Sept. 18, 2002 – St. Croix trash haulers were back on the job Wednesday after a two-day work stoppage stemming from the Public Works Department's failure to pay for collection services since the end of July.
The Senate Finance Committee, in response to earlier talks of an impending strike, voted on Tuesday for a plan to come up with the cash needed to keep mounds of garbage around the island from growing.
The committee's strategy turned out to be the same one it had rejected on Sept. 4 — thus fueling the work stoppage: an appropriation transfer of almost $1 million from a utilities fund within Public Works to another fund that would facilitate making payments to the St. Croix and St. Thomas haulers.
On Sept. 4, Sen. Alicia Hansen, the committee chair, and Sen. Norma Pickard-Samuel voted against DPW's request for the funds transfer after finding that at least part of the money in the utilities fund was earmarked for street light repairs. Sens. Norman Jn Baptiste and Carlton Dowe voted in favor of the motion, and Sen. Donald "Ducks" Cole abstained.
"I made a motion to approve [the transfer] then, and I don't regret it," Dowe said Tuesday, according to The Avis. "It was a personal decision as to whether or not we're going to do what is happening now and allow the garbage to pile up. It was right two weeks ago, and it's right today."
The 24th Legislature transferred responsibility for the territory's street light maintenance from Public Works to the Water and Power Authority last year. However, much needed maintenance work has gone undone, as money appropriated to help start up the initiative has yet to be released.
Hansen said the Finance Committee met extensively with DPW officials in efforts to find alternative funding for the garbage haulers but concluded that the only solution was to take $1 million from the utilities fund.
"Everyone in this community knows we have a crisis with street lighting," Hansen said.
"Darkness breeds crime. But we agreed that the $1 million will not affect the street lighting funding."
Hansen, along with Finance Commissioner Bernice Turnbull and Ira Mills, director of the Office of Management and Budget, assured the garbage haulers their checks will be cut by Friday.
She said the funding was upped by more than $80,000 to guard against a shortfall next year.
Public Works Commissioner Wayne Callwood said the lag in payments came about because only $4.9 million of the $6.4 million DPW requested last year to cover trash collection costs was allotted.
Even after it was apparent the haulers could expect payment this week, there was a question as to whether they would return to work. The government owes the island's four contracted trash collection companies an accumulated debt of around $775,000 for services in years past.
Fergutrax owner Dwayne Fergus, who oversees collections at the Anguilla landfill, is owed the bulk of that debt — $649,000 for services since 2000.
Fergus said he wants a note "with some good signatures" from government officials that would prove to tax collectors and those he owes that the money is on its way.
Gary Thomas, owner of Paradise Waste, pointed out that even though the government owes some of them money from as much as six years ago, the companies get no interest or tax breaks on the debt. In contrast, he noted, "Whenever the haulers owe the V.I. government money, they are assessed penalties and interest."
James Bates of Bates Trucking told the committee the haulers were prepared to go back on the job Wednesday — conditionally. "We agree to go back to work with the money you paid us here today," he said. But, he added, by the end of September, they expect to see another Senate committee session that will spell out when the old debts will be paid.
Lloyd Daniel, owner of Dan's Trucking, stressed that the haulers' strike was not politically motivated. "We're not political," he said. "We would like to think our purpose is trash collecting."
Hansen pledged her commitment to come up with money to clear up the debt, noting that she has some ideas. "I already think in my mind where it can come from, but we'll have to analyze it well," she said, adding, "I don't see another dime coming from within Public Works."
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TRASH HAULERS BACK TO WORK – CONDITIONALLY
Sept. 18, 2002 – St. Croix trash haulers were back on the job Wednesday after a two-day work stoppage stemming from the Public Works Department's failure to pay for collection services since the end of July.
The Senate Finance Committee, in response to earlier talks of an impending strike, voted on Tuesday for a plan to come up with the cash needed to keep mounds of garbage around the island from growing.
The committee's strategy turned out to be the same one it had rejected on Sept. 4 — thus fueling the work stoppage: an appropriation transfer of almost $1 million from a utilities fund within Public Works to another fund that would facilitate making payments to the St. Croix and St. Thomas haulers.
On Sept. 4, Sen. Alicia Hansen, the committee chair, and Sen. Norma Pickard-Samuel voted against DPW's request for the funds transfer after finding that at least part of the money in the utilities fund was earmarked for street light repairs. Sens. Norman Jn Baptiste and Carlton Dowe voted in favor of the motion, and Sen. Donald "Ducks" Cole abstained.
"I made a motion to approve [the transfer] then, and I don't regret it," Dowe said Tuesday, according to The Avis. "It was a personal decision as to whether or not we're going to do what is happening now and allow the garbage to pile up. It was right two weeks ago, and it's right today."
The 24th Legislature transferred responsibility for the territory's street light maintenance from Public Works to the Water and Power Authority last year. However, much needed maintenance work has gone undone, as money appropriated to help start up the initiative has yet to be released.
Hansen said the Finance Committee met extensively with DPW officials in efforts to find alternative funding for the garbage haulers but concluded that the only solution was to take $1 million from the utilities fund.
"Everyone in this community knows we have a crisis with street lighting," Hansen said.
"Darkness breeds crime. But we agreed that the $1 million will not affect the street lighting funding."
Hansen, along with Finance Commissioner Bernice Turnbull and Ira Mills, director of the Office of Management and Budget, assured the garbage haulers their checks will be cut by Friday.
She said the funding was upped by more than $80,000 to guard against a shortfall next year.
Public Works Commissioner Wayne Callwood said the lag in payments came about because only $4.9 million of the $6.4 million DPW requested last year to cover trash collection costs was allotted.
Even after it was apparent the haulers could expect payment this week, there was a question as to whether they would return to work. The government owes the island's four contracted trash collection companies an accumulated debt of around $775,000 for services in years past.
Fergutrax owner Dwayne Fergus, who oversees collections at the Anguilla landfill, is owed the bulk of that debt — $649,000 for services since 2000.
Fergus said he wants a note "with some good signatures" from government officials that would prove to tax collectors and those he owes that the money is on its way.
Gary Thomas, owner of Paradise Waste, pointed out that even though the government owes some of them money from as much as six years ago, the companies get no interest or tax breaks on the debt. In contrast, he noted, "Whenever the haulers owe the V.I. government money, they are assessed penalties and interest."
James Bates of Bates Trucking told the committee the haulers were prepared to go back on the job Wednesday — conditionally. "We agree to go back to work with the money you paid us here today," he said. But, he added, by the end of September, they expect to see another Senate committee session that will spell out when the old debts will be paid.
Lloyd Daniel, owner of Dan's Trucking, stressed that the haulers' strike was not politically motivated. "We're not political," he said. "We would like to think our purpose is trash collecting."
Hansen pledged her commitment to come up with money to clear up the debt, noting that she has some ideas. "I already think in my mind where it can come from, but we'll have to analyze it well," she said, adding, "I don't see another dime coming from within Public Works."
Publisher's note : Like the St. Croix Source now? Find out how you can love us twice as much — and show your support for the islands' free and independent news voice … click here.
The Senate Finance Committee, in response to earlier talks of an impending strike, voted on Tuesday for a plan to come up with the cash needed to keep mounds of garbage around the island from growing.
The committee's strategy turned out to be the same one it had rejected on Sept. 4 — thus fueling the work stoppage: an appropriation transfer of almost $1 million from a utilities fund within Public Works to another fund that would facilitate making payments to the St. Croix and St. Thomas haulers.
On Sept. 4, Sen. Alicia Hansen, the committee chair, and Sen. Norma Pickard-Samuel voted against DPW's request for the funds transfer after finding that at least part of the money in the utilities fund was earmarked for street light repairs. Sens. Norman Jn Baptiste and Carlton Dowe voted in favor of the motion, and Sen. Donald "Ducks" Cole abstained.
"I made a motion to approve [the transfer] then, and I don't regret it," Dowe said Tuesday, according to The Avis. "It was a personal decision as to whether or not we're going to do what is happening now and allow the garbage to pile up. It was right two weeks ago, and it's right today."
The 24th Legislature transferred responsibility for the territory's street light maintenance from Public Works to the Water and Power Authority last year. However, much needed maintenance work has gone undone, as money appropriated to help start up the initiative has yet to be released.
Hansen said the Finance Committee met extensively with DPW officials in efforts to find alternative funding for the garbage haulers but concluded that the only solution was to take $1 million from the utilities fund.
"Everyone in this community knows we have a crisis with street lighting," Hansen said.
"Darkness breeds crime. But we agreed that the $1 million will not affect the street lighting funding."
Hansen, along with Finance Commissioner Bernice Turnbull and Ira Mills, director of the Office of Management and Budget, assured the garbage haulers their checks will be cut by Friday.
She said the funding was upped by more than $80,000 to guard against a shortfall next year.
Public Works Commissioner Wayne Callwood said the lag in payments came about because only $4.9 million of the $6.4 million DPW requested last year to cover trash collection costs was allotted.
Even after it was apparent the haulers could expect payment this week, there was a question as to whether they would return to work. The government owes the island's four contracted trash collection companies an accumulated debt of around $775,000 for services in years past.
Fergutrax owner Dwayne Fergus, who oversees collections at the Anguilla landfill, is owed the bulk of that debt — $649,000 for services since 2000.
Fergus said he wants a note "with some good signatures" from government officials that would prove to tax collectors and those he owes that the money is on its way.
Gary Thomas, owner of Paradise Waste, pointed out that even though the government owes some of them money from as much as six years ago, the companies get no interest or tax breaks on the debt. In contrast, he noted, "Whenever the haulers owe the V.I. government money, they are assessed penalties and interest."
James Bates of Bates Trucking told the committee the haulers were prepared to go back on the job Wednesday — conditionally. "We agree to go back to work with the money you paid us here today," he said. But, he added, by the end of September, they expect to see another Senate committee session that will spell out when the old debts will be paid.
Lloyd Daniel, owner of Dan's Trucking, stressed that the haulers' strike was not politically motivated. "We're not political," he said. "We would like to think our purpose is trash collecting."
Hansen pledged her commitment to come up with money to clear up the debt, noting that she has some ideas. "I already think in my mind where it can come from, but we'll have to analyze it well," she said, adding, "I don't see another dime coming from within Public Works."
Publisher's note : Like the St. Croix Source now? Find out how you can love us twice as much — and show your support for the islands' free and independent news voice … click here.
TRASH HAULERS BACK TO WORK – CONDITIONALLY
Sept. 18, 2002 – St. Croix trash haulers were back on the job Wednesday after a two-day work stoppage stemming from the Public Works Department's failure to pay for collection services since the end of July.
The Senate Finance Committee, in response to earlier talks of an impending strike, voted on Tuesday for a plan to come up with the cash needed to keep mounds of garbage around the island from growing.
