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ISSUE NO.67 July 2002


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Prime Minister Lester Bird (center) and British Officials in London


Young nationals receive major appointments in Ministry of Finance

Whitfield Harris Jr. and David Matthias have been appointed to act as Financial Secretary and Budget Director respectively with effect from 4th July 2002.

Mr. Harris holds a Master of Arts (Econ.) degree in Development Administration and Management from the University of Manchester in England.

In February 1986 he joined the Public Service in the Ministry of Economic Development, Tourism and Energy. In October of 1986, Mr. Harris joined the Ministry of Finance where he functioned in various capacities until his promotion to the post of Permanent Secretary, a position that he held in the Ministries of Youth Empowerment and Tourism and Environment.

In January 2001, Mr. Harris was appointed as Budget Director, the position in which he actively functioned until 3rd July 2002. Mr. Harris will now act as Financial Secretary.

Mr. David Matthias holds a Master of Science degree in Development and Project Planning from the University of Bradford in England.

He is currently in his ninth year of employment in the Public Service and prior to 4th July 2002 actively filled the position of Project Manager of the Public Sector Reform Project. Mr. Matthias has also acted in the position of Permanent Secretary in the Ministry of Trade and Economic Development.

Junior Minister of Finance, Asot Michael, commented that the appointments of Messrs. Harris and Matthias are further evidence of the well-known position of the government that young Antiguans and Barbudans should be given the opportunity to contribute to the country’s economic and social development.

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Government wins again in tax case

Junior Minister in the Ministry of Finance, Asot Michael, has welcomed the judgment of the High Court of Justice in the case of British American Insurance Co Ltd vs. Attorney General of Antigua and Barbuda delivered on 8th July 2002.

The High Court held that the amendments made to the Income Tax Act by the Income Tax (Amendment No. 2) Act No 16 of 2000 by the Parliament of Antigua and Barbuda were not unconstitutional.

The amendments made in 2000 require that a person or company assessed to tax must pay the assessed tax before any objection or appeal can be filed, pursued or heard by the Commissioner, Board of Appeal or the Courts. Counsel for British American Mr. Justin Simon argued that the amendments were unconstitutional and were not justifiable in a democratic society.

Mr. Anthony W. Astaphan, S. C. on behalf of the Attorney General replied that the amendments were in the public interest and intended to galvanize the power of the Commissioner of Inland Revenue to collect taxes assessed and due to the Treasury.

Mr. Astaphan also submitted that the amendments were entirely consistent with the Constitution and were reasonably justifiable in a democratic society. The High Court agreed with the submissions of Mr. Astaphan.

Senator Michael called upon all taxpayers to abide by the judgment of the High Court and pay all taxes assessed and due to the Comptroller of Inland Revenue now that the legality of the Act as been settled by the Court.

Acting Financial Secretary, Mr. Whitfield Harris Jr. commented that this victory, following on the heels of a recent Texaco case, is another significant milestone in the Government’s campaign to reverse the culture of tax evasion and avoidance that is so pervasive in the society.

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Airport and Seaport Security Enhancement Project for Antigua and Barbuda

At the 202nd Meeting of the Board of Directors of the Caribbean Development Bank (CDB), held on 11th July 2002, an Airport and Seaport Security Enhancement Project for Antigua and Barbuda was approved. The CDB is to make available to the Government of Antigua and Barbuda a loan in the amount of US$3.3 million to be repaid on concessionary terms over a ten-year period.

The purpose of the project is to enhance security at major ports, to meet acceptable international standards, and to maintain effective capacity for the processing of goods and passengers. The project consists of the construction and rehabilitation of infrastructure, the supply and installation of equipment and the upgrading of personnel skills at the main seaport and airport in Antigua. This is expected to enhance security at these facilities in order to meet the post September 11 requirements of the respective international air transport and maritime transport regulatory agencies.

Upon completion the project will see Antigua and Barbuda well positioned to pass the upcoming security audits that will be undertaken shortly by organisations such as the International Civil Aviation Organisation.

According to Minister Asot Michael, “The bottom line is that this project will help to secure the jobs of the many Antiguans and Barbudans who work in the Tourism and Transportation industries, and preserve the welfare of their families.”

Acting Financial Secretary, Mr. Whitfield Harris Jr., represented Antigua and Barbuda at the CDB meeting.

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$23.7m schools’ repair programme underway

The Board of Education’s $23.7 million programme of repair, refurbishment and expansion on all government secondary institutions officially began in July with the signing of contracts awarded to Roberts Construction and Engineering Co. Ltd., and the Chinese construction company COMPLANT.

