2005 New Year's Day Address
Statement by Chief Minister Dr. the Honourable D.
Orlando Smith
Territorial New Year’s Address
1 January 2005
A Year of Reform, A Future of Opportunity
My fellow British Virgin Islanders, residents and visitors:
On behalf of my Government, I take pleasure in wishing all of you a Happy
New Year.
As we come together as a community to celebrate the end of one year and
the start of a new year of hope and possibility, I take great pride in
coming before you the people of the BVI to review our accomplishments and
to look ahead to the challenges and opportunities we will face together in
2005.
Before I reflect on 2004, let me say how saddened I am at the devastation
and deaths in several countries following the recent Tsunami in the Indian
Ocean. As a Government and a people, we sympathize with all those who
suffered loss of life and property, and we stand in solidarity with
regional initiatives aimed at restoration. Let us keep them in our
prayers.
Ladies and gentlemen, 2004 was indeed a year of reform.
Together, we have reformed some of the most daunting issues facing our
Territory: taxes, infrastructure development, education, healthcare,
immigration, the face of Road Town and our economy.
My Government pledged to lead the BVI with conviction and resolve. We
promised that we would not back away from the hardest challenges but would
face them squarely. And that we would always consult with the people of
this Territory and never forget that we work for you, that our budget
comes from your hard-earned tax dollars, and, that above all, the primary
role of Government is to provide opportunity for people.
We understand that the best answers for our future will not come from
Government Ministers or from Civil Servants––they will come from you,
the people of this Territory. Our economy will be lifted up by your
ingenuity and hard work; our society will be strengthened by your
dedication and commitment to the common good; and our Territory will
develop and grow through your desire for change.
That is the fundamental belief of this Government––that there are few
things we can provide the people that the people are not better equipped
to provide for themselves. And that is why we have focused our efforts on
creating a Government that listens and a Government that creates the
necessary conditions for your success. Ladies and gentlemen, that is what
our Opportunity Agenda is all about.
That is the standard we have tried to live up to every day––and that
is why 2004 has been a year of reform so that we can now look ahead to
2005 as a year of opportunity. And no area is more important for creating
opportunity and hope for our Territory than education.
The basic challenge of the 21st century is the need to develop skilled
individuals. The global marketplace offers enormous opportunities for
those who have the ability to take advantage of new developments in
science, technology, finance, medicine––virtually any field of human
endeavour. But in order to seize the unique opportunities of this moment,
our young people must have the skills and knowledge they need to compete
with their peers from around the world.
My Government has committed itself to providing our teachers with the
resources they need to provide our children the education they deserve. We
have dedicated a major portion of our 2005 budget toward improving
classrooms, purchasing new equipment, updating our textbooks and ensuring
training for our teachers.
Beyond this major investment, we have also dedicated the skills and
talents of some of our best and brightest to the task of improving
education. Over the past year the leaders of our education community have
been working tirelessly to modernize our Territory’s curriculum. Their
work is massive in scope––but the size of the task is matched by the
dedication of those who are involved. And I am pleased to report that
great progress has been made, and that over the course of the coming year
students will begin to see the revised curriculum making its way into
classrooms.
And our commitment to improving education goes beyond the classroom,
because as we all know education is not just about knowledge––it is
also about character. That is why the landmark establishment of our new
Department of Youth Affairs and Sports stands as one of my Government’s
major achievements of 2004.
Already, this new department is providing after-school programmes,
offering new opportunities in sports and creating initiatives that are
giving our young people structure, discipline, and above all, a sense of
leadership and responsibility. We expect even greater things from the
Department of Youth Affairs and Sports in 2005.
Ladies and gentlemen, as we improve education and provide new outlets for
development of our young people, we also understand that the foundation of
a good society is good health. No family can thrive if they live in fear
of sickness or disease. No business can succeed if its workers cannot get
adequate medical care. No child can learn if his or her health is not
protected.
That is why my Government has dedicated itself to improving our
Territory's healthcare services and strengthening the quality of care
throughout the BVI. Work is proceeding on the Peebles Hospital Expansion
Project, which is already increasing the availability of beds for
patients. We have acquired a new Multi-Purpose Vessel that will be
available to provide ambulance services to our community. We are also
sending badly needed equipment to our local clinics.
And beyond improving the healthcare infrastructure, we are also working to
improve the quality of service. Toward that end, my Government established
a Hospital Services Management Board that will be responsible for
overseeing the operations at Peebles Hospital and ensuring that citizens
and residents have access to the care they deserve. And as we continue to
improve our healthcare services our eyes remain firmly fixed on the
long-term goal of completing the new hospital.
But we recognize that accomplishing large-scale projects of this nature
must begin by growing our economy. In order to do great things, we will
need sufficient resources. And so we have focused from our first day on
the job on the task of putting our financial house in order and
strengthening every aspect of our economic base.
