Midterm by BVI Beacon

INSIDE:

In their Words Island Weekend & Culture — page 6

Thursday, November 21, 2013 |

The light that comes from wisdom never goes out.

| bvibeacon.com | 50 cents

High Court SPECIAL REPORT: MIDTERM, PART 1 OF 5 closed again At two-year mark, much done, much unfinished DPP wants media barred from all sex crime trials involving minors By ERIC VOORHIS evoorhis@bvibeacon.com Just as the last time he appeared before the High Court, former legislator Andre Penn was without representation when his matter began Monday morning. But his lawyer was on the way, he said. “Unfortunately, he’s still in Antigua, delayed, but he should be here by midday,” Mr. Penn said of his attorney, Lord Anthony Gifford, QC. “I humbly request that the matter be stood down until this afternoon.” Mr. Penn explained to the court that Lord Gifford would address “preliminary points” before the actual trial began. But before the matter continued, Justice Rajiv Persad chose to address another issue: an application from Director of Public Prosecutions Wayne Rajbansie to have the matter

Closed see page 23

NDP’s handling of economy examined By JASON SMITH jsmith@bvibeacon.com

One week before the 1980 United States presidential election, thenCalifornia Governor Ronald Reagan looked squarely into a television camera and asked voters to ask themselves a question: Are you better off today than you were four years ago?

It was a simple message, and it helped Mr. Reagan score a resounding victory over Jimmy Carter, the incumbent. Economic issues, high unemployment and stagnant growth had featured foremost during the campaign, much as similar concerns dominated the run-up to the 2011 election in the Virgin Islands, which brought the National Democratic Party to power after a four-year absence.

Midterm see page 27

CRIME RATES LEVELING OFF, STATISTICS SHOW Officials credit community efforts By JASON SMITH jsmith@bvibeacon.com A burglary spree in the first five months of 2011 hit Road Town hard, with Main Street businesses particularly affected. Restaurants, retailers, churches,

schools and this newspaper were among the victims. The official statistics of the Royal Virgin Islands Police Force show that the trend peaked in May 2011, with 35 non-residential burglaries recorded territorywide that month, a three-year record high. Then police launched a series

Crime see page 31

Students help release endangered iguanas Head start programme has boosted population By CHRYSTALL KANYUCK ckanyuck@bvibeacon.com

t takes about two years for an Anegada rock iguana to reach 20 centimetres in length or 400 grams — roughly the size to make it too big to be a meal for a cat or some other feral animal, said National Parks Trust officer Ron Massicott. “Our survival rate in the wild is about 80 percent, so that’s pretty good,” Mr. Massicott said Friday, when a dozen more of the critically endangered reptiles were released on the uninhabited western end of the sister island. Mr. Massicott was part of a team of NPT staffers gathered at the trust’s iguana head start facility in Anegada for release day. The facility serves as a nursery for hatchling iguanas, which get collected right after hatching and are raised in cages until they’re big enough “to fend for themselves,” he said. The number of rock iguanas Iguanas see page 36

Photo: CHRYSTALL KANYUCK Conservation biologist Kelly Bradley shows a Claudia Creque Educational Centre student how to properly hold an Anegada rock iguana that is about to be released into the wild.

Page 26 | Thursday, November 21, 2013 | The BVI Beacon

Special Report

Assessing the NDP’s progress E

leven days before the National Democratic Party triumphed at the ballot box on Nov. 7, 2011, candidates and their supporters gathered in the Sir Olva Georges Plaza to unveil the party’s manifesto. The 62-page document offered an

BY THE NUMBERS Economy 13 Pledges 3 Yes 5 No 5 Partial

Tourism: 14 Pledges 2 Yes 4 No 8 Partial

Financial Services 7 Pledges 4 Yes 0 No 3 Partial

Sister Islands 6 Pledges 2 Yes 1 No 3 Partial

extensive blueprint of the policies and goals the NDP planned to implement if elected. Assessing it at the mid-point of the NDP’s term in office gives residents a yardstick by which to see how well their elected officials have lived up to the goals

TRADE POLICY

NBB DATA

•

YES

PARTIAL

PLEDGE: Create a trade policy and consider “competition laws” as part of efforts to reduce “the high cost of living” in the territory. A cost-of-living review is ongoing, Premier Dr. Orlando Smith said, though he didn’t say when it would be finished: “It’s being worked on, and we’ll soon be able to bring it to the Cabinet.”

PAYROLL TAXES YES

PARTIAL

• PLEDGE: Review the current payroll tax exemption “with a view to increasing” it to $15,000. The review is ongoing, Dr. Smith said, and will “take some time. We have to do it deliberately and not with haste, because we have to determine that people will end up with a better standard of living, better contributions, etcetera.”

MINIMUM WAGE YES

NO PARTIAL • PLEDGE: Review whether or not wages have kept pace with inflation, and consider raising the minimum wage of $4 per hour “to enable individuals and families to meet basic needs.” “That hasn’t begun as yet,” Dr. Smith said. “That still needs to be considered.”

INVESTMENT INCENTIVES

15 Pledges 3 Yes 6 No 6 Partial

DUTY REVIEW PARTIAL

• PLEDGE: The National Business Bureau will keep statistics “such as macro and micro economic data on all aspects of business, legal, financial and demographic information” so businesses can make better investment and expansion decisions. The Department of Trade and Consumer Affairs has hired an economist who is currently at work revamping the DTCA’s trade licence database as a first step to improving statistics, said acting DTCA Director Kevin Smith.

NBB FINANCING YES

PARTIAL

• The NBB will provide “operational and financing support” to businesses and establish a banking commission “to review commercial banking policies.” The NBB has set aside $5.1 million to finance a loan guarantee programme working alongside the National Bank of the Virgin Islands. A Sea Cows Bay-based scrap metal recycling firm got the first loan, officials said in August. But Dr. Smith said work is still being done to establish the banking commission.

BUSINESS COMMUNICATION NO

PARTIAL

• PLEDGE: “Establish mechanisms for regular and constant contact with the business community.” Financial services and tourism industry practitioners regularly meet with officials through events such as the BVI Tourist Board’s Marketplace events and the Financial Services Commission’s Meet the Regulator forums, both of which predate 2011. Additionally, the premier’s “economic advisory committee” includes representation from the business community, Financial Secretary Neil Smith said.

