Last night, we showed you the first part of our interview with Michael Singh, the CEO of the Ministry of Trade, where he explained that Norwegian Cruise Line's Harvest Caye Port project got all environmental clearances it needed. With the Environmental Compliance Plan completed, the project moves on the next phase where Cabinet will decided on a final agreement on the social and economic guidelines that the Company must adhere to so that they can get the final go-ahead.
As we've told you, the Belize Tourism Industry Association has been against the plan claiming that it is not environmentally or economically beneficial to the country. They will challenge the Department of Environment's decision to give the project environmental clearance in court by way of judicial review proceedings. The President of BTIA's Placencia chapter has also offered strong resistance to the project on economic grounds. Yesterday, while had the opportunity, we asked Singh to address them, given that he has been present as a trade and investment promotion representative ever since the project first emerged.
Here's our conversation with Singh on those economic concerns:
Daniel Ortiz
"25% of the employment is being asked to be reserved for candidates that NCL think its best. Now their concern is that those will all be fitted with international employment when they may be Belizeans who could fill those posts. How do you address that with them and NCL?"
Mike Singh - CEO, Ministry of Trade
"Very simply if you think about it, we are not foregoing the need for anybody to apply for a work permit and the labour laws will still apply. What we've said to NCL is that in cases where there is a need for technical workers that may not be available in Belize which is the way our labour law in written - that we would not be against having up to 25% of the workers of they are technical and that employment is not available in Belize that it would be allowed. That is a push back from what the labour law says; the labour law actually allows you to do 100% of technical people if they are not available in Belize. I think it's been mis-stated and I think it's been misunderstood what the intention is. Now NCL wants to hire Belizeans, their only concern why they ask us to put that in there is that in case they can't find the talent that they need for specific technical work that may be needed on the island that they would want the option to bring in employees until they can train Belizeans to take on that employment."
Daniel Ortiz
"The project will allow for a duty free emporium on the site itself which the BTIA is saying will exclude Belizeans persons of crafts from presenting themselves and their produce and their items for purchase."
Mike Singh - CEO, Ministry of Trade
"Again incorrect assumption. The MOU states that we will permit duty free shopping as long as Belizean companies are given equal opportunity to put duty free shopping. In other words what we are trying to avoid is what we have at the FSTV where every duty free shop there is Diamonds International and they have very clearly stated to us that they do not want that type of a project. As a matter of fact they are now working with us at the small business development center to create a pavilion for small Belizean businesses. They are also approaching food and beverage businesses in Belize to try to come up with concepts that are purely Belizeans operated by Belizeans, so the idea behind this project which we stressed very clearly with them is that we don't want it to be just another replica of FSTV or any other port where all you bring in are US brands or you bring in foreign brands. We are helping them to develop the local brands."
Reporter
"The head tax agreement: I've been getting conflicting reports one of which says that the only company which stands to benefit from that head tax agreement is NCL."
Daniel Ortiz
"Which they are saying will recoup its entire investment very short."
Mike Singh - CEO, Ministry of Trade
"The head tax issue is an issue that is almost an industry standard where if we are competing with other countries you will find that in reality what Belize is actually keeping of the head tax is more than most countries keep. The lines look at the head tax almost as an incentive for them to come in because they look at it as a means where they are operating a port. Remember did not have to build this port, so we've invited a foreign investor to come in and build a port and that port comes with a certain costs - we are giving them a concession to operate that port under a license. Any port will have a port charge. In other words if I were to invite an investor to come in, I'll give you an example; the Port of Belize, which is own by a non-government entity - that port charges port fees to cargo. Those port fees go directly to that port, nothing comes back to the government because that is where their revenue stream is - it comes from port fees."
The final agreement on the social and economic terms, should be completed for Cabinet to review at its next sitting. That meeting is scheduled to happen in the next 2 weeks.
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