2007 NEW YEAR’S ADDRESS

CHIEF MINISTER HONOURABLE D. ORLANDO SMITH, OBE

My fellow citizens and residents of the BVI:

I come before you as the dawn breaks over another new year in our community. As is traditional, this is a time of year for both celebration and reflection.

I come before you today first and foremost to wish you all, on behalf of my Government, a happy and blessed new year. May this be a year of health and prosperity for our community; a year free from strife or natural disaster, and a year of unity, brotherhood and peace – here in the BVI and around the world.

I also want to use this opportunity to talk to you about the events of the past year and about your Government’s hopes and plans for the year ahead.

Ladies and Gentlemen: This is a particularly special new year for me and my colleagues in Government, as this marks the beginning of the fourth and final year of this administration’s first term in office. These past three years have been a period of challenge and of excitement.

I know that I speak for all of my colleagues in saying that we have learned a great many things over the past years.

A CLEAR VISION

We have learned that it takes more than sound management and good policies to take our Territory forward. It also requires a clear vision and the ability to communicate that vision to the people of the BVI.

We have learned that effective government includes knowing how to listen to our people, how to compromise and build consensus.

But above all other lessons, the most important thing I have learned it is that leadership – true leadership – starts with having a fundamental belief in what is right for our community – and then having the courage to see that through no matter what the obstacles.

These are words that are easy to say – but sometimes hard to live by. It is natural for any person to want to be liked and supported.

Ladies and gentlemen, the true test of leadership is not found at the moments when people are cheering and the newspapers and the radio shows are singing your praises.

Rather, the true test of leadership is found at the moments of trial and challenge – when people are questioning your leadership, when they are questioning your wisdom – even when they are questioning your integrity.

Those are the moments when we discover our character – for in such moments we are forced to make a choice between two very different paths. One path is to give in to the critics. That is the easy way – it is the path of least resistance.

But I am proud to say that this Government has always sought to go a different way. The people elected us to lead, not to follow. They elected us to do what we thought was right as God had seen fit to show us the right.

They sent us to do a job: to build a better future for the BVI. And that is precisely what we have sought to do.

The BVI today stands at a historic crossroads –the choices we make today will impact the lives of our people for years to come. And so it has been with a sense of deep responsibility that I and my colleagues have worked to deliver on the promises we made to the people just over three years ago.

We came to office pledging to focus on three fundamental principles: to grow the economy; to strengthen the social infrastructure, and to promote BVI pride.  These basic ideas formed the foundation of our detailed Agenda for the BVI in which we stated exactly what we hoped to accomplish in our first four years in office.

We have stood by these principles even when it was hard; even when we were criticized; even when we were attacked.

We stood firm in our beliefs. And because we did so I can stand before you as we close the books on 2006 and open the door to 2007 and report with pleasure and pride that we have delivered on our promises, stuck to our Agenda and put the BVI on a course for progress in the years ahead.

MANAGING THE PEOPLE’S MONEY

Nowhere has our commitment to standing by our principles been clearer than in our efforts to grow the economy. That began with setting the Territory’s financial house in order.

When we assumed office, our reserves were depleted, and our budget was in deficit. In order to address this problem we had to take some hard decisions.

We had to stop the culture of carnival spending and waste. We had to exercise responsibility and care in managing the people’s money. We understood perfectly well that putting greater control on government spending would upset some people, but we believed it was the right thing to do. And the results speak for themselves.

Today, our financial house isn’t just in order – it is thriving.

For the second straight year we have returned a budget surplus in excess of $30 million above recurrent expenditures. The Reserve Fund is now strong and growing – ensuring that we have money put aside should the proverbial “rainy day” ever come to pass.

And our debt is well below the levels recommended by the UK Government.

Restoring responsibility to the management of our public finances was critical to building confidence in our economy. Today, that confidence is evident everywhere we look.

We see confidence in our economy among investors who want to do business in the BVI.

We see confidence among banks that are prepared to lend money to the BVI for major projects like the new hospital.

And we see confidence in the economy among our own local people who are building the finest homes, establishing new businesses and improving existing businesses and who this past Christmas season were able to make it a record year for local businesses.

