Statement by Premier Honourable Ralph T. O'Neal, OBE "Cabinet Decision to Defer Implementation of Harbour Fees"

Good day ladies and gentlemen,

~~Adz:Left~~ROADTOWN, Tortola-Today I would like to update you on Cabinet’s decision to defer the implementation of the harbour fees for vessels entering or remaining in the Territorial waters or those vessels using a BVI Ports Authority facility.

It was recently announced via a GIS Press Release dated Tuesday, June 10, 2008 that the Government approved a BVI Ports Authority Regulation and that as a result, the Authority will enforce new harbour charges effective Tuesday, 1st July, 2008.  After representations were made to Government, Cabinet agreed to extend the enforcement date to Tuesday, 15th July, 2008.

Ladies and gentlemen, under the new fee structure, vessels would be charged $1.00 per foot, 75 cents per foot and 50 cents per foot of the vessel overall length for the first, second, third and subsequent days respectively.

Needless to say ladies and gentlemen, Government received a great number of complaints and representation from local associations and maritime agents, the yachting industry and yachting agents in America and Europe.  The BVI Tourist Board was also inundated with complaints and online representation as well as the Premier’s Office.

As a result, Cabinet convened a special meeting on Monday, 14th July to discuss and review the recent amendments to the British Virgin Islands Ports Authority Regulation, 2007.

Cabinet reviewed the new fee structure and also we considered the cost implications of the charges when compared to the rising cost of fuel.  In addition, Cabinet determined that if the BVI were to implement this new fee structure, the Territory may have become the most expensive destination in the world for mariners and yachts. 

In other words, we may have lost our competitive edge and may not have maintained our status as a very attractive yachting destination. After all the BVI has been known as the sailing capital of the Western Hemisphere, if not of the world, and therefore it was extremely important for Cabinet to consider the representations that were made, as the Cabinet will do for any representation that the people will make.  It must be remembered that the yachting industry contributes to the economy of the Territory and the yachtsmen enjoy our waters from Anegada to Jost Van Dyke.  Cabinet has therefore decided that implementation of the fee structure should be deferred indefinitely.

Ladies and gentlemen, Cabinet has also agreed to the establishment of a seven-member focus group and a Cabinet committee tasked with undertaking a review of the harbour fees.

The composition of the focus group is as follows:

1. Mr. Peter Haycraft – Chairman
2. Mrs. Francis David – local agent
3. Mr. Terrance Ford –Ag. Chairman of the BVI Tourist Board
4. Mr. Vincent O’Neal – Managing Director of the BVI Ports Authority
5. Mr. Wade Smith – Comptroller of Customs
6. Ms. Lorraine Stoutt – Caribbean Transport
7. Representative–BVI Chamber of Commerce and Hotel Association  (BVICCHA)

The focus group is expected to submit its report to Cabinet by September, 2008.

Given the global economic conditions, it was imperative that Government take steps to protect the sectors that have become a major economic provider for so many families.

As the BVI gets ready to host the second annual A.H. Riise BVI Billfishing Tournament on 19th July, we also recognised that the fees would have been a deterrent for the some 45 plus yachts already registered to participate in this international event.

Let me on behalf of my Government apologise if you have been adversely impacted in any way since the announcement that the new fee structure would take effect.

Ladies and gentlemen, I crave your indulgence as the focus group reviews the fee structure.  I do believe that the focus group will examine this matter carefully and I wish to thank them for agreeing to serve.  I assure you that Cabinet will review their report with care and speed to ensure that we implement a fair, balanced and equitable one. 

Government will keep you abreast of further developments in this area.  I thank you very much for listening.