Package No.1, which comprises All Saints Secondary, Princess Margaret Secondary, Antigua Girls’ High School and Holy Trinity, was awarded to Roberts Construction. Packages 2 and 3 were awarded to COMPLANT. These cover Clare Hall, Jennings and Pares Secondary, as well as Ottos Comprehensive and the Antigua Grammar schools.

The work will include repairs to the existing structures as well as the construction of additional classroom facilities where necessary.

Work has already begun on a new secondary school in Barbuda. The current school will eventually serve as the primary section of Holy Trinity.

Project Manager, Lucine Hanley, noted that the Board had been in dialogue with the principals at the various schools so as to keep them abreast of the developments and to ensure that there is as little disruption to the schools’ activities as possible.

The principals welcomed the idea of the repair project and stated that they were prepared to make the sacrifices in order to improve the schools’ conditions.

The project, financed by the Caribbean Development Bank and the Board of Education is expected to last approximately two years, barring any setbacks due to natural disasters or other unforeseeable events.

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Board to announce scholarship recipients

The Board of Education has received the $1.5 million from government for its scholarship programme and will be publishing the names of the scholarship recipients soon.

Scholarship Co-ordinator, Sharon Proctor, said there were 106 students selected by the National Scholarship Committee out of 243 that applied.

This number includes the Island scholar who will be announced when the “A” level and CAPE results are released.

This year’s scholarships will send 48 students to study at University of the West Indies campuses and other Caribbean tertiary institutions, 12 to Cuba, 21 to the United States, 12 to United Kingdom and Europe and four to Canada.

Nine scholarships have been allocated to teachers going off to study.

Since its inception in 1994, the Board has assisted 836 students in their tertiary studies to the tune of $30.1 million.

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Six million gallon dam to assist farmers

The Ministry of Agriculture is constructing a water dam for small farmers in the vicinity of Big Creek. The dam is expected to hold six million gallons of water.

Acting head of the Agricultural Extension Services, Sereno Benjamin, disclosed that the construction of the dam would provide small farmers with an adequate water supply.

Benjamin noted that many small farmers in the area had complained about the lack of water. He indicated that the small farmers came together and pooled resources to help finance the construction of the dam.

The dam is expected to be completed within a month.

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Prime Minister Bird instructs UK lawyers to sue BBC for libel

Prime Minister Lester Bird has instructed the London legal firm of Charles Russell Solicitors to sue the BBC for libel.

The libel was contained in a broadcast on the "Today" programme on one of the BBC's domestic radio channels, Radio 4, and was repeated by BBC World Television worldwide and on the BBC's website on the Internet on Friday, 5th July.

The Prime Minister's London lawyers consider the BBC introduction to the Radio 4 story by its reporter Fergal Parkinson and the story itself to constitute a most serious defamation.

In introducing the Parkinson report, the BBC presenter said:

"A Royal Commission set up to investigate corruption on the Caribbean island of Antigua has found that the Prime Minister Lester Bird has spent more than 200 million dollars of the country's health fund on parties, presents and foreign trips for his friends and colleagues."

The fact is that the Commission of Inquiry, headed by Sir Alister McIntyre, was not set up to investigate corruption on Antigua; it was established to inquire into the operations of the Medical Benefits Scheme. Further the Commission has not yet written its report and has published no findings whatsoever. Therefore, the BBC is wholly inaccurate by claiming it has made any findings of any kind concerning the Prime Minister. It is also significant that, at no time, was the Prime Minister a subject of the Commission's Inquiry. He was not sent a Salmon Letter requiring him to appear before it, nor was he asked to appear before it at all.

The public of Antigua and Barbuda, who watched or listened to the live and recorded television and radio broadcasts of the Inquiry as it transpired, are also fully aware that at no time was any allegation made that the Prime Minister "spent more than 200 million dollars of the country's health fund on parties, presents and foreign trips for his friends and colleagues."

Apart from the defamation contained in the words of the BBC presenter who introduced the Parkinson report, the story itself is riddled with libel. In essence, it claims that the Prime Minister caused the death of many children in Antigua and Barbuda by spending money that should have been spent on their health care to fund parties, presents and foreign trips for his friends and colleagues.

It is noteworthy that, in his evidence to the Commission of Inquiry, Paediatrician Dr. Thomas Martin made reference to only one child whose life he thought could be saved by appropriate action by the Medical Benefits Scheme. At no time did he suggest that money that could be used to save the child was used by the Prime Minister to fund lavish parties, presents and foreign travel.

