Caribbean Real Estate At 'All-Time High'

THE STAR Businessweek MAY 11, 2019

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Caribbean Real Estate at ‘all-time high’

By Catherine Morris, STAR Businessweek Correspondent

Demand continues to outpace inventory in the Caribbean’s booming real estate market, as 2019 shapes up to be a banner year for realtors across the region.

Property professionals gathered in Miami recently to discuss trends and issues affecting the Caribbean market, and the mood was optimistic with the industry showing very healthy growth across the board.

SBW THE STAR Businessweek

The Law of the Seas: When Cruising Goes Wrong For most people who go on a cruise, the experience will be an entirely pleasant one. Generally, as when riding a bicycle or driving, it will be enjoyable and will rarely involve an accident, but there’s a major difference when it comes to cruises — your opportunity to seek a remedy when something goes wrong.

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Stargazer - Turks & Caicos Providenciales.

15,000 sqft. Asking price: US$ 6.5 million

Adolescent Well-being and Equity in Saint Lucia Budget month has been and gone in Saint Lucia. With it there was the usual talk of forthcoming investments, opportunities and obligations.

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The star businessweek

MAY 11, 2019

REGIONAL - CANNABIS

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Cannabis Retailer Epican Jamaica Growing West!

By Neville Graham

In this December 17, 2018 photo, Epican CEO Karibe McKenzie inspects a marijuana plant strain named Girl Scout Cookie at the company’s warehouse in Mavis Bank, St Andrew.

Epican plans to grow its retail networks to five stores by the end of 2019.

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ntegrated cannabis firm Epican is now rolling out its second store at a prime location along the Jimmy Cliff Boulevard in Montego Bay, otherwise called the Hip Strip.

Then, later this year, it will add three more retail shops in Negril, Falmouth, and Ocho Rios.

The size of the investments was not disclosed.

Epican CEO Karibe McKenzie says he has spent the last two months outfitting the Montego Bay shop and training staff, while waiting for the Cannabis Licensing Authority (CLA) to finalise and issue the permit.

“It’s been a bit painful since we’ve had a lease on the spot for over a year now and we just got the approval three weeks ago and moving towards opening on Saturday,” said McKenzie in an interview last Thursday.

The new store sits in a heavily trafficked tourist area of the resort city.

“Kingston has performed extremely well, and we anticipate that Montego Bay will perform even better,” McKenzie said.

Epican’s first branch operates from Market Place on Constant Spring Road in Kingston. The company operates a marijuana farm in the Blue Mountains area under a growers’ licence from the CLA. McKenzie says the farm has 10 greenhouses on a one-acre plot, with a capacity of 150 pounds of the weed per month.

“We’re vertically integrated so we supply ourselves. Our farm and processing departments will be supplying this retail outlet also,” he said, referring to the MoBay shop.

Epican also supplies other licensed cannabis traders engaged in retail, he added. He said the company had a transporter’s licence pending, but in the interim, the CLA facilitates the movement of product from the farm to

the retail outlet.

He adds that the company has the capacity to do more business but is constrained by regulatory strictures.

“There are things that the medicinal cannabis industry is calling for but the Ministry of Health is not allowing, so we have to take the slow walk down the path with the government because there are things that the health ministry won’t allow such as processing, registration of product, and so on,” McKenzie said.

“From a business standpoint, yes, it is frustrating because you can well imagine that the entry point is not cheap, and we’ve put out significant sums to build a robust infrastructure; while at the other end, we’ve not been able to roll out the other part of the business plan,” McKenzie said.

Epican’s staffing levels currently stand at 105. The farm has 50 workers, Market Place 40 and Montego Bay 15.

The decriminalisation of cannabis came with the amendment of the regulations for the Dangerous Drugs Act in 2015. The amendment established a regime that allows cannabis users to possess up to two ounces of the drug for personal use.

The CLA was created to oversee the market, including cultivation, transportation and retailing for medicinal use of the drug.

“We’re vertically integrated so we supply ourselves.

Our farm and processing departments will be supplying this retail outlet also.”

CRUISE INDUSTRY

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May 11, 2019

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The Law of the Seas: When Cruising Goes Wrong

By ED Kennedy, STAR Businessweek Correspondent

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or most people who go on a cruise, the experience will be an entirely pleasant one.

