Lorna Smith warns against ‘fronting’ in charter industry
Junior Minister for Financial Services Lorna Smith has warned against “fronting” in the charter boat industry as the government moves to ensure more Virgin Islanders benefit from the lucrative marine sector.
Speaking on the Talking Points programme, Smith said the government recently held meetings on Virgin Gorda and plans additional discussions on Tortola to address concerns about how some charter businesses operate.
Smith described the Virgin Islands as “the charter boat capital of the world” and said the territory wanted to strengthen local participation in the industry, particularly in day charters and water taxi services.
“It is important that British Virgin Islanders also benefit from the charter boat industry,” she stated.
Smith said the government was pleased with the work already being done by several local operators in Virgin Gorda and across the territory. She pointed to businesses involved in day charters, water taxis and dive operations as examples of successful local participation in the marine sector.
According to Smith, discussions with operators on Virgin Gorda concluded that there were enough locally owned vessels to serve the day-charter and water-taxi market.
“We established that in terms of those day charters and water taxis, there are sufficient BVIslander boats to serve the sector,” Smith said.
She also said customs officers and other authorities needed to broaden their oversight of marine businesses beyond searching for contraband. Smith argued that officials should also ensure vessels operate legally within the territory’s trade and licensing framework.
“Customs need to look beyond. Yes, looking for contraband is essential, but they also have to look at the way in which the boats operate to make sure that they are operating legally,” Smith stated.
Mission to reduce fronting
The junior minister said the Trade Department planned to increase dialogue with operators to reduce cases of fronting, where locals are allegedly used as nominal owners or representatives for businesses that are effectively controlled by others.
“I’m all for joint ventures. What I don’t like is fronting,” Smith stated. “And I don’t think that any of us can honestly say that fronting is the right thing to do. So the Trade Department needs to have more dialogue with the operators to make sure that this is minimised.”
The issue of local participation in the charter industry has been debated in the BVI for years, particularly as tourism and marine activities continue to expand. Concerns have frequently been raised by local operators about foreign dominance in parts of the sector, especially within day charters and water taxi services.
Smith said further meetings would be held in the coming weeks as the government continues discussions with operators and regulators. “We’re going to watch this space,” Smith said.
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What about fronting as a bank when you know that you don’t have any money and you take deposits from the government knowing that owners filed for bankruptcy? What would you have to say to this Lorna Smith?
Strruuupppeeess! More hot air !
You believe vessel owners will take one million dollars vessel and put i the hands ✋️ of them unmaners, rude,irresponsible young people some of them only get a licencs or stew certificate just because of friends or who their family is hmmmm.
then they can take their million dollar vessel somewhere else
She angered the rich expats with this one!
You think w—e young people have better manners than b—k young people – I can see through your hypocrisy and racism. It is time to clamp down on these racist yacht charters Lorna. We will survive without them – let them return to SA
Do people really think that fronting is new??? Certain BVI politicians made a fortune out of this, requiring it as a condition for the provision of trade licenses (for a nice percentage), so don’t say that the Trade Department isn’t fully aware of who has been fronting for whom for years.
I do believe the reason why you do not see too many locals as captains and other positions within the charter business is: A} Being on a sailing yacht or a powerboat for 7 days etc , you are in very close quarters and MOST people who charter boats are white and many of them do not wish to in such close quarters with local {blacks}racism still exists. B} Speech, it is very difficult to understand when some of our people speak, appearance many of our young people do not take pride in their appearance, personal hygiene may also play role. Address some of these issues and we may see some charges.
Why aren’t locals who are qualified/ skilled open their own yachting business or a open school / training for the youths..like other sports.
It could also be taught to interested youths at an age as a hobby.
Yachting / sailing ,water sports in these VI in my opinion,should be second nature to our youths and encouraged by parents and adults…the avenues should be open and readily available.
Because most BVI children are not taught to swim at a young age, so they don’t get involved in the watersports world at all. Very few get comfortable enough with the water to grow up to become captains. Those that do deserve every opportunity, once they show they are good enough at the job. But we as a society don’t value the ocean around us. We more fear it and that needs to be overcome by putting swim class in all schools from primary onwards.
Plus, of course, this makes us safer, once we understand and respect the sea better.
These racist companies need to be thrown out – we can live quite well without them – show some balls Premier
Shipping also needs to work with Labour Department to check work permits for some of the people getting captain license. The permit says laborer but somehow they are crew or captain for water taxi and day boats that wont pay local bvislanders.
My question is why in recent years government have taken the food out of the mouths of the local day charter operators by giving Trade Licenses to all the hotels and term charter operators to run their own day trips and water taxis.
These hotel and term charter operators make enough of revenue from hotel keeping and long term charters denying local their captains from making a living with their own boats.
These same businesses only employ expat captains mainly from SA.
You all here making noise but dont know what those SA staff go through. I AM from the BVI and I will never do that i see some of them does .
HELL TO THE NO.
A COIN HAS 2 SIDES.
Was she fronting millions the other day for a defunct bank,?
If you do not have connections in the system, someone you can call to look out for your interest even as locals, you get ignored and left behind.. Tell us about how we going get water regularly. Any how you will be soon gone.