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Some of these concerns include but are not limited to: • The enormous legal and financial burden being placed on the island’s Financial Services Sector by organizations such as the Organization for Economic Cooperation and Development (OECD): 23 Global Forum and the European Union Council.
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These organizations hold countries hostage by unilaterally forcing them to enact financial Services legislation and regulations that would limit the growth of this sector under the guise of safe guarding their own tax base. They threaten sanctions and impede the growth of our fragile financial markets by removing corresponding banking relationships. Thus, making it more difficult for SIDs such as Nevis to develop a resilient and robust economy.
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15,500,000 15,000,000 14,500,000 14,000,000 13,500,000 13,000,000 12,500,000 12,000,000 11,500,000 Graph 18 International Financial Services Revenue • This Sector lacks scale and depth. The number of participants, the quantity of and substantive services that are offered would need to increase and improve. level the 2014 2015 2016 2017 2018 2019P 2020P 2021P Revenue Budget • There is not enough qualified professionals available currently in the sector or to support future expansions and growth.
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• The Sector lacks innovation and presence. There is a significant amount of competition globally and if the Sector is to grow it will have to be innovative in its product and service offerings and ensure that its marketing strategy is coherent and productive. The International Financial Services Sector on average contributes 10 percent to recurrent revenue.
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This Sector has the potential to contribute greatly to economic growth on the island, through job creation, by contributing to an increase in Government revenue, as an aid in the development of a resilient and diversified economy, and as a pathway through which the lives of citizens can continue to improve.
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24 25 Appendix I Categories NEVIS ISLAND ADMINISTRATION FOR JANUARY - DECEMBER 2018/2017 in econom ic classification form at 2018 Annual Budget Budget $ 2018 Annual Actual $ Current Revenue and Grants Current Revenue Tax Revenue Taxes on Incom e & Profits Corporate Income Tax Withholding Tax Social Services Levy Taxes on Property Property Tax Taxes on Dom estic Goods & Services Wheel Tax Consumption Tax (Inland Rev.)
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179,409,100 137,922,400 102,676,000 17,100,000 6,200,000 400,000 10,500,000 3,500,000 3,500,000 37,352,000 2,600,000 - 191,703,395 138,440,813 102,817,196 17,608,922 6,199,266 920,521 10,489,135 3,852,772 3,852,772 35,557,321 2,736,536 - Stamp Duties 11,600,000 10,563,717 Coastal Environmental Levy Insurance Levy/Fees Un Incorporated Business Tax Unclassif ied VAT Licenses : Gaming Levy Licenses of w hich: Banks Licence Business & Occupation Licence Drivers Licence Taxes on International Trade Import Duties Excise and Export Duty Environmental Levy Consumption Tax Travel Tax Customs Service Charge VAT Other Non-Tax Revenue Rent of Government Property Fees, Fines & Sales Post Of f ice Passport, Permits, etc.
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Hospital Financial Services Supply Of f ice Water Service Agricultural Sector Other Non-Tax Revenue Interest and Dividends Source: Ministry of Finance Feb 2019 184,090 484,789 2,095,643 - 16,926,295 752,199.28 1,814,050 - 739,030 862,946 45,798,182 11,756,055 6,644,679 1,853,164 326,167 123,763 8,985,852 16,108,503 - 35,623,617 387,294 180,782 521,149 1,383,536 910,775 13,873,875 7,010,864 5,680,162 401,250.54 4,573,055 700,875 350,000 465,000 1,800,000 500,000 18,000,000 500,000 1,537,000 120,000 600,000 730,000 44,724,000 11,940,000 4,800,000 2,056,000 100,000 350,000 8,500,000 16,750,000 228,000 35,246,400 424,500 255,000 728,500 1,665,000 875,000 14,923,500 7,500,000 6,347,500 579,500 1,947,900 - 26 2017 Annual Actual $ 188,863,322 129,064,593 96,698,367 17,679,211 7,635,710 409,710 9,633,791 3,219,059 3,219,059 32,318,634 2,652,126 6,779 8,152,391 224,180 485,491 1,996,415 - 17,053,884 - 1,747,370 104,000 683,820 822,319 43,481,462 11,743,681 5,383,818 2,388,845 49,705 219,177 8,137,624 15,558,612 - 32,366,227 313,029 122,762 569,343 1,599,623 853,578 13,263,902 6,937,578 4,747,462 357,548.05 3,601,403 - NEVIS ISLAND ADMINISTRATION FOR JANUARY - DECEMBER 2018/ 2017 in econom ic classification form at EC$ Categories 2018 Annual Budget $ 2018 Annual Actual $ 2017 Annual Actual $ Current Expenditure 149,779,850 147,534,279 141,469,337 Personal Em olum ents Salaries Wages Allow ances 81,129,800 54,332,900 25,544,600 1,252,300 78,500,802 52,241,110 25,097,581 1,162,110 78,547,160 51,627,762 25,651,409 1,267,989
