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FS legislation 'systematically eliminating' middle class in VI- Hon Fraser
He was speaking during the debate of the Financial Services Commission (Amendment) Act 2015 which took place earlier today April 20, 2016 during the Eighth Sitting of the First Session of the Third House of Assembly.
“Madam Speaker I have a bigger issue than the Panama Papers issue. My issue is the systematic elimination of the middle class in this territory as a result of this same financial services of the territory and the legislation that we constantly bring here.”
Hon Fraser said that each time the Government brings a piece of legislation to the House of Assembly it is another nail into the coffin of the middle class. He was making direct reference to the Bill that was being debated today.
“And I am not going to be quiet on this one Madam Speaker,” he said. “We talk about financial services on one hand and we talk about companies registration on the other. We know that all companies have to be registered in the territory but they are treated like they are in the financial services business,” he said.
This he said places undue burdens on the small businesses in a time when things are already hard on them.
“I don’t see five farmers getting together to form a corporation to run a greenhouse in Paraquita Bay having to deal with all of this nonsense about beneficial ownership, registered agent, having sections of their passport submitted to register this company and pay all this money when probably all they doing is growing some lettuce that they can’t get sold,” he said.
Find a way to remove the undue burden
Hon Fraser said that while company structure is needed for liability protection, he is asking for the Government to find a way to break away these kinds of companies from the financial services sector.
“We used to have local companies called local companies and we used to have international companies. We found a way to merge them. I am sure it was beneficial to a lot of us because I am sure we did not have to pay company tax. But the burden that is being placed on these companies right now is onerous and it is only going to get worse,” he said.
Honourable Fraser described a scenario where two men joined together to form a company so that they can pool resources to go fishing and then they are lumped together with large companies moving money internationally and have to be subject to the same conditions as those large companies.
He challenged anyone not understanding where he was coming from as having no heart and out of touch with the realities on the ground.
The Opposition Leader explained that out of the 450,000 or 500,000 companies registered in the territory, a number of them are local companies which have nothing to do with financial services but yet they are saddled with the same burden.
“I appreciate the need to go through all those rules and regulations but as Virgin Islanders who have been elected to represent the people, we are watching at the systematic decimation of our people...our middle class,” he said.
Chiding the Government side for their indications of their disbelief in what he was saying, Honourable Fraser said, “We are behaving like house servants...Prepare ourselves to do all the work in the house and you don't own the house. Which one of you owns a trust company?”
Honourable Fraser appealed to Premier Dr The Honourable D. Orlando Smith to bring the necessary changes to relieve the small business persons from the onerous burdens that they now face.
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9 Responses to “FS legislation 'systematically eliminating' middle class in VI- Hon Fraser”
Very simple for two fisherman to set up a company and the obligations are as light touch as they are anywhere in the world. It is the local protection laws which are more likely to cause an issue eg trade license requirements etc.