Generally, as when riding a bicycle or driving, it will be enjoyable and will rarely involve an accident, but there’s a major difference when it comes to cruises — your opportunity to seek a remedy when something goes wrong.

If you’re in a car accident and the other driver is at fault, you can typically seek redress. Ditto if you are on your bike and involved in a collision as the result of another’s negligence. But when it comes to cruising, any incident a passenger encounters will often have them jumping through a ton of hoops to seek a remedy, and ultimately to no avail.

Why is this the case? And what solutions could be put forward to fix it? Let’s look now.

The Pursuit from Port to Port When an incident occurs on a cruise, a number of steps ensue as a passenger seeks to obtain a resolution. If they consider the cruise liner to be at fault, and seek a remedy like the payment of medical bills and other expenses, then the first port of call is typically a home-based lawyer.

But oftentimes little is gained from this action given the unique dynamics of laws surrounding cruises. If an injury has occurred on what is deemed a ‘foreign cruise’ (defined as one where it begins and ends in ports outside the cruise passenger’s home nation), then the ability for the passenger to sue in their own country may be non-existent. It doesn’t matter if Cuba is barely100 miles from the Florida coast; if you broke a leg sailing into Havana you’re unlikely to get a remedy in Tallahassee.

A further challenge concerns timing. While maritime law commonly has a three-year statute of limitations for the filing of claims, many cruise liner providers make it a one-year provision within their ticketing terms and conditions. One year may sound like a long time but, if you’ve sustained an injury and spent time in hospital and at rehabilitation, and thereafter need to potentially plan another international trip to where the cruise liner calls home or makes port in order to utilise a local lawyer, then time can run short; not to mention the expense of pursuing a lawsuit overseas, and at a time in life when money may be extra tight due to medical expenses.

The MSC Divina in March. A suspect who was accused last week of sexual assault on the ship was released by a Spanish judge who said he had no jurisdiction in the case. Credit: Bertrand Langlois/Agence France-Presse — Getty Images

Sailing into Headwinds The difficult of successfully suing a cruise liner notwithstanding, recent years have seen a rise in claims against cruise liners. While cruise operators may like to suggest that this is just the byproduct of opportunistic and quarrelsome people, in reality the evidence suggests that the genesis of many claims is a result of “selfinflicted wounds” by cruise liners: from inadequate medical attention on board that sees someone die as a result of poor care, to the introduction of onboard attractions like trampolines that result in a broken bone, to off-board excursions that see passengers subject to muggings or other incidents owing to the cruise liner’s failure to take reasonable precautions. Leading cruise providers in the Caribbean, like Carnival Royal Caribbean and more, have all had claims brought against them for incidents like these.

Running Aground The under-reporting and apparent failure by many providers to proactively prevent sexual assault — and take a strong stand should it occur — has led to cruise liners once again making own goals. At present, an employee of cruise liner A, fired for sexual assault, could seek a job aboard cruise liner B without the first provider sharing information about his dismissal with the second. In the era of #MeToo, when it’s understood that sexual assault isn’t exactly the most publicly reported

crime on cruises, a failure to change here is a glaring problem.

These episodes show that there are unquestionably issues with the way many cruise liners are structured. While there is no suggestion that anything illegal is being done — because ultimately these liners are operating under the law as it stands — it’s clear that the current laws surrounding the industry leave a lot to be desired. And though globalisation has made our world more economically borderless, stronger ‘common sense’ legal structures that can be applied to business in the global marketplace are yet to catch up.

When an incident occurs on a cruise, a number of steps ensue as a passenger seeks to obtain a resolution

Murky Waters The reality is that cruise ships will always have some element of risk. This is not to excuse failures when they occur, but it does help explain why cruise ship operators are often subject to lawsuits, and why they are sometimes able to parry them successfully. The decks can often be wet and slippery, the thoroughfares can be narrow, and the constant rocking and bobbing of the ship — that can be even worse in bad weather — all mean that cruise liners can defend against many injuries as not being their fault, but simply unavoidable.

It is no secret that some cruise ship passengers regard a holiday aboard as a license to drink to excess. Even when staff may seek to diligently enforce the responsible service of alcohol, passengers who go bar-hopping or get (sober) friends to buy drinks for them can evade enforcement, and this can result in an accident on the seas, just the same as it could on land.

