Caribbean Times 75th issue - Wednesday 23rd March 2016

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6 c a r i b b e a n t i m e s . a g Wednesday 23rd March 2016 Government continues to receive kudos for country’s economic turnaround Joanna Paris The Antigua and Barbuda Labour Party-led administration continues to receive positive reviews for its ability to stabilise the nation’s economy and to lessen the amount of criminal activities occuring in the country, in less than 24 months of assuming the government. According to Prime Minister, the Hon. Gaston Browne, various international entities have commended and continue to commend the government for its accomplishments to date. Browne suggested that the country is now “a beacon of good governance”. “The fact that issues of migrant smuggling have been brought under control, issues of crime and violence and drug trafficking have been lessened, the level of cooperation that we have extended. Even the issue with Ayoushe, we took the position that we would make Joanna Paris Prime Minister and Minister of Finance and Corporate Governance, the Hon. Gaston Browne, on Tuesday, tabled the International Banking Bill 2016 before the House of Representatives. In his explanatory memorandum, the nation’s leader indicated that the provisions in the legislation were similar to those which were passed last year in the Eastern Caribbean Central Bank (ECCB) Banking Act 2015. Browne explained that what the government is now seeking to do is to harmonize the country’s offshore him a persona non grata and get him out of the country. In addition, individuals that we have good intelligence on and who have been involved in narco-trafficking we have also made persona no grata, we get them out of the country. Why do you think that the country is so cool right now? asked the Prime Minister rhetorically. Prime Minister Browne was also high of praise for the law enforcement officers whom he described as being “at the top of their game.” He further applauded them highlighting that: “They have been heavily commended by top officials in various countries both in and out the region and, it is all part of a process to clean up the country and the country’s image.” The nation’s leader is adamant that various legislative changes will banking legislation with a domestic one. Prime Minister Browne further mentioned that Antigua and Barbuda has been considered a “tax haven” for many years, which have caused the country to be “blacklisted” by many international bodies and states, therefore continuously damaging the reputation of the country. He added that this outstanding issue has also affected corresponding banking relationships. “What this bill is seeking to do is to also strengthen the regulatory framework. Now we all know what happened with the Stanford debacle and we are still suffering from that situation up to today. “It is still fresh in the minds of many individuals and we have to take some blame bearing in mind that the regulatory framework in the country at the time was not strong enough and we are now going the extra mile to strengthen regulations in this bill … to make sure that some of the mistakes in the past, do not happen again,” the Finance and Corporate Governance Minister explained. Browne pointed out that Prime Minister, the Hon. Gaston Browne. be made from time to time so that the country can adopt international standards. “Unfortunately we are not powerful enough to set the standards; we are not even powerful enough to resist them. So if we can’t set them and we can’t resist them, then we have to adopt them”, Prime Minister Browne said logically. Debate begins on International Banking Bill 2016 the International Banking Act will be consistent with the domestic Act so that they can be no claims of inconsistency where the payment of taxes by offshore banks is concerned. “Another provision of this act, Mr. Speaker, is to ensure that going forward, that these offshore banks pay some level of taxation. “So you will see that within the bill, Mr. Speaker, that the first $10 million dollars in profits attracts about 2.5% taxation, because we are determined that the offshore financial sector must cont’d on pg 7
Wednesday 23rd March 2016 c a r i b b e a n t i m e s . a g 7 Parliament adjourns to give parliamentarians more time to review bills Joanna Paris Parliament adjourned earlier than scheduled on Tuesday just after the Leader of the Opposition, the Hon. Baldwin Spencer, rose to make his contribution to the debate on the International Banking Act 2016. Prior to Spencer taking his place on the floor, the mover of the Bill, Prime Minister and Minister of Finance and Corporate Governance, the Hon. Gaston Browne outlined the explanatory notes with reference to the Bill. However, when it was Spencer’s turn, the Leader of the Opposition cited that members of the House did not have enough time cont’d from pg 6 make a contribution to the development of the country,” emphasised the country’s leader. He further stated that the country has to pay to regulate the industry and also pay officials at the Financial Regulatory Services Commission (FSRC), who he commended for the work done in the preparation of the act. “We believe that by the end of this year after we would have passed the International Banking Act, Mr. Speaker, that we should collect perhaps in the region of $12-$15 million dollars and as we eliminate Personal Income Tax (PIT), we have to make sure that we find other revenue streams to plug that gap and this is one such initiative. “It gets even more exciting, because where as they were precluded from loaning to review the legislation, which he indicated was also lengthy. “I do feel that Members of Parliament should be given enough time to review the legislation and to contribute more adequately to the debate. I therefore do not see the need for us to rush this bill”, explained Spencer. Spencer expressed that his party agreed with the Bill in principal and added that the regulations were necessary to improve the offshore banking sector. He also mentioned that there was a part of the Bill which speaks to special taxation provisions; this was highlighted in the physical bill but was not explained in funds and funding projects on the island, this act now gives offshore banks the opportunity to participate in funding projects on the island, in a regulatory environment”. Prime Minister Browne noted that the FSRC consulted widely with their partners who understand that if the jurisdiction remains as a tax haven as it is perceived, it will also mean “bad business for them”, since they too will experience problems in getting corresponding banking relations and without these relationships ‘then clearly you won’t have a bank”. He explained too, that through consultations to banks have agreed to the provisions, since they will evidently increase their businesses. He added that this all forms of the government’s plans and goals to become fully compliant with international standards. the explanatory memorandum. The Leader of the Opposition also stated that the Bill seeks to address several fundamental issues in the banking sector, which should be adequately revised and researched. “There ought not to be a mega rush on a Bill like this. We should get the opportunity to examine it properly”, Spencer reiterated. Members of the government side including Prime Minister Browne, Sir Robin Yearwood, the Hon. Steadroy ‘Cutie’ Benjamin, the Hon. E.P. ‘Chet’ Greene, the Hon. Molwyn Joseph, and the Hon. Asot Michael, at various times during the opposition’s stance, visibly expressed their dissatisfaction with Spencer’s explanation of calling for more time. Prime Minister Browne mentioned that in his view the opposition has had “more than enough time to review the Bill, given the early adjournment of Parliament last Tuesday”. Nonetheless, Speaker of the House, Sir Gerald Watt, fairly accessed the situation by agreeing that the Bill “is indeed a large one”, and that a number of persons on the government side were absent from the House. Sir Gerald expressed the view that such an important Bill should have the input of all members of the House. The Speaker of the House, however, left the final decision in the hands of Prime Minister Browne and his colleagues on the government side. After discussions, they collectively agreed to give more time for persons to review the International Banking Bill 2016. The meeting of the House of Representatives was subsequently adjourned until the morning of Tuesday, 29 th March, at 9:30. The Opposition Leader will speak first on that day, continuing from where he stopped during Tuesday’s sitting.
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Caribbean Times 75th issue - Wednesday 23rd March 2016

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