2004 State of the Territory Address
Address by Chief Minister Dr. The Honourable D.
Orlando Smith, OBE
STATE OF THE TERRITORY ADDRESS
Central Administration Complex
Thursday, 1 July 2004
5:30pm
LAYING THE FOUNDATION FOR A BRIGHTER TOMORROW
Madam Chairperson
His Excellency the Governor
Members of the Judiciary
The Speaker
Honourable Members on the platform
Leader of the Opposition
Thank you Ladies and Gentlemen and I would like to thank Mr. Bevin George
for those kind words of introduction. Young man you have a great future as
a public speaker.
Ladies and Gentlemen on the night of the election – just over one year
ago – after the votes had been counted and the people’s decision had
been announced – a group of friends and family joined us at home to
celebrate and give thanks.
It was late at night and the first light of sunrise was just starting to
be seen across Road Harbour. I remember as we gathered together and began
to turn our thoughts to the coming day and to the coming 4 years, we all
offered up a prayer. We prayed that the Lord would give us the wisdom to
make the right choices for our beloved Territory. We prayed for the
patience to endure the many challenges we knew lay ahead and above all, we
prayed for the strength to make a change.
Ladies and gentlemen, when this Government was elected by you to lead our
Territory we made a solemn pledge to bring change. With the stroke of a
pen on the 16th of June 2003, the people of the BVI made a statement: the
old ways of doing things needed to end. A new day of reform and rebuilding
must begin and for the past 12 months, therefore, my Government has
devoted itself to the hard work of delivering on this promise.
Let me speak plainly: the work of change is never easy. Be it for men or
nations––few things are as difficult to accomplish as breaking old
habits. But we were not elected to take the easy path. We were elected to
do the right thing for our Territory’s future; even when it was hard;
even when it ran counter to tradition and even when it was not necessarily
popular at the moment.
We have worked hard and we have called all who serve the public to match
our efforts. Our dedicated Civil Servants, especially, have been called to
rise to the challenge. Everyday we value their great contributions. We
have invested in them and expect them to continue to surpass expectations
and set for themselves ever-higher standards for serving our people. We
have struggled against limitations and have recognized that only by doing
and trying the untried, can we possibly learn and grow stronger.
We all know that true change is not an event – it is a process. It takes
time and perseverance. But it is absolutely necessary and that is why we
have stayed the course and why we will continue to lead with resolve and
conviction. We have been guided by the common sense wisdom of the ages:
That for a structure to stand the test of time it must begin with a strong
foundation. That is a truth as old as mankind and a valuable lesson to us
all.
This past year has been about laying the foundation for a brighter
tomorrow. We have focused on the fundamental components of our national
strength––providing opportunity, caring for our families, building
bridges to the world and empowering our people. It is thanks to this basic
commitment that I am able to stand here before you the people of this
Territory to report that our economy is growing, the BVI is moving forward
and the State of the Territory is strong.
This process of building a solid foundation for the future began first and
foremost with the task of putting our country’s financial house in
order. When we were elected to office, our Territory’s finances were a
cause for concern. Projects had been commenced with no resources to fund
them. Promises had been made without the money to make good. Debts had
been incurred without a clear plan to pay them off and our national
reserves had been depleted. This fiscal mess required a thorough
investigation. We have conducted a top to bottom audit of the
Government’s books to ensure that the mistakes of the past would be
better understood and then never repeated.
The audit is nearly complete. From preliminary reports it appears that
serious systemic flaws did exist––inaccurate bookkeeping; lack of
uniform procedures and insufficient communication. All these problems
created a framework that invited waste and mismanagement of the people’s
money. We look forward to the final report, which should be ready within
the next 8 weeks. When the audit is completed we will release it to the
public. After all, it is your money and it is your right to know how it is
used.
In order to set the ship right it took a team effort. Under the tireless
guidance of our Minister of Finance, we set ourselves to the task of
balancing the books. It was with great pleasure and pride that this past
January we proposed and passed a new budget with the full support of the
Legislative Council that set our finances straight; set the stage for a
return to economic growth and set the path toward responsible governance.
Gone from this budget were the wasteful projects of the past. Instead,
this budget focused on providing funding to our schools, directing
resources to our healthcare and making strategic investments to empower
our people and grow our economy. We were particularly proud of passing new
legislation clearly defining the budget reserve and ensuring that in the
future, Governments of the BVI will have a clear framework for putting
money aside for the unexpected needs. That’s why a reserve exists and
that is why the reserve must be protected.
