Our Government decided to postpone the report on our first 100 days and do a report on our first four months in office instead. That decision was made in part because we did not want the report to get lost in the merriment of the Summer Festival as well as a result of my preoccupation with other important matters of State. We sincerely apologize to those persons who were put off by our decision to choose the four-month milestone option.
However, milestones are primarily used as times to reflect and to assess whether we are on the right course to achieving the goals that we set for ourselves. In this case to determine whether our Anguilla United Front Government is on track to delivering on our contract with the people of Anguilla. A contract on the basis of which, we were given an overwhelming mandate by you, my people.
When you embark on a journey — whether you start off slowly or swiftly is of no consequence — provided you cross the finish line without tripping and/or falling. As the saying goes: Finish strong! The Anguilla United Front Government under my leadership has decided that we will not be distracted by anyone or group of persons trying to dictate to us at what pace we should proceed. However, we are determined that we will deliver on the promises and pledges we made to the people of Anguilla in good time. That time is of course a factor of the conditions that exist in the environment in which we are operating. But you can be certain that we intend to finish strong.
It is in this context, that as Chief Minister and Leader of Government Business I have chosen to report to my people on where we are at this juncture of our mission, namely, “to advance the Anguillian dream of sustainable human development and prosperity for the (our) people.” The mantra that we have embraced is: “creating jobs; business opportunities; investment and training”. And our admonition to all is: “Don’t look back — the path to success lies ahead.”
While it is difficult to decide which of the challenges we face requires the greatest urgency of response — I would suggest that four of them seem to dominate the media, the breakfast tables and the various watering places around Anguilla. They are (and not necessarily in order of preference):
• the rationing of water;
• the interim stabilization levy;
• Cap Juluca; and
• the indigenous banking situation.
Let me report on progress on these four issues before I move on to other developments over the first four months in office.
The Rationing of Water.
During the first two days of being sworn in as Minister of Infrastructure & Utilities, the Honourable Curtis Richardson evaluated the situation of the shortage of water and immediately contacted the owner of the Cuisinart Resort & Golf Course, Mr. Leandro Rizutto and negotiated the supply of more water for the distribution system. As a result of this swift intervention customers in the western part of the island received a steadier supply of water immediately — and for a time customers in areas around the Valley and the eastern side of the island also experienced less rationing. However, this did not continue because the efficiency of the pumps from brackish wells in the Valley area deteriorated and supplies to the main reservoir at Crocus Hill decreased. Our Government took swift action to correct this situation.
The Minister persisted, and as a result the winning contractor for the main desalinization plant has been brought back to the negotiating table and will implement his production system by September. Government has put a new Board for the Water Corporation in place, which is overseeing the improvements of the distribution system and has ordered larger pumps for the brackish wells in the Valley. It means therefore that within a month to six weeks we will all see drastic improvements in the distribution of water all over the island. In fact the first sections of the new plant are already on the site in preparation for installation.
The Interim Stabilization Levy.
Our AUF Government promised during its election campaign and enshrined on page 20 of our Manifesto that we will be repealing/removing the Interim Stabilization Levy in 12 months — because it is a bad/inequitable tax measure. During my first meetings with the Ministry of Finance and other Government agencies I reaffirmed my commitment to that promise. Based on our discussions on fiscal measures there are some concerns as to how this tax, which yields approximately 14 million dollars annually, will be replaced. That is therefore an exercise that must be undertaken and will require adjustments to existing tax measures; improvement in revenue collections; increasing economic activity and growth; and the implementation of creative policies to attract investment into the economy. All of these fiscal measures will form part of the Medium Term Economic Strategic Plan that is now in its final stages of discussion. But you can rest assured that the Interim Stabilization Levy will not form part of the Budgetary estimates for 2016.
Cap Juluca
The hallmark of our Tourist Industry, Cap Juluca, has been plagued by ownership disputes over the years. It is a situation that has impacted the lives of many Anguillans — but as a property it has always maintained its charm and appeal to both visitors and investors who come to our shores. We believe that the resolution of the present dispute within the early days of our tenure will be a determining factor of our success as a Government. To this end we are determined to fix this matter in a fair and equitable manner.
In this context, we have been holding discussions with all parties involved both directly as well as through lawyers and other surrogates. We will not stand idly by and allow Cap Juluca and the people of Anguilla to be destroyed by the competing agendas of ownership groups that do not necessarily have the best interests of Anguilla at heart. I am pleased to report that there is a positive outcome in sight and we are in the process of negotiating a meeting between the principal partners to this dispute. Given recent developments in the Courts we believe that the opportunity is ripe for a settlement. And by way of information Government is now presenting the checks from Cap Juluca that were being withheld for payment. Within the next two weeks we will be making a major decision on the way forward.