The committee's strategy turned out to be the same one it had rejected on Sept. 4 — thus fueling the work stoppage: an appropriation transfer of almost $1 million from a utilities fund within Public Works to another fund that would facilitate making payments to the St. Croix and St. Thomas haulers.
On Sept. 4, Sen. Alicia Hansen, the committee chair, and Sen. Norma Pickard-Samuel voted against DPW's request for the funds transfer after finding that at least part of the money in the utilities fund was earmarked for street light repairs. Sens. Norman Jn Baptiste and Carlton Dowe voted in favor of the motion, and Sen. Donald "Ducks" Cole abstained.
"I made a motion to approve [the transfer] then, and I don't regret it," Dowe said Tuesday, according to The Avis. "It was a personal decision as to whether or not we're going to do what is happening now and allow the garbage to pile up. It was right two weeks ago, and it's right today."
The 24th Legislature transferred responsibility for the territory's street light maintenance from Public Works to the Water and Power Authority last year. However, much needed maintenance work has gone undone, as money appropriated to help start up the initiative has yet to be released.
Hansen said the Finance Committee met extensively with DPW officials in efforts to find alternative funding for the garbage haulers but concluded that the only solution was to take $1 million from the utilities fund.
"Everyone in this community knows we have a crisis with street lighting," Hansen said.
"Darkness breeds crime. But we agreed that the $1 million will not affect the street lighting funding."
Hansen, along with Finance Commissioner Bernice Turnbull and Ira Mills, director of the Office of Management and Budget, assured the garbage haulers their checks will be cut by Friday.
She said the funding was upped by more than $80,000 to guard against a shortfall next year.
Public Works Commissioner Wayne Callwood said the lag in payments came about because only $4.9 million of the $6.4 million DPW requested last year to cover trash collection costs was allotted.
Even after it was apparent the haulers could expect payment this week, there was a question as to whether they would return to work. The government owes the island's four contracted trash collection companies an accumulated debt of around $775,000 for services in years past.
Fergutrax owner Dwayne Fergus, who oversees collections at the Anguilla landfill, is owed the bulk of that debt — $649,000 for services since 2000.
Fergus said he wants a note "with some good signatures" from government officials that would prove to tax collectors and those he owes that the money is on its way.
Gary Thomas, owner of Paradise Waste, pointed out that even though the government owes some of them money from as much as six years ago, the companies get no interest or tax breaks on the debt. In contrast, he noted, "Whenever the haulers owe the V.I. government money, they are assessed penalties and interest."
James Bates of Bates Trucking told the committee the haulers were prepared to go back on the job Wednesday — conditionally. "We agree to go back to work with the money you paid us here today," he said. But, he added, by the end of September, they expect to see another Senate committee session that will spell out when the old debts will be paid.
Lloyd Daniel, owner of Dan's Trucking, stressed that the haulers' strike was not politically motivated. "We're not political," he said. "We would like to think our purpose is trash collecting."
Hansen pledged her commitment to come up with money to clear up the debt, noting that she has some ideas. "I already think in my mind where it can come from, but we'll have to analyze it well," she said, adding, "I don't see another dime coming from within Public Works."
Publisher's note : Like the St. Thomas Source now? Find out how you can love us twice as much — and show your support for the islands' free and independent news voice … click here.
The Senate Finance Committee, in response to earlier talks of an impending strike, voted on Tuesday for a plan to come up with the cash needed to keep mounds of garbage around the island from growing.
The committee's strategy turned out to be the same one it had rejected on Sept. 4 — thus fueling the work stoppage: an appropriation transfer of almost $1 million from a utilities fund within Public Works to another fund that would facilitate making payments to the St. Croix and St. Thomas haulers.
On Sept. 4, Sen. Alicia Hansen, the committee chair, and Sen. Norma Pickard-Samuel voted against DPW's request for the funds transfer after finding that at least part of the money in the utilities fund was earmarked for street light repairs. Sens. Norman Jn Baptiste and Carlton Dowe voted in favor of the motion, and Sen. Donald "Ducks" Cole abstained.
"I made a motion to approve [the transfer] then, and I don't regret it," Dowe said Tuesday, according to The Avis. "It was a personal decision as to whether or not we're going to do what is happening now and allow the garbage to pile up. It was right two weeks ago, and it's right today."
The 24th Legislature transferred responsibility for the territory's street light maintenance from Public Works to the Water and Power Authority last year. However, much needed maintenance work has gone undone, as money appropriated to help start up the initiative has yet to be released.
Hansen said the Finance Committee met extensively with DPW officials in efforts to find alternative funding for the garbage haulers but concluded that the only solution was to take $1 million from the utilities fund.
"Everyone in this community knows we have a crisis with street lighting," Hansen said.
"Darkness breeds crime. But we agreed that the $1 million will not affect the street lighting funding."
Hansen, along with Finance Commissioner Bernice Turnbull and Ira Mills, director of the Office of Management and Budget, assured the garbage haulers their checks will be cut by Friday.
She said the funding was upped by more than $80,000 to guard against a shortfall next year.
Public Works Commissioner Wayne Callwood said the lag in payments came about because only $4.9 million of the $6.4 million DPW requested last year to cover trash collection costs was allotted.
Even after it was apparent the haulers could expect payment this week, there was a question as to whether they would return to work. The government owes the island's four contracted trash collection companies an accumulated debt of around $775,000 for services in years past.
Fergutrax owner Dwayne Fergus, who oversees collections at the Anguilla landfill, is owed the bulk of that debt — $649,000 for services since 2000.
Fergus said he wants a note "with some good signatures" from government officials that would prove to tax collectors and those he owes that the money is on its way.
Gary Thomas, owner of Paradise Waste, pointed out that even though the government owes some of them money from as much as six years ago, the companies get no interest or tax breaks on the debt. In contrast, he noted, "Whenever the haulers owe the V.I. government money, they are assessed penalties and interest."
James Bates of Bates Trucking told the committee the haulers were prepared to go back on the job Wednesday — conditionally. "We agree to go back to work with the money you paid us here today," he said. But, he added, by the end of September, they expect to see another Senate committee session that will spell out when the old debts will be paid.
Lloyd Daniel, owner of Dan's Trucking, stressed that the haulers' strike was not politically motivated. "We're not political," he said. "We would like to think our purpose is trash collecting."
Hansen pledged her commitment to come up with money to clear up the debt, noting that she has some ideas. "I already think in my mind where it can come from, but we'll have to analyze it well," she said, adding, "I don't see another dime coming from within Public Works."
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MAN SHOT IN HOUSING COMPLEX DIES AFTER SURGERY
Sept. 17, 2002 – A St. Thomas man who was shot multiple times Tuesday afternoon died around 9 p.m. at Roy L. Schneider Hospital after undergoing emergency surgery.
Police sources confirmed the death of Dan'l Liburd, 24, about six hours after he was shot while standing outside Building 7 of the Michael J. Kirwan Terrace public housing community.
Deputy Police Chief Theodore Carty said Liburd told investigators that he did not know his assailants and described the shooting as a drive-by.
Carty said Liburd was shot in the neck, groin, left leg and chest.
Knowledgeable sources said late Tuesday night that within hours of the shooting, Azula Nibbs, 20, a resident of Lindbergh Bay, surrendered to officers at the VIPD Investigation Bureau in connection with the case. While Nibbs was being questioned by police, the source said, Major Crime Unit detectives learned that Liburd had died of his injuries.
Moments later, charges against Nibbs were upgraded from assault to first-degree murder. The accused was remanded to the Corrections Bureau pending an initial court appearance set for Wednesday.
Liburd's death was the 18th homicide on St. Thomas this year and the 30th territorywide. At this time last year, there had been seven slayings on St. Thomas and 16 throughout the territory.
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Police sources confirmed the death of Dan'l Liburd, 24, about six hours after he was shot while standing outside Building 7 of the Michael J. Kirwan Terrace public housing community.
Deputy Police Chief Theodore Carty said Liburd told investigators that he did not know his assailants and described the shooting as a drive-by.
Carty said Liburd was shot in the neck, groin, left leg and chest.
Knowledgeable sources said late Tuesday night that within hours of the shooting, Azula Nibbs, 20, a resident of Lindbergh Bay, surrendered to officers at the VIPD Investigation Bureau in connection with the case. While Nibbs was being questioned by police, the source said, Major Crime Unit detectives learned that Liburd had died of his injuries.
Moments later, charges against Nibbs were upgraded from assault to first-degree murder. The accused was remanded to the Corrections Bureau pending an initial court appearance set for Wednesday.
Liburd's death was the 18th homicide on St. Thomas this year and the 30th territorywide. At this time last year, there had been seven slayings on St. Thomas and 16 throughout the territory.
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A TALE OF TWO MARKETING PLANS … TO BE CONTINUED
Sept. 17, 2002 – Anxious to woo the cruise ship industry back to St. Croix, the V.I. government and a group representing private sector interests have submitted separate plans for improving the tourism experience to the one cruise line that has decided to continue its schedule of calls at the port of Frederiksted through the end of the year.
The presentation of two tourism plans to Royal Caribbean Cruise Lines is viewed as a good idea by the business group, St. Croix Alive, and not a good idea by Tourism Commissioner Pamela Richards. When Richards heard that SCA had submitted its own plan to cruise executives on Sept. 3, four days after she submitted hers to RCCL and Government House, Richards said, "I'm at a loss as to why" there was a need "to submit a separate plan."
Nonetheless, there are now two plans putting the best face of tourism on St. Croix forward at RCCL headquarters in Miami. They are in many ways similar, but there also are some notable differences. Both plans in their introductions acknowledge the concerns of the cruise lines about curbing crime against tourists and crew members and also about the need to develop St. Croix further as a distinct destination that offers visitors something they can't experience by visiting St. Thomas and St. John.
Both proposals point to the need for government and private sector partnering in order to achieve those goals.
"As an industry, tourism has many components comprising the overall tourism experience … tourism-related businesses, agencies and organizations must work together to package and promote tourism opportunities," Richards said in the introduction to the Tourism Department plan titled "To Maintain and Increase Cruise Ship Calls."
St. Croix Alive acknowledges this partnership in practice, making reference to its work with police and the V.I. Justice Department in efforts to increase tourist safety and its collaborations with Tourism to increase safety and develop cultural tours and demonstrations.
The SCA plan states: "The Virgin Islands Police Department, USVI Department of Tourism and members of the St. Croix Alive Zero Crime Tolerance committee have made significant strides in identifying and implementing some of our initiatives. Our goal is to make St. Croix a safe island for both residents and visitors."
Both plans hype heritage tours
After that, opinions differ on priorities for improving cruise ship visitors' experiences. According to Richards, the first thing to do is heal the black eye St. Croix got as a destination when Carnival Cruise Lines and Holland America Line pulled their ships from stops at the island.