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New road signs to depict Antigua’s history

Locals and visitors alike can look out for new directional signs highlighting the historical aspect of the country and its beauty.

The Ministry of Tourism and Environment is behind this initiative along with support from the Antigua and Barbuda Transport Board and the Traffic Department.

“The whole idea is to enhance the experience of the visitor to Antigua and Barbuda. We know from surveys we have undertaken that one of the negative experiences of visitors coming to the Island is the lack of directional signs. We also acknowledge at the same time that villages, landmarks and other places of interest are not properly identified,” Tourism Minister Molwyn Joseph said.

According to Joseph, the new concept has a blend of international designs as well as an Antigua and Barbuda-Caribbean flavour.

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Darkwood road reopens

The new and improved Darkwood Road is now reopen to vehicular traffic. The Darkwood Road, which runs along the popular Darkwood beach, is about eight miles from St John’s and was severely damaged during the passage of Hurricane Lenny in 1999.

The government sought assistance from the Peoples’ Republic of China in rebuilding the road. The project included the erection of infrastructure that will protect the road from rising sea levels during hurricanes.

The project began on the 17th of March this year, and cost approximately EC$1.3m.

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Tax Relief: Government to review sections of Property Tax Act

Government will be reviewing sections of the Property Tax Act (2000) in an attempt to provide some tax relief.

Prime Minister Lester Bird made this announcement in July during a sitting of the House of Representatives in response to Member of Parliament for All Saints East and St. Luke, Charlesworth Samuel. Samuel’s bone of contention was the increase of property taxes, specifically the land tax which was raised from $2 per acre to $200 per acre.

According to Samuel this increase “constitutes an increase of 10,000 per cent.” But Mr Bird pointed out that the land taxes were amended in 2000 and that the increase was the first since 1964.

“As such, the rate of $2 per acre was not even remotely commensurate with what might have been considered a fairer rate of assessment.

Hence in order to realign the land tax to reflect a more meaningful assessment, the rate of $50 per acre per year up to five years was legislated, whilst in excess of five acres attracted a land tax rate of $200 per acre on an annual basis,” he said.

According to the Prime Minister, the rate increase for lands in excess of five acres was an attempt to make the tax a progressive one. “Whilst one might question the size of the increment between the two rates, one must recognise that an annual rate of $50 per acre is still very low.
It is no accident that legislation provides for a rate of $50 up to five acres, since it is a given that most landowners in Antigua and Barbuda do not own in excess of five acres.

Those land owners who own in excess of five acres tend to be the more affluent Antiguans who can well afford to pay the annual rate of $200 per acre, a rate that is close to a fairer assessment than the nominal rate of $50,” he explained.

Mr Bird also said the Cabinet had recently reviewed sections of the Property Tax Act with the intention of making some amendments to certain sections in order to give some tax relief to elderly tax payers, among others. He added, “I am also prepared to have technicians in the Ministry of Finance revisit the size of the increment between the two applicable land tax rates.”

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Government disburses nearly $21 Million

The Government has made good on a number of outstanding financial obligations.

Junior Finance Minister Asot Michael explained that disbursements were made to the Eastern Caribbean Central Bank (ECCB), the Board of Education, Marconi Systems, Mohammed Abdul Al-Kharafi & Sons and the Kuwait Fund.

Senator Michael said that the government’s remittance of $7 million to the ECCB will go a long way in settling its obligations to the Bank. Short-term credit from the ECCB has become necessary in recent times, as the economies of the Eastern Caribbean have been affected by the global economic downturn.

Commenting on the disbursement of nearly $2.5 million in respect to Alenia Marconi, the Junior Finance Minister indicated that the payment would facilitate the completion of the Secondary Surveillance Radar System project at the V.C. Bird International Airport. The commissioning of this system would improve the surveillance capability at the airport, thus enhancing airspace safety at a time when the volume of air traffic is rising.

The payments to Al-Kharafi and Sons and the Kuwait Fund of $2.04 million and $5.25 million respectively, will mean the recommencement of the parallel taxiway and All Saints Road projects. He further disclosed that the parallel taxiway project would accommodate an upgraded airport lighting system.

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Czech Republic Ambassador visits

On 15th July, H.E. Mr Antoine Blazek, Ambassador of the Czech Republic to Antigua and Barbuda, presented his credentials to the Governor-General, Sir James Carlisle and paid a courtesy call on Prime Minister Lester Bird.

