A controversial plan to raise fees on foreign-based charter boats that operate in the Virgin Islands has been delayed after “intense” talks between Premier Natalio “Sowande” Wheatley and United States VI Governor Albert Bryan Jr., Mr. Wheatley said.
The premier made the announcement following “vigorous” discussions between the two leaders in Tortola on Friday in the wake of a heated public exchange which saw Mr. Bryan threaten damaging sanctions against the VI and the premier accuse the neighbouring territory of “bullying.”
After the meeting, both men tried to tone down the tension during a brief joint statement, to which the media was not invited.
“A lot has been said in the media back and forth, but I have always had faith and trust that when we come together we will have a nice joke and we will laugh together, and then we will have intense discussions,” the premier said. “Governor Bryan certainly represented the interests of the US Virgin Islands robustly, and of course I did the same on our side.”
However, Mr. Wheatley made it clear that no resolution to the dispute had been reached.
“While we were not able to reach any firm conclusions today, we made a commitment to go back and to be able to crunch the numbers to ensure that we maintain equity, and we made a commitment to equity in the relationship,” he said. “We will reflect the true cost of being able to do the business for BVI-based boaters and make sure that USVI boaters — that there is something that is fair in comparison to what our BVI boaters pay.”
In the meantime, Mr. Wheatley said he is pausing the Commercial Recreational Vessels Licensing (Amendment) Bill, 2024 — one of three bills the House of Assembly is considering as part of efforts to reform the marine industry.
“I made a commitment not to go back to the House of Assembly and pass this legislation until we came together once more to ensure that we are a lot closer together than we were previously,” he said. “So I would say it’s been a definite success. We would like to pass our legislation by June, which means we have work to do right away because we don’t want to keep our partners in the USVI waiting.”
VI industry
The premier added that the government needs time to address separate concerns from stakeholders here at home.
“We also have to speak to our own local boating industry,” he said. “So we are going to be expeditious, and we are going to do that right away.”
Mr. Bryan struck a similarly positive tone after the meeting.
“Coming here, understanding all the moving parts — the devil is always in the details — gives us a greater playing field on which we can make an agreement,” he said. “What we decided was to crunch the numbers and to get back to one another in terms of what makes sense for our people on both sides.”
Cross-border dispute
The international dispute erupted late last month when Mr. Bryan threatened to up transit charges and impose 25-percent tariffs on goods imported from the VI in retaliation for the VI government’s plan to increase charter fees for the first time since 1992.
Mr. Wheatley responded by insisting the VI is entitled to a bigger take from a market that he said generates almost $100 million annually for the USVI economy.
The premier added that annual licences cost as little as $200 a year for USVI vessels that on average could be charging customers $50,000 to $100,000 per week.
Under the current proposals, the annual licensing fee for “unrestricted” foreign vessels shorter than 115 feet would be $24,000 — a 2,900 percent increase from the $800 maximum annual fee now. And foreign day charters would have to pay a $12,500 yearly fee — a 6,150 percent increase on the current $200 charge.
Fees for VI-based commercial vessels would also increase under the proposed law, but not nearly as steeply as for foreign operators.
An annual charge for a VI-based commercial boat under 40 feet would double from $200 to $400, for example, and the annual fee for territory-based vessels between 40 and 115 feet that offer day charters would quadruple from $200 to $800.
Criticism at home
Here, the proposed reforms have also faced opposition from the Marine Association of the BVI, a non-profit organisation that claims more than 60 members employing more than 2,500 people.
While agreeing that some reforms are needed, the association wrote to HOA members in January expressing concerns and complaining about a lack of consultation.
The letter, which did not object to the fee hikes, stated, “The majority of industry stakeholders consulted thus far believe these legislative amendments are generally counteractive to the good of BVI, its economy and its marine industry.”
Two other bills
Along with the Commercial Recreational Vessels Licensing (Amendment) Bill, 2024, the proposed reforms also include two other pieces of legislation currently before the HOA: the Customs Management and Duties (Amendment) Bill 2024 and the Cruising and Home Port Permit (Amendment) Bill 2024.
Besides raising fees, the proposed laws seek to amend several regulations in the commercial recreational vessel sector, including tightening licensing requirements.
