Premier announces initiatives to improve quality of life for all
GIS - Thursday, February 2nd, 2012 at 12:38 PM
Premier and Minister for Finance Dr. the Honourable D. Orlando Smith, OBE delivers a speech at a press conference earlier today, February 1, 2012. (Photo credit: GIS/ Ronnielle Frazer)
Wednesday, February 1 – Premier and Minister for Finance Dr. the Honourable D. Orlando Smith, OBE at a press conference this afternoon announced plans to lower the cost of goods for sale in the Territory, declare Gun Creek as an official port of entry and initiate a six-day per week ferry service between Tortola and Anegada.
He said one such way to do so is the lowering of the cost of goods by levying duty on Freight on Board (FOB) costs on all imported goods; as opposed to levying duty on cost, insurance and freight as is the current practise.
Honourable Smith told members of the press, “The fundamentals of my Government’s approach to economic recovery is that we minimise direct contributions into the economy by Central Government via transfers and direct participation and instead provide an enabling environment, so that the private sector as a more efficient and responsive vehicle, can be the main driver for economic growth and development.”
CLICK HERE TO READ THE PREMIER’S FULL STATEMENT
The Premier noted that many persons opt to shop overseas and spend an estimated $40 million annually and that this initiative may curb the ongoing expatriation of funds.
“If we keep that money in our economy, then our local businesses hire more, turn over their products faster and yes, also pay more taxes. A win-win for everyone,” Honourable Smith said.
Another initiative announced by the Premier is the official declaration of Gun Creek as an official port of entry on March 1.
Honourable Smith lauded Gun Creek as one of the best anchorages in the Caribbean and indicated the benefits to the economy saying, “This is a bold initiative that will require investments upfront, but which we are confident we can recoup in user fees, cruising permits and indirect taxes as a result of increased traffic in the Sound.”
Regarding the ferry service between Road Town, Tortola and Setting Point, Anegada, the Honourable Premier indicated Government’s plans to establish a regular six-day per week schedule for the duration of the tourism season initially, and its intended benefit is to stimulate the economy of Anegada through providing more access to the main island of Tortola. Presently, service is being provided three days a week.
The initiatives announced are an integral part of Government’s programme to improve the quality of life for the people of the Virgin Islands through the implementation of several economic strategies.
This article was posted in its entirety as received by bvinews.com. This media house does not correct any spelling or grammatical error within press releases and commentaries. The views expressed therein are not necessarily those of bvinews.com, its sponsors or advertisers.
21 Comments
Disclaimer: BVI News and its affiliated companies are not responsible for the content of comments posted or for anything arising out of use of the comments below or other interaction among the users. We reserve the right to screen, refuse to post, remove or edit user-generated content at any time and for any or no reason in our absolute and sole discretion without prior notice, although we have no duty to do so or to monitor any public forum. All comments posted on BVINews.com reflect the views and opinions of the commentators and not that of the management and staff. Click here for our full comment/user policy/ agreement.
Its a step in the right direction, but will not make a lot of difference. Here is an example with some very rough numbers.
Lets say it costs 5000 to ship a container of beer to the BVI. There are say 1500 cases in a container, this equals $3.33 per case in freight, the duty @15% that was paid on the freight aspect would have been $0.50 per case or just over 2 cents per bottle. That is the saving that will be made. Will you notice that in the supermarket? Most likely not.
The main problems remains, they are the high cost of shipping and the local merchants high mark-ups.
Doc / Premier need to stop sugar coating the situation and tackle the real issue of wholsalers also retailing. That is the real problem!!!! Then tackle shipping, duty!
This is another smoke screen.
For other bloggers info I supported indiduals runnning in past election not party straight.
It’s driven by the need to get rich quick “keeping up with the Jones”.
I agree with another blogger, the NDP need make some hard decisions that might prove unpopular with their “friends” and business partners but if they are serious those hard decisions will have to be made. Some establishments have as much as 600% mark-up-that is totally ridiculous and unconscionable. Are they (NDP) willing to regulate Rite Way and Kmark’s I doubt? That is the ugly side of politics- nepotism and favoritism at the expense of the majority -Sad.
We also need to seriously look at the dynamics of the population etc and look to whatever figures we have to make some informed decisions. The Virgin Islands have the potential to be a premier destination in every sense of the word but we as a people don’t like to be regulated and setting standards is appears abhorrent to us.
I am looking forward to a brighter BVI for my grandchildren but again, for this to happen we must embrace and institutionalize sustainable development.
Even if the savings trickle down to we the consumers, there will still be millions of dollars spent overseas because the BVI lacks in the breadth and depth of quality products that are available. Until competition is welcomed and anyone can open a business they want to people will have to continue to shop online or while visiting other destinations for the products they want.
Like you waiting for fowl-cock to geh teeth. It is impractical and bizarre to comtemplate a completely unregulated market.
Who are you? Sarah Palin?
How about taxing the monies leaving the country through money gram etc?
How about that increase in the non-taxable income that was promised by NDP
How about increasing minimum wage?
How about lowering the cost of food and looking into the high cost of electricity?
How about looking into child care cost?
How about consumer protection laws and perhaps an agency with and enforcement POWER?
How about that an active small business bureau?
I like all these ideas very much. This is innovative thinking.
Dr. Smith is a good man with a difficult mandate. It will be interesting to see what he does. I am really liking his responsiveness to his constituents.
