Prime Minister Gaston Browne has outlined a bold investment proposal for a $75 million investment into Jolly Beach Hotel on behalf of the Social Security Scheme that will stabilize the future of the organization.
The prime minister explained the proposal this way; firstly, the government will wipe off its outstanding arrears to Social Security by floating a bond. Portions of the proceeds from the bond, an estimated $75 million, it will use to invest into the Jolly Beach Hotel, one of the leading hotels in the country and already a profitable enterprise.
He further explained that Social Security Schemes around the world cannot rely solely on deductions from contributors to pay pension and other benefits because in many cases the number of pensioners is growing faster than the number of contributors. Additionally, it usually takes a ratio of ten contributors to one pensioner which is the worldwide recommended standard. Antigua and Barbuda has never attained that benchmark.
Consequently, PM Browne said it is important for the Scheme to investment in profitable enterprises to ensure its long-term viability.
Despite criticism from former UPP Political Leader, Harold Lovell, the prime minister’s proposal is attracting support from several quarters, including the publication of a recent Letter to the editor by an anonymous onlooker.
Key highlights from the letter:
- Jolly Beach currently earns over US$1.5 million annually in its underdeveloped state.
- With upgrades and competent management, this figure could double to US$3 million, creating ‘a steady revenue stream’ for Social Security.
- The move ‘diversifies’ Social Security’s portfolio away from ‘underperforming bank deposits’.
- It creates ‘jobs, boosts tourism’, and promotes national economic resilience.
According to Browne, Lovell has mischaracterized the project as a reckless move that endangers pension funds. The Prime Minister rebuffed this narrative, explaining that the investment is meant to ‘generate sustainable revenue’ to support long-term pension payouts and revitalize a critical tourism asset.
He accused Lovell of ‘willful distortion’ for political gain and dismissed his economic credibility. Citing Lovell’s record as finance minister, PM Browne noted that under his tenure:
- Antigua and Barbuda ‘lost 25% of its economy’ between 2009 and 2014.
- Recovery ‘never materialized’, and the collapse could not be blamed solely on the global crisis.
- Poor financial judgment led to ‘massive personal and national failures’.
