Consultation to begin on European Union funded revenue study
TCIG has today released a presentation charting the macroeconomic and fiscal history of the Turks and Caicos Islands since the 1990s. The presentation will be used to set the context for consultations on the European Union funded revenue study due to begin next week.
Brian Titley, the UK Chief Economic Adviser to the Governor, remarked that the presentations underlined the fragility of the TCI economy and its public finances. ‘These problems have built up over time and will not go away overnight. Corrective action is needed and now. Whatever administration is in government would face the same tough choices.’
The presentation reveals a history of poor administration and unsustainable economic growth through an over investment in the construction of real estate during the latter half of the last decade that outpaced demand.
‘The benefits of the rapid growth in construction activity were too narrowly distributed and short lived. At the same time there was a 3 fold increase in public sector spending to the exclusion of much needed investments in other business sectors, public infrastructure and in the education and training required to modernise public services and the economy. Together these decisions increased the vulnerability of the economy to external shocks’.
‘TCI is a small economy and in danger of getting smaller. If it is grow and compete effectively in an increasingly competitive regional and global economy it must correct its public finances, improve its public services, grow its consumer base and remove barriers to business innovation, creation, competition and growth. Not to do so will only damage the interests of Belongers and all residents in the long run’.
The tax consultations will play an important part in setting TCIG’s budget for 2011/12 which is being led by the Chief Financial Officer Caroline Gardner with Delton Jones, the Permanent Secretary of the Ministry of Finance.
They commented: ‘The announcement last week of the UK Government’s intention to provide a loan guarantee to the TCI represents a vital opportunity to turn around TCIGs finances, but revenue reform remains essential. TCIG has a growing structural deficit in its public finances; recurrent revenues have never covered recurrent government spending’.
Although revenues were buoyant during the middle of the last decade, due principally to the sale of crown land and increased imports of construction materials, public sector debt has exploded in the last 5 years. It will continue to grow rapidly unless wasteful public spending is cut and revenues improved. A narrow tax base, poor tax administration and the unchecked granting of tax exemptions and concessions by the previous administration have undermined the public revenue system in the TCI. It is no longer fit for a modernising economy. The need for reform has long been recognized within the Ministry of Finance but was overlooked by previous administrations.
‘There will always be some winners and losers from fiscal measures’ Ms Gardner continued, ‘but some existing taxes can be simplified and replaced by more efficient ones so the overall burden need not increase significantly. This, however, cannot take place overnight because new tax collection systems first need to be in place’.
Public consultations on the EU revenue study are due to start late next week. Work on the study began in October last year and follows up Professor Alan Roe’s review of the revenue system in early 2010. However, the study has already concluded that the introduction of a low annual tax on property is not administratively feasible or prudent in current economic conditions. The Government has accepted these conclusions.
The Ministry of Finance is also releasing the latest national accounts statistics for the TCI economy in a preliminary report. ‘Developing estimates of economic activity in our country is a demanding task and raises a number of difficult issues’, explained Delton Jones. ‘I am therefore grateful to my colleagues in the Department for Economics Planning and Statistics for their continuing hard work and analysis to address these issues and improve our statistics’.
Consultations on options for improving the revenue system in the TCI will be held at the Hilly Ewing Building on Providenciales from Thursday 17th to Saturday 19th February 2011 at the following times:
Thursday 17th February, 2:30 pm – 4:30 pm
Friday 18th February 10:00 am – 12:00 pm
Friday 18th February, 2:00 pm – 4:00 pm
Saturday 19th February, 10:00 am – 12:00 pm
All meetings will be live on Radio Turks & Caicos at the following times and can be hear via this website.
Copies of the slide presentation and national accounts report are available at www.gov.tc or by going directly to the following links.
or
Jitney crashes in Provo
The Turks and Caicos Police are again asking residents to desist from using illegal jitneys as a mode of transportation.
This comes after reports of a jitney running off the road earlier today along the Millennium Highway in which no one was serious injured. Reports reaching RTC suggest that the vehicle was carrying four Haitian nationals when it landed into a bushy area and the driver along with his passengers ran off leaving the vehicle.
Illegal jitneys are a major problem in Provo and the public is asked to use the Government licensed taxi's and buses which are insured and legal. Police are investigating the accident.
