‘Rising wages alone will not ease BVI cost-of-living pressures’- Hon Walwyn
Hon Walwyn made the remarks during the continuation of the Fifth Sitting of the Third Session of the Fifth House of Assembly on Thursday, August 13, 2026, as lawmakers debated amendments to the Statutory Rates, Fees and Charges Act, 2005.
The amendments pave the way for a targeted adjustment to electricity rates for consumers using more than 1,500 kilowatt-hours per month. The measure is intended to improve the financial sustainability of the BVI Electricity Corporation (BVIEC). The government has said that approximately 919 of BVIEC’s 17,680 customers would be affected, while about 95 per cent of customers would see no direct change to their electricity bills.
Hon Walwyn said the central focus of policymakers should be increasing residents’ disposable income, rather than relying solely on salary increases.
'Higher salaries don't shield residents from increases'
“Let our efforts not be, when it comes to dealing with people's livelihood, let the effort be to try to make people have more disposable income,” he said. “That is the key.”
He cautioned that higher salaries do not necessarily shield residents from increases in essential expenses, including rent, mortgages, insurance, food, electricity and fuel.
“Because if you might think that you're increasing the amount in terms of salary, which you should, you know. But you can't bank on that alone,” Hon Walwyn said.
According to the Sixth District Representative, wage increases can also contribute to wider price increases, particularly when adjustments to the minimum wage affect other salary levels and business operating costs.
“And if the minimum wage goes up, like it did, it affects every other level above, and that then also increases the cost of services to people,” he said.
'Higher electricity costs for businesses could be passed to customers'
Hon Walwyn also expressed concern that higher electricity costs for large consumers could eventually be passed on to customers through increased prices for goods and services. Similar concerns were raised during the debate that businesses, including supermarkets, could transfer increased operating costs to consumers.
“There’s a lot that people are dealing with right now,” Hon Walwyn said, pointing to the combined pressure of housing, insurance, food, electricity and other household expenses.
“It is hard for people in the Virgin Islands,” he added, urging the government and lawmakers to develop broader measures to address the financial challenges facing residents.
The debate on the electricity-rate adjustment was led by Premier and Minister of Finance Dr the Honourable Natalio D. Wheatley (R7), who said the targeted measure was necessary to support BVIEC’s financial viability while limiting the direct impact on the majority of customers.
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17 Responses to “‘Rising wages alone will not ease BVI cost-of-living pressures’- Hon Walwyn”
I’ve seen all the excuses. Festival is only a few days people save for it and so on.But let’s be honest The same people making those arguments are the same ones who have been at almost every jam since the beginning of the year, attended multiple poker runs in new outfits, gone to pop-up fetes including Xmas in July, and already probably ordered new outfits for upcoming events for example BoB.
People say, He’s pocket-watching, Festival is only a few days. But how much have people already spent on events in 2026? If another event came up, many would still find the money. The issue is priorities. I know people who didn’t attend Festival at all- Yes, they could’ve found $40 for the Village or $60 for food, but they chose not to. Having money doesn’t always mean you should spend it or can afford to spend it.
Meanwhile, some will spend $1,200+ on outfits and events but struggle to spend $300 on a water tank for basic needs.
This isn’t pocket-watching It’s about poor money management and misplaced priorities. We don’t just have a money problem—we have a priority problem. People find money for what they want, but not for what they need.
The reality is that many workers in the BVI already earn above the minimum wage. For those individuals, a minimum wage increase does not directly improve their income or purchasing power. Their salaries remain the same, while the cost of goods and services often continues to rise.
One of the biggest concerns is how businesses respond to higher labor costs. Supermarkets and other retailers frequently point to increased operating expenses as justification for raising prices. Whether the increase is large or small, consumers are often the ones who ultimately pay for it. If wages go up but the cost of groceries, household goods, and essential services rises at the same time, many families will see little to no real benefit.
This is especially concerning in a territory where the cost of living is already among the biggest challenges facing residents. A person may receive a higher paycheck on paper, but if food prices, utilities, rent, and other necessities increase shortly afterward, that wage gain can quickly disappear.
Rather than focusing solely on minimum wage increases, I believe the BVI would benefit more from strong and effective consumer protection measures. Consumers need confidence that they are being treated fairly and that businesses are not using every policy change as an excuse to increase prices beyond what is reasonable.
