Deputy Premier Lorna Smith, OBE, the Minister for Financial Services, Labour, and Trade, presented a bill to suspend the Virgin Islands Trade Commission Act, 2020, during her recent address to the House of Assembly. The Act, which was enacted on June 8, 2020, aimed to establish the Virgin Islands Trade Commission with the responsibility of overseeing various aspects of trade, investment, and consumer affairs in the British Virgin Islands.

The Deputy Premier, who assumed her role as Minister responsible for trade in April 2023, expressed concerns about the Commission’s early-stage development, casting doubt on its viability and efficiency. She stated, “Given the circumstances, a careful evaluation of the Act’s implementation became imperative.”

One of the significant concerns revolved around the dilemma faced by employees of the Trade Department, who were given only six months, from November 2022 to May 2023, to decide whether to transition to the Commission. This decision was complicated by the fact that the Commission had not yet become fully operational.

The critical juncture occurred when Deputy Premier Smith attended the orientation of the Commission’s Board on May 15, nearly six months after the Act had come into effect. She expressed her reservations about the Commission’s implementation at this meeting.

The suspension of the Act was further justified by the Deputy Premier’s concerns about the financial implications of maintaining the Commission. A budget of $1.5 million, in addition to business licensing revenues of approximately $960,000, was projected to fund the Commission’s core administrative costs. It was estimated that a 154% increase in trade licensing fees would be necessary to achieve financial independence in the Commission’s second year.

Deputy Premier Smith also raised concerns about the Business Licensing Act of 2022, which had even higher annual licensing fees, potentially resulting in increased costs for businesses and consumers. This concern was particularly noteworthy as many members of the House were advocating for financial subsidies to support local businesses.

In her address, Deputy Premier Smith assured that the underlying policies intended to strengthen trade-related public functions within the central government would remain unchanged. She emphasized the importance of the Trade Department being well-resourced, accountable to the Government and the public, and aligned with the Government’s priorities.

The Deputy Premier proposed a comprehensive plan that included a review of the department’s structure and operations, the development of a strategic plan, allocation of resources, and the establishment of clear accountability mechanisms for the Trade Department. These measures aimed to streamline and automate business processes, support local entrepreneurs, and promote investment and fair trade practices.

While the Virgin Islands Trade Commission Act of 2020 is not being repealed, the bill presented by Deputy Premier Smith seeks to temporarily suspend its operations. This suspension will allow for a period of reflection, reform, and revitalization in the trade sector, better aligning it with the needs and aspirations of the Virgin Islands and its people.

The Deputy Premier concluded her address by urging the House to support the bill, emphasising the importance of thoughtful reform for the Virgin Islands’ trade sector.