New policy document to shape future TCI economy

(CNS): As controversy mounts in the Turks and Caicos Islands over the introduction of VAT, officials there have published a new Green Paper, described as the beginning a new economic development strategy for the country. The Interim Administration said the document drafted by the interim government’s finance ministry will kick off the public consultation period. “The Green Paper recognises that the TCI has real potential for economic growth,” said TCI Governor Ric Todd. “It also recognises that in order to achieve and maximise this growth, the way that things have traditionally been done here may need to change; these issues require public debate.”

Listing the advantages of TCI, from its use of English, its stability and safe friendly environment to its use of the US dollar and short flight from the American markets, he said the economy was very good in terms of tourism.

“What can we do, not only to build on this success but also to encourage the growth of other industries, agriculture or financial services, to name but two?” Todd asked ahead of the public consultation.

Facing a number of challenges since the British imposed direct rule three years ago amidst a corruption scandal involving the previous administration, the people of the islands will be electing their own government again in November. However, changes to the constitution have ensured that the Britishwill still be keeping a tight hold of the public purse strings and have recently proposed introducing VAT, which is being strongly opposed by the business community.

Todd said the economy was in much better shape than it was when the Interim Administration took over in 2009, but he said he recognises that not everyone on the islands may feel that they were benefitting from these improvements.

“The draft strategy recognises that there is probably too much bureaucracy in the TCI and that this hinders business development. Do we require so many regulations, restrictions, permits and licences? One of the advantages of VAT in that it will replace six different sets of tax legislation and reduce customs duties, making that aspect of the system easier to comprehend.”

Todd also pointed to the need to look at work permits and immigration and the need to balance the encouragement and protection of employment rights and opportunities for TC islanders with the overall growth of the economy.