"Public relations is one of the tools which can be used to address the problem which St. Croix faces. Public relations efforts can [be used not only] to promote the destination to tourists, but also to promote the value of tourism to the community as a whole," Richards said in her introduction.
St. Croix Alive put its focus on product development, calling its plan "St. Croix — the GEM of the Caribbean."
The SCA plan's authors do not claim full credit for the concept of marketing the island as a heritage destination rich in culture, but they do promote the potential for building a local tourist industry around it: "The long-term objectives of our plan will be to ensure larger capacity and quality tours and to monitor the success and revenue potentials of our products for both our tour operators and tour brokers and our cruise line partners."
According to the plan, "The primary focus of new tour product development will be to develop tours that support our theme and have larger capacities for greater revenue potentials."
The SCA immediate game plan calls for scheduled activities and tours from 8:30 a.m to 2:30 p.m, including a passenger welcoming party, shopping, driving and walking tours, and cultural performances. Uniformed GEM greeters would be stationed in strategic locations to direct passengers to the various activities.
The Tourism Department plan supports the idea of St. Croix making its mark as a destination and goes one step further, saying the local tourist industry must broaden its base of stakeholders. To this end, a component of the proposed public relations campaign is being aimed at the community at large, promoting courtesy toward visitors and encouraging private citizens to take part in island beautification.
Richards proposes a "St. Croix Cultural Day" for cruise visitors, from 8:30 a.m. to 4 p.m. The day would include dockside entertainment, heritage tours of historic sites, and cultural demonstrations in Buddhoe Park and at Fort Frederik Museum.
She also pitches a recreation program aimed specifically at cruise ship crew members: "A happy crew will anxiously look forward, with anticipation, to a return call to St. Croix. To ensure this aim, the Virgin Islands Government has arranged for various sporting activities and games to be available for interested crew members' participation."
Differing approaches to combatting crime
The two proposals again speak with a single voice on the need to address the issue of crime, but, again, there are differences in approach. Repeated instances over months of crime against passengers and crew members was the reason given by Carnival for pulling two large ships, the Triumph and the Victory, that had been making semi-weekly calls at Frederiksted.
Both St. Croix Alive and the Tourism commissioner say the development of an effective crime-fighting strategy is a do-or-die proposition if St. Croix wants to keep Royal Caribbean ships calling at Frederiksted. Richards calls for revitalization of the Tourist Oriented Policing (TOP) patrol program that was started in 1994.
"The re-establishment of Tourist Oriented Policing will play a crucial role in assisting visitors to ensure they are well-informed as well as maintain their regular 'alert and aware' behavior while visiting the islands," Richards' plan states. "TOP officers utilize marked vehicles and are available to tourists who visit our islands. They are trained to be sensitive to the needs of cruise ship visitors."
Richards' plan states that the Tourism Department has solicited the assistance of former New York Mayor Rudolph Giuliani in his new role as a security consultant for help in developing crime-reduction strategies.
The SCA plan says "amen" to these two crime-fighting measures while also expressing support for other initiatives, including installing surveillance cameras in Christiansted and Frederiksted, pushing for the repair of broken street lights, and helping the Police Department find funds for improving radio communications.
The business group says it wants to augment the police presence among tourists with specially trained safety hosts and to provide enhancements for beach and bicycle patrols that would be deployed whenever a cruise ship calls.
Tours, more tours, plus a theme park
Both plans call for cleaning up and enhancing the Columbus Landing historical site at Salt River as one way to add dimension to the tourism experience. The SCA plan says the group has sought funding from the Federal Economic Development Authority for a St. Croix theme park.
"The park will be consistent with our theme of displaying our history, culture and traditions from our diverse heritage," the business group said.
The SCA plan also calls for arranging tours of Government House in Christiansted and incorporating a Heritage Trail Tour developed by the St. Croix Landmarks Society.
To enhance the quality of existing tours, St. Croix Alive is proposing extensive training for the islands' tour operators. "The success or failure of a particular tour or implementing a plan is how familiar the person is with the subject," the plan states. "All tour operators will be trained for all GEM Tours. SCA and GEM Tours will evaluate every tour it sanctions and certify every tour director."
Now, half a month after the two plans were submitted, a St. Croix Alive spokesman says the group is still waiting to hear back from Royal Caribbean. "The only feedback I've gotten so far is that they've received it," said Hugh Dalton, a member of SCA Marketing Committee and acting secretary for the group.
Dalton said the RCCL executive to whom their proposal was sent has spent the last few days in Cancun, Mexico, taking part in a regional tourism conference.
He said he thinks the Tourism Department has heard back from Royal Caribbean. Richards did not return a call seeking further information.
Dalton said he expects to learn more about the government's proposal at the next Senate Government Operations Committee meeting, set for Sept. 27. At that session, Sen. Emmett Hansen II, the committee chair, is expected to ask Tourism officials to describe their plan for marketing St. Croix for the coming tourist season.
"They have a good idea for the welcoming party. We just want to make sure nothing falls through the cracks," Dalton said.
Publisher's note : Like the St. Croix Source now? Find out how you can love us twice as much — and show your support for the islands' free and independent news voice … click here.
The presentation of two tourism plans to Royal Caribbean Cruise Lines is viewed as a good idea by the business group, St. Croix Alive, and not a good idea by Tourism Commissioner Pamela Richards. When Richards heard that SCA had submitted its own plan to cruise executives on Sept. 3, four days after she submitted hers to RCCL and Government House, Richards said, "I'm at a loss as to why" there was a need "to submit a separate plan."
Nonetheless, there are now two plans putting the best face of tourism on St. Croix forward at RCCL headquarters in Miami. They are in many ways similar, but there also are some notable differences. Both plans in their introductions acknowledge the concerns of the cruise lines about curbing crime against tourists and crew members and also about the need to develop St. Croix further as a distinct destination that offers visitors something they can't experience by visiting St. Thomas and St. John.
Both proposals point to the need for government and private sector partnering in order to achieve those goals.
"As an industry, tourism has many components comprising the overall tourism experience … tourism-related businesses, agencies and organizations must work together to package and promote tourism opportunities," Richards said in the introduction to the Tourism Department plan titled "To Maintain and Increase Cruise Ship Calls."
St. Croix Alive acknowledges this partnership in practice, making reference to its work with police and the V.I. Justice Department in efforts to increase tourist safety and its collaborations with Tourism to increase safety and develop cultural tours and demonstrations.
The SCA plan states: "The Virgin Islands Police Department, USVI Department of Tourism and members of the St. Croix Alive Zero Crime Tolerance committee have made significant strides in identifying and implementing some of our initiatives. Our goal is to make St. Croix a safe island for both residents and visitors."
Both plans hype heritage tours
After that, opinions differ on priorities for improving cruise ship visitors' experiences. According to Richards, the first thing to do is heal the black eye St. Croix got as a destination when Carnival Cruise Lines and Holland America Line pulled their ships from stops at the island.
"Public relations is one of the tools which can be used to address the problem which St. Croix faces. Public relations efforts can [be used not only] to promote the destination to tourists, but also to promote the value of tourism to the community as a whole," Richards said in her introduction.
St. Croix Alive put its focus on product development, calling its plan "St. Croix — the GEM of the Caribbean."
The SCA plan's authors do not claim full credit for the concept of marketing the island as a heritage destination rich in culture, but they do promote the potential for building a local tourist industry around it: "The long-term objectives of our plan will be to ensure larger capacity and quality tours and to monitor the success and revenue potentials of our products for both our tour operators and tour brokers and our cruise line partners."
According to the plan, "The primary focus of new tour product development will be to develop tours that support our theme and have larger capacities for greater revenue potentials."
The SCA immediate game plan calls for scheduled activities and tours from 8:30 a.m to 2:30 p.m, including a passenger welcoming party, shopping, driving and walking tours, and cultural performances. Uniformed GEM greeters would be stationed in strategic locations to direct passengers to the various activities.
The Tourism Department plan supports the idea of St. Croix making its mark as a destination and goes one step further, saying the local tourist industry must broaden its base of stakeholders. To this end, a component of the proposed public relations campaign is being aimed at the community at large, promoting courtesy toward visitors and encouraging private citizens to take part in island beautification.
Richards proposes a "St. Croix Cultural Day" for cruise visitors, from 8:30 a.m. to 4 p.m. The day would include dockside entertainment, heritage tours of historic sites, and cultural demonstrations in Buddhoe Park and at Fort Frederik Museum.
She also pitches a recreation program aimed specifically at cruise ship crew members: "A happy crew will anxiously look forward, with anticipation, to a return call to St. Croix. To ensure this aim, the Virgin Islands Government has arranged for various sporting activities and games to be available for interested crew members' participation."
Differing approaches to combatting crime
The two proposals again speak with a single voice on the need to address the issue of crime, but, again, there are differences in approach. Repeated instances over months of crime against passengers and crew members was the reason given by Carnival for pulling two large ships, the Triumph and the Victory, that had been making semi-weekly calls at Frederiksted.
Both St. Croix Alive and the Tourism commissioner say the development of an effective crime-fighting strategy is a do-or-die proposition if St. Croix wants to keep Royal Caribbean ships calling at Frederiksted. Richards calls for revitalization of the Tourist Oriented Policing (TOP) patrol program that was started in 1994.
"The re-establishment of Tourist Oriented Policing will play a crucial role in assisting visitors to ensure they are well-informed as well as maintain their regular 'alert and aware' behavior while visiting the islands," Richards' plan states. "TOP officers utilize marked vehicles and are available to tourists who visit our islands. They are trained to be sensitive to the needs of cruise ship visitors."
Richards' plan states that the Tourism Department has solicited the assistance of former New York Mayor Rudolph Giuliani in his new role as a security consultant for help in developing crime-reduction strategies.
The SCA plan says "amen" to these two crime-fighting measures while also expressing support for other initiatives, including installing surveillance cameras in Christiansted and Frederiksted, pushing for the repair of broken street lights, and helping the Police Department find funds for improving radio communications.
The business group says it wants to augment the police presence among tourists with specially trained safety hosts and to provide enhancements for beach and bicycle patrols that would be deployed whenever a cruise ship calls.
Tours, more tours, plus a theme park
Both plans call for cleaning up and enhancing the Columbus Landing historical site at Salt River as one way to add dimension to the tourism experience. The SCA plan says the group has sought funding from the Federal Economic Development Authority for a St. Croix theme park.
"The park will be consistent with our theme of displaying our history, culture and traditions from our diverse heritage," the business group said.
The SCA plan also calls for arranging tours of Government House in Christiansted and incorporating a Heritage Trail Tour developed by the St. Croix Landmarks Society.