CONSUMER CONSULTATION YES

PARTIAL

• PLEDGE: “Review and improve the marketing of the investment incentives currently available.” A review of the Hotel Aid Ordinance and other laws that encourage residents and foreigners to invest in ongoing, Dr. Smith said, adding that new laws may come before the HOA in 2014.

YES NO PARTIAL • PLEDGE: Re-establish National Business Bureau The NBB was restarted within the government’s first 100 days in office.

YES NO PARTIAL • PLEDGE: Review the customs tariff regime “with a view to keeping more money in the pockets of our residents.” An amendment to the Customs Management and Duties Act passed in 2012 was designed to lower overall costs for businesses by allowing them to calculate duties solely on the cost of the goods, not the cost of goods plus freight and insurance charges. Further review of the duty regime is under way, Dr. Smith said.

FIRST-TIME DUTY YES

PARTIAL

• PLEDGE: Institute a regime of duty-free exemptions for firsttime homeowners who have purchased their supplies through local businesses. A amendment to the Customs Management and Duties Act passed in September 2011 under the previous government, which was instituted a duty-free exemption for first-time homeowners and certain other investors. But the legislation does not require goods to be procured through VI merchants.

LIGHT MANUFACTURING YES NO PARTIAL • PLEDGE: Encourage and promote “light, environmentallyfriendly manufacturing and assembly” and provide “technical, marketing and financial assistance to entrepreneurs” in these sectors. No specific incentive legislation has been passed. The NBB offers support to all businesses and will include this sector as a priority under the bureau’s loan guarantee programme, Mr. Smith said. The NBB may hire a trainer to give a course on opportunities in the field for entrepreneurs, he added.

SOLAR INCENTIVES YES YES

BUSINESS BUREAU Crime and Law

YES

8 Pledges 5 Yes 1 No 2 Partial

9 Pledges 3 Yes 1 No 5 Partial

made on each pledge. Information about pledges that fall under the portfolio of Premier Dr. Orlando Smith are presented this week. Pledges relating to other ministers’ portfolios will be presented in the weeks to come.

ECONOMY

International Affairs

Government Reforms

they set for themselves. To assist in this assessment, this newspaper has identified 200 specific policy pledges listed in the document. Beacon reporters have interviewed ministers, public officers and others in recent weeks to verify the progress

PARTIAL

• PLEDGE: Hold “public consultations with consumers,” enlisting the help of business groups such as the BVI Chamber of Commerce and Hotel Association “to get the public’s perspective on issues of concern.” While no consumer-specific consultation meetings have been held publicly, the cost of living in the territory and similar themes have been raised during ministers’ occasional “On the Road” meetings.

PARTIAL

• PLEDGE: Enact legislation that will exempt alternative energy products like solar panels and wind turbines from import duties. This hasn’t occurred. But in the 2013 Speech from the Throne, Governor Boyd McCleary said that the government still plans to review laws to allow the wider use of alternative energy in the territory.

The BVI Beacon | Thursday, November 21, 2013

Special Report

Midterm from page 1

TOURISM BRANDING COMMISSION

CONVERSION STUDIES YES

PUBLIC RESTROOMS

PARTIAL

• PLEDGE: Develop and implement “conversion studies” to measure the effectiveness of tourism advertising campaigns in North America and Europe. The BVITB had a marketing retreat last week, according to Ms. Flax-Mars. ”We’ve looked at ways we can measure [effectiveness],” she said. She added that the board is hoping to utilise online services and new technologies to determine how visitors are exposed to the territory and where they are coming from.

YES

NO PARTIAL • PLEDGE: Create a “Branding Commission” that will develop and manage a unified brand for the territory in tourism, financial services and investment promotion. The plans to co-market the territory’s two core industries are ongoing, Premier Dr. Orlando Smith said, noting that the recently opened Asia Office will soon include staffers to promote tourism and investment opportunities in the territory, not just financial services. For now, though, a formal commission hasn’t been established.

YES

NO PARTIAL • PLEDGE: Develop a programme to install restrooms in public areas for visitors and residents. The management of public restrooms in the territory, some of which are currently run by the BVITB, will be transferred to the Ministry of Natural Resources and Labour in 2014 as part of a plan to centralise their management, Ms. Flax-Mars said.

CUSTOMS PRE-CLEARANCE YES

YES

PARTIAL

• PLEDGE: immediately “develop an aggressive strategy to increase the number of available seats” into the VI, while looking particularly at the USVI and regional hubs like St. Kitts and St. Maarten that feed in passengers from European markets. Increasing airlift was always an integral part of government’s plan to increase visitor arrivals but the issue became more urgent when American Eagle Airlines halted its Caribbean routes in April, Ms. FlaxMars said. She added that smaller carriers Seaborne, Cape Air and VI Air Link have stepped in to fill the void on the San Juan to Tortola route. “Yes, we’ve had our challenges, and any destination would have had challenges given what American Eagle meant to us,” she said. Additionally, she added, officials are working to ease the territory’s reliance on the troubled airline LIAT for air service from Eastern Caribbean islands by negotiating with an alternate carrier, which she declined to name.

PARTIAL

• PLEDGE: Develop a “management system” for the territory’s dive sites with help from the dive companies. No new dive management system has been created. But sites continue to fall under longstanding guidelines established by the National Parks Trust and the Department of Conservation and Fisheries.

EVENTS CALENDAR YES NO PARTIAL • PLEDGE: Develop an events strategy with an annual calendar of events to bring in visitors during slow and summer seasons. The events calendar has been created and published. “The reason we put the calendar together is what we sort of found was the industry and the islanders themselves didn’t know from month to month what was going on. Our offices worldwide as well [lacked] enough lead time to pursue marketing and PR angles for certain events,” Ms. Flax-Mars said.

