Roadtown, Tortola - Mr. Speaker, the Government of the Virgin Islands has repeatedly affirmed its commitment to ensuring that the Territory functions as a globally integrated and responsible financial services centre.

And we will provide further proof of this commitment later this week when I travel to the Hague in Holland for the signing of a Tax Information Exchange Agreement (TIEA) with the Netherlands. Mr. Speaker, this will be the 13th such agreement for the Territory, a significant milestone and one which illustrates our full commitment to ensuring transparency in the operation of the financial services sector and to the principles of good governance.

According to the guidelines provided by the Organisation for Economic Cooperation and Development (OECD) and the new international tax standard emanating from the G-20 Summit in April this year, jurisdictions are required to sign at least 12 TIEAs. The signing on Friday, September 11 will provide proof of the BVI’s commitment to not simply achieving this minimum standard but surpassing it.

Mr. Speaker, it was a gratifying experience on August 13 when I signed the 12th TIEA with New Zealand, allowing the BVI to reach the OECD “white list”, crossing that threshold to join the top tier of jurisdictions which have substantially implemented the OECD standards on the exchange of information.

Honourable Members would recall on that occasion I gave assurances that we will not stop there but rather, we will continue to pursue negotiations with a view to signing similar agreements with other countries. While we will primarily pursue these agreements with those countries which are members of the OECD, we are also willing to enter into similar agreements with other countries with which we conduct international business.

Already we are in the process of finalising a TIEA with Ireland and we expect that agreement to be signed in the near future. Additionally, we plan to begin negotiations with other countries including Germany and Mexico shortly.

Financial services as you are all aware generate considerable revenue for the local economy. As a premier international financial services jurisdiction, the Territory must jealously guard this reputation.

The highly competitive nature of the environment in which we operate coupled with the downturn being experienced in the global economy, makes it even more imperative that we do all in our power to maintain and further improve our standing in the international arena. Mr. Speaker, the signing of these agreements is one such way to achieve that.

I cannot emphasise enough the commitment of the BVI to transparency in the operation of the financial services sector and our willingness to work collaboratively with countries that share the same outlook. These Tax Information Exchange Agreements underscore this commitment as they provide for the exchange of information between signatories based on requests relating to specific criminal or civil tax matters that are under investigation.

Mr. Speaker, it is this Government’s vision that our financial services sector will maintain its leadership as a world-class jurisdiction and continue to be a viable part of the local economy. This is not an isolated undertaking but one which encompasses various factors, as is evidenced by the recent passage of the Financial Services Commission (Amendment) Act, 2009 by this Honourable House at its last sitting. The amendments are designed to further streamline the regulation and supervision of the financial services industry, which will further bolster our efforts to increase transparency and compliance with international standards.

Thank you Mr. Speaker.