To enhance the quality of existing tours, St. Croix Alive is proposing extensive training for the islands' tour operators. "The success or failure of a particular tour or implementing a plan is how familiar the person is with the subject," the plan states. "All tour operators will be trained for all GEM Tours. SCA and GEM Tours will evaluate every tour it sanctions and certify every tour director."
Now, half a month after the two plans were submitted, a St. Croix Alive spokesman says the group is still waiting to hear back from Royal Caribbean. "The only feedback I've gotten so far is that they've received it," said Hugh Dalton, a member of SCA Marketing Committee and acting secretary for the group.
Dalton said the RCCL executive to whom their proposal was sent has spent the last few days in Cancun, Mexico, taking part in a regional tourism conference.
He said he thinks the Tourism Department has heard back from Royal Caribbean. Richards did not return a call seeking further information.
Dalton said he expects to learn more about the government's proposal at the next Senate Government Operations Committee meeting, set for Sept. 27. At that session, Sen. Emmett Hansen II, the committee chair, is expected to ask Tourism officials to describe their plan for marketing St. Croix for the coming tourist season.
"They have a good idea for the welcoming party. We just want to make sure nothing falls through the cracks," Dalton said.
Publisher's note : Like the St. Croix Source now? Find out how you can love us twice as much — and show your support for the islands' free and independent news voice … click here.
RAISE FEES AND LOSE FLIGHTS, AIRLINES TELL VIPA
Sept. 17, 2002 – Airline companies voiced their opposition to the Port Authority's announced increases in airport fees on Tuesday, laying out the grim consequences for the territory that they said such a move would have.
American Airlines official Danny Menendez said with the carrier's ongoing losses, it will have to drop some of its flights serving the territory. Lowell Dyer, American's St. Croix station manager for the last 28 years, said one of them would be the only mainland service St. Croix now has.
"Within 60 days, we would close the St. Croix station," Dyer said. "With the pullout of the cruise ships, this would be drastic. But that is a fact; that is what we would have to do."
And American Eagle wouldn't be far behind. Julia Carter, American Eagle representative, said if the announced 35 percent increase in landing fees goes into effect, "We will have to cut half of the flights — and cut back half of the staff on St. Thomas and on St. Croix."
Steve Houlder, Delta Air Lines regional manager, said the increase, compared with airport fees elsewhere in the world, "stands out as an aberration." He added, "These fees could jeopardize the level of service we provide to the V.I."
And R. Brian Davis, US Airways manager of airport affairs and international services, said a planned new flight between Charlotte, North Carolina, and the territory "may have to be re-evaluated" in light the increased fees. Davis noted that US Airways recently filed for bankruptcy protection but said the company was moving forward with expansion plans.
Gordon Finch, VIPA executive director, called the meeting for the airline officials to share their views on the increase scheduled to go into effect on Oct 1. As part of the authority's Fiscal Year 2003 budget, the Port Authority board approved increasing landing fees for signatory airlines to $3.38 per 1,000 pounds from the current $2.50 per 1,000 pounds. The per-passenger fee charged the airlines will increase to $32 from the present $22.
Finch explained that the Port Authority, by virtue of its signatory agreement with the airlines, is not allowed to make a profit on aviation revenues; any surplus must be returned to the airlines. At the same time, the airlines have agreed to absorb any aviation losses that VIPA may experience.
That was not a popular viewpoint Tuesday morning at the meeting, which extended over more than three hours. The spacious VIPA conference room was packed with community stakeholders: representatives of the major airlines, small commuter airlines, the hotel sector and the general public.
Hercules Williams, longtime V.I. aviation figure and American Eagle consultant, patted Finch on the back. "He is a fine citizen, and I know he will do what he has to do," he said. Then, turning to Finch, he added, "but I am begging you [not to increase the fees]."
Finch told the gathering, "To be honest, I don't know any other way." He added, "If you look at it as a $10-per-passenger cost, that should buffer the alarm factor of a 35 percent increase."
The $10 figure didn't go over well with David Yamada, Renaissance Grand Beach Resort general manager and president of the St. Thomas-St. John Hotel Association. "The $10 isn't a minimal amount — if I should increase my room rates by that, occupancy would drop," he said.
Yamada said the potential impact of the airport fee increases on the territory's hotels could be bad. "Almost all the hotels have reduced rates since Sept. 11," he noted. "The increase could be counterproductive. We are 15 to 20 percent down in occupancy right now."
Jamie Holmes, general manger of the Ritz-Carlton St. Thomas Resort, was more direct. "We've spent $85 million on our expansion project," he said. "This is the last thing I want to hear. What we have had to do is figure out how to run a business after Sept. 11."
Private sector solution: Cut costs
The airline and hotel officials were of one mind: The Port Authority should take its cue from the private sector and cut back expenses. Houlder said, "We have an aggressive program. We're doing it better, smarter and cheaper. We even cut janitorial service in our corporate offices from daily to once a week."
Bob Arthur, VIPA aviation rate consultant, said echoed Finch's comments that the aviation division's "residual rate methodology is that the surplus gets put back to the airlines, and the deficit gets made up." Arthur and Finch both noted that airport fees have gone down four out of the last five years. "The rates are calculated every six months," Arthur said, noting that VIPS did not raise rates last September, although "we could have."
Finch said aviation bond rates are considered a minimum investment by Standard & Poor's. "If they see our books don't balance, the bondholders will go bush," he said, employing a local term for pulling out.
Finch, too, reminded the airline representatives that VIPA decided not to raise fees after Sept. 11 last year because of the impact doing so would have had on the airlines at the time. Now, however, he said, "If we can't meet our debt service of $4 million a year, the airlines would have to pick that up."
Cleo Hodge of Ace Flight Center, which runs flights to the British Virgin Islands along with providing pilot training, said he would have to charge $70 one-way to the BVI under the new rates — and "$26 of that would go to the Port Authority." He said he couldn't compete with the ferries, which charge $20 one-way.
Paul Wikander, owner of Air St. Thomas and a 32-year veteran of the airline business on St. Thomas, was incensed. He told Finch, "This has got to stop. You're destroying the economy of the V.I., and you'll make less money because you will have fewer landings. I beg of you not to do it."
Wikander, whose airline connects St. Thomas with San Juan, Fajardo and St. Barths, said the increased fees would force him to bypass St. Thomas and operate out of San Juan. "It's 18 cents per passenger to land there," he said, in contrast to the $3.50 per passenger in the V.I. He added, "If you cut the big guys, you will cut the little ones. My business is based on the major carriers; if you cut them back, it will have a domino effect."
Finch said the VIPA board has "agreed we are going to eat the losses from FY 2002." But he said the authority needs to cover the projected deficit for FY 2003. VIPA's financial statements show a continuous slide downward in the last year. Aviation revenues declined by $1.2 million and marine revenues dropped by $1.6 million in FY 2002. The largest items were a payroll increase of $2.1 million to meet a higher wages negotiated in 1999 and an increase in security activities.
The territory's air arrivals are down 9 percent from a year ago, which compounds other fiscal considerations for VIPA. The authority is expected to record a $10.4 million drop in cash and marketable securities for FY 2002.
VIPA's monthly board meeting is Wednesday. Several board members were present Tuesday, including Attorney General Iver Stridiron, who said the airlines have not treated the territory well in the last few years. "How about cutting the travel agents' commissions, forcing a number of agencies to close?" he asked.
Airlines come in for criticism, too
Stridiron also criticized the major airlines' recent elimination of senior citizen coupon booklets, saying that has had a direct effect on the territory's economy. "For instance, my mother makes three trips here a year, and she spends money on jewelry and clothes," he said. "Now, she will be able to come down only once."
Stridiron raised the question of whether the signatory airlines had ever offered not to claim the surplus in years when there was one. "I don't think so," he then answered, adding that VIPA and the carriers need to revise their contract.
He said the board would go over the budget figures "carefully" with its accountants before Wednesday's meeting. He did not rule out the possibility of a change in the planned increases.
"What we all should be doing is discouraging our leaders from the saber-rattling about Iraq," Stridiron told the full room, "or we won't see any planes in the sky going anywhere. If we go to war, people will lock up, close down; they won't be going anywhere."
Ken Johnson, Cape Air Caribbean regional manager, said the airline plans to hold steady. "We aren't going to cut back," he said. "We are committed to the Caribbean in the five years we've been here, and we re not leaving as long as we have passengers."
However, Johnson said, "With the territory's crime and now the garbage situation [haulers are striking on St. Croix], I'm pretty discouraged. It's hard to get passengers to come here as is. And then to have to say, 'By the way, we have to charge you $10 more.'"
The VIPA board will meet at 10 a.m. Wednesday in the same conference room.
Publisher's note : Like the St. Croix Source now? Find out how you can love us twice as much — and show your support for the islands' free and independent news voice … click here.
American Airlines official Danny Menendez said with the carrier's ongoing losses, it will have to drop some of its flights serving the territory. Lowell Dyer, American's St. Croix station manager for the last 28 years, said one of them would be the only mainland service St. Croix now has.
"Within 60 days, we would close the St. Croix station," Dyer said. "With the pullout of the cruise ships, this would be drastic. But that is a fact; that is what we would have to do."
And American Eagle wouldn't be far behind. Julia Carter, American Eagle representative, said if the announced 35 percent increase in landing fees goes into effect, "We will have to cut half of the flights — and cut back half of the staff on St. Thomas and on St. Croix."
Steve Houlder, Delta Air Lines regional manager, said the increase, compared with airport fees elsewhere in the world, "stands out as an aberration." He added, "These fees could jeopardize the level of service we provide to the V.I."
And R. Brian Davis, US Airways manager of airport affairs and international services, said a planned new flight between Charlotte, North Carolina, and the territory "may have to be re-evaluated" in light the increased fees. Davis noted that US Airways recently filed for bankruptcy protection but said the company was moving forward with expansion plans.
Gordon Finch, VIPA executive director, called the meeting for the airline officials to share their views on the increase scheduled to go into effect on Oct 1. As part of the authority's Fiscal Year 2003 budget, the Port Authority board approved increasing landing fees for signatory airlines to $3.38 per 1,000 pounds from the current $2.50 per 1,000 pounds. The per-passenger fee charged the airlines will increase to $32 from the present $22.
Finch explained that the Port Authority, by virtue of its signatory agreement with the airlines, is not allowed to make a profit on aviation revenues; any surplus must be returned to the airlines. At the same time, the airlines have agreed to absorb any aviation losses that VIPA may experience.
That was not a popular viewpoint Tuesday morning at the meeting, which extended over more than three hours. The spacious VIPA conference room was packed with community stakeholders: representatives of the major airlines, small commuter airlines, the hotel sector and the general public.