This budget was a reflection of the people’s priorities. We were able to
do this because we listened to the people, first. During the weeks and
months that we developed the budget blueprint, we did not simply remain in
our offices. We did not take counsel just with our colleagues in
Government. Instead, we went out to consult with our true bosses, the
people of the BVI. We held town meetings and private conversations. We
went to offices and community centres; we talked to people on the ferry
terminals and at the taxi stands. We asked for honest opinions and we were
rewarded with sage advice and in the end, thanks to this commitment to
listen first, we were able to create a budget that put the true needs of
the people first.
In this endeavour we appreciated the support and assistance of all Members
of Government from both sides of the aisle. This shared commitment to the
common good helped set the stage for this important achievement and it
must continue to guide our actions going forward. Thanks to this process
and this unity of purpose, we are now beginning to see the fruits of our
labour. Our Territory’s economy hard-hit by the impact of 9/11 and the
global slowdown – is back on track. Tourism arrivals are up! The demand
for labour is strong and the financial services sector continues to grow.
Already in 2004, over 130 trade licenses have been issued, as new
enterprises look to set up shop here in the BVI.
This economic growth is the spark that is allowing us to meet our most
pressing national priorities. Nowhere is this more evident than in the
important strides we have taken toward meeting the immediate needs of our
people for improved healthcare. That begins first and foremost with the
progress that has been made toward the great task of completing the new
hospital. The Peebles Hospital Expansion Project is now well into its
second phase. We have revised the ground-floor layout to accommodate a
casualty unit, a diagnostic laboratory, a new pharmacy and a dialysis
unit. The completion of the Annex will go a long way toward providing
adequate space and badly needed beds. The people have called us to provide
healthcare that meets the highest standards of the world. We will not rest
and will not retreat until we deliver on this pledge. Let me state
clearly: this Government will deliver to the people of the BVI their new
80-bed hospital.
The accomplishments in healthcare are not just about building new
facilities; it is also about putting in place the people and systems to
deliver the highest quality care. So we have also moved forward to make
sure that the people of our Territory are being served by healthcare
professionals with the authority and expertise to make the system work.
For the first time in the history of the BVI, we are establishing a Health
Services Management Authority. This new team will provide oversight and
set strategic direction for our Territory’s entire healthcare system
from the Hospital in Road Town to the clinics on all the sister islands.
No longer will we expend resources in a haphazard fashion with little
connection between the people and their real needs. The Health Services
Management Authority will look at the entire Territory and ask fundamental
questions: Where is there a family who isn’t being well served? Where is
there a village that needs help? Where is there a clinic that doesn’t
have the tools to provide care? And when a need is identified then
corrective action will be taken. The result will be efficiency,
accountability and better healthcare for all our people.
As we put in place the structures and personnel to meet the healthcare
needs of our people today, we are also planning for the future to help
counter the health threats of tomorrow. Nowhere is this more evident than
in our recent appointment of a National AIDS Programme Coordinator. For
far too long, this terrible threat to the public health has been ignored
or mishandled. We will not stand by when our people are at risk. AIDS is
no less a threat to our national security than terrorism is to world peace
and so the National AIDS Programme Coordinator will be our General who
will lead our war against this dreadful disease. As we move forward on our
commitment to improving healthcare for our families, we are also taking
concrete steps toward answering the developmental needs of our children
and young people.
It was with great pride that I attended the launch this past May of the
new Youth Affairs and Sports Department. This important step forward
demonstrated with clarity the absolute commitment of this government to
fighting for our young people’s future. For too long, we have provided
our children with educations, but have failed to provide them life
guidance. The establishment of the Youth Affairs and Sports Department
recognizes that our responsibility to our young people does not end when
the school bell rings. Because youth development is not just about
teaching skills and providing knowledge – it is about showing each and
every young person the incredible potential that is every individual’s
gift from their creator. It is about nurturing talent and building
confidence. It is about strengthening mind, body and soul. It is about
building a bridge to a future that is full of hope and possibility.
As part of this commitment, it is with great pride that for the first time
the BVI is hosting a basketball camp for our young people with some of the
brightest stars of the NBA. We look forward to the exhibition game
tomorrow that will showcase the potential of our young people and the
positive impact this kind of innovative programme can have on the entire
community. The stars of the NBA are working with our young people on
basketball. But the lessons they teach go well beyond the court. Because
success in life – whether it is in sports or in medicine, in public
service or in business – always has a common theme – hard work,
discipline and faith in your own ability. Those are the valuable lessons
that we must impart to all our young people and we are going to fight to
make sure every young person in the BVI is learning these lessons each and
every day.
