Red tape must be cut across the government to boost local businesses and attract other investment in the territory, according to Financial Services and Economic Development Junior Minister Lorna Smith.

Ms. Smith told the Beacon last week that legislative amendments and other reforms currently “in the pipeline” are designed in part to streamline labour, immigration and trade processes.

“Red tape will be cut through the creation of a ‘one-stop shop,’ Ms. Smith stated on Tuesday. “So while the application is being made, all the ‘back-end’ work will be done without having to go to two or more agencies. It’s a work in progress that is being given high priority.”

The comments came after the junior minister said in a Facebook video posted last Monday that bureaucracy and approval delays have been proving an obstacle to faster economic development in the territory.

“There continues to be significant bureaucracy that we would like to see reduced so that people can move quickly to invest in the territory,” she said.

Ongoing dialogue

To that end, Ms. Smith said, dialogue is ongoing between business leaders and the government agencies in charge of trade, immigration and labour.

“We had a meeting with the financial services industry and these three departments to talk about how we could speed up processes; how we could reduce the red tape that exists,” she said.

Ms. Smith acknowledged that such issues are affecting other industries as well, and she said officials from the three agencies will continue meeting with representatives from various sectors as they work to ease the process of doing business.

Meanwhile, the Economic Advisory Committee by appointed Cabinet last September is expected to report soon on measures aimed at boosting business activity, according to the junior minister.

Investment Act

Also in the works are amendments to the Investment Act 2021, including plans to update incentives and streamline concessions given to businesses looking to invest in the territory, the junior minister said.

“We have to find a way to accommodate the needs of the BVIslanders and their involvement in business and make sure that we don’t hold up the grant of the pioneer status or the exemption from customs duty,” she said. “We have to find a way to make sure that this is done quickly, and we’re doing so now.”

She added that a revised investment framework will also help attract new developments beyond projects already proposed such as Nanny Cay, Prospect Reef and Norman Island.

“With a new and improved Investment Act, … we expect to be able to go out and encourage and invite other investors,” she said. “And we will do so by offering attractive incentives to these people so that they could be encouraged to invest in the Virgin Islands.”

Governor Daniel Pruce previously mentioned plans to amend the Investment Act last month in the Speech from the Throne, which set out the legislative agenda for the current session of the House of Assembly.

“The functions of investment promotion and trade and export will be transferred to an autonomous body led by a board reporting to the minister,” Mr. Pruce said in the Jan. 13 speech. “This transition will be accompanied by a comprehensive restructuring of the trade department to ensure efficient delivery of services.”

FATF reforms

Last week, Ms. Smith also said the government is determined to see the VI removed from the Financial Action Task Force’s grey list of jurisdictions that need extra scrutiny by June of next year.

To that end, the government has been engaged in talks with FATF members over the issue since the territory was added to the list last June, according to the junior minister.

“That kind of engagement is very important as we seek to stay within the two-year timeframe for getting off the grey list,” Ms. Smith stated.