Leader of Government Business in the Senate, Senator Shenella Govia, is urging fellow senators, and by extension the nation of Antigua and Barbuda, to ‘trust the process’ by exercising faith that the Gaston Browne Administration’s record of successful investments in the past, will have similar results for Social Security’s takeover of the Jolly Beach Hotel.
Sen. Govia was speaking on Wednesday in the Senate as the Upper Chamber of parliament met to discuss the government-sponsored resolution to give legislation backing to the move to transfer ownership of Jolly Beach Hotel to the Social Security Board in order to reduce the government’s indebtedness to the Scheme.
“Madame. President, since 2014, this Government has been reshaping our economic model. We have embraced what our Prime Minister calls “Empowerment Capitalism” — a system where the State and private sector work together, but with one critical difference: profits remain here, in Antigua and Barbuda, to benefit our citizens.
“We have already seen results. The West Indies Oil Company is now majority-owned by our people. Over EC$160 million in profits have been retained and reinvested here. Our domestic banks, kept in local hands, posted EC$110 million in profits last year.
“The transfer of Jolly Beach is the next step in this vision,” she emphasised.
Sen. Govia noted that through this initiative, the government replaces delinquent bonds held by the scheme with a real, marketable, income-generating national asset — a 27-acre beachfront resort with 350 rooms, and the potential to expand by 200 more.
“Instead of a less than desirable IOU, Social Security will hold an asset capable of generating over EC$390 million in receipts within ten years, plus ongoing hotel profits. That is more than twice the value of the bond it replaces,” she explained.
He noted that without investment, the Fund will drown in deficits, but with investments, the Scheme secures cash flow, diversifies its assets, and strengthens its future.