Again, there are many critics who have said that this Government has been too focused on growing the economy.

But here, too, we believe that growing the economy is the right thing to do. Because only a growing economy can ensure that our people can afford a higher standard of living. Because only a growing economy can give us the resources to better meet our people’s needs and because only a growing economy can ensure opportunities today and into the future.

And because we have stood by our commitment to economic growth, the BVI is booming. This past year, our GDP rose over 7%. Our average household income is up and rising. Unemployment among our people is low and dropping. And the standard of living for our people has never been better.

And we are not resting on our laurels. Over the coming year we will continue investing in our Territory’s physical infrastructure.

Since taking office, we have seen tremendous progress in this area.

IMPROVING & EXPANDING THE INFRASTRUCTURE

The traffic in Road Town has been improved thanks in part to the construction of the Palm Grove Road over the objections of many critics.

The road connecting North Sound and the Valley in Virgin Gorda has made travel there better than ever.

This quarter, the new electrical generators at the BVI Electricity Corporation will come on line.

By the end of the first quarter, we will announce the new Telecommunications Policy which will open the door for competition leading to better service, more innovative technology and lower prices.

By the end of this coming year we will be well on our way to completing work on the sewerage system for East End/Long Look and Road Town.

We will also complete the construction of the new water treatment facility on Anegada – a historic project that will for the first time ever guarantee an ample supply of water for that community.

Our programme for strengthening the economy also includes a focus on continuing to attract investment to the Territory.

MAJOR DEVELOPMENTS

It was with great pride that over the course of 2006 we were able to announce the completion of agreements for three major new developments in our Territory: Beef Island, Smugglers Cove and Scrub Island.

Together, these investments will bring in hundreds of millions of dollars for our local economy.

These projects will create good jobs for our citizens and residents at all levels, as well as contracts for our local businesses. They will also ensure that BVIslanders continue to meet their financial commitments. And as importantly, they will make our already flourishing tourism product even stronger and more competitive for the future.

We take these steps knowing full well that some will attack us saying that it is bad for the BVI to allow outsiders to make these investments in our Territory. They say that we are losing control, that we are threatening the environment, that we are undermining our local people.

Ladies and Gentlemen: These attacks are painful to hear. But they will not deter us from our course. Because the truth is that these investments are absolutely vital to the future of our community – and this Government is not going to undermine these investments that will mean so much for us all tomorrow just to avoid controversy today.

We take this position because we know that the BVI can and will handle these developments the right way.

We can and we will pursue developments in a manner that protects the environment; that guarantees jobs and contracts for our people; and preserves our right to visit every inch of our beachfront.

We can and we will do these things because I know that we have the strength to negotiate and do business with all outside investors as equals.

And as we work to ensure responsible outside investment, we are also promoting local investment, as well.

We are proud to announce that this month the Treasure Isle Hotel will reopen under local ownership and management. One of our oldest properties will be brought into the main stream of tourism facilities.  And that also this January, the Prospect Reef Hotel will reopen with 51 newly refurbished rooms.

Taken together, these initiatives represent the most significant revitalization of our tourism product since the first great wave of development took place in the 1960s and early 1970s.

By taking these steps now, we are going to ensure that tourism continues to serve as a vital and vibrant source of employment, opportunity and economic growth for decades to come.

In addition to bolstering our tourism industry, this Government has also made a commitment to building up the other great pillar of our economy: financial services. As a result of these efforts, the financial services industry is stronger today than it has ever been before.

OUR REPUTATION AROUND THE WORLD

Our reputation around the world is better than ever thanks to the tireless efforts of our regulator and our International Finance Centre. We continue to be the #1 domicile in the world for International Business companies and we are in the top 5 in the world for hedge funds and captive insurance operations.

Thanks to the growth of this sector, we are generating hundreds of millions of dollars in revenue for our people – money that is being used to help meet critical social needs, such as buying modern medical equipment, paving roads, building community centres, upgrading schools and much more.

Finally, this Government’s programme for strengthening our economy has included a serious commitment to promoting the growth of local businesses to serve as a Third Pillar in our economy.