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78,547,160 51,627,762 25,651,409 1,267,989 Goods and Services 37,147,750 35,103,020 31,386,486 Interest Paym ents Domestic Foreign Principal Repaym ent Domestic Foreign Transfers & Subsidies Pensions and Gratuities Regional and Int'l Contributions Public Assistance 17,775,800 16,461,500 1,314,300 12,831,700 7,805,150 5,026,550 13,726,500 8,500,000 3,518,000 1,708,500 17,180,317 14,433,100 2,747,217 12,574,261 4,642,744 7,931,517 16,750,140 11,093,751 4,069,018 1,587,371 16,682,983 15,709,852 973,131 7,747,568 2,540,912 5,206,656 14,852,707 9,782,331 3,754,363 1,316,013 Current Account Balance (11,857,450) (9,093,466) (12,404,743) Grants Budgetary Grants Capital Grants Capital Expenditure Fixed Investment Below the line expenditure Unrecorded Expenditure Net Lending 41,486,700 30,000,000 11,486,700 64,712,700 64,712,700 - - - 53,262,582 37,110,077 16,152,505 50,812,322 50,812,322 - - - 59,798,729 30,813,404 28,985,325 63,522,786 63,522,786 - - Overall Balance Prim ary Balance (35,083,450) (17,307,650) (6,643,207) 10,537,110 (16,128,800) 554,183 Source: Ministry of Finance Feb 2019 27 Appendix II 28
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2010 BUDGET ADDRESS “Reorienting economic activity by fostering a competitive business and investment environment” By Honourable Joseph Parry Premier and Minister of Finance Nevis Island Administration Wednesday 9th December, 2009 1. Madam President, I beg leave to move the second reading of the Bill shortly entitled the Appropriation (2010) Ordinance, 2009. INTRODUCTION 2.
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INTRODUCTION 2. Madam President, I present this budget against the backdrop of a severe global recession that has significantly suppressed growth and the standard of living to which most countries have grown accustomed to. The situation in Nevis has become even more acute as a result of the closure of the Four Seasons Resort since September 2008 due to damage sustained from the passage of Hurricane Omar.
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My government has done everything in its power to persuade the bank and the Four Seasons management to resolve all outstanding issues expeditiously so that the Hotel could begin operation. We have held important meetings with the owners and Four Seasons in New York, Miami and Nevis and have granted significant tax concessions as an inducement to the owner to speed up the process.
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To date we have not been given a definitive time table for the reopening except a commitment that the reopening will take place in 2010. 3. Madam President, the island of Nevis has an excellent tourism product and so I am very optimistic that the hotel will reopen next year. My government will continue to exert its influence to impress upon the owners the importance of the Four Seasons Resort to the economy of Nevis and will take the necessary action to protect the livelihood of our people. 4.
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4. However, we cannot blame the Four Seasons Resort for the predicament that we have found ourselves in. Since the Four Seasons was brought to Nevis by the NRP government in 1991, we have not been able to attract any major foreign investments to diversify the economy and provide alternatives for our people. The CCM led government spent fourteen years in power, from 1992 to 2006 and could not attract one major investor.
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During the same period, many other islands in the OECS including St Kitts, Antigua, Anguilla, and St Lucia were able to bolster their economies by attracting significant foreign direct investments. The success we have witnessed in Nevis over this period was created by public sector induced growth and an accumulation of debt. In fact, over the years, the revenue generated by the Four Seasons was leveraged to build roads and port facilities; projects that were conceived by the previous NRP government. 5.
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5. While the present government undertook several critical capital projects and added to the debt stock, we have not lost sight of the fact that the private sector must become the engine of growth 1 to ensure sustainability and the maintenance of a decent standard of living for our people. To this end, we must seek to reduce our reliance on the Four Seasons Resort understanding fully the risk associated with the dependence on one sector or business for our livelihood.
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The top priority of my government is to diversify the Nevis economy to make it more resilient to internal and external shocks. This will require the government taking tangible actions to boost economic output, energize foreign and local investors, and increasing agricultural production. We will also have to continue to focus attention on tourism and financial services as these will continue to be important components of our development strategy.
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However, we must attract and develop other industries to increase diversification and thus buffer our economy from the vagaries of the international economy. For this reason, I have carefully selected the theme, ‘re-orienting economic activity by fostering a competitive business and investment environment.’ This will be the focus of my government during the next fiscal year and the foreseeable future. 6.
