A fabulous read at Groundation Grenada…
… considering the DLP government gave the same sort of outrageous concessions to Sandals Barbados.
“To lay, with one hand, the power of the government on the property of the citizen and with the other to bestow it upon favored individuals to aid private enterprises and build up private fortunes is none the less a robbery…” ~ Samuel Miller
In an act screaming of blunderbuss and willful myopia, last weekend, the Government of Grenada saw it fit to award a multi-million dollar private enterprise (Sandals Resort International) a multiple tax break….
In layman’s terms (because taxation jargon is notoriously opaque) this means that Sandals pays zero taxes on all profits it makes in Grenada. For thirty years.
It certainly isn’t our intention to belittle an investment of $100 million US dollars (or rather far less, as earlier explained) in these tight economic times. Even with the promise of an additional 200 jobs raising rising to a headcount of 400 based on Sandals’ press release.
Still the forbearance on the revenues given a waiver in this deal strikes as way too much given for way too little.
Must we always genuflect before these gods of “foreign investment”? Without a doubt, with some ingenuity, creativity and imagination, our own local manufacturing and agro industries could be supported in a similar fashion to create much more than 200 jobs, and without requiring such deep tax cuts.
This decision is also a foolish one because it belies our naïve and amateur approach to marketing and foreign investment and our inability to recognise that our country is a partner, not a charity.
… a few sentences culled from a brilliant article at Groundation Grenada: Deal or No Deal: Grenada-Sandals Partnership Debunked