CABI Initiative Lauded for Stimulating Economy

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Economy

Thursday, 12 April 2012 02:30

By caribarena news

Antigua St John's - With more than 90 percent of the applications received to date coming from people under the age of 35, the Construct Antigua and Barbuda Initiative (CABI) is being labelled a catalyst for economic recovery and citizen empowerment in Antigua & Barbuda.

At a symposium on Wednesday at the Multipurpose Center, chairman of the Antigua & Barbuda Investment Authority (ABIA) Dr McChesney Emmanuel suggested that the programme, which began last August, could be extended past the February 2013 deadline, considering the success so far.

Investment Promotion Director at the ABIA Fitzmaurice Christian revealed that the average home construction going through the programme stands at $365,000, with 75,000 square ft, and married men comprise the majority of applicants (35 percent).

Two new homeowners, Mario Benjamin and Kerri-Faun Benn, told the attendees about their experiences with the programme.

Of the 70 projects submitted so far, at a total of $25.5 M, 42 were approved to date, at a total value of $19.5 M.

Christian said the CABI review in February brought on board four new propellers, that include the removal of both the revenue recovery charge and sales tax for new homeowners.

It also allowed existing homeowners who want to either renovate or expand to take advantage of the programme. The initiative is also open to Antiguan nationals overseas. Commercial housing projects are also included.

The duty-free concession aspect of the programme was removed, because it was found to be too cumbersome to regulate.

“It is going to make things simple and easier for everybody,” said Doug McLaren of the Inland Revenue Department.

Executive Director of the ABIA Lestroy Samuel told the room full of potential and existing homeowners, contractors, bankers, and insurance executives that the ABIA views the CABI as an important pillar at this stage of the Antiguan economic recovery, especially considering the reduction in business activity and the difficulties in which the government has in remaining financially sound.

He said the programme is designed to not only stimulate the economy and present the opportunity for reduced costs for building, but to simultaneously boost the construction sector and encourage potential homeowners to build.

“The spinoff effect is there… It is a national effort. All will benefit,” Samuel said.

ABIA Administrative Assistant Olivia Smith said another aspect of the changes is the introduction of training for the staff of the 16 hardware stores that have already signed on to the initiative. Bryson’s Insurance Company has also volunteered to offer free education programmes.

State Insurance Corporation (SIC) signalled its intention to provide specially-developed comprehensive packages for the new homeowners at considerable rates. This sparked similar on-the-spot commitments from ABI Insurance and Bryson’s Insurance.

Nicholas Hadeed, one of the architects of the programme, which was initially proposed in 2010, said he was pleased to see the idea finally come to fruition, but questioned the ABIA on why several aspects of the primary proposal had not yet been implemented.

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According to Hadeed, the programme envisioned between $100 M and $150 M in projects within its 18-month lifetime. But this yield was supposed to include foreign direct investment that has not yet been touched, six months into implementation.

Dr Emmanuel said this idea could be discussed further, and invited Hadeed to hold further discussions with the Authority.

“We know the economy is flat. We’re trying to jump-start the economy… We need to work together. You have a friend in the ABIA,” Dr Emmanuel said, as he encouraged contractors to take advantage of  reduced costs for services with a guarantee of being able to work and provide employment.

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