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6. Madam President, according to the IMF world economic outlook, global economic activity is expected to contract by 1% in 2009. However, there are signs that the recession is coming to an end and thus the global economy is expected to grow by 3% in 2010 driven by China, India and a number of the emerging Asian economies. Asia’s GDP is forecasted to grow by 5.75% nearly twice that of the global economy. The advanced economies are expected to grow by 1.25% following a contraction of 3.5% in 2009.
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With such a sluggish growth, unemployment is likely to get worse before improving late in 2010. The United States is expected to grow by 1.5% in 2010 after a contraction of 2.7% in 2009. Growth will be very slow due to the following reasons: 7. Private consumption will remain sluggish as consumers increase savings to improve their balance sheets; 8. Large fiscal imbalances and high debt which will limit the government’s ability to pursue expansionary fiscal and monetary policies; 9.
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Financial conditions will remain tight as banks become more prudent in lending, and stringent prudential regulations are enforced. 10. The global economic outlook does not augur well for many of the Caribbean countries especially the OECS. As a result of our dependency on tourism receipts and remittances, recovery will be very slow due to high unemployment and low private consumption that will 2 continue in the United States and other industrial countries to which our economies are linked.
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Furthermore, many of our countries are burdened with very high debts and thus do not have the fiscal capacity to implement stimulus packages to augment domestic demand and protect vulnerable groups. As a result of these factors, 2010 is projected to be a very difficult year for many Caribbean countries. 11. In fact, I recently attended a meeting of the OECS heads in Anguilla, and all of the OECS islands reported that they are experiencing severe fiscal challenges as they cope with the global recession.
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It is anticipated that tourism receipts, foreign direct investments and remittances will continue to decline placing greater pressure on our balance of payments. In addition, we have not resolved the British American fiasco which poses a serious threat to the financial system in the OECS. Consequently, most of the islands are planning for deficit budgets that will result in a further escalation of debt in the region. 12. The situation in Nevis is no different.
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12. The situation in Nevis is no different. We are expecting negative primary balances and deficits on current account for both 2009 and 2010. We have tried hard to limit capital expenditure and curtail current expenditure, but government will have to intervene in critical areas of the economy to continue to protect the disadvantaged and to stimulate growth. This requires that we increase our borrowing in the short to medium term.
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However, as the economy recovers, the government will be proactive in implementing measures to reduce the debt burden and in partnering with the private sector to grow the economy and to foster an environment conducive to wealth creation. 13. Despite the Four Seasons closure and the global recession, my government has made significant strides.
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The poverty rate has dropped from 30% to 16% and abject poverty has been eliminated; We have improved significantly our road network and our school environment; we have provided over 200 affordable homes; we have constructed a drag racing strip to provide activities for locals and tourists; we have injected new life into Agriculture; we have pioneered the homework assistance programme; and we successfully negotiated a loan from Social Security to initiate a stimulus programme aimed at pursing well targeted capital projects and generating employment.
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However, there are some downside risks for the Nevis economy revolving around deteriorating fiscal position, the impact of Western Union and CLICO, and any further delays in the reopening of the Four Seasons Resort. Consequently, the next fiscal year is predicted to be 3 more challenging than 2009, and thus we will have to carefully balance expenditure management and policies to stimulate economy growth to avoid a deepening of this recession. 14.
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14. This budget will seek to outline as explicitly as possible the concrete actions that my government will take to address the fiscal challenges, stimulate economic activity, and prepare Nevis to take full advantage of the economic recovery that is expected in 2011. 15. I will now speak to the performance and prospects of the key sectors of the economy beginning with Tourism since this is the most important sector in the Nevis economy. TOURISM 16.
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TOURISM 16. 2009 will go into the history books as one of the worst years for tourism in Nevis. The obvious reason was of course, the closure of the Four Seasons Hotel compounded by the global recession. However, the U.S. Consumer Board of Confidence Index continues to hold steady at just under 50%, thus causing a more favourable outlook for next year as opposed to the same time last year. This cautious optimism has manifested itself in a pattern of slow and late bookings.
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Locally, a similar mood of optimism holds, at least for some of our stakeholder partners. We checked with a number of them in order to get a reliable assessment of current conditions. We found a similarity in the responses for the most part, which suggested that although times are still tough, the worst may be over. 17. Discussions with key stakeholders revealed a variety of reactions to the situation.
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One property forecast a 7% increase over 2009, others expect very little change, while another has upgraded its facilities thus showing some confidence in future trends. Others have instituted a program of specials. All, however, are making an effort to maintain a profile in the market until things improve. Overseas, Agency managers have reported that clients are beginning to call again responding to increased levels of confidence in the improving global economy.
