Chastanet Government Allocates $20 Million For Local Sports

THE STAR Businessweek MAY 18, 2019

www.stluciastar.com

in this edition of

Chastanet Government Allocates $20 Million For Local Sports

By Catherine Morris, STAR Businessweek Correspondent

Cutting crime, improving health and education, boosting the economy and swelling national pride — the benefits of a well-structured national sports strategy can ripple through all sectors of society. That’s why sports development was one of the big ticket items on this year’s budget, with Prime Minister Allen Chastanet declaring a EC$ 20.6mn windfall for sports facilities, events, education and training.

SBW THE STAR Businessweek

Public Housing and Unplanned Communities In 2019 many Caribbean nations are seeing strong growth in their economies. This is unquestionably a good thing overall, but presents new problems.

Page 3

Continued on page 4

Low income housing in Cresslands

Caribbean Law: The Privy Council v. The Caribbean Court of Justice In recent years the Caribbean has seen a number of high profile cases find a final resolution far from home in the UK’s Privy Council (PC).

However, with the rise in the past two decades of the Caribbean Court of Justice (CCJ) as an alternative to the PC, there’s renewed debate about the appropriateness of a Londonbased court having the final say on Caribbean legal matters.

Page 7

2

The star businessweek

MAY 18, 2019

Sovereign Bonds – Barbados

www.stluciastar.com

Barbados creditors fume at ‘absurd’ $27mN advisory fees

London-based boutique, White Oak, in line for payout for work on $7bn restructuring

By Colby Smith

White Oak’s engagement letter was signed five days after Mia Mottley was sworn in as prime minister last year

A

little-known UK advisory firm stands to make about $27mn from the restructuring of Barbados’s $7bn of debts, close to what Lazard earned seven years ago when it advised Greece on defaulted debt nearly 40 times bigger.

White Oak Advisory is a small firm with just two partners located opposite Claridge’s hotel in London’s Mayfair. The size of the fee it will receive from its work on the default has outraged the Caribbean island’s creditors.

“The fee is absurd given the size of the debt,” said Sean Newman, an Atlanta-based portfolio manager at Invesco and a member of the external committee of creditors. “I’ve never seen anything like this in my 20 years in the business.”

White Oak was founded a decade ago by Sebastian Espinosa, a former Houlihan Lokey banker, and David Nagoski, a former US Treasury department official. It will earn about $27mn from the bankrupt country, according to Financial Times calculations. That is almost double what Ukraine paid for advice on its

“By any metric or rationale, the fee is outsized and unwarranted” – Sean Newman, Invesco

$18bn restructuring in 2015, according to people familiar with the deals.

The Bajan government hit back at the creditor criticism. “We believe it is excellent value for money given that through their efforts we have saved over $1bn of interest and principal. We would hire [White Oak] again.”

White Oak’s engagement letter indicates that the Bajan government agreed to pay the firm just over $21mn for the successful restructuring of its roughly $5bn of domestic debts, excluding arrears.

The letter was signed five days after Mia Mottley was sworn in as prime minister on May 25 last year, and two days before the government announced it was defaulting on its debts.

Negotiations with external creditors are ongoing. Once complete, the government is set to pay White Oak about $4mn for restructuring approximately $910mn of debt owed to foreign investors. The firm is also receiving an $85,000 monthly retainer.

It is likely to take at least another 12 months to finalise the deal, according to another person involved in the negotiations. The additional $2mn in monthly fees brings the total payout from Barbados to roughly $27mn.

“It is a disproportionate fee for a small country,” said one financial adviser.

“Barbados is not Greece, which had a massive debt stock, multiple debt instruments and huge political tensions,” the financial adviser said. “Doubledigit fees are for very large transactions that are super complicated with a large number of instruments and a large number of different creditors.”

White Oak’s partners said the fee was justified because “placing this debt on a sustainable footing has required an unusually complex operation”. Its rates are “among the lowest charged in any Caribbean restructuring, again in relative terms”.

Continued on page 6

URBAN PLANNING

The star businessweek

May 18, 2019

www.stluciastar.com

Public Housing and Unplanned Communities

By ED Kennedy, STAR Businessweek Correspondent

I

to form stronger and more enduring relationships with the community around them. By every measure this outcome is a win-win.

n 2019 many Caribbean nations are seeing strong growth in their economies.