CRIME in the TCI down during 2010
Total crime dipped by six per cent last year despite an alarming surge in armed robberies.
There were 2,736 offences recorded between January 1 and December 31st 2010 compared to 2,896 incidents in 2009.
Commissioner of Police Edward Hall said armed robberies were a major challenge for the under-resourced force. Robberies saw a significant hike with 146 offences reported in 2010 a 30 per cent increase on the 112 which took place in 2009. It's fair to say criminals exploit our vulnerabilities and create a need for concern throughout the community, especially Providenciales, Commissioner Hall said.
Total cash stolen last year topped $213,000 while the value of jewelry nabbed was $367,000.Overall crime reached a peak in July which saw a whopping 273 offences take place. November was the most peaceful month with 143 incidents.
The Commissioner said special operations Alpha 1 and 2 which included stepped up patrols and a gun amnesty had severely dispersed criminal elements. There was also a welcomed five per cent increase in the forces detection rate. Last year, 26 per cent of crime was solved, compared to 21 per cent in 2009.
The bulk of crime continues to take place in most densely populated Providenciales which saw 2,182 incidents in 2010. Grand Turk had 429 crimes recorded, while South Caicos came in as the third biggest offender with 86.North Caicos had 32, Middle had four and Salt Cay three.
Burglary and theft remained the most prevalent offences across the Islands with 810 and 328 incidents reported respectively. There were also 373 assaults and woundings, 223 incidents of damage to property, 194 motor vehicle interferences and 116 drug offences. In addition, there were 123 firearm crimes, 54 sexual offences and four murders.
Last year, 32 crimes were committed against visitors a slight decrease on the 34 reported in 2009.
Air Turks & Caicos closer to flying into Cayman
Air Turks & Caicos has been granted a license to operate services to Grand Cayman.
The route will originate in the island of Providenciales and call at Kingston, then Owen Roberts International Airport before landing in Cuba, and vice versa.
Flights were originally mooted during 2010, but an objection to the service was raised by Cayman Airways.
However, the Air Transport Licensing Authority of the Cayman Islands subsequently granted the carrier a license.
Air Turks & Caicos chairman Lyndon Gardiner told a local TV station that various documents, including a feasibility study and a financial study, had been requested by the authority.
“Obviously the new structure in connecting the Cayman Islands was vital to their tourism and business development and I think they saw our application to commence service as enhancing [that] in making Cayman more accessible to the region,” Mr. Gardiner said.
Granting approval
Before flights can begin, approvals must be granted by Jamaica and Cuba, explained the chairman.
“Under the bilateral agreement between Jamaica and Cuba, Air Turks and Caicos has been designated as a British carrier and so the approvals are a lot different from what we saw before.We think it’s just a matter of formality because they are written international agreements covering what we are attempting to do now.”
The company is buying additional aircraft to enhance the service, which will either be four or five times per week.
Tinie Tempah wins two Brit awards
Rapper Tinie Tempah walked away with two prizes at this year's Brit awards, claiming best British breakthrough act and best single for Pass Out.
The coveted best British album gong went to Mumford and Sons for Sigh No More, while Take That scooped the best British group trophy.
Plan B was named best British male, with Laura Marling receiving the female equivalent.
There were also prizes for Rihanna, Cee Lo Green and Arcade Fire.
The Canadian band's record, The Suburbs, won them the prize for best international album.
They also took home the award for best international group.
Tempah - real name Patrick Okogwu - was the most nominated artist of the night with four nods.
Picking up his first award, the star said: "I want to big up God and my family for sticking by me when times are hard."
Rihanna, who performed on stage, landed the best international female artist trophy, while Cee Lo Green picked up the international male award.
Formula One star Lewis Hamilton presented Cee Lo Green with his trophy.
The rapper and singer said told the audience that his heart was racing.
"I'm so excited," he added. "Thank you so much for this honour. Such a pleasant surprise."
Elsewhere Justin Bieber - the 16-year-old pop sensation who rose to fame on YouTube - took home the gong for best international breakthrough act.
Take That kicked off the show, which was hosted by comedian James Corden, with a performance of their single Kidz.
All five members of the band took to the stage with an army of dancers dressed as riot police.
The group, who reunited with Robbie Williams last year, beat Biffy Clyro, Mumford and Sons and Gorillaz in the best group category.