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We will remain in close contact with all of our accommodation stakeholder partners and assist in every way we can until things return to normal. Marketing 18. Support for the Nevis Tourism Authority will continue both institutionally and financially.
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The closure of the Four Seasons Resort on Nevis has brought to light an opportunity for the 4 Nevis Tourism Authority to examine its strategy and take appropriate steps to focus greater attention on our small and medium size properties and other auxiliary services to ensure their viability. 19. Although the usual modes of marketing such as trade shows attendance, newspaper articles and the like, have placed us in good stead in the past, the time has now come to balance that with a modern approach.
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We live in a brave new world where technology is becoming increasingly more important in day to day decision making. More and more persons are making travel and holiday decisions based on information gained by surfing the web. More and more companies are doing business by advertising on the web. This means that we can easily raise our profile as a destination and do more and cheaper business by using Search Engine Marketing/emarketing as a tool to promote Nevis. Product Development 20.
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Product Development 20. Our commitment to cruise tourism has led us to collaborate with a New York based company Namdar Brothers Realty, to establish probably the most ambitious development plan ever for the Charlestown Waterfront.
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This is the Charlestown Redevelopment Project which envisages the creation of a new upscale shopping facility which will offer up market, high end duty free retail shops and restaurants, food and beverage establishments, as well as entertainment readily accessible to cruise, non cruise visitors and residents at all times. Development contracts have been signed already and work is due to start very soon.
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This development has already attracted interest from two cruise lines that do not currently serve Nevis, namely, Carnival Cruise Lines and Royal Caribbean Cruise Lines. In fact Royal Caribbean has requested a meeting with us in early March 2010. This follows an initial contact between the Ministry of Tourism personnel and Royal Caribbean at the FCCA meeting in St. Lucia in October of this year. Airlift 21. We continue to be challenged in the area of airlift.
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The region as a whole has suffered tremendously due to the reduction in airlift, intra-regionally and to Nevis in particular. American Eagle, WINAIR and LIAT have significantly made cutbacks on airlift into Nevis. With the reopening of the Four Seasons in the future, we expect that this will change. However, while we have seen this decline of direct airlift into Nevis, we have also seen a significant increase in 5 airlift into St. Kitts with the opportunity for easy transfer to Nevis.
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Nevis now has major connections from London (BA), New York (AA), Atlanta (Delta), Charlotte (USAIR) and Miami (AA) with opportunities for connection from other feeder cities. This great opportunity provides a chance for Nevis to build strong relationships with these partners knowing that a lot of the evidence has shown that most of the first class travellers in these services are bound for Nevis.
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The introduction in particular of direct British Airways flights to Basseterre has proven to be extremely valuable by removing the frustration, uncertainty and unreliability of getting to Nevis via Antigua, and, with the BA plan to further improve this service by putting on another flight early in the New Year, it gives us another marketing tool to strengthen our thrust towards increasing our European market share. Sports Tourism 22.
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Sports Tourism 22. Sports Tourism, through the Fishing Tournament, the Annual Triathlon event, Horse Racing and Drag Racing have increased Nevis’ visibility regionally and internationally. This certainly puts Nevis in a position to better market itself as a destination with a larger variety of activities and opportunities to have a great vacation. We also want to highlight the input of the Nevis Yacht Club.
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The financial impact of the Fishing Tournament, has been notable, but their drive in support of marine awareness and conservation will have an even more far reaching impact in the years to come. Development of the local product 23. Last year’s budget mentioned two projects important to the ongoing creation of local activities for our visitors, the “Made in Nevis” Artisan Village and the New River Plantation Yard Museum. Due to the financial situation both projects had to be put on hold.
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However, I am pleased to say that these projects are back on track. The Artisan Village will open in January 2010 with New River slated to come on stream later in the year. Tourism Education 24. As part of our human resource mandate to instill in our youths an appreciation of the importance of our tourism product, the Ministry is now including Tourism Education in the curriculum of all of the Public Primary Schools in Nevis. 6 25.
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6 25. This approach is bearing fruit as our Nevisian students continue to excel in regional tourism contests coordinated by the Ministry of Tourism. This year, Nevis placed 2nd regionally in the Florida Caribbean Cruise Association (FCCA) Environmental Poster Contest, won by Kelsia Liburd of the Joycelyn Liburd Primary School. She received cash prizes of U.S. $1500.00 for herself and U.S. $1500.00 for her school. 26. Nevis also placed 2nd regionally in the 2009 FCCA Essay Contest.
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Chloe Williams of the Charlestown Secondary School was the winning student. Both Chloe and her school received from the FCCA cash prizes of U.S. $1,500.00. Our students have been blazing the trail of excellence and are increasingly participating in our programmes. Tourism Youth Council 27. In December of this year, The Ministry of Tourism will launch its first Tourism Youth Council.