This is unquestionably a good thing overall, but presents new problems. Just as the faster a car drives, the more important a seatbelt is in the event of an accident, so too do regional nations need to consider new plans for their urban futures in light of their economic growth. A central consideration for the future is the challenge of addressing unplanned communities within urban centres.

Insufficient housing stock for growing populations While the Caribbean and Latin American region has, in recent years, been the most urbanised region in the developing world, a change in this trend has occurred (by urban planning standards) relatively rapidly. Within the Dominican Republic, 100 years ago 80 per cent of the population lived in rural areas; between 1920 and 1970 the advance of industry saw the population skyrocket and, by the mid1980s, it was held that the cities of the Dominican Republic had a deficit of 400,000 homes.

In Trinidad in 2017, some 200,000 people were said to be occupying empty or abandoned properties to which they did not have legal title, and Jamaica saw the UN claim that 25% of its approximately 3 million residents were living in homes that were not legally theirs. This issue is one many nations around the world must contend with.

Given the unique nature of the Caribbean — with its painful memories of slavery and entrenched inequality; unique geographical nature as a region, with many island nations but a comparatively small population; and the rapid growth that many nations’ economies are seeing today — failure to pursue real and enduring answers to the issue of insufficient housing stock could have particularly damaging consequences.

But Caribbean nations are by no means the only ones that must reflect on their history to seek solutions for the future.

The Experience Abroad Once upon a time many nations pursued public housing policies that, in hindsight, look like afterthoughts; for while public housing was provided, it was often done with a focus on putting roofs over heads, with little consideration of the wider causes and effects of doing so.

The two CDC public housing blocks located in Castries. Both blocks are managed by the National Housing Corporation and are currently the only public housing schemes on the island.

Public housing in Castries, Saint Lucia. Photo taken at The Gardens.

Though nobody could fairly champion the results today as examples of inspiring social policy, as with many challenges that have long been with us, ignorance has diminished and understanding has grown over time.

Today the thinking has changed. For example, recognition has grown that it is not beneficial for residents of public housing, nor a city as a whole, to create clusters and pockets of public housing.

Instead there has often been a shift towards the creation of public housing across a number of different areas within a city. This way, residents in public housing do not have to suffer under de facto segregation policies that, at one time, consigned them to isolated pockets in a city; instead they can more easily live

and work within the wider community.

What’s more, some of the broader social challenges that can be present within the public housing sector can be more effectively combatted.

In diversifying where public housing is placed, public authorities and not-forprofit groups can better address issues like substance abuse and crime, knowing their presence can be localised to a smaller footprint (such as one apartment or home) rather than contending with them in a huge city block with hundreds of residences.

As well as this, the diversification of public housing has allowed for a reduction in the stigma that surrounded it in years prior, and enables those who have the need to utilise public housing

Private Markets and Public Housing The relationship between the expense of property — whether buying or renting — and public housing has long been known.

While few adults would opt for public housing over the purchase of a home or private rental of one, many people across the world, who in years prior were able to afford a private residence, have found themselves priced out due to the rising cost of living and other factors.

Key among the other factors has been the increasing globalisation of national property markets and, in turn, the post-GFC aftershocks that have seen many who would once have looked to stocks and other investments for growth in wealth, mainline into property, given its traditional perception as more secure in a number of markets. With the global nature of this trend, there are no quick or easy answers to reducing house prices.

Many homeowners cite their property as their biggest investment, and accordingly a sharp drop in the value of homes can hurt one part of a nation, even if it benefits another group, like first-time buyers. Nonetheless, the disadvantage in that circumstance remains greater for those who don’t have a home compared to those who do.

Governments seeking to address the public housing issue must look not only to the creation of more housing for public use, but policies that shift course and increase access to private property, be it by buying or renting.

A View to the Future Getting the approach right in urban planning could bring immense benefits for a nation, not just in the area of public housing, but across the board, with a drop in unemployment, a rise in education levels, a growth in the quality of life among citizens, and accordingly less and less money required over time for social safety net services, given those who once needed them may no longer require them.

It also addresses more immediate day to day concerns. When urban planning is done properly the strain on essential resources, like a community’s water supply, is diminished. So too do broader quality of life factors — like traffic congestion, air pollution and crime — usually decline when overcrowding is reduced. But this all begins with proper planning of where to lay the bricks and mortar, and how to plan public housing and communities around SBW them for the benefit of all.