MINISTRY OF TOURISM

CULTURAL DISPLAYS

YES

PARTIAL

• PLEDGE: Establish a Ministry of Tourism as part of a larger Ministry of Economic Development. While no formal re-organisation has occurred, the Premier’s Office developed a tourism liaison officer position in 2011. The office helps coordinate more effectively with the BVI Tourist Board, Dr. Smith said.

• PLEDGE: Encourage the “presentation of local culture in our hotels and resorts.” This isn’t yet occurring. However, Ms. Flax-Mars said that the BVITB is willing to act as a liaison between the properties and the Ministry of Education and Culture or other agencies to make this happen.

CONFERENCE TOURISM

E-BORDERS

YES NO PARTIAL • PLEDGE: “Recognize the need” to promote the VI as a destination for conferences, seminars and training. Multiple privately run conference and meeting facilities on Tortola have come on stream in recent months, and the territory has hosted several major conferences, including a Rotary District conference earlier this year that brought over 500 visitors to the VI.

• PLEDGE: Institute an 'e-borders' programme through which airline and ferry passengers are checked in to the immigration and customs system using companies' data prior to their arrival. This has not occurred. But Dr. Smith said at a recent press conference that the initiative is still being considered.

YES

PARTIAL

In November of that year, voters unhappy with the Virgin Islands Party’s leadership and handling of the economy opted for change, granting the NDP a nine-seat majority in the House of Assembly.

Promises of change

DIVE SITE MANAGEMENT

INCREASE AIRLIFT

YES

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PARTIAL

• PLEDGE: Investigate the establishment of a US Immigration and Customs pre-clearance facility in the Virgin Islands at the airport and at the new West End ferry terminal. “We have actually begun the engagement through the inter-Virgin Islands conference,”Dr. Smith said. “We have not made as much progress as I’d like to see, but we’re continuing engagement towards that.”

TOURISM DATA YES NO PARTIAL • PLEDGE: Develop a “first-rate” research and statistics capability to provide information about the tourism industry. Ms. Flax-Mars said the board is working with the Development Planning Unit to write a Cabinet paper about how the two entities can work with agencies such as customs, immigration and the BVI Ports Authority to better track visitor information. “The US is our core market. We know that. But we don’t have the fine numbers. We’re working with DPU to get that sorted out,” Ms. Flax-Mars said.

TOURISM OWNERSHIP YES NO PARTIAL • PLEDGE: Develop a strategy for the ownership by BVIslanders of the support ancillary services, which will be required to support new investment in resort and hotels. One example of the strategy, a proposed government-led development at Gun Creek, Virgin Gorda that would include retail spaces operated by local residents, was unveiled at an April public meeting. The proposal is still in the planning stages and received lukewarm support from the public at the meeting.

TOURISM RESEARCH YES

PARTIAL

• PLEDGE: Conduct primary research into the carrying capacity of the territory as it relates to the destination’s physical tourism assets, natural and man-made, such as beaches, national parks and protected areas, historical sites and so on. Carrying capacity at popular tourist locations such as The Baths and Cane Garden Bay is being examined by the National Parks Trust, Ms. Flax-Mars said.

Since then, change has come, though many residents seem critical of the results. At the mid-point of the administration’s term, Premier Dr. Orlando Smith was asked in an interview a question similar to the one posed by Mr. Reagan: Are VI voters better off now than they were two years ago? “Times are not as good as they have been and they could be,” the premier acknowledged. But then he stated that his government is “working assiduously to make sure that there’s improvement in the economy,” greater employment and additional investment. “I can’t say now at this point in time that people are better off than they were four years ago,” he said, adding, “I’m hoping by the end of four years that I can say that.” Dr. Smith, who is the minister of finance and tourism, then listed a series of changes he counts among his government’s economic achievements to date. These include restarting the National Business Bureau; “rebooting” tourism to increase visitor arrivals; promoting the financial services sector in new markets; and instituting comprehensive reforms to overhaul the way government plans, buys goods and services, and spends and saves tax dollars.

A different viewpoint Opposition members, though, have harsher words to describe the past two years. “Our economy is in freefall and has been so for a while, and is now depreciating at so alarming a rate that it is unsettling,” opposition member Julian Fraser (R-D3) said in a June statement. His colleague Alvin Christopher (R-D2) struck a similar tone when asked Monday to gauge the government’s handling of the economy. “It has gotten worse than it was two years ago,” Mr. Christopher said. “Things are much harder. It’s

Midterm see page 28

Page 28 | Thursday, November 21, 2013 | The BVI Beacon

Midterm from page 27

much more difficult for the working man to pay his bills.” Statistics show that economic performance continues to be relatively flat. The territory’s gross domestic product barely grew in 2011, with a 0.64 percent increase, and shrank by an estimated 2.1 percent in 2012, a far cry from the estimated eight percent growth experienced in 2007 before the global economic downturn. At the same time, inflation has increased slowly, at a rate of about two percent annually during the past two years. Meanwhile, indicators tracking the health of the territory’s two economic pillars, financial services and tourism, paint a picture of mixed growth. The number of companies incorporated in the VI, a key measure of the health of the financial services sector, has been trending downward in recent years from a peak in 2011. In the first six months of this year, 29,144 companies were formed, about 4,000 fewer than the same period two years ago. And in tourism, annual overall visitor arrivals, which Dr. Smith said he wanted to see rise by ten percent over four years by 2015, saw instead a 10.8 percent drop from 2011 to 2012, a change mostly attributable to the decline in cruise ship passenger traffic. (During the same period, yacht and overnight arrivals rose by four percent.)

Unfinished business Meanwhile, construction hasn’t started on two costly projects leaders have touted as vital to improve tourism: expanding the runway at the Terrance B. Lettsome International Airport to accommodate larger jets and lengthening Road Harbour’s cruise ship dock to bring in bigger ships. Dr. Smith cited both projects in his 2013 budget address last December, asserting that they would “contribute in a noticeable way to GDP growth in 2013.” It’s unclear, though, when work on either will get going, when they will be completed, or how much they will cost. Several promised reviews that could put more money in consumers’ pockets — a proposed trade policy that may recommend competition laws be instituted; an assessment of minimum wage, which is currently $4 per hour; and a proMidterm see page 29

Special Report

FINANCIAL SERVICES INDUSTRY STANDARDS YES

SISTER ISLANDS

SHIP REGISTRATION

PARTIAL

• PLEDGE: Ensure compliance with established and emerging global standards and initiatives within the financial services industry. During the past two years, legislators have passed 11 laws related to the financial services industry, modernising the territory’s trademark and trust laws and updating rules governing company incorporation, tax information exchange, and investment businesses.