Effective consumer protection could include stronger oversight of pricing practices, greater transparency for consumers, and better mechanisms for investigating complaints. It could also help ensure that market competition remains healthy and that residents are not unfairly burdened by excessive costs.
The goal should be to improve the standard of living for everyone, not just increase wages on paper. If the cost of living continues to rise unchecked, wage increases alone will not solve the problem. What residents need is real purchasing power, fair pricing, and an economy that works for both workers and consumers.
Raising the minimum wage may help a portion of the workforce, but it is not the solution to the broader economic challenges facing the BVI. In my view, meaningful consumer protection and cost-of-living reforms would have a far greater impact on the daily lives of residents than another increase in the minimum wage.
At 8%, someone making $39,000 would pay $1,760 in tax, while someone making $50,000 would pay $3,200 just because their exemption drops back to $10,000.
Why punish somebody just because they earn a little more? Keep the same tax exemption for everyone.
For those of us who chose not to attend Festival, saved our money, handled our financial obligations, and maintained our priorities, it is frustrating to constantly hear about the cost of living while watching people spend heavily on partying and entertainment.
I remember someone calling me “broke” simply because I said I don't agree with what Festival promotes or the influence some of its culture can have on young people—sexualized behavior, minors being exposed to inappropriate environments, violence, fighting, excessive drinking, gangs, drugs, and the glorification of a fast and reckless lifestyle.
So if I’m “broke” because I chose not to participate, don't turn around and get offended when Fraser points out that people clearly found money to party despite complaining about the cost of living.
Nobody had a problem discussing how many Festival tickets were sold. Nobody had a problem debating which night had the biggest crowd or how many people showed up for major artists. People were proudly talking about attendance and spending when it was time to celebrate. So don't suddenly get offended when someone points out that those spending choices appear inconsistent with the constant complaints about financial hardship.
Now, to be fair, I don't believe you can use Festival attendance to judge an entire population. There are people who genuinely struggle financially and still spend a little money on entertainment to unwind. There are also people who didn't attend at all, like myself, and used that money toward bills, savings, debt, or other financial goals.
But let's also be honest: there are people who simply cannot go without partying. They will spend their last dollar on an event while having outstanding financial responsibilities. That is a question of priorities—not necessarily income.
And if your argument is that Festival is simply about relaxing and unwinding, we live in paradise. We have beaches, hiking, restaurants, spas, boating, quiet evenings, and countless other ways to enjoy ourselves without participating in an environment that repeatedly ends up associated with excessive drinking, fights, inappropriate behavior, minors being exposed to adult activities, drugs, smoking, and other destructive behavior.
What bothers me even more is the contradiction surrounding violence.
We constantly talk about gangs, guns, drugs, violence, and the need for change. Yet when serious incidents happen during these festivities, including shootings and even deaths, the response isn't always to collectively say, “Enough is enough.” The party continues.
Then afterward we mourn, march against gun violence, demand change, and ask why our young people are becoming increasingly violent.
At some point, we have to examine the culture we are willing to financially support.
I'm not saying everyone who attends Festival is a bad person, nor am I saying everyone who enjoys partying is irresponsible. People have different priorities, and adults are free to make their own choices.
But don't attack people who choose differently, call them “broke” or boring because they don't want to participate, and then become offended when someone points out the contradiction between those choices and the complaints about the cost of living.
If the cost of living is genuinely hurting you, then show it through your choices.
Reduce unnecessary spending. Stop financially supporting things you believe are contributing to the problem. Organize peaceful demonstrations. Boycott events. Put your money toward your household, your children, your savings, your debt, and your future.
Because electricity prices are going up, businesses are facing higher operating costs, and those increases will eventually reach consumers. Those prices aren't likely to magically come back down.
So let's see what happens when the next major party event comes around.
Will the same people who say they can't afford the cost of living suddenly find money for tickets, drinks, food, transportation, and partying?
That's the contradiction Fraser was pointing out.
And honestly, I think his comment caught a nerve because there is some truth in it.
You cannot complain about being financially squeezed while simultaneously making discretionary spending one of your biggest priorities—and then attack someone who chooses to prioritize saving, responsibility, and financial stability.
I didn't attend Festival. I saved my money. I handled my responsibilities. I met my financial goals for the month.
And I'm perfectly comfortable with that decision.
Different priorities. Different choices. Different results.