On stage Mark Owen paid tribute to Williams. "Can I say, thanks for coming back mate," he said. "It's a real pleasure for the five of us to be up here."
The former boy band had also been up for best British album, along with Plan B, Tempah and The xx.
The Who's Roger Daltrey presented the best album award to Mumford and Sons.
"It's good to see the British music industry still has enough money for a good booze-up", he said before before handing the prize over.
Accepting the trophy, Marcus Mumford said: "This is very bizarre, very strange. Thank you very much indeed. We are very honoured, very humbled."
Ellie Goulding and Mark Ronson handed Jessie J with the Critics' Choice prize.
The Essex-born singer, currently number one in the singles chart with Price Tag, is the fourth consecutive female to take home the gong.
Speaking backstage, the star said: "Pop stands for popular. I want to be a pop icon and take Britain across the world."
Adele, Plan B and Tempah were among the acts who performed at the event, while Cee Lo Green and Paloma Faith closed the ceremony.
All performances from the show - which took place at London's O2 arena for the first time - have been made available for fans to buy on the iTunes website.
Profits from the downloads will be donated to the Brits Trust, the awards' charity partner.
Rihanna sued by photographer over S&M pop video
Pop star Rihanna is being sued by celebrity photographer David LaChapelle, who said her S&M video was "directly derived" from his pictures.
LaChapelle, who has photographed celebrities for magazines such as Vanity Fair and Rolling Stone, is suing for unspecified damages.
His case states "the music video is directly derived from and substantially similar to the LaChapelle works".
A spokeswoman for Rihanna, 22, was not immediately available for comment.
The video for S&M has been banned in some countries due to its sexual content.
LaChappelle said Rihanna has appropriated eight of his images into the video, including one where she is shown in profile against a blue background with a sweet on her tongue.
The case states that Rihanna's video copied the "composition, total concept, feel, tone, mood, theme, colours, props, settings, decors wardrobe and lighting" of his work.
Rihanna won the best dance recording Grammy award on Sunday for her track, Only Girl (In the World).
Last month she set a new record as the first female solo artist in UK chart history to achieve number one singles in five consecutive years.
LaChappelle is one of the fashion industry's most respected fashion photographers.
His subjects include Lady Gaga, Kanye West, Chris Rock, Madonna and Naomi Campbell.
He has also directed music videos and stage shows.
Grammy awards watched by more than 26 million in US
This year's Grammy awards were watched by 26.66 million TV viewers in the US, its biggest audience for 11 years.
Viewing figures were up around 3% from last year's audience of 25.87m, broadcaster CBS said.
The show saw Lady Gaga emerging from a giant egg and an all-star tribute to soul queen Aretha Franklin.
Reviews for Sunday's show have been mixed, with the Hollywood Reporter's critic calling it "lousy" and "badly paced".
"The 53rd annual Grammy awards went on longer than a Bruce Springsteen concert," wrote Tim Goodman. "And not in a good way."
Yet the Los Angeles Times was more positive, saying "the line-up's generational range was impressive".
"In the end the spirit belonged to the future, as unpredictable and fragmented as it may be," wrote Ann Powers.
Country trio Lady Antebellum won five prizes, including song of the year and record of the year for their hit Need You Now.
Lady Gaga went home with three awards, as did rapper Jay-Z and soul star John Legend.
US informant in Buju Banton's case 'desperate'
Reggae star Buju Banton trial kicked off on Monday, a day after the artiste won his first Grammy awards.
On the first day DEA agent Dan McCaffrey took the stand to testify against Banton. McCaffrey told the court that Banton was instrumental in setting up the drug deal, however, none of the $135,000 seized belonged to Banton. Two buyers from Georgia name Tyke and Ike was also named in the case.
In his testimony, McCaffrey said that the DEA’s policy is that the agent wouldn’t tell a prospective drug dealer that they were going to show drugs because it could put the undercover agent at risk.
In his opening statement, Prosecutor James Preston, Buju Banton (real name Mark Myrie) willfully entered the plan to expand his existing drug trafficking network.
Buju Banton lead attorney, David Markus, in his opening statement listed 10 reasons why Banton was not guilty. Markus stressed that Buju did not get a dollar or any reward from the deal; never spoke with James Mack nor heard of him before; that he never spoke with Ike and Tyke and never went to the warehouse on December 8, 2009 to see drugs.