The Indigenous Banks
The situation with the indigenous banks is one that has occupied much of my time over the last four months of coming in to office. They are of the utmost importance to Anguilla’s national development and as a consequence demand an effective resolution.
Let me say to all of you at the outset that we are indeed making great progress. Government has been spending a great amount of time understanding the nature and scope of the challenge — and weighing which option or combination of options, presented to us by the technicians, would best satisfy what we determine to be in the best interest of Anguilla.
It is clear that Anguillians for the most part want us to achieve a very clear set of goals and objectives:-
• Ensure that the interests of all customers are protected and treated fairly.
• Ensure that Anguilla retains the majority shareholdings in the indigenous banking sector.
• Ensure that the Government of Anguilla will do what is required to fix the underlying economic situation on the island so as to create more jobs; business opportunities; investment and training.
• Enact laws that are fit for the purpose of implementing a resolution in the interest of the people of Anguilla.
• Ensure that the jobs and benefits for the staff of our indigenous banks are protected for the long term.
• Be certain to make adequate provision for an effective regulatory system for the future.
All of these objectives are achievable. They simply require the appropriate legislation and the funding to make them happen. The legislation will have to be fit for purpose. The funding must be affordable — and from a sound and reputable source. Over the next few weeks the Government is confident that it can report back to the people on a more definitive timetable to progress this matter.
Our job as a Government, above all others, is first and foremost to bring back stability to the banking sector as well as the overall economy. This is not the time to look for someone or some group of persons to blame. On the other hand, the job of the Anguillian people is to continue to be loyal and patriotic and support the banks in the same way that they have in the past to their overwhelming success.
This approach will make them strong. It will also make us stronger. Since the banks are so important for our development — we cannot afford to lose them. We can help them with our feet — by standing firm thus making them more sustainable by banking local. It is our pride and patriotism that will help us to survive these challenges. I am therefore admonishing all of you! Please be wary of persons who would encourage you to in effect “cut off your nose to spite your face”.
Other Developments
But while the foregoing issues are important they were a number of other matters and initiatives that our Government undertook during the first four months. Let me highlight some of them.
Investment Opportunities
Over the past four months we met with several investors who have been anxious to explore opportunities in Anguilla under this new Government. In the public sector they have expressed interest in solar and alternative energy projects; water production; airport expansion; port development; and, road construction. The discussions on the delivery of these projects range from traditional forms of financing to public private partnerships and build operate own/lease transfer arrangements. Government is keenly aware of the importance of conducting proper due diligence exercises to ascertain the integrity of the investors — and their capacity to deliver.
There is also considerable interest for private sector investment projects. Before ascending to office, our Government met with a number of groups interested in investing in marina and water front project development. It is a plank of our program to diversify within the Tourism sector. There are two sites right now being considered by private sector entities for marina development as a component of hotel projects. One is a part of an already existing hotel and the other as part of a new development. And to advance the process even further, Government is considering putting together a package of incentives to attract investment in this area that will include conducting environmental impact assessment studies in advance of proposals. This is in keeping with the AUF approach of the “glory days” when we decided what projects we wanted then put them out for potential investors.
Miscellaneous Initiatives
• The Ministry of Finance and Economic Development has put together a public/private sector committee for the purpose of formulating a Residence By Investment policy/program for Anguilla. This initiative is designed to encourage high net worth individuals to invest in Anguilla thereby stimulating the economy and creating employment and business opportunities in exchange for a fast track to permanent residency in Anguilla. The attractiveness of Anguilla as a tranquil environment with sun, beaches and low tax makes it a competitive jurisdiction for residence and citizenship planning. When properly designed and marketed this initiative/program can yield considerable tax revenues.
• The Government has committed itself to regularizing and rationalizing the property tax regime. This initiative is designed to make property tax a fairer and more robust system of taxation. The need for this is based on the fact that the present system does not take into account the quality of housing; the location of the property; the purpose of the building; and the surrounding amenities. For example, it cannot be fair that a house on the beach attracts the same rate of tax per square foot as the house in a less scenic location. And most importantly, it cannot be a fair system where less than four out of ten homeowners pay and the other six are not penalized. In this kind of system it is unfair to those who faithfully pay up their obligations. Our objective is to make the property tax system fairer and more realistic.
• The Government has begun serious discussions on how to exploit the fishing resources in Anguilla’s 200 miles Exclusive Economic Zone to the North. It has been decided that we can no longer linger on implementing this initiative. We therefore intend to go to participants in the industry, internationally, to obtain requests for proposals for a preliminary investigatory operation. It is believed that putting a regime in place for the licensing of fishing boats/companies can lead to a lucrative source of income for Anguilla as in the Falkland Islands.