YES

PARTIAL

• PLEDGE: Target ship registration as a growth sector for the future. Efforts to broaden the financial services industry by developing the ship registration subsector are ongoing, although the VI Shipping Registry is still not generating sufficient revenue to offset its cost, officials said in the 2013 Standing Finance Committee deliberations. The VISR is focusing on “aggressive marketing,” and hopes to open a presence in the VI London Office by next year, officials said.

PARTIAL

• PLEDGE: Develop and implement a medium- to long-term strategic plan, including legislative and policy changes that mitigate identified gaps and foster the sustainable development of the industry. The plan is being developed, a task made difficult by the pace and manner that the financial services industry is changing, according to Financial Secretary Neil Smith. “It’s being worked on, but it’s a challenge,” Mr. Smith said of the plan, adding, “We’re under pressure to have something out, but I don’t know when that will be.”

YES NO PARTIAL • PLEDGE: Engage in “more formal dialogue” with the Financial Services Commission to keep government officials better informed about the industry’s prospects. A “standing select committee” of House of Assembly members was appointed in May to “periodically consider, review and recommend emerging international standards” that may affect the industry.

BRIC PROMOTION NO

PARTIAL

• PLEDGE: Review the territory’s financial services marketing strategy “in the context of ‘Brand BVI’ with a view to” obtain more business from Brazil, Russia, India and China. Dr. Smith said that the BVI Asia House, which opened in September, is key to expanding the territory’s already substantial presence in those markets. Additionally, the premier has travelled twice to Brazil this year as part of efforts to promote the VI’s tourism and financial services industries.

COMMERCIAL COURT

YES

PARTIAL

PLEDGE: Increase government support for the expansion of Virgin Islands ownership of high-end boutique-style hotels, villas and guesthouses on the sister islands. The BVITB has increased its programmes to help sister island resorts in recent years, offering training, assistance with marketing, and reservations systems, Ms. Flax-Mars said. No specific financial programmes are currently being offered, though funding may be available through the National Business Bureau, she added.

ANEGADA AIRLIFT

YES

PARTIAL

PLEDGE: Improve air service to Anegada. VI Airlink now offers scheduled flights to Anegada several times per week, re-establishing regular air service to the island. However, the island’s Auguste George Airport closed briefly earlier this year due to issues with the facility’s firefighting equipment.

DISTRICT NINE PLAN YES

PARTIAL

PLEDGE: Government will institute the “District Nine action plan” for Anegada and Virgin Gorda. The plan includes a series of capital projects such as the VG “mini-hospital;” the separation of VG’s passenger and cargo dock facilities; and a government-led economic development at Gun Creek. Plans for many of the proposals are in the works.

JVD VISITOR CENTRE YES NO PARTIAL • PLEDGE: Build a visitors’ centre at Great Harbour, Jost Van Dyke. Construction on the centre is under way and is being funded through the Premier’s Office, Ms. Flax-Mars said. “We’re working with the contractor to get a definitive date for completion,” she said, adding that she hopes it will be open this season.

PARTIAL

• PLEDGE: “Create a Job Placement Commission to facilitate efficient, appropriate and equitable placement in the financial services sector.” No organisation has been created to specifically address these concerns for the financial services industry, but the Ministry of Natural Resources and Labour and the Ministry of Education and Culture have launched general employment programmes recently. “I don’t know that a commission has been established, but the problem is being looked at,” Mr. Smith said of efforts to place belongers in high-level positions in the financial services industry.

FSC DIALOGUE

YES

JOB PLACEMENT

YES NO PARTIAL PLEDGE: Promote the development of “environmentally compatible” resorts on the sister islands. No specific incentive legislation has been passed. But BVITB Director Sharon Flax-Mars said her agency regularly offers support to properties that want to adopt environmentally friendly procedures with training.

VILLAS AND HOTELS

STRATEGIC PLAN

YES

ECO-RESORTS

YES

PARTIAL

• PLEDGE: Ensure that the territory’s Commercial Court has the resources to remain at the “cutting edge” among other offshore jurisdictions. The Commercial Court’s budget was increased to $636,000 in 2013, up from $515,000 in 2011. During the Organisation of Eastern Caribbean States’2013 Law Fair, the court was praised for its efficiency.

DUTY-FREE ZONES YES

PARTIAL

PLEDGE: Create economic zones on Anegada and Jost Van Dyke for any business, with exemptions from taxes and customs duty for five- to 20-year periods. Customs legislation authorising these zones has not been passed, although a review of the duty regime is ongoing, Premier Dr. Orlando Smith said.

The BVI Beacon | Thursday, November 21, 2013

Special Report

INTERNATIONAL AFFAIRS UK DIALOGUE

FOREIGN EXCHANGES YES

PARTIAL

• PLEDGE: Continue foreign office exchange programme. Additionally, train two Virgin Islanders each year for the next four years in areas including negotiating and diplomacy so that there will be a cadre of professionals to act on behalf of the territory. A exchange programme that temporarily assigns public officers to the BVI London Office has continued. Additionally, a similar programme will soon start at BVI House Asia in Hong Kong, according to Sylvia Moses, the director of the International Affairs Secretariat. Mr. Moses said the diplomacy and negotiation training initiative is ongoing.

INTERNATIONAL AFFAIRS YES NO PARTIAL • PLEDGE: Restart the International Affairs Secretariat. The office, which coordinates the territory’s regional and international affairs, was restarted shortly after the 2011 election.

REGIONAL AFFAIRS YES

PARTIAL

•PLEDGE: The government will continue to work with the Organisation of Eastern Caribbean States and the Caribbean Community in the areas of social services and economic development. Cooperation with the regional groups is ongoing. A Caricom team visited the VI earlier this month to assess the territory’s needs. Additionally, Dr. Smith and other officials have regularly represented the territory’s interests at OECS forums.

