The refurbished Club House

“We bought the golf course for 16 not 15 million dollars but, just to bring it up to a decent condition, there is a need for five or six million dollars to be put in place,” Mr. Zaharia said. “The Club House is 80% operational. We are serving breakfast and lunch. It is open to the public and the menus are very simple, but very good.

Workers at the Golf Course

“We want to ensure that the pricing as well is attractive for the local people to come and enjoy,” he stated. “It is hoped that by mid-December dinner will also be available. Our vision is for the Club House to have Italian cuisine as its theme.” Mr. Zaharia said that the restaurant was not the only feature at the Club House, which was also available for event-groups offering them 15 hundred square-feet of meeting space upstairs, while the main restaurant floor, downstairs, was available for weddings and other receptions. “In the past four years this place was on and off, with no stability,” Mr. Zaharia stated. “Now there is going to be stability and we need to stay here for a long, long period.”

Section of Golf Course with incomplete Estate Homes

He said there would be special golf rates for local persons and that the resort was working very closely with some key contacts to bring in golfers from St. Maarten, St. Barths and further-a-field. “It is a win-win situation for everybody – for Anguilla; the Government; and for local people to work,” hestressed.

Maintenance work at Golf Course with private occupied homes

He continued: “The fact that we have a stable and operational golf course will bring in customers from all over the world, because golf is an important feature in vacation…People who have never beento Anguilla will now be exposed to the hospitality of a quality golf course.”

Mr. Stephane Zaharia and Mr. Don Johnson

Mr. Zaharia said that the resort was hoping to find a solution to the building area of the project where a number of incomplete estate structures were located. “We have submitted a proposal to the Government, to seriously consider, and I think it is in the right direction right now,” he went on. “I can’t speak openly about it, but it is very exciting…Unfortunately, it is well-known that the island has produced very low occupancy rates in the past year or two, with an average in the mid 30s at best. Cuisinart can do better than that…but we are saying to Government let’s see how the economy is evolving. If we are going to be running high occupancies of 80 or 90%, we will be the first to say let’s build a hotel because we need more rooms. But to build more rooms, based on occupancies of 30-35%, to us as business persons…it doesn’t make sense right now (although we understand the motivation to do it now). But it will come.

Tony Sheehy, Golf Course Builder

“What we are saying to the Government is to allow us to finish the real estate part of the project because that will realise a significant amount of labour that will be hired. When the Golf Course and Club House are finished, the hotel will eventually come down the line as well.”

Club House Restaurant area

Mr. Zaharia made the point that with the additional golf course project, CuisinArt Golf Resort and Spa had become one of the leading resorts in the Caribbean region. “That is not only a compliment to us as a resort but it is a compliment to the island… I don’t want to say that the owner is a saviour, because he is not and he doesn’t believe that he is, but the commitment is there.”

At present, work is being carried out on bringing the Golf Course up to standard and some 20 workers are employed there for the first time. The work is being carried out under the overall supervision of the Director of Golf Operations, Don Johnson, who has many years of professional experience abroad and first served in Anguilla at the inception of the building of the Golf Course. Serving along with him, as the Assistant Superintendent, isThomas Peabody.

Work is also being carried out by TSG personnel on the Reverse Osmosis Plant, producing desalinated water for the Golf Course at one million gallons a day. As Mr. Johnson and his team work on raising the standard of the course to a professional level, some US$250,000 is required a month for maintenance.

Mr. Zaharia said that Mr. Rizzuto, the owner of CuisinArt Golf Resort and Spa, was extremely motivated by investing in clean energy resources, and the resort was seriously looking into windmill and solar panel energy which would also help to defray operational costs. “This is all for the benefit of the island and making it a great example to the entire Caribbean,” he stated.

Asked further about the resort’s marketing programme with the added Golf Course project, Mr. Zaharia said: “We are not wasting time. Wehave already started with the marketing. We are working with golf magazines, targeting customers looking for packages as well as resorts and others. We are also working closely with cruise lines in St. Maarten so all of that is part of the big plan we are putting together to get people here.”

L-R: Mrs. Rhonda Connor, Mrs. Chanelle Petty-Barrett, Mr. Edison Baird, Mr. Keithley Lake, Ms. Vanessa John and Mrs. Dawn Reid

The Ministry called a press conference on Monday this week at which Minister of Education and Social Development, Edison Baird, announced the two contributions from the Windsong (Anguilla) Foundation.