3

4

The star businessweek

May 18, 2019

SPORTS DEVELOPMENT

www.stluciastar.com

Chastanet Government Allocates $20 Million For Local Sports Continued from page 1

Concept Design for National Sports Academy at Gros Islet Secondary School. Source: Allen Chastanet Official Facebook page.

T

he multi-million dollar investment will be spent on developing a mini-stadium at Soufriere, a large sports hub at Dennery, a mediumsized sports hub in Micoud North and a community hub in Micoud South. It will also help fund the proposed School of Excellence at Gros Islet which is in the pilot stage and a new Youth and Sports Authority “with the expertise to be able to invest in sports and cultural development”,

Youth engagement Saint Lucia has plenty of bright, engaged and exceptional young people who are making their mark in business, tourism, conservation and the arts. But for every young go-getter hitting the headlines, there are hundreds more being lost to crime, poverty or lack of opportunity.

Sport can have a huge impact on youth development. Participating in teams engenders a sense of responsibility, community, leadership and selfdiscipline among young people who perhaps are not getting those lessons elsewhere. Coaches frequently serve as mentors, giving alienated youths a figure of authority to respect and emulate. And the benefits last long after the game ends — students who regularly engage in sports find that their performance in the classroom is also enhanced. Research from the University of Arkansas shows that high school students who play sports have higher grades and test scores in mathematics and language arts courses.

Student athletes are also 1.7 times less likely to drop out of school.

These positive results are retained during the move from education to employment. A 2014 study from Cornell University found that athletes who played sports in high school tended to earn higher salaries in later life and

possessed more leadership skills, selfconfidence and self-respect.

In his 2019 Budget speech, Prime Minister Chastanet indicated that young people are at the heart of his desire to develop sports more fully in the country, saying it would “ensure our youth channel their energy into positive, healthy activity” and adding: “It is better for our young people to join clubs than join gangs.”

Sport can be a powerful weapon in the fight against crime as it teaches young people how to manage and control their aggression, as well as improving their communication and problem-solving skills. According to a 2003 report from the United Nations Inter-Agency Task Force: “Sport brings people together in a way that can cross boundaries and break down barriers. The skills and values learned through sport are many of the same skills taught in peace education to resolve and prevent conflict. Wellcrafted sports teach respect, honesty, cooperation, empathy and how and why to adhere to rules.”

National pride Giving young people pride in themselves and their team-mates is one thing, but this feeling of community closeness can be replicated on a large scale with a well-structured and successful national strategy.

Transforming Saint Lucia into a sporting Centre of Excellence, as the government intends, would make the island the premier sports destination in the Eastern Caribbean, encouraging further integration with its fellow members of the Organisation of Eastern Caribbean States (OECS) and opening new avenues for OECS citizens to travel, work and come together.

Having the label of excellence cannot help but encourage national unity and

Concept Designs for Dennery Sports Complex. Image taken from Allen Chastanet Official Facebook page.

pride. Saint Lucians from all sectors of society can participate, whether by attending a game, supporting players, joining a club or volunteering their time and skills. The prime minister is particularly keen to get more Saint Lucians involved in the latter, saying: “With this investment by the government, I am making a formal plea for Saint Lucians to engage in the spirit of volunteerism and I am calling on volunteer coaches and trainers to give of their time and knowledge to maximise both the investment and the talent of our young people.”

Economic game-changer Developing sports requires significant human resources — good news for Saint Lucia where unemployment rates are still some of the highest in the region,

Saint Lucia has plenty of bright, engaged and exceptional young people who are making their mark in business, tourism, conservation and the arts. But for every young go-getter hitting the headlines, there are hundreds more being lost to crime, poverty or lack of opportunity

reaching 20.2 per cent in 2018. Aside from those directly involved (coaches, team assistants, physiotherapists, consultants, etc), there are also scores of jobs related to building and maintaining sports infrastructure, from the worker who mans the ticket booth at a stadium to the architects and engineers designing the perfect cricket ground or running track. With a thriving sports sector, a whole host of new career options is on the table for the country’s young people.

Sports will also complement the country’s existing economic powerhouse, tourism. The global sports tourism market is expected to have an annual growth rate of about 36 per cent by 2023, according to market analysts TechNavio.