The Prime Minister and the Czech Ambassador discussed the possibilities for expanding trade and economic contacts between both countries including the facilitation of tourism.

Mr Bird explained Antigua and Barbuda’s view of the OECD Harmful Tax Competition Initiative to the Ambassador and urged the Czech Republic, as an OECD Member, to ensure that the Global Tax Forum was a genuine multilateral organization where international tax issues could be discussed in an atmosphere free from coercion.

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Prime Minister Bird meets Commonwealth Secretariat officials
Left to right: Winston Cox - Deputy Secretary-General, Commonwealth Secretariat, Prime Minister Lester Bird, Florence Mugasha - Deputy Secretary-General, Commonwealth Secretariat and Senator Asot Michael in London

On Tuesday 23rd July, Prime Minister Lester Bird held a meeting in London with the two Deputy Secretaries-General of the Commonwealth to review a number of matters in which the Commonwealth has been involved in Antigua and Barbuda.

Topping the list of discussion with the two Deputy Secretaries-General, Winston Cox and Florence Mugasha, was the legislation to amend the Representation of the Peoples Act.

The legislation, which was adopted by the House of Representatives recently, amends the Act to provide for a new Elections Commission, continuous voter registration and the provision of identification cards that will include both photographs and a thumb print.

The new legislation arises from a recommendation by a Commonwealth Group that observed the 1999 general elections. Subsequently, the Commonwealth Secretariat provided the services of a legal expert to draft the new elections law.

The Prime Minister told the two Deputy Secretaries-General that “the Commonwealth had played an influential role in the new electoral framework in Antigua and Barbuda”. He advised that his government will be making a formal request to the Commonwealth Secretariat to observe the next general elections which is not constitutionally due until March 2004.

Mr Bird pointed out that a specific provision of the new legislation is that “registration officers had to be trained to the satisfaction of the new Elections Commission”. In this connection, the Prime Minister requested that the Commonwealth Secretariat send a team to Antigua to discuss the training needs with the Elections Commission and to provide experienced trainers “if the Commission so wished”.

Mr Bird also reviewed the operation of the Joint Consultative Committee of representatives of the Central Government and the Barbuda local council. The Joint Committee is charged with responsibility for the development of Barbuda. The Prime Minister has asked that the Secretariat send a “good offices” mission to assess the operations of the Joint Committee so far. Mr Bird said that he is interested in “preventing conflict” between the Central Government and the Barbuda local council and felt that a “good offices” mission by the Commonwealth would help to avert conflict over “looming issues”.

The two Secretaries-General, who met the Prime Minister in the absence of Secretary-General Don McKinnon who was officiating at the Commonwealth Games, reaffirmed the Commonwealth’s interest in playing any helpful role that the Secretariat was invited to play in Antigua and Barbuda.

They also agreed to look favourably at a request from Mr Bird for the services of a legal draftsperson to help Antigua and Barbuda cope with the many new pieces of legislation required by the international community particularly in the areas of money laundering, financial regulation and airport and port security. The senior Commonwealth officials also agreed to provide assistance in the strengthening of the customs department to counter fraud and bolster security.

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PM Bird meets UK Treasury and Foreign Office Officials: Discussions held on the Financial Services Sector

Prime Minister Lester Bird met a five-man delegation from the British Treasury Department and the Foreign and Commonwealth Office on the 24th July.

The British team was led by Mr Joseph Halligan, the Head of the International Financial Services of the UK Treasury, and included Mr Syd Maddicott, Head of the Caribbean Department of the Foreign and Commonwealth Office, Mr Ian Richards, the Team leader of the Economic Crime and Tax Policy Department of the Foreign Office, and Ms Heather Kempton, Head of the Financial Crime Branch of the Treasury.

The discussions focussed on the Financial Services Sector and Antigua and Barbuda’s role in combating money laundering and other financial crime. Antigua and Barbuda has never been on the list of non-cooperative jurisdictions compiled by the Financial Action Task Force, a body charged with overseeing the regulatory and enforcement regimes in countries worldwide.

Mr Halligan raised new issues that were of concern to the UK government in the context of the global fight against money laundering. It was emphasised that if the government failed to address these concerns, Antigua and Barbuda could be placed on a future list of non-cooperative jurisdictions. The Prime Minister assured him that the government of Antigua and Barbuda is very sensitive to the issues of financial crime, particularly terrorism financing, that pose a threat to the security of the country’s allies especially the United Kingdom and the United States.

