Philipsburg:---Councilwoman Maria Buncamper-Molanus cautions the Executive Council about reinventing the wheel and wasting precious human resources and time.
The Councilwoman is referring to the idea of establishing an e-zone (economic zone) on St. Maarten. This topic appeared in the local media in August when the present commissioner of economic affairs met with a group of interested business people.
“With the objective of achieving a balanced and managed economic growth, consistent with the constraints of the island (i.e. size of land, resources, labor market, educational facilities, health and social services) the government commissioned and received several studies aimed at this objective, including the Carrying Capacity Study, the Tourism Master Plan (Tourmap) and the Economic Diversification Study (EDS), to provide a basis to develop and implement an social-economic strategy. The Social Economic Initiative (SEI), which was prepared in collaboration with the Netherlands, provides coherent program with measures aimed at improving the start-position of Sint Maarten as a prospective new country within the Kingdom of the Netherlands; this program will replace the current Comprehensive Economic Development Plan (CEDP) as a frame work for joint funding by the Dutch and Sint Maarten governments of the socioeconomic development”. This is a quote from the DP Government Governing Program 2007-2011.
It is about creating an attractive tax environment says the former commissioner of economic affairs. “Falling under the umbrella of diversification, the DP Executive Council already did the necessary research and received a report from KPMG regarding this topic. The DP Government also had, the previously mentioned diversification study, done in which financial services, was listed as a feasible economic activity among others. In February of this year councilwoman Buncamper-Molanus, then commissioner of economic affairs, traveled to Curacao with among others the Director of Economic Research and Development on a fact finding mission and met with the relevant persons in this field in Curacao including the State Secretary Mr. Alex Rosaria”.
Finding our niche was the recommendation given from all corners when it comes to developing our financial services. We should be cautious not to copy Curacao or anyone else for that matter, as St. Maarten has its own unique market say the Councilwoman.
The Harbour through its chairman expressed the interest in establishing, for the purpose of being competitive, an economic zone for transshipment. In addition the American University of the Caribbean, represented by attorney Suzy Romer, met with the DP Executive Council to discuss their interest in applying for an economic zone for this educational institution as they approached the end of their tax holiday.
Parallel to this, far reaching discussions were held with Soualiga Development Group who submitted a proposal to Government to help St. Maarten prepare the establishment of our very own “Bureau Intellectual properties”.
This same group was also preparing a proposal for the establishment of an office that could properly facilitate businesses interested in doing business on St. Maarten within the e(conomic)-zone. This would naturally only be possible after St. Maarten effectuates the federal legislation. The latter being a rather simple process of bringing a draft ordinance to the island council for approval.
The assignment was given to the department of economic development and research in May of this year by the DP Executive Council to prepare the draft legislation, making it possible to establish economic zones on St. Maarten.
However government should not act without properly evaluating the pro and cons of establishing geographical economic zones compared to establishing economic zones in particular service areas. The wrong decision could distort the economy to such an extent that instead of generating more employment and revenues the contrary takes place.
At the end of the day the benefit to the overall economy must be the primary objective. This is no simple subject, but if properly done can be the solution to totally changing the labour market, elevating it to the level necessary to create job opportunities particularly at middle and high income levels.
“It must be emphasized that precious resources have already been invested in research, reports, and the NA/Heyliger Executive Council should not simply discard this investment made because the process was initiated by the Democratic Party Government. The draft legislation should be presented to the Island Council and should the present Executive Council choose not to do so, the Democratic Party faction will,” concludes Councilwoman Maria Buncamper-Molanus.