New section of Valley Primary School under construction

He recalled that the Foundation previously contributed US$175,000 towards the completion of the new Kindergarten Block at the Valley Primary School which was officially dedicated earlier this year. “The Ministry’s vision for that project is the construction of a modern two-storey facility along the western and southern perimeter of the existing property,” Mr. Baird told reporters. “We anticipate that on completion, the existing buildings, which are approximately forty years old, will be removed and made available for sports and other recreational activities. With the current financial situation we [were] concerned as to whether we [would] be able to continue the project beyond the Kindergarten Block and we again appealed to the Windsong (Anguilla) Foundation.

“We are pleased to announce that mid-August we received word that the Foundation was willing to make another contribution towards the continuation of the project. We have finally worked out all the arrangements and are pleased to announce that the Foundation is contributing 600,000US dollars towards the new phase of the project. This sum will allow us to complete the construction of additional classrooms on the existing block and the construction of another storey comprising four additional classrooms, bathrooms and storage space.”
Mr. Baird said construction work was in full gear and his Ministry was confident that the new buildings would be ready for the start of the next school year. “We again thank the Windsong (Anguilla) Foundation for its tangible contribution and for its demonstrated commitment to the educational development of Anguilla’s children,” he stressed.

The Minister continued: “We have more good news. We thank Windsong for its contribution to another project – our Literacy Development Project – which was conceptualised based on the need to raise literacy levels. You will recall that in February of this year, we launched a literacy promotion programme geared towards raising public awareness about the importance of literacy, and also to seek public support for this important project.

“We must say that our business community came on board and gave tremendous support for the project and contributed as much as they were able to. We thank them and I feel compelled to thank them again for their overwhelming support. However, we say a special thanks to the Windsong (Anguilla) Foundation for stepping up to the plate and making an initial contribution of 193,957 US dollars to this important endeavour. I say initial because the Foundation has also agreed to make further donations to the project in 2012 and 2013 which will bring the total donation to 271,222 US dollars. However, the donations in 2012 and 2013 are conditional on our continuing to give financial support to this project.

“Like the Ministry, the Foundation is convinced that the project can only succeed if it is seen as a partnershipbetween the Ministry and the Anguillian community. Our challenge, therefore, is to continue to raise funds towards the project which will also secure the continuing support of the Foundation.

“I would like to assure the Windsong (Anguilla) Foundation that its donations to these two projects are investments that are sure to bring returns for generations to come. This Ministry will prudently maximize the use of these funds to achieve our overall goal of raising educational standards for national development.”

Attorney-at-Law, Keithley Lake, representative of the WindsongFoundation in Anguilla, said it was charged with ensuring that the legacy of the late Martin Crowley was carried forward. He stated that Mr. Crowley lived in Anguilla for many years and established the well-known Pyrat Rum Factory and the Patron Tequila business which were very successful. “Upon his death, his legacy decreed that his estate would go towards the benefit of children under 18 years,” Mr. Lake stated. “Mr. Crowley felt deeply and passionately that if you take care of the children, you will eventually get the kind of society that we all want and welcome.”

He explained that it was not therefore a challenge for the Foundation to favourably consider the request of the Ministry of Education with respect to the extension of the Valley Primary School and the Literacy Project.

Mr. Lake went on: “Mr. Minister you are blessed to have the Permanent Secretary [Mrs. Chanelle Petty-Barrett] that you do, because she is one persistent individual. When she was a member of our firm, Keithley Lake & Associates, she helped in all the litigation efforts that resulted in the Martin Crowley estate being successfully established. She too understood his vision and was able to turn to us when things were very tight with the Government of Anguilla.

“This is only the beginning because I work with Mr. [Greg] Govenger who is my co-Foundation member, and we report to two trustees in California who head-up the Windsong Trust and who are the ultimate decision-makers on funding such as this.”

Permanent Secretary, Mrs. Petty-Barrett, said that the funds for the Literacy Project would cover several aspects of the programme. “One includes the procuring of resources for schools to make sure they are made literacy-rich environments,” she explained. “Another is the catch-up programme which we began this past summer, and that’s geared at children who can probably benefit from some additional support in reading to bring them to an acceptable level. The remaining funds will go towards other aspects of the project such as advertising, promotion and training.”

