GROWTH POTENTIAL

IT is anticipated in a few short years, once all goes well, this country’s International Business and Financial Services sector could be contributing in excess of one billion dollars annually to the economy.

Minister of Industry, International Business, Commerce and Small Business Development, Donville Inniss made that point as he, and Director of International Business, Kevin Hunte, assured stakeholders within the sector that Government remains committed to it.

The two were speaking yesterday morning during the opening of the Stakeholder Meeting with the Organisation for Economic Co-operation and Development (OECD) at the Lloyd Erskine Sandiford Centre. That session was hosted by the International Business Division of the Ministry of Industry, International Business, Commerce and Small Business Development.

Inniss told those gathered that going forward, it is important to look for opportunities to advance the sector. He said it is also important to look at what Barbados needs to do in respect of restructuring and redefining its international business and financial services sector, so that the country is best able to grab hold of any opportunities that exist.

“When I look at the BEPS [Base Erosion and Profit Shifting] initiative and the 15-point action plan, I am satisfied this creates an excellent opportunity for you as service providers and for us as a nation. The march is towards getting businesses of substance and… Barbados offers, perhaps above other jurisdictions in our space, an opportunity to attract and retain businesses of substance. I am therefore satisfied that once we are all moving in the same direction, the international business and financial services sector will be contributing well in excess of a billion dollars per year to the Barbados economy within the next two to three years,” he added.

His comments came as he suggested that other domiciles, which do not have the necessary structures and human resources for the sector in place, will come under immense pressure to provide the level of substance that the new international business architecture is demanding. Inniss said Barbados is therefore fortunate to have an abundance of lawyers, accountants, tax specialists and service providers that allow this jurisdiction to take on a lot more business. But, he said if we are to successfully achieve that, the “right regulatory environment and the right kind of legislative products” are needed.

“That’s why in the deliberation today I urge you to start drilling down into the kind of regimes we have and the changes we have to make. I wish to disabuse your minds of any thoughts that the Ministry or the department has already committed to the new legislation that is necessary for us to address the myriad of issues like ring-fencing for example,” he said.

Inniss explained that they have only agreed in principle as to what products Barbados has that may be harmful, and what areas would by extension, have to be tightened to get the right mix for all involved – the regulators, Barbados as a domicile and the clients the country is seeking to attract.

Meanwhile, Hunte made it clear that there is no intention, aim, plan or contemplation of Government to close the international business and financial services sector as has been rumoured. Rather, he said, the goal is to reposition, reinvent, innovate, strengthen and expand the sector within a global arena. That, he said, will no doubt require the co-operation of Government and private sector stakeholders at the highest level. To that end, he alluded that the meeting was a timely one and he encouraged all present to participate fully in the discussions. (JRT)