Prime Minister Gaston Browne has defended the Government’s handling of the proposed redevelopment of the Cassada Gardens Racetrack, insisting the administration supported the EC$30 million investment but refused to grant a waiver of the mandatory eight percent gaming fee because it would have created an unfair advantage within the industry.
Browne’s comments came in response to a public statement issued by the Antigua Turf Club, which said negotiations over the redevelopment project stalled after the Government and the prospective foreign investor failed to reach agreement on one aspect of the proposed concession package.
In a statement issued on Tuesday, the Prime Minister said the Government had already approved substantial incentives to facilitate the investment.
“Our government gave the foreign investor a ten-year corporate tax holiday, a casino licence, among other concessions,” Browne stated.
However, he said the negotiations reached an impasse when the investor requested an exemption from the statutory gaming levy.
“They demanded a waiver of the eight percent gaming fee which all owner-operators are required to pay.”
Browne argued that approving such a request would have placed existing gaming operators at a competitive disadvantage.
“To waive it would give them an unfair advantage and we declined their offer,” he said.
The Prime Minister dismissed suggestions that the Government opposed the redevelopment of the Cassada Gardens facility, maintaining that the administration had demonstrated its support through the concessions already offered.
“How does that translate into the government not supporting the project?” he asked.
Browne also suggested that if the project’s viability depended solely on the gaming tax waiver, the Government would rather extend similar support to a local investor.
“If the foreign investor is depending on that tax waiver to develop the facility, we rather give the concession to a local operator, including the Turf Club itself,” he stated.
Reaffirming the Government’s position on fiscal responsibility, Browne said the administration would not agree to concessions that significantly erode public revenues.
“No plundering and bartering of government’s tax revenue will be entertained,” he declared.
Mr Prime Minister for the public please quantify in figures the amount government is giving up in these concessions you speak about