By Kerry Harvey - SUN News Editor

THE UK GOVERNMENT will not provide a financial boost to the Turks and Caicos Islands economy – because they believe we should pay income taxes instead, this according to a prominent member of the UK foreign office.

Speaking at the Chamber of Commerce meeting on Wednesday, July 8, Colin Roberts, the UK’s Director for the Overseas Territories at the Foreign and Commonwealth Office, stunned the audience by suggesting TCI citizens should pay taxes on their earnings.

At present, people living in the TCI don’t pay income tax, however, are hit hard by huge taxes on imported goods which drive the cost of living up significantly. 

Mr Roberts said: “Why should the UK fund the luxury of all these local advisors here? You won’t like this, but why shouldn’t people here pay taxes?” 

Mr Roberts made the startling remarks in response to calls for a financial stimulus from the UK government to kick-start the flagging economy which has been crippled by the global economic crisis and the state of political limbo which the country has fallen into. 

But the stimulus call has fallen on deaf ears as Mr Roberts ruled out any cash injections from the UK government into the TCI. 

He told audience that although he recognised that the TCI was effectively broke, the UK tax payers would not be ‘dipping into their pockets’ to fund its financial recovery which had been caused by the ‘mismanagement of public’ funds.

Mr Roberts said: “You want people in the UK – who are paying income tax rates of up to 40 percent or more - to pay for you?”

“The proposition, as seen from the UK, is that this country in the Caribbean, has officially at least a GDP per capita which is similar to or possibly greater than that of the UK.

“That tax payers from the UK, should not have to dip into their pocket to pay for a gap in the economy created partly through the mismanagement of public monies here in the TCI, it is not one that would win a great deal of support with our public or our parliament.

“We’re experiencing a recession in the UK, as are many other counties. The responsibility with dealing with the fiscal situation lies here in the TCI.

Roberts further stated: “It is an enormous pity that with all the millions – billions of dollars – flowing through this territory in recent years the government is effectively bankrupt.This is fixable and we will fix it.”

Although Mr Roberts turned down calls for a cash injection, he vowed to assistance the TCI’s economy get back on track. 

He said: “If it’s absolutely necessary, we can facilitate a relaxation of the borrowing requirements on the government of the Turks and Caicos, so it can meet its most important commitments.

“In order for us to do that, we need to see action in controlling the public expenditure which is unjustifiable and we want action in a more vigorous approach to increasing revenue. 

“We’re going to provide the support and make sure that public finances in the TCI fall back in balance.

“At the moment, if there is going to be a fiscal stimulus, it has to come out of funds from the TCI and not out the public finances of the UK.”

Mr Roberts also explained to the Chamber of Commerce meeting that he was reluctant to promote the Turks and Caicos until the political situation was on the road to recovery. 

He said: “What the international business community is looking for is not messages and statements – its action. They want to see us clearing up the problem.”