FCO Turns Down
We recall that just a couple of months ago the government persuaded the House of Assembly to approve issuing some $200 million in bonds. It was not so difficult to persuade the House. After all, of the 11 voting members of the House, only 2 are in Opposition. The British would be well aware of how farcical such an approval is.
Then our brilliant leaders discovered they needed Auntie’s approval to make the borrowing that had just been approved. So, off they went to
Well, there was just one question. How are you going to pay back the money you plan to borrow? You are not going to leave it to the British taxpayer to bail you out, are you? Oh, you have no plan! A hurricane may strike next month and set all your plans aside? Is that any reason not to have a plan for paying back the borrowing? Do you go to a bank to borrow and not come with a business plan showing how you expect to be able to repay? Is getting permission to increase borrowing any different? Of course it is not!
And, Hubert is so right. Government has just given away one of its main sources of revenue. And, apparently, to people who were not even asking for the gift. First, they announced that they were going to bail out Flag Luxury Resort by taking over the white elephant golf course in exchange for all the bed tax and aliens landholding revenue from that real estate development project. For the next thirty years! Then they announced that they will severely cut the taxes for Viceroy. Then, they will severely cut the taxes on real estate transactions with all foreigners until further notice.
Well, we permitted Flag and Viceroy to import massive amounts of cheap Asian ‘slave’ labour, resulting in minimal local employment. Then, we astonished them by gifting them with the opportunity to unload their over-priced units free of all sales taxes. Our explanation? We thought it was an excellent initiative to stimulate the economy!
No income. No ability to pay back borrowings. No way.