Dear Editor,

I am deeply concerned about a misleading and grossly inaccurate article carried in the UK’s Guardian newspaper on 12 July under the byline of one Oliver Bullough which is obviously calculated to damage the reputation of Nevis as a reputable and well-regulated international financial centre.

Contrary to the false and misleading allegations made by Bullough in The Guardian article, Nevis and indeed the Federation of St. Kitts and Nevis, has been consistently reviewed by the leading international regulatory agencies and has recently been graded as Largely Compliant by the OECD. This grading clearly demonstrates the country's continuing commitment to meeting high standards of regulatory compliance in all its operations. Both the OECD and the FATF have assessed the jurisdiction’s compliance status as being largely in line with international requirements as to disclosure and maintenance of adequate records that would identify beneficial owners by competent authorities making the appropriate enquiries.  

While the important right to privacy continues to be pejoratively interpreted by certain elements of the media as being deliberately secretive, the truth is that there are adequate measures for disclosing the identity of beneficial owners of companies registered in Nevis and such information can be disclosed in circumstances where legitimate enquiries are being made by the relevant authorities of jurisdictions that are parties to the several information exchange treaties and agreements to which the Federation of St. Kitts and Nevis is a party. Disclosure of information is permitted for the purpose of pursuing allegations of wrongdoing by the competent authorities under enabling legislation. Disclosure of information is also entirely permissible through Court proceedings to compel disclosure where a right to disclosure arises.

The Financial Services Regulatory Commission confirms that under the laws of Nevis there exist “various mechanisms in place for sharing information with treaty, law enforcement and regulatory counterparts and several provisions in our legislation exist to sanction any entity incorporated in Nevis which is proven by local or foreign law enforcement to be involved in criminal or illicit activity.” Information held on a Nevis entity by the Nevis Regulator or by any licensed service provider in Nevis may not be disseminated to any person not legitimately connected to that entity except in the context of wrongdoing being asserted by competent local or foreign authorities or pursuant to Court order. Mr. Bullough is not a competent or foreign regulatory authority as defined in the treaties or any relevant legislation in force in Nevis. He could not therefore sensibly expect to simply pop up in Nevis and demand information to which he is not entitled.

Nevis is a well-managed and properly-regulated jurisdiction. As part of the Federation of St. Kitts and Nevis, the island has seen the continual update of its legislative and regulatory framework to ensure its compliance with international standards. Such legislative updates include but are not limited to the various tax and information exchange arrangements with foreign countries, mutual legal assistance in criminal matters with foreign countries, FATCA obligations with the United States of America, Common Reporting Standards, and joining the OECD's BEPS (base erosion and profit shifting) initiative approved by the G20.

Nevis is a small island and no doubt perceived by powerful international media outlets as an easy target for highly defamatory and misleading allegations. I condemn this irresponsible approach to journalism and the very real harm it can cause to the reputation and economy of the island of Nevis. Nevis will continue to ensure that it is a well-managed and properly-regulated international financial centre and shall continue to comply with all international regulatory standards.

Premier and Minister of Finance of Nevis the Honourable Mark Brantley

Dear Editor,

Most people took a big sigh of relief when the first tropical storm threat took a turn away from St. Maarten. It’s a fact of life, we live in the hurricane belt. It’s a fact of life, we cannot move our island up or down out of harm’s way, during the hurricane season. It is therefore incumbent upon all of us, including Parliament, Government, private sector and individual citizens to continue to do all possible to mitigate the effects of another hurricane hit.

After a hopeful start, our ship of state regrettably is clearly off-course. A state of affairs made worse by the effects of Hurricane Irma. There is a clear lack of decisive leadership which must focus on the people’s business instead of political grandstanding. There simply is no place or time for personal agendas.

If we fail to plan, we are planning to fail.

After many months of waiting, a new government is finally appointed, supported by the slimmest of majority in Parliament.

One would believe that the state of affairs of our country, which is a very slow and ad-hoc recovery and clean-up process, would encourage our elected representatives to take a closer look at the people’s agenda, and subsequently outline its priorities right after taking their oath of office and act accordingly in solidarity with the citizens of our island.

Instead, our Parliament decides to go on its usual recess, with vacation pay.

Parliament is elected for a four -year term. It just is not right! While many workers had to resort to take their employers to court for alleged unlawful dismissals, pay cuts etc.

To be clear, we are aware that Parliament can always be called back to deal with matters of emergency facing our Nation. But, isn’t that the present case less than one year following Hurricane Irma? Until matters normalize somewhat for hundreds of individual households, families, and small businesses, until we have a more efficient public sector and a more robust growing private sector, shouldn’t the law-abiding hard-working families and tax-paying businesses expect more active leadership from our Parliament?

