Premier Dr. Orlando Smith held a press conference on Wednesday to field questions from the media about his recent Budget Address and other topics, including tax and fee increases, the cruise pier project, and the planned airport expansion.

Though Dr. Smith didn’t provide details on how much certain taxes and fees will be raised – he said in his Budget Address that the increases are expected to yield an additional $20.5 million – he did elaborate on why he believes the increases are necessary.

The premier explained that the government is losing out on millions of dollars in revenue due to residents not paying taxes, agreeing with a reporter that the losses are “significant.”

He also said that work permit fees cost as much as $7,000 in other Caribbean jurisdictions, which is $6,000 more than the maximum $1,000 fee in the Virgin Islands.

One fee increase that won’t be felt any time soon is for water usage, as Dr. Smith backtracked from his statement in the Budget Address that such fees will be changed to be “more closely aligned with the cost of purchasing and distributing water.”

“Water rates will not change,” he said on Wednesday.

The premier added that the fees and tax increases will be primarily directed towards those in the upper income bracket, though he did not say where the line will be drawn.

“The details are being worked out,” he said.

Belt tightening

Since taxes and fees are soon to be increased, what the government will do to tighten its belt was also discussed.

One spending cut will affect the grand opening of Tortola Pier Park on Tuesday, which will not include fireworks despite advertisements that stated otherwise.

The fireworks display last April when the extended pier was unveiled cost more than $43,000, and Dr. Smith said at the conference that no fireworks will be used Tuesday because government is “looking at prudence as we go forward.”

Pier audit

The premier also gave a brief update on the audit that is to be carried out on the cruise pier project.

Dr. Smith had said in his Budget Address that an international company has been chosen to conduct the audit, but at the press conference he declined to release that firm’s name because a contract has not been signed.

He said, however, that the firm will be identified as soon as the deal is finalised.

The premier was also asked when he learned that the development would cost far more than the original estimates, given the fact that he gave an outdated estimate of $57 million in the House of Assembly last March (the project is now estimated to cost around $83 million).

“I can’t give you a timeline, but obviously when I gave that answer [last March] it was based on the original schedule of fees,” he said. “That was done before BCQS – before I knew BCQS had given a different set of fees.”

Airport project

Finally, Dr. Smith fielded questions about the planned airport expansion.

He was asked whether a business case has been conducted on the proposal – as is required in the Protocols for Effective Financial Management – and he said one was conducted over the last six months and is complete.

Dr. Smith said he did not know exactly when the business case was completed, or by what firm. Asked whether the study will be made public, he said, “I’m sure it will be at some point.”

Governor John Duncan told the Beacon on Jan. 26 that a business case had not been completed.

“Developing a business case takes time, and the details are still being finalised,” Mr. Duncan said at the time.

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