Mr Bird invited Mr Halligan to raise ways in which Antigua and Barbuda can be of greater assistance in these matters with Sir Ronald Sanders, the country’s High Commissioner to the UK, for onward transmission directly to him.

The Prime Minister also drew attention to legislation that was introduced in the House of Representatives in July to amend the International Business Corporations Act. Under the amended legislation, Antigua and Barbuda has tightened-up the requirements for persons to act as agents for international business corporations, including banks. Mr Bird also revealed that in the current session of parliament, the Government would introduce amendments to the Money Laundering Prevention Act to expand the range of activities for money laundering offences and to stiffen penalties. He said that an Act to strengthen the Financial Intelligence Unit of the ONDCP has already been introduced in the House and should become law during the present session of parliament.

The two governments agreed to strengthen their cooperation and increase their dialogue on ways to meet the challenges faced by small countries in ensuring that regulatory and enforcement machinery is vibrant and effective.

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Ambassador of the Democratic People’s Republic of Algeria pays courtesy call

On 15th July, H.E. Mr Mohammed Khalladi, Ambassador of the Democratic People’s Republic of Algeria to Antigua and Barbuda paid a courtesy call on Prime Minister Lester Bird after presenting his credentials to the Governor-General, Sir James Carlisle.

Discussions touched on issues such as the international campaign against terrorism, South - South Co-operation, the New Partnership for African Development and the possibilities of co-operation with Caribbean countries in the field of energy.

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Second secondary school for Barbuda

Government is keeping its promise to construct a secondary school on the island of Barbuda.

Chairman of the Barbuda Council, Fabian Jones, said the Council has kept its end of the bargain by ensuring a supply of water and electricity is available at the site. “We have done all we are supposed to do. The site is already cleared and we will give the government our full support to ensure that the school is constructed within the allotted time frame.”

“It’s an added plus to have another secondary school in Barbuda. At present a child attends the Holy Trinity School from pre-school to secondary level. This new Secondary school will be an incentive,” he said.

Member of Parliament for the Constituency, Hilbourne Frank, is in favour of the separation of primary school students from their secondary counterparts.

“I’m glad to see it is going through. We want to make a distinction. It sort of gives hope to the older students who are moving on to college. It is something that the whole community is in favour of,” Frank said.

In his 2002 Budget presentation, Prime Minister Lester Bird disclosed that government would enter into an arrangement with contractors to start the construction of two new schools to mark the 21st anniversary of the country’s independence. The new secondary school in Barbuda is one of these and will be built in the Louis Hill area.

The Caribbean Development Bank, under its basic education project, made $24 million available to the government for the renovation/repair and construction of schools. Of this amount, $2.1 million was earmarked for the new secondary school in Barbuda.

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Contractor sues Barbuda Council for $2m

A local contractor is taking the Barbuda Council to court, alleging that the Council owes him over $2 million and has reneged on a contractual agreement between the parties.

Contractor Charles Purcell said that he has completed work on the project concerned, and had borrowed $1.3 million from the Bank of Antigua to finance it. He added that the Council agreed to pay for the cost of the project in sand.

Chairman of the Barbuda Council Fabian Jones noted that an agreement had been signed by the Council to build a sports complex in Barbuda opposite the Council hall. The agreement was signed in September 1999 for the three-phased project to be completed in 18 months, but, according to Jones, the project is yet to be completed.

“They did not adhere to the agreement. The seating is not finished, no electricity or plumbing work has been done. The lockers for the showers are incomplete. It’s far from completed.”

Jones said the Council was not prepared to pay Purcell the more than $2 million he claims the Council owes him.

“They say we owe them over $2 million. If you have a project which costs $1.3 million, how is it going to come up to over $2 million. A lawyer has written us on 4 July concerning the matter. We are not afraid. We can’t do anything once the matter is going to court. The Council will be meeting on Monday to decide its next course of action.”

“During the initial stages of the project, the Council agreed to make a down payment or a mobilization fee $529,000. We were trying to get the funds from donor agencies but were unsuccessful. Apparently, Purcell was in a hurry and decided to take the (value of the) mobilisation fee in sand,” the Council Chairman said.

Jones admitted that the Council sometimes found it difficult to meet Purcell’s demands for the sand but also said that there were some disagreements between the Council and the contractor with regard to the work being done.