These dangers are what many nations’ legal traditions would define as a voluntary assumption of risk by the passenger, and one a cruise liner can easily defend against when a passenger buys a ticket and agrees to the terms and conditions of the journey. But the recognition that cruise liners are not always to blame for every accident doesn’t excuse them from liability for all accidents.

Finding a True Course Understanding the situation as it stands, and what could be changed to help fix it, is important not only to passengers of cruise ships but also to the ongoing popularity and profitability of the cruise industry as a whole. There may be no easy answers for cruise liners, especially if the law allows for legal exemption (even if it’s also an evasion of moral responsibility), but ultimately we’re in an era when tourists have greater choice than ever when it comes to holidaymaking.

They also have access to troves of online data and reviews that detail the reality, behind the glitzy brochures, of a vacation. Airlines around the world that have never had a single crash — among them: Virgin, Qantas and Hawaiian Airlines — readily market their safety record to passengers as a reason to fly with them.

Any cruise liner prepared to break from the mould and support common sense reform would not only gain plaudits for the industry leadership they take, but also win some positive headlines that contrast with the many negative ones that SBW damage brands and deter future passengers.

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The star businessweek

May 11, 2019

REAL ESTATE

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Caribbean Real Estate at ‘all-time high’ Continued from page 1

Phase 3 of the Resort and Residences at Honeymoon Beach in Canelles, which is expected to break ground shortly.

More to come Hurdle predicts that Saint Lucia will start to see more business from US clients in the coming years, saying: “The traction we are getting on the islands close to the east coast [of America] will spread east, and Antigua, BVI, USVI, Puerto Rico, St Kitts and Saint Lucia will start to attract more North American consumers in addition to the heavy traffic flow they currently receive out of Europe and Asia. The main difference will be the seasonality — no longer will we see a peak season from just Thanksgiving to Easter. I predict we will see more activity into the later months on these islands, as we are seeing [in the western Caribbean].”

He is optimistic about the regional market as a whole, saying there is room in the market for everyone.

“Demand for product is at an all-time high. Development is booming. Build quality is drastically improving. Tourism numbers are increasing quarter on quarter regionally. The lifestyle and the water and beaches are still a dream to most, but opportunities at all price points are becoming more and more available.”

Ian Hurdle, Managing Partner at The Agency’s Turks & Caicos office.

“W

e are seeing a huge amount of new development across the islands, specifically resort hotels but also the low density luxury villa model for the purpose of short-term rental traffic,” says Ian Hurdle of luxury real estate brokerage firm The Agency which hosted the inaugural Caribbean Real Estate and Investment Summit in Florida last month.

“The byproduct of that focus is that people need to come in to work to both construct and manage these projects and as a result we are seeing an upswing in more affordable product by way of single family homes and apartments and longterm rentals.”

Regional hotspots The Forbes Real Estate Council has identified The Bahamas, Bermuda, the Cayman Islands, St Vincent and the Grenadines and the US Virgin Islands as the markets to watch in 2019 and adds: “Overall, we see the Caribbean real estate market poised for significant upswing over the coming year, with many opportunities. Buyers should look to capitalize by investing now, as growth accelerates and home prices begin to rise.”

Hurdle, who is Managing Partner of The Agency’s Turks and Caicos office, says destinations such as The Bahamas, the Caymans and Turks and Caicos are

success stories partly because of their proximity to the US. “Any of these destinations is reachable in a short space of time compared to the Eastern Caribbean, and all are building to Florida Code and embracing the very best architecture that the region has to offer,” he says. “As Hurricane Irma showed, the recovery time because of this build quality and time, as well as infrastructure, ensures that an investment on these islands is not such a risk versus others. As a result we are seeing more and more direct flights coming in from the US which leads to an increase in tourism and a surge in real estate activity.”

Turks and Caicos in particular enjoyed a strong performance in 2018 with sales increasing by 11 per cent year over year to reach over US$ 247mn. And more growth is on the horizon with the planned construction of an international airport in North Caicos.

Saint Lucia may be at a disadvantage in comparison to those markets closer to the US, but the island still enjoys steady interest, especially from foreign buyers. The sector has seen a boost from the country’s healthy Citizenship

by Investment Programme (CIP) which generated EC$ 66.4mn last fiscal year.

