Interview with Finance, Trade, Investment and Economic Planning Minister Maurice Loustau-Lalanne |17 August 2020
Minister Loustau-Lalanne
‘Air Seychelles to get additional help from government, ferry companies to benefit from fuel concessions’
In a press conference held end of last week, Finance, Trade, Investment and Economic Planning Minister Maurice Loustau-Lalanne made a series of announcements, among which he revealed that Air Seychelles is expected to receive additional help from government and that ferry companies are set to benefit from fuel concessions from September 1 to December 31, 2020.
The minister also referred to compensation payments regarding waste contaminated water in La Misère as well as compensations for Petit Paris residents.
First round of La Misère compensation paid, Petit Paris to follow in September
Minister Loustau-Lalanne has confirmed that the majority of the 1,752 individuals who were affected by water tainted with sewage in La Misère and Petit Barbarons, have been paid their first round of compensation, with only 318 persons yet to be paid.
A sum of R31.1 million out of the R38.39 million budgeted for this round payment has been doled out, this time directly into the bank accounts of the victims.
It should be noted that the ministry of finance managed to pay around 506 claimants, using cheques, during an exercise held on March 28, 2020 but which had to stop due to the coronavirus pandemic. A sum of R9.9 million was paid during this round of payments.
“The few who are yet to be paid their compensation include those who have since passed away – as their surviving family members have to go through a different process – as well as some who had issues with their bank accounts which they need to remediate,” Minister Loustau-Lalanne explained.
“There are also some who need to bring the signed contract before they get paid,” he added.
The second rounds of payments for La Misère will be paid in 2021.
Following the La Misère compensation payout, Minister Maurice Loustau-Lalanne noted that the government will, as from September 2020, pay compensations to Petit Paris residents who were affected by pollution from the asphalt plant which used to be operational in that area.
The plant was re-located to the Providence Industrial Estate a couple of years ago.
A total sum of R1.8 million will be made payable to 198 individuals from 46 affected households.
The residents had claimed that noise, dust and foul odour from fumes emitted by the plant belonging to the Ministry of Habitat, Lands, Infrastructure and Land Transport had polluted the area and affected the residents.
“To arrive at the level of monetary compensation we have had to look at their medical records – how often they attended the clinics or hospitals. They have had conditions such as asthma, bronchitis, skin rashes and other different conditions that have been certified and treated by doctors,” the minister detailed.
Air Seychelles to receive additional government aid
Air Seychelles expects to receive even more funding from the government as the latter expressed its continued support towards the national carrier.
With Air Seychelles under extreme financial crisis, the airline has made a first request of US $15 million from the government in order to pay its debt incurred from two bonds.
The two bonds, procured by Etihad, are expected to mature in September 2020 and in 2021 respectively.
Although the debt is known to be of significantly higher value, Air Seychelles is in negotiations with the bond holders to reduce its debt down to US $15 million, which the government has committed to pay when the negotiations comes to a head on September 22.
If the bond holder does not agree to be paid the reduced sum of US $15 million, Air Seychelles expects to re-negotiate to pay US $30 million – a sum which the government will back, Minister Maurice Loustau-Lalanne affirmed.
“We would like to pay less, which is why we brought the first offer of US $15 million, but if the negotiations does not pan out we will look into the other envelope.”
“It is important to stress that the government will do its maximum to support Air Seychelles during difficult times,” said the minister.
The government has already pledged an annual budget allocation of US $6 million for five years to the airline’s restructuring programme.
Air Seychelles is also benefitting from financial assistance of R109 million to guarantee its employees’ salaries until December 2020.
Fuel concession for ferry companies underway
The government will soon introduce a new regulation to allow the two passenger ferry companies operating in the country – Inter Island Boats (Cat Cocos) and Cat Rose Inter-Island Ferry – to benefit from fuel concession.
Under the new regulation, the ferry companies are to receive 50% off fuel duty as from September 1, 2020 with the hopes that this may encourage the ferries to operate every day.
The ferries which connect the inner islands have been operating on odd days due to the impacts of Covid-19.
“Since the pandemic, both Cat Rose and Cat Cocos have been greatly affected and these operators had asked the government to provide further assistance outside of that being offered through the financial relief scheme FA4JR,” Minister Loustau-Lalanne stated.
“There are some days during the week in which they make no trips at all which creates a lot of difficulties for those who want to travel and creates some inconveniences especially now with the arrival of tourists in the country. Furthermore, we need more trips due to the PCR tests sample that are taken on Praslin and La Digue but that need to be transported to Mahé for analysis.”
“The government evaluated this situation and decided to give a concession on fuel as from September 1. They will get 50% off duty which means that instead of paying around R8 duty they will now pay half of that as from September 1 to December 31, 2020.”
Elsie Pointe