The Minister for Financial Services, Labour & Trade, the Honourable Lorna Smith OBE, moved a motion in the House of Assembly yesterday Tuesday 31 October to temporarily suspend the Trade Commission Act for up to one year, 12 months. The Minister said that she needed time to review the Act to ensure its viability and effectiveness. The Act came into effect on 21 November 2022, through Statutory Instrument S.I. 103 of 2022.
The Minister said after assuming office at the end of April 2023, it became evident that the Commission was still in its early stages of development, which raised concerns about its viability and effectiveness. “Given the circumstances, a careful evaluation of the Act's implementation became imperative.” Honourable Smith told the House.
The Minister expressed concern on the displacement of the staff at the Trade Department and the short time allotted for the staff to decide whether to stay with the Trade Commission or transition to Central Government, noting that the Commission had not been fully set up within the period the staff was given the ultimatum. “The Trade Commission was still inactive.” Honourable Smith informed the House during her presentation.
Also of concern, was the high cost to run the new Trade Commission, some $1.5 million dollars plus proposed revenue of $960,000 in annual trade license revenue. This would see increases of more than 154% the Minister indicated.
“Madam Speaker, while an increase in trade licensing fees is warranted, given that the current fees were set more than three decades ago, I was surprised to inherit a Business Licensing Act, passed in 2022, with even higher annual licensing fees - as much as $1,000 for Belongers and $15,000 for Non-Belongers engaged in certain business activities.” Honourable Smith said.
“We all know that significant increases in the cost of doing business can lead to more business failures and higher prices for consumers. At a time when members of the House are calling for financial subsidies to support local businesses, their support of this suspensory Bill would demonstrate their commitment to enhancing the business environment in the Territory.” Honourable Smith further stated.
Areas of Concern
The following are the outlined concerns of the Minister:
*Increased operational costs during a period of budgetary constraints
*Increased bureaucracy
*Staffing limitations
*Unresolved employment terms and conditions for transitioning staff; and
*Resolution of duplicatory functions and clarity of roles of the Commission and the Ministry.
The Minister further highlighted that the Business Licensing Act, 2022 is part of a suite of legislation intended to be administered by the Trade Commission, along with the Consumer Protection Act of 2020 and the Virgin Islands Investment Act of 2021. It is crucial to note that neither of these pieces of legislation has been put into effect she indicated.
“Madam Speaker, I want to underscore that each of these pieces of legislation has merit and will not be abandoned. Appropriate amendments can be made that would allow the Ministry of Financial Services, Labour, and Trade to administer all trade-related legislation.” Honourable Smith said.
Implementation Plan
The Minister presented the following 12 month action plan towards implementing the policy/act:
1. Conduct a review of the department's current structure and operations.
2. Develop a strategic plan for the department with clear priorities for implementation.
3. Provide the department with the resources it needs to carry out its responsibilities, including technology, staffing, and training.
4. Develop and document operational policies and procedures to enhance transparency and ensure consistency in its business processes.
5. Establish clear accountability mechanisms, including setting performance targets for the department and reporting on its progress.
6. Strengthen the department's relationships with other government agencies and stakeholders to ensure it is well coordinated and aligned with the Government's priorities.
The enactment of the Trade Commission has been a contentious issue for the past couple months.