Debate Contribution By The Hon Asot Michael Minister of Tourism, Economic Development, Investment and Energy State of the Industry Address Rebuilding a Stronger, Safer and Prosperous Antigua and Barbuda Mr. Speaker, Members of this Honourable House, Citizens and Residents of Antigua and Barbuda… I congratulate the Honourable Prime Minister on one of the finest budget presentations ever made in this Honourable house. I am again honoured to have the opportunity to represent the people of St. Peters who elected me to this Honorable House, to be a part of a team that is charting the way forward to improve the lives of all Antiguans and Barbudans at this most challenging time. Mr. Speaker, I have been graciously endowed with a new lease on life; I want to at the very beginning of my budget contribution to re- confirm my undying love for this country. My love for my fellow Antiguans and Barbudans, my parliamentary colleagues and my commitment to work, to make Antigua and Barbuda a country which we all can be proud of. A country where we can all live in peace and prosperity. Mr. Speaker, As Parliamentarians we have a special responsibility to ensure our country prospers and our people can have a comfortable life, where all our people can be the best they can be and have an opportunity to strive and work hard at attaining their life’s dreams.

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Mr. Speaker, We have laid a solid foundation over the last year and a half in the area of Tourism, Economic Development Investment and Energy and our actions have now begun to bear fruit. The nation has started to see the tangible deliverables of our Administration’s efforts to improve the standard of living for the good people of Antigua and Barbuda. Mr. Speaker, This budget marks a watershed moment in our country’s development. It is the point where more, jobs, more disposal income and more opportunity begin to flow to our people to ensure that their future and the future of this country are restored. This is the year when the rebuilding engine, will be running full throttle. The promise made to the people of Antigua and Barbuda, to again give them hope; to again provide opportunity to re-build their lives is being kept. The smiles have returned to their faces and prosperity is now returning throughout the length and breadth of this land! Mr. Speaker, The fact is that since June 2014, the people of this blessed Antigua and Barbuda appreciated the new ray of hope brought in by the new ABLP administration. Their eyes were dimmed by the failures of the previous regime in those harsh years when neither the then Minister of Tourism nor, the then Prime Minister and his Cabinet could muster the intestinal fortitude to tell you the real truths about noninvestments and the great losses that were being experienced in tourism and the economy. The people of this nation had their hopes sunk, but they were rescued and brought back to life with the coming in of the ABLP. We make no idle boast or empty promises. We did our homework. We listened to you in every street and village, and we came up with the types of initiatives that would put food on tables, get people back to work, and get people to come and share in our paradise, while investing in the economic development and the social enablement of this country. 2

Mr. Speaker, We promised not out of want and desperation for power; but we promised because we knew we had to meet the expectations of the people in a real way. We had to save this country of ours from falling under the weight of an Unimpressive Poverty Prone (UPP) regime. And true to our philosophy in the ABLP, we put the people first and foremost in all of our rebuilding plans. This is the tradition and great legacy bequeathed to the Labour Party by VC Bird. We on this side all know that the workers and the people matter most in national development. Mr. Speaker, Today, I lay out the work undertaken given my ministerial portfolio. I will tell you of the strategic efforts that we have made, and the giant strides achieved in 2015, and the even loftier goals that will be achieved in 2016 and beyond. I promised the people of St. Peter and the country that we would deliver on tourism, investments, and energy, and with God as my guide, and with the strong support of the various teams working under the Ministries that I lead in terms of policy directions, the ABLP will deliver. A bountiful Antigua and Barbuda is ours, so do not be fooled by those who keep lots of noise now, but were silent when the pangs of hunger hit the empty bellies of this nation’s children and adults alike. Mr. Speaker, The years between 2004 and 2014 will be remembered, not for what we did, but for all that the UPP failed to do and never even bothered to try. The UPP abandoned people prosperity for showmanship, and they preferred backwardness to progress. That pathway to the precipice of disaster is no longer the case. The ABLP has already delivered on major investments and the continuous improvement of tourist arrivals. These are the mere signs of the times. I will explain in detail why it is that we shall prosper, and why we shall become the economic powerhouse in this region.