Foreign investors can qualify for a passport with a minimum US$ 300,000 purchase of approved property. Recent CIP real estate initiatives include

Selling the Caribbean If they are going to capitalise on this renewed interest and business, realtors in the region will have to be dedicated and engaged, according to Hurdle who spoke at the ‘Selling the Caribbean’ conference in April. “The days of posting a picture in a magazine and waiting for a tourist to come on vacation and call you because they like the picture are long gone.

Realtors in our region need to be proactive if they are to be successful in selling the product and that means thinking outside the box and going to the customer versus waiting for the customer to come to you. “‘Knowledge is power’ is cliche but it is apt given that we know our product and our markets cold; we now need to relay that knowledge to an international audience.

We are dedicated to providing the best possible service to our consumers. Not all of us run off ‘island time’ and ‘soon come’.

Communication is key.”

And communication was top of the agenda at the summit, which Hurdle says was a valuable chance for realtors and other industry players to get together and share their experiences. “We welcomed guests from all sectors: real estate agents from the Caribbean, South Florida, New York and Los Angeles; developers; new and existing hoteliers, architects, among others. It was a testament to the continued interest and strength of this regional market.

“There are so many misconceptions about investing in the region, and to have so many experts come from the various islands to share their knowledge was extremely gratifying. Working together we can bounce ideas off of each other, learn the pros and cons of investing in any one jurisdiction and guide potential buyers accordingly.”

Managing m

By Catherine Morris, STAR Businessweek Correspondent

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n Saint Lucia, life below the waves is just as busy as that onshore. Colourful reef fish, endangered sea turtles and a variety of rare pelagic species roam over intricate corals and lush seabeds. But this picturesque underwater world is under threat from a variety of sources, both man-made and natural. Protecting paradise is a constant effort, and Saint Lucia’s progress so far has been mixed.

Saint Lucia has around 24 marine reserves. Most of these date back to 1986 but a more recent list is contained within the Fisheries Act. When most people think of marine areas they picture the open ocean but Saint Lucia’s reserves encompass a wide variety of ecosystems including coral reefs, mangroves and beach habitats.

The Soufriere Marine Management Area, created in 1995, is actually several marine reserves in one as it protects the Anse Chastanet Bay reefs, those west of Rachette Point, south of Malgretoute Beach and reefs around Gros Piton.

North of Soufriere lies another huge protected marine area — the Canaries/ Anse la Raye Marine Management Area, comprising Marigot Bay, Anse Cochon and reefs at Rocky Shore and Anse la Verdure.

Being designated a marine reserve comes with certain restrictions. Protected by law, these areas are generally notake zones with two exceptions: special permission can be granted for limited fishing in Grande Caille Reef and select cutting for charcoal is sometimes permitted in Man Kote Mangrove. And it’s not just fishing or harvesting; activities such as snorkelling and diving require special permits to protect marine wildlife from human interference and disturbance.

Given the strict regulations surrounding marine areas, good management and maintenance is key. Oversight of Saint Lucia’s reserves is largely guided by a Systems Plan for Protected Areas, first drawn up by stakeholders in 1992 and revised and re-submitted in 2009. At that time, the Saint Lucia National Trust (SLNT) submitted the plan to government for approval; it is still waiting. However, the recommendations have been taken onboard by conservation partners. As SLNT Director Bishnu Tulsie says: “Government agencies and development partners frequently refer to the plan to guide their work.”

Multiple threats Marine reserves are more than just parks. They’re essential to life above and below the waves. Overfishing, pollution, invasive species and extreme weather events have all dramatically harmed the world’s oceans in recent years and the Caribbean has fared

ENVIRONMENT

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may 11, 2019

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marine reserves - is SAINt Lucia doing enough?

Map of Soufriere Marine Management Areas

worse than most with heavy tourism development, worsening pollution and intensifying tropical storms.

According to the Caribbean Challenge Initiative, the region has lost 80 per cent of its coral cover in the past 30 years, regional fisheries are declining at a rate of 5 per cent per year and mangroves are being eradicated by 1 per cent annually.

The SLNT believes some of the biggest threats to the country’s marine environment are land-based and manmade. Tulsie says: “Deforestation and land-clearing cause siltation and smother marine life. The release of chemicals,

pesticides and other hazardous material threatens corals and other marine habitats.”

Oil spills, over-fishing and general boating activities are also a concern, says Tulsie who adds that preventing polluters requires enforcement of regulations, more education and awareness efforts and stakeholder co-operation.

