Who will bear the cost of bringing the Caribbean closer together?
This seemed to be the question which emerged as once again Caricom leaders spoke of the possibility of an inter-island ferry service being established at the 45th Caricom Regular Meeting and 50th Anniversary celebration in Port of Spain, Trinidad and Tobago earlier this week.
The topic was reignited on Monday when Guyanese President Irfaan Ali confirmed that regional travel remained an issue high on the agenda.
“Transportation remains one of the most critical issues of the region. That is why it continues to be on the agenda. But we have been making some progress. At least now there are a number of interested parties who have expressed interest in being part of the solution. So I think we are moving now from that conceptualisation stage to a stronger position of finding a solution,” said Ali, in an exclusive interview with Guardian Media at Femmes Du Chalet, formerly known as the Breakfast Shed at the Port of Spain waterfront.
“We would like it to happen yesterday. That is why it is on the agenda. I think that the update we get at this meeting would allow us to see how fast we can move and I think what we need to do now is to concretise who the different partners are, where we have interest and then pursue those partners,” said Ali.
Prime Minister of St Vincent and the Grenadines Ralph Gonsalves admitted the current state of inter-regional travel was lacking and confirmed that his country was hopeful that talks around a possible regional ferry would soon be brought to reality.
“The discussion has been going on a long, long time. The issue is to have a private sector entity with sufficient resources, and prepared to go for the long haul, with support from governments to do this. Because there’s a need, there’s a marketplace, but we have had private sector entities come forward in relation to this matter,” he said.
The emphasis that private sector involvement was needed was stressed on Tuesday by T&T Prime Minister Dr Keith Rowley, who pointed out that running such a service was going to be costly, as he noted the Trinidad and Tobago inter-island ferry service cost the government between $200 and $240 million annually in subsidies.
“Most of it is fuel. Once you acquire the ferry, like you mention the airline and Trinidad having oil, but having oil or gas doesn’t put cheap fuel into a plane,” said Dr Rowley, “These things are priced in a particular way. Fuel is available but you have to pay for it. We don’t get fuel from Shell or BP for free. We have to pay for it.”
He said the added dimension of travel up the island chain would prove even more costly and it was unlikely a government could subsidise such an endeavour.
“I don’t see a subsidy that would be required for a fast ferry for us and up the islands. I don’t see it on the cards. The resources are not there,” said Rowley who even pointed out there were talks between this country and Barbados concerning a seaplane service, but even this would require private sector investment.
“I don’t know that our business houses are keen to do that. We don’t have the large pool of entrepreneurs with deep pockets for whom that is something they see as an opportunity. But if that was there, it’s cheaper than operating a fast ferry, a boat ferry,” said the Prime Minister.
“Who is going to invest and for whom is this a priority?” he asked.
But on the topic of regional flights, St Vincent Prime Minister Gonsalves applauded the fact that Caribbean Airlines had announced increased flights around the region. He said, though, there is still the need for a second regional airline to operate.
“There are important questions to decide. Are you going to start a new airline or are you going to have Liat 2020 or whatever the case might be? So there are some decisions to be made and not so much from the heads but the governments that want to participate in this exercise,” said Prime Minister Gonsalves.
Another re-emerging topic at the meeting was food security. However, unlike regional travel, the leaders could point to signs of progress.
A target had indeed been set for food security before the leaders converged in T&T’s capital, via the 25 per cent by 2025 reduction in the regional food bill initiative committed to by Caricom last year.
Guyanese President Irfaan Ali posited a new avenue the region could explore in addressing that goal as he noted that Guyana was uniquely positioned to push this drive from both a geographical and economic standpoint.
“I think if we work in a more collaborative way, there are a number of business opportunities that can be developed that Guyana can be a bridge for. For example, northern Brazil and the role it can play in food security to bring more raw materials in terms of food production to the value-added chain and re-engineering the whole food supply and logistics chain throughout the region,” said Ali on Monday.
He pointed out that since Caricom launched this drive, there had been much positive impetus in the Agriculture sector.
“We have been able to build tremendous interest from the public and private sectors and we have seen a lot of private relationships being built and a lot of co-investment proposals coming forward. And from the government side, the prioritisation of food production and agriculture has definitely ignited new interest and new energy in agriculture and food production,” he said.
Prime Minister of St Vincent and the Grenadines Ralph Gonsalves similarly hailed Guyana’s role in progressing the reduction of the region’s food bill but admitted that there had been inconsistent levels of effort across the region.
“The President of Guyana is doing a lot of good work on the initiative, to reduce food imports by 25 per cent by 2025. I don’t know if we’re going to get to it. But at least you have to set yourself targets and we are seeing some impact already. It is just another two years to 2025. The progress is uneven, but it’s good that we’re making progress,” he said.
Prime Minister Gonsalves however was heartened that the drive had brought a realisation that the traditional economic positions were no longer the status quo. He was, as a result, grateful that new faces, ideas and approaches were being considered.
“A lot of countries realise that the days of the colonial preferences for commodities, whether it’s sugar or bananas, those days are gone. So you’ll have to do things which are competitive. And we’re seeing that some younger farmers are getting involved,” said Gonsalves.
He acknowledged that new approaches also had to be accepted concerning tourism as he explained that St Vincent had begun work to expand on its already impressive tourism portfolio as it expected a new Sandals resort and a Marriott to be constructed soon while other investors from Canada and the United States had shown interest in developing hotels in the Caribbean.
“I would say by the end of 2026 we will have an additional 1,000 rooms of high quality. So it’s being built out. What we’re doing in St Vincent and Grenadines is that we are building. We are on the quest to build a modern competitive, many-sided post-colonial economy. Which is at once national, regional and global with all those words pregnant with real meaning.”
Gonsalves stressed that while tourism itself was a money-making industry, it also fed other aspects of the local economy which needed stimulation and development.
“In tourism, you have to deal with fisheries we made we have a big plus in that because we bring tourists you have to give them fish to eat.
“You have to give them a lot of fruit and grow provision and vegetables so that the farmers could make a dollar.
“And because we are coming a little late to what you may call mass tourism, we have we have a high level of tourism in the Grenadines for instance, Mustique I don’t know if you know this, but the island of Mustique, through the Mustique company they contribute gross to the economy of St. Vincent Grenadines annually US$150 million. It’s a big number,” he said.
“So we have fairly good high-end tourism and we have good yachting tourism, and yachting tourism makes a fair amount of money. But we have the cruise (ships) I know. But we are going to do and we’re doing more mass tourism.”
