State of Emergency
Guest Opinion by Dwane A. Callwood
The U.S. Virgin Islands is in a State of Emergency. Anyone who would profess otherwise either is not in touch with the plight of the working class, or probably is a recipient of a lucrative tax-exemption deal. After decades of self-help backdoor deals, one-sided agreements, unfavorable deals, economic rape and plundering, the Virgin Islands working class can no longer sustain the territory’s economy. These are difficult times, and to get us through requires difficult decisions. What steps do I think need to be taken?
The plan to make available $45 million to be paid to government employees owed retroactive wages needs to be tabled, and the money should go to WAPA. To the best of my knowledge WAPA is owed in excess of $20 million dollars by a number of government agencies, and is experiencing a cash flow problem as a result. Bring the Government’s bill current and let the remaining balance go to WAPA as a subsidy or even a loan (that may become payable via future WAPA profits). This would stop the bleeding and result in a lowering of the LEAC, thereby reducing the cost of electricity. A reduction in monthly electricity bills has the same net effect of giving every WAPA customer, including the V.I. Government, an increase in pay. Lower utility bills should also mean lower cost of everything else, in which the cost of electricity is a factor. This move provides a benefit to the ENTIRE Virgin Islands community, as opposed to just those employees who are owed retro wages. Before anyone issues a death certificate for any political future I may have, hear me out. Our elected officials are elected to make decisions that are in the best interest of the ENTIRE community and not just particular segments. Leadership functioning to benefit specific portions of the community is what has brought us to this point. So we have to decide. Do we continue down this path to destruction, or do we demand that our elected officials get off their rumps and make the tough, as opposed to popular choices.
The payment to WAPA stops the bleeding and buys us time. Time to do what? Time to bring HOVENSA and the EDC beneficiaries to the table to renegotiate their relationships with the Virgin Islands. The HOVENSA agreement is a colossal failure of Government in itself, but I’ll leave that for another editorial. The Berne ruling issued by the U.S. Court declared ALL property tax exemptions granted after 1936 ILLEGAL. Therefore, the HOVENSA agreement and all EDC Certificates that include exemption from property taxes are illegal. The Virgin Islands can no longer continue to give away the proverbial ’shirt off its back’ and then some. No longer can HOVENSA be allowed to pay the St. Lucian government a bigger share of revenues generated by refining activities at HOVENSA’s St. Croix refinery than it pays to the V.I. Government. Conditions set forth in the HOVENSA – VI Government agreement were done under the premise that HOVENSA (or ‘Hess’) was losing money. That is no longer the case. In the calendar year 2006, Hess generated record profit, no revenues, of $1.9 BILLION dollars. No longer should the price of HOVENSA’s products sold in the Virgin Islands be affected by the New York Mercantile Exchange, when we have afforded HOVENSA lucrative tax benefits for decades. No longer should the likes of Frenchman’s Reef, Bluebeard’s Castle, Westin Resort, and Wyndham enjoy such a full compliment of benefits under a program implemented to attract NEW businesses to the territory. Correcting these practices would ensure new and sustainable revenues, and lower operating expenses for the Government. These revenues can then be applied towards improving the quality of life in the Virgin Islands. Who disagrees that more money could be spent improving our educational environment, our hospitals, our tourism product, infrastructure, agricultural pursuits, etc.
Unfortunately, I am not 100% convinced that we have in place enough leaders to make these tough choices. I would love to be proven wrong. Nothing that I said here is written in stone. This is just how I see it from where I stand. I am not a ‘politically correct’ person, nor will I ever be one. I call it as I see it, and my only motivation is my desire to ensure a better Virgin Islands for my children to call ‘Home Sweet Home.’
Dwane A. Callwood
St. Thomas
Do you really think that this is a priority of this administration? Please…….
I agree Dave, this administration has its priority backwards.