David Markus also painted the government informant as a con artist, who did everything to set his client up.
Being an informant has earned Alexander Johnson, the man who appears to have bombarded Buju Banton, for months in order to get him to enter into a cocaine deal, has made more money handing over drug barons to US law enforcement than he ever did during the decade he was a drug dealer.
Johnson, a Colombian who was in 1993 convicted of attempting to smuggle 700 kilograms of cocaine into the United States has earned over US$3.3 million since he became an informant in 1996.
But he has been made out in court to be a desperate man who has had to file for bankruptcy and who has not been paying his taxes.
Just last week Johnson amended a bankruptcy plan to pay debtors he admitted in court under cross-examination from Buju’s attorney David Oscar Markus.
Johnson also admitted that the IRS says he owes approximately $200,000 in taxes and that the agency had told the DEA to pay moneies he earned over to it rather than to the informant. He said the levy was lifted on July 2010, which is days before he received over $50,000 for his cooperation on the Buju case.
As an information Johnson says he is paid between 15-20 per cent of money recovered in drug deals. He received approximately 40 per cent in Buju’s case.
In 2010 he made $117,000 for helping drug enforcement bring down barons.
Buju is facing charges of conspiracy to possess with intent to distribute cocaine and possession of a firearm during the course of a drug trafficking crime, attempting to possess with intent to distribute cocaine, and using a communication facility in the commission of an act constituting a felony.
Gramps celebrates with Buju
Reggae crooner Gramps Morgan was one of several acts from the reggae fraternity who offered congratulatory messages to cultural icon Buju Banton for his well-deserved Grammy Award for Best Reggae Album.
"Congrats my brother on your victory at the Grammy awards. You have made all of us in reggae land very proud of your accomplishments. You have undergone many challenges over the past year but you have held your head high and to be rewarded with a Grammy ... wow! I am so happy I had the opportunity to work with you on the album. We did it! Love Gramps" he said.
Congratulatory messages have also been pouring in for Buju from fans and well-wishers on numerous blog and social-networking sites.
Gramps had added reason to celebrate given that he sang lead vocals with Banton on Try Life, the ninth track on Buju's Before The Dawn.
He is also credited as a co-writer/co-producer of the song.
On January 16, Gramps was one of several performers including Jr Gong and Stephen Marley, Busta Rhymes, DJ Khaled, Shaggy, Sean Paul, Tarrus Riley, Wayne Wonder and Marcia Griffiths who came together in Florida to show love and support for Buju at a benefit reggae concert in his honour.
Tourism minister for talks with airline officials
St Lucia's Tourism Minister Allan Chastanet is due in Trinidad and Tobago on Friday for talks with officials of Caribbean Airlines Limited (CAL) on increasing the number of airline seats and the increased cost of travel across the region.
CAL recently announced plans to introduce Dash 8 services this month to a number of destinations in the south Caribbean.
While St Lucia was not named among the islands to be serviced by the carrier, Chastanet, who has often been critical of the regional airline, LIAT over its services, said he is hoping to cut a deal with Caribbean Airlines to begin flights to the island as soon as possible.
Need for competition
Chastanet has defended his decision to hold talks with CAL, insisting that there is need for competition on the various routes.
"LIAT has had three and a half to four years in order to restructure itself in order to become more competitive, but as we have heard the airline continues to lose money," he said, noting that adjustments by the airline has always been accompanied by higher air fares and less capacity.
"So it seems like LIAT has chosen a model that suits LIAT rather than perceiving itself as an economic driver for this region," Chastanet added.
He said the decision by the Stephenson King administration to approach Caribbean Airlines to begin a service here was intended to boost arrivals from within the region particularly ahead of this year's Jazz Festival scheduled for the first week in May.
Official figures show that since 2005, St Lucia has recorded a 60,000 reduction in intra-regional passenger load, with several small hotels on the island experiencing the effects of the decline.
Chastanet said that he is now looking for some non-stop services between Trinidad and St Lucia and also some services from Trinidad through Barbados.
He said that talks were also being held with American Eagle for two daily flights starting in April, and there are also plans to introduce two services a day between St Lucia and Barbados.
"So between Caribbean Airlines, American Eagle and CARICOM Airlines we could be seeing a very different scenario with the flow of regional traffic during the second half of the year," Chastanet said.
- CMC