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TOURISM Mr. Speaker, Tourism continues to be the driving force of our economy. Most of the Nation’s commercial activities and growth in GDP is driven by the industry. Antigua and Barbuda will continue the winning formula and roll out a strategic plan for an action agenda based on sustainability, community, and heritage tourism all delivered with an authentic Antiguan and Barbudan experience. For this all hands are required on deck. Air Arrival Statistics Mr. Speaker, I am pleased to report that we ended December 2015 with positive growth overall. Total Air arrivals at end December 2015 were 250,450 this represents a one percentage point growth (+0.95) compared to 2014. Do not be misled by this number. This is the real story. There was a significant increase of almost +9% in tourist arrivals by air in December of 2015, when 28,327 vistiors came to the destination compared to 26,100 visitors December in 2014 and there has been a steady increase in tourist arrivals by air over the last 2 years. Mr. Speaker, When you consider the efforts to close the gap and record growth in overall arrivals, the efforts made were significant. The disastorous circumstances that we met when we came into office in 2014 meant we started with a -8% YTD deficit in January 2015. This means that we have moved the needle +9% between January and the end of year to achieve overall growth. The strong performance from the UK and Europe along with growth from the USA in November and December with the new Jet Blue flight has returned positive overall growth for the entire destination. Mr. Speaker, Arrivals from the UK in December 2015 were 7,733 up double digits +11 % on arrivals of 6,698 for the previous December 2014. Year to date arrivals from the UK at the end of 2015 were 77,890 up +9.4% from 71,193 the previous year 2014. 4

The UK and Europe has been our strongest performing market. Visitors from this source market tend to stay longer between 10-14 days and so contribute significantly more revenue than the North American visitor who stay for an average of 5-7 days. The combined arivals from the UK and Europe at the end of 2015 was showing 96,250, arrivals a +5.45% increase on the total European arrivals in 2014. Arrivals from the US in December 2015 were 11,434 which was +11.14% on December the previous year. Hotel Occupancy Mr. Speaker, These figures are supplied by the AHTA from their members and are showing a much improved position this year for the last 4 months of 2015 they recorded the following September 2015 which traditionally is the slowest month of the year overall occupancy was 49% up 5% points from 44.4% occupancy in September 2014 October 2015 occupancy was almost on par at 49.8% compared to 50.3% last year Nov 2015 Overall occupancy was 65.3% up +5% compared to 60.2% in Nov 2014 Dec 2015 Overall occupancy was 61.6% up +1.2% compared to 60.4% in Dec 2014 Mr. Speaker, Tourism in Antigua and Barbuda is now returning positve results in a big way as these are the best Hotel occupancy figures recorded by the Industry at the start of the season since 2007 with the trend steadily increasing.

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STATE OF THE PRODUCT Mr. Speaker, Product Development and excellence in service delivery will be emphasized over the next few months. Efforts will be centered on enhancing the visitor experience. Excellence at every service touch point will be our focus, our air and sea ports, hotels, shopping areas, employees will be targeted for further training development and exposure. Offering quality service and value for money will be hallmarks of the visitor experience. This is critical in improving the on island visitor spend, which is a key performance indicator for the industry. Mr. Speaker, We are going to embark on an island wide beautification project. Suitable trees and flora will to used to improve the islands Curb appeal and beautify key areas to include aesthetically pleasing gardens to include Royal palms, Oleanders, Bougainvillea, Foxtails. The Fort James Development project will be a key feature of the product development undertaking. Fort James has one of the best beaches and the landside concepts to include restaurants providing authentic local cuisine and a museum detailing the history of the Fort. The Fort James development project is not a dream. US $4 Million from the CIP will be used to jump start the project. This will be a Day Tourism Facility. This will be designed to empower local Antiguans and Barbudans to construct and own bars, restaurants, a water park and condominium style accommodations. The project also includes an Amphitheatre to seat 10 thousand and will be the premier tourism recreation facility on the island catering to both visitors and residents. Walking trails will also be incorporated in the green space. This project will commence shortly in conjunction with the Bamboo Beach Developers who have committed to moving 1,500 cruise passengers a day to the facility.

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Mr. Speaker, Safety Health and Security continues to be paramount in the product mix. CCTV cameras, improved street lighting and stepped up police patrols in high visitor traffic locations have been implemented, to ensure the safety of our residents and visitors. Regulations governing the standards, for hotels, tour operators transportation and all other tourism industry related business activity is drafted. Mr. Speaker, Tourism Awareness will be enhanced with the implementation of a programme called “Think Tourism” The television show aims at bringing renewed awareness to the tag line “Tourism is everybody’s Business” residents should understand their role in the industry and have an understanding of the four (4) critical sectors of the industry Accommodation, Cruise, Yachting and Community Tourism. For example we still have challenges in convincing our technicians in the Ministry of Finance of the critical importance of allocating adequate and timely resources to support the Ministry’s agenda. We also need to drive an understanding of internal and external Marketing, Promotions and PR (Public Relations) Room Stock: Mr. Speaker, We inherited a room stock product that had deteriorated to a level that prohibited our ability to grow. Jolly Beach Resort is a very important national asset for the people of Antigua & Barbuda. The resort not only provides significant employment but also creates significant opportunities for local businesses and collateral industries—in addition to generating substantial tax revenue for the Government. Our swift action to stabilize Jolly Beach, improve its operations, preserved hundreds of jobs, critical airlift and negated the collateral damage of loss of jobs, loss of revenue and the ultimate collapse of the property. We did just that Mr. Speaker! In fact our targeted marketing approach with key overseas tour operators who 7