And that starts with tourism. Over this past year, thanks to the
leadership of the BVI Tourist Board, we have taken some critical steps
forward. We have begun to implement the Tourism Industry Service Standards
Programme, which is working with tourism service providers starting at the
Immigration Desk, through to the hotels and their staff to ensure that the
experience of visitors to our islands is an unblemished pleasure.
We are taking decisive action to protect our environment in order to meet
our obligation not just to the industry of today, but also the generations
of tomorrow for whom clean waters and beaches are their rightful legacy.
And we are making a strategic investment in expanding our marketing
efforts in North America, South America and Europe––because in today's
competitive marketplace we cannot afford to rest on past accomplishments.
The BVI tourism experience is the best in the world––it is our
commitment to ensure that our efforts to bring visitors here is equal to
this standard. And as we work to strengthen and protect our tourism base,
we are also working with energy and resolve to make our second
pillar––financial services––even more successful.
Over the past year the International Finance Centre has completed the
development of a Strategic Development Plan. This plan was created through
a unique partnership of government officials and private sector
businessmen and women. Through this partnership, a range of creative ideas
was generated all aimed at ensuring the long-term stability and growth of
this vital industry.
My Government has accepted the recommendations of this committee and we
are pleased to report that progress is already being made to implement
many of their proposals and we anticipate an even greater effort over the
coming twelve months.
But during this past year, the most pressing order of business for the
financial services sector was the need to bring our Territory's tax code
in line with international law. New developments in the European Union
regulatory code required reform of our tax system in the BVI. Had we
failed to act, our laws would not have been in compliance and as a result,
our financial services sector, which contributes so much to our
Territory’s economy, would have been at risk.
And so we faced up to this challenge and reformed our tax system. Under
the new system, income will no longer be subject to any
taxation––either for businesses or for individuals. Instead, taxes
will be deducted directly from payroll. This reform was a difficult
decision for my Government. We carefully examined a number of
options––and it was our conclusion that the payroll tax offered the
best plan for protecting our economy.
Ladies and gentlemen, the new tax system meets the three crucial tests:
sustainability, sufficiency and fairness.
The new tax system is sustainable because it will allow our economy to
continue to grow and thrive. Payroll taxes are used in the United States
and Europe without harming the ability of companies to grow and hire;
therefore, we have every confidence that the same will be true here as
well.
The new tax system is sufficient, because we have analyzed projected
revenue and are confident that my Government will generate enough tax
revenue to continue to meet our obligations to the people of the BVI.
And finally, the new tax system meets the test of fairness, because it
ensures that those who earn more will pay more––and everybody
contributes in proportion to their means. This is true for businesses, as
well as for individuals. Under the new system small businesses will pay at
a lower tax rate than large businesses. And importantly, workers will pay
less in taxes under the new system than they did under the old system.
We understand that this important tax reform has created some concerns. We
appreciate the close involvement of the business community. And it is our
intention to continue to work closely with all stakeholders to manage this
transition and to help make it as smooth as possible by organising
seminars on the payroll tax. We are confident that the end result will be
an economy that is stronger and more stable than ever. And more
importantly, a standard of living that continues to rise for all the
people of this Territory.
It is in that spirit of raising our standard of living that I am
particularly pleased with the work that has been done to improve and
beautify our Territory's capital. The recent announcement of the
establishment of a City Manager for Road Town, who will be charged with
preparing for the creation of a Town Council, is just the latest step
toward the development of a Capital worthy of our Territory.
We have invested in making Road Town more beautiful through landscaping
efforts––planting flowers, paving parking lots, and finally removing
the eyesores of Mount Peebles and Mount Savage. And we have also moved to
ensure that future development in Road Town and throughout the BVI can
take place in an orderly and well managed fashion. Toward that end, we
recently passed the Physical Planning Act which will allow people to move
forward with construction plans with less hassle and less red-tape, while
at the same time guaranteeing that environmental and aesthetic standards
are strictly maintained.
Ladies and gentlemen, all of these accomplishments of 2004––from the
curriculum review, to the tourism standards programme, from tax reform to
the Physical Planning Act––all have been done with one goal in mind:
creating more opportunities for the people of this Territory.
And so it is with great optimism that we look ahead to 2005 and the years
to come – because it is our core conviction that when given the
opportunity the people of the BVI can compete and win on the global stage.
That is why our Opportunity Agenda will continue to guide this Government
moving forward. For there is still so much more we can do together.
In 2005 we expect to see work commence on a new five-star resort, as well
as a golf course, so that our tourism industry can continue to raise its
level and provide new jobs and opportunities.
In 2005, we look forward to another successful school year and
graduations, with the great hope that more of our young people than ever
will complete their high school studies and go on for higher degrees here
in the BVI and abroad.
In 2005, we anticipate even greater growth in the financial services
industry, and through close cooperation with the private sector, we will
continue to work to ensure that all the people of this Territory feel this
industry’s success.
Ladies and gentlemen, quite simply, we look ahead to 2005 and see a moment
of unique possibility and hope. But even as we celebrate the successes of
2004 and look forward to the next, we also recognize the great challenges
that lie ahead. And among these none are more urgent or more critical to
our future than the fight to end violent crime on our island.
