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Dean Barrow & Mark Espat Clash Over Tax on Telemedia
posted (December 11, 2008)

In terms of minutes of commercial time, it is probably the most highly publicized piece of legislation ever taken through the House of Representatives. We speak, of course, of the Income and Business Tax Amendment Bill of 2008 which will increase the business tax for phone companies from 19% to 24.5%. And today Telemedia – which is controlled by Michael Ashcroft related interests – had an unusual defender. PUP Deputy Leader Mark Espat who in June of 2005 derisively referred to Ashcroft as “Mr. Carlisle” and characterized him as a puppet master manipulating his puppet, then Prime Minister and Espat’s party leader - Said Musa. Here were some of Espat’s choice words in one of the most blazing rhetorical flourishes ever heard from the backbench.

[June 17th 2005]
Mark Espat, PUP Albert Area Rep.
"For 15 years now the Carlisle Group of companies, led by Mr. Michael Ashcroft and sporting various disguises such as the Belize Bank, the Belize Holdings and more recently, Mercury Investments, Pillow Talk and E-Com, has pursued a scorched earth campaign to gain control of Belize's most profitable public company - BTL.

Throughout this conspiracy to control and suck dry BTL and its Belizean consumers, it would appear that this government has been an all too willing accomplice. As it has appeared to the Belizean people, that I speak to, the relationship between the conspirator and his accomplice is a 'Master-Puppet' relationship."

But things change and today that Mr. Carlisle and BTL’s successor company were defended against the new tax by the same Mark Espat. He had to advance the party position because Party Leader John Briceno chose to recuse himself from the debate or the vote on the Bill because his family owns a phone company, one that will also be affected by the tax. So Espat stepped up, pinch hitting it was called and he had some pressing questions for the Prime Minister.

Hon. Mark Espat, PUP Deputy Leader
“In the instance of telecommunications, can the government give us an assurance that the suggestions by the telecommunication providers that this increase from 19% to 24.5% of gross earnings, can the government give us an assurance, can they give the Belize Communication Workers’ Union an assurance that this increase in tax will not result in the loss of jobs. Can the government give us an assurance, can they give the 200,000 users of mobile services, the thirty odd thousand users of fixed lines, the fifteen or twenty thousand users of internet services, can the government through the Public Utilities Commission or otherwise give an assurance that at the end of the day this increase in taxes will not mean an increase in rates?

But this issue of raising tax from 19% to 24.5% has to be done, should be done with assurances as it relates to these four or five important issues. And so the final question for the government is what is the endgame as it relates to telecommunications; what does it hope to achieve. Outside of answers to those stubborn questions, there is no choice from the Opposition but to oppose these taxes.”

Hon. Dean Barrow, Prime Minister
“He ends by telling us now that he has no choice but to oppose the Bill. I see that he seconded the reporting of the Bill to Parliament as amended.”

Hon. Mark Espat,
“Ask the Chairman.”

Hon. Dean Barrow,
“Now listen, I noh di look fi quarrel with you. If you want to quarrel I ready fi quarrel. So please I am telling you I looked at the records here and you did not raise any objections in terms of when the Committee finished its exercise and agreed on amendments, he did not suggest in anyway, in anyway that he was not satisfied with the amendments and in fact Mr. Speaker that he could not support the Bill with the amendments. So let me put that on record, it is here in black and white. If he is saying he didn’t see the minutes immediately after, he certainly saw them because they are included in the House papers and when he got up just now he didn’t raise a word of protest about the minutes reflect so I have to take it that minutes are accurate and he, and I put very very carefully, is in fact being true to form in terms of his party’s reputation for inaccuracy.

Where telecommunications is concerned your questions are legitimate. He wants to know whether I can assure the Belizean people that, if I can recollect all his questions, the telecommunication companies will not proceed number one to lay off people; he wants to know whether I can assure the employees of the telecommunication companies that there will be no layoffs. Well I don’t know how I can answer that. I can tell you why there ought not to be any layoffs and I can tell you what I propose to do if notwithstanding the fact that morally and economically there is no justification for layoffs, layoffs were to start.

But I can’t tell you what certainly one telecommunications company that you are accustomed to berate, that you are accustomed to criticize, that you are accustomed to denounce, will do. I don’t know if you’ve grown so close to them now; if you’ve so completely abandoned your former crusade against them, if you’re so in bed with them that you perhaps can tell me what the answers to the questions you’re asking me are in the regard.

You’re so close to these people now, whether you’re so much in bed with them that perhaps you knew or were told what buttons to push, what questions to ask, because you ask the questions as if you kind of already know the answers. If that is so, I wonder if when you get a chance you will enlighten us as to how you come to know both the questions and the answers. What is the endgame?

I’ve said you show the Belizean people those employee’s trust, you show the Belizean people those charitable trusts. Thereafter you ensure that the employees get representatives on Board of Trustees of the so-called Employee’s Trust. You ensure that the Belizean people get representatives on the charitable trust, you ensure that thereafter those charitable trusts in terms of the dividends that are paid, that those monies are employed for clear specific charitable purposes to benefit the Belizean people and I will withdraw my objections you know.”

Barrow ended by stressing that the door is open to talks with BTL, even on the Accommodation Agreement if those things he listed can be accomplished. To quote Michael Ashcroft, we’d expect that breakthrough on the same day when we can look out our windows and see a squadron of pigs flying past. The Bill was passed by the House and goes to the Senate next week.

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