Meanwhile, Chief Education Officer, Mrs. Rhonda Connor, said she and her colleagues were very excited about the literacy programme. “Without our children being functionally literate, we would not be able to accomplish a number of other improvements in their performance,” she said. “I would want to also add that the Department of Education is indeed grateful to the Windsong Foundation for the contribution. In addition, in relation to us being able to monitor the success of the literacy programme, we test our children annually and we have established targets so that at the end of the five-year stint of our new Education Development Programme, we would expect certain levels of literacy. Therefore, on an annual basis we would be able to compare how we fit with our targets.”

Education Planner, Mrs. Dawn Reid, said that literacy was the number one priority for the next five years. She explained that her role was drafting and developing the Education Plan as well as the project proposals for the Windsong Foundation to which she joined in offering her thanks and appreciation for its assistance.

Mr. Owen Bernard with Nurses and foot care assistants

“Thirteen persons both from the public and private sectors have been trained to assess the diabetic feet,” Director of Nursing Services, Venetta Connor-Webster, told The Anguillian at one of the training sessions this week at The Valley Health Centre. “As part of the ongoingprogramme, earlier this year MASA gave us money for five screening health fairs and now that we have thirteen persons trained, we are going to bring foot-care assessment as part of our screening of diabetics. We normally have testing at the health fairs for free blood pressure, blood sugar, cholesterol and prostate cancer, and now we are incorporating foot-care assessment.”

The Director of Nursing Services said it was a week-long training programme for the Foot Care Assistants. In addition to receiving certificates, they were required to sign a code of ethics, and their licence to practice is to be renewed each year in Jamaica. “The work is part of our non-communicable disease programme at the Health Centre,” she continued. “Foot care is one aspect of taking care of diabetics. Diabetes affects the heart, eyes, kidneys and feet and this is just one part of it.”

MASA Country Manager in Anguilla, Donald Curtis, spoke about the company’s involvement in various local health fairs. He said the company was later approached by the Director of Nursing Services, and PAHO representatives, to assist with helping to prevent the ravages of diabetes which can affect the feet.“It is one of the biggest and the first problem that people experience and if you can prevent, or at least contain, problems of the feet, you can help control the ravages of diabetes,” Curtis stated.

Nurse Smith and Mr. Bernard (along with Mr. Curtis) with patient receiving foot care

“The problem they were having in Anguilla is that some people were trained, but the equipment needed to facilitate that training, was not available. That has been a big drawback. We were asked if we could assist with the equipment while they bring in the professions.” He said that MASA and the Diabetes Association sent the money for the equipment, most of which was now on the island.

Owen Bernard, a UK-trained Podiatrist, who deals exclusively with ailments of the feet, was in Anguilla several days ago assisting with the practical training of the foot-care personnel. Mr. Bernard is CEO of the Jamaica Chapter of the World Walk Foundation, an American organisation which deals specifically with foot health.

“I am on the Board and we have been working together for the past fourteen years,” architect of the Foot Care Programme in Jamaica went on. “We decided that it is time to have a chapter formally registered in Jamaica and we are going to facilitate the training of Foot Care Assistants because we see the need, not just here in Anguilla, but other countries have requested our services; so it is a world-wide foundation.

“In 2000, we came up with a plan to train people at primary care level to deal with those foot problems that seem to be causing a lot of problems.When somebody goes to a hospital to have an amputation done, it is not something that is arrived at overnight. It started somewhere and it is the simple things that we take for granted. I have seen a lot of those problemsthat cause so much distress to people. The amputation might be necessary, but the whole idea is to improve people’s quality of life. Hence the foot-care programme.
“We realise we need not only to train people, but to give them the tools to do the job. A case where somebody with a foot condition is diabetic is a disaster in the making if it is left unchecked. Bad nail conditions wreak havoc on people’s toes, so with the right tools and the basic training you can reduce risks. At the end of the day, what we are trying to do is to reduce the risk of amputation.
“The International Diabetes Federation reported in 2005 that every thirty seconds a lower limb is lost as a result of diabetes. We need to stop that…We need to go back to basics so these simple interventions [are important] and the results are most immediate…[By] having this training done now, not just in Jamaica, where we started the programme, but around the Caribbean, we can have formal foot care clinics.”

