Walwyn slams gov’t over absence of economic council

Opposition Leader Myron Walwyn has accused the government of breaching the Public Finance Management Act (PFMA) by failing to establish a strategic economic plan and an Economic and Fiscal Advisory Council more than two years into its term.

Speaking on his no-confidence motion in the House of Assembly this week, Walwyn argued that the government’s lack of economic planning had left the territory’s economy “flat on its back.” He pointed to provisions in the PFMA that require a strategic financial plan to be published within six months of an election.

“We have been here, we’re going on the third year and up to now the Minister of Finance has not laid a plan as required by the Public Finance Management Act, an act that governs his activities,” Walwyn stated. “We cannot be making laws and then think because we make them that we can then turn around and break them.”

The Act also allows for the formation of an Economic and Fiscal Advisory Council to provide guidance on economic and financial matters. Walwyn stressed that a prudent Minister would use such a body to gather advice from key sectors.

“Get an economic council in place so that people can guide you through,” he explained, adding that the council should include stakeholders from tourism, financial services, construction, and small businesses. Walwyn criticised the government for relying largely on increased fees to raise revenue.

“The plan is really to just raise fees on people and collect the money that way. But you need to have a proper strategic economic plan,” he said.

The absence of a clear plan, Walwyn argued, has left businesses struggling. He illustrated the gap in government understanding by recalling advice he once received about the difference between signing the front of a cheque and signing the back. Walwyn explained that those who sign the front — the business owners — grasp the real challenges of running enterprises, while those who sign the back — employees or consumers — may not.

He argued that without input from experienced businesspeople, government policies fail to address the struggles of local businesses.

“When you know you are signing the back of the cheque, talk to some people who are signing the front,” he argued. “Because they will tell you what is happening in the industry. They will tell you because they deal with it every day.”

Concerns over the lack of a functioning economic council are not new. Industry stakeholders have repeatedly called for stronger planning to support tourism and financial services — the twin pillars of the BVI economy. Comparisons have also been made with the United States Virgin Islands, where an Economic Development Council actively works to attract investments and strengthen economic growth.

Walwyn warned that without urgent action, the Virgin Islands risk continued stagnation.

“The law was deliberate in saying, put an economic council together. And up to now, we’re in our third year, and no such economic council has been formed, and it’s clear, because there’s no strategy for anything,” he argued.