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Through the Youth Council, students attending Secondary Schools and the Nevis Sixth Form College will be engaged in experiential learning in areas such as travel writing, videography, photography, tour guiding, and culinary arts. This will create a cadre of young people knowledgeable in tourism matters, who will then be in a position to serve as goodwill ambassadors for the island. 28. The Ministry also continues to place emphasis on capacity building through training.
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Earlier this year we partnered with the Organization of American States (OAS) in order to facilitate the following American Automobile Association – (AAA) certified training programmes, namely, the Certified Hospitality Department Trainer’s Workshop, and the Front Office Representatives Skills Workshop. Sustainable Tourism 29. Community tourism is another area in which the government is seeking to further the development of Sustainable Tourism. 30.
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30. The Ministry of Tourism partnering with the Inter- American Institute for Cooperation and Agriculture, (IICA) has launched the Gingerland Agro-Tourism Project, (GATPRO) an initiative aimed at promoting responsible community tourism in the Parish of St. George, through linkages 7 in Eco-Tourism, Cultural Heritage Tourism and Agriculture. Through this project a number of activities have been held, highlighting resources and skills of the people of Gingerland.
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It is our aim to repeat this exercise in other parts of the island in the near future. 31. With these programmes, my government is building the foundation to ensure that tourism remains an important industry in Nevis. We are also very optimistic that this sector will rebound by the next tourist season. FINANCIAL SERVICES 32. Madam President, the financial services industry is very important to the economy of Nevis, contributing over 12% of government’s revenue.
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However, over the past two years the sector has come under severe pressure from external forces such as the Financial Action Task Force (FATF), the Organisation for Economic Co-operation Development (OECD) and the G20, that perceive the sector as a threat to the tax system of their member countries. Consequently, we have had to expend significant time and resources to address the issues raised by these organizations to ensure the viability and sustainability of the sector. 33.
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33. With the constant threat of sanctions, there has been a declining trend in revenue since 2007. Between 2007 and 2008, revenue fell by 6.8% and up to November 15 of this year we have collected $9.5 million which indicate that the outcome for 2009 is likely to show a small drop when compared to 2008. 34. Madam President, the Federation is currently on the OECD “grey list” of countries which means that we have not yet substantially implemented the internationally agreed tax standard.
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To be in full compliance, the Federation will have to sign at least 12 tax information exchange agreements (TIEAs) with OECD countries. This will ensure that we are able to graduate to the “white list” the criterion being that we have substantially implemented the tax standard. In moving towards this goal, the Nevis Island Administration has given tremendous support to the Federal Government in ensuring the Federation’s graduation to the OECD’s white list. 35.
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35. To date, we have successfully concluded and signed five (5) tax information exchange agreements with the Netherlands, Netherlands Antilles, Aruba, Denmark and New Zealand; and one (1) double taxation agreement (DTA) with Monaco. We are in the process of negotiating 8 agreements with at least seven (7) other jurisdictions namely: Australia, United Kingdom, San Marino, Liechtenstein, Norway, India and Finland.
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I am therefore, hopeful that the agreements with these countries would be executed within the 1st quarter of 2010. 36. Madam President, following the Caribbean Financial Action Task Force Mutual Evaluation that was presented in Trinidad and Tobago in May of this year, the Nevis Island Administration has been in collaboration with the Federal Government in ensuring the implementation of the diverse recommendations cited in the said report.
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This has resulted in the decision to establish a single and integrated regulatory unit to regulate all of the financial institutions in the Federation except class A banks which will continue to be the purview of the Eastern Caribbean Central Bank (ECCB). 37. To this end, the recently enacted Financial Services Regulatory Commission Bill, 2009 provides for the regulation of non-bank financial institutions.
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It also establishes an operational department in Nevis (currently the Financial Services Regulatory and Supervisory Department), which would continue to process licenses, collect fees, supervise and regulate all providers of financial services in the island of Nevis except for those services covered by the Banking Act. The Commission will be an independent body comprising of members from both St Kitts and Nevis including the two Regulators and Financial Secretaries.
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Both islands will contribute to the budget of the Commission. 38. Madam President, as a result of the severe pressure being exerted on financial centres, some of the multi-lateral institutions have advised that the situation will get worse and that we should begin to develop alternative industries to sustain our economies. My government is fully aware of the threats but we do not have any intention of giving up.
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In the future, we intend to shift our focus to markets in Latin America, Asia and the Far East where the demand for our products is growing rapidly. We have already requested the Federal Government to appoint Honorary Counsels in United Arab Emirates and China to facilitate the expeditious processing of document for Nevis entities.