Hercules Williams, longtime V.I. aviation figure and American Eagle consultant, patted Finch on the back. "He is a fine citizen, and I know he will do what he has to do," he said. Then, turning to Finch, he added, "but I am begging you [not to increase the fees]."
Finch told the gathering, "To be honest, I don't know any other way." He added, "If you look at it as a $10-per-passenger cost, that should buffer the alarm factor of a 35 percent increase."
The $10 figure didn't go over well with David Yamada, Renaissance Grand Beach Resort general manager and president of the St. Thomas-St. John Hotel Association. "The $10 isn't a minimal amount — if I should increase my room rates by that, occupancy would drop," he said.
Yamada said the potential impact of the airport fee increases on the territory's hotels could be bad. "Almost all the hotels have reduced rates since Sept. 11," he noted. "The increase could be counterproductive. We are 15 to 20 percent down in occupancy right now."
Jamie Holmes, general manger of the Ritz-Carlton St. Thomas Resort, was more direct. "We've spent $85 million on our expansion project," he said. "This is the last thing I want to hear. What we have had to do is figure out how to run a business after Sept. 11."
Private sector solution: Cut costs
The airline and hotel officials were of one mind: The Port Authority should take its cue from the private sector and cut back expenses. Houlder said, "We have an aggressive program. We're doing it better, smarter and cheaper. We even cut janitorial service in our corporate offices from daily to once a week."
Bob Arthur, VIPA aviation rate consultant, said echoed Finch's comments that the aviation division's "residual rate methodology is that the surplus gets put back to the airlines, and the deficit gets made up." Arthur and Finch both noted that airport fees have gone down four out of the last five years. "The rates are calculated every six months," Arthur said, noting that VIPS did not raise rates last September, although "we could have."
Finch said aviation bond rates are considered a minimum investment by Standard & Poor's. "If they see our books don't balance, the bondholders will go bush," he said, employing a local term for pulling out.
Finch, too, reminded the airline representatives that VIPA decided not to raise fees after Sept. 11 last year because of the impact doing so would have had on the airlines at the time. Now, however, he said, "If we can't meet our debt service of $4 million a year, the airlines would have to pick that up."
Cleo Hodge of Ace Flight Center, which runs flights to the British Virgin Islands along with providing pilot training, said he would have to charge $70 one-way to the BVI under the new rates — and "$26 of that would go to the Port Authority." He said he couldn't compete with the ferries, which charge $20 one-way.
Paul Wikander, owner of Air St. Thomas and a 32-year veteran of the airline business on St. Thomas, was incensed. He told Finch, "This has got to stop. You're destroying the economy of the V.I., and you'll make less money because you will have fewer landings. I beg of you not to do it."
Wikander, whose airline connects St. Thomas with San Juan, Fajardo and St. Barths, said the increased fees would force him to bypass St. Thomas and operate out of San Juan. "It's 18 cents per passenger to land there," he said, in contrast to the $3.50 per passenger in the V.I. He added, "If you cut the big guys, you will cut the little ones. My business is based on the major carriers; if you cut them back, it will have a domino effect."
Finch said the VIPA board has "agreed we are going to eat the losses from FY 2002." But he said the authority needs to cover the projected deficit for FY 2003. VIPA's financial statements show a continuous slide downward in the last year. Aviation revenues declined by $1.2 million and marine revenues dropped by $1.6 million in FY 2002. The largest items were a payroll increase of $2.1 million to meet a higher wages negotiated in 1999 and an increase in security activities.
The territory's air arrivals are down 9 percent from a year ago, which compounds other fiscal considerations for VIPA. The authority is expected to record a $10.4 million drop in cash and marketable securities for FY 2002.
VIPA's monthly board meeting is Wednesday. Several board members were present Tuesday, including Attorney General Iver Stridiron, who said the airlines have not treated the territory well in the last few years. "How about cutting the travel agents' commissions, forcing a number of agencies to close?" he asked.
Airlines come in for criticism, too
Stridiron also criticized the major airlines' recent elimination of senior citizen coupon booklets, saying that has had a direct effect on the territory's economy. "For instance, my mother makes three trips here a year, and she spends money on jewelry and clothes," he said. "Now, she will be able to come down only once."
Stridiron raised the question of whether the signatory airlines had ever offered not to claim the surplus in years when there was one. "I don't think so," he then answered, adding that VIPA and the carriers need to revise their contract.
He said the board would go over the budget figures "carefully" with its accountants before Wednesday's meeting. He did not rule out the possibility of a change in the planned increases.
"What we all should be doing is discouraging our leaders from the saber-rattling about Iraq," Stridiron told the full room, "or we won't see any planes in the sky going anywhere. If we go to war, people will lock up, close down; they won't be going anywhere."
Ken Johnson, Cape Air Caribbean regional manager, said the airline plans to hold steady. "We aren't going to cut back," he said. "We are committed to the Caribbean in the five years we've been here, and we re not leaving as long as we have passengers."
However, Johnson said, "With the territory's crime and now the garbage situation [haulers are striking on St. Croix], I'm pretty discouraged. It's hard to get passengers to come here as is. And then to have to say, 'By the way, we have to charge you $10 more.'"
The VIPA board will meet at 10 a.m. Wednesday in the same conference room.
Publisher's note : Like the St. Croix Source now? Find out how you can love us twice as much — and show your support for the islands' free and independent news voice … click here.
RAISE FEES AND LOSE FLIGHTS, AIRLINES TELL VIPA
Sept. 17, 2002 – Airline companies voiced their opposition to the Port Authority's announced increases in airport fees on Tuesday, laying out the grim consequences for the territory that they said such a move would have.
American Airlines official Danny Menendez said with the carrier's ongoing losses, it will have to drop some of its flights serving the territory. Lowell Dyer, American's St. Croix station manager for the last 28 years, said one of them would be the only mainland service St. Croix now has.
"Within 60 days, we would close the St. Croix station," Dyer said. "With the pullout of the cruise ships, this would be drastic. But that is a fact; that is what we would have to do."
And American Eagle wouldn't be far behind. Julia Carter, American Eagle representative, said if the announced 35 percent increase in landing fees goes into effect, "We will have to cut half of the flights — and cut back half of the staff on St. Thomas and on St. Croix."
Steve Houlder, Delta Air Lines regional manager, said the increase, compared with airport fees elsewhere in the world, "stands out as an aberration." He added, "These fees could jeopardize the level of service we provide to the V.I."
And R. Brian Davis, US Airways manager of airport affairs and international services, said a planned new flight between Charlotte, North Carolina, and the territory "may have to be re-evaluated" in light the increased fees. Davis noted that US Airways recently filed for bankruptcy protection but said the company was moving forward with expansion plans.
Gordon Finch, VIPA executive director, called the meeting for the airline officials to share their views on the increase scheduled to go into effect on Oct 1. As part of the authority's Fiscal Year 2003 budget, the Port Authority board approved increasing landing fees for signatory airlines to $3.38 per 1,000 pounds from the current $2.50 per 1,000 pounds. The per-passenger fee charged the airlines will increase to $32 from the present $22.
Finch explained that the Port Authority, by virtue of its signatory agreement with the airlines, is not allowed to make a profit on aviation revenues; any surplus must be returned to the airlines. At the same time, the airlines have agreed to absorb any aviation losses that VIPA may experience.
That was not a popular viewpoint Tuesday morning at the meeting, which extended over more than three hours. The spacious VIPA conference room was packed with community stakeholders: representatives of the major airlines, small commuter airlines, the hotel sector and the general public.
Hercules Williams, longtime V.I. aviation figure and American Eagle consultant, patted Finch on the back. "He is a fine citizen, and I know he will do what he has to do," he said. Then, turning to Finch, he added, "but I am begging you [not to increase the fees]."
Finch told the gathering, "To be honest, I don't know any other way." He added, "If you look at it as a $10-per-passenger cost, that should buffer the alarm factor of a 35 percent increase."
The $10 figure didn't go over well with David Yamada, Renaissance Grand Beach Resort general manager and president of the St. Thomas-St. John Hotel Association. "The $10 isn't a minimal amount — if I should increase my room rates by that, occupancy would drop," he said.
Yamada said the potential impact of the airport fee increases on the territory's hotels could be bad. "Almost all the hotels have reduced rates since Sept. 11," he noted. "The increase could be counterproductive. We are 15 to 20 percent down in occupancy right now."
Jamie Holmes, general manger of the Ritz-Carlton St. Thomas Resort, was more direct. "We've spent $85 million on our expansion project," he said. "This is the last thing I want to hear. What we have had to do is figure out how to run a business after Sept. 11."
Private sector solution: Cut costs
The airline and hotel officials were of one mind: The Port Authority should take its cue from the private sector and cut back expenses. Houlder said, "We have an aggressive program. We're doing it better, smarter and cheaper. We even cut janitorial service in our corporate offices from daily to once a week."
Bob Arthur, VIPA aviation rate consultant, said echoed Finch's comments that the aviation division's "residual rate methodology is that the surplus gets put back to the airlines, and the deficit gets made up." Arthur and Finch both noted that airport fees have gone down four out of the last five years. "The rates are calculated every six months," Arthur said, noting that VIPS did not raise rates last September, although "we could have."
Finch said aviation bond rates are considered a minimum investment by Standard & Poor's. "If they see our books don't balance, the bondholders will go bush," he said, employing a local term for pulling out.
Finch, too, reminded the airline representatives that VIPA decided not to raise fees after Sept. 11 last year because of the impact doing so would have had on the airlines at the time. Now, however, he said, "If we can't meet our debt service of $4 million a year, the airlines would have to pick that up."
Cleo Hodge of Ace Flight Center, which runs flights to the British Virgin Islands along with providing pilot training, said he would have to charge $70 one-way to the BVI under the new rates — and "$26 of that would go to the Port Authority." He said he couldn't compete with the ferries, which charge $20 one-way.
Paul Wikander, owner of Air St. Thomas and a 32-year veteran of the airline business on St. Thomas, was incensed. He told Finch, "This has got to stop. You're destroying the economy of the V.I., and you'll make less money because you will have fewer landings. I beg of you not to do it."
Wikander, whose airline connects St. Thomas with San Juan, Fajardo and St. Barths, said the increased fees would force him to bypass St. Thomas and operate out of San Juan. "It's 18 cents per passenger to land there," he said, in contrast to the $3.50 per passenger in the V.I. He added, "If you cut the big guys, you will cut the little ones. My business is based on the major carriers; if you cut them back, it will have a domino effect."
Finch said the VIPA board has "agreed we are going to eat the losses from FY 2002." But he said the authority needs to cover the projected deficit for FY 2003. VIPA's financial statements show a continuous slide downward in the last year. Aviation revenues declined by $1.2 million and marine revenues dropped by $1.6 million in FY 2002. The largest items were a payroll increase of $2.1 million to meet a higher wages negotiated in 1999 and an increase in security activities.
