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FS legislation 'systematically eliminating' middle class in VI- Hon Fraser

- called on Gov't to remove the onerous burdens from local companies
Leader of the Opposition Hon Julian Fraser RA (R3) said 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. Photo: VINO/File
Leader of the Opposition Honourable Julian Fraser RA (R3) called on the Government to reclassify small businesses and local companies so that they can be free of the heavy burdens placed on international companies moving large amounts of money through the various vehicles in the territory’s financial services sector. Photo: VINO/File
Leader of the Opposition Honourable Julian Fraser RA (R3) called on the Government to reclassify small businesses and local companies so that they can be free of the heavy burdens placed on international companies moving large amounts of money through the various vehicles in the territory’s financial services sector. Photo: VINO/File
ROAD TOWN, Tortola, VI - Leader of the Opposition Honourable Julian Fraser RA (R3) called on the Government to reclassify small businesses and local companies so that they can be free of the heavy burdens placed on international companies moving large amounts of money through the various vehicles in the territory’s financial services sector.

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.

9 Responses to “FS legislation 'systematically eliminating' middle class in VI- Hon Fraser”

  • one thing i must say (20/04/2016, 15:36) Like (7) Dislike (0) Reply
    Fraser can represent.
    • tom cat (20/04/2016, 17:37) Like (4) Dislike (0) Reply
      the only one who can but ayo still did not want him to be the Premier
  • pat (20/04/2016, 16:48) Like (3) Dislike (0) Reply
    I agree with the Liberator
  • Long Shanks (20/04/2016, 17:24) Like (3) Dislike (0) Reply
    Fraser, is it the beneficial ownership disclosure obligations you object to? Big men in politics might well be afraid of having the true ownership of companies in the BVI disclosable due to conflicts of interest, but it is not going to be publicly available - only to FIA and UK law enforcement unit.

    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.
  • "Tis Truth!!" (20/04/2016, 19:09) Like (0) Dislike (0) Reply
    Fraser unlike others are talking about the issues I have to start tuning in again to watch the circus
  • cay (20/04/2016, 22:14) Like (0) Dislike (0) Reply
    'He who felt it, knows it. many small businesses were burned'.
  • Respect increased (21/04/2016, 07:22) Like (3) Dislike (0) Reply
    This article expressing Hon Frazer's opinion has began to put him in a much better light as far as I am concerned. I agree with the statement that the middle class is being systematically destroyed, while some live high up, the high flyers, who behave like they are Gods on earth, others can barely find food to eat.This is certainly not a good trend. We who are earning those humoungous salaries, should look out for the poor and the vulnerable in our society.
  • SB (22/04/2016, 11:11) Like (0) Dislike (1) Reply
    Sorry load of crap THE MIDDLE CLASS SYSTEMATICALLY ELIMINATING THEMSELVES TRY TO LIVE LIKE THE UPPER CLASS. If we all stayed in our financial lanes then there is no problem but you know black people....hang our hats high where we can't reach it.
  • Concerned (30/04/2016, 16:34) Like (0) Dislike (0) Reply
    This is one of the most significant issues that I have seen Frazer addressed. As a local who were accustomed to renew my company registration every year, I can no longer do it myself because of new regulation that NDP approved. I am forced to pay an Agent $500. for something that I was accustomed to do for many years. This is nothing but an insult to the integrity to qualified natives who have the ability to fill out an application and conduct their own business. I recently went to Financial Services to reserve a name for a prospective new company to be registered at a later date; the reservation fees were: $100. and $50.00 depending on the type of company you want to register, plus agency fee. Financial Services would not accept the application for reservation unless it came from an Agent. B.V. Islanders are definitely in trouble with this type of representation. I hope that the opposition don't just talk about it but do whatever is necessary to reverse these burdens on local companies, it's a travesty of justice insensitivity and lack of proper representation for locals .


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