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territory’s “petty contractors” with ample work. “Before the general election of 2011, the [Third] District enjoyed growth at a level on par with the rest of the territory, but, as you can see, such is not the case, for there is nothing happening in the district,” he told a group of constituents at a June public meeting. The opposition member argued that government should provide an infusion of capital into the economy to stimulate growth.

Different opinion

But Dr. Smith said he disagrees with that approach. “It is thought by some that in YES NO PARTIAL order to govern you simply have to spend all of the money that gov• PLEDGE: Have regular dialogue with the United Kingdom OREIGN OFFICES ernment has in reserves and do government in an “enhanced relationship where British Virvery little to spur economic ARLIAMENTARY GROUP gin Islanders would continue to progress.” growth,” Dr. Smith said. “I have a As past administrations have done, the National Democratic Y ES N O P ARTIAL different opinion.” Party government has continued to meet regularly with UK offiIn addition to the increased recials about the territory’s governance. In addition to providing PLEDGE: The BVI London Office will “give priority” to estabserves, the April 2012 signing of comments that were incorporated into the 2012 White Paper that lishing a parliamentary group in the European Union that the Protocols for Effective Finanoutlines the UK’s relationship with its overseas territories, Premier will represent the VI’s interests before that body. Dr. Orlando Smith’s government negotiated the Protocols for EffecNo group has formally been created, Ms. Moses said, but the ini- cial Management, an agreement with the United Kingdom, has tive Financial Management, an April 2012 agreement that regutiative is a “high priority” for the London Office in 2014, and contact lates the territory’s spending practices. with some members of the European Parliament has been initiated. placed further constraints on how government conducts its finances, prompting a management model COLLABORATION EVIEW S that is more focused on transYES NO PARTIAL YES NO PARTIAL YES NO PARTIAL parency and long-term planning. • PLEDGE: Establish foreign offices in the United States, Brus• PLEDGE: Collaborate with leaders of other overseas territoThe International Affairs Secretariat will review the terriThe protocols have tied govsels, Belgium and Asia “with the objective of attracting more ries to arrive at common positions in relation to “attacks and tory’s Tax Information Exchange Agreements in order for the ernment’s hands in some respects, business to the territory.” challenges” against the financial services industry and other VI to obtain additional benefits from partner countries. requiring tendering and cost-benBVI House Asia, the territory’s Hong Kong office, was inaugumatters of concern. The Ministry of Finance’s International Tax Authority is reefit analyses on projects greater rated in September. Plans are in the works to integrate financial Dr. Smith and other OT leaders met in September in Gibraltar sponsible for the territory’s TIEAs, Financial Secretary Neil Smith than $11 million, for instance. services and investment promotion programmes at the BVITB’s to discuss financial services, economic diversification, governance said, adding that a review isn’t as relevant as it was in 2011 beAt the same time, a series of New York office, Dr. Smith said, adding that a Belgian office is still and other issues, officials said. The summit helped to plan the cause the regulatory landscape has changed. Instead of countries other reforms, such as the switch under consideration. agenda for the Joint Ministerial Council meeting, which will be signing individual TIEAs with each other, the trend is more toward to an outcome-based budget held later this month in the UK. multilateral agreements with multiple countries, he said. process and a review of accounting procedures at the Treasury DeMr. Christopher said that in as a territory not building up a re- partment, have greatly improved ment projects such as buildings and from page 28 infrastructural improvements has the 18 years he’s been in govern- serve so that we can have some- the reliability of government’s fifallen steadily under the NDP gov- ment, the anticipated spending thing to fall back on if there’s a nancial information, according to posal that would raise the $10,000 ernment. In 2010 government’s amounts typically fall short and serious need to.” Financial Secretary Neil Smith. payroll tax exemption to $15,000 “capital expenditure” budget stood have to be corrected by passing But some opposition members “When I look at the informa— haven’t been completed. Nei- at over $35.3 million. But by 2011 multimillion-dollar supplemen- argue that government’s fiscal re- tion coming out of Treasury now, ther has a promised review of the that figure was cut to $23.3 million tary appropriation provisions years straint is limiting the territory’s when I look at the reports I get off territory’s investment incentive and fell to $17 million in 2012, as a after the fact. economic recovery. Mr. Christo- the system, I am 99.99 percent legislation, which Dr. Smith said result of government “consolidating “That is a practice that has pher said that government spend- confident that that is the situation would come before the HOA next its position of making more effi- caused every administration to ing plays a vital role in circulating that appears,” he said. “The year. cient and targeted high-value ex- leave these enormous bills, as I money through the economy, and biggest benefit is that you’re able In other cases where govern- penditures,” Dr. Smith said in the would call them — $20 million, investment in infrastructure gives to make better decisions, whereas ment may take the role of devel- 2013 budget address. $40 million — behind. And the small business owners the confi- before you’d make decisions but oper — creating retail spaces to NDP government was no differ- dence they need to make long- you’d make allowances for errors.” Opposition concerns rent to Virgin Islanders at Gun Procedures are now being Asked about his government’s ent,” the opposition member said. term investments. Creek, Virgin Gorda; a $600,000 “Road conditions are terrible. performed according to internaaccomplishments to date, Dr. Financial footing plan to erect bathrooms and venSmith spoke first about his adBut Dr. Smith said paring If government leaves them as is, it tionally recognised standards, Mr. dor stalls at Smugglers Cove; and ministration’s efforts to “repair” back spending has put the terri- sends a terrible signal to the pri- Smith added. Additionally, plana proposal to move the road at public finances. Within a month tory on better financial footing to vate sector in the Virgin Islands,” ning and prioritising of projects Brandywine Bay to allow for deof taking office in November borrow in the future for big proj- he said. “Government must be are being paired to the NDP manivelopment on the beach there — 2011, Dr. Smith described the fi- ects such as the airport expansion, seen to be doing what government festo, the financial secretary said, no construction has started. adding that elected leaders ultimately nancial situation he inherited as and to weather unexpected short- is supposed to do.” Other projects, notably the JanAnd Mr. Fraser, a former com- set the agenda even though public “grim,” asserting that he met a $51 falls in revenue. uary completion of the $2.5 million million deficit upon taking office, “Most countries in the world munications and works minister, officers are charged with executing remodeling of the Crafts Alive Vila claim that has been vigorously try to build up a reserve,” he said. has repeatedly asserted that gov- their duties without regard to lage, have gone smoothly. disputed by opposition members. “And there’s no justification for us ernment isn’t commissioning Overall spending on governMidterm see page 30 enough small projects to keep the

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TIEA

Page 30 | Thursday, November 21, 2013 | The BVI Beacon

Midterm from page 29 political allegiance. “I believe I’m correct in saying that there’s no other Caribbean government that has made the leaps and bounds in planning that we’ve made: fiscal planning, tying political agenda to a medium-term development plan, and developing a fiscal strategy out of that,” he said.

