by CARIBUPDATE NEWS SERVICE
Friday, July 20, 2012: ST GEORGE’S, GRENADA: In an unprecedented development in the Grenada parliament, the government had a bill it piloted defeated, which observers say is a sign of Tillman Thomas’ tenuous hold on power amidst a fractious battle within his ruling party.
Two government backbenchers joined with the opposition in defeating a bill that sought an amendment to an insurance act, which seeks to impose a levy on premiums as well as demand a half a million security payment from companies.
Later in the proceedings, leader of government business withdrew a number of other bills apparently fearing further government embarrassment.
Parliamentary watchers said it is the first time since independence that a government pilotted bill was defeated.
Government backbenchers Karl Hood, the former Foreign Minister and Michael Church joined the four opposition MPs in standing against the government push.
The motion was defeated 6-5, with four other MPs, including cabinet members Sylvester Quarless and Glynis Roberts, absent.
Once the bill was presented, opposition leader Dr Keith Mitchell expressed his reservations.
“It is difficult for us to support the imposition of that levee as a further condition being imposed at this time,” he said.
The Opposition Leader said the new fees will starve the companies of investment cash that the economy more badly needs.
Also raising his concerns were former foreign minister Karl Hood.
“If you are asking the insurance company to deposit that money, they will not be getting any interest on it. So who gets that interest on it?” he asked.
Hood also argued that the money the companies can make in interest might serve the country better if the levied companies can invest it back into the economy, rather than be stuck in a government account.
“Aren’t we putting an extra burden upon the insurance companies and by extension upon the policy holders? Mr Speaker I am not sure I can support this. It doesn’t make much sense to me. Perhaps I am not brilliant enough,” Hood concluded.
After the vote, Prime Minister blasted the dissenting MPs for “voting against regulation”.
Thomas said: “So to use technicality about fees is not an issue, it’s about regulation. What we are trying to do is protect people who invest in insurance companies.”
But Hood took strong objections to the statement by his political leader.
He shot back: “I take great objection Mr Speaker…. to be said I voted against regulation. I take serious objection to that. I want that to be on record that this is not what I have done. I have not voted against the people’s will.”
