LegCo passes Prospect Reef Bill - Opposition fears lawsuits

The Legislative Council has passed a Bill giving Government the green light for the management and development of the recently purchased six million dollars Prospect Reef Resort. On Tuesday the Legislative Council approved the Bill entitled, "Prospect Reef Resort Management Act, 2005" after a long debate that gave some members of the opposition ample opportunity to express sentiments ranging from caution to plain disagreement. The Bill was passed with eight parliamentarians in favor, two against, two abstained and one absent.

Chief Minister of the BVI Dr. the Honourable D. Orlando Smith explained that the Government plans to convert Prospect Reef into a Hospitality Training Centre. Dr. Smith announced that the new acquisition  will be structured and operated as a limited liability company and the Prospect Reef Bill provides for its incorporation. The Chief Minister said that Government will be the main shareholder. This bill will provide for the financing of the hotel, and the exemptions that it will enjoy such as duties, and taxes. Part four of the bill provides for the legal aspects.

Minister of Finance, Hon. Ronnie Skelton said, "without fear of contradiction this is a good purchase". It is a good purchase because the previous Government was on the way to building a hospitality training center for 28 million dollars and the purchase of Prospect Reef is only six million dollars — he said. This program along with the tourism service standards program will strengthen the BVI's tourism product, Skelton added.

 Hon. Skelton also mentioned that Government has obligations to the employees of the Resort. He pointed out that if a private organization was purchasing the Resort, Government would have ensured through Labour that the employees were taken care of. Since Government is doing the purchasing they should ensure that the employees are provided for. Mr. Skelton mentioned that there is an issue that has nothing to do with the purchase, but it may produce negative vibes for the Territory. This issue, he disclosed,  regards the people who have purchased timeshare from the previous Prospect Reef owners, but Hon. Skelton said that Government has no obligations to these people. The Finance Minister concluded by saying, "we have an obligation to keep this property open, and therefore this bill has my full support, because it is a good purchase".

Leader of the Opposition Hon. Ralph T. O'Neal said that he was not going to dispute the Hon. Skelton's statement that Prospect Reef was a good purchase — "I am sure that the Finance personnel's made a thorough examination".  "It is true that the previous Government was planning to build a Hospitality Training Centre. I do not consider workers with severance pay a problem, but Mr. Skelton raised an important point about the timeshares. I do not profess to know about anything about timeshares, but I called the Chief Minister around 7:30 this morning and asked him if he would defer the second reading of this bill so that we can get more information about it. The Chief Minister promised to consult with the Attorney General who said that all was well. Madam Speaker I believe that this Prospect Reef thing will end up in court as long as Americans are involved. The good name of the Territory is what I am concerned about", Mr. O'Neal told the Honourable House.

Mr. O'Neal read a letter that was sent by the time-shareholders, and he explained that the time-share holders are planning to take the story to the media with the headline “Government Swindles Millions from Tourists". Mr. O'Neal said that the Americans will do what they say, they will use the media and the financial and tourism sectors will suffer.

The seasoned politician and former Chief Minister said that he hopes the Government will take some time to look at the situation and make a decision that will be in the best interest of the Territory. O'Neal pleaded with the Government to seize the opportunity while the time-shareholders are still in the mood for negotiations.

"Government has enough difficulties running a country, and getting into private enterprise is a big danger sign. It is unfair that the Government is considering making a business that will compete with the same people it is going to empower -- isn't that conflict? I stand today to implore the Chief Minister, in hopes that he will agree to wait another two weeks. We cannot say the people don't have a case! They have a case. We are a country that depends on outsiders, we depend on tourism, investors and persons from the Caribbean coming here to work. If it is the Chief Minister's intention to push this bill today, I will have to record a no vote because I need more time."

Representative of the Third District Hon. Julian Fraser quoted the letter that was sent by the Vacation Club (the time-shareholders who are threatening Government). The former Deputy Chief Minister pointed out that a member of the Vacation Club is a sitting member of the US Senate and there are a number of attorneys in that club. He told the members of the Legislative Council that "these people are serious, they are planning to put out a news release and they are calling for a boycott of the BVI".

Minister of Education Hon. Lloyd Black told the House that he found it disappointing that the Leader of the Opposition and the Hon. Member for the Third District "would read that letter in Council and I think that the statements made are below the belt. The time-share owners will be dealt with by the appropriate authority".

Sixth District Representative Hon. Omar Hodge asked the Chief Minister to stay away from the courts.

Hon. Mark Vanterpool representative for the Fourth District said that if he is expected to consider this bill then he will need all of the facts.  "Where are the facts, that I have to consider this bill today. I think the intention behind this entire Prospect Reef issue is very good, I would advice the Government to not take these time-shareholders for granted and to remember that local people also own time shares". In the end he voted in favour of the Bill.

The Attorney General Hon. Cherno Jallow informed members of the Legislative Council that the current operators did not purchase Prospect Reef Resort. He explained that the objective of the Bill is to provide the legal framework that will foster accountability. Hon. Jallow said that the company will be expected to provide annual reports. "The question has been raised about what has been purchased, it is the property that has been purchased we are not purchasing the liabilities".

Dr. Smith said that the members were informed of Government's intention to purchase Prospect Reef and they had all supported the idea, but now that some time-shareholders are making threats some members are not supporting. "This bill is not about the purchase of Prospect Reef. We have already purchased Prospect Reef with your agreement over the years. We are not purchasing the liabilities, we are purchasing the resort from the Cripps Foundation".