Financial services Planning and efforts months in the making have also characterised government’s efforts to diversify the financial services industry. Mr. Smith said that some work has been done but more is needed on a medium-term strategic plan to develop new areas for growth. “In order for it to be viable in the future, it has to change,” he said. “If it does not change, the BVI financial services industry in the future will disappear.” Pressures from large economies looking to crack down on perceived tax evasion have targeted offshore centres in the past several years, but Dr. Smith said he remains committed to growing the industry. Those efforts have been assisted by the opening of BVI House Asia in Hong Kong and efforts to crossmarket the VI as a destination for high-end tourism and financial services, especially in emerging markets, according to the premier. “I know there have been leaks and I know there has been negative press, but we have spent some time assuring the general community that first of all it’s important for us and secondly that we have established a very good regulatory regime,” he said. Asked what measures are being undertaken to diversify the industry, Dr. Smith pointed to the Arbitration Act, which received its first reading in the HOA Tuesday. Financial Services Commission Managing Director Robert Mathavious has said he hopes the new law will position the territory to become a global leader in alternative dispute resolution.

Tourism Dr. Smith said his government is also working “assiduously” to strengthen the territory’s tourism product, with infrastructural improvements, new investments such as a recently proposed deal for a UK developer to invest up to $100 million in the government-owned Prospect Reef Hotel, and a change in approach at the BVI Tourist Board. BVITB Director Sharon FlaxMars said the board has done some internal reorganising and reexam-

Special Report

GOVERNMENT REFORMS OUTPUT BUDGETING

BIMONTHLY FORUM

PLAN INTEGRATION

YES

YES NO PARTIAL • PLEDGE: Integrate the budget, the Public Sector Investment Programme and the National Physical Development Plan. The integration isn’t currently occurring fully, Mr. Smith said. The budget and the PSIP, which outlines government’s investment goals, are being developed in tandem, but more integration is to be done with the development plan, he added.

NO PARTIAL • PLEDGE: 1) Make permanent secretaries and their department heads directly accountable to ministers for outputs and efficiency in their departments. 2) Establish specific short-, medium-, and long-term output objectives. 3) Establish financial accountability based on accrual accounting. “We’re not 100 percent there, but we’re getting there,” Financial Secretary Neil Smith said. An “output budget” would list specific objectives such as how many miles of roads would be completed in the coming year. Policymakers decided that a “programme budget,” which sets specific but less detailed goals, was more appropriate for the Virgin Islands, and this has been implemented, Mr. Smith said. He added that short-, medium- and long-term outputs are being integrated into the budget process. Government’s switch to an “accrual” method of accounting from the current cash-basis system is “well under way” but will take more time for the full transition to occur, he said.

NO PARTIAL • PLEDGE: Introduce a “a bi-monthly high level forum” with ministers, public service leaders, non-profit organisation heads and other specialists on “major topics of national interest.” The premier has established an “economic advisory committee,” including government representatives and outside privatesector participants, Mr. Smith said, adding that the format differs slightly from the manifesto’s pledge. “But there is a function in there that is trying to get things together to advise [the premier] on,” Mr. Smith said.

MINISTERIAL RESTRUCTURING

TWO-STEP BUDGET

YES

PARTIAL

• PLEDGE: Restructure and reconfigure ministries to make them more “effective and efficient.” No major restructuring has been announced. However, soon after the National Democratic Party named its Cabinet members, some ministerial responsibilities were reassigned. For instance, the Airports Authority was relocated from the Ministry of Communications and Works to the Ministry of Natural Resources and Labour. And the Wickhams Cay Development Authority was transferred from the Premier’s Office to the MCW.

DEVELOPMENT PLAN YES YES

PARTIAL

• PLEDGE: Introduce a two-step budget process where the permanent secretaries and the department heads present their needs by midyear so that legislators can pass the coming budget by year’s end. This process is largely in place, according to Mr. Smith. The budget process now involves the minister of finance delivering a “budget policy statement“ to the House of Assembly, followed by the creation of a medium-term fiscal plan and the production of the detailed budget document.

ined its marketing strategy. She added that the board is working with other departments to improve the amount of data available about the territory’s tourists to better inform planning and gauge the effectiveness of advertising efforts. “We need to be able to drill down by city, by zip code, by age group, time that they travel, who’s traveling and with kids,” Ms. FlaxMars said. Efforts to improve the overall product are also ongoing, and a campaign to improve customer

PARTIAL

• PLEDGE: Ensure that there is a National Physical Development Plan “by mid-2013.” Work on the plan is ongoing, recently appointed Chief Planner Gregory Adams said in June. It is expected to be finished by 2015 and will guide the territory’s planning until 2030, he said.

service territory-wide has been launched, she added. However, Mr. Christopher, the opposition member, said he believes that the BVITB’s tourism promotion efforts haven’t produced the effects he’d like to see. “For the last three years, that aggressive approach was not there,” he said, adding that he wants to see more ads online, on television and in magazines marketing the territory. But Dr. Smith said his party’s “reset” in tourism has been effective, citing a recent rise in overnight and

BUILDING PERMITS YES

PARTIAL

• PLEDGE: Undertake a thorough review of the building permit approval process in order to reduce the amount of time it takes to get approved. The procedure “has been refined and continues to be refined,” Dr. Smith said, adding that the Town and Country Planning Department has eased the backlog of unprocessed applications.

