Its close to election day and by now most of us, unless comatose or living on another planet, have read the platforms, the fancy ads and the clever slogans; heard most debates; and have some sense of where this ship is headed. One thing for sure is that theres much optimism that the next administration, regardless of who is elected, will be proactive in business generation and will push forward some sort of economic development agenda for the territory. The electorate, at least on St. Croix, has made it crystal clear — we need a dedicated and sustained effort to create jobs and uplift the quality of life in this territory, especially on St. Croix.
With this in mind, I would like to add my two cents' worth to the dialogue by recommending the immediate creation of a department of commerce and technology to exclusively focus on recruiting businesses and promoting business growth and development.
This is not entirely a novel or unique idea. Most progressive states across the country have a cabinet-level commerce department that aggressively competes for business. They offer all sorts of incentives (tax breaks, land, free or reduced utilities, workforce training, technical assistance, etc.) to attract and entice businesses for relocation to their jurisdictions. Several decades ago we had something in our territory close to a department of commerce. Unfortunately, to our detriment, it was dismantled and we lost the focus on commerce. Today, there is no department of commerce and there is no centralized government entity, except the EDC program, totally focused on business recruitment and growth.
Presently, the role of government in commerce is inefficient and oddly dispersed throughout our government in approximately two dozen or more units or offices, including in the lieutenant governors office. These fragments of commerce-related entities often work in isolation or at odds with one another, and sometimes create power fiefdoms for misguided and short-sighted public servants. It even creates opportunities for mischief, as we have seen recently in court proceedings.
The point is that most of the existing commerce-related entities in our government should be properly aligned under one umbrella agency to be led and coordinated by a visionary, business-savvy and government-savvy executive director or commerce commissioner who has been carefully selected by the governor and confirmed by the Senate. Of course legislation would be necessary; however, in the interim, there are legal and creative ways a forward-thinking governor, with the cooperation of the Senate, can act to bring about much-needed reforms.
The benefits of a new department of commerce and technology are multiple and boundless:
— It would show we understand economics and the critical role of commerce and modern technology in the development of an island economy such as ours.
— It would send a clear signal to the world of commerce and technology and its stakeholders that we are open for business in the V.I. A one-stop for business on St. Thomas and St. Croix for instance, would substantially eliminate the runaround and frustration of doing business in the V.I.
— It would communicate to our populace that the new administration is seriously committed to the goal of creating jobs by smartly attracting businesses to generate the revenues and resources we need for our schools and other essential government services for our people.
— It would show that our new administration is determined to make our government more efficient and responsive. Obviously, there are many savings and efficiencies gained by streamlining and realigning scattered and fragmented units of government.
— This proposed government realignment would also free the lieutenant governor to focus on other critical leadership responsibilities and functions, instead of being forced to manage business-related units such as corporations, trademarks, passports, banking, insurance, etc., which are now lodged by law in the office of the lieutenant governor.
— By creating this new commerce-and-technology department, the new administration would be launching a long-overdue government-reform initiative that would, in the short term, benefit every resident of the Virgin Islands.
Creating a department is not a cure all-for our time-encrusted economic ills. There are other strategic policy moves the new administration ought to make early in its inception. It must boldly address the problem of the ubiquitous eyesores in paradise. The ugly dilapidated buildings on every street and virtually every corner of our towns are not in the best interest of our community. These dilapidated structures are health hazards and give a bad impression to our citizens, tourists and visitors to our shores. The new administration must aggressively encourage and in some instances, via the force of law and penalties, compel negligent property owners to fix their properties or part with them so that these properties are developed and turned into attractive places for living and for business.
The new administration must tackle the problem of insurance and justice reform. It is a well-known fact that insurance companies shun the Virgin Islands. Insurance companies view the Virgin Islands as being very litigious. The Virgin Islands is considered a lawsuit-happy place where aggressive plaintiff attorneys often pursue even frivolous claims just to squeeze a settlement from weary employers. Our juries are also known to be excessively tough on business.
There are many other challenges to business growth and expansion the new administration must tackle. Among these are the garbage mess, the excise-tax problems and skyrocketing utility costs that are affecting many businesses, as well as the general population. Some states offer special utility rates or exemptions as an incentive to attract and keep businesses alive and profitable in their jurisdictions.
The bottom line: The new administration must be truly driven by a bold and comprehensive economic development vision and plan for the future to avert the big island and rest of the territory from further languishing in crime and despair. Of course, a new commerce and technology department would be the command center for the coordination and execution of such a plan.
Editor's note: Carmelo Rivera, a resident of St. Croix, is former president of the St. Croix Chamber of Commerce president and former labor commissioner.
Editor's note: We welcome and encourage readers to keep the dialogue going by responding to Source commentary. Letters should be e-mailed with name and place of residence to source@viaccess.net.
