Prime Minister Gaston Browne
Prime Minister Gaston Browne has indicated that new legislation could soon require banks and private-sector businesses to allocate a portion of their profits to the development of key sectors such as education and agriculture.
In Parliament Thursday, Browne suggested that a mandatory contribution of at least 5% of their profits could be established to support these vital areas, particularly in ensuring food security and bolstering manufacturing in Antigua and Barbuda.
Browne emphasized the immateriality of contributions for banks, considering their substantial profits.
“If you’re making $50 or $60 million a year and can set aside $3 million for agricultural development, that’s money well loaned,” he stated.
He underscored the necessity of forcing banks to invest in national development if they are unwilling to do so voluntarily, encouraging legislators to take revolutionary steps for the country’s advancement.
During the session, the Prime Minister also touched on the passage of the Antigua and Barbuda College of Advanced Studies (ABCAS) bill, which aims to consolidate four existing tertiary institutions under one umbrella. This new institution will provide comprehensive educational programs and training to meet the needs of the nation.
Browne implored the private sector to play a more active role in supporting educational institutions, stating that those benefiting the most from the economy should invest in developing a skilled workforce.
He highlighted the importance of private sector involvement, suggesting that a culture of voluntary contributions to educational institutions should evolve rather than relying on appeals for donations.
Additionally, he proposed the creation of a dedicated trust fund for ABCAS with a government seed contribution of $20 million, which could generate approximately $1.6 million annually to support its operations. Browne also recommended establishing an alumni fund to encourage ongoing financial support from former students.
This call to action signals a significant shift in the relationship between the government, banks, and the private sector in Antigua and Barbuda, as the Prime Minister advocates for a collaborative approach to national development and sustainability.
Here we go again another politician telling private businesses what to do with their shareholders profits, and it is always the banks that they are coming after. They don’t seem to understand that banks are governed by rules as to who we can lend to if we lend to an industry that is high risk , think the effects of a hurricane on a farmer’s crops then, we may be required to set up a reserve for the entire amount to those loans, or in ordinary language we would have to right them off because the perceived risk is too high. So it is easy to say banks should do this and banks should do that but the reality is, it is easier said than done.
Thanks concerned banker for shedding some light on this situation. Many think it is an easy task to just lend out money but it is not easy.
And if they don’t do what you want which they not going do if they smart, what you going do about it ? Close them down?.. since you small you always loved what’s not yours being a deprived child, you haven’t changed
Ah boy. Gaston A Browne is always full of suprises. You are truly something else. We love you still. Always coming after someone or some entity
Where there’s a will there’s a way….why must only one side profit? Why can’t it be a win win? By investing in the community everybody wins.
I totally agree for the amount of money they make in fees and profits