BASSETERRE, St. Kitts, CMC – The St. Kitts-Nevis Chamber of Industry and Commerce is suggesting that the Government repeal the Special Sustainability Zones Authorization Act, 2025 (SSZ) and undertake “extensive” public discussions on ”the exact nature and extent of special economic zones”.
In an 11-page letter to Prime Minister Dr. Terrance Andrew, the private sector group said that the public discussions will also allow for the “potential advantages and disadvantages” of the zones, as well as outlining the “protections, parameters, and guardrails that would be required to promote economic development.
“Alternatively, if repeal is not considered advisable, Government should suspend the authorisation of any zone under the SSZ Act, pending the outcome of the recommended public consultations, following which the legislation should be amended to provide the necessary protections and guardrails,” according to the letter signed by the Chamber’s president, Trevor E Blake.
The private sector group said it recognises the importance of foreign direct investment for national development and acknowledges the use of special economic zones in other countries.
“The Chamber also recognises the disadvantages of this system and the negative experience from which some countries have suffered in using this form of economic development,’ it said, noting that having reviewed the SSZ and the proposed Destiny Project in Nevis, it “has serious concerns about the structure and implications of this legislation and its immediate application.
“We are very aware that our country is unique, given its size, economy, population, challenges, and culture. We also hold the view that the will of the people of our country is a critical factor in the adoption of this system, especially as the first zone proposed contemplates almost doubling the population of Nevis without any genuine debate on the implications,” the Chamber said in the November 12 letter, a copy of which has been obtained by the Caribbean Media Corporation (CMC).
The private sector group said that the SSZ Act, as a mechanism for such economic development in the twin island Federation, “is vague, general, and uncertain and as a result highly questionable.
“Among other deficiencies, it does not reflect or establish clearly defined and detailed government policies on the radically new system proposed to create special autonomous zones with separate zone laws and bylaws and with incentives and powers given exclusively to zone developers.
“There are no legislated protections of important existing systems and laws. The Act is also silent on the protection of many important existing statutory rights of citizens. The Act does not adequately address the protection of the country’s democracy.”
The Chamber said that the SSZ Act’s language is unclear, raising serious questions about its intent.
“We are aware that the Government intends that each zone will be established pursuant to a development agreement made in accordance with the provisions of the Act. However, given the uncertainties described, questions could easily arise as to the compliance of provisions of a development agreement with the language of the Act.”
The private sector group said that it regards it as its duty, “therefore, to bring these uncertainties to the attention of Government and the public”.
It said that the Government’s policy of leaving the details to be determined by individual negotiated development agreements suggests that the Government is prepared to attract investment under the SSZ Act based on the vaguest of policies and purely by negotiation on a case-by-case basis with each potential developer.
But it argued that “the lack of consultation with the people on such significant legislation and the fact that some consultation is belatedly taking place after its enactment create additional justifiable suspicions.
“The Chamber takes the view that in any event certain key guardrails should not be crossed in any development agreement,” it said, noting that “these guardrails should be set out in the enabling legislation and not left to the discretion of the Government”.
The Chamber said that it remains a “trusted development partner and reaffirms its commitment to fostering sustainable investment and responsible economic development.
“The Chamber, therefore, stands ready to participate in these discussions and to collaborate with the Government in formulating a new regime,” the letter added.
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