regard Jolly Beach as a lead in price point has ably assisted in safeguarding the viability of this property. Mr. Speaker, The Government intervened to save this property and to ensure that it was kept in full economic circulation. In fact occupancy at Jolly Beach has moved from 30% to 50% in the last month and is steadily improving. Mr. Speaker, The Government’s decision to acquire non-performing tourist assets is not idle talk, where we have made interventions we have saved jobs, revenue and flights. Jolly Beach is an example where we moved the occupancy from 30% to about 90% Mr. Speaker, We are not in the business of acquiring privately owned property. We are a capitalist society and firm proponents of the free enterprise system. But these assets are our equivalent of oil to Trinidad, bauxite to Jamaica Bananas to St. Lucia and Dominica or Ganga to St Vincent. It’s not that we want to be high handed and nationalize private property, but where we have underperforming assets the Government will do whatever is necessary within the confines of the law to return these important assets to full economic circulation. Mr. Issa Nicholas the owner of The Royal Antigua was sent a letter from the Hon Prime Minister requesting the Government be provided with a firm proposal to bring this property back to economic viability. Failure to do so would cause the Government to take steps to acquire this underperforming patrimony of our people. They now have been given 2 weeks to respond. Another property that the Government is looking closely at is the defunct Blue Heron Hotel which is on beautiful Turner’s Beach and sadly has been closed for several years.

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Mr. Speaker, We also saw the opening of several new properties in 2015. BARBUDA BELLE – is a US $ 2 Million Eco-friendly investment, offering guests the opportunity to enjoy Eco-luxury on one of the greenest islands in the Caribbean. The seven-unit facility will be expanded to 15 in the next three years. TAMARIND HILLS: A stunning collection of freehold villas, townhouses and apartments for sale and rental within a five star beachfront resort also opened in 2015. They currently have 11 villas and 36 ensuite rooms. This will be expanded to 57 new one-bedroom suites. OCEAN POINT Formerly Colona Beach reopened with 70 rooms and is supporting the Eden Viaggi Weekly Charter on Alitalia. This property has become a hive of activity and with all year round service with AlItalia promises to bring significant growth to our Italian visitor arrivals New Tourism Investments: Mr. Speaker, My Government continues to aggressively pursue a strategy of new hotel investment. The new US $ 150 Million Beaches Resort by Sandals Resorts International will now be relocated on Dickenson Bay and provide up to 300 rooms, 1,000 construction jobs and 850 permanent hotel positions when completed. With the diversion from the original Long Bay location all plans are being revised to ensure this projects commences this year. The principals of the Replay Group out of Canada have confirmed plans for the Half Moon Bay Hotel and the completed the land transactions to the tune of US $20 Million to return it to full 9

operation. They also purchased 18.5 acres from the Mellon estate. They were on island as recently as two weeks ago to finalize arrangements. Mr. Speaker, The former administration was unable to structure a deal to make this project work. It was stalled for about 3 years until we delivered a creative solution, which financially engineered this project. This administration has delivered. I am pleased to report that construction will begin later in 2016. A portion of this project is to be CIP approved. Sale of the CIP real estate will begin immediately, Replay has established an international distribution to accelerate the sales of CIP and in turn accelerate the redevelopment of Half Moon Bay. Mr. Speaker, 3 projects will be spun off from the WIOC deal, as a direct result of the Government’s creativity to accrue benefits to the people of Antigua and Barbuda. A new project at Valley Church on 10 acres of the Bap Lands that the Government was forced to buy back for US $ 1 Million that the previous administration had given away. This is a joint public and private sector project where the Government will invest US $ 15 Million. The shareholder agreement will be with the Government of Antigua and Barbuda, the Government of the Venezuela and the Spadaro family of the Sonnesta group in St Maarten. This project will start this year and will involve the construction of a 150 room facility. This will provide 300 permanent jobs. Long Bay Hotel Construction on a 100 room facility will start in 4th quarter with 200 construction jobs. The 3rd project is a Business Man Hotel at Friars Hill. This is a 130 room property

