Leaders trade jabs in budget debate

As the House of Assembly began its public debate on the 2026 budget yesterday afternoon, members from opposite sides of the aisle painted starkly different pictures of the current state of the Virgin Islands and the outlook for the year to come.

On the government side, legislators described the record $550 million budget as a game-changer that will boost economic prosperity and usher the territory into a bright future.

“The fact that the premier was able to present the largest budget in the history of the Virgin Islands is very significant,” said Financial Services and Economic Development Junior Minister Lorna Smith, one of two government-side members to speak yesterday. “I see it as a clear indication of continuing to move forward — this country moving forward with a very clear sense of purpose under his leadership.”

But opposition legislators challenged this positive spin, taking shots at the territory’s infrastructure issues, healthcare shortcomings, rising cost of living and other topics.

“The budget doesn’t touch the lives of people,” said Opposition Leader Myron Walwyn, one of three opposition members to speak.

The debate began yesterday in the afternoon and continued into the evening, with five House members contributing. The HOA then recessed, and it was scheduled to resume the debate this afternoon at 4 p.m. after Beacon press time.

Opposition’s view

After the HOA returned from its closed-door Standing Finance Committee deliberations yesterday afternoon, Mr. Walwyn kicked off the public debate with strong criticism.

“Now, we have a budget we claim borders in about $550 million, Madam Speaker. And it’s being touted as the largest budget that we have had in the BVI,” said Mr. Walwyn (R-D6). “But Madam Speaker, the financial picture is not a good one. It’s not a good one, and I want to encourage members of the public to get their hands on the budget and look at the first page where you see the budget summaries.”

Mr. Walwyn then contrasted the projected recurrent revenue of $447 million to the projected recurrent expenditure of $454 million.

“We are running a deficit of $14 million in 2026, year on year, he added. “And then, of course, you have a debt of $20 million.”

Mr. Walwyn also claimed that the budget will not bring enough benefits to the people of the territory.

“A large budget doesn’t mean it’s people focused,” he said. “That big budget day: It pays for your wages and your pensions and your systems, and you have some monies there for capital. But none of those things automatically go … to bread-and-butter issues.”

Infrastructure woes

The opposition leader went on to list infrastructure problems and other issues facing the territory. He added that the VI should receive a “failing grade” when it comes to basic services such as water and roads.

“Garbage collection and disposal, another basic service — we’re not handling it well,” he said. “The place is filthy. Those big green bins all over the place overflowing: It’s disgusting. And we’re not doing anything about it.”

He described the state of the roads in all districts as “shameful” and argued that the VI needs outside help to fix them.

“We need to have a serious conversation with ourselves, Madam Speaker,” he said. “We have to be honest with ourselves: We can’t fix no road.”

He added that this issue transcends the current government administration.

“We need help,” he said. “Borrow the skills from somewhere. Of course, use our local people and our equipment and all the rest of it. But somebody need to come and help us how to engineer them roads properly.”

$30m needed at hospital

Mr. Walwyn also spoke about the state of healthcare in the territory, noting findings aired in the Standing Finance Committee Report, which was tabled the day of the debate.

“The overview on page 34 says, ‘The cost to repair, update and expand the assets of the hospital starts at an alarming $30 million,’” he said. “Hear this: ‘Without immediate intervention, the continued deterioration of vital infrastructure will severely compromise the authorities’ ability to provide adequate care, placing the health and safety of the community at significant risk.’”

He went on to read other parts of the SFC report that he said referenced independent structural assessments of healthcare facilities across the territory.

Reading from the report, Mr. Walwyn noted that an “‘external engineering report determined that the original Peebles Hospital building is structurally unsound and must be demolished.’”

Other healthcare facilities also face infrastructure issues, he said. For example, he said the report notes that the old Nurse Iris O’Neal Clinic has “‘severe mould and structural issues’” and the “‘building will also need to be taken down.’”

‘A balloon budget’

Next to speak was opposition member Mitch Turnbull, who questioned whether the budget is “serving the needs of the people in this territory.”

“When you go through this budget book, what actually is touching the ground?” asked Mr. Turnbull (R-D2). “It’s a balloon budget.”

Opposition member Marlon Penn also spoke, arguing that while the VI does not have a “money problem,” it does have a “management problem.”

“But with all this money, we’re seeing the level of hardship that people are experiencing on a daily basis,” he said. “The socioeconomic aspect of our economy is in dire need.”