The Caribbean Challenge Initiative Saint Lucia isn’t the only country concerned about its waters. Given that much of the region is dependent on its

marine assets — as the Caribbean people enjoy, fish and make a living from the water — it makes sense to protect something so precious.

In 2008 Caribbean governments came together to conserve their natural resources, forming the multi-million dollar Caribbean Challenge Initiative under which participating countries committed to protect 20 per cent of their marine and coastal environments by 2020.

The agreement was signed with much fanfare and ambitious planning but, with the deadline fast approaching, there is still more to be done. While some Caribbean islands have been at the forefront of these efforts (Dominican Republic has already exceeded its target), others are falling behind. A 2017 study commissioned by the Caribbean Biodiversity Fund (CBF) discovered that Saint Lucia needs to triple the size of its current marine protected areas if it is to meet its 20 per cent conservation goal. Saint Lucia is not alone. Antigua and Barbuda and St Vincent and the Grenadines also fell short in the CBF assessment.

Saint Lucia’s slow progress isn’t a question of will. The impetus is there, driven by dedicated conservationists such as those within the National Trust, but mapping, maintaining and managing parks take resources — both human and financial. Tulsie says: “The policy and legal frameworks are good, but lacking enforcement. There is a need for greater public and stakeholder education and awareness, greater control over landbased sources of pollution and greater public financing for Marine Protected Area protection.”

Progress Saint Lucia may be short of its goal but the country has made strides in certain areas, being the first country in the region to launch an operational National Conservation Fund (SLUNCF), arising out of the Caribbean Biodiversity Fund.

Incorporated in 2016, the SLUNCF offers grants to conservation projects

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with the goal of effectively managing Saint Lucia’s natural resources. The three founding members are the SLNT, the Saint Lucia Hotel and Tourism Association and the Ministry of Economic Development and Planning.

The collaboration of stakeholders is encouraging. Non-profit organisations, international development bodies, government and even the private sector have a part to play as all are affected by the loss of the country’s natural resources. Another crucial facet of the battle to safeguard the marine environment is youth outreach and engagement.

In March the SLNT partnered with the National Conservation Authority to host a Beach Education Day, as part of its ‘Protecting Paradise’ initiative. Students took part in water quality testing, beach profiling and scientific journaling to bring home the message that marine environments are fascinating scientific treasure troves and to encourage young people to consider how they can contribute to their protection. The Beach Day event followed a special screening of the nature documentary ‘Our Blue Planet’ in February, which over 100 pupils from five schools attended. These budding conservationists also got the chance to participate in a Q&A session with the Department of Fisheries.

Encouraging a sense of stewardship in the next generation, so that Saint Lucia’s young people can continue the progress made so far, is vital to the country’s long-term conservation strategy. In 2017 the global youth conservation collective Ocean Generation visited Saint Lucia to invite young people to produce their own documentaries about marine conservation. Director Daisy Kendrick noted: “It was absolutely amazing seeing these young Saint Lucians tell their stories, through their own eyes, about why the oceans are so important.

No one could tell this story more powerfully than these incredible young people. They will really change the tone of the global debate.”

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The star businessweek

may 11, 2019

FOREIGN POLICY

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Europe’s Very Different Approach To The Caribbean And Latin America

By David Jessop

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n a more normal world, a communication produced by the European Commission setting out the main elements of Europe’s future policy towards Latin America and the Caribbean might only be of passing interest.

However, at a time when international relations are in flux, and Washington has claimed the right to impose the Monroe Doctrine in the Americas and is critical of the presence of China and others in the hemisphere, the European Union is about to offer a relationship that is very different in tone and substance.

In its recently published paper, The European Union, Latin America and the Caribbean: Joining Forces for a Common Future, the European Commission sets out why and how Europe wishes to develop a partnership that is forward looking, innovative, and which it believes offers a long-term approach that coincides with the values and aspirations of the LAC region.

Tucked away within its 15 pages are two wordy sentences that summarise Europe’s

In this January 4, 2018 photo, EU foreign policy chief Federica Mogherini boards her official car after a press conference in Havana, Cuba during a two-day visit. Mogherini has impressed on the European Parliament that Europe’s transatlantic relationship must also prioritise Central America, South America, Canada and the Caribbean.

strategic thinking.