The territory's air arrivals are down 9 percent from a year ago, which compounds other fiscal considerations for VIPA. The authority is expected to record a $10.4 million drop in cash and marketable securities for FY 2002.
VIPA's monthly board meeting is Wednesday. Several board members were present Tuesday, including Attorney General Iver Stridiron, who said the airlines have not treated the territory well in the last few years. "How about cutting the travel agents' commissions, forcing a number of agencies to close?" he asked.
Airlines come in for criticism, too
Stridiron also criticized the major airlines' recent elimination of senior citizen coupon booklets, saying that has had a direct effect on the territory's economy. "For instance, my mother makes three trips here a year, and she spends money on jewelry and clothes," he said. "Now, she will be able to come down only once."
Stridiron raised the question of whether the signatory airlines had ever offered not to claim the surplus in years when there was one. "I don't think so," he then answered, adding that VIPA and the carriers need to revise their contract.
He said the board would go over the budget figures "carefully" with its accountants before Wednesday's meeting. He did not rule out the possibility of a change in the planned increases.
"What we all should be doing is discouraging our leaders from the saber-rattling about Iraq," Stridiron told the full room, "or we won't see any planes in the sky going anywhere. If we go to war, people will lock up, close down; they won't be going anywhere."
Ken Johnson, Cape Air Caribbean regional manager, said the airline plans to hold steady. "We aren't going to cut back," he said. "We are committed to the Caribbean in the five years we've been here, and we re not leaving as long as we have passengers."
However, Johnson said, "With the territory's crime and now the garbage situation [haulers are striking on St. Croix], I'm pretty discouraged. It's hard to get passengers to come here as is. And then to have to say, 'By the way, we have to charge you $10 more.'"
The VIPA board will meet at 10 a.m. Wednesday in the same conference room.
Publisher's note : Like the St. John Source now? Find out how you can love us twice as much — and show your support for the islands' free and independent news voice … click here.
American Airlines official Danny Menendez said with the carrier's ongoing losses, it will have to drop some of its flights serving the territory. Lowell Dyer, American's St. Croix station manager for the last 28 years, said one of them would be the only mainland service St. Croix now has.
"Within 60 days, we would close the St. Croix station," Dyer said. "With the pullout of the cruise ships, this would be drastic. But that is a fact; that is what we would have to do."
And American Eagle wouldn't be far behind. Julia Carter, American Eagle representative, said if the announced 35 percent increase in landing fees goes into effect, "We will have to cut half of the flights — and cut back half of the staff on St. Thomas and on St. Croix."
Steve Houlder, Delta Air Lines regional manager, said the increase, compared with airport fees elsewhere in the world, "stands out as an aberration." He added, "These fees could jeopardize the level of service we provide to the V.I."
And R. Brian Davis, US Airways manager of airport affairs and international services, said a planned new flight between Charlotte, North Carolina, and the territory "may have to be re-evaluated" in light the increased fees. Davis noted that US Airways recently filed for bankruptcy protection but said the company was moving forward with expansion plans.
Gordon Finch, VIPA executive director, called the meeting for the airline officials to share their views on the increase scheduled to go into effect on Oct 1. As part of the authority's Fiscal Year 2003 budget, the Port Authority board approved increasing landing fees for signatory airlines to $3.38 per 1,000 pounds from the current $2.50 per 1,000 pounds. The per-passenger fee charged the airlines will increase to $32 from the present $22.
Finch explained that the Port Authority, by virtue of its signatory agreement with the airlines, is not allowed to make a profit on aviation revenues; any surplus must be returned to the airlines. At the same time, the airlines have agreed to absorb any aviation losses that VIPA may experience.
That was not a popular viewpoint Tuesday morning at the meeting, which extended over more than three hours. The spacious VIPA conference room was packed with community stakeholders: representatives of the major airlines, small commuter airlines, the hotel sector and the general public.
Hercules Williams, longtime V.I. aviation figure and American Eagle consultant, patted Finch on the back. "He is a fine citizen, and I know he will do what he has to do," he said. Then, turning to Finch, he added, "but I am begging you [not to increase the fees]."
Finch told the gathering, "To be honest, I don't know any other way." He added, "If you look at it as a $10-per-passenger cost, that should buffer the alarm factor of a 35 percent increase."
The $10 figure didn't go over well with David Yamada, Renaissance Grand Beach Resort general manager and president of the St. Thomas-St. John Hotel Association. "The $10 isn't a minimal amount — if I should increase my room rates by that, occupancy would drop," he said.
Yamada said the potential impact of the airport fee increases on the territory's hotels could be bad. "Almost all the hotels have reduced rates since Sept. 11," he noted. "The increase could be counterproductive. We are 15 to 20 percent down in occupancy right now."
Jamie Holmes, general manger of the Ritz-Carlton St. Thomas Resort, was more direct. "We've spent $85 million on our expansion project," he said. "This is the last thing I want to hear. What we have had to do is figure out how to run a business after Sept. 11."
Private sector solution: Cut costs
The airline and hotel officials were of one mind: The Port Authority should take its cue from the private sector and cut back expenses. Houlder said, "We have an aggressive program. We're doing it better, smarter and cheaper. We even cut janitorial service in our corporate offices from daily to once a week."
Bob Arthur, VIPA aviation rate consultant, said echoed Finch's comments that the aviation division's "residual rate methodology is that the surplus gets put back to the airlines, and the deficit gets made up." Arthur and Finch both noted that airport fees have gone down four out of the last five years. "The rates are calculated every six months," Arthur said, noting that VIPS did not raise rates last September, although "we could have."
Finch said aviation bond rates are considered a minimum investment by Standard & Poor's. "If they see our books don't balance, the bondholders will go bush," he said, employing a local term for pulling out.
Finch, too, reminded the airline representatives that VIPA decided not to raise fees after Sept. 11 last year because of the impact doing so would have had on the airlines at the time. Now, however, he said, "If we can't meet our debt service of $4 million a year, the airlines would have to pick that up."
Cleo Hodge of Ace Flight Center, which runs flights to the British Virgin Islands along with providing pilot training, said he would have to charge $70 one-way to the BVI under the new rates — and "$26 of that would go to the Port Authority." He said he couldn't compete with the ferries, which charge $20 one-way.
Paul Wikander, owner of Air St. Thomas and a 32-year veteran of the airline business on St. Thomas, was incensed. He told Finch, "This has got to stop. You're destroying the economy of the V.I., and you'll make less money because you will have fewer landings. I beg of you not to do it."
Wikander, whose airline connects St. Thomas with San Juan, Fajardo and St. Barths, said the increased fees would force him to bypass St. Thomas and operate out of San Juan. "It's 18 cents per passenger to land there," he said, in contrast to the $3.50 per passenger in the V.I. He added, "If you cut the big guys, you will cut the little ones. My business is based on the major carriers; if you cut them back, it will have a domino effect."
Finch said the VIPA board has "agreed we are going to eat the losses from FY 2002." But he said the authority needs to cover the projected deficit for FY 2003. VIPA's financial statements show a continuous slide downward in the last year. Aviation revenues declined by $1.2 million and marine revenues dropped by $1.6 million in FY 2002. The largest items were a payroll increase of $2.1 million to meet a higher wages negotiated in 1999 and an increase in security activities.
The territory's air arrivals are down 9 percent from a year ago, which compounds other fiscal considerations for VIPA. The authority is expected to record a $10.4 million drop in cash and marketable securities for FY 2002.
VIPA's monthly board meeting is Wednesday. Several board members were present Tuesday, including Attorney General Iver Stridiron, who said the airlines have not treated the territory well in the last few years. "How about cutting the travel agents' commissions, forcing a number of agencies to close?" he asked.
Airlines come in for criticism, too
Stridiron also criticized the major airlines' recent elimination of senior citizen coupon booklets, saying that has had a direct effect on the territory's economy. "For instance, my mother makes three trips here a year, and she spends money on jewelry and clothes," he said. "Now, she will be able to come down only once."
Stridiron raised the question of whether the signatory airlines had ever offered not to claim the surplus in years when there was one. "I don't think so," he then answered, adding that VIPA and the carriers need to revise their contract.
He said the board would go over the budget figures "carefully" with its accountants before Wednesday's meeting. He did not rule out the possibility of a change in the planned increases.
"What we all should be doing is discouraging our leaders from the saber-rattling about Iraq," Stridiron told the full room, "or we won't see any planes in the sky going anywhere. If we go to war, people will lock up, close down; they won't be going anywhere."
Ken Johnson, Cape Air Caribbean regional manager, said the airline plans to hold steady. "We aren't going to cut back," he said. "We are committed to the Caribbean in the five years we've been here, and we re not leaving as long as we have passengers."
However, Johnson said, "With the territory's crime and now the garbage situation [haulers are striking on St. Croix], I'm pretty discouraged. It's hard to get passengers to come here as is. And then to have to say, 'By the way, we have to charge you $10 more.'"
The VIPA board will meet at 10 a.m. Wednesday in the same conference room.
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RAISE FEES AND LOSE FLIGHTS, AIRLINES TELL VIPA
Sept. 17, 2002 – Airline companies voiced their opposition to the Port Authority's announced increases in airport fees on Tuesday, laying out the grim consequences for the territory that they said such a move would have.
American Airlines official Danny Menendez said with the carrier's ongoing losses, it will have to drop some of its flights serving the territory. Lowell Dyer, American's St. Croix station manager for the last 28 years, said one of them would be the only mainland service St. Croix now has.
"Within 60 days, we would close the St. Croix station," Dyer said. "With the pullout of the cruise ships, this would be drastic. But that is a fact; that is what we would have to do."
And American Eagle wouldn't be far behind. Julia Carter, American Eagle representative, said if the announced 35 percent increase in landing fees goes into effect, "We will have to cut half of the flights — and cut back half of the staff on St. Thomas and on St. Croix."
Steve Houlder, Delta Air Lines regional manager, said the increase, compared with airport fees elsewhere in the world, "stands out as an aberration." He added, "These fees could jeopardize the level of service we provide to the V.I."
And R. Brian Davis, US Airways manager of airport affairs and international services, said a planned new flight between Charlotte, North Carolina, and the territory "may have to be re-evaluated" in light the increased fees. Davis noted that US Airways recently filed for bankruptcy protection but said the company was moving forward with expansion plans.
Gordon Finch, VIPA executive director, called the meeting for the airline officials to share their views on the increase scheduled to go into effect on Oct 1. As part of the authority's Fiscal Year 2003 budget, the Port Authority board approved increasing landing fees for signatory airlines to $3.38 per 1,000 pounds from the current $2.50 per 1,000 pounds. The per-passenger fee charged the airlines will increase to $32 from the present $22.
