Even if you don't know what a definitive agreement is - for sure you have heard of THE Definitive agreement. It's been the subject of so many news stories and so many television ads.
But, in mid - June, the Prime Minister tore it up in a dramatic show at the House of Representatives. Tonight, we have a clearer idea of what will replace it. It's a quite unusual piece of legislation and Jules Vasquez has a look at a draft copy tonight:
John Briceno, Prime Minister
"Well, the portico legislation...ahm...we're presently, I think they're still working on it and to see what, hem, what can be done to be able to present to Cabinet."
What's being done is this draft - still in the strikeout stage - but it shows the major thrust of the proposed legislation.
The BELIZE CRUISE SHIP DOCKING FACILITY AND TOURISM VILLAGE DEVELOPMENT BILL is created to provide "for the development of a Cruise Port Docking Facility and Tourism Village; and to provide for certain exemptions and benefits and for the levy of a Cruise Ship Facility Fee"
The bill provides for a "Fiscal Incentives Order" - which entitles the developer to large tax exemptions.
But, not any developer, one who meets the "Investment Requirements", quote, "of not less than Two Hundred Fifty Million Dollars ($250,000,000) - we assume US dollars.
And how many proposed ports fit in that category? Presently, only one...Portico - whose investors say they propose to spend 350 million US Dollars.
And to get this precious fiscal incentives order, the developer must apply to the Executive Director of BELTRAIDE who will - if the project meets the requirements - submit a recommendation to the Minister - who would then issue that Fiscal Incentives Order.
That order exempts the Developer, its Funders and Contractors to be exempt from any taxes, duties or imposts and from what might be called future shocks.
The most interesting clause is one that seeks to insulate the developer from what a future government - say one led by Shyne Barrow might do. It says "Where tax laws may be amended and/or enacted from time to time that contain any provisions the implementation of which would directly adversely affect the Project's economic benefits under this Act, the Minister will "ensure that the amended and/or enacted tax laws shall not apply and have no force or effect with respect to the Project (including the Developer, its Funders and EPC Contractors) retroactive to the date of such amended or enacted tax law."
It's basically an immunity against the democratic process - guaranteeing the developer that a future government won't move the goalposts as Barrow has threatened explicitly to do.
As regards the head tax, the agreement refers to a Facility Fee of not less than US$7.00, which shall be shared between the Developer and the Government of Belize with US$2.00 being promptly remitted to Developer and the remaining US$5.00 being paid as follows:
The developers laud this as a boon for Belize - because they project to receive 1.2 million guests a year and say that the amount thus remitted to government will be 6 million dollars annually.
Like we said - this is just a draft - and, best reports suggest it will NOT be ready to be tabled in the house of representatives at its next meeting on October 13th.