As we provide exciting new opportunities for young people outside the
classroom, we do not forget that the schoolhouse must still be at the
heart of our young people’s experience. Our children will have the
benefit of a world-class education. That is a promise we made and it is a
promise that we are keeping. Toward that end we are pushing ahead with the
National Curriculum project. We are reviewing the entire scope of what our
children learn from the day they enter kindergarten to the day they
graduate high school.
The world is changing with tremendous speed. So we must constantly review
what our children are learning to make sure they are getting the skills
and knowledge they will need to compete in the global marketplace. The
National Curriculum project brings together the best experts in education
from our Territory, supported by leading education professionals from
around the world. Together, this team is in the process of developing a
comprehensive curriculum. When their work is complete it will ensure that
each and every child in our school system will be the recipient of an
education that answers the needs of the 21st century.
As we revolutionize the content we are teaching in the classroom, we are
also moving forward with the work of improving and expanding our schools.
We are renovating and improving our existing school buildings at all
levels and in all parts of the Territory. We are moving forward with the
new high school. Plans are being drafted and finalized and we are
committed to breaking ground within the next 18 months. As we think about
our children’s futures and invest in the education and support they
need, we are also focused on building an economy that will provide for
their parents today and offer opportunities for them in the future.
After several years of moderate growth at best, it now appears that the
global economy is finally on the rebound. In the United States and Europe,
in the Asian Pacific and South America the recession of the past few years
is slowly giving way to a new spirit of optimism and expansion.
This Government is working hard to ensure that the people of the BVI are
well positioned to make the most of the opportunities that this global
upturn will bring. In our first national budget we delivered meaningful
tax relief to our people. Today, the first $7,500 of your income is
tax-free. That means you keep more of the money you earn. And that money
can be circulated back into the economy, increasing consumption and
helping businesses expand and increasing employment. The Honourable H.
Lavity Stoutt was fond of saying that when we improve the economic
standing of our people, then they will develop the Territory. This tax cut
puts that belief to work and the benefit will be felt by families
throughout the BVI.
We have also proposed and will soon pass a new Housing initiative that
will establish a 5.5 million dollar fund to provide affordable,
low-interest loans to help couples earning less than one hundred-thousand
dollars a year; or singles earning less than $50,000 a year to buy their
own home. These loans put home ownership in reach for more of our people
and help young families get started in life.
As we take steps to help our families meet their daily needs, we are also
focused on the framework of our economic strength. And that begins with
improving our tourism product and ensuring its sustainability for the
long-term.
We have taken critical steps forward. Important expansions at the Terrance
B. Lettsome Airport have been completed on time and on budget. The
extended runway, improved ground lighting, a new air traffic control tower
and a landscaping and beautification effort, all these projects, begun
under the leadership of the previous Government ––today enable us to
accommodate larger aircraft and warmly welcome ever more visitors to our
shores.
We have moved forward with important projects to make the BVI experience
ever more enjoyable. The Brandywine Bay Beach is now open providing an
additional public space that can be enjoyed by resident and visitor,
alike. As we create the physical capacity, we are also resolved to make
sure that the experience of visiting the BVI is an unblemished pleasure.
Tourism has been a pillar of our economy for decades. The natural
friendliness and hospitality of BVIslanders has always assured our
success. But in an ever more competitive tourism market we must make sure
that we are constantly improving ourselves. We cannot afford to allow any
part of our tourism product to fall below our highest expectations.
The waters of the BVI are as beautiful as any in the world; the beaches of
the BVI are as pristine as any in the world, and the people of the BVI are
as welcoming as any in the world. But to translate this abundance of gifts
into a strong and sustainable tourism product we must ensure that our
service and hospitality are as professional as any in the world. That is
why, for the first time in the history of the BVI, this government has
launched a National Standards Project.
Under the leadership of the Tourist Board, this ambitious initiative will
establish a clear and commonly understood set of standards to make sure
that from the moment a visitor lands at our airport or ferry docks until
the moment they leave our shores, every part of their experience is
enjoyable and every encounter they have with our service providers is
pleasant. We will work closely with all those who make our tourism
industry thrive from our ferry workers and taxi drivers, to our hotel
owners and restaurant chefs, from our customs agents to our pleasure boat
operators––all will be supported with the tools and training to
provide the best service possible. We will conduct seminars and workshops
to make sure that the BVI maintains its position at the high-end of the
world tourism market.
As part of this commitment to maintaining the BVI’s position as a
top-drawer destination, we are working to bring a 5-star resort to the
BVI. We have consulted with the leaders of our tourism industry and we are
now engaged in high-level talks with a developer. We expect a decision on
this within the next three months. We are also seeing interest expressed
by international developers in a number of different projects throughout
the Territory. This renewed interest confirms what we here already know:
the BVI tourism product is strong and getting stronger.
