BASSETERRE, ST. Kitts, CMC- The St. Kitts-Nevis government says it is advancing efforts to establish a fair share agreement between the two islands, enlisting the expertise of an independent body under the World Bank.
“This administration is committed to fostering fairness, transparency, and collaboration between St. Kitts and Nevis,” said Prime Minister Dr. Terrance Drew, emphasizing the importance of this initiative in ensuring equitable revenue distribution and fostering fairness within the Twin Island Federation.
“An independent body will provide the objectivity and credibility required to develop an agreement that reflects the best interests of all citizens, ensuring a sustainable and equitable framework for future generations.”
Prime Minister Drew said that the issue of revenue distribution, particularly concerning non-taxable revenue from the Citizenship by Investment (CBI) program, has made establishing a fair share agreement more critical than ever.
Under the CBI, foreign investors are granted citizenship of the Twin Island Federation in return for making a substantial investment in the country’s socioeconomic development.
In 2023, Premier Mark Brantley said Nevis is entitled to an equitable share of the CBI revenue and that the previous government had agreed the revenue would be pretty apportioned on a pro-rata basis, a viewpoint he still holds.
“We want to be fair. We want an open, transparent process of sharing the country’s resources. What we proposed during the Team Unity era was a fair way because we said to base it on population.
“What the problem we had was that we were getting 500 [million] and 600 million dollars coming into the country, and Nevis was getting 40 [million] or 50 million [dollars], and St. Kitts was getting the balance,” he said then.
Prime Minister Drew said that the framework under development will address these challenges while aligning with constitutional provisions and strengthening the relationship between the two islands.
“The current framework for sharing taxable revenue is outlined in our Constitution, but the rise of non-taxable revenue sources such as the CBI program has introduced complexities that must be addressed.
“Our goal is to ensure that both islands benefit equitably from the Federation’s economic progress while maintaining our commitment to good governance and fiscal responsibility,” Prime Minister Drew said.
He said that the federal government continues to support Nevis robustly through essential services and direct financial contributions. These include funding for national security, ports, airports, fire services, and monthly budgetary support.
Prime Minister Drew said that having the World Bank facilitate the process adds significant value by ensuring impartiality and adherence to international best practices.
“This initiative will bring clarity and resolution to a matter that has often been contentious. It demonstrates our commitment to resolving complex issues with integrity and transparency. “This is a matter of great importance, and we are determined to get it right.
“The engagement of an independent body ensures that the final agreement will stand the test of time and reflects the principles of fairness and equity,” said Prime Minister Drew, calling for citizens’ patience and understanding as the process unfolds.
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