TRADE LICENCES YES NO PARTIAL • PLEDGE: Review “existing policies and procedures” in applying for a trade licence to reduce the time and “cut the red tape.” A 2012 review of the trade licensing process reduced the number of employees at the Department of Trade and Consumer Affairs who had to sign off on each application. As a result, the agency approved 451 applications in the last four months of 2012 compared to the 508 processed during the eight months prior to the change, according to the 2012 DTCA annual report.

PUBLIC SECTOR REFORM YES

PARTIAL

• PLEDGE: 1) Provide a “central framework for Policy and Ministerial Guidelines within which departments should operate.” 2) Create a “procurement agency” to achieve “value for money.” 3) Establish “best practices” and train staff to improve purchasing. In line with the new planning efforts, the Premier’s Office is now functioning as a coordinating office issuing guidelines for wider government, Mr. Smith said. The MOF has a Procurement Unit, which predates 2011. Additional procurement training of public officers is ongoing.

charter yacht visitor traffic. He added that efforts to extend the cruise ship pier continue in the wake of a failed deal with Tortola Ports Partners, which he maintains will reverse the recent steep decline in cruise tourism. “I know we’ve hit snags, but there will be snags in any negotiation and we’re working towards overcoming those,” he said. In the final moments of a 45minute interview at his Central Administration Building office last month, Dr. Smith paused briefly

before answering a question about what lessons he learned from governing the VI during 2003 to 2007 that he’s put to use this term. “We need to focus on building the economy — basically an inclusive economy so everybody in the economy can benefit,” he said. “Secondly, we learned that it’s the communication branch of government that’s very important: so that people can learn what government is doing; so government can get the support of the people. That’s extremely important.”

The BVI Beacon | Thursday, November 21, 2013

Special Report

Crime from page 1

CRIME AND LAW NATIONAL ID PROGRAMME

POLICE AND PRISON STAFF

CCTV CAMERAS

YES

YES NO PARTIAL • PLEDGE: Place surveillance cameras in “strategic areas of the territory.” A network of 15 cameras and a control room at the Road Town Police Station has been built and tested. Relevant legislation has been passed, but additional privacy training of police, customs, immigration and other leaders needs to take place before the system becomes fully functional, Mr. Morris said. He added that he hopes everything will be in place to initiate the system early next year.

PARTIAL • PLEDGE: Provide “all of the necessary tools to prevent crime,” including fully staffing the prison and the police force. “The police are not up to full strength, nor is the prison, and that’s a matter we need to look at,” Governor Boyd McCleary said, adding that both agencies are recruiting new officers.

HANDGUN SENTENCES YES

PARTIAL

• PLEDGE: Introduce “10-year minimum sentences for those caught with an illegal firearm.” No new law has been passed, but Premier Dr. Orlando Smith said discussions are ongoing with law enforcement groups. He believes a ten-year minimum is “a good idea that we need to pursue,” but more review is needed, he added.

SEIZURE LAWS

CRIMESTOPPERS YES

PARTIAL

• PLEDGE: Support “the emergence and existence of organisations like Crimestoppers.” The VI branch of the non-profit organisation was formed in 2010 and “re-launched” in 2012. At the time, Chairman Kevin Smith pledged to raise funds so that the group could offer rewards for residents who anonymously provide tips. Though police often promote the organisation’s hotline, the rewards scheme hasn’t been funded or implemented.

AGROUPS NTI-CRIME GROUPS YES

PARTIAL

• PLEDGE: “Improve community policing by establishing consultative groups in the community.” Consultative groups, where community member come together with suggestions to prevent crime, have been formed in Brewers Bay, Belmont Estate, Road Town and East End, Mr. Morris said. He added that some of those organisations also function as neighborhood watch groups to increase vigilance in the community.

YES

PARTIAL

• PLEDGE: “Toughen laws that enable the courts to confis cate the assets and property of drug dealers and other major criminals.” A 2012 amendment to the territory’s principal seizure law, the Proceeds of Criminal Conduct Act 2009, significantly raised fines and jail terms for money laundering and related offences. But a proposed Civil Forfeiture Act hasn’t been enacted.

VICTIM SUPPORT UNIT YES

PARTIAL

• PLEDGE: Create a Victim Support Unit to “improve the way the courts work.” A unit hasn’t been established, but Police Commissioner David Morris said the Criminal Justice Advisory Group is working to develop “victim and witness care.” The goal of the unit is to assist people through the court process, and a “victim-witness” charter is being developed, Mr. Morris said.

CRIME STRATEGY YES

NEIGHBOURHOOD POLICING YES

• PLEDGE: Draft a five- to seven-year national policy and strategy for “crime prevention” that includes the judicial system; prison restructuring; early intervention for at-risk individuals; and the truancy programme. In May 2013, government released “Safer Communities,” a 26-page report that sets out a long-term strategy for involving the community to reduce crime. Additionally, the Royal Virgin Islands Police Force has developed its own medium-term policing strategy, Mr. Morris said.

PARTIAL

• PLEDGE: Give “the police and local communities the resources they need to tackle anti-social behaviour,” and develop “neighbourhood policing for every community.” Community policing is a “clear component” of the RVIPF’s strategy, Governor Boyd McCleary said, adding that the intention is to appoint officers who have responsibility for each of the communities. “That’s an ongoing process,” he added. Mr. Morris said the RVIPF is looking at seven communities to introduce neighbourhood police, adding that officers are currently being recruited and trained for the posts.

YES

PARTIAL

• PLEDGE: Give “careful consideration to the implementation of a national identification database” as part the territory’s “overall crime fighting and security strategy.” There are ongoing discussions about agencies sharing data under the “e-government” agenda led by Marlon Penn (R-D8), Mr. McCleary said, but there are “no specific proposals” before the NSC for a national ID programme “at this stage.”

YOUTH COMMITTEES YES

PARTIAL

• PLEDGE: Establish “youth committees in the various communities, to mentor and support each other” with an advisor’s assistance. The committees haven’t been established. But Mr. Morris said that involving the youth in the community is part of the “Safer Communities” Strategy. Implementing the committees and other aspects of the strategy will occur under the guidance of an inter-agency group led by the Premier’s Office, he said.