As we press ahead with important large-scale development projects, we are
also making strategic investments in locally owned businesses. Executive
Council has recently passed a duty-exemption on new vehicles for our taxi
drivers. Our drivers should not have to struggle under the burden of a tax
on the very product that is at the heart of their business. This past
month we launched the BVI Tourist Accommodation Properties Association
bringing together 33 local property owners from across the Territory. The
Association will pool their expertise, experience, talent and resources to
promote the small properties sub-sector. This Government is committed to
working with these local owners to provide development funds and other
support. We must make sure that as the tide of tourism continues to rise,
all our people are lifted up.
As we continue to work hard to build our country up, we are also committed
to doing all in our power to keep our people safe. Recent months have seen
too many crimes on our streets. This Government is absolutely committed to
fighting crime and eradicating it. Violence has no place on our peaceful
islands. We commend our Law Enforcement officials who are working hard to
maintain public order and public safety. In the war on crime, they are on
the front line. They must and they do have our complete support. At the
same time we recognize that crime is not itself a disease, but a symptom
of deeper ills. We call on the Police to work with communities to
establish relationships and partnerships. We are pleased to see that this
work that this work has begun but there is still much more to do. For the
police to serve the public they must earn the trust of the public. Because
in the end to wipe out crime, we must attack its true causes. Let us be
clear: fighting crime does not end in the streets.
This Government pledged from day one to be a Government in the sunshine.
The misdeeds and broken trust of the past will have no place in this
administration. Toward that end we have brought before Legislative Council
the Integrity in Public Life Act; a comprehensive law that will set the
highest standards or ethical conduct for all our public servants, elected
and appointed.
Our commitment to being a law-abiding Territory must also apply to those
who do business here. Toward that end, this Government inaugurated the new
Financial Investigation Agency. This new law enforcement body is charged
with making sure that money laundering and other financial crimes are
detected, investigated and prosecuted.
This commitment is not just about upholding the law; it is also about
protecting and supporting the long-term health of the second economic
pillar of our economy: financial services. Our reputation for being a
clean and lawful jurisdiction is at the heart of our success. And that
success is bolstered as we reach out to build strong partnerships around
the world.
The London Office is up and running and is headed up for the first time by
a BVIslander. Already, regular meetings are being held with Members of
Parliament ensuring that for the first time the true interests of our
Territory are part of the decision making process. Cultural exchanges are
being launched, including a recent exhibit in the BVI house in London.
This exhibit showcased our local artists and demonstrated our
Territory’s great talent.
Already we are reaping the benefits of this commitment to a strong
international presence. Just this past month we were able to successfully
complete negotiations with the Government of the UK to protect the
interests of the BVI economy under the new EU Savings Directive. This
success was made possible through hard work and diligent preparation,
including close consultation with the private sector. We stood up strongly
for our Territory’s interests and we made it clear that the BVI will not
be ignored, nor will we stand silent if decisions that impact our lives
are taken without our participation.
As a result of our talks, I am pleased to announce that my Government was
able to negotiate a comprehensive package of compensatory benefits with
the Foreign and Commonwealth Office. We are confident that the specific
issues surrounding the EU Savings Directive are being addressed, and more
importantly, that a new framework for consultation and cooperation has
been established with the UK.
This past year has been a time of dynamic growth and change for the
Financial Services industry. The BVI is stepping boldly onto the world
financial stage. Recognizing that already up to forty percent of the
business conducted in the BVI comes from Asia; we have made a decision to
establish a permanent presence in that critical part of the world. We have
begun exploring issues including staffing, costs and potential locations.
We expect to have an operation up and running by early next year. As we
continue to build bridgeheads around the world and we are also taking the
BVI product on the road.
We have staged marketing road shows in the finance capitals of the world:
New York, London, Singapore and Hong Kong. And at each stop, there was
every indication that the BVI is one of the most highly regarded and
attractive jurisdictions. Around the world our delegation was greeted by
leaders of the financial services community. Men and women who work at the
highest levels in some of the largest corporations in the world took time
out of their busy schedules to meet with us because they recognize the
advantages our Territory offers and they are interested in doing business
in the BVI.
I had the opportunity to attend these road shows and my only regret is
that I couldn’t bring more people from the BVI to witness these events.
Every BVIslander and resident should feel tremendous pride at the big
reception given to our little Territory. To see our Finance Minister, our
head of the Financial Services Commission and the International Finance
Center, our businessmen and women holding court with captains of industry
from around the globe, it reinforced the great strides this Territory has
made in the past several years, and the incredible promise of what we can
yet accomplish. A critical part of realizing this promise is by making
sure that we spare no effort to continue bringing more local people into
the Financial Services Sector.
