President James Michel gives his state-of-the-nation address:-The world is talking about our successes |26 February 2011

These proud words were delivered by President James Michel to the National Assembly and the whole Seychelles nation in his state-of-the-nation address yesterday afternoon.

“With 47% of our territory designated as nature reserves, Seychelles is first in the world in conservation and environmental management,” he said.

“We conducted three missions to rescue our brothers who had been taken hostage by Somali bandits. The bravery and tenacity of our soldiers brought victory for Seychelles.

“Five tankers are flying our flag all over the world. Seychelles, a small country of 89,000 inhabitants, is developing its oil exploration industry. The University of Seychelles has opened its doors to its first group of students. More importantly, the economic reform we undertook two years ago has demonstrated to the world our resilience and strength.”

Mr Michel said the success of the economic reform is today a victory for Seychelles and the country’s harmony, social cohesion, unity, peace and stability are a “victory for our young democracy”.

He said his fervent wish is that the upcoming presidential election takes place with peace, tolerance and respect for the opinions of other.

“On April 14, 2004 I laid the foundation stone for the new Seychelles that will enable us to prosper in this competitive world,” he said.

“I’ve started a job. I am not the type of person to walk away from a job halfway through it. Today, we have in place a solid structure and there is work to do to build the edifice that will receive and shelter all Seychellois, without exception.

“This job, this mission, is my passion, my life, because I believe in my people, and the people of Seychelles have put their trust in me. I am determined to complete what I have started doing together with the Seychellois people.” 

The President outlined the state of the economy, noting that Seychelles is heading towards a sustainable debt level and increased growth.

In 2010, Seychelles recorded 6.2% economic growth in real terms, with inflation at almost zero, he said.

In 2010 there was a record number of tourists who visited Seychelles, totalling 174,529. Already, since the start of 2011, there has been an increase in the number of tourist arrivals over the corresponding period of 2010. 

The year 2010 was also an exceptionally good year for foreign direct investment, with US $290 million entering the economy. In 2011, the government expects this figure to be around US $120m.

Mr Michel said the performance of the domestic economy “remains very solid” and other economic indicators are encouraging: a fiscal surplus, fundamental to the continued reduction of our national debt; a stable exchange rate; foreign exchange reserves which had reached almost US $250m at the end last month – the equivalent of 2.4 months of imports.

He said his government will continue to put in place policies that ensure Seychellois become responsible workers, entrepreneurs, managers, and owners of their own businesses and enterprises. And that they take part in wealth creation and the prosperity of our country.

In the context of this ownership drive, Mr Michel announced that the government has decided to sell 40% of its shares in the Seychelles Savings Bank to its clients and employees of the bank who wish to buy shares.

 
On the topic of land ownership and future investment, he announced that the Seychelles EXPO 2020 exhibition will be the launch pad for his government’s vision of the future 10 years of development, including the opportunity for Seychellois entrepreneurs to invest in five reclaimed island projects, where there will be opportunities for 400 units for shops, restaurants, workshops for small businesses and new offices, as well as up to eight hotels and many small guesthouses.

“In our vision for 2020, we are using our islands – Aurore, Soleil, Eve, Romainville and Perseverance – to create economic space,” he said.

“We will make available opportunities for Seychellois to develop around 1,400 houses of different styles that blend well with our Seychellois Creole identity and environment. 

“These houses will be tendered out to Seychellois who aspire either to have their own homes or wish to undertake commercial developments. Our Waterfront project, which has been relaunched as La Promenade, is reserved for Seychellois investment.”

The President also announced that a special fund will be created for the 1,150 Seychellois workers at the Indian Ocean Tuna cannery. The government will use a portion of the dividends it earns from IOT to pay Seychellois workers the benefits they were not being paid before.

All Seychellois workers at IOT who will receive compensation for completing five years’ service this year will also receive a gratuity, as do other employees in the public sector. Gratuity payments will be made from April this year.

“This will encourage more Seychellois to work in the IOT factory, and help to localise posts,” said Mr Michel.
“It will also ensure they will receive benefits on retirement, and will have contributed to their pension fund.”
He also said that as of March 1, income tax will not be applied to gratuity payments that are less than R10,000, and this will apply to all Seychellois workers.

Mr Michel said there is a perception that foreigners are taking the place of Seychellois in the workplace, but he noted that today there are 191 expatriates working mainly in the health and education sectors in the government  – down from 319 in 2005 – and this forms part of efforts by the government to localise posts.
 “There are today some 30,860 workers in the private sector.  Of these, some 21,030 are Seychellois and 9,830 are expatriates,” he added.

“Most foreign labour is in the tourism and construction industries. Should we ask all these expatriates in the construction and tourism industries to leave? Should we stop building houses? Should we close our hotels? Should we sack all the foreign teachers and doctors? Is this what some people want to see?”

The President warned against cheap politics which is sowing the seeds of xenophobia in the country and called on respectful behaviour towards foreign workers.

“We are a country renowned for its harmony and welcome. Our way of life is one of our strong points which makes visitors return to our country,” he said.

“Seychellois have no time for xenophobia. Every fast-developing country needs expatriate workers...all these developments and all these projects are being undertaken above all for the benefit of the Seychellois.”
 
Summary of major announcements:
 ● Seychellois entrepreneurs will be able to apply at the Seychelles EXPO 2020 to take part in business projects on the reclaimed islands of Soleil, Eve, Aurore, Perseverance and Romainville, as well as the La Promenade project (known as the Victoria Waterfront).

● Government will use a portion of the dividends it earns from IOT (Indian Ocean Tuna) to set up a special fund to pay Seychellois workers at IOT the benefits they were not being paid before. All Seychellois workers at IOT who will receive compensation for completing five years’ service this year will also receive a gratuity, as do other employees of the public sector. Gratuity payments will be made from April this year.
● As of March 1, income tax will not apply to gratuity payments that are less
than R10,000, which applies to all Seychellois workers.

● The government will be selling 40% of its Seychelles Savings Bank shares to clients and employees of the bank who would like to own shares, starting on April 15 this year.

● Civic education will be introduced in schools, and support will be given to the Catholic Church in training teachers in religious education.

● The government will be supporting the Catholic Church in building two drug rehabilitation centres this year, on Praslin and Mahe. The government will help to finance the building work and give an annual budgetary allocation for the running of the centres by the church.

Tag: President Michel, State of the Nation