The Chamber of Commerce and Industry on Thursday welcomed the government’s proposed Economic Diversification and Growth Fund Bill as a key step towards strengthening investment and competitiveness, even as it pressed for stronger oversight, clear performance measures and transparent reporting mechanisms.
Answering questions about the bill’s oversight and governance structures during a press conference, BCCI Economic Advisory Committee Chairman Christopher Sambrano told reporters that while the legislation is promising, there is “some room to expand in terms of policy and regulation so just to ensure that there’s transparency, that there’s a clear objective, that we have clear measures as to how we measure the impact, that will return on investment on a national level and providing that, and then also providing, I guess, some level of transparency and reporting as we go.”
He stressed the need for clear metrics for the fund and ongoing review processes, adding: “So there is a need to flesh that out, but, sometimes you can’t wait for perfection to do something. It’s a good start, and we are going to provide our input here, and here are some of the things we would like them to ensure is addressed, to make sure it’s successful, and that the public buys in to what all leaders are doing.”
Sambrano also addressed concerns about the types of businesses the fund would support, noting Barbados’ traditionally conservative approach.
“Barbados has never really encouraged businesses that bring bad reputation to it. I would say that Barbados has been generally conservative with the type of business that it was ready to accept here,” he said. He further emphasised that the fund’s success would rely on transparent reporting and proper risk management.
BCCI President Paul Inniss described the legislation as aligned with the chamber’s focus on investment and growth opportunities.
He said: “The bill certainly is a positive for business in Barbados. The intent for us is clear in that the bill seeks to attract foreign investment that generates material employment, which is a positive for the country, generates foreign exchange, which is needed in our country, and also seeks to solidify or put Barbados in a competitive position with regard to other markets and other regions that may seek to attract investment or investors that we want to attract.”
“If we don’t get into that game somehow, we will actually end up on the losing side of building a more diverse economy that takes care not only of providing foreign exchange, but also creating opportunities for our residents and citizens.”
Inniss also highlighted the importance of government engagement with the private sector.
“And that’s why I like the view that the prime minister was able to engage with us to provide clarity one and to also invite feedback, which we will provide not in the press, but we will actually do it the way we know is done professionally, where we will actually make some recommendations after we’ve completed our assessment and review, so that is part of the discourse and consideration.”
BCCI Senior Vice-President Paul Ashby emphasised that the legislation would introduce greater transparency compared with previous concessions.
“This particular legislation provides for a lot more transparency and oversight than we’ve ever seen before. There have been situations in tourism and in some industries where there have been concessions that we heard about after the fact, right? So I think this one gives us a lot more oversight,” he said.
He acknowledged that some details still needed to be finalised but noted: “I will agree that there have been some details that can be nailed down. I think that that’s being addressed right now, and as the president says, we are going to give the feedback as well as to things can be tightened up.”
Sambrano also spoke about the potential benefits for local business, even though the bill primarily targets foreign investors.
“The hope is if these large foreign entities are able to invest in Barbados and generate more economic activity and more jobs, that is good for local business. So what we want to do is drive that activity. As I said, there’s these enhancements to promote the transparency and ensure this is meeting its objectives.”
“We are going to provide our input here… to make sure it’s successful, and that the public buys into what all leaders are doing, because it is important for the government’s constituents, the public, to feel comfortable with it, and be bought in to that. Hopefully we have a success so that when next time they come to do it again, there would be even further support.”
The legislation would establish the Economic Diversification and Growth Fund with an initial allocation of $225 million from the Consolidated Fund over three years. It is intended to support qualifying companies that expand operations in Barbados.
Companies eligible to apply must demonstrate a substantial presence outside Barbados while committing to significant domestic activity, including creating at least 100 jobs for Barbadians to be maintained for seven years, alongside compliance with tax obligations.
sheriabrathwaite@barbadostoday.bb
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