Over this past year, a team of local leaders including representatives
from Government, as well as the business community, completed a Strategic
Development Plan for the industry. The Development Plan has been adopted
by government and is already being put into place. The Plan calls for
increased resources for education and training for our people to make sure
that they have the skills and knowledge needed to compete in this fast
changing marketplace.
It puts in place mechanisms to ensure that companies doing business in our
Territory are given every advantage to succeed, but at the same time also
holds them accountable to acting as faithful corporate citizens. It puts
in place the framework to guarantee that the leadership of the government
and the business community will continue to work together to keep this
industry strong well into the future.
As we work to better integrate the BVI and our people into the global
business community of the 21st century, we have not forgotten our
commitment to our most fundamental and traditional industries. Executive
Council has approved the establishment of a new Small Business Bureau.
This important initiative will be a one-stop shop for the entrepreneurs of
the Territory that have an idea for an enterprise. At the Bureau they will
receive everything from assistance with developing a business plan to
training for their managers and service providers. The Small Business
Bureau will stand by our local businessmen and help them guide their
projects through the most challenging first years.
As we build up new businesses, we are continuing to support our oldest
trades, including fishing and farming. We have completed the construction
of the Fishermen Ramps in Carrot Bay and Beef Island. The new ramps will
help our fishermen bring their boats in for repair. We have signed a
contract to build a state-of-the-art Veterinary Laboratory at Paraquita
Bay that will help farmers protect their livestock and help the healthcare
services eliminate the risk of human infection from animals. Most
recently, we have signed a landmark agreement with the State of Maryland
that will create partnerships for exchanging expertise in agriculture.
As we move forward on all these fronts, we are also working diligently to
make sure that our Territory’s physical infrastructure is strong enough
to meet the needs of our fast changing economy. Toward that end we are
making a major investment in building up and improving our Capital.
Parking lots have been paved to reduce dust and dirt, roads are being
improved both here and throughout the Territory, and plans are in place
for the establishment of a Town Council that will serve to further develop
the business district, spur further development and encourage the
beautification of Road Town.
We are also in the process of delivering on our promise of improved
telecommunications services. We are pleased with the investments that have
been made to expand access to the latest communications services. We will
soon be launching a comprehensive plan for restructuring our
telecommunications market to encourage greater competition, better service
and lower prices. Ladies and Gentlemen, taken together, these
accomplishments in healthcare and youth development, the international
economy and local industry, all have been designed to create the necessary
conditions for future success.
I realize that there are those who yearn for quicker results. For better
or for worse we live in a world of instant gratification. Once it was
understood that no great deed is accomplished overnight. But today there
is a common tendency to value speed above quality.
We understand this desire and we share your desire to move forward as
quickly as possible. Let me state clearly as Chief Minister, I take full
responsibility for producing results. As Chief Minister I will do whatever
it takes to deliver on our obligations to the people of the BVI. But as we
remain committed to working with speed and efficiency, let it also be
clear that we will do not just what is popular; not just what feels good;
not just what will win us easy praise and short-lived glory but what will
provide real value and true benefits to our people for the long-term.
As the prophet Jeremiah tells us, “Summer is over, harvest is passed,
and we are not saved.” Ladies and gentlemen, salvation does not come in
a season. It does not arrive in a moment. Salvation requires commitment
and discipline. It requires a steady hand and strong faith. That has been
the path of this Government from Day One and it will continue to guide us
moving forward. And in the end, we have no doubt that the results will be
seen and will be felt and will touch every family and every resident of
these islands.
When the new hospital is completed, and it shall be, then every member of
our community will be better off. When the 5-star hotel is built, and it
shall be, every part of our tourism sector will be strengthened. When the
new high school is built, and it shall be, every young person will be
better served. When our government’s finances are put in order and kept
in order, and they shall be, then future generations of our countrymen
will have cause to celebrate because we will be leaving to them a healthy
foundation for future prosperity. When we empower our people by giving
them new opportunities to realize their fullest potential, then our BVI
will thrive.
Ladies and gentlemen, great accomplishments demand great commitment.
We are well on the way. We have laid the foundation and now we look ahead
with optimism to seeing a powerful edifice arise. I call on all
BVIslanders and residents to join together and unite behind this great
cause. We have a future to secure and a brighter day to usher forth.
Together, I have no doubt we shall see the morning’s light. God bless
you all and may God continue to bless our British Virgin Islands.
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