Finch explained that the Port Authority, by virtue of its signatory agreement with the airlines, is not allowed to make a profit on aviation revenues; any surplus must be returned to the airlines. At the same time, the airlines have agreed to absorb any aviation losses that VIPA may experience.
That was not a popular viewpoint Tuesday morning at the meeting, which extended over more than three hours. The spacious VIPA conference room was packed with community stakeholders: representatives of the major airlines, small commuter airlines, the hotel sector and the general public.
Hercules Williams, longtime V.I. aviation figure and American Eagle consultant, patted Finch on the back. "He is a fine citizen, and I know he will do what he has to do," he said. Then, turning to Finch, he added, "but I am begging you [not to increase the fees]."
Finch told the gathering, "To be honest, I don't know any other way." He added, "If you look at it as a $10-per-passenger cost, that should buffer the alarm factor of a 35 percent increase."
The $10 figure didn't go over well with David Yamada, Renaissance Grand Beach Resort general manager and president of the St. Thomas-St. John Hotel Association. "The $10 isn't a minimal amount — if I should increase my room rates by that, occupancy would drop," he said.
Yamada said the potential impact of the airport fee increases on the territory's hotels could be bad. "Almost all the hotels have reduced rates since Sept. 11," he noted. "The increase could be counterproductive. We are 15 to 20 percent down in occupancy right now."
Jamie Holmes, general manger of the Ritz-Carlton St. Thomas Resort, was more direct. "We've spent $85 million on our expansion project," he said. "This is the last thing I want to hear. What we have had to do is figure out how to run a business after Sept. 11."
Private sector solution: Cut costs
The airline and hotel officials were of one mind: The Port Authority should take its cue from the private sector and cut back expenses. Houlder said, "We have an aggressive program. We're doing it better, smarter and cheaper. We even cut janitorial service in our corporate offices from daily to once a week."
Bob Arthur, VIPA aviation rate consultant, said echoed Finch's comments that the aviation division's "residual rate methodology is that the surplus gets put back to the airlines, and the deficit gets made up." Arthur and Finch both noted that airport fees have gone down four out of the last five years. "The rates are calculated every six months," Arthur said, noting that VIPS did not raise rates last September, although "we could have."
Finch said aviation bond rates are considered a minimum investment by Standard & Poor's. "If they see our books don't balance, the bondholders will go bush," he said, employing a local term for pulling out.
Finch, too, reminded the airline representatives that VIPA decided not to raise fees after Sept. 11 last year because of the impact doing so would have had on the airlines at the time. Now, however, he said, "If we can't meet our debt service of $4 million a year, the airlines would have to pick that up."
Cleo Hodge of Ace Flight Center, which runs flights to the British Virgin Islands along with providing pilot training, said he would have to charge $70 one-way to the BVI under the new rates — and "$26 of that would go to the Port Authority." He said he couldn't compete with the ferries, which charge $20 one-way.
Paul Wikander, owner of Air St. Thomas and a 32-year veteran of the airline business on St. Thomas, was incensed. He told Finch, "This has got to stop. You're destroying the economy of the V.I., and you'll make less money because you will have fewer landings. I beg of you not to do it."
Wikander, whose airline connects St. Thomas with San Juan, Fajardo and St. Barths, said the increased fees would force him to bypass St. Thomas and operate out of San Juan. "It's 18 cents per passenger to land there," he said, in contrast to the $3.50 per passenger in the V.I. He added, "If you cut the big guys, you will cut the little ones. My business is based on the major carriers; if you cut them back, it will have a domino effect."
Finch said the VIPA board has "agreed we are going to eat the losses from FY 2002." But he said the authority needs to cover the projected deficit for FY 2003. VIPA's financial statements show a continuous slide downward in the last year. Aviation revenues declined by $1.2 million and marine revenues dropped by $1.6 million in FY 2002. The largest items were a payroll increase of $2.1 million to meet a higher wages negotiated in 1999 and an increase in security activities.
The territory's air arrivals are down 9 percent from a year ago, which compounds other fiscal considerations for VIPA. The authority is expected to record a $10.4 million drop in cash and marketable securities for FY 2002.
VIPA's monthly board meeting is Wednesday. Several board members were present Tuesday, including Attorney General Iver Stridiron, who said the airlines have not treated the territory well in the last few years. "How about cutting the travel agents' commissions, forcing a number of agencies to close?" he asked.
Airlines come in for criticism, too
Stridiron also criticized the major airlines' recent elimination of senior citizen coupon booklets, saying that has had a direct effect on the territory's economy. "For instance, my mother makes three trips here a year, and she spends money on jewelry and clothes," he said. "Now, she will be able to come down only once."
Stridiron raised the question of whether the signatory airlines had ever offered not to claim the surplus in years when there was one. "I don't think so," he then answered, adding that VIPA and the carriers need to revise their contract.
He said the board would go over the budget figures "carefully" with its accountants before Wednesday's meeting. He did not rule out the possibility of a change in the planned increases.
"What we all should be doing is discouraging our leaders from the saber-rattling about Iraq," Stridiron told the full room, "or we won't see any planes in the sky going anywhere. If we go to war, people will lock up, close down; they won't be going anywhere."
Ken Johnson, Cape Air Caribbean regional manager, said the airline plans to hold steady. "We aren't going to cut back," he said. "We are committed to the Caribbean in the five years we've been here, and we re not leaving as long as we have passengers."
However, Johnson said, "With the territory's crime and now the garbage situation [haulers are striking on St. Croix], I'm pretty discouraged. It's hard to get passengers to come here as is. And then to have to say, 'By the way, we have to charge you $10 more.'"
The VIPA board will meet at 10 a.m. Wednesday in the same conference room.
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American Airlines official Danny Menendez said with the carrier's ongoing losses, it will have to drop some of its flights serving the territory. Lowell Dyer, American's St. Croix station manager for the last 28 years, said one of them would be the only mainland service St. Croix now has.
"Within 60 days, we would close the St. Croix station," Dyer said. "With the pullout of the cruise ships, this would be drastic. But that is a fact; that is what we would have to do."
And American Eagle wouldn't be far behind. Julia Carter, American Eagle representative, said if the announced 35 percent increase in landing fees goes into effect, "We will have to cut half of the flights — and cut back half of the staff on St. Thomas and on St. Croix."
Steve Houlder, Delta Air Lines regional manager, said the increase, compared with airport fees elsewhere in the world, "stands out as an aberration." He added, "These fees could jeopardize the level of service we provide to the V.I."
And R. Brian Davis, US Airways manager of airport affairs and international services, said a planned new flight between Charlotte, North Carolina, and the territory "may have to be re-evaluated" in light the increased fees. Davis noted that US Airways recently filed for bankruptcy protection but said the company was moving forward with expansion plans.
Gordon Finch, VIPA executive director, called the meeting for the airline officials to share their views on the increase scheduled to go into effect on Oct 1. As part of the authority's Fiscal Year 2003 budget, the Port Authority board approved increasing landing fees for signatory airlines to $3.38 per 1,000 pounds from the current $2.50 per 1,000 pounds. The per-passenger fee charged the airlines will increase to $32 from the present $22.
Finch explained that the Port Authority, by virtue of its signatory agreement with the airlines, is not allowed to make a profit on aviation revenues; any surplus must be returned to the airlines. At the same time, the airlines have agreed to absorb any aviation losses that VIPA may experience.
That was not a popular viewpoint Tuesday morning at the meeting, which extended over more than three hours. The spacious VIPA conference room was packed with community stakeholders: representatives of the major airlines, small commuter airlines, the hotel sector and the general public.
Hercules Williams, longtime V.I. aviation figure and American Eagle consultant, patted Finch on the back. "He is a fine citizen, and I know he will do what he has to do," he said. Then, turning to Finch, he added, "but I am begging you [not to increase the fees]."
Finch told the gathering, "To be honest, I don't know any other way." He added, "If you look at it as a $10-per-passenger cost, that should buffer the alarm factor of a 35 percent increase."
The $10 figure didn't go over well with David Yamada, Renaissance Grand Beach Resort general manager and president of the St. Thomas-St. John Hotel Association. "The $10 isn't a minimal amount — if I should increase my room rates by that, occupancy would drop," he said.
Yamada said the potential impact of the airport fee increases on the territory's hotels could be bad. "Almost all the hotels have reduced rates since Sept. 11," he noted. "The increase could be counterproductive. We are 15 to 20 percent down in occupancy right now."
Jamie Holmes, general manger of the Ritz-Carlton St. Thomas Resort, was more direct. "We've spent $85 million on our expansion project," he said. "This is the last thing I want to hear. What we have had to do is figure out how to run a business after Sept. 11."
Private sector solution: Cut costs
The airline and hotel officials were of one mind: The Port Authority should take its cue from the private sector and cut back expenses. Houlder said, "We have an aggressive program. We're doing it better, smarter and cheaper. We even cut janitorial service in our corporate offices from daily to once a week."
Bob Arthur, VIPA aviation rate consultant, said echoed Finch's comments that the aviation division's "residual rate methodology is that the surplus gets put back to the airlines, and the deficit gets made up." Arthur and Finch both noted that airport fees have gone down four out of the last five years. "The rates are calculated every six months," Arthur said, noting that VIPS did not raise rates last September, although "we could have."
Finch said aviation bond rates are considered a minimum investment by Standard & Poor's. "If they see our books don't balance, the bondholders will go bush," he said, employing a local term for pulling out.
Finch, too, reminded the airline representatives that VIPA decided not to raise fees after Sept. 11 last year because of the impact doing so would have had on the airlines at the time. Now, however, he said, "If we can't meet our debt service of $4 million a year, the airlines would have to pick that up."
Cleo Hodge of Ace Flight Center, which runs flights to the British Virgin Islands along with providing pilot training, said he would have to charge $70 one-way to the BVI under the new rates — and "$26 of that would go to the Port Authority." He said he couldn't compete with the ferries, which charge $20 one-way.
Paul Wikander, owner of Air St. Thomas and a 32-year veteran of the airline business on St. Thomas, was incensed. He told Finch, "This has got to stop. You're destroying the economy of the V.I., and you'll make less money because you will have fewer landings. I beg of you not to do it."
Wikander, whose airline connects St. Thomas with San Juan, Fajardo and St. Barths, said the increased fees would force him to bypass St. Thomas and operate out of San Juan. "It's 18 cents per passenger to land there," he said, in contrast to the $3.50 per passenger in the V.I. He added, "If you cut the big guys, you will cut the little ones. My business is based on the major carriers; if you cut them back, it will have a domino effect."
Finch said the VIPA board has "agreed we are going to eat the losses from FY 2002." But he said the authority needs to cover the projected deficit for FY 2003. VIPA's financial statements show a continuous slide downward in the last year. Aviation revenues declined by $1.2 million and marine revenues dropped by $1.6 million in FY 2002. The largest items were a payroll increase of $2.1 million to meet a higher wages negotiated in 1999 and an increase in security activities.