Many of the issues Sint Maarten faced prior to 10-10-10 still make headlines today. Un-balanced budgets, lack of adequate financial and other critically needed personnel, lack of timely financial statements submitted to our own General Audit Chamber. Post-Hurricane Irma, more pressing issues are added to the list of unfinished business, including adequate social housing, introduction of universal healthcare system, establishing a functioning consumer-protection agency, introduction of an unemployment benefit regulation.

Once again the people’s agenda must include a plan to establish an island-wide, district-by-district, street, road, alley, hilltop clean-up and building repainting program. Presenting a lasting solution to eliminate the garbage dump in the heart of Philipsburg remains at the center of this clean-up process.

While the proverbial “s**t hits the fan,” reportedly, some government departments have no funds to literally buy toilet paper for its staff, many other departments lack basic working materials, Parliament is out wandering, instead of keeping government on its toes. This is no laughing matter.

Regression or even a standstill in our slow reconstruction process is not the way forward. The release of the 55 million reconstruction funds from the Netherlands is welcome news. This requires pro-active thinking followed by effective implementation of policies and programs by both Parliament and Government.

St. Maarten has been good, very good to many people from all walks of life. Some have packed up and left disappointed, disillusioned. Many stayed yet hoping for a better tomorrow. Others remain taking Sint Maarten for granted, not paying or putting in their fair share in the clean-up and rebuilding process. It just is not right.

I am convinced Sint Maarten will be better, stronger, smarter, cleaner, if we all do our part.

Gracita Arrindell

Leader, People’s Progressive Alliance (PPA)

Dear Editor,

What a brilliant and commendable move by SCDF’s President Alston Lourens, to include the public in their planning of next year’s Jubilee celebration! The gesture reflects not just maturity, but the vision to rekindle that spirit of cooperation. This giant step to bridge the gap between the public and an organization that seemed entirely private, will definitely yield a dynamic production.

To begin: the unwillingness of schools to participate in this cultural manifestation can be remedied if the committee pursues the matter from a different angle. Why not invest a portion of its promotional monies into the junior parade? In other words, offer financial support to these troupe leaders, so they can enhance the children’s parade by adding more sections; thus improving their creativity and extending the length of the parade.

Some serious consideration should be given to reducing the type of lyrical content that promotes sexual behaviours, but especially during the children’s parade and activities that are designed for them. In this period, SCDF should ensure that musicians adhere to the criteria and maintain that high level of decency, throughout the duration of the festivity.

It would be a joy if part of the criteria for street jump-ups, including j’ouvert, consists of strictly local music; with a strong emphasis on road marches and popular tunes from yester-years. And that next year’s road march will be one that captivates the population’s attention.

Encourage the revival of bands like Rolling Tones and Impack that usually wow the crowd with the sweet pulsing sounds of their instruments, but especially the brass section. There has been a lack of variety in bands over the years. Even these seasoned musicians are complaining that the younger ones are not playing the instruments and there is no significant purpose behind their production.

Compile interviews on how carnival started and sell the DVDs or MP3s, to locals and tourists, as a means of generating income for the following year. This initiative can be an advertising tool, to decrease the burden of depending on government. In the same breath, put together a documentary on the queens and kings. The information can be used as a source of reference for discussions and further developments.

Set up a museum-styled area upstairs in The Village to host photographs of all the kings, queens, troupe leaders, bands, booth holders and SCDF’s presidents. A small entrance fee can be charged for locals during the heat of carnival. Children can do school projects for Black History Month and beyond. Perhaps magazines can be printed as well. Here is where The Village must be returned to the people, so that the committee can use this venue as an added attraction for tourists, to generate more advertising monies for carnival.

Adorn the Pondfill Road and Soualiga Boulevard with lighted posters of all the carnival kings and queens. What pleasure it would be to see a section of the adult parade designated for all the string bands from both sides of the island. Booth holders should receive 50 per cent discount for playing such a significant role over the years. Please, no cars in the parade. It just breaks the momentum of the cultural activity.

Create a platform to interview children and adults of various ages and backgrounds, to get their feelings on how they see carnival and use the material as a measuring tool to improve on this cultural manifestation.

A personal invitation and an award to the cultural troupe from Guadeloupe is a must. It’s such an admiration to listen to the sounds of the drums and watch their spirits collide to create that indescribable harmony.

It’s the people’s occasion to benefit from the biggest cultural activity; therefore, next year’s carnival should be strictly local, a festivity bursting with home-grown creativity.