This move by the government is going to speed up the exit of money out of this country. With the prices in the USVI and Puerto Rico cheaper than here and with the lower custom rates how are you going to stop people from shopping overseas. Example if KMart in ST Thomas has a sale on TV’s like a 42″ flat screen for $231.00 with the lower custom rate and even the ferry fare in cluded you might not even spend $300.00 for the TV. In the BVI even with a sale a 42″ TV is on average a thousand dollars so do the maths. I remembered when steel was exempted from custom duties the prices still sky rocketed to $1,600.00 per ton at one time. These incentives will not stop the bulk of the money going overseas. What I would have done is to offer the local businesses incentives to lower their prices in exchange for some form of subsidies. Maybe one way the government can help the local businesses is by offering subsidies on shipping they always use that as an excuse to raise prices. The prices for goods and services in the BVI is to high.
Subsidies for shipping? Are you kidding me? I think that:
a) The government cannot afford this, and
b) That will be an over reach, and too much government intervention.
Combined with some government intervention, market forces should be the ultimate determining factor relative to the cost of goods and services. That’s Economic 101.
As I mentioned in my post below, the custom initiate is a step in the right direction. What truly should determine market prices is supply and demand and competition in the market place.
As it stands right now, places like St.Thomas, P.R., and even Florida are more competitive even as you indicated you add in travel cost. The government’s goal should be to level the playing field as much as possible and render shopping abroad less desirable.
What is needed in the long run simply is to make goods and services as competitive as those places to stop the financial hemorrhaging.
What is really needed here is a study of our buying habbits, and what we buy abroad, and for the government to target those items with incentives to local businesses to lower their cost. That will be a wise move.
More incentives will be needed in the long run to achieve this imo, but again, I think this initial step is a good one in the right direction.
This is the typical role of government, banksters, pastors and politricksters. Use words to deceive man into thinking they are doing something for them. There is a mention of lowering the cost of goods. How will this method of levying(taxing)imported goods lower the cost of goods in the country? Mr. Smith did not say he will get local business to lower their prices. But tax the sheeple for shopping overseas where they may get cheaper prices. Read his words. Every government never creates money! They only take money from one group of people and move it to the other group to make you believe they are creating jobs and making changes. I hope this plan applies to the businesses who are importing goods also. And if it is to local businesses also, expect to get higher prices from the local market. The ferry to Anegada, is going to cost money up front and will have to run for a few years to get business in order to pay for the upfront cost. Nothing that is said will improve the quality for all. It is still the same as the scripture says “the rich ruleth over the poor and the borrower is servant to the lender”. Choose man and get a mans reward. Choose GOD and get to see through all the fraud!
Shalom!
Happy to see you are AWARE & AWAKE to what is going on around us!! The system as we know it is a complete fraud!
I wish to applaud the Premier on all three initiatives. Those involving the sister islands of Anegada and Virgin Gorda should help to stimulate the overall B.V.I. economy in the long run not to mention stimulate growth and commerce on those islands.
With respect to the new evaluation on custom fees, that’s an excellent move. I am pleased that he followed thru on this. As he said, about 40 million goes out the door when we go elsewhere to shop. Hopefully, local businesses WILL PASS ON THOSE SAYINGS to consumers, more money will stays in the local economy as desired, and the overall objective of this particular initiative would have been met in due course. The government has started the ball rolling and by this initiative has indicated they are willing to its part; it’s now up to local businesses to do theirs once those savings to them materializes.
I note the Premier said, this was his initial approach, so once can anticipate more. Meanwhile, these three initiatives are a step in the right direction. Keep them coming.
Thank God. Long over due.
Well these are good new, but the challenge to improve our quality of life is huge and becoming bigger… Read today’s news about American Airlines new cuts and the fact that they are going to eliminate, completely dissolve American Eagle before this 2012 summer… Big Terrible news for us… It will take long months if not years for AE be replaced, and this will be Catastrophic for our Tourism
Amerian Eagle can choose to oerate but under a different name. American Airlines( AMR) does not own AEagle They are separate airlines. Problem is that AA has/is disontinuing the majority of its Caribbean flights so they would have little need for a shuttle such as Eagle. Jet Blue is in the wings. This time would have been great for the BVI if it had its ducks in place to step in and fill the shoes of Eagle.
I detest people that has a opinion on everything just because they are aware of some data. Sure eventually AE will be substitute but it will take some time, and since this is practically the only reliable airline that serves us …my friend we will face tough times. On the other hand the fact that AA is canceling hundreds (HUNDREDS!!!) of flights from SJU will be connecting starting this tear to only six cities in USA it will affect us also since less people will end coming to visit us…. No my friend is no that easy it is a terrible news, either you want to see it or not
I wonder if Air BVI could be resurrected. After all, wasn’t it AE undercutting their prices that cause them to close? Perhaps this is a blessing in disguise.
And of course Jetblue and others will step in on SJU routes. Truth is, AA has not been a price leader or a service leader in over 10 years.
You know what …I’m starting to feel this administration but we will see….
sounds good on paper but will it trickle down to us? we all know that most of these merchants are greedy
which all?……all ndp’s?
GREAT MOVE…. LONG OVER DUE. ALSO DON’T FORGET PRIORITY #1, WHICH WAS STATED THAT THE VG MINI HOSPITAL WILL TOPPING THE LIIST. AND THE ROAD IN SPANISH TOWN IS DESPICABLE. IMAGIN TOURIST HAVE TO WALK IN MUD TO GET TO THE MARINA EVERYTIME IT RAINS. PUBLIC WRKS IS A WASTE OF TIME. KEEP UP THE GD WRK NDP. JUST DON’T FORGET VG AS AYO NORMALLY DO.
Post a Comment