The territory's air arrivals are down 9 percent from a year ago, which compounds other fiscal considerations for VIPA. The authority is expected to record a $10.4 million drop in cash and marketable securities for FY 2002.
VIPA's monthly board meeting is Wednesday. Several board members were present Tuesday, including Attorney General Iver Stridiron, who said the airlines have not treated the territory well in the last few years. "How about cutting the travel agents' commissions, forcing a number of agencies to close?" he asked.
Airlines come in for criticism, too
Stridiron also criticized the major airlines' recent elimination of senior citizen coupon booklets, saying that has had a direct effect on the territory's economy. "For instance, my mother makes three trips here a year, and she spends money on jewelry and clothes," he said. "Now, she will be able to come down only once."
Stridiron raised the question of whether the signatory airlines had ever offered not to claim the surplus in years when there was one. "I don't think so," he then answered, adding that VIPA and the carriers need to revise their contract.
He said the board would go over the budget figures "carefully" with its accountants before Wednesday's meeting. He did not rule out the possibility of a change in the planned increases.
"What we all should be doing is discouraging our leaders from the saber-rattling about Iraq," Stridiron told the full room, "or we won't see any planes in the sky going anywhere. If we go to war, people will lock up, close down; they won't be going anywhere."
Ken Johnson, Cape Air Caribbean regional manager, said the airline plans to hold steady. "We aren't going to cut back," he said. "We are committed to the Caribbean in the five years we've been here, and we re not leaving as long as we have passengers."
However, Johnson said, "With the territory's crime and now the garbage situation [haulers are striking on St. Croix], I'm pretty discouraged. It's hard to get passengers to come here as is. And then to have to say, 'By the way, we have to charge you $10 more.'"
The VIPA board will meet at 10 a.m. Wednesday in the same conference room.
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PUBLIC INVITED TO PAY LAST RESPECTS TO FARRELLY
Sept. 17, 2002 – The state funeral plans for Gov. Alexander A. Farrelly are finalized, according to a release from the Office of the Governor. The body will lie in state at Government House on St. Thomas for public viewing on Wednesday and Thursday, and the funeral Mass will be Friday morning at Sts. Peter and Paul Roman Catholic Cathedral in Charlotte Amalie.
Farrelly's body was to arrive in the Virgin Islands Tuesday afternoon, accompanied by the late governor's widow, Joan Harrigan Farrelly, other family members and Derek and Monique Hodge.
The body will lie in state on the second floor of Government House. Public viewing will be from noon to 8 p.m. on Wednesday and from 10 a.m. to 8 p.m. on Thursday. During those hours mourners can pay their respects and sign the memorial register.
On St. John, a memorial service will be conducted at 5:30 p.m. Wednesday at the Battery.
On St. Croix, a memorial service will be held at 11 a.m. Thursday at Government House in Christiansted.
The funeral Mass will begin at 9:30 a.m. Friday at Sts. Peter and Paul , with interment to follow in Western Cemetery No. 1.
In lieu of flowers, the family requests that donations be made to the Community Foundation of the Virgin Islands for the Alexander A. Farrelly Milestone Fund. The foundation address is PO Box 11790, St. Thomas VI 00801. Checks should be made out to the foundation with a notation that the contribution is for the Farrelly Milestone Fund.
A memorial service was conducted in Washington, D.C., on Monday. Farrelly's lieutenant governor, Derek Hodge, delivered the eulogy, and he and his wife, Monique Sibilly Hodge, were the official representatives of Gov. Charles W. Turnbull at the service, held at St. Patrick's Catholic Church. Viewing and memorials preceded a 10 a.m. funeral Mass. A reception at the nearby Hyatt Hotel followed.
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Farrelly's body was to arrive in the Virgin Islands Tuesday afternoon, accompanied by the late governor's widow, Joan Harrigan Farrelly, other family members and Derek and Monique Hodge.
The body will lie in state on the second floor of Government House. Public viewing will be from noon to 8 p.m. on Wednesday and from 10 a.m. to 8 p.m. on Thursday. During those hours mourners can pay their respects and sign the memorial register.
On St. John, a memorial service will be conducted at 5:30 p.m. Wednesday at the Battery.
On St. Croix, a memorial service will be held at 11 a.m. Thursday at Government House in Christiansted.
The funeral Mass will begin at 9:30 a.m. Friday at Sts. Peter and Paul , with interment to follow in Western Cemetery No. 1.
In lieu of flowers, the family requests that donations be made to the Community Foundation of the Virgin Islands for the Alexander A. Farrelly Milestone Fund. The foundation address is PO Box 11790, St. Thomas VI 00801. Checks should be made out to the foundation with a notation that the contribution is for the Farrelly Milestone Fund.
A memorial service was conducted in Washington, D.C., on Monday. Farrelly's lieutenant governor, Derek Hodge, delivered the eulogy, and he and his wife, Monique Sibilly Hodge, were the official representatives of Gov. Charles W. Turnbull at the service, held at St. Patrick's Catholic Church. Viewing and memorials preceded a 10 a.m. funeral Mass. A reception at the nearby Hyatt Hotel followed.
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GERS FACING COLLAPSE, SENATORS TOLD AGAIN
Sept. 17, 2002 – The only way to save the Government Employees Retirement System from collapse is to increase contributions from both employees and their employers — government agencies and departments — according to GERS attorney Alphonse Nibbs.
GERS is near collapse because it is paying out more in benefits than it is collecting in contributions, Nibbs and Lawrence Bryan, system administrator, told the Senate Committee on Economic Development, Agriculture and Consumer Protection on Monday.
"It started two or three years ago," Bryan said.
Sen. Roosevelt David termed GERS "very close to death's door." "If this system collapses, the entire community will be devastated," he said, noting that he expects crime to increase if that happens. He accused fellow senators of taking the situation too lightly.
Nibbs, attorney for the GERS board of trustees, said the board has repeatedly brought the problem to the Senate's attention "The body stayed silent and has not acted appropriately to put forth the best solution for the people," he said.
Raymond James, GERS board vice chair, put the unfunded liability figure at $518 million, but fellow board member Yvonne Bowsky said the figure was closer to $800 million.
"If we don't act now, it will go higher," Sen. Emmett Hansen II said.
Bryan said GERS loans total $100.8 million. The system has made 6,273 personal loans totaling $62.9 million, 1,763 retiree loans totaling $9.3 million, 999 mortgage loans totaling $26.9 million, 31 land loans totaling $358,628, and 158 auto loans totaling $1.2 million. These loans account for 20.7 percent of the system's allocated operating expenses.
While several officials of the territory's banking community were invited to testify on their institutions' rates, points and closing costs, none showed up to do so.
"I think they have something to hide. They said they were going to be here," said Sen. Adelbert Bryan, the committee chair. When the banks want something, he said, their officers are quick to appear at Senate hearings.
Lloyd Williams said he had noticed a large number of mortgage foreclosures in the past few months. He said this was uncommon for the territory, and "someone should wave the flag and protect the consumer." He also said that mortgage rates nationally are as low as 4.7 percent, but the best he could find in the territory was two points higher than that.
Sen. Bryan said most of the territory's banks are "predatory lenders" because they receive various exemptions and benefits but don't reinvest in the community. He had particularly harsh words for V.I. Community Bank, because it receives Economic Development Commission tax breaks. "They should have lower rates," he said.
The committee heard from Ken Kenion of the finance company Commoloco. He said that the number of finance companies in the territory has dropped from four to one because the maximum interest rate allowed at such companies is capped at 19.5 percent. He said loans made through finance companies locally stand at $30 million.
The senators heard audio testimony from Lt. Gov. Gerard Luz James II. Speaking to the committee via the Legislature Building telecommunications system, James said that banks want a financial services act, and that this is in the works. He said the V.I. Banking Board received the document last week.
Committee members present for the session were Sens. Bryan, David, Hansen and Vargrave Richards. Not present were Donald "Ducks" Cole, Norman Jn Baptiste and Celestino A. White Sr.
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GERS is near collapse because it is paying out more in benefits than it is collecting in contributions, Nibbs and Lawrence Bryan, system administrator, told the Senate Committee on Economic Development, Agriculture and Consumer Protection on Monday.
"It started two or three years ago," Bryan said.
Sen. Roosevelt David termed GERS "very close to death's door." "If this system collapses, the entire community will be devastated," he said, noting that he expects crime to increase if that happens. He accused fellow senators of taking the situation too lightly.
Nibbs, attorney for the GERS board of trustees, said the board has repeatedly brought the problem to the Senate's attention "The body stayed silent and has not acted appropriately to put forth the best solution for the people," he said.
Raymond James, GERS board vice chair, put the unfunded liability figure at $518 million, but fellow board member Yvonne Bowsky said the figure was closer to $800 million.
"If we don't act now, it will go higher," Sen. Emmett Hansen II said.
Bryan said GERS loans total $100.8 million. The system has made 6,273 personal loans totaling $62.9 million, 1,763 retiree loans totaling $9.3 million, 999 mortgage loans totaling $26.9 million, 31 land loans totaling $358,628, and 158 auto loans totaling $1.2 million. These loans account for 20.7 percent of the system's allocated operating expenses.
While several officials of the territory's banking community were invited to testify on their institutions' rates, points and closing costs, none showed up to do so.
"I think they have something to hide. They said they were going to be here," said Sen. Adelbert Bryan, the committee chair. When the banks want something, he said, their officers are quick to appear at Senate hearings.
Lloyd Williams said he had noticed a large number of mortgage foreclosures in the past few months. He said this was uncommon for the territory, and "someone should wave the flag and protect the consumer." He also said that mortgage rates nationally are as low as 4.7 percent, but the best he could find in the territory was two points higher than that.
Sen. Bryan said most of the territory's banks are "predatory lenders" because they receive various exemptions and benefits but don't reinvest in the community. He had particularly harsh words for V.I. Community Bank, because it receives Economic Development Commission tax breaks. "They should have lower rates," he said.
The committee heard from Ken Kenion of the finance company Commoloco. He said that the number of finance companies in the territory has dropped from four to one because the maximum interest rate allowed at such companies is capped at 19.5 percent. He said loans made through finance companies locally stand at $30 million.
The senators heard audio testimony from Lt. Gov. Gerard Luz James II. Speaking to the committee via the Legislature Building telecommunications system, James said that banks want a financial services act, and that this is in the works. He said the V.I. Banking Board received the document last week.
Committee members present for the session were Sens. Bryan, David, Hansen and Vargrave Richards. Not present were Donald "Ducks" Cole, Norman Jn Baptiste and Celestino A. White Sr.
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