PROPOSAL FOR REVIEWING THE TRAVELING AND SUBSISTENCE ALLOWANCE

1. The Collective Agreement between the St.Lucia Civil Service Association (CSA) and Government provides for the “Employer … to review from time to time the rates of Traveling and Subsistence Allowance paid to Public Servants. Submissions for change will be made by the Traveling and Subsistence Committee and will come into effect after approval by Cabinet”.

2. The last review which was made to this effect was in 2000, as per Cabinet No. 437 of 1st June, 2000. Approval was given as follows: -

(a) Increase in basis traveling allowance to public officers: -

Class Regular Commuted

II $580.00 $464.00

III $556.00 $452.00

IV $522.00 $406.00

(b) Increase in mileage rates: -

Category Rate: Regular/Commuted $1.07 per mile - Casual $1.45 per mile

Breakfast - $10.00 Lunch - $15.00 Dinner - $25.00

(d) The rates at (c) above were subsequently changed by Cabinet Conclusion No. 744 of 17th August, 2000 to: -

Breakfast - $15.00 Lunch - $20.00 Dinner - $20.00

3. The foregone Traveling and Subsistence rates have been in effect for a period of six (6) years. During this period, there were changes and/or increases in the costs of owning and maintaining vehicles which have impacted negatively on Traveling Officers in the Public Service.

a) INCREASE IN PETROL FOR 2002-2005

2002/2003 - 4.9%

2003/2004 - 4.9%

2004/2005 - 8.6%

b) INCREASE IN TYRES FOR 2002 – 2005

2002/2003 - 7.0%

2003/2004 - 0.3%

2004/2005 - 0.7%

• The Government have taken cognizance of the changes in costs and the implications of such costs to traveling officers of the Public Service and by Cabinet Conclusion No. 769 of 2005.

“directed the re-activation of the Travel and Subsistence Committee with immediate effect.”

• Following the directive of the Chairman of the Government Negotiating Team, the Traveling and Subsistence Committee recognized the need for a review of the traveling and subsistence rates. It would appear however, that little progress was made to bring about the review.

• In response to the apparent slowness of the Traveling and Subsistence Committee to act, the CSA convened a meeting of traveling officers in the Public Service on the 27th September, 2006.

• Emanating from the discussions at the meeting, the CSA was mandated to propose the following for the consideration of the Traveling and Subsistence Committee in the review exercise: -

(a) Assess the pros and cons of replacing the mileage rate by a flat rate to provide some flexibility in the filling/completion of the monthly mileage return-forms.

(b) It is problematic for traveling officers to find adequate parking space in the immediate vicinity of Government offices. Available space around Government officers are occupied by non-traveling officers.

It is recommended that measures are put in place to make parking space available for traveling officers in the vicinity of Government offices.

(c) For certain categories of traveling officers, the three hundred (300) miles limit is counter productive. In some cases, when the 300 miles limit is reached no traveling is undertaken on Government business. Conversely, some officers, by virtue of their responsibility, clock in excess of 300 miles for which no compensation is given/paid.

It is proposed that the 300 mile limit is revisited and some rationalization be undertaken for equitability so that neither government nor the traveling officers suffer no loss.

(d) The removal of the concessions on used cars and the imposition of the environmental levy have made it burdensome for traveling officers to own and maintain vehicles for carrying out their duties. At the same time, it was recognized that Government provided concessions to many interest groups in many sectors of the economy to facilitate the purchase and operations of vehicles. Significant among these were the concessions provided on import duties, consumption tax, environmental levy, petrol to: -

- Taxi drivers

- Farmers

- Operators of car rental services

- Mini bus operators (through NCPT)

- Bikers Association

- Fishermen

Traveling officers contribute equally important services to the economy and continue to be burdened by rising prices of vehicles, gas, and high maintenance costs.

By way of providing relief to traveling officers in the face of rising prices and increasing cost of vehicle purchases, operations and maintenance, it is proposed as follows: -

(i) Provide a regime of concessions which can make it less burdensome for traveling officers to purchase vehicles which are appropriate for their line of work;

(ii) Engage the Banks in discussions to arrive at arrangements and/or to better accommodate traveling officers to obtain loans and have repayment schedules that are less burdensome;

(iii) Grade traveling officers in accordance with their line of work in order to rationalize the types of concessions to be given;

(iv) Increase the basic traveling allowance pay to traveling officers by fifteen percent (15%) to make it consistent with prevailing prices and costs of maintenance;

(v) There is little or no differential in cost of maintaining vehicles based on the categorization of class for vehicles. For this reason the categorization of vehicles in classes for the purposes of applying the basic traveling allowance should cease;

(vi) It is proposed to increase the mileage rates (regular/commuted and casual) by fifteen (15) percent;

(vii) It is proposed to derive an escalator clause to be applied for increasing the mileage rate as the price of fuel changes (by a given number of percentage points).

4. In summary, the proposal for the review of Traveling Allowance should include, among others: -

(a) Removal of environmental levy for Traveling Officers.

(b) Increase in the basic traveling allowance by 15%.

(c) Increase in mileage allowance by 15%.

(d) Committee to start and conclude its deliberations by the end of November 2006.