“Aware that in today’s world there are different international players competing for influence, economic presence or even political and societal models, the EU should differentiate itself through its values-based policy and promote a logic of complementarity and mutual benefit. An exclusionary vision of international relations where someone’s gain is someone else’s loss is detrimental to the two regions; the EU proposition to LAC is based on open regionalism and win-win solutions,” the document says.

To achieve this, the communication sets out in detail the EU’s intention to develop relationships based on biregional and sub-regional partnerships that emphasise shared cultural and social values and the centrality of helping build prosperity and development through partnerships.

The document stresses European willingness to work with all LAC partners to support joint actions on the environment and climate change, to build resilience on issues from crime to disaster management, to encourage democracy, improve social and human rights, and to achieve beneficial progress through common actions to make global rules-based systems and multilateralism more effective.

CLEAR LINE As such, both in general and in its detail, the communication draws a clear line between Europe’s approach to the LAC region and that of the Trump administration, and, to a lesser extent, China’s; so much so that it is

quite possible to imagine at some future date European and Chinese thinking on LAC development, the environment and multilateralism converging.

The document is also forward looking, suggesting co-operation in areas in which the EU and the LAC region have not previously had any joint programmes.

The communication speaks in detail to supporting the development of the green economy, encouraging a low-carbon energy transition and the development of the blue economy. At a social level it places emphasis on encouraging better working conditions, the growth of productive and responsible micro- to medium-sized enterprises and encouraging gender equality.

It proposes too, working with the LAC region to help advance its digital economy and connectivity with Europe by encouraging investment in high speed broad band connectivity. It also addresses the need to expand air and maritime transport co-operation.

These are, of course, snapshots and a full reading is required to understand the ambition of the policy framework the EC is proposing after having consulted widely in Europe and the LAC region.

Although the communication contains little that is Caribbean-specific, there are references to the importance Europe places on having established a framework for dialogue with Cuba, expressions of support for closer regional integration through the Community of Latin American and Caribbean States (CELAC), Cariforum and Caricom, language about the role the EU envisages playing in Venezuela in restoring democracy and ending the present crisis, and about the importance of avoiding a ‘one size fits all’ approach to complex inter-regional political and economic dynamics.

ROADMAP TO THE FUTURE To understand in practical terms what the communication offers the Caribbean, it should be read in conjunction with the EC’s negotiating mandate for a postCotonou arrangement with the ACP. This is because the latter document, unlike the ACP’s counterpart document, contains a separate and detailed section on the probable content of a future EUCaribbean partnership relationship.

In what could be read as the first draft for a chapter in a post-2020 ACP-EU Treaty, the mandate proposes areas in which Caribbean-specific programmes might be developed. These range from support for initiatives to address climate change, the encouragement of private sector-led development in key economic sectors, including, for example, digital financial services and tourism, as well as help in relation to countering crime, illegal migration and delivering more gender-equal societies.

Together, the EC’s communication and the Caribbean partnership chapter of its post-Cotonou negotiating mandate Continued on page 8

HUMAN CAPITAL

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Adolescent Well-being and Equity in Saint Lucia

By ED Kennedy, STAR Businessweek Correspondent

B

udget month has been and gone in Saint Lucia. With it there was the usual talk of forthcoming investments, opportunities and obligations. A budget is always central to a nation’s story but it’ never the whole story.

Beyond the balance sheet alone, the future of a nation will always be defined by the potential of its youth and the possibilities for that youth to advance in a nation with an economy that grows, with social services that are strong, and with fair and equal access to a society’s resources.

That’s why now is a fitting time to review the Adolescent Well-being and Equity in Saint Lucia (AWAE) report produced by the Saint Lucian government and the UNICEF Office for the Eastern Caribbean.

The Stats Measuring data over a number of years, the AWAE paints a contemporary picture, but also one that requires consideration of whether positive changes are long-lasting or perhaps temporary. In 2016 around 9,500 Saint Lucian adolescents were living in poverty. Any number in this statistic is surely too high, but it can be noted this does represent a 30 per cent reduction from the same measurement a decade prior, in 2006.

This is to be commended and appears consistent.

Unemployment among the 20-24 age group was 40 per cent in 2017 compared to 62 per cent in 2012. This is a strong improvement but, given the short passage of time between the two measurements and broader global economic events such as the 2008 GFC and its aftershocks, to what extent these gains will endure remains unclear.

