Prime Minister Mia Amor Mottley has reassured Barbadians that the controversial Economic Diversification and Growth Fund Bill is designed to protect jobs, attract investment and safeguard public funds, as criticism and public unease continue to mount over the proposed legislation.
In a national address on Sunday night, Mottley acknowledged that the Bill, which authorises the disbursement of up to $225 million from the Consolidated Fund, had sparked anxiety and mistrust among some Barbadians, particularly given its implications for public money, employment and economic policy, but insisted that those concerns warranted explanation rather than dismissal.
“I know that many of you have questions. I know that some of you may even feel uneasy, and I know that in moments like these, especially when economics or public funds and jobs are involved, sometimes mistrust can creep in very quickly for a few of our people. That is understandable,” Mottley said.
The Prime Minister’s intervention comes amid growing public debate over the Bill, which was debated in the House of Assembly last week.
Former Senator and attorney-at-law, Tricia Watson raised concerns about the Bill’s drafting, governance framework and safeguards for the use of public funds.
However, government has maintained that the measure is necessary to attract investment, earn foreign exchange and create jobs in a tightening global environment.
Mottley said it was unrealistic to expect every citizen to follow parliamentary debates or dissect financial legislation unaided, and accepted responsibility for explaining the bill directly to the public.
“If we have not explained something carefully enough, then it is our responsibility and certainly my responsibility to come and explain it plainly, directly and respectfully, and this is what I’m doing now,” the Prime Minister said.
She said the Bill was part of Barbados’ broader response to international tax reform and global economic uncertainty, stressing that the country no longer has access to traditional tools such as tax holidays and sweeping concessions.
“The old tools are gone,” Mottley said. “The days of blanket tax holidays and deep tax concessions are over, and I will be real with you, they’re not going to be coming back.”
According to the Prime Minister, the Growth Fund is intended to complement, not replace, the existing economic framework, by offering a lawful and transparent mechanism to support investment that delivers tangible benefits to the country.
“The Economic Diversification and Growth Fund is designed to augment, not replace our economic toolkit,” she said. “It allows Barbados to remain attractive for investment that earns foreign exchange, that creates jobs, and yes, that still pays taxes.”
Mottley stressed that eligibility under the Bill is tied to measurable outcomes, including employment and foreign exchange earnings.
“No investment or support will be given to any foreign company that does not significantly expand employment in Barbados,” she said, noting that qualifying entities must create at least 100 jobs and meet specific thresholds.
She added that companies would continue to pay corporation tax at nine per cent, or 15 per cent where applicable under global minimum tax rules.
Mottley also rejected claims that the fund sidelines Barbadian businesses, pointing out that local companies with international operations can also qualify.
“Equally important, this fund is not closed to Barbadians,” she pointed out..
Addressing governance and oversight, the Prime Minister said the fund would be subject to multiple layers of accountability, including administration by the Accountant General, audits by the Auditor General, and review by a broad-based advisory committee.
“Every cent that enters this fund and every red cent that is spent will be accounted for,” Mottley promised.
Mottley added that the minister responsible does not act alone, but on the advice of technical bodies and the National Growth Council, whose members are drawn from the private sector and the trade union movement.
The Prime Minister further framed the Bill as a response to the economic realities facing small, open economies like Barbados, particularly amid global instability, supply chain disruptions and climate shocks.
“At the end of the day, the truth is that this Bill is about real jobs for real people in the real world that we’re living in,” she said. “There is no wrong time to do the right thing for Barbados and Barbadians.”
She assured the country that the Government would not compromise fiscal stability or transparency in administering public funds, saying: “Your government… will not play fast and loose with Barbados’ fiscal and economic stability, nor with the well-being of Barbadians.”
The post Mottley defends Growth Fund Bill amid public concern appeared first on Barbados Today.