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Additionally adjacent to this property will see the construction of a Business Park on 8 acres of lands between the old AUA storage facility and The Global Bank of Commerce. Antiguans and Barbudans in the Diaspora and public servants will be able to take advantage of plots at Friars Hill that will made available for housing. Mr. Speaker, Our Government is on a mission to promote empowerment and foster wealth creation among indigenous Antiguans and Barbudans. To this end a CIP approved project on 20 Acres of land will be constructed at Pensioner’s Beach. Lands will be made available to empower 16 persons who will be invited to be a part of this venture, with each owning 5% shares and the local developer owing 20%. The Land will be provided on credit at EC$3 per sq ft. Government will recoup its investment when the property developments are sold. The Government will make concessions more attractive so that there is a balance in the ownership and spin off with shared benefits for our own people. Mr. Speaker, A new US $ 100 Million project is also earmarked for Pelican Island for the construction of a 5 star boutique hotel. Maiden Island will also see the construction of luxury villas with homes similar to those constructed on Jumby Bay. Mr. Speaker, Hodges Bay Club renamed “The Resort at Hodges Bay” will be fully open in 2017. The economic impact of this USD $50 Million new 79suite resort will be significant on our local economy during construction. This new resort facility will provide upwards of 200 jobs when all phases of the development are completed.

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Elite Island Resorts will be starting an additional 63 hotel rooms at the Veranda hotel. Additionally under the CIP initiative 3 villas have been completed at Veranda Estates with an additional 4 under construction Mr. Speaker, The Morris Bay Project an MOA was signed with His Excellency Sheik Tariq Faisal Alqassemi of Dubai, for a 5 star 150 rooms luxury hotel project valued at US $120 Million. This project will include a Public National Park for residents and ground breaking for this facility has just taken place. Mr. Speaker, Pearn’s Point The project is in high gear and is 4-5 months ahead of schedule in the implementation of the basic infrastructure of electricity, water and roads to the tune of US$ 15 Million, which will see the employment of 35-40 persons. In February construction on the first family home for the “Thursbey” family commences at a cost of US $ 14 Million. Additionally the prestigious Rothschild family has purchased 5.5 acres at Pearn’s Point. Two show-houses will be started on April 1st for US $ 8 Million each. The plans for the 125 keys Setai Group project – 70 hotel rooms with the remainder being villas are now in the final stages of design and will be completed with construction starting by the end of this year. Mr. Speaker, Sun Wing Group- The Government has also signed an agreement for US $150 Million with the Sun Wing Group out of Canada to build an additional five-star hotel on adjacent property to the Royal Antiguan. The project will be built in two phases. The US $75 Million Investment in the first phase will see the construction of a “Royalton” hotel complex with 300 rooms, multiple restaurants, a casino, disco, full service spa, tennis courts and theatres. Phase two will include the US $ 50 Million construction of 200 mixed-use condominiums. Lands have already been cleared for the start of the project. 12

This joint venture between the Government of Antigua and Barbuda will see Sun Wing contributing 85.4% with the remaining 14.6% from the Government whose equity will be in the form of the lands. Sun Wing is collaborating with TUI Travel group, the world leading integrated travel company with 30 million customers. As partners in the new Dieppe Bay Project TUI flights will operate from the UK, US and Canada once the project is completed. Mr. Speaker, Paradise Found Hotel formerly K-Club. In spite of the delays and roadblocks, presented by the naysayers, the project continues. The decisive action by our administration means that the new $250 million resort is very much on track for Barbuda. The destabilizing tactics and road-block by opposing forces with no vision have prevented the people of Barbuda from reaping the benefits that should already have been received from this project. Both developers Robert DeNiro and James Packer stayed here for Christmas in a demonstration of their love for our country and their wholehearted committed to this project. Since these developers have announced their project in Barbuda, it has generated huge amount of free publicity for our destination. It has also attracted other high net-worth investors such as former New York Mayor Michael Bloomberg who recently visited Antigua and Barbuda and later had his own private seaplane join him here in exploring both our islands. Mr. Speaker, Gravenor Bay: This US $ 450 Million project which will be done in 7 phases will provide a total of 1100 jobs both in the construction and at full operations. Plans for Phase 1, which will be called “Genesis” will be submitted to the DCA within the next two weeks and ground breaking will start as soon as approvals have been received. The Genesis phase will be completed in 18 months. This phase will provide 75 full time jobs and includes a Solar Field, Helipad, 13

Reception area, Spa, along with a Gym and Wellness Center, A Feature Pool, Four 2 bedroom cottages and six 1 bedroom cottages with individual pools. These will all commence this year. The next phase of the project includes two Hotels one at 160 room and the smaller more boutique property offering 70 rooms. There will be an additional 140 villas in Phase 3. Later phases will also include a 126 berth marina, signature golf course and a polo sports field. Mr. Speaker, In keeping with the Government’s vision to make Barbuda a totally “Green” destination the Gravenor Bay project will be fully environmentally sustainable with a total reliance on solar power. Guiana Island Resorts Mr. Speaker, We have broken ground on this This US $1.2 Billion project for the Guiana Island Property with Chinese investment firm Yida, which will shortly commence. In March of this year 50 Luxury 4 bedroom Villas will be built on the mainland at Regent’s Bay. It will include a clubhouse, pool and Spa. This will generate 300 construction jobs. NONSUCH Bay (Expansion) Mr. Speaker, Nonsuch Bay will be seeing a further significant development with a US $58 Million expansion. This includes an additional 188 keys consisting of a Hotel resort and freehold Condominium units. Other amenities include a Yacht Club, Spa, Gym and wellness center, fine dining restaurants as well as Tennis and Squash Courts. Construction begins this month and will run for the next 36 months. 180 jobs will be available in the construction phase, while 140 permanent new jobs will be added when the facility opens.