Calls for a comprehensive sports tourism strategy have been ongoing in Saint Lucia, but with little progress on the ground. Cricket, athletics, golf, yachting and other watersports are all potential goldmines, as other destinations in the Caribbean have realised and leveraged to their benefit. And it’s not just small island governments who are waking up to the potential of this market. Industry stalwart Wyndham Resorts has made sports tourism a central part of its plans for 2019, hosting and sponsoring triathlons in the Dominican Republic and The Bahamas.

With the new Youth and Sports Authority set to look closely at both sport and culture, more major events could feature in Saint Lucia’s future, dovetailing with plans in the Ministry of Tourism to deliver more “authentic experiences” for visitors. Saint Lucia’s affinity for, and talent in, sports of all kinds can be just as much a part of the country’s indigenous tourism product as its beaches, food and art.

PRIVATE SECTOR DEVELOPMENT

The star businessweek

Caribbean Chambers Join Forces

By Catherine Morris, STAR Businessweek Correspondent

essence, we seek to create exponential value by enhancing our trade, connecting more businesses, reducing losses and advocating with related stakeholders inclusive of regional and international development partners.”

Executive Directors of sixteen Chambers of Commerce across the Caribbean region gathered at the Accra Beach Resort and Spa in Barbados on April 1 and 2, 2019, for the Official Launch and First Meeting of the Caribbean Network of Chambers of Commerce (CARICHAM). During the two-day meeting, history was created with the official signing of a Memorandum of Understanding (MOU) establishing the Network.

Signatories were from Antigua and Barbuda, Barbados, Belize, Cuba, Dominica, Grenada, Guyana, Haiti, Jamaica, Martinique, St Kitts and Nevis, St Vincent and the Grenadines, Saint Lucia, Trinidad and Tobago, and Suriname.

F

rom lack of financial and regulatory support to uneven economies of scale, the Caribbean’s private sector has always walked a rocky road.

The numerous obstacles on the domestic, regional and international stages have necessitated strong advocacy groups and stakeholders are now taking it to the next level with the launch of the Caribbean Network of Chambers of Commerce (CARICHAM).

“It was a long road to get here, but we are delighted that this network has been launched,” says CARICHAM Chairperson Lizra Fabien. “This is the first time such a network has been established and we believe that there is no better time than the present for greater regional integration in the private sector.”

Adding value Discussions around what would eventually become CARICHAM began in 2017, spearheaded by the Barbados Chamber of Commerce and Industry.

Fabien came onboard in mid-2018 and, as Executive Director of the Dominica Association of Industry and Commerce, was happy to get her own Chamber involved in the project. She says: “We realised that a gap existed where we

needed to enhance collaboration for the advancement of our region.”

At first, the Chambers met virtually — scheduling regular online conferences that proved to be an efficient and affordable way of connecting the various branches.

But stakeholders soon decided to take the organisation to the next level and CARICHAM was officially launched at the start of April in Barbados when sixteen regional Chambers of Commerce, including Saint Lucia’s, came together to sign a Memorandum of Understanding.

The launch event marked the group’s first physical meeting and the mood was optimistic with regional players ready to take on longstanding private sector problems. “The first meeting was a great success,” says Fabien. “The feedback thus far has been remarkable.” Coming out of the forum, members decided on four areas of focus: advocacy; disaster risk reduction; knowledge and best practice sharing; and transportation, trade facilitation and promotion.

“Our core objective is to enhance our value proposition for our respective membership,” says Fabien who describes CARICHAM as “a platform to encourage more exchanges among our members and, in turn, improve awareness and provide economic opportunities,” and adds: “In

Opportunities and obstacles Most of the members of the Saint Lucia Chamber of Commerce, Industry and Agriculture are small or micro-sized enterprises. CARICHAM gives these smaller players a route into regional markets, according to Fabien who says: “Members of Chambers [such as Saint Lucia’s] are able to leverage this platform to facilitate greater economic activity specifically as they are small. Anecdotal evidence is already suggesting that more firms are interested in doing more business regionally through their communication with our various Chambers.”

CARICHAM wants to take on the big obstacles to growth faced by all businesses in the region. For Fabien, the biggest concerns include poor transportation links and vulnerability to natural disasters. She’s also focused on the region’s lack of competitiveness arising from shortfalls in the area of Ease of Doing Business and an inability to fairly compete with larger countries who have more resources at their disposal.

