Existence of the independent voice of the business community at risk:
The story of the Chamber and its car parks The St Vincent and the Grenadines Chamber of Industry and Commerce (The Chamber), whose duty it is to give voice to the business community, hereby launches a crucial and urgent appeal for the support of the business community and its stakeholders in its quest to obtain renewal of the lease of the premises developed as car parks by the organization. In accordance with the terms of the lease contract with the Government of St.Vincent and the Grenadines for the property upon which the car park has been developed, the Chamber has on several occasions over the past year, written to the Government requesting a renewal of the lease. Unfortunately, there has been no formal response from the Government to date. There has however been verbal communication with Government officials in recent days indicating that the lease with the Chamber will not be extended. Further, we have received reliable reports that consideration is being given by the Government to handing over of the facility to another entity. Such news is extremely daunting to the Chamber. After all, the Chamber has great expectations that the Government, in the interest of preserving a necessary on-going positive relationship with the business community, will continue to support the vision of the organization that gives voice to the private sector and as such would not want to take actions which directly undermines the existence of such a vital developmental organization. The Chamber is a non-profit, non-governmental organization in operation since 1926 and is open to all companies and individuals in the private sector. The Chamber exist to support national economic vitality and to facilitate an enabling environment for growth and development of the local business community. It is therefore imperative for the Chamber to not only be vibrant and independent but just as equally to be financially stable and sustainable. For the Chamber to continue this work, financial sustainability is indispensable. To this end, the idea of a car park was independently and innovatively conceptualized and embarked upon by the Chamber in an effort to strategically enhance the organization’s position to remain viable. Given the looming threat, we herein wish to call upon the support of our stakeholders by providing an insight into the development of the idea by the organization, its importance to the existence of the organization and examining areas of consideration in the justice of our cause. Development of a revenue generating idea The Chamber was formed in 1926 through voluntary contribution of funds by a handful of prominent enterprises. They recognized the need in a civilized, democratic society to have a local organization of businesses, whose goal it is to further the interests of the business
community. In the initial years of operation, much was gradually achieved in terms of institutional autonomy and system; however poor financial sustainability was a deterrent. This virtually restrained the Chamber activities. This is not an uncommon situation in the world of Chambers of Industry and Commerce by any account. This challenge is usually overcome by one of two (2) ways. The first is to work in close partnership with Government such that membership in the Chamber is obligatory by law with business registration. This provides a large membership base from which the fiscal sustainability of the organization is maintained. The second is the implementation of what many would consider exorbitant membership fees, in the case of voluntary membership. The option of obligatory membership is feasible based on the experience in Dutch states but will require extensive deliberations and consultations and would therefore be a lengthy process. Not much success of this approach has been reported in Anglo territories. In the meantime, the Chamber needs to carry out its mandate and meet its financial demands. The second option of institutional dependence on voluntary membership fees is also feasible but not necessarily always a sustainable approach. In order to underwrite the current minimal operational costs of the Chamber, an immediate membership fee increase of 400% would be required. Unfortunately, and particularly in a time of economic crisis, a weak private sector base and the intrinsic challenges of voluntarism may not necessarily facilitate such a radical shift. Our inability to cover our operational cost would ultimately hamper the production and delivery of programs on a self-sustained basis and in the long run, our existence. In recognition of the aforementioned challenges, the Chamber embarked on an innovative approach for which it has been applauded world-wide. In the year 2000, the Chamber approached the Government of St.Vincent and the Grenadines for permission to lease 37, 432 sq ft of functionally underused property situated at the Reclamation site in Kingstown. At that time, the property was a muddy open space, a sore to the eyes of many and meeting ground for many vagrants, vagabonds, beggars, idlers, indigents, and the homeless. The condition in which the property was kept harbored rodents and was often used as a dumping ground, which ultimately posed a health risk in the city. Additionally, such untendered land in the center of the city was certainly not a remarkable reflection of economic prosperity. At the same time, there was dire need for proper parking facilities in the city with the influx of imported vehicles and growing commercial activities. Government was seemingly not prepared to develop the property. To this end, the Chamber took the initiative, as a good corporate citizen , to develop the revenue generating idea of a car park (which did not compete with any activities of its constituents), with the view to effectively utilizing abandoned land and providing a service that would support the needs of the business community. The Chamber had a vision for itself, the business community and the city at large and therefore entered in a lease arrangement with Government. With this vision, the Chamber invested over EC $500,000, with the assistance of the business community, to develop the site into a car park. Developmental works included filling and asphalt surfacing and
enclosure with fencing and the construction of a ticketing booth. In 2000, the Chamber entered into a lease arrangement in the sum of $10,000 per annum in the first 5 years. This was subsequently increased in August 2005 to $50,000 per annum. Contrary to the belief of those who might be uninformed, the Chamber was NOT given a car park to manage for or by the Government neither does it serve as a subvention by the Government nor is it a gift. In order to contribute further to the success of the city, in 2005 the Chamber approached the Government with a plan to advance development of the site. The organization requested a longer term lease arrangement. Its plan was to provide a modern multilevel car parking complex in the city. The complex, which was already designed with the assistance of colleagues from Martinique, consisted of two levels of parking space and one level for modern conference facilities and retail/commercial space. Unfortunately, Government did not support this vision and permission was not granted. Nonetheless, the Chamber continued to operate the facility in anticipation of a decision change in the future in the interest of national development since despite the growing demand for development of the facility, it was economically unfeasible to make major capital investment on a 5 year lease. Importance of the car park to the ability of the organization to fulfill its mandate As one would appreciate, a small but democratic and civilized economy such as ours can only remain strong and thriving in today’s competitive world with the proper integration of business through non-governmental organizations such as the Chamber of Industry and Commerce. Our work, particularly in recent times, reflects that we continue to integrate the business community, whether it is farmers, manufacturers, service providers or retailers. However, our strength in continuing to fulfill this mandate depends wholly on our financial sustainability. The implication of the withdrawal of the lease assignment by the Government would mean the survival of the Chamber – the voice of the private sector -is at risk. Indisputably, the Government and the private sector alike would recognize that the performance of the economy and its growth, to a large extent, depends on effective interventions towards creating conducive business environment, addressing business issues and providing specific business development services by way of advocacy and awareness. Government may attempt to provide such services, but without an independent private sector voice, surely the development and shaping of an enabling environment for the development of the private sector cannot be reasonably expected. Many would agree that the SVG Chamber of Industry and Commerce continues to serve the business community now more than ever in promoting positive economic growth and in responding to the issues surrounding business development. Many would recall the Chamber addressing issues such as the budget, VAT on electricity demand charge, crime, LIAT, taxation, customs and the long list continues. We continue to objectively represent the business community both in the national and international forums, provide opportunities for networking & linkages, business information services, training & other skill development programs, membership development and business referrals.