While all can agree that an increase in education can drive greater employment outcomes, there remain numerous potential pitfalls in the life of a young Saint Lucian as they journey from the start of their schooling to the conclusion of

Saint Lucia is turning the corner and good times are ahead. Certainly, when a nation’s economy is growing, as Saint Lucia’s is, credit must go to the government, for even if it were not actively growing it, knowing when to stay out of the way and refrain from installing roadblocks of economic growth is key.

Nonetheless, considered alongside AWAE, the Chastanet government’s desire for a steady ‘stay the course’ approach to annual budgets may indeed deliver solid progress in the long term.

However, in the short term, it may fail to adequately tackle the substantive problems like high youth unemployment that can, over time, turn from an annual problem into a generational one. Once that occurs it can be difficult, if not impossible, to undo the damage done and seek a solution.

An excerpt from “The Adolescent Well-being and Equity in Saint Lucia”: Just under two thirds of adolescents in the labour force are unemployed, and they account for 14 per cent of total unemployment. A third of male adolescents are unemployed compared to just over one in five females.

it (including any post-secondary study they may pursue after graduation). In particular, the transition from primary school to high school has, in recent years, seen the primary pass rate increase to 60-65 per cent overall, but ultimately this still means around 40 per cent of Saint Lucian youth may enter high school insufficiently prepared for the more challenging curriculum. This can create a snowball effect that further stalls their progress and future possibilities.

Mid- and Long-Term Challenges Alongside the education and employment spheres, youth in this nation faces the same trials as Saint Lucians in other demographics. Building consistent access to health insurance, and growing the uptake of strong house insurance policies to guard against major life setbacks, loom as key mid-term goals for the government and nation.

More widely, enhancing a household’s perception of safety in their community, and the manner in which households deal with, and sustain themselves, when

a family member has a chronic illness, will be fixes that can only be pursued in the long term. Meanwhile, they form a core component of the lifestyle and environment through which Saint Lucian youth must traverse.

A look into the wider dynamics of the report show that alongside a traditional approach to combatting these challenges, there are broader factors that will influence the fight in the future. There are also intergenerational factors that are longstanding problems which could be addressed in a short period of time, as economic circumstances dictate. For example, the AWAE financial illiteracy is much higher in households of Saint Lucians aged 15-29 when a parent isn’t present. The introduction and promotion of a new simple but strong financial literacy course could help address a substantive problem like this with relatively little investment by government.

Building on the Budget The Chastanet government has delivered a budget with an economic theme and has looked to make a key message of its time in office: it is a ‘safe pair of hands’,

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Achieving a Solution While We’re Young Youth unemployment is a challenge for many nations around the world but, for a young and growing nation like Saint Lucia, any failure by older generations to pave a path for those that follow, and that allows the nation as a whole to capitalise on the potential of its youth, can be especially unfortunate.

This is particularly so given that greater employment leads to greater purchasing power, a more highly skilled workforce and greater engagement with civic life and community institutions. It’s here that the forging of closer partnerships between government, business and educational is essential; and ultimately the government must lead with this boldly rather than gradually.

According to the AWAE report: “Most young Saint Lucians will negotiate the pitfalls of adolescence to emerge successfully into adulthood, obtain employment, form relationships and generally lead fulfilling lives to the benefit of themselves and society as a whole.” There are existing issues across Saint Lucia but there is also much to feel positive about when it comes to progress and real change. This is something all who care deeply for the future of SBW this nation can be proud of.

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REGIONAL - FISHING

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MORE TAX BREAKS FOR RAINFOREST SEAFOOD

imposed on any building, materials and finishing, fixtures, fittings, plant, machinery, equipment, tools, spare parts, and construction equipment imported during the construction phase of the project.

By Steven Jackson Additionally, no customs duties, VAT or other taxes or duties will be imposed on raw materials, intermediate goods, consumables, and packaging material which are imported or purchased locally in connection with the project.

This packaging material includes nonstyrofoam packaging material and Styrofoam boxes for the sole purpose of packaging live lobster, fish and other seafood products for export.