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Yearwood: Barbuda Council stalling on osmosis plant

Minister of Public Utilities Robin Yearwood has accused the Barbuda Council of preventing the Antigua Public Utilities Authority from setting up a reverse osmosis plant in Codrington.

Admitting that the quality of water in Barbuda does not meet World Health Organisation’s standards, Yearwood said that once the Council gives the go ahead, APUA would be ready to give quality service. “We have offered to set up a reverse osmosis plant in Barbuda in order to improve the quality of water, and the Council has refused.”

Yearwood was responding to queries as to whether or not the government would approve the deal between the Barbuda Council and a private company to supply Barbuda with water and electricity services.

The Public Utilities Minister said under the APUA Act, only the Authority was responsible for providing water, electricity and telephone services in the country.

However, Chairman of the Barbuda Council, Fabian Jones, has already gone on record saying it is the Council which is responsible for utility services in Codrington.

Commenting on the proposal of the private company, which government has studied, Yearwood said, “when we analysed that proposal we discovered that it was risky and the cost will almost be doubled to the consumer in Barbuda, along with no guarantee of proper services.”

Yearwood continued that the Barbuda Council had been shown the “pitfalls” of the proposal.

He pointed out that Barbudans pay less for electricity than Antiguans, and the service is subsidised by the government.

“No private company is going to give it cheaper. Based on the proposal that was given to us, when we worked it out, the people of Barbuda’s bills would be doubled.

“We are not backing away from our responsibilities. If the Council approves it today, we can put down the reverse osmosis plant,” Yearwood said.

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St. Luce to throw in the towel on politics

One of Antigua’s longest serving Ministers of Government is calling it quits from active politics.

Parliamentary Representative for the constituency of St. John’s City East, John St. Luce, informed his constituents at a recent constituency branch meeting, that he will not be seeking re-election at the upcoming polls.

General elections are constitutionally due to be held in Antigua and Barbuda by June 2004.

St Luce’s decision throws open the contest for selecting a new candidate for that constituency, and could well present the party with its toughest battle to hold onto that seat.

St. Luce, an economist by training, has represented the ALP in parliament for over 30 years, firstly as a senator from 1971 to 1976 and then as a cabinet member from 1976 to the present.

He has served in almost every Cabinet position, with the exception of the education and tourism ministries.

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Nambalamba wins St. Paul’s primary

Eleston “Nambulumbu Nambalamba” Adams will contest the St. Paul’s seat on the opposition United Progressive Party’s ticket in the next general elections.

Adams received overwhelming support during a primary at the Liberta Primary School. He won a total of 86 votes beating businesswoman Valerie Hodge and Desroy Maile, a hotel maintenance supervisor.

St. Paul’s is a strong hold of the Antigua Labour Party and the current Member of Parliament is Education Minister Dr. Rodney Williams.

In the last general elections (1999) Adams garnered 830 votes compared to Dr. Williams 1,201.

This will be the third time that Adams will be running on the UPP’s ticket, the first time being in 1994.

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Potter to run for UPP in All Saints West

Senator Ralph Potter, who unsuccessfully contested the All Saints seat against former Trade Minister Hilroy Humphreys, has been chosen to represent the United Progressive Party for yet another time in upcoming general elections.

Senator Potter obtained 25 votes during in the primary against his rival Deon Browne.

Potter, who narrowly lost to Humphreys by 131 votes in the 1999 elections, has been urged by his competitor, Browne, to be more pro-active in the constituency this time around.

Pledging his full support to Potter, Browne, who received 14 votes, said the aim must be to capture the seat for the UPP and to meet the high expectations of the constituents of All Saints West.

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New legislation in the House of Representatives

The House of Representatives gave a first reading in July to two pieces of legislation that will play a significant role in the future of Antigua and Barbuda.

The Representation of the Peoples (Amendment) Act 2002

The first bill was The Representation of the Peoples (Amendment) Act 2002, which amends existing electoral guidelines and institutes new procedures that will govern general elections. The changes are intended to strengthen the underlying democratic principles of elections in Antigua and Barbuda.

Apart from ensuring that the Elections Commission carries out its function in a fair, impartial and transparent manner, the Act institutes the appointment of a Deputy Chairman of the Commission by the Governor General on the recommendation of the Leader of the Opposition after consultation with the Prime Minister. It also regulates the selection of election officers; the monitoring of electoral lists; and the improvement of the registration process, including provisions to replace the present system of annual registration by a continuous registration system.