Unfortunately, today the Chamber faces a deep challenge – a fundamental threat to its existence and hereby calls for the support of the business community. Without the Chamber, who would be the apolitical, non-governmental, independent collective voice in advocacy for the business community’s interests? Areas of consideration in the justice of our cause In assessing the justice of our cause, the following are areas of consideration and concern for the Chamber: 1. We anticipate that the Government would recognize that having developed the car park facility, the Chamber has been able to achieve its cherished mission of promoting, developing and furthering the economic participation of the private sector in the nation building process. The Chamber provides linkage between the government and the private sector and works closely with all government agencies, autonomous organizations and international organizations and donor agencies towards facilitation and promotion of trade & industrial development in St. Vincent and the Grenadines. As a developmental agency, we are often called upon by Government in making policy decision and this affirms the recognition of the value of the organization. However, how can we as an organization be expected to maintain and strengthen our capacity to represent and protect the interest of the private sector if our sustainability is being undermined? Surely, we would loathe considering that a Government that purports itself as private sector enabling might actually take action which would directly destabilize the oldest and largest private sector organization in the country. 2. We would like to remain confident that should withdrawal of the lease arrangement from the Chamber be considered that any noble administration would compensate this non-profit organization for the developmental work it has carried out on the property with due consideration for inflation. 3. The Chamber has great hopes that the Government, in the interest of preserving a necessary on-going positive relationship with the business community might not be considering withdrawal of the lease arrangement because the Chamber might not have met expectations of eternal accord on all matters. After all, the Chamber as a development facilitator has always endeavored towards working not in confrontation but in close collaboration with different bodies including the Government. With this principal approach but with opinions that may differ from time to time from those of the Government and other bodies, the Chamber has depended on the carpark to strengthen its capacity to respond to the ever-increasing expectations of its members and stakeholders. 4. We would be interested to find out if the lease is being ended with the Chamber but commenced with another body or organization for the same utility. After all, we are the organization that invested in the development of this property as a carpark and we would not want to believe that Government would unilaterally conclude that our own idea is too successful for us and therefore pass it on to any other body or organization.
Especially at a time when the organization is enhancing its capacity to fulfill its mandate. If another organization is in reality being considered, the following questions come to mind. Is it because the Government is attempting to find favor with another organization at this most opportune time? If the car park is being considered as support for any other organization, is the car park the only form of support that the Government could provide? Have any other options of assistance been explored that might not be at the expense of survival of another organization? 5. The Chamber is optimistic that in reviewing the decision of whether or not the lease is renewed that there would be disclosure to us by Government of any substantial grievances that might impact on continuation of the lease arrangement. This is particularly relevant if the lease is withdrawn from the Chamber but passed on to another body for the same utility of the property. Surely, Government would have informed us if we have not been good tenants over the years. Incidentally, the Chamber has endeavored to maintain the property in pristine conditions at all times and have not received any official complaints from our landlord which might suggest otherwise. Further, if the lease value is being challenged, we would hope that this too would be negotiated with the organization. 6. If the car park lease is to be withdrawn from the Chamber and passed to another organization for continuation of car park services, what is going to be the selection process? We anticipate that in the interest of transparency, a public call to tender would be made for everyone, including the Chamber, to be given an opportunity to bid for the carpark. After all, the Government would not want to subject itself to public scrutiny in its procedures. Conclusion The Chamber remains cognizant of the right of the Government to discontinue the lease arrangement. We however refuse to believe that a visionary Government, which purports one of its pillars of development as private sector growth, would want to take steps such as withdrawal of the car park lease without good reason. Further, the Chamber has invested heavily in this project, we have contributed to the economic value of the property and most importantly our organization depends heavily on it for its viability. With this looming concern, the ‘way ahead’ would be difficult and challenging. Nonetheless, the Chamber has the will to continue to be the apex private sector organization guided by a team of dedicated Council and staff and consistently striving towards creating a conducive environment for the growth and development of the private sector. To this end, we herein call upon the support of the business community in our quest to obtain renewal of the lease of the premises developed as car parks by the organization. Please show us your support by writing to us or by communicating directly to the Government through the Minister of Finance. The Chamber needs your support now more than ever.