We have established the Small Business Bureau, which provides support and counsel to local citizens and residents interested in starting up a small business.

Just this past year, we established the Small Business Loan Guarantee programme, which will ensure that any local person seeking to start a small business will have the opportunity to secure an initial loan at favourable rates with the Government’s support;

And we have continued our ongoing commitment to strengthening and supporting the traditional sectors of agriculture and fishing.

Taken together, these steps have helped build an economy that is growing in a manner that benefits every member of our community. And there is no better evidence of that than the fact that over the past three years, this Government has twice been able to cut taxes for all citizens and residents of the BVI.

Ladies and Gentlemen: I am very proud that effective today the tax burden on our people is lower than it has ever been.

These tax cuts mean that you, the working men and women of the BVI, will be able to keep more of the money you earn – money that you can use to provide for your families – money that comes at the right moment to assist with addressing the challenge of the rising cost of living.

We were able to cut taxes on our people for one reason alone: because our growing economy is generating enough revenue so that we can cut taxes and still afford to provide all the services our people expect from their Government.

Ladies and Gentlemen: We understand very well that our economic success is not just the result of Government policies. Rather, we know that the strength of our economy is the result of the hard work, talent and dedication of our people.

This Government has been successful in growing the economy precisely because we understand that prosperity is not a “gift” for any government to bestow upon the people – rather, prosperity is the result of our people realizing their fullest potential.

We don’t believe in giving a man a fish so he can eat for a day – we believe in teaching him how to fish so he can eat forever.

The past three years have shown that when Government gives the people of the BVI the tools and the opportunities to succeed – then there is no limit to the growth our economy can realize.

And, ladies and gentlemen, the growth of our economy is not just about generating wealth. It is not just about dollars and cents. It is also about having the resources to strengthen our social infrastructure so that we can deliver the services our people need and deserve.

Over these past three years our growing economy has provided us the resources to take some remarkable steps forward.

We have been able to open the new Government Administration Complex on Virgin Gorda where I and my colleagues now take regular office hours so that we can better serve our entire community.

On the healthcare front, our growing economy has brought us to the brink of evolving our healthcare system into a truly world-class operation.

Just this past year, we opened the new Hospital Annex, which represents the first phase in fulfilling our promise to build a new Hospital.

For those of you who have not seen the new Annex I strongly encourage you to stop by and see it – it is truly a sight to see – a modern dialysis unit; a new CT Scan; and perhaps most impressive, our new emergency care unit, which is providing better care than was ever before available in our Territory --critical, life-saving care for our people at their hour of greatest need.

HEALTH INSURANCE & NEW HOSPITAL

This past year also witnessed the historic launch of our work to establish the new National Health Insurance Programme. Working with a team of experts from the University of the West Indies, we have conducted a thorough examination of the needs of our people and the resources available.

In the coming months, the UWI team will turn in their report and we will advance to the next step, which is the drafting of the legislation.

In addition, this coming month, we will be unveiling the final plans for the construction of the second phase of the new Hospital.

Ladies and Gentlemen: Without a doubt you will be hearing a lot more about the new hospital over the coming days and weeks. There are some critics who are already trying to undermine this project and turn the people against it.

Let me say this: I have spent the last 40 years of my life serving in the healthcare service of this community. I have worked in every hospital, clinic and healthcare facility this Territory has ever had.

So ladies and gentlemen, when I and my colleagues came to the task of planning for the construction of a new hospital, we did not come to the table as a bunch of amateurs trying to figure out the right thing to do.

I know precisely what the new hospital has to be in order to deliver for our people. Even in the face of criticism and attack, I will not allow us to build a hospital today that in 5 or 10 years will prove to be too small.

The new Hospital must have the capacity to meet not just the needs of today but also the needs of the future. That is why we have insisted on expanding from the original plan for 80 beds to the new plan for 137 beds.

Building that kind of capacity costs money – but that is money well spent.

And as we are expanding and improving our healthcare services, our growing economy has also allowed us to take a giant leap forward for education in the BVI.