In an effort to enhance and improve the voting system, the new legislation stipulates identification card usage, non-partisan voter education programmes, and free and balanced reporting by the media. In addition, it permits the attendance of international and local observers.

Over the past several months the office of the Attorney General has met with members of the public in open meetings across the country to discuss the provisions in the new Act.

The International Business Corporations (Amendment) Act 2002

The second piece of legislation was The International Business Corporations (IBC) Act, which had previously been amended in April of this year. At that time the Financial Services Regulatory Commission (FSRC) was formed in order to expand the functions of the International Financial Sector Regulatory Authority (IFSRA). This new amendment further strengthens the regulations of the financial services sector in Antigua and Barbuda.

The amended law ensures that anyone wishing to work as a registered agent in Antigua and Barbuda must be licensed by the FSRC. It also clearly defines the term “non-bank financial institution” as such businesses now fall within the scope of the FSRC since the April revision of the Act. These businesses include insurance companies, cooperatives, credit unions, casinos, lotteries and money remittance entities, including the General Post Office and Western Union. Additionally, the legislation allows penalties to be changed to companies which fail to file returns or other required documents on time.

Most significantly, the Act abolishes the 3% tax that was imposed on offshore banks and interactive gaming institutions in 2001. Licensed financial institutions will no longer have to pay the tax. It is hoped that this will attract more investment into the country and boost the economy.

The passage of this legislation is part of Antigua and Barbuda’s continuing commitment to be at the forefront of international regulation of the financial services sector.

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Hospitality industry workers to receive training

Hotel and restaurant employees will have the opportunity to receive skills training in the areas of guestroom attending and restaurant service through the Skills for Success programme hosted by the American Hotel and Lodging Association (AH&LA), the Ministry of Tourism and the Antigua and Barbuda Tourism Development Programme.

This training will lead to employees being AH&LA certified in internationally recognised occupational standards in housekeeping and restaurant server skills.

Co-ordinator of the programme, Lorraine Headley commented that, “The two four-day programmes will teach participants the detailed steps, methods and industry tips for providing a superior product to global standards in the very critical areas of quality of guest rooms and the serving of food. ”

She added that, “This idea is to provide employees with exposure to international best practices in terms of quality and efficiency allowing them to provide a better service and a sense of achievement in completing their daily tasks. We also thought it necessary to provide workers with the opportunity to receive international certification for their efforts, which can serve as a foundation for further career development in the industry.”

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BA to fly every day to Antigua from this winter: Total UK flights to Antigua to rise to 12 a week

Antigua and Barbuda’s High Commissioner in London, Sir Ronald Sanders, has announced that British Airways will be flying every day to Antigua from 28th October 2002.

The High Commissioner disclosed that British Airways has revealed that it will increase its flights from five per week to seven, serving Antigua and Barbuda everyday.

Sir Ronald said, “This is great news from British Airways demonstrating its confidence in Antigua as a major destination and as a hub for nearby Caribbean islands. It also shows that our increased marketing effort in the UK is paying dividends.”

The decision by British Airways to increase the number of its flights means that Antigua and Barbuda will benefit by 12 flights per week from the UK. These are made up of 7 by British Airways, 2 by Virgin Atlantic, 2 by BWIA and 1 by Air 2000.

“Antigua and Barbuda has never had 12 scheduled flights per week from the UK. This development augurs well for our tourist industry and for employment for Antigua and Barbuda nationals”, Sir Ronald remarked.

Figures show that for the first five months of this year, January to May, visitor arrivals by air to Antigua from the UK have increased by 7.6%.
The High Commissioner observed, “We have to recall that last year’s figures were before September 11th. This makes this year’s improved performance even more significant because it has come in the wake of a downturn in worldwide tourism”.

Sir Ronald added, “Our strategic alliance and cooperation with major airlines and tour operators in the UK are paying off for the benefit of the people of Antigua and Barbuda, but I repeat what I have said before: to sustain this, we have to improve the facilities at the Airport urgently”.

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Prime Minister Lester Bird reviews investment opportunities in London

Antigua and Barbuda’s Prime Minister, Lester Bird, met investors in London on 26th July to review the status of current investments and to consider new opportunities in the twin-island State.

Mr Bird met Dato Tan Kay Hock, the Malaysian entrepreneur, who undertook to construct a large Asian Village tourist resort on Guiana Island. The project ran into financing difficulties in 1999 when the Asian Capital Markets collapsed and the currencies of several countries were devalued with Malaysia imposing restrictions on the movement of capital from the country.