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My government is also seeking to attract new investments in the sector and thus we are in discussions with a company in Lebanon to promote Nevis in these markets and to partner with us in the management of the Registry. Our intention is to upgrade the technology and provide a top class service to clients all over the world. 9 TRADE, INDUSTRY AND CONSUMER AFFAIRS 39.
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9 TRADE, INDUSTRY AND CONSUMER AFFAIRS 39. Madam President, the government through the Ministry of Trade, Industry, Consumer Affairs, Import and Export Control continued to move towards its stated mission of fostering the growth of Trade, promoting consumer education and protection while creating an enabling environment for the development of small business. 40. Madam President, the Consumer Affairs Unit has started to fulfill its mandate of providing consumer protection and education.
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However, its full impact is still to be realized as presently rehabilitation work is being done to provide accommodation for the staff. For this coming year with a full complement of staff, it is expected that consumers would experience many of the benefits that a fully functioning unit brings with it. 41.
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41. Madam President, the government through the Ministry of Trade and Industry has successful brought all areas designated as Industrial Site under its domain and therefore has placed itself in a good position to more effectively manage them. This Unit seeks to effectively manage the various Industrial Sites, provide the relevant data and information to those interested in setting up businesses in these areas, and market them to potential investors.
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We are hoping to attract new industries looking for cheaper and greener energy especially as we are preparing to construct a geothermal plant. 42. Madam President, the International Trade Unit has been established in the Ministry of Trade. Among its goals are liaison relationships with Regional as well as International Agencies, and a partnership with the Federal Ministry of Trade.
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Through these relationships, we expect to have access to Foreign Direct Investments (FDI), opportunities for export of locally made products to niche markets, and more involvement in international trade negotiations. Adequate budgetary provision has been made to facilitate the operation of this Unit in 2010. These provisions include appropriate human resource allocations, to meet the anticipated challenges of the coming year. 43.
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43. The International Trade Unit through its established relationships with the Federal Ministry of Trade has partnered in the establishment of the Coalition of Service Industries (CSI). This 10 organization, is rooted in the private sector, but has been nurtured and assisted by the Nevis Island Administration (NIA) while still in its infancy. The CSI seeks to facilitate the movement of international service providers across our shores.
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The NIA’s Ministry of Trade and the CSI working together will assure our local service providers the opportunities to sell their services abroad, and will attract much needed foreign capital to our shore. 44. Madam President, ultimately we intend to develop a comprehensive trade, industrial and business strategy to prepare Nevis for the next 20 years in light of plans for geothermal energy, and business development.
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The top priority is to diversify the economy so that we could reduce the risk of being dependent on any one sector or business to sustain our economy. PRIVATE SECTOR DEVELOPMENT 45. Madam President, I have said before that the economic growth in Nevis over the years has been government induced and has resulted in a large debt overhang. In addition, the dependence on the Four Seasons Resort has made us extremely vulnerable to the vicissitudes of the global tourism industry.
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This government will therefore give top priority to private sector development. Our strategies will be as follows: 1. Develop and implement effective private sector strategies and policies; 2. Upgrade the institutional, legal and administrative infrastructure to facilitate private sector growth; 3. Facilitate the access of small and micro businesses to important technical, financial and informational resources; and 4. Provide the necessary tax incentive to facilitate investments. 46.
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46. Madam President, through the annual consultations, we have been able to interact with private sector officials and other stakeholders and have gleaned useful information about creating the enabling environment for private sector expansion and economic diversification. I have already outlined in a previous budget address the role that Nevis Investment Promotion Agency (NIPA) will play in facilitating both local and foreign investment.
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We have already started research work on identifying the impediments to business development and in 2010 NIPA will spearhead the implementation of policies designed to enhance the business environment. We will seek to pass and amend legislation where possible and streamline procedures to improve the 11 speed at which businesses can be established and transactions undertaken. We will also provide information to potential investors and give advice on business opportunities.
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The role of NIPA will be expanded so that the organization will have the authority to process alien landholding licenses for approved projects, and manage tax concessions for investors. 47. Madam President, one of the cornerstones of our economy is the small business sector. The Small Enterprise Development Unit (SEDU) has impacted positively in terms of the viability, sustainability and expansion of small businesses in Nevis.
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Many Small Businesses have benefited from technical assistance such as training workshops, seminars, and one on one counseling on applying proper business practices and procedures. The number of small businesses that have gotten duty concessions has risen sharply as persons have grasped the opportunity to benefit from this service. 48.
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48. The Entrepreneur Development Fund (EDF) has contributed significantly in making loans more easily available to small businesses that would otherwise have difficulties in securing them. My government took the bold step to increase the Fund from $500,000 to $1 million and expand the range of business activities that could borrow from the fund. Consequently, many more small businesses have been established and existing ones have expanded.