“Our businesses suffer from high cost of raw materials, disruption in transport routes and utilities, supply chain gaps [and] high operating costs, all of which result in a lack of competitiveness.”

CARICHAM, which was established with the help of the United Nations International Strategy for Disaster Risk Reduction, the European Union and the Caribbean Disaster Emergency Management Agency, intends to exploit its regional and international partnerships to make progress in these areas. Fabien says: “CARICHAM will ensure that best

may 18, 2019

www.stluciastar.com

practices are shared, learned, amended as necessary and implemented across the region to ensure that we mitigate against future challenges. We will also collaborate with all partners regionally and internationally to determine and implement solutions to the challenges we face.”

Work ahead Unanimously voted by her colleagues to serve as CARICHAM’s first chairperson was a “great honour” for Fabien, but the Dominican businesswoman knows there is a lot of work ahead. She wants her tenure to be characterised by an emphasis on strengthening capacity through engagement. Fabien wants to establish and convene working groups to draw up 12 to 24 month action plans, then collaborate with agencies that can deliver on those findings. At all stages, she wants to ensure CARICHAM members are fully able to participate and that their voices are heard.

“I am greatly humbled as I believe that this is a unique opportunity to support the advancement of our region,” she says. “Our immediate priorities are to solidify our pillars through the implementation of our action plans.

These will provide a pathway for our network in the short and medium term.”

The network intends to resume meeting online, hosting virtual general meetings at least once a quarter or more frequently if needed.

The working groups, comprised of Chamber Executive Directors and members, will get together more often to chart their progress. Fabien says there will be no shortage of dialogue as the group pulls together to achieve its goals. “Our robust method of digital communication allows us to communicate weekly, and in some cases daily, as we are able to share information of common interest.

“As we strengthen our Chambers to provide enhanced value at local and regional levels, this should be translated into economic benefits and stronger economies. This will not occur in an instant but, with persistent efforts, we will realise the growth we desire.”

5

6

The star businessweek

may 18, 2019

Barbados creditors fume at ‘absurd’ $27mN advisory fees Continued from page 2

Barbados’s debts came to roughly 160 per cent of gross domestic product at the beginning of the restructuring in June last year, among the highest in the world.

Mr Espinosa and Mr Nagoski point out that their business in the country goes beyond the public restructuring and that they are not charging a fee for additional work. The pair say they are advising Barbados on several commercial contracts, as well as the restructuring of a number of state-owned enterprises and the country’s regional airline, of which the government is the largest shareholder.

However, few Caribbean debt restructurings have paid out fees in the tens of millions to financial advisers in recent years. Citigroup earned roughly $3mn restructuring Jamaica’s $9bn of defaulted debts in 2013, and in Belize advisers were paid single-digit millions for the restructuring of more than $525mn of debt in 2017, according to people familiar with both deals.

Mr Espinosa and Mr Nagoski stress that they have experience of complex work in Pakistan and Iceland and “unequalled” credentials in the Caribbean, having advised on restructurings in

Companies Office

www.stluciastar.com

Belize, Grenada and St Kitts and Nevis, among others. They argue that the $1bn in savings claimed by the Bajan government, as a result of the firm’s advice, should rise to more than $2bn over the next four years.

Bills for interest and professional advice are piling up at a time when the Bajan government has had to call on the IMF for a $290mn bailout. The fees to White Oak represent nearly one-tenth of this lifeline.

“By any metric or rationale, the fee is outsized and unwarranted,” said Mr Newman of Invesco. “But if someone were to say, ‘Hey, I’ll pay you six times what you normally get paid,’ would you say no?”

White Oak’s partners said the fee was justified because “placing this debt on a sustainable footing has required an unusually complex operation”

The Saint Lucia Registry of Companies & Intellectual Property Company Incorporations Name: Abejas Group Inc.

Name: Capitulum III (Cap 3) Inc.

Description: Parent Company

Description: Holding company

Directors: Jonathan Lesfloris,

Directors: Jane Norbert,

Davianne Daniel

Dylan Nobert-Inglis

Date Incorporated: 4/1/19 Chamber: SEDU Name: Go Saint Lucia Inc. Description: Destination management services

Date Incorporated: 4/15/19 Chamber: SEDU Name: My Home Ltd. Description: To do any business

Directors: Daly Mariatte

which is not restricted by law

Date Incorporated: 4/2/19

Directors: Deepak Mahtani, Pearl Scotland

Chamber: Nicholas John & Co.

