilla and the other territories can now obtain substantial loans to boost their economies, is a welcome gesture.

Reporters attending the Chief Minister’s press conference over the past fortnight could not but observe the uneasiness and lack of enthusiasm with which he spoke about the problems his Government and Anguilla faced. He even suggested that the absence of a budget might have been a means of forcing him out of office as was the case in 2000. By the beginning of this week, however, he was beaming as he presented his revised budget, though obviously saddened by the salary cuts and taxation. He was beaming because of a letter offering assurance and assistance from the Overseas Territories’ Minister and he was confident that the budget would be approved this time by Britain. By Tuesday, he was even happier, having been informed that the Caribbean Development Bank was processing the US$75 million Policy Based Loan at the urging of British officials.

This is all good news for Anguilla on a whole. The Chief Minister has registered his dislike for borrowing, and recently told reporters that in the 40-odd years since he returned from his sojourn in England, he had not borrowed any money. Of course, that was in his private capacity. It is a different ball game when one has the difficult task to run a developing country, as he must find out. What now needs to done is to ensure that Anguilla puts its house in order, and through sustained economic development, has the ability to repay its loans. The imminent projects he outlined in the House of Assembly, and those already on the island, may well provide the catalyst for repayment. The Chief Minister is also happy with his new-found cordial relationship with the UK Government and it may be to his advantage to lessen his usual offending criticisms, even of the former UK Administration. What he will say at the CARICOM meeting on July 4 - 7 in Jamaica, having previously planned to speak about Britain’s treatment of Anguilla [and its other territories], is anyone’s guess.

In the meantime, let us all be ever cognisant of the rough fiscal tide flowing across Anguilla and “keep our heads above water” lest we sink.

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