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My government has already passed a micro and small enterprise development ordinance to focus its attention on the small business sector by defining clearly what is a small business, facilitating registration, and providing tax incentives. The legislation also empowers The Small Enterprise Unit to play an increasing role in fostering a culture of enterprise and in creating an enabling environment for small businesses. 49.
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49. Madam President, we are already seeing the results of this government’s efforts at empowering the private sector to become fully involved in the development process. In just over three years in office, we have generated significant interest in Nevis, despite the negative impact of the global recession. In addition to the Charlestown development project, which I have already outlined, we are working on several initiatives. The Aman Resort which is proposed for Indian Castle is progressing smoothly.
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The developer has already signed several agreements including the operating agreement with Aman, the contract for the design of the golf course, and a contract with the architects for the working drawings. The plan entails the construction of about 40 hotel rooms and over 100 villas. In addition, the Palm Hotel at Paradise Estate has already begun 12 construction with plans for over 25 high class villas, and the Nisbett Plantation hotel is also expected to expand with the construction of 30 condominiums.
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We are also expecting that the Ocean Reef Resort planned for Herbert Beach will begin construction of 26 villas and 20 condominiums as soon as the global economy is on a more secure path to recovery. There are also ongoing projects including Cliff Dwellers, Live Nevis, Golden Rock Hotel, Hermitage and Mount Nevis. 50. I have just outlined a sample of some of the exciting developments that are planned for Nevis.
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While we are feeling the pressure of the global recession and the closure of the Four Seasons Resort, the future is very bright as a result of the hard work and dedication of this government in aggressively pursuing development projects for the island. We just need to exercise patience as we navigate the turbulent seas knowing that with proactive and dynamic leadership, we will overcome any obstacle in our quest to make Nevis a prosperous country for the benefit of all of us. EDUCATION AND TRAINING 51.
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EDUCATION AND TRAINING 51. Madam President, Education and Training will continue to feature prominently in my government policies and programmes to empower our people to become more self-reliant. Consequently, we will continue to fulfill our mandate to provide all Nevisians with opportunities to maximize their potential and to develop skills for lifelong learning. 52. This goal, however, can only be achieved if everyone embraces the vision and becomes totally involved in this venture.
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My government will do its part by ensuring that the necessary support systems are in place. This would be evidenced by the following: 1. Additional classrooms; 2. Refurbished computer and science laboratories as well the investment of $500,000 for new computers for all of the schools; 3. Increased number of trained personnel; 4. Expansion of the school meals programme; 5. Upgraded homework assistance programme; and 6. Improved security at all schools. 13 53.
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Improved security at all schools. 13 53. Madam President, a platform has been established over the last three years and encouraging signs have been seen in the improved performance of our students at the Test of Standards, Caribbean Secondary Examination Council (CSEC) and the Caribbean Advanced Proficiency Examination (CAPE). 54. It must be duly noted that Miss Sashia Godet was adjudged to have obtained the best CAPE results and is therefore the 2009 State Scholar.
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Her achievement has made it three in a row for the Sixth Form College and for Nevis. Mention must also be made that the top three places for CAPE came from the Nevis Sixth Form College with second place going to Michelle Slack and third place to Florelle Hobson. These students must be commended for such outstanding performances. The parents and teachers also deserve praise for their hard work in ensuring the children were well prepared for the examinations.
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Moreover, I will like to challenge the students at the Sixth Form College to work hard to emulate these students who have made all Nevisians very proud. 55. My government sincerely believes that the implementation of these initiatives coupled with the collaboration and support of social partners will result in the provision of meaningful opportunities for our people to realize their potential and therefore become active participants in the developmental process of our island. Training 56.
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Training 56. Madam President, in 2010 we intend to spend $2,738,000 on Human Resources Development. As in 2009, some EC$2,000,000.00 has been budgeted for training which, of course, remains a number one priority for the Administration. Training is crucial to the development of our human resource capital and as such continues to feature as the main activity of the Department.
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Many Nevisians continue to avail themselves of the opportunities to pursue higher education and the Administration is committed to training even in trying economic times. Over one hundred and fifty (150) persons have benefitted from Government’s assistance programme since its inception in 2006. To date, some $1,524,630.78 has been expended for 2009. 14 57. We have noted, growing interest in our regional institutions which remain quite reputable and efficient in their delivery of quality education.
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Currently, at the University of the West Indies three campuses, there are twenty-nine (29) students pursuing studies in Law, Social Sciences, Medicine (including Veterinary Medicine), Engineering, Pure and Applied Sciences and Humanities and Education. More Nevisians are also attending the University of Technology, Jamaica, pursuing the areas of Quantity Surveying, Architecture, Medical Technology and Public Health Nursing.