For generations, the people of the BVI lived in blessed isolation from the
twin plagues of drugs and violence that haunted so many parts of the
world. But in our modern age where the international media pipes in images
of questionable moral values; where criminals know no restraints and crime
recognizes no borders; and where the social problems of one country
quickly spread to all its neighbours, we can no longer count on our small
size or isolated geography to keep us safe.
The reality is all too clear: the seeds of violence and moral decay are
here––and they are trying to take root in the hearts of our young
people. No cause is more important, no challenge more urgent and no battle
more crucial than the fight to protect our young people and to steer them
in the right direction. We cannot overstate the danger. We need only look
at the terrible price that drugs and crime have taken on communities
throughout the world. We need only look at the price they have already
exacted here in the BVI.
The choice for us is clear: either we will devote every measure of energy
and effort toward giving our young people the hope, opportunity and moral
guidance they need to make the right choices in life. Or we will sit idly
by, choose to do nothing, and through our inaction doom our children and
ourselves to a future rife with violence and degradation.
The choice is ours to make. And I know that I speak on behalf of every
parent and every teacher, every community leader and every citizen when I
say that I choose to fight. I will not sit by and let a generation lose
its dreams. I will not be idle while unthinkable acts of violence become
common occurrences. I will not rest easy and allow the BVI to become a
jaded society.
Ladies and gentlemen, I remain committed to a zero-tolerance policy on
crime. That is why in 2004 I convened a high-level meeting as a first step
to determining the causes of crime in our community and developing a
multi-sectoral approach to reducing it.
I know that we can and we will beat drugs and crime if we all commit
ourselves to this effort. But it must be a common cause. This is not just
about the police, although they surely have an important role. It is not
just about our schools, although that is surely where much work must be
done.
Ladies and gentlemen, it is about partnership. It is about teachers and
parents and clergy and community leaders and neighbours and friends all
joining together and recognizing that any child in the BVI is a child of
us all. We are all as responsible for that child’s well being as are his
or her own parents. If we see them doing wrong, then it is up to all of us
to try to set them right. If we see them in need, it is up to all of us to
give them a hand. If we see them in danger, it is up to all of us to act
as their shield and defender.
That is the true meaning of community. And it will take a community to win
the war against crime. But I know that when we join together as a
community than there is no challenge that we cannot overcome. Whether it
is raising our children or raising our standard of living; whether it is
addressing the issue of immigration, or reforming our Constitution;
whether it is protecting our environment or growing our economy, the big
issues of tomorrow all demand a shared effort.
Ladies and gentlemen, as we look to 2005 as a year of opportunity, we
expect to see a work started on a new high school. In 2005, we expect to
see the beginning of a new hospital. We expect to move from Category Two
to Category One Shipping Registry. In a few days, I will host a Global
Mega-Yacht Industry Seminar to stimulate further growth in the BVI’s
mega-yacht sector.
In 2005, we expect to see the appointment of a City Manager for Road Town
and in 2005 we expect to continue working on liberalizing the
telecommunications sector.
We may not always agree on how to deal with these issues. That is normal
and positive. But we must be committed to working together in a spirit of
communal responsibility and Christian charity. We must be respectful of
one another. We must listen to each other. And we must never forget that
when all is said and done, the things that divide us are never as large or
as important as the enduring bonds that unite us all.
I have said this in the past and will say it again: here in the BVI we are
as one family. That has always been the fundamental truth of this
community. It remains so to this day. And like any family we have our
trying moments. I understand that in these challenging times, it sometimes
seems as if we have drifted apart and that the spirit of community has
disappeared from our lives.
But for those who feel that way, I urge you to take a closer look.
Think about how people respond at times of natural emergencies––how
they reach out to their neighbours and open their homes. Think about all
those who offer their time and labour for everything from putting together
our annual Festival to holding one of the almost weekly events that brings
our community together. Think about the teachers who work so hard to
educate our young people and provide them with the life lessons they will
need. Think about the ministers who don’t just provide the Word of God
but are always there to offer a helping hand.
Think about all those who are never to busy to lift up someone in need,
never too tired to lend a hand, never too poor to be charitable. That is
where you see the true face of the BVI. And it is a source of hope and
inspiration to me everyday. Because I know that a community this strong
can meet any challenge. We can overcome any obstacle. And we can scale any
height.
And so I call on all who are part of this community to use this New Year
as a moment to give thanks for this blessed BVI family. Let us all give
our humble praise to our Creator who bestowed upon us this great gift of
unity. And together, let us all resolve to honour his blessing upon us by
making 2005 a year of great achievements. Let us build on the success of
this past year to forge an even brighter future. And let us never stop
believing in the power of all of us to change our world for the better.
Ladies and gentlemen, 2004 was a year of reform for my administration and
for the Territory, and now, we forge ahead in 2005 embracing a future of
opportunity.
Thank you. God bless you this year. And may God continue to bless the
British Virgin Islands.
Happy New Year!
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