Date Incorporated: 4/16/19 Chamber: Temple Law Associates

Name: Gemini Construction INC. Description: Construction services

Name: Way Up Tours Inc.

Directors: Christopher Charlie,

Description: Touring Company

Causandra Charlie

Directors: Zacchaeus Loctor,

Date Incorporated: 4/4/19 Chamber: George & Co. Name: Kuduro Entertainment Inc. Description: Entertainment

Fernand Xavier Date Incorporated: 4/16/19 Chamber: SEDU

Directors: Zacchaeus Loctor

Name: Piggy Bank Inc.

Date Incorporated: 4/4/19

Description: Private transit service

Chamber: SEDU

Directors: Tovah Gibson Date Incorporated: 4/18/19

Name: Southeastern Caribbean

Chamber: Brickstone Law

College Inc. Description: Academic services

Name: Xpress Holdings Ltd.

Directors: Rev. Cletus Henry,

Description: Import, export, retail

Pastor Zifus James, Shelly-Anne James Date Incorporated: 4/10/19 Chamber: George & Co. Name: Kingdom Harvest Fellowship Inc.

and distribution of a varitety of items Directors: Pinkley Francis, Jodi Boodhoo Date Incorporated: 4/24/19 Chamber: Brickstone Law

Description: Youth ministry Directors: Eurisca Chandler,

Name: Hope and Liberty Medical

Esther Matthew, Johana Hinds

Services Limited

Date Incorporated: 4/11/19

Description: Medical tourism

Chamber: Chong & Co.

Directors: Suhas Kotbagi Date Incorporated: 4/26/19

Name: Island of Birth Inc.

Chamber: SEDU

Description: Music production Directors: Arthur Antoine Date Incorporated: 4/15/19 Name: Autoclared Aerated Concrete Enterprises (A.A.C.E.) Construction Inc.

Name: Phillip Hiking Tours Inc. Description: Hiking tours Directors: Phillip Paul Date Incorporated: 4/26/19

Description: Construction importation and development

Name: Nawi Products Limited

Directors: Dylan Nobert-Inglis

Description: Import/Export

Date Incorporated: 4/15/19

Directors: Zephrin Joseph

Chamber: SEDU

Date Incorporated: 4/26/19

LEGAL

The star businessweek

Caribbean Law: The Privy Council v.

The Caribbean Court of Justice

By ED Kennedy, STAR Businessweek Correspondent

I

n recent years the Caribbean has seen a number of high profile cases find a final resolution far from home in the UK’s Privy Council (PC).

However, with the rise in the past two decades of the Caribbean Court of Justice (CCJ) as an alternative to the PC, there’s renewed debate about the appropriateness of a London-based court having the final say on Caribbean legal matters. That’s why it’s a good time to review the state of play between the PC and CCJ.

The CCJ Today Many in the Caribbean family will read of the CCJ with a good knowledge of what it does but, given the relative newness of the court’s establishment in 2001, and the role it occupies as an original jurisdiction and an appellate jurisdiction, a brief recap is useful.

In its original jurisdiction, the CCJ typically hears cases brought before it that concern matters under the Revised Treaty of Chaguaramas, the 1973 document that established the Caricom Community and Common Market, a precursor to today’s CARICOM. Originally established by Barbados, Guyana, Jamaica and Trinidad and Tobago, the CCJ offered these four nations (who all won independence from the UK in the 1960s) a path to grow a stronger regional community and identity, with the CCJ serving as their judicial cornerstone.

The CCJ also serves as a court of last resort; the last avenue of appeal for criminal and civil matters for those in member nations — currently Barbados, Belize, Dominica and Guyana but with a number of others such as the Bahamas and Jamaica having long signalled an interest in joining. It’s a recognition by member states that the CCJ is a better fit for their modern nations than the UK-based PC. Holding Court: Why the CCJ Matters Like any group or sector of a society, the legal community is one that can be burdened by excess work, a lack of resources and even human errors that all hinder the process. So while theoretically a right to speedy justice may exist, in reality many significant cases will require 12 to 18 months, if not much longer, to arrive at something bearing a final resolution in court.

