Budget Speech 2011 - Government of Grenada

Manufacturing
I am pleased to announce that Government has agreed to extend the 10%
rebate to manufacturers on their VAT exclusive sales for the entire year.
As an incentive for small agro-processors which do not meet the current
registration threshold of $120,000, Government has agreed to register
them so they can receive the benefit of claiming input VAT.
Mr. Speaker, by its actions this Government continues to demonstrate that
it is business friendly and continues to listen attentively to the needs and
concerns of the business community.
VII. Collaboration with Prospective Investors
Mr. Speaker, our Government has pro-actively pursued partnership with
the Private Sector. Indeed, we have gone the extra mile to engage and
facilitate investors, whether foreign or local.
As recent as last December, the Ministries of Finance, Foreign Affairs
and the Grenada Industrial Development Corporation mounted a jointinvestment
promotion seminar in Brussels, in which representatives of
major tourism sector projects participated. These developers, representing
Bacolet, Levera and Secret Harbour, were provided with an opportunity to
market their projects before representatives of financial institutions such
as Kommerz Bank of Germany and KBC Bank of Belgium, for possible
financing. These missions, when appropriate, will continue.
Government is also facilitating the attempts by local developers to
raise capital from international institutions. In this regard, we recently
signed an agreement with the OPEC Fund for International Development
(OFID) to facilitate concessionary borrowing to at least two major local
developments in the tourism sector. I want to make it clear that no
government guarantees are involved.
The point, Mr. Speaker, is that the Government is taking extra-ordinary
measures because these are extra-ordinary times. We understand only too
well that the fiscal incentives and institutional fast-tracking are necessary
2011 Budget Statement Page 69