Joslyn Morton

Dear Editor,

If an airport in the Caribbean wishes to be an international hub, or even a regional hub, it is probably well advised to drop departure taxes and other passenger taxes. Passenger taxation is “swamp taxation” because no one besides the receiver wants it, and it sucks.

“Dutch Government ditches passenger ticket tax in efforts to halt declining traffic at Amsterdam International Airport,” the media reported in 2009. It was first camouflaged by the name “eco”-tax. The controversial departure tax ranging from 11 to 45 euros was blamed for a steep decline in passenger traffic within a year after its introduction. The tax was expected to raise around US $395 million a year but a commissioned report concluded that it would cost the Dutch economy US $1.7 billion in lost revenue. Passengers were driving across the border to neighboring airports in Belgium or Germany to avoid the tax.

Could that dynamic happen in the Caribbean? Sure! Passengers will opt for a different island hub or destination that doesn’t have the taxes, but does have the sun, the beaches and the palm trees, plus the new discovery may even have more to offer. competition in doubled degree.

A 2017 report of PwC (PricewaterhouseCoopers) commissioned by “Airlines for Europe” provided an independent overview of the current air passenger taxes in Europe and an assessment of their economic impact. PwC simulated the impact of abolishing the tax entirely in January 2018 in Germany. Some of the results of the study: 24.6 million additional arrivals by 2020; 10.5 million extra inbound tourist arrivals by 2020; US $1.8 billion additional expenditure by 2020. It was estimated that the total existing passenger taxes will raise US $1.2 billion in a year, however after the abolition of all taxes 108 per cent of this will be recouped in indirect tax income anyway. The abolition of the air passenger tax would boost the country’s GDP by US $79 billion cumulatively over the next 12 years.

ICAO is the International Civil Aviation Organization. a specialized agency of the United Nations. It codifies the principles and techniques of international air navigation and fosters the planning and development of international air transport to ensure safe and orderly growth. ICAO is distinct from other international air transport organizations, like the International Air Transport Association (IATA), a trade association representing airlines.

ICAO has clear policies on taxation and member states are urged to apply ICAO policies on taxation in regulatory practices. ICAO Assembly Resolutions have repeatedly urged Member States to follow the ICAO policies on taxation and not to impose taxes on the sale or use of international air transport. Yet, Member States have not included in their ASA’s (Article on Taxation) a commitment to reduce or eliminate taxes on the sale and use of international air transport.

Caribbean member states of ICAO are the sovereign countries Antigua and Barbuda, Bahamas, Barbados, Cuba, Dominican Republic, Grenada, Haiti, Jamaica, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Trinidad and Tobago.

Already, in 2013, at their Worldwide Transport Conference, the ICAO issued the following text to be included in their Template Article on Taxation (TASA) :

“… Each party shall undertake to reduce to the fullest practicable extent and make plans to eliminate as soon as its economic conditions permit all forms of taxation on the sale or use of international air transport, including such taxes for services which are not required for international civil aviation or which may discriminate against it.”

According to ICAO, a tax is a levy that is designed to raise national or local government revenues, which are generally not applied to civil aviation in their entirety or on a cost specific basis. ICAO has also recognized that in the past decades there is a development of tourism taxes in some regions, in particular Latin America, the Caribbean and to a lesser extent in Africa, up to US $55. In many cases, revenues from the tourism taxes such as Tourism Enhancement Fee and Travel Promotional levies are not being reinvested in tourism development. The Caribbean may get the reputation of being one of the bad guys on the block in that regard.

The main principles on taxation contained in ICAO policies are frequently adopted by international organizations in policy documents. Some regional organizations and industry associations, such as the Airports Council International (ACI) and the International Air Transport Association (IATA), have also developed policies that are opposed to discriminatory and unfair government taxation on air transport. The World Tourism Organization (UNWTO), while not opposed to taxes per se, as part of the overall fiscal responsibility of States, considers that travel taxes should be scrutinized objectively to avoid excessive burdens on travelers/companies with a view to reducing taxes that have a negative impact on travel and, hence, on tourism development.

Despite these policies, the past decade has seen an unprecedented proliferation of taxes levied on air passenger tickets in the region. This trend is causing serious concerns and has a negative impact on the sustainable development of air transport, which, ultimately, negatively impacts the tourism industry and the overall national economic development.

Caribbean governments are well advised that before making a decision, an independent evaluation by qualified professionals acquainted with economics should be made on the impact of passenger taxation. A “neat” idea to get some extra money in the coffers, may turn out to be a monkeynomics. What plays a crucial role and contributes significantly to an economy must not hindered by ineffective government taxation.

Commander Bud Slabbaert