The House of Assembly passed the 2025 budget with amendments on Dec. 19 after a lengthy debate over two days that touched on the economy, infrastructure, healthcare, the minimum wage and many other topics.
With a one-hour time limit per member imposed by Speaker of the House Corine George-Massicote, 11 HOA members contributed to the budget debate on Dec. 18.
Five opposition members began the discussion, painting a bleak picture of the state of the Virgin Islands’ economy and questioning the government’s recent decisions.
But government-side legislators fired back, defending their administration’s work and highlighting the completion of various projects across the territory.
“It is not that we do not have a strong economy; it is not that we don’t have a strong foundation,” Premier Natalio “Sowande” Wheatley said. “We have a lot of good things going for us, Madam Speaker. But have we achieved our full potential? The answer is no: We have not achieved our full potential.”
Economy
Opposition member Myron Walywn started off the debate, filling his allotted hour largely by listing concerns related to the economy.
“The tourism industry continues to be the main driver of the economy of the country,” he said. “But Madam Speaker, we are losing our competitive edge. As a matter of fact, I think we have lost our competitive edge. We have lost significant market share, Madam Speaker, because we are not paying sufficient attention to what we are supposed to be doing.”
Mr. Walwyn (R-D6) went on to criticise the lack of a national tourism plan, which the current and previous administrations have been promising for more than 13 years, including when he served as education and culture minister from 2011-2019.
He also noted the high percentage of cruise arrivals, stating that from January to September of this year, 541,000 of the total 786,000 tourist arrivals were cruise passengers.
“Sixty-eight percent of your arrivals were cruise ship passengers,” he said. “And the reality is the cruise [passengers aren’t] spending no money. Everybody know[s] it.”
Overnight visitors
He added that there is a need to grow the number of overnight tourists.
“When you contrast it, you look at the overnight visitors, 233,000 — only a mere 29 percent — and that is the group that you need to grow. …. We want people to come and stay on land, stay in hotels, stay in inns, so that you can have that multiplying effect in the economy,” he said.
Opposition member Stacy Mather, who followed Mr. Walywn, echoed similar concerns.
“If we don’t up our overnight visitors, what are we really celebrating?” he asked.
After Mr. Mather (R-at large) spoke, opposition member Lorna Smith stayed on the topic, tying the tourism product to the VI’s infrastructure and emphasising the need to improve the territory’s roads and garbage issues.
“I am glad that finally there is some cleaning up that is happening, that there is some beautification as it is called that is happening,” said Ms. Smith (R-at large). “But Madam Speaker, I don’t know which is worse: to clean it up and then expose all the debris, the bottles, the cans and whatever else, or to just leave the overgrowth.”
Premier’s response
Later in the debate, the premier pushed back against such criticisms.
“Why all of a sudden now we are being overrun with cruise passengers as though this wasn’t something that existed before?” asked Mr. Wheatley, who is the tourism minister. “In the great 2016 that we always lauded as the greatest year of tourism ever, … we had 407,000 overnight passengers, and we had basically 700,000 cruise passengers — just about 300,000 more cruise passengers than overnight guests. So how are we making it seem like, you know, we always had more overnight guests than cruise passengers, and it’s gone out of balance now? Madam Speaker, I’m suggesting to you that the public is being misled.”
The premier (R-D7) continued by highlighting the top five years for cruise passengers, with 2023 the highest, followed by 2016, 2019, 2015 and 2017.
“So three out of the five top years for cruise passengers were with National Democratic Party government,” he said, adding that some of the House members who criticised the current cruise arrival numbers “were in government at the time when that was taking place.”
Deputy Premier Julian Fraser also discussed the tourism industry in a debate contribution that defended the government he joined in October after the premier fired Ms. Smith from her ministerial role.
Among other points, Mr. Fraser (R-D3) argued in support of the airport expansion the government has been pushing forward in hopes of increasing the number of overnight tourists.
Minimum wage
Another contentious topic during the debate was the government’s recent last-minute decision to delay the minimum-wage increase that had been scheduled to take effect Nov. 30.
