Opposition Leader Details Rescue Plan

Details

Economy

Tuesday, 08 January 2013 02:31

By Carol Williams

Antigua, St. John’s - The Leader of the Opposition has unveiled the Antigua Labour Party’s Rescue Plan for the country aimed at generating an additional $100 million in revenue annually by consolidating ministries and legislating a mandatory investment in the country by offshore financial banks.

Gaston Browne told members of the House of Representatives that the Ministries of Foreign Affairs, Tourism and Investments will be consolidated into a super ministry with diplomats having a major role to play in promoting the country.

“The strategic thinking behind the creation of this super ministry is to integrate promotion with diplomacy for greater reach, maximization of our human resource output and providing a one stop shop for investors. The ministry will have a remit to grow foreign direct investments, tourism, merchant shipping, yachting and offshore financial services aggressively with the private sector,” he said.

“Officials in this ministry, to include the minister and diplomats, (will have) their remuneration packages performance-based and incentivised with bonuses for reaching or exceeding their targets.”

The plan was outlined by Browne in his 90 minute opening contribution to the debate on the 2013 Estimates of Revenue and Expenditure.

His presentation focused primarily on the plan, though he tore into the Government for its management of the economy as he labeled the National Economic and Social Plan a failure.

Browne said offshore companies operating here have an estimated US$3 billion in assets and should be made to invest 5-10 per cent of their deposits in the country.

He brushed aside suggestions that this will make the sector less competitive, explaining that it is a protective mechanism for depositors and helps with development.

“They’ll raise $800 million from offshore banks as reserve deposits and I believe they can do it at a weighted cost of two per cent…They should be required by legislation to invest a small portion of their deposits in this country.  And it’s important for them too and it’s also a good marketing tool because if shows they have an interest in the country,” he said.

The opposition leader said the medium term plan includes the development of a commercial duty-free hub between St Johns and the Point community to rival St Maarten.

Further, he said, an Antigua Labour Party administration will tweak the Antigua & Barbuda Sales Tax by widening the basket of goods, and abolishing the Personal Income Tax.

Browne said the plan to construct 500 homes in the first 500 days of an ALP administration will put 2500 people to work in the construction sector.

The ALP also wants to appoint “influential, wealthy expatriates” as resident economic envoys.The opposition leader said these individuals will be used to “promote and sell our offshore financial services, tourism, yachting, merchant shipping services in collaboration with the private sector.”

The ALP Rescue Plan also calls for a tax amnesty for businesses owing Government in excess of eight years; fast tracking tourism developments including the Beaches hotel project that has been a source of contention; implementing an economic residency programme for expatriate property owners at Jumby Bay and Mill Reef to facilitate ease of entry and right of establishment; and introducing fishing trawlers here through support from Japan.

“For instance we will acquire a few fishing trawlers and the provision of modern equipment and training of our fishermen.
We have one of the largest economic zones in the region in which we can exploit about 10,000 tonnes of fish and fish products,” he said.

Browne said an ALP administration intends to introduce strategies to reduce the cost of electricity to consumers, rent buildings on a Build, Operate, Own and Transfer basis; allow the Antigua & Barbuda Development Bank to take deposits and offer limited commercial bank products.

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In the prelude to his presentation, Browne charged that the United Progressive Party Government, rather than the state of the global economy, is responsible for the Antigua & Barbuda “fiscal cliff”.

He said the administration spent irresponsibly and exhausted the tax and borrowing options which plunged Antigua & Barbuda into a sustained period of contraction, which he estimates at 24 per cent.

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