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Other Non-Tourism Investments Mr. Speaker, A Caribbean Hollywood The efforts of our Government in attracting new opportunities to the country will be shortly realized in the film industry as we begin the process to make Antigua and Barbuda the Hollywood of the Caribbean. We are welcoming the leading directors, actors and filmmaking technicians of the world to Antigua; they are coming to create exciting films that capture the beauty, mystery and complexity of our country, our history, our people. This is a classic example of what the CIP was meant to do. It was designed to not just be a source of revenue, but act as a catalyst to present new opportunities to support our Government’s vision for diversifying the economy. One of the options for CIP investors is the Business Option where investors can invest in the film production business. The Government has already announced a US $ 125 Million investment with Golden Islands Filmworks to produce 5 films, which are ready to go. The first being “REBEL” featuring the early life of Bob Marley where filming will take place right here in Antigua and Barbuda! The Country is putting up 50 percent of the projected five-movie budget, with foreign sales, tax credits, and co-productions expected to cover the balance. Mr. Speaker, In addition to the benefits in high tech jobs and the creative industries the world’s celebrity spotlight will be placed firmly on our country. Anywhere that there is a film industry for example such as Cannes, there is an automatic growth in the tourism industry particularly at the high-end. The celebrity factor and the associated positive press and media coverage that it attracts will put Antigua and Barbuda firmly on the map. 15

AIRLIFT: Mr. Speaker, One of the unmatched success stories of the Ministry of Tourism, which has been the envy of our regional colleagues over the last six months, has been our ability to attract new airlift. Since the opening of the new Sir V.C. Bird international airport in September of 2015, Antigua and Barbuda has attracted a record 5 new airlines in 4 months. Our new facility that has come in for rave reviews from the industry and passengers has been a catalyst for attracting new airlines. The growth in airlift has led to an increase in visitor arrivals in 2015 and will support the expansion of the industry with the new hotel developments. Mr. Speaker, Antigua and Barbuda has a total of 156,864 seats from the UK/Europe with a total of 597 flights for 2016. Direct daily flights BA from London will continue all year round. This will be daily in the winter and 6 flights in summer. 3 of these flights will be Antigua turn around only and not shared with any other destination as happened in the past. Virgin Atlantic will operate 4 Flights with 3 of these dedicated as Antigua turn around flights only. The new configured Virgin Aircraft will have more premium upper class seats that are the ideal fit to the high end product that Antigua and Barbuda has to offer. The once weekly Thomas Cook flight from Manchester which started earlier in November 2015 will now be a scheduled flight rather than a charter so anyone can now book this service. Once Weekly Condor Flight from Frankfurt will continue during the winter season.

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Mr. Speaker, Our latest European Airline Arrival is Alitalia/Eden Viaggi who began once weekly service from Rome & Milan with 239 seats in December. The all year round flight will be shared with La Romana in the Dominican Republic. It means significant growth will now be seen from our second strongest European source market. Mr. Speaker, From the USA We now have a total of 157,702 seats from a total of 1,013 flights which are adequate in reaching the destination’s goals for growth. The options for getting here continue to increase. Direct daily flights from JFK New York on American Airlines along with direct daily flights from Miami will continue on American Airlines with a once weekly service from Charlotte North Carolina. Jet Blue commenced service to Antigua with three (3) times weekly service in November of last year. The advent of Jet Blue has been a major catalyst in reducing airfares to the destination. United Airlines: The destination will be served with up to 10 direct flights per week from Newark from United Airlines Delta: has increased service to Antigua to two flights a week from the important US gateway city of Atlanta. Mr. Speaker, From Canada we have secured a total of 33,688 seats from a total of 239 flights for 2016 Air Canada will serve the destination for this winter with a total of 3 flights from Toronto and 1 from Montreal. WestJet will now be adding a larger Aircraft of 179 seats, which represents a 15% increase in seats from our second Canadian carrier. Mr. Speaker, The growth in airlift has also been achieved in regional traffic to Antigua and Barbuda. In addition to the 30 flights a day from LIAT to and from Antigua, we now have additional 34,184 seats from 232 17