In this already strained system, a local appeal to the PC afar adds a ton of new challenges, asking parties to a dispute to pack up their claims and traverse 4,500 miles to London to seek a final outcome. In doing so, the expenses of

Last week the CCJ heard a case concerning the freedom of movement of Caribbean citizens as well as two sets of cases from Guyana concerning last December’s no-confidence motion and the appointment of Guyana’s Elections Commission Chairman. Photo taken at CCJ headquarters in Port of Spain, Trinidad & Tobago.

litigation can be compounded by travel costs, accommodation costs and the need to hire local lawyers in London who have expertise in the PC’s processes.

It’s true that any parties who have the funds to pursue matters all the way through to the PC may already have substantial resources and little concern about comparatively small legal expenses but, even so, this can create an issue in and of itself.

Despite the aspiration for courts to deliver fair and equal justice for all, wealthy parties recognise that their odds for a favourable outcome against a party with less money will improve the longer they go on, and the more they seek to financially strain their opposition. With this dynamic as it stands, the push for a stronger CCJ is a compelling one.

Local Law and Local Outcomes The real strength of the CCJ is visible in the landmark cases it has ruled on, and it also has a key role in developing a new regional identity.

In cases like LOP Investments Ltd v. Demerara Bank Ltd, and Atlantic Corporation Ltd v. Development Finance Corporation, the CCJ has reinforced contemporary practices in commercial business. It delivered noted precedents via Barbados in Hope v. Rodney, and Colby v. Felix Enterprises that have brought clarity to contract disputes in conveyancing matters; and in Marin v.

Attorney General of Belize it ruled on the extent to which civil remedies can be pursued against politicians who have acted corruptly, and who would usually be subject to criminal charges.

These are cases that are not only consequential to member nations, but have served to show the gulf between the local remedies available within the CCJ and the challenges of retaining the PC which, after all, was envisioned to be the last word on the common law at a time when British law and culture reigned across the region, and much of the world.

Now, that’s no longer the case and, as shown by cases like the Turks and Caicos

with Airbnb in 2017, and Trinidad and Tobago with the death penalty matter of Jay Chandler, irrespective of whatever outcome is found at the PC, for many people in the Caribbean family the idea of a regional matter of justice being decided once and for all far from local shores is nowadays increasingly unpalatable.

The issue with inefficiency is that it cuts both ways. The UK judiciary has been known to gripe about its involvement in Caribbean matters, feeling that its role is no longer one it can best do, or indeed should do, given the passage of time.

Any Reason to Keep the Privy Privileged?

Considering the number of Caribbean nations that have begun a push towards utilising the CCJ, the absence of others doing so could prove a disadvantage to all, but especially to nations who do not turn to it. This is because while there are many factors that can flow into a company’s decision surrounding where to headquarter and why, each one domiciles not only with a view to maximising advantages but also to limiting liabilities. The CCJ’s stated aspirations are to provide equitable access

may 18, 2019

www.stluciastar.com

for those who appear before it with limited resources and money.

Some businesses could see the ability to delay and forestall as an advantage but, for most businesses that are start-ups, new companies, and otherwise seeking to grow in the market, litigation that can result in months of delays, expense and a cloud hanging over their business is totally undesirable.

The Identity Factor The rise of the CCJ is not just a story of legal convenience, it’s also one of identity. Other young nations like Australia and New Zealand abolished their links to the PC not to simply reject Britain but to acknowledge that their future required recognition of their distinctive identities. The same is being seen in the Caribbean with the greater adoption of the CCJ. The story of the CCJ is ultimately about Caribbean nations affirming they have the capacity to build their own identities as individual nations, and collectively as a regional community.

Legal scholars will argue back and forth about the merits of cases in the CCJ, but the merit of the CCJ itself, rising as a presence in this region, is undoubtedly a terrific development, and one to watch with interest as more nations look to creating a SBW greater role for this court.

7

8

The star businessweek

may 18, 2019

www.stluciastar.com

Printed & Published by the Star Publishing Co, (1987) Ltd. Rodney Bay Industrial Estate, Massade , P.O. Box 1146, Castries, St Lucia, Tel (758) 450 7827 . Website www.stluciastar.com All rights reserved