Opposition leader Dr. Ralph Gonsalves has described as ‘laughable’ an announcement by the ruling New Democratic Party (NDP) its support for the government’s decision to sell approximately 100 acres of land at Chatham Bay, Union Island, for approximately EC$54 million (One EC dollar=US$0.37 cents).
The NDC in a statement over the weekend said that the sale is being done under an agreement designed to protect the area’s biodiversity while strengthening the country’s fiscal position.
‘The lands are to be held by a company for conservation purposes, with binding covenants included in the sale agreement to ensure that the natural environment and biodiversity of the area are protected,’ the ruling party said. But Gonsalves noted that 15 years ago when the land was evaluated as a result of approaches made by foreign investors, it was valued at approximately ‘US$42 million or thereabouts and that’s over EC$110 million.
‘That’s over 15 years ago and then that arrangement didn’t go through because some of the investors in respect of the resort went elsewhere,’ he said, noting that another person wanted to purchase the land in order to preserve it as a national park.
‘I told him simply that we will not sell that as a national park. We want it for investments. In fact, the initial inland holding licence which had been given to that property under the James Mitchell administration was for a small hotel development with a restaurant. Not a big investment of the type which we were envisaging with the French, Belgian and Indian (investors).
‘But this gentleman…he is a citizen of St. Vincent…and I told him, no, we couldn’t sell him the land to keep it as a park. I told him that it’s 100 acres of prime land, it’s our crown jewel and I just couldn’t do that.
‘We have to do it for the purpose of hotel development, resort development, so we can employ jobs, employ people and we can generate a lot of revenue and be a big boost for Union Island and the Southern Grenadines. I said we can have part of the land which we can use for conservation and environmental purposes, but the bulk of it would have to be involved in genuine resort development. He wasn’t interested in that,’ Gonsalves added.
In its statement supporting the Godwin Friday’s decision to sell the land, the NDP said that Chatham Bay is located near important forest reserves, including Water Rock Reserve, Large Forest Reserve, Colin Campbell Reserve and Jack O’Dan Reserve.
‘These areas are of significant ecological importance and are associated with the habitat of the endangered Union Island Gecko, a species found only in St. Vincent and the Grenadines and will receive strengthened protection in coming months. ‘
The ruling party said that it also understands that the decision to proceed with the sale forms part of the government’s wider effort to reduce the heavy debt burden left by the previous Gonsaves’led administration, ‘whose years of fiscal mismanagement contributed to the country’s debt reaching approximately 113 per cent of gross domestic product (GDP).
‘This level of indebtedness has placed serious pressure on the State’s ability to fund critical needs, including healthcare, national development programmes and public-sector reform,’ the party said, quoting Prime Minister Friday as stating that ‘proceeds from the sale will be directed towards clearly identified national priorities’.
It said this include contributing to the capitalisation of the National Development Bank, supporting the new Ministry of Fisheries, Land and Sea Conservation and Climate Resilience, and funding debt-reduction measures and initiatives aimed at improving Government efficiency.
The NDP said that in addition, ‘and most importantly the sale includes a significant safeguard for the public interest’ adding that ‘under the agreement, the Government retains the option to repurchase the lands within two years at the same price for which it was sold’.
It said Prime Minister Friday said the transaction reflects the government’s commitment to responsible fiscal management, environmental protection and transparency.
‘This transaction reflects responsible Government: protecting our natural heritage, reducing debt, and investing in the future of our people. The public interest is protected through conservation covenants,’ the Prime Minister said.
The NDP recalled that several years ago, the lands were reacquired by the Gonsalves government after a private investor failed to develop the property for a proposed tourism project.
‘The land was brought back into Government ownership at a compensation value of less than EC$700,000. The current transaction therefore represents a substantial capital gain to the people of St. Vincent and the Grenadines, while placing conservation at the centre of the land’s future use.
‘The NDP supports the Government’s commitment to transparency, responsible land management and the protection of St. Vincent and the Grenadines’ natural heritage. ‘
But Gonsalves said the statement by the NDP is ‘laughable’ recalling that prior to his Unity Labour Party (ULP) coming into office in 2001, the then ruling NDP had given an American investors a landholding licence in relation to the land.
‘The purchase, imagine the purchase price at the time from the vendor, was under $200,000. It was obviously sold at a price way below market value…and as I said in the court case, for them to save on stamp duty, I don’t know how any government could have allowed that to have happened.’
But Gonsalves said that the investors breached the Alien Landholding licence because for 15 or so years, ‘they did absolutely nothing’.
Gonsalves said on coming into office he directed the the Attorney General’s office ‘to go for forfeiture under the 1922 legislation’ being successful at both the High Court and the Court of Appeal.
He said just before the matter went to the London-based Privy Council, which is the country’s highest and final court, ‘they threw in their towel as I expected.
‘But I told them all along that I will pay them the price, which they paid for it on the face of their deed, plus five per cent interest, which is what I did…. They wanted more,’ he said, after valuing the property at $20 million’.
But Gonsalves said that the government paid less than $700,000 ‘because…we had two judgments behind us and I said, ok, we’ll pay you what you paid out, plus five per cent interest, up to the date.’
He said the investors accepted the payment which is recounted in his book, recalling also how the United States government had sent an official here ‘to put pressure on me’
Gonsalves said that with regards to the government now indicating that after 20 years it had been able to sell the land for US$20 million is beyond belief.
‘Absolutely not, and not only would I not sell it for that,’ Gonsalves said, recalling where 30 something acres of land at Mount Wynn was sold for EC$40 million.