Staff Nurse at the Welches Polyclinic, Vesta Smith, who is one of the Foot Care Assistants, said, as she attended a patient’s feet, that the primary health-care service was one of the programmes she had seen coming for a long time. “Let’s take it and run with it,” she added.

L-R: Dr. Joseph West, Sharon Richardson, Karimah Carty and Professor Delroy Louden

The one-week course from Monday to Friday, October 10-14, was facilitated by Dr. Joseph West, Former Dean and Professor in the Hospitality Division at Florida International University in Miami.

The rationale for the training was that in too many instances persons assume managerial positions on their above-average technical competencies, and may not have the requisite leadership skills that support effective Foods & Beverage departments. The training session complemented those technical skills while developing and enhancing the leadership capabilities of Food & Beverage personnel.

Section of workshop participants

The course was also designed to explain the importance of leadership values such as learning, vision, empowerment, communication, respect and motivation.

By the end of the training, participants were expected to distinguish between the terms of management and leadership; arrive at the leadership qualities of a food and beverage manager/supervisor; understand the importance of leadership values; and inspire co-workers to perform at their best.

Participants in the Leadership Workshop

President of the Community College, Professor Delroy Louden, commented on training for the hospitality workers. “I think this is an important course for them and Dr. West has come and kindly given of his time,” he told The Anguillian. “We want to build on this course, so we want to think of an articulation agreement so that as these students take these courses they can build-up their studies cumulatively, get associate degrees, diplomas and certificates and develop careers in the hospitality industry. It is important for us to have very qualified and competent young men and young women to welcome our visitors to this island.”

Director of Hospitality Studies, Sharon Richardson, said: “I believe it is an excellent opportunity to enhance the participants’ leadership skills. They already have the technical competence and now we want to complement that with some leadership ability. I am sure that it will be a very valuable experience for them and for their hospitality practice. We are hoping that the leadership skills will help them and translate into bigger and better things at their various properties.”

Participants in the Leadership Workshop

Dr. West was pleased with the ready and active participation of the trainees and their recognition that the basis of the hospitality industry was to enjoy being with people. He went on: “My approach is that leadership is universal. The principles of leadership and the behaviour of effective leaders are the same throughout the world, so leadership transfers and translates throughout the world and all the different industries.

“At Florida International University, leadership is the last course that the students take in the undergraduate programme. There is a demand for people who possess good leadership skills whether it is the Supervisor who is in charge of the dining room, the General Manager or the political leader. Among the needs of the world are effective leaders.”

Asked about the how the participants responded to the training, Dr. West replied: “We have had a good responsiveness and a lot of inter-action and, believe me, they enjoyed speaking their mind.”

L-R: Mr. Joseph Van Doorn, Mr. Victor Curtain, Mr. Eustace Guishard and Dr. Phillip Heneghan

The presentation, to Government officials, other stakeholders and industry partners from the Hotel and Tourism Association and the Tourist Board, was delivered at the Teachers’ Resource Centre on Monday this week by team leader, Dr. Phillip Heneghan. He was accompanied by Mr. Victor Curtin and Mr. Joseph VanDoorn. The meeting was part of a two-day retreat involving the team and Government officials to discuss the recommendations contained in the report prepared over some eight months.

Three scenarios of growth-rates of the industry over ten years were presented by the consultants in their report: a low growth rate requiring an investment of 220 million US dollars; a medium growth-rate calling for an investment of 750 million; and a high a growth-rate requiring an investment of 1.5 billion dollars.

Dr. Aidan Harrigan, other civil servants and industry partners

The consultants were of the view that the medium growth-rate scenario of 750 million dollars in investment, doubling the present level of the tourist industry, was challenging. “What we feel, though, is that it is achievable with the right mix of programmes, support and dedication on a sustainable basis,” Dr. Heneghan stated. He stressed that this was consistent with the integrity of the initial vision of the team.

He said that such a scenario would mainly involve private sector enterprise along with some partnership from the public sector. It would have the effect of driving the economy, increasing income levels and resulting in higher standards of living. He indicated that to consider the low growth-rate would only serve to maintain the present level of the industry, but without increasing development, employment opportunities and living standards. To consider the high rate would be difficult to attain, calling for a huge investment.