“In the words of those who needed that increase most, this was nothing short of immoral,” said Ms. Smith, who now serves on the opposition. “Others called it stronger words, but I will say it was immoral.”
Ms. Smith also called for the premier to provide VI workers with a “decent wage that will allow them to live a decent life.”
As labour minister before her October firing, Ms. Smith oversaw the preparations for the increase, and she has been strongly critical of the delay since the government announced it on Dec. 3.
Premier’s apology
During the budget debate, the premier responded to such criticisms by apologising to “any employers or employees who were disadvantaged in any way” by the wage-increase delay. He added that he would further explain “how we will move forward with the minimum wage” early next year.
“Persons should have no fear: We will have an increase to the minimum wage,” he said. “But I’m going to have further discussions about how we phase in the increase of the minimum wage, and how government can have a stake by increasing — potentially increasing — the exemption.”
The “general principle” behind the delay was concern for the potential harm the increase could cause, including likely layoffs and the possibility of an increase in the cost of goods for consumers, according to the premier.
“A significant hike in the minimum wage will have financial implications for business owners, and it will have implications for consumers,” he told the HOA.
He added that some business owners had told him that they would need to pass the additional cost in payroll on to consumers or terminate some employees.
Infrastructure
Multiple HOA members also commented on roadwork, especially in connection with the government’s recent $100 million loan from CIBC First Caribbean Bank.
Government leaders have said $36 million of this loan is earmarked for roadworks, but Mr. Walwyn called for more clarity on what specific road projects the money would support.
“What is the plan with that $30 million?” he asked. “What exactly you intend to do with it, and where would the interventions take place: which districts, which areas and so on? And whether it’s just paving of roads or if it’s just for bridges; [if it’s] for areas that are dilapidated in terms of infrastructure? We need to understand, Madam Speaker, in a written plan, what is happening with that $30 million.”
Ongoing roadworks
Communications and Works Minister Kye Rymer, however, defended his ministry’s record and highlighted the roadworks that are currently being addressed across the territory.
“We understand that there are some inconveniences, but, Madam Speaker, we are able to work when we get the funds allocated,” he said. “And I am happy that we were able to get some of those roadworks achieved — and those are the primary roads, the main roads, and there are quite a lot of roadworks happening on the secondary and tertiary roads.”
Mr. Rymer (R-D5) also noted the Recovery and Development Agency’s recent request for expressions of interest for roadworks across the VI.
“We were able to work in tandem with the RDA,” he said. “They have sent out an EOI for engineering for about nine roads within our territory from Anegada to Jost Van Dyke and even on Virgin Gorda, as well as here on Tortola. So we’re hoping to see those works start quite soon.”
The REOI was released by the RDA in November.
Water and sewerage
Mr. Rymer also defended the government’s decision to merge the Water and Sewerage Department with the BVI Electricity Corporation, which some opposition members had criticised earlier in the debate.
“There are synergies within water and electricity,” Mr. Rymer said. “The business of water and electricity — they are similar. Madam Speaker, the experts have already done all the work, they have done the business case, they have [drafted] the policy document. And I will move forward with them because I will trust their judgment.”
But some opposition members also criticised the way the Water and Sewerage Department is being managed.
“A lot of the issues is the fact that they have not gotten the resources that they need to do the things that they need to do,” said opposition member Marlon Penn. “On the ridge just before the end of Spring Ghut, there’s an area that’s running constantly for weeks. When I asked what’s the problem, why this water is wasting hundreds of thousands of taxpayers’ money just running down the ghut for weeks, … it’s for the want of a $5,000 part: a pressure-reducing valve.”
Mr. Penn (R-D8) continued, “We don’t have a money problem, obviously; we have a management problem.”
Healthcare
The topic of healthcare also came up in the debate, with Mr. Walywn calling for more resources to be allocated to the sector.
“As willing as [the BVI Health Services Authority] are, I’m concerned for them, and I’m concerned for the people of this country, because if you don’t have the finances, Madam Speaker, that you need to operate, it is going to compromise the quality of healthcare,” he said. “They didn’t want to say, but there are certain things they don’t have to say because at some point when you can’t provide the level of service that you want to provide because you don’t have the resources, you’ll get compromised.”