flights connecting us to the Region. Through interCaribbean Airways, PAWA Dominicana, Seaborne Airlines and Caribbean Airlines. interCarribbean Airways began twice weekly service from Santo Domingo to Antigua and Tortola in December with 30 seats each flight. PAWA Dominicana has started a weekly charter service from Santo Domingo with a DC9 with 160 seats. In fact our brother and sisters from the Dominican Republic who reside here are seeing an unprescedented availability of options to travel between both of our countries as a direct result of my Governmnet’s efforts. Seaborne Airlines began 4 times per week service to SJU Puerto Rico with 34 seats 4 times per week. Additionally discussions have started with the following airlines for additional Airlift COPA Airlines, Avianca, Emirates and Pimera Travel Group from Scandinavia. These will be vigorously pursued in 2016 which to allow us to take advantage of the anticipated growth and demand for the destination. Mr. Speaker, The destination will be attending the Routes Americas Airline Conference in Puerto Rico this month where we will be meeting over 20 airlines in our efforts to attract new airlift to the destination. St John’s Development Corporation Heritage Quay Mr. Speaker, The common areas of the Quay will be restructured to cater for the free passage of all of our visitors as well as delivery and emergency vehicles. It is our intention to improve the lighting of the overall Quay by replacing the existing lighting fixtures and equipment with a green solution such as solar. 18

Mr. Speaker, We recognized that Heritage Quay is at the forefront of our cruise tourism industry and should be a showcase of our people, culture and way of life. With this in mind SJDC has been working closely with the Ministry of Tourism to facilitate cultural and entertainment activities to enhance the visitor experience in the Quay. This has rekindled some much needed excitement as well as an authentic cultural expression and identity to the area. Vendors’ Mall Mr. Speaker The Vendors’ Mall has not been forgotten and will be redesigned to cater to our clients’ needs. This will include relocating some of the existing booths to other areas to correct the clustering of booths that result in daily conflicts with tenants. The design of the booths will be reviewed and renovated to cater to our tenants’ needs. A 50% reduction in rent has been offered to all the vendors in the quay until we are able to relocate them and effect repairs and construct brand new booths. The Antigua & Barbuda Exhibition & Cultural Centre - Perry Bay Mr. Speaker, The center will be redeveloped with premiere conference rooms to include a first class VIP room and theatre. The theatre will be detailed with backstage and proper theatre style seating. The exhibition hall will be modified to industry standard, which will include scientific acoustic treatment solutions. The Public Market Complex Mr. Speaker, The Public Market will be upgraded to standardized requirements to include the immediate repair of the roof and public washrooms. All old and dilapidated stalls and shops will be refreshed and replaced. We will strive to provide a world-class farmers market environment with the authentic Antiguan flare and character. Since the construction of this facility by the ABLP, the former “bad minded”

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administration has done absolutely nothing and allowed it to deteriorate. Heritage Hotel Mr. Speaker, The Heritage Hotel has been a beacon of how sound leadership, strategic planning, and effective management can reverse negative trends in a very short time frame. Previously the Heritage Hotel Front Office and Housekeeping staff worked an average of 32 hours per week, whereas the restaurant staff members were performing their duties on reduced work week that amounted to 6 days per month. As a result of our conscientious efforts, all staff currently work a 40-hour week and on numerous occasions the housekeeping and restaurant staff have been requested to work overtime. Mr. Speaker, The average occupancy has improved consistently from the last quarter of 2014 to present due to our continued commitment to new marketing and a revamped business plan. To this end we have sustained a whopping 35% increase in average occupancy at the Heritage Hotel as indicated below: 2012 – 37.52% percent 2013 – 37.12% percent 2014 – 47.82% percent 2015 – 76.67% percent Revenue for the hotel in 2015 kept a similar pace with the occupancy figures. This is demonstrated by our aged receivables having being dramatically reduced, while our business clients list has been magnified. Heritage Hotel’s remarkable performance over the last year has made it the most positive contributor to the overall Financial standing of SJDC.