Recently, the Prime Minister has stated that the Government is unhappy that Dato Tan has retained control over Guiana Island and adjacent lands while while there has been no movement on the project.

In the London meeting with Prime Minister Bird, the Malaysian businessman has proposed new financing arrangements for the project including a 15% equity by the Government at no cost to the Treasury. The inclusion of the Government in the ownership structure would help to attract certain concessionary financing.

Mr Bird has given Dato Tan three weeks in which to place a firm proposal before the Government. The Prime Minister said that “If, after review by the government’s technicians, the financing proposal appears sound, Government will work with Dato Tan to get the project off the ground”. Mr Bird declared, “The project, as originally envisaged, still remains a sensible way in which to grow the Antigua and Barbuda tourist industry, and I want to give Dato Tan every help to perform”.

But, Mr Bird added that his Government “will not wait forever”. He said, “If within a reasonable time, the project does not get underway, Government will move to recover the land and to develop the project elsewhere”.

The Prime Minister also held discussions with Pat Doherty, the Irish property magnate, who is developing the Carlisle Bay resort on Antigua. Construction of the property is progressing well and Mr Doherty revealed that he has recruited a top UK Hotel operator to manage the Resort. Carlisle Bay is expected to open its doors this winter as a top-class hotel equal to the most majestic in the world.

While in London, Mr Bird also reviewed a proposal from a German group of financiers who are interested in building a new hotel in Antigua. The Group has already begun discussions with Kempinski, a large European luxury five-star Hotel Chain, to manage the proposed Hotel.
The Antigua and Barbuda office in Germany and the High Commission in London are handling the ongoing work on the potential German investment.

The Prime Minister also received a proposal from an Australian firm backed by a multinational bank to establish one of the largest Internet Gaming operations on Antigua. The firm is negotiating the purchase of two Internet Gaming operations in Antigua and another two in the Dominican Republic to combine them as a single entity headquartered in Antigua.

Internet Gaming accounts for significant high-paying employment in Antigua particularly among young people, and Mr Bird is keen to attract large operators to the Antigua and Barbuda jurisdiction. The Australian company says that its “corporate strategy is to establish a world class and leading entity in the on line gaming and wagering sector that caters to a global market of millions”.

The Antigua and Barbuda Prime Minister said that he could not disclose further details about the German and Australian companies and their proposals “because they are still negotiating terms and conditions”.

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EMS better equipped to serve

The Emergency Medical Service (EMS) is now better equipped to provide emergency response services to the nation, with the arrival of two more ambulances.

Health Minister, John St. Luce, explained that two ambulances returned to the country last week following repair work in Miami, bringing the EMS fleet to seven. He outlined that the improved emergency response fleet will ensure that ambulance service is available to the entire country within thirty minutes from strategic points.

“There are two ambulances that had been sent to Florida about two years ago because of transmission problems. They are now repaired and sprayed over and are now functional,” said Minister St. Luce.

The Minister also noted that the other clinics being built as part of the government drive to improve the health care system in Browne’s Avenue, Johnston’s Point and All Saints are nearing completion and will be fully ready in a month’s time

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Court battle continues between leadership and branch

The leadership of the opposition United Progressive Party and the dissident constituency branch of St. John’s Rural East, will be in court again to seek a judicial interpretation of a consent order agreed to between both parties.

Justice Ian Mitchell made a consent order that if more than 50% of the financial membership signs the requisition requesting a nomination process, the executive should issue directions to the St. John’s Rural East constituency branch.

However, on 31st July, Attorney Ralph Francis, counsel representing Valerie Samuel, party branch chairman of St John’s Rural East served an affidavit on the respondent.

Samuel supports the nomination of Melford Nicholas to contest the seat on behalf of the UPP.

In light of this last minute service by Attorney Francis, Justice Mitchell felt that he needed more time to read the affidavit, as would the respondent and his lawyer, and as a consequence he adjourned hearing until 12 August.

With regard to the consent order agreed to between both parties, Attorney Derrick stated that a requisition signed by over 50% of the financial membership of the constituency branch was received by the central executive.

“In accordance with that consent order, a directive was sent to the constituency branch of St. John’s Rural East to have a nomination process not later than 24 July. The constituency branch did not comply with the order because they felt that they interpreted the order in a different manner and as a result of that we are now before the judge to find out which interpretation is the correct one,” Derrick explained.

The UPP’s Rural East party chairman agrees there is a difference of interpretation of the consent order, but their position is that Melford Nicholas is the party branch nominee.

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