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We maintain that we should continue to opt for our regional institutions which are on par with some of the best around the world. 58. In-house training for the Public Service continues to play a tremendous role in fostering efficiency, productivity and professionalism in the work place.
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Training sessions have been conducted for Office Managers, Heads of Departments, Assistant Secretaries and Junior Clerical Officers in the areas of record keeping, teambuilding, interpersonal relations, Civil Service Procedures and Public Service Orientation. My government intends to continue with this drive to provide training for persons at all levels of the Public Service. 59.
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59. We remain indebted to the Governments of Taiwan and Cuba and Organizations such as the Organization of American States (OAS) that continue to provide tangible assistance in the area of human resource development. HEALTH 60. Madam President, in the midst of the global economic downturn of 2009, the government through the Ministry of Health was able to record a number of successes in the areas of capacity building, intersectoral partnership, outreach, port health development and research.
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Regional and international cooperation in health was also expanded with new and existing countries. 61. As encouraged by the Pan American Health Organization, the renewal of the primary healthcare system is a priority for the government. This renewal involves a review of the current system in an effort to ensure that core values of health are maintained including equity, solidarity, and the right to the highest attainable level of healthcare.
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There are many elements essential to attaining these values including: 15 Prevention 62. As a follow up to the Gingerland Health Centre Men’s Wellness Clinic, The Butlers Health Centre launched a men’s wellness clinic in 2009. This clinic which is held on a quarterly basis provides health education to men on a variety of topics including diabetes, hypertension, prostate cancer and HIV/AIDS. Chronic disease screening for diabetes and hypertension is also conducted.
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Health promotion initiatives particularly, the Caribbean Wellness Day Programme held in September 2009 have also resulted in increased health screening for these chronic diseases as well as for cervical cancer. 63. HIV/AIDS promotion activities are expected to result in an increase in HIV/AIDS testing in 2010. As of October 2009, 616 tests were conducted. This amount is just 49 below the number of tests conducted in 2008.
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The success in getting more people tested is a direct result of this government’s initiative to focus greater attention on HIV/AIDS Workplace Outreach Programme which provided HIV/AIDS education to business houses through a focal point, who can then provide in-house training to employees in order to ensure sustainability of a business specific HIV/AIDS education programme and inform and encourage the development of a workplace policy on HIV/AIDS.
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In 2010, the workplace outreach programmes will be expanded, with more businesses being targeted for education and screening on non-communicable diseases, in an effort to address the high prevalence of these diseases in the country. Regional and International Cooperation 64. Madam President, the government has facilitated overseas medical care for 16 persons during 2009 at a cost of EC$ 137,310.90 due to a lack of some critical services on the island.
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We have to face the reality that in a small island like Nevis, we will not have the resources to provide many of the health care services and thus we have to forge regional and international partnerships to gain access to those services. The government of Cuba provided medical care for 9 persons with varying medical conditions at reasonable costs in 2009.
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Visiting physicians from the Cuban Medical Brigade namely an Ophthalmologist and Orthopedic Surgeon commenced weekly Clinics during the last quarter of 2009. These specialists are based in St.Kitts and will serve the federation for a two year period. 16 65. Regional Cooperation in health extended further to the International Hospital for Children, through the government of St.Vincent.
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This initiative will provide general and pediatric surgical procedures in a variety of areas including neurosurgery, orthopedics, and cardiology. 66. In the area of International Cooperation, we were able to benefit in a number of areas including the following: i. The government of Spain donated a colposcope which will enhance cervical cancer diagnosis and treatment services; ii.
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Global Faith Alliance and the United States Agency for International Development donated medical supplies to The Ministry of Health; iii. Medical Missions were also conducted by the Taiwanese; and iv. The visiting team of ophthalmologists from the USA conducted their usual bi-annual clinics in April and November. 67. Madam President, we will continue to explore opportunities to access critical care by pursuing close relationships with regional and international partners.
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We cannot afford to meet the cost of sending persons to the United States and thus we will continue to use Cuba as an alternative, especially as the persons who have travelled to Cuba for medical attention are quite satisfied with the quality of care they have received. Surveillance 68. The monitoring of ports is essential, in order to prevent the introduction of vectors and non- endemic diseases to our shores. The Port Health Programme boasted tremendous success in 2009.
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The Public Health Team was able to provide consistent coverage at the Vance W. Amory International Airport during the first 90 days of the outbreak of this new H1N1 influenza virus. Cargo Ship boarding also commenced during 2009. Full coverage of cruise ships entering our ports during cruise ship season was also attained. Infrastructural Development 69. Construction of a new health centre at Brown Hill began in 2009 and is expected to be completed by April of 2010.
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