The federal government will help the Virgin Islands help itself, but it won't bail the territory out of its financial morass, federal officials made clear Friday.
But as part of the help it is willing to give, Frederick P. DuVal, deputy assistant to the president and co-chair of the joint federal-V.I. financial task force, announced that the Federal Emergency Management Agency had waived for 60 days the territory's $1.5 million quarterly loan payment.
That, and $400,000 earmarked for an audit to examine the V.I. government's finances, constituted the federal group's immediate financial commitments to help the territory.
The task force, made up of 10 federal and 10 V.I. officials, including Gov. Charles W. Turnbull and Rudolph Krigger, Turnbull's special assistant on financial matters, met behind closed doors at Government House. The message that emerged was exactly what the feds had said before they arrived in the territory: no bailout.
DuVal said President Clinton favored a return of the full rum-excise tax of $13.50 to the territory and would pursue the matter vigorously. It is up to the Congress, however, to pass any legislation on the rum tax rebate, which last year reverted from $11.30 to $10.50 per proof gallon.
The $3-per-gallon increase could bring an additional $8 million to $10 million into the territory's coffers.
V.I. Delegate Donna Christian-Christensen was not at the meeting because she was leading a Congressional Black Caucus "Spring Health Braintrust" in Washington, but she sent her legislative director, Brian Modeste.
Christensen's participation is key to achieving a flow of revenue through legislation. She is working on a tax credit for local jewelry makers that DuVal said the president also supports.
The group agreed to work on a 30-day timetable to develop a plan to submit for legislative action in Congress.