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Cruise Tourism Mr. Speaker, Another area of my portfolio that has seen phenomenal success has been the area of cruise tourism. Let me share with you and the people of this good country some of our successes. At the end of 2014, the destination recorded 540,264 passengers from 313 cruise ship calls overall. One year later at the end of 2015 we recorded 662,848 passengers from 343 calls with a record breaking 12 inaugural calls for the season. This represented a double digit growth of +10% in total calls. Mr. Speaker, This is 122,584 more passengers than arrived the year prior. It represents a whopping +22.6% compared to 2014. My Administrations efforts have firmly placed our cruise tourism on the front burner. We are on the move! In January we saw our first visit of The Norwegian Breakaway. This was a historic moment marking the inaugural call of the largest ship ever to visit Antigua with over 3,900 passengers and almost 2000 crew members. St Johns and the entire country came alive with a buzz of activity on Wednesday January 13th with a total of 15,000 passengers and crew visiting our shores from 4 cruise ships. With Antigua being the last port of call on a 14-day cruise for the Norwegian Breakaway before the ship returned to New York, a large proportion of passengers disembarked and significantly impacted our economy during that call. Mr. Speaker, The good news in Cruise Tourism continues into 2016 which is forecasted to have 408 ship calls by the end of the year. This represents a whopping increase of +14% on last year’s call with over 700,000 cruise passengers expected by year end. We are well on our way towards breaking the million cruise passenger barrier within the next two years. 21

Mr. Speaker, The Heritage Quay waterfront development project will be divided into three phases with the 1st phase of the Heritage Pier extension slated for completion in November 2016. This modification of the pier and dredging of the turning basin is to accommodate the quantum class ships later this year. Phase 2 will have the harbor ready to accommodate the OASIS class ship for the 2017 season. This requires that the turning basin be dredged. Phase 3 will the see construction of a 3rd pier, a sea wall, the entire renovation of the heritage quay area, dredging of the main channel and the reclamation of land adjacent to Barnes funeral home and Wapping Beach. This entire project is estimated in excess of US $90 million. Mr. Speaker, The return of Cruise to Barbuda has been another notable improvement that has brought tangible gains for the sister island. In 2015 for the first time, a record 12 cruise ships called to Barbuda. This is a niche market within the cruise sector that is expected to see increased success. Mr. Speaker, Following our engagement with the FCCA Cruise officials, Tourism will continue to bring benefits to our stakeholders. In the area of training along with improvements to be made to the operational processes and the product. The goal is to improve the spend on island from both passengers and crew. We are aggressively charting a new course that will impact the national economy by widening the visitor experience ranging from niche shopping to tours and excursions particularly focused on Heritage tourism. All local stakeholders such as Taxi Drivers, Vendors, Store-owners, and Tour Operators, are fully engaged as they see the industry growing even stronger as we work together for the common good of all.

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Yachting: Mr. Speaker, The yachting sector continues to be a key pillar of our Tourism strategy, which will safeguard our status as the mecca of Caribbean yachting. Mr. Speaker, In order to safeguard Antigua Sailing Week, the Government assisted in securing sponsorship from both the Yida Group and Pearn’s Point developers to ensure last year’s event was a success. The event, which costs on average EC$1M to host had 121 yachts entered, with 1200 sailors racing and another 500 additional friends and partners representing 21 nationalities. The start of winter’s year’s Charter Yacht Meeting (i.e. the Annual Boat show in December) has been recorded as the best ever with over 113 different yachts and 135 different broker companies attended. Mr. Speaker, I am delighted to report that our administration has made considerable strides to solve the chronic water shortage that has traditionally plagued the industry. The latest improvements include a reverse osmosis plant with 400,000 gallons daily capacity. This will be completed this month and will make this problem a thing of the past. I would like to thank the Minister of APUA and his team for his foresight in commissioning this plant. Mr. Speaker, The Royal Oceanic Racing Club (RORC) 600 mile race which had record breaking times last year has already seen a record number of entries of 80 yachts registered so far for this month of February. Marketing support will be provided by the ABTA for the first time to ensure that this prestigious event remains in Antigua. To further support the yachting industry we have revamped our customs processes to accelerate clearance of spare parts and specialized equipment. The Government has also abolished the duty 23

on the importation of yachts to our country to help ensure that more yachts will be based here during the winter season. Mr. Speaker, Special concessions have been granted to the ships that transport yachts to allow them to operate from our port. This will ensure that the large yachts can be attracted back to Antigua to participate in Antigua Sailing Week. To better cater to the needs of the yachting industry the Government has allowed for the expansion of fuel services to provide the lowsulphur diesel, which is critical to the efficient operation of the luxury yachts. Mr. Speaker, The next major initiative, which will be implemented this year will be to is make an enclave within the Falmouth and English Harbour area into a duty free area which will serve to extend the yachting season into the summer months for increased business activity. The Government has also abolished the duty on the importation of yachts to our country to help ensure that more yachts will be based here during the winter season. Mr. Speaker, I am delighted to report that the crowning glory in our efforts to cement our place as the Yachting Mecca of Caribbean will be realized in 2016. The National Parks Authority is working towards the achievement of “World Heritage Site” status by Nelson’s Dockyard and surrounding environs. This will be a major accomplishment in attracting international funding and will be a major PR boost for the destination. Sustainable Tourism: Mr. Speaker, We continue to build our Tourism in a sustainable manner. We created a sustainable working acting plan called a (Self Audit Book), giving directives to hoteliers and other Tourism Partners in sustainable practices. Completed the Historical mapping of all of our 24