Responding to such concerns later in the debate, the premier disclosed a plan to help address the BVIHSA’s debt of about $20 million.
“Probably about 90 percent of that debt is to government,” he said. “And one thing I will discuss with the Ministry of Finance is about writing off that debt.”
Health and Social Development Minister Vincent Wheatley (R-D9) addressed the topic as well.
“Yes, any amount of money could give our health services — this is all over the world, they can spend it,” he said. “But let’s get it right. Let’s make sure we’re spending the money on the right things. Let’s work in a systematic way.”
He also said that $500,000 will go toward repairing the Nurse Iris O’Neal Medical Centre on Virgin Gorda. Government, he added, will provide housing for clinic personnel as part of efforts to address challenges recruiting and retaining staff.
Two-day sitting
On the night of Dec. 18, the premier began to wrap up the debate, but due to technical difficulties the sitting recessed until the following day.
In his closing contribution, he objected to the portrayal of the VI that many opposition members had made during the debate.
“The Virgin Islands which was described by some members of this House is a Virgin Islands I don’t recognise,” the premier said. “The picture that was painted of the Virgin Islands was so dark and gloomy. You might ask yourself why would anybody want to come to live in the Virgin Islands, to work in the Virgin Islands, to visit the Virgin Islands. Despite that picture that was painted, we continue to attract persons from all over the world who want to live here.”
After the premier’s contribution, which lasted more than an hour and a half despite the one-hour limit imposed by the speaker, the House went into closed-door committee session to discuss the budget expenditures further.
After nearly five hours, the HOA returned from the session, and the premier announced that the Appropriation (2025) Bill, 2024, had passed with amendments.
Other business
In addition to the budget debate, the premier laid four documents on the table at the start of the Dec. 18 sitting: the 2023-2025 Macro-economic Review and Outlook; the 2025-2027 Medium Term Development Strategy; the 2025-2027 Medium Term Fiscal Plan; and the report on the deliberations of the Standing Finance Committee to examine the draft estimates for 2025.
After the passage of the budget on Dec. 19, the premier called for additions to the order paper, introducing three bills and laying six new documents on the table.
The bills he introduced were the Financial Services Exceptional Circumstances (Amendment) Bill, 2024; the Police (Amendment) Bill, 2024; and the Computer Misuse and Cybercrime (Amendment) Bill, 2024.
The documents he laid on the table were the Financial Services Limited Partnership Fees (Amendment) Regulations, 2024; the Financial Services Miscellaneous Exemptions (Amendment) Regulations, 2024; the Limited Partnership (Amendment) Regulations, 2024; the BVI Business Companies (Amendment) Regulations, 2024; the BVI Business Companies and Limited Partnerships Beneficial Ownership Regulations, 2024; and the Service Commissions (Amendment) Regulations, 2024.
Then, the health and social development minister laid on the table the Cabinet instrument appointing Lorie Freeman director of the Social Security Board. Ms. Freeman previously served as deputy director.
Private business
The HOA then moved on to private member business.
During that segment, Mr. Fraser moved a motion for a resolution to pay $36,455 in outstanding funeral expenses for two late former HOA members: Carvin Malone and Vernon Malone.
After a short debate where only the premier spoke, the motion passed.
Next, Mr. Mather moved a motion to remove Mr. Fraser from the Public Accounts Committee and to nominate Ms. Smith as a member.
Mr. Fraser contributed to the debate to “make clear” that he “didn’t wish to serve on this particular Public Accounts Committee.”
The motion then passed.
Prorogued
After the Dec. 19 sitting, acting Governor David Archer Jr. prorogued the HOA effective Dec. 27 on the advice of the premier.
The HOA is scheduled to reconvene for the First Sitting of the Second Session of the Fifth HOA on Jan. 7.
At that sitting, Governor Daniel Pruce is expected to deliver the Speech from the Throne, outlining the government’s legislative agenda for the upcoming session.