Parliamentary Secretary Haydn Hughes and others

The consultants said their recommendations were aimed at creating wealth for Anguilla in terms of jobs and incomes, while maintaining the very essence of what Anguilla was both for its people and as a destination for tourists.For purposes of their study, they divided Anguilla into three areas. The first was West End, where the major hotels and restaurants were concentrated and where they saw some further development, but not to the point of giving it an over-crowded appearance.

The second area was the centre section of the island, taking in Sandy Ground, Blowing Point, The Valley and its environs. The consultants were of the view that Sandy Ground was not a suitable site for a yacht marina despite the number of such vessels which dock in the harbour there. It was noted that the beach village was the location of a number of restaurants, houses and other buildings built on sand and that any major infrastructural development work there would negatively impactthe area, notwithstanding today’s technical construction capabilities. It was recommended that instead of a marina, there should be an increase in the number of moorings and an enhancing of the port to attract more yachts. “We won’t even remotely suggest touching the area [for a marina],” Dr. Heneghan said.
He pointed out that the yacht marina was instead recommended for Blowing Point, alongside the new terminal building planned for that area. In addition to those facilities, there could be provision for retail shops, restaurants, cafés etc. built around the area, making it a point for social interaction.
In The Valley itself, the consultants recommended a heritage centre at Wallblake Estate with improvements to the main house as well as the out houses. It was suggested that there could be arts and crafts, coffee shop, a national museum and other facilities, all creating an area for social interaction in The Valley.

The consultants strongly recommended that there could be a heritage village in the eastern end of the island, particularly at Island Harbour, taking in nearby Scilly Cay and the Fountain Cavern. It was also noted that Scrub Island was an area to consider with its potential for development. Dr. Heneghan said that he and his colleagues were aware that Island Harbour had a long tradition of fishing and boat building and that there were possibilities for a fish market, fish fry facilities, a car park, museum and other developments.He said such a heritage village would also provide somewhere for persons to go for social interaction.
As part of the general tourism development of Anguilla, the consultants saw the need for improvements to the present airport. Dr. Heneghan said that in order for the Net Jet Company to provide passenger flights to Anguilla there would be a need to extend the runway by 30 feet at a cost of one million US dollars. It was felt, however, that in the medium growth-rate, in order to accommodate larger aircraft, like Jet Blue, it would be necessary to have a length of 6,600 feet at the present airstrip which would cost seventeen million US dollars and which could accommodate an A320 aircraft. He noted that with the modern type of planes it was possible for them to land safely on shorter runways than previously. On the question of a much larger airstrip, it was explained that the required length would be some 7,200 feet which was not possible at the Clayton Lloyd Airport and that a new airport would have to be considered.

There were various other recommendations made by the consultants which the Government and industry partners are studying. But the one now uppermost in their minds is apparently that calling for a doubling of the industry at an investment cost of 750 million US dollars. An additional recommendation is to increase the overall occupancy level from 35% to 50% to realise a more profitable and financially-viable tourism industry.

Chief Minister Hughes (standing) addressing AHTA meeting. Others are L-R: Ved Gandhi, Jerome Roberts, Gecheal Richardson, Wycliffe Fahie and Mr. Haydn Hughes

The meeting on Tuesday this week, chaired by Executive Director of the AHTA, Gilda Gumbs-Samuel, was well attended by hoteliers and restaurant and car rental operators. The Government was represented by Chief Minister and Minister of Finance, Hubert Hughes; his Adviser, Jerome Roberts; Finance Officer, Wycliffe Fahie; Comptroller of Inland Revenue, Gecheal Richardson; and Technical Adviser to the Government and the Tax Reform Group, Ved Gandhi.

Gilda Gumbs-Samuel, Hoteliers and Restaurant Operators at the meeting

The AHTA circulated a position paper (that listed some of the taxes imposed since February 2010, as well as various import duties) which strongly set out its reasons for objecting to the 10% tax.

Hoteliers, Restaurant Operators and others at meeting

“This tax will stifle the small local and independent restaurants in addition to the hotel restaurants,” the paper stated in part. “Both sides will suffer, and this will only impact on the staff, as the owners and managers will have to look at creative ways of reducing the cost of doing business. There is no question that imposing this tax will result in loss of business as less guests will go out to the restaurants to eat. In an effort to keep their customers, restaurant operators will look at removing the service charge on guests’ cheques which would impact on the employees directly. By imposing an additional guest service tax on every restaurant cheque and car rental contract, the Government is encouraging a non-compliant issue from both sides and this will only jeopardise everyone’s business.”

