Since 7NEWS broke the story of the Carnival contract on October 1st, the public release of the secret contract has fueled an often torrid national debate, specifically about Carnival and generally about cruise tourism.
One man who hasn't spoken though is the one who signed the contract. Prime Minister Hon. Said Musa has silently watched as state secrets have become public grist for the evening news and the morning talk show circuit. Today though he broke the silence when he held a tight 25 minute press briefing where he told us that the Carnival agreement is sound in spirit, but, in letter, it has a few kinks.
Hon. Said Musa, Prime Minister
“On the Carnival agreement I am satisfied that as a whole it is a good agreement. It is a good project. There are a few issues that we believe need to be clarified, modified if you like, and we are now in discussions with Carnival to resolve those matters.”
Jules Vasquez Reporting,
Those matters include the fact that there is no ceiling on the number of visitors that Carnival can bring, and also that Carnival is not compelled to hire any Belizean labor. But Musa defended that position.
Hon. Said Musa,
“I am fully satisfied that the agreement does not in anyway give Carnival any carte blanche to bring in foreign labor to do work that Belizeans can do. But certainly in terms of general labor and in terms of just regularly skilled people in the construction of the facility and in the operation of it, I am fully satisfied the agreement clearly contemplates that.”
Jules Vasquez,
However, it states flatly that Carnival is under no compulsion to hire Belizean labor. The government can make no compulsion on it to hire Belizean labor.
Hon. Said Musa,
“There is a difference between saying the government will not require…meaning the government can’t say Carnival you must hire Jules Vasquez. That is the spirit behind that clause; that we can’t tell them who they must hire. That we can’t require them to hire ‘so and so’ and that is clearly to do away with any cronyism or anything of that sort.”
That’s the Prime Minister’s interpretation, but the wording of the contract doesn’t seem to be so forgiving. It says that “the government will not require the use by Carnival...of any Belizean entities, nationals or government agencies...in connection with any aspect of the project.” And its clauses like those that have forced GOB back to the negotiation table even after the contract was signed.
Jules Vasquez,
Has not your Cabinet made a decision to request that certain terms such as the no ceiling on the number of visitors which it can bring…has the Cabinet not requested that that be renegotiated? So if they have made such a request, how can you then say that at the date of signing it was done with the approval of the Cabinet?
Hon. Said Musa,
“It was done with the approval of Cabinet. When we reviewed the contract because of certain concerns raised subsequently, I decided to take the matter to Cabinet and I did in order to have these matters cleared, the air cleared on these issues. Its not a question of Cabinet saying that the contract must be re-negotiated, I need to make that absolutely clear. It’s a case of Cabinet agreeing with a proposal that we should have two or three matters, at the most, in the contract clarified. That is all.”
Jules Vasquez,
Had Cabinet seen the contract at the date of signing?
Hon. Said Musa,
“Yes. Cabinet has seen the contract.”
Jules Vasquez,
At the date of signing?
Hon. Said Musa,
“No I wouldn’t go that far to say that.”
But that’s what the contract says. Page 2 states, “GOB has agreed pursuant to a decision the Cabinet of Belize made on 16th March, 2004.” Of course, regardless of what Cabinet did or did not decide, the agreement shows that Musa had already signed a Memorandum of Understanding with Carnival on December 19, 2003. But perhaps the biggest problem with the contract is that government breached another with the Fort Point Tourism Village when it signed it and now has to make up to avoid a lawsuit. How it will make up has been a matter of contention.
Jules Vasquez,
As I understand it, the compensatory agreement states that they are guaranteed head tax for 900,000 visitors a year at US$4 each. If they do not bring that in, the government out of the consolidated fund one assumes will compensate them for the balance.
Hon. Said Musa,
“No. That is not quite correct. An agreement, a re-negotiated agreement, has been made with Royal Caribbean whereby they are compensated for what they would have gotten had this facility not been built.”
“They will be insured that if we say have 2 million passengers arriving, its estimated that they could possibly bring up to a million; possibly. But they are guaranteed in any case that if we have 2 million up to 925,000 they will get the $4 head tax."
Jules Vasquez,
But suppose only 500,000 land there?
Hon. Said Musa,
“Then they will only get up to 500,000.”
Jules Vasquez,
And if the other 1.5 million land at Carnival?
Hon. Said Musa,
“Still it would be 925,000. That’s the amount.”
Jules Vasquez,
So then we have to pay to compensate the difference?
Hon. Said Musa,
“The difference yes.”
Jules Vasquez,
The government would have to do this?
Hon. Said Musa,
“That is so.”