Government hopes to raise at least $8 million per year to mitigate the effects of climate change in the territory through education, research and other steps carried out under a planned Climate Change Trust Fund Act.
According to a December draft of the law, funds would come “predominantly from external sources.”
Topping the list is a tax for overnight visitors that will vary based on the “carbon footprint” of the hotel, yacht or villa in which the visitors stay. For example, guests on a charter yacht that is dependent completely on fossil fuels and doesn’t take any water or energy conservation measures will be charged $20 per person. If the vessel were run entirely on renewable energy, however, there would be no fee.
The proposed fund will be managed by a board of trustees who will be charged with ensuring that the money collected is disbursed fairly and spent on priority projects that will help the territory weather climate change, according to government’s Climate Change Policy Paper.
While applauding the effort to protect the territory’s environment, some residents warned that the proposed fee structure may be overly complicated and could have detrimental effects on certain industries if not carefully revised.
Stakeholders’ meeting
Marine industry stakeholders were invited to a Jan. 14 meeting with Ministry of Natural Resources and Labour officers to discuss the bill. Attendees said they were glad to be consulted on the bill so early in its development, and that they support creating an environmental fund for the territory.
“We were all in agreement that it’s a great idea,” said Sylvia Driver, director of Horizon Yacht Charters, who attended the meeting.
However, attendees also had concerns about the law’s administration.
“There’s lots of avenues for collection, which makes it more expensive to administer,” Ms. Driver said. “You don’t want to spend 80 cents to collect a dollar.”
The bill calls for a sliding scale of per-person fees for dive boat operators. It also includes a fee to be collected at the territory’s ports of entry, and an “energy surcharge” to be paid by visiting cruise ships that receive water and sewage services.
Another cost to consider with the planned fees is the territory’s reputation, said Charter Yacht Society Chairwoman Ruth Ross.
“Nobody disputes that the environment needs to be protected,” Ms. Ross said. But, she added, “We don’t want the territory to be seen as a tax-heavy place.”
That reputation could drive potential guests somewhere else, Ms. Ross said.
Competition
Dive Operators Association President Casey McNutt, who also attended the meeting, agreed.
“We’re not the only pretty place to go to,” Ms. McNutt said, adding that a $10 per dive fee represents about a 10 percent increase in the cost of a dive. “That’s a huge challenge in a place where the cost to do business is already a little higher.”
Like the others interviewed for this story, Ms. McNutt is pleased to see government taking action to preserve the territory’s natural environment, and she hopes the momentum won’t stop with the fund.
“It’s admirable what they’re trying to do,” she said, adding, “There are things that can be done now.”
For example, she explained, officials could boost patrols at sea to make sure that existing environmental regulations are enforced, or turn popular dive sites into protected parks.
Seeking to address the high cost of repairing reef damage caused by boats or anchors, the bill also calls for a fine for anchoring on reefs or grounding a vessel at the rate of $10,000 per square meter of damage caused.
Another concern shared by those interviewed for this article is that the fund places most of the burden on visitors.
“We want it to be equitable. We don’t want it to be just tourists; we don’t want it to be just charter guests,” Ms. Ross said, adding, “If everybody is chipping in then maybe it’ll make everybody more aware of the problem.”
Many of the proposed fees or increases, however, will cost residents. To “encourage conversion to cleaner fuel or blended biofuel,” fuel suppliers will pay a one-cent-per-litre green energy levy.
A “gas guzzler” tax will cost owners of vehicles that don’t get at least 20 miles per gallon $30 per year. Vehicles that emit visible smoke will cost owners $20 per year.
The fees for seabed leases are also set to increase, as are those for jetties and land reclamation if the applicants are non-belongers, according to the bill.
In addition, all development applicants will have to pay more if they do not submit a “vulnerability assessment and risk management plan prepared by a qualified and accredited engineer registered with the Ministry for Natural Resources and Labour,” the bill states.
Similarly, the fees for planning and building applications are set to increase for those who don’t submit a vulnerability risk assessment.
Attempts to reach MNRL officials were unsuccessful.
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