Mr. Penn (R-D8) also echoed concerns about healthcare, infrastructure and the cost of living.

“The monies in this budget is not reaching the people of the territory,” he said.

He also spoke about the airport expansion and urged government to communicate plans to his constituents and share the business case on the project with the House.

“You came when you were doing the business case: You spoke to the people,” he said. “The business case was completed; you need to come back and talk to the people of that community about what you’re doing and its impact.”

Government’s view

On the government side, Ms. Smith and Deputy Speaker Karl Dawson countered the criticism yesterday and painted a much brighter picture.

“Our story, the story of this government, is one of growth,” Ms. Smith said.

She highlighted major projects over the past year, including the groundbreaking of the Nanny Cay expansion; the approval of reclamation works for a coastal development in Havers; development on Norman Island; the recent launch of the Anegada solar field; and sewerage works in East End and Long Look.

“This is a government on the move,” said Ms. Smith (R-at large). “Every single one of these activities I have mentioned will deliver jobs, investment and opportunity today with the potential to build unstoppable momentum for a thriving BVI tomorrow.”

Census

Ms. Smith also gave an update on the long-delayed census, which she said is expected to come early next year.

“[The census] is the only way that we can really get determination of the true standard of living in the country,” she said. “So all that you’re hearing — all the doom and gloom that we have been hearing this afternoon — is a significant amount of conjecture.”

Ms. Smith also highlighted the progress she said the territory has made in moving off the Financial Action Task Force’s so-called “grey list” since it was added in June.

“The results speak for themselves, as last month the BVI achieved a ‘compliant’ or ‘largely compliant’ rating on all 40 [FATF] recommendations,” she said. “Madam Speaker, these achievements underpin the investments made in the last fiscal year.”

She added that the work ahead includes “properly staffing a financial services directorate in 2026 and completing the development of a long-term strategy.”

Local businesses

Ms. Smith also highlighted outreach conducted this year with local businesses.

“Through district outreach initiatives — and we did visit every single district — we engaged directly with business owners across our communities,” she said.

“We heard from businesses where government processes are too slow, where communications break down too frequently, and about systems that do not meet the expectations of a modern economy.”

Some residents are facing difficulties in starting a business in the territory, she said, adding that the government “will move expeditiously on these matters.”

Ms. Smith also touted some $381,000 she said was invested to boost entrepreneurs.

“Business continuity grants offered critical relief, while developmental grants encouraged innovation, expansion and capacity building,” she said.

Cost of living

Addressing the rising cost of living, Ms. Smith said a “basket of goods” initiative will launch early next year.

“The protective basket of goods means that the price of certain basic food items cannot rise beyond a certain price,” she said. “Of course, given that we import most of what we eat — and what we wear, for that matter — we are conscious that prices will continue to be influenced by shipping costs, … suppliers’ increase and the like.”

As Ms. Smith concluded, she emphasised a positive outlook for the government and territory in the coming year.

“As I close, let me be clear: The work of 2025 laid the foundation for a far more productive, strategic and transformative 2026,” she said. “Whether through reforms and promotion of financial services, support for small businesses, progress on major development projects or advocating for improved ease of doing business, every achievement of 2025 is a building block for what we intend to deliver next year.”

Deputy speaker

Mr. Dawson also contributed to yesterday’s debate

“It’s tough to present a budget in these times because of all the competing needs,” he said. “But I believe that this government has been guided by the National Sustainable Development Plan, and that a number of areas in that plan have been addressed as far as the allocations in this budget is concerned.”

Like Ms. Smith, Mr. Dawson (R-D1) highlighted ongoing and upcoming projects around the territory, including the airport expansion, roadworks, the project to rebuild the Althea Scatliffe Primary School, and others.

He also emphasised the importance of healthcare.

“In reference to the budget on which it is based, I will remind members of the public that priority goal number one concerns health and wellness — that the Virgin Islands emphasises healthy living and provides the structures for fulfilling lives,” he said.

He went on to speak about the BVI Health Services Authority’s Strategic Development Plan for 2025-2033.

“In that plan, Madam Speaker, they are aiming to improve healthcare in the territory,” he said. “They have plans to see how they can improve revenue and provide better service.”

Time limits

Speaker of the House Corine George-Massicote said at the start of the debate that she would allot an hour and a half for the premier and opposition leader to speak and one hour for each of the other members.