We have completed the construction of the new Alexandrina Maduro Primary school in Baugher’s Bay

We have opened the new Learning Resource Centre at the college;

We have launched the remarkable vocation/technical programme at the college;

We have established the extraordinarily successful Department of Youth Affairs and Sports;

We are providing increased scholarship support to dozens of BVIslanders who are studying in Universities around the world;

And, of course, the year 2006 will long be remembered as the year in which the BVI proudly joined the elite group of nations on Earth that provides every single qualified citizen the right to study at college free of charge.

In the coming year, even more bold steps are planned.

By the end of the first quarter we will break ground on the new High School.

And as this Government is meeting its promises to the youngest members of our community, we are equally determined to use the resources generated by our growing economy to better meet the needs of our seniors, as well.

This past year, we completed the wonderful new Road Town Senior Centre; we are in the process of completing plans for the new Senior Citizens home at Spooner’s Estate; and we are working to ensure that healthcare services for our seniors is improving to better meet their unique needs.

Finally, our commitment to strengthening the social infrastructure includes a strong and steady focus on restoring security to our streets and neighbourhoods.

CRIME SITUATION

Ladies and Gentlemen: The issue of crime and public safety are at the top of our minds as we enter this new year. Just over a year ago, Government issued a seven point plan for tackling crime

Some accomplishments are clear. We were all pleased with the outstanding performance of the police and the support they received from the community in the recent apprehension of the murder suspects from Jamaica. Yet we also remain deeply concerned about the recent robberies.

One thing is very clear, if we are going to win the war on crime, the single most important factor will be the support of our community. If we are aware of criminals living amongst us and we refuse to identify them to the authorities – then the criminals will win.

That is why it shall be a top priority of the coming year to find ways to ensure that the police earn the trust and support of the community.

We do so with full confidence that ultimately we shall prevail – because we know that in all our hearts lies a deep pride in the BVI – a pride that will not allow us to turn our backs on the safety of our community.

BVI PRIDE

Ladies and Gentlemen: Of all our efforts over the past 3 years, none has been as close to my heart as our work to build and promote BVI Pride.

This has sometimes been a hard commitment to keep. After all, it is possible to measure a growing economy; it is possible to see a stronger social infrastructure. The same is not true about BVI Pride. It is not something that can be measured, or touched, or seen – it is something that must be felt.

BVI Pride is that sense of joy we all felt when we saw our own Taheisha Harrigan win gold.

It is what motivates us to increase local ownership of land – including the purchase of the Virgin Gorda airport, and the massive expansion of National Parks lands.

And BVI Pride is the spirit that reminds us everyday that here in the BVI our citizens, residents and friends bring to the table the brains, the talent and the drive to compete with any nation on Earth.

Every citizen, resident and friend of the BVI knows that feeling – it is not something that this or any Government created – but it is something that this Government takes seriously and is working hard to promote.

And I submit to you today – as we look ahead to the year 2007 and beyond – nothing is more important than to foster a true sense of pride here in our community.

Ladies and gentlemen, only a proud BVI is going to have the strength to meet the challenges and seize the opportunities of the future.

My friends, when I look ahead to the year 2007 and beyond – I see possibility; I see opportunity; I see hope.

I see a community that can accomplish anything we set our mind to achieving.

We can and we will build a world-class hospital right here in the BVI.

We can and we will build an outstanding new High School and a region-leading educational system.

We can and we will raise the standard of living of every single family in the Territory and achieve a level of social justice unmatched in the world.

We can and we will do all these things and so much more.

But none of these accomplishments will happen by themselves. None will be handed to us as a gift. None will be the result of luck.

We must choose to achieve these things. We must aspire, we must work, we must sacrifice and we must have courage.

That is true for all of us.

On behalf of your elected leaders, I can pledge to you today that I and my colleagues in Government will continue to do our part.

We will continue to do what we believe is right, and what this community believed was right when they elected us to office– and we will not bow in the face of criticism or attack.

Ladies and Gentlemen: 2007 is going to be an exciting and important year.

I wish every member of our community a blessed, healthy and prosperous New Year.

And I conclude by asking everyone listening to offer a prayer today that God may continue to protect and bless our community. That He may give strength and wisdom to us all and that He may forever keep our beloved British Virgin Islands.

Thank you for listening. Happy New Year.