historical sites to include forts and churches. The Community training is underway so that communities can become economically sound and become more involved in Tourism. We also conducted Green Tourism training for small properties, conservation of energy and water. The same training is soon going to be extended to our tour operators in the coming months. (ABHTI) Antigua and Barbuda Hospitality and Training Institute Mr. Speaker, The transformation of the ABHTI into a first class institution of learning continues with significant plans to improve the organisational and operational capacity of the Institute. I would like to take this opportunity to pay tribute to Ms. Shirlene Nibbs who has made quantum steps to return this institution to a center of excellence. The process has started with the re-structuring of the faculty to be hospitality centered, with the hiring of Division Tutors for Food and Beverage and Rooms Division. We have also created a professional and relevant learning environment for the students by adding 3 new degree programmes in tourism management and 2 certificates programmes in housekeeping management and reception and sales. Mr. Speaker, The Institute was designated by the OECS Commission's Network of Excellence in Tourism and Hospitality Training and Education as the centre for specialization in Luxury Accommodation Management and Service. This refers to highly specialised training and development in fine-dining, luxury homes, yachts and villas management. In order to improve the human capacity of the ABHTI staff the Certified Hospitality Educators (CHE) programme has been purchased which allowed Antigua and Barbuda’s certification of the majority of the faculty members. Educators from colleges in St. Kitts 25

and St. Martin also flew in to attend the certification sessions. CHE is the only professional development opportunity designed for hospitality educators around the world. Mr. Speaker, The ABHTI has embarked on a mission to forge great relationships with our various Customers and Stakeholders. They have reestablished relations with the American Hotel and Lodging Educational Institute (AHLEI); ABHTI's re-licensing as a Global Academic Partner is also being finalized after the loss of this relationship for several years. Mr. Speaker, Meaningful partnerships have been forged with various civic organisations and causes such as the St. John’s Hospice and the Rotary Club. MARKETING: Web site: Mr. Speaker, The Government of Antigua and Barbuda regained ownership of the Ministry’s Website www.visitAntiguaBarbuda.com on April 17, 2015 after it had been discovered and revealed by a Consultant who this Government hired, that a Mr. Oliver Turnbull of the United Kingdom was the owner of the domain name. Mr. Turnbull had been paid in excess of eight hundred and forty thousand Pounds Sterling (£840,000) equivalent to three point two million EC dollars ($3,248,100) by the former UPP Administration – under John Maginley, the then Minister of Tourism, to develop the website for the Ministry of Tourism. Mr. Speaker, Although the UPP Administration had paid Mr. Turnbull more than three million dollars to develop a website for Tourism, the team of four persons, which grew to six, who were hired in the Ministry at the time to upkeep the website, had to e-mail Mr. Turnbull in London 26

in order to make an update to the website. Most of the updates requested of Mr. Turnbull never materialized. Thankfully, the Government regained ownership and therefore control of the domain name almost nine months ago. The cost of the ownership transfer, back to the Government of Antigua and Barbuda, was US eight dollars and seventeen cents (US$8.17) or EC twenty two dollars and six cents (EC$22.06) Mr. Speaker, On July 1st 2015, two and a half months after regaining ownership of the domain name, the Government initiated the redevelopment of the website. The team of six persons who the former UPP Administration did not see fit to upkeep the website, successfully deployed the brand new Visit Antigua Barbuda dot COM website on October 21, 2015 and now Antiguans and Barbudans possess full and absolute control of our premiere destination marketing website. Mr. Speaker, For the first time, the website features a section for industry-related content such as News Clippings of the destination and other pertinent destination information. Mr. Speaker, For some time since the implementation of the new website, the team had been in discussions with the Antigua Hotels and Tourist Association (AHTA) to explore additional features that could be made available on the website and on January 15, 2016, every participating hotel, now has a “Book Now” button on the Visit Antigua Barbuda website, allowing an interested visitor to convert that interest into a firm hotel reservation. Mr. Speaker, The Platform has integrated the website with social media avenues like Facebook, Twitter, and Instagram. These are very important tools, which have high levels of activity on a daily basis. Content 27

from the website is marketed through these short-message social media avenues with complementing photographs. Mr. Speaker, Over the last 30 days we have observed an increase in Facebook Page Likes (followers) by 1,469 bringing the total number of followers to 113,838. ABTA’s Facebook Page presently enjoys the number 1 spot in terms of Engagement throughout the region This Week (at 17,700 compared to Bahamas’ 6,800; Bermuda’s 10,000; Barbados’ 5,500; St. Maarten’s 2,200; