And moving now from the public Port Authority to the private Port of Belize, two related but completely distinct entities…the news tonight about the Port of Belize is that the Prime Minister is keeping a close eye on things.
The PM says he's been in touch with the Ashcroft Allied lending group - which has commercial banking arrangements with the Port - but apart from hoping for a soft landing, there's not too much he can do:..
Prime Minister Dean Barrow
"Well we have an interest in what happens at the port generally and when the first rumblings appeared I spoke to both Mr. Espat the current owner and Mr. Guiseppi who is the chairman of the Belize Bank group. I was concerned that nothing be done to disrupt the port activities certainly over Christmas and early into the New Year. Now I've also indicated to Mr. Guiseppi that if a time comes when they have to exercise their commercial rights Government certainly can't interfere with that. The loan arrangements are such that certain events can trigger the appointment of the receiver, there is no way on earth that government will seek to interfere to prevent that but, if it comes to that I said to Mr. Guiseppi, I would imagine that before you move you would get in touch with the union that represents the port workers and you would let government know, you will take the sorts of steps that can minimize the degree of disruption that a transition will inevitably cause."
"Short answer to your question, we are very concern, we are holding a keen watching brief, but I don't expect anything to happen until the Christmas season has past and thereafter if something does happen I imagine that we will be given the kind of notice that allow us again to consider our options, such as they are given that ultimately it is a private contractual and banking relationship."
In a letter to this newsroom earlier this week, the Port has bristled at our suggestion that some kind of invasive action by the bank is imminent, but, as indicated by the Prime Minister, it may be somewhat of an inevitability, unless some last ditch alternate arrangement can be worked out.
PM to IMF: Go Fly A Kite
The IMF Staff report for Belize was released 10 days ago. It was generally favourable but one thing that caught everyone's attention was the recommendation that the Government raises additional revenues by gradually raising the GST rate to 15 percent which is the regional average.
Well, today the Prime Minister just about exploded when we asked him if it was being considered.
Jules Vasquez
"The IMF report is out and they are recommending many things but among them are that Belize needs to its GST in line with the rest of the region and raise the GST to 15%. Are you inclined to do that or may you be force to do that?"
Prime Minister Dean Barrow
"How can they force me? The IMF can cry until the cows come home. Absolutely not, I reject that out of hand. The only way the IMF can force me to do anything is if I need to borrow money from them, if I need to enter into a standby arrangement and I absolutely do not need to do any such thing, so the IMF can go fly a kite."
"What kind of nonsense is that? Because other people are 15% we must be 15%. They are 15% because of their own circumstances. Let me not get upset. This is Christmas time but the IMF is being ridiculous and I reject them out of hand."
Alternately, the IMF has recommended that Government could fully phase out the 2010 tax concessions - which, we expect, will be rubbished with the same contempt as the 15% GST recommendation.