• I was pleased to cut the ribbon (along with Her Excellency the Governor) at the Ceremony for the soft opening of the Anguillian Amerindian Interpretation Centre and Trail at the Fountain Cavern. It represents the beginning of journey to intelligently exploit the rich heritage; culture and history of our island and its people. At last, an opportunity to showcase this site and other artifacts in a secure and dignified manner. It is an initiative that has great potential for enhancing our heritage tourism product.
• The Alternative Energy Committee is being revitalized to complete the work begun on climate change policies and issues during our 2000-2010 AUF Administration. We recognize that there is need to get back on track and progress the transformational policies and legislation that were being developed. There is no question that this initiative has major implications for the sustainability of our economy.
• Just last week the Ministry of Home Affairs began the process of reinstating the Constitutional and Electoral Reform Committee with a mandate to complete that fifteen-year old enterprise within the next 18 to 24 months. We believe that this is an important initiative to finally deal with a number of issues affecting effective governance; participatory democracy; increased autonomy; and personal status.
• The newly installed Tourist Board has been leading the way on AUF initiatives like the restoration of the night ferry; increased hours of operation at the ports to facilitate early and late flights and access arrangements to and from the St. Maarten hub. In addition, talks have begun to advance the AUF pledge to facilitate investment in a national airline service. Such initiatives will serve to provide a more sustainable approach to access into Anguilla from the various hubs.
Small Infrastructure Projects
• The Minister of Infrastructure, Hon. Curtis Richardson initiated the cutting of an exit route from Sandy Ground to South Hill (known as the Chapel Hill Road) as a means of responding to safety issues in the event of a bottleneck in Sandy Ground. Government is now in the procurement process to complete this project as a more permanent road.
• The Minister of Education, the Hon Evans McNiel Rogers was appalled by the primitive drinking water facilities at the Orealia Kelly Primary School and immediately after a visit there put the motions in place for the construction of a proper system. The project will be completed during the Summer Vacation.
Longer term projects
• The repair of the Sandy Ground Wharf is an urgent matter so as to avoid any serious accidents at that impaired facility as well as ensuring that the flow of trade is maintained. While looking at the longer-term solution of a deep-water facility at Corito — it is important that there is a viable port facility in the short to medium term. The funding for both of these initiatives is being sourced as we speak.
• The Airport expansion project continues to be a work in progress. There are a number of proposals before the Government. However, Government is assessing these proposals in the context of realistic needs. Government is of the strong opinion that it must determine what kind of facility it wants and then allow potential investors to submit their proposals. Ultimately, we must decide whether the project will be delivered as a public/private partnership or as a complete Government undertaking. These discussions are currently being conducted.
• The Minister of Health has begun the process of developing a modern Medical Complex on Anguilla. Progress has been made on the establishment of a tax-exempt facility in the United States to accept charitable contributions for the project. He has also begun discussions with a number of private foundations and agencies that are potential participants.
• In conjunction with the Anguilla Social Security Board the Government of Anguilla is once more progressing the National Health Insurance Fund initiative as a fully sustainable venture. The Ministry of Finance and the Ministry of Health have begun discussions with the newly appointed Social Security Board for the implementation of a system that will provide universal access to affordable, fair and effective health care for all Anguillans.
• The Ministry of Economic Development recognizes that a vibrant and sustainable economy cannot be achieved by austerity measures alone. The investment side of the development equation must be addressed in a proactive manner. To this end a Foreign Direct Investment policy strategy document is currently being developed to attract suitable investors and investment to our island. Incentives to place local investors in a competitive position are also being contemplated as an aspect of this strategy. The understanding is that local investors must be poised to benefit from the opportunities created by Foreign Direct Investment as well.
The last four months have sped quickly by as your Government continues to work, without complaining or blaming, to fulfill the overwhelming responsibility you vested in us on April 22, 2015. We remain grateful for the clear mandate that we were given to deliver on our contract as enshrined in our Manifesto: 2015-2020 and Beyond.
This report is by no means exhaustive and even as I close this lengthy presentation I am sure that there are significant omissions that I will recall later. But this is a fluid process — and these are early days. We will have many more opportunities to reflect — and over the next few days we will make ourselves available to the press and other media to fill in the gaps.
I believe that we are well on course. The challenges seem ominous at times — but we are confident in our ability, with God’s providence and guidance, to overcome them all for the benefit of all the people that we were elected to represent. We thank you for your continued prayers in the days ahead.
May God Bless you all. And may God bless Anguilla.
(Published without editing by The Anguillian newspaper.)