Mr. Eudoxie Webster (left) and Mr. Alan Gumbs (right) speaking at the meeting

Notwithstanding its position paper, the AHTA tasked two members of a “think tank group”, Alan Gumbs and Eudoxie Webster, to speak largely on its behalf.Mr. Gumbs said hotels and restaurants were already very heavily taxed. “What we have determined on the basis of us going forward so far, is that the last thing Anguilla needs at this point is taxes,” he declared. “We have discovered tax is regressive in Anguilla at this time. That to me seems very simple because if you examine your revenue, since you imposed these taxes, you will find that your revenue has not gone up, it gone down…It is clear that taxation is not the way forward for Anguilla.”

Mr. Gumbs went on: “As far as we can see, and in the discussions we have had, the only thing that would really help Anguilla is for us to raise our very sad 33% occupancy level to 60% and that, of course, would certainly cure the problem. To go about that, we have to examine what we are doing in tourism from the standpoint of marketing. There has to be some input of investment into that marketing structure to carry us to the higher level.”
He presented the AHTA’s views about looking at the size and responsibilities of the Civil Service, while taking into account the financial needs of each worker. But he saw this as “the least problematic way to go forward.” He felt strongly that the Stabilisation Levy should be removed as it would later affect the hotels, restaurants and the tourist industry in general, resulting in the employment of fewer persons or the closure of properties as well as less money going to social security.

“This [new 10% tax] is just outrageously ridiculous in terms of what we are doing in Anguilla,” Mr. Gumbs asserted. “Our viewpoint is very simple. We will not accept another tax in Anguilla.”

Eudoxie Webster pleaded: “Lay off the restaurants otherwise we will have to take it [the 10% tax] from the service charge and you will have 4,000 people down at Mr. Hughes’ office, and this will be his last year. Try to work with us. You can’t kill us.”

There were various other comments from members expressing objection to the 10% tax on restaurants and car rentals.

Chief Minister Hughes charged that Anguilla’s “biggest dilemma is Britain which is not our friend” and that “the Governor is working against us… and using the IMF visit to emphasise all the British taxes.”

Mr. Hughes continued: “About this last thing about taxing restaurants and taxing car rentals: People’s car rentals are parked in their yard. All of them; so let them tax. Already, tourists are complaining that they cannot eat in Anguilla because it is too expensive…We are taxing ourselves to death and I want to say this, and I want Nat Hodge to report this: that the British is our dilemma. The British Government is not our friend. They are no asset to us. They are our liability…

“Every development project that has come to this island from the private sector, since I am in Government, the Governor has been sabotaging it – from Cinnamon Reef right down to Flag Luxury. I had a big fight the other day with him about Scrub Island because everything he tries to sabotage, and he is using one of my Ministers to assist him…The British is out to destroy the economy. I don’t know what the goal is, but [what] I believe is that they want the piece of land; they don’t want the people to live here…but we cannot survive under this kind of pressure. It is a deliberate war against the people of Anguilla, and we have to fight together because I told them that I will not be a robot. I will not go back to the House of Assembly and pretend that I can approve taxes of this nature because it can’t work.

“Now, basically, I want you to know that the British can do what they like with me. I am prepared to go to jail if they want to put me in jail, but these taxes will not see the light of day in my House of Assembly. They will have to get rid of me as they did beforebut they will not because it is ‘stupidness’. You impose taxes sometimes to control consumption [on goods] and a lot of the taxes that we have imposed have done just that. They have reducedconsumption of these commodities. That was not intended. It was to produce more money, but produced less because the people are not consuming these things.

“Right now I was going to the House of Assembly to reduce, just for three months, from now to the end of the year, Import Duty on motor vehicles and parts to see a little revenue in the Treasury. That I am trying to pass so that people can take advantage of it and bring in [vehicles].”

The Chief Minister, who referred to other matters, concluded: “We have a problem on our hands; and I am telling you that I will not make an ass of myself. I will not go to the House of Assembly and put [pass] any of these taxes (Applause).”

The Executive Director of the AHTA brought the meeting to a close stating that it had achieved its purpose, having been given the Chief Minister’s assurance about not imposing the 10% tax.