LOCAL OCAL CONSTABULARY CONSTABULARY YES

PARTIAL

• PLEDGE: Establish a local constabulary, a supplementary force of appointed community members with some police powers. Mr. Morris added that a contingent of “special constables,” volunteers with police powers who act as an RVIPF reserve, is under consideration. But the initiative would require new legislation, he added.

DRUG TESTING YES

PARTIAL

• PLEDGE: Require “compulsory drug testing at arrest for all property and drug offenders,” and assess those who test positive for treatment. This isn’t currently occurring. But Mr. Morris said that such a measure would require updates to the Police Act or a similar law. “Without legislation there’s nothing we can do,” he said.

PRELATIONS OLICE-YOUTH RELATIONS

BORDER AGENCIES MERGER YES

PARTIAL

| Page 31

NO PARTIAL • PLEDGE: Merge the Civil Registry and Passport Office together with the Immigration and Customs departments to create a single border control agency. The merger hasn’t happened, but Dr. Smith said the idea is still under discussion. “I can’t give you a date on that one,” he added. Mr. McCleary said that the proposal hasn’t yet come before the National Security Council, but “some work is being done to see what are the most logical ways to manage these issues.”

YES NO PARTIAL PLEDGE: Recognise “the need for improved relations between the youth and the police by having the police actively engaged in the life of the community (schools, churches, events, etc.)” As has been their long-standing practice, police have continued their outreach efforts through events such as Police Week and the annual community Christmas parties.

ries of “proactive” measures, Police Commissioner David Morris said, adding that officers worked in conjunction with the Road Town Anti-Crime Group to identify where resources should be allocated. “A lot of the burglary was focused around Road Town,” he said. “We put additional patrols in and things like that.”

Inter-agency approach

The measures worked, and several arrests resulted. And that approach is indicative of a larger trend that has met with some success lately: Government agencies, including those that don’t have direct responsibility for law enforcement, are collaborating more and working on preventative measures with community groups to reduce crime, officials said. “Based on the discussions that we’ve had in the National Security Council, there has been an improvement in the performance of the security services, and the results have shown this,” Premier Dr. Orlando Smith said in an October interview. Elected officials set the annual budgets for the RVIPF but don’t have direct responsibility for national security. The 2007 Constitution largely delegates that power to the governor, who oversees the RVIPF and aspects of Her Majesty’s Prison. But an interagency approach involving organisations such as the Social Development Department, community groups, the Office of Gender Affairs, and law enforcement agencies is being led by the Premier’s Office, Mr. Morris said. That approach has been launched at the same time as the RVIPF has been reforming, Governor Boyd McCleary said. “Over a period of time — the past three or four years — the police force has become more modern. It’s worked hard on its approach. It’s been keeping statistics; it’s been using those statistics to identify more where the hotspots of crime are, what the nature of criminality is,” Mr. McCleary said.

Leveling off

Those statistics suggest that relative to the growth in the VI population, crime rates are leveling off. In 2006, there were 5.6 re-

Crime see page 32

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Crime

from page 31

ported crimes for every 100 people. The number has fluctuated since but remained at 5.9 crimes for every 100 residents in 2012. Though that represents an increase, Mr. Morris said some of the rise can be attributed to a 2010 change in the way statistics were kept. For example, prior to that year, when police received a report of vandalism and a suspect was identified, the report would be recorded as an incident, not a crime, if no arrest was made. Because police are now logging all incidents in accordance with United Kingdom recordkeeping standards, the same report would go on the books as a crime regardless of whether or not it ends up in court. Because police often respond to calls and at the victim’s request only caution offenders, this new system helped cause recorded crime figures to jump from 1,519 in 2009 to 1,796 the next year, Mr. Morris said. He added that a change in the way police respond to domestic violence is also partly responsible for the increase in reported crime per 100 people from 2006 to 2012. “We have a zero tolerance policy. Where we used to get a domestic violence report of a husband slapping the wife, in the days gone by that would just be recorded as an incident. Now we record that as a common assault,” Mr. Morris said. “Even if the wife says, ‘Well, I don’t want my husband to go to court,’ we will still take the husband and caution him about his behaviour, and that gets recorded as a crime.” The cautioning and recording is the important part, Mr. Morris said. “The issue with domestic violence is you don’t know when today’s slap is going to end up as tomorrow’s murder,” he added.

Burglary stats According to the statistics, property crimes have seen the biggest drop in recent years. After the May 2011 business burglaries, the remainder of 2011 showed a spike in residential burglaries as offenders were “pushed” off Main Street into the wider community, especially East End, Mr. Morris said. But, overall, the drop in burglaries at homes and businesses

has been sustained. Only two nonresidential burglaries were recorded in May 2013, down from 34 two years earlier, and police have recorded a 54 percent drop in residential burglaries and a 31 percent drop in vehicle related theft in the first ten months of 2013 compared to the prior period.

Prevention measures Mr. Morris added that work continues to be done on other crime prevention initiatives as part of the inter-agency strategy, but many of those measures, such as drug testing offenders and creating a supplementary police reserve of “special constables,” will require changes to existing legislation. He added that one muchtouted measure, a territory-wide network of closed circuit television

Special Report cameras, is nearly ready to begin operations. The network has been in development for more than five years, and though 15 of the cameras have been installed and tested, the system isn’t yet operational, Mr. Morris said. He said that’s because the heads of all of the agencies that employ cameras — including police, customs, immigration and the airports and ports authorities — need to undergo training to ensure the data is handled in accordance with privacy safeguards. Once that training occurs and Mr. McCleary is satisfied that the proper precautions are in place, the Authorisation of Surveillance Devices Act, 2013, can be officially put into force and the system activated, Mr. Morris said.

Regular Alcoholics Anonymous meetings are held at the Sandy Lane Centre at 9 a.m. on Sunday and at 5:30 p.m. on Monday, Wednesday and Friday. Anyone is welcome to attend.

For more information or to confirm times call 547-1842.