Brilliant thinking Dwane, but do you think those that are looking forward to that money can see the bigger picture you are prresenting? Are we willing to pay WAPA now so that we
can decrease our electric bills now and pay the retro
later after neogiating with Hovensa, EDC etc to reap millions due us? Do our governor and senators have the guts to make the difficult decisions? It does not appear so because the governor signed the bill for the retro payments and he was praised by some senators.
I agree that we are facing a crisis in the V. I. The rich is getting richer and poor is getting poorer. Those of us affected and hurting must stand up. Our public officials must work for us or we must vote them out. I think we need a new slate of senators who are going to specifically address the WAPA , housing, educational and crime situations and, a new governor as well.The businesses and the rich are thriving while the poor is suffering in unimaginable ways. The state of the V. I.is worst than a year ago. Perhaps you should run for senator or governor.
Chantel, you couldnt have expressed it any better…the business and the rich are thriving while the poor is suffering, Dejongh is clearly for the rich.
How would you like to have your lease on a house or business, or the terms of your mortgage ‘renegotiated’ right after you sign it?
Cruzan, I don’t understand your comment. Are you saying that Hovensa has newly negoiated a contract with the government and that is the only contract they have negoiated over the years? I don’t think so.
Do you agree that Hovensa is reaping benefits from the VI and not giving much in return? Why is Venezula
reaping more benefits from Hovensa than the Virgin Islands? It is about time VI start benefiting from big businesses, especially since we are in a financial crisis. Our WAPA bills could decrease if the
excutive branch demanded more from Hovensa and those businesses who receive big tax exemptions. Let some of the money remain in the islands.
Cruzan,
have you EVER read the last agreement between Hess (Hovensa) and the VI government? If you had you would know that the ENTIRE premise upon which Hess got the Government to come to the negotiatuing table to grant the refinery ADDITIONAL CONCESSIONS was the ” state of economic distressthat existed in the oil industry” Oil companies have been reporting record profits almost entirely across the board. If you are not convinced that that is reasonable ground to ask HOVENSA To come back to the table, perhaps you should contact the V.I. Public Finance Authority and inquiry as to the dates and dollar amounts of “Private Activity Bonds” floated on behalf of Hess/Hovensa within the past 7 years alone. While you’re at it, find out from Hovensa how many Millions of dollars they have saved by obtaining capital via the PFA bonds, as opposed to going onto the open Bond market for capital. Want more? There’s also the $1Billion lawsuit filed against HOVENSA by former DPNR Commissioner in reference to some 25 Million BARRELS, not gallons, of oil pumped out of the underground water table beneath Hovensa. Don’t believe the spill exists, email me I can send you the EPA documents. I think I have given you plenty of food for thoughts, or if you’re a Hovensa employee, plenty for you to take back to the spinmasters at Hovensa. Let me set the record straight. Ever since my guest editorial, people have tried to paint me as being anti-Hovensa. I don’t blame nor fault Hovensa one bit, for the agreement and treatment that they’ve recived from the VI government. They are a for-profit business and as such, it is their responsibility to their shareholders to generate as much profit as possible. Any fault or blame has to be placed squrely in the lap of the VI government. I AM NOT anti-Hovensa. I AM NOT anti-EDC benficiaries. I AM PRO-FAIR SHARE. Until my next editorial, Peace to ALL
Thank you Dwwane for filling in the details and clarifying why the government needs to return to the table with Hovensa and others for the betterment of the V.I. Let’s keep the pressure on the government to work for its people. Where are the senators and talk show hosts on this?
Dwane Callwood. I like your intelligence, sense of fairness and that you present only factual information
with documentation to back up what you are say. You are a breath of fresh air. Continue the good work andublic I look forward to seeing you in a more position.
Mr. Callwood, you are ridiculous. Hovensa is the only company keeping the economy of St. Croix from collapsing. Without Hovensa, thousands of people would be unemployed. If you feel that steeply taxing Hovensa is the solution then that is fine. However, when Hovensa lays off a bunch of its employees, you will be sorry.
You need to start being more appreciative of Hovensa and actually seeing what Hovensa has done for the island, a lot!