St Vincent Prime Minister Ralph Gonsalves (left) and Rainforest CEO Brian Jardim sign Further, the company, which also has agreement on the company’s new seafood processing facility in Calliaqua, St. Vincent facilities in Jamaica, Belize, Barbados, the Bahamas and Saint Lucia, will receive dutyhe Government of St. Vincent the company, which is headquartered in free concessions on the importation of two Jamaica, will “endeavour to purchase from and the Grenadines has freezer trucks, three pickups, two freezer local fisherfolk EC$ 20mn worth of lobster granted a 15-year tax break forks, two outside forks, three electrical pallet and fish annually”. to Rainforest Seafood SVG jacks (walkies), two reefer containers for A November 14, 2018 Cabinet memo Ltd, which says it will invest transporting products to the airport, and boat obtained by iWitness News shows that the EC$ 10mn in a fish engines for two boats mentioned.

Ralph Gonsalves administration has agreed processing facility at Calliaqua.

The renewal of the duty-free concessions on that no taxes or withholding of any kind In addition, the government said that no these items will take place four years after the whatsoever will be levied on the company’s taxes or duties will be imposed on a wide date of their importation. income, profits and capital gains for 15 years. range of items for the construction of the The company will also receive duty-free The 15-year period begins when the company’s processing facility, as well as concessions on the importation of one tractor company informs the government in writing equipment, including boats and trucks. head, two chassis, and two boats to be used of the commencement of its commercial Minister of Finance Camillo Gonsalves, for transporting product and fishermen’s operation. who is also parliamentary representative for supplies between the islands of St. Vincent The document further said that no customs East St. George, where Calliaqua is located, and the Grenadines only. duties, value-added taxes or duties will be said at the signing ceremony in April that The company will be eligible for a renewal of the duty-free concession on the importation of these items after eight years.

In addition to the tax incentives, the government is renting to Rainforest Seafood SVG a property at the monthly rate of EC$ 6,500 for 25 years with the option to renew for 25 years on terms to be negotiated.

The monthly rent is waived during the period of construction of the plant, provided that the period of construction concludes within 18 months from the date that Rainforest obtains all the permission required to lawfully construct the plant.

At last month’s signing ceremony, the finance minister said the EC$ 20mn injection into SVG’s fisheries sector by Rainforest Seafoods is very significant.

“It’s transformative and there is no way to gainsay that,” Gonsalves told the signing ceremony on April 10 at Argyle International Airport.

“If Rainforest Seafoods can ramp up to those sorts of numbers, and I am glad that it is recorded in the contract, it would have an absolutely transformative effect on the fisheries sector in St Vincent and the Grenadines and you will see it and feel it in the livelihoods of fisherfolk,” Gonsalves said.

“Fishing is an expanding sector in St Vincent and the Grenadines. In my budget address a few months ago, the data I had seen said fish landings were up 45 per cent year over year and the value of the fish was close to 60 per cent year over year, and the constraint that we currently have is the capacity of our fisherfolk to meet the increase in demand,” he said.

T

Originally published in iWitness News

Europe’s Very Different Approach To The Caribbean And Latin America Continued from page 6

propose a framework of new initiatives that offer the region an inclusive vision.

It contrasts with the messaging surrounding the late March meeting between President Trump and a select group of Caribbean leaders in Miami, which suggested that the Caribbean is rapidly becoming a contested space in which the US is prepared to preferentially and transactionally support only those nations that agree to, or acquiesce to, its wishes.

Put another way, European thinking demonstrates that “the space the Caribbean has to play in” — to use a phrase in a recent editorial in The Gleaner — is about much more than what is left when the United States and China resolve their differences, and that there are values-based alternatives available to the region.

Astute Caribbean governments that are clear about their national interest and sovereignty ought to be doing more to explore the flexibility and innovation the new European communication offers them. They should be identifying politically with EU leaders how Europe’s long-term strategy coincides with their own and might be used subtly to ameliorate US pressure and to balance their growing relationship with China.

At the same time, the EU, and particularly its ambassadors and senior officials, should be more strenuously indicating in the region in person and through the media the significance of what a post-Brexit EU27 can offer.

As Federica Mogherini, the European High Representative for Foreign Affairs, told the European Parliament personally in Italian, her own language, when introducing the new communication, the transatlantic relationship is not only what Europe has with Washington, but “also what we have with Central America, with South America, with Canada and with the Caribbean”.

David Jessop is a consultant to the Caribbean Council.

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