Raymond on MOU: Sandals concessions against public interest

THE memorandum of understanding (MOU) between Government and Sandals Resorts on the proposed Tobago project contains concessions that are against the public interest, says immediate past president of the Joint Consultative Council for the Construction Industry Afra Raymond.

Raymond had filed a claim alleging Government was unjustified in refusing requests for information on the deal under the Freedom of Information Act. The case was settled on Thursday in the High Court as it was determined Raymond had received all the information he had requested, one day after Communications Minister Stuart Young and Sandals officials announced the MOU was being made public.

Raymond, in an email interview with Newsday, said the release was "better late than never."

Young had said the decision to release the MOU was not because of the legal action but Raymond disagrees.

"(It is) absolutely so. The MOU was released the evening before our case management conference, so the claims of coincidence are comical. Last week I was saying that it looked like a flying pig giving birth to a white elephant, this week it resembling Tobago love."

Raymond said there are many positive features in the MOU in favour of the hotelier. He pointed to the tenth, eleventh and twelfth clauses which effectively give an open supply of work permits to Sandals.

"The MOU states that the resorts will be designed and built, fitted and furnished at state expense, up to and including two opening ceremonies - and Sandals will be getting incentives and concessions as per clause eight at page four. I consider that proposal to be against the public interest. Given that we are investing all the capital, how are we to secure a return on that investment, if there are further concessions/incentives granted to the hotelier?"

Raymond questioned if Government was considering granting tax or duty concessions to Sandals. He also said the MOU appears to inoculate Sandals from any future impact in terms of taxes, concessions or other incentives.