Government Hosts Successful E-Commerce Seminar

    A Draft Preliminary Action Plan to Provide a Legal, Commercial and Technological Environment to Encourage the Establishment of Offshore Electronic Commerce Businesses in the BVI! That was expected to be the outcome of a one-day e-commerce seminar hosted by the local government at the Treasure Isle Hotel on Friday February 4th and facilitated by the Canadian law firm of Koskie Minsky.

    Senior Partner of Koskie Minsky, Mr. Raymond Koskie Q.C, explained that e-commerce is any form of business transaction in which the parties transact electronically rather than by physical exchange or personal contact. He said it is rapidly becoming one of the principal means of conducting business and financial transactions. It has the potential to provide smaller economies with improved means and ease of communications to business contacts, lower priced products, reduction of barriers to entry to world markets, reduced transaction costs and improved potential for delivery of services.

    "The combination of e-commerce and low tax rates, offered by countries such as the BVI, is irresistible to many businesses....If the BVI is able to develop infrastructure and policies that facilitate the growth of e-commerce, the country will enjoy an influx of new business," said Mr. Koskie. He said as there are numerous tax havens throughout the world, what is needed to set the BVI apart is the existence of an environment, both technological and legal, that makes it easier and hence more profitable, for businesses to locate in the BVI than in any other country with comparable tax laws. "Accordingly, BVI must develop a high-quality global telecommunications network, if it is to attract e-commerce clients; issues of bandwidth, service, fault tolerance and security must be considered," the facilitator noted.

    He suggested that there is also a human component to e-commerce infrastructure, in that the BVI's success is also dependent on having a workforce, even if labour has to be imported, that possesses the necessary digital literacy and business skills. "The government should encourage educational institutions in the BVI to develop and offer courses to provide the skills needed for e-commerce." Mr. Koskie also said that if it is to attract e-commerce business, the BVI must have practicable and clear rules to assist both businesses and consumers. Such rules will provide both clear options and guidance in this area of telecommunications. He indicated that the BVI has a lot of work to do if it is to become involved in the e-commerce market. "Immediate action is crucial - BVI must act now or risk missing the first wave of industry expansion, leaving it to play "catch-up" to countries with established telecommunications industries," the facilitator suggested. He said the prospect is not as daunting as it appears. He said the BVI's size therefore gives it an important edge over other larger countries. Said Mr. Koskie: "If BVI as a whole, its government, business community and workforce are equal to the challenge, it is possible for the country to become a major force in the e-commerce industry and to reap all the economic rewards that this entails."

    The Canadian Attorney was however forced to make one criticism. He said he has not found it easy to be able to access his office via the Internet on his laptop. He said advertisements suggesting easy access to the Internet in the BVI is easy are misleading. "Well, it is hard to stay in touch while you are in paradise!" he declared. Speaking at the opening ceremony, Manager of Cable and Wireless Keith Lowe stated that the people of the BVI do have the opportunity to participate in this revolution as the territory boasts a fully digital, fibre-connected network with built-in resilience and full redundancy. "I can assure you that there is ample capacity leaving the shores of the BVI to handle all the e-commerce business that we might want to do."

     He said the BVI has an advanced telecommunications infrastructure and Cable and Wireless definitely wants to be a part of developing this e-commerce business in the territory. "It is a perfect fit with our global strategy of focusing on business-to-business data communications and Internet services." Mr. Lowe announced that by the end of this month, Cable & Wireless should have a full-blown e-commerce enabled website here in the BVI. It will be connected to one of the company's six global transact platforms around the world.

    "We will fulfill the goods from here in the BVI and the funds from any transaction will appear on a merchant account with Barclays Bank in Road Town," he explained. The C&W Manager went on to say that there are some fundamental questions yet to be answered, including whether the BVI is prepared to allow gambling or adult-content companies to operate in the territory. He noted that this is a huge part of the Internet business. He also questioned whether the territory would want to attract business to consumers or would it just be interested in business-to-business operations, how will we protect all parties from fraud and most importantly why would a merchant want to establish an operation here in the BVI as opposed to any other jurisdiction. "If we can understand why a merchant would want to establish their operation here in the BVI, we could hopefully establish a competitive advantage for the BVI against other jurisdictions," Mr. Lowe said. He said there would be many groups looking for a share of the revenue from this industry, including the Registered Agents, the telephone company, the banks, the merchants and the rest of the BVI community.

    The Cable and Wireless Manager said he is convinced that the BVI can create a competitive advantage if we all work as a team to deliver a total solution. Chief Minister the Honourable Ralph T. O'Neal commented on a statement by Mr. Lowe about gambling and said, "everybody knows where I stand on gambling and I believe other Members of Council are likewise." He noted the presence at the opening of Ministers of government, Members of the Legislative Council and senior government officials and said this is not only an indication of the importance attached to this matter and the support they intend to give, but also a demonstration of individual and collective interest in the topic. "You would also note the private sector presence; I again remind you of government's stated intention to consult with the private sector on matters relating to the development of the territory and the welfare of our community," the Chief Minister said.

    He said in this area he looks forward to private sector/public sector cooperation and partnership. He said it is their desire to bring this new way of doing business into the mainstream of private sector/commercial activity. Hon. O'Neal said this workshop is just one of a series of efforts to continue the process of public education and awareness. He said an E-Commerce Committee should be operational within a matter of weeks.

    This Committee is expected to report back to government with appropriate recommendations within a few months. "Arising out of the recommendations of the Committee and other information which become available to us, my government hopes to undertake a number of activities to bring e-commerce fully into the everyday commercial activities of the territory." He said these would include, but not limited to, the introduction of appropriate legislation and amendments to existing legislation, specific focus on provision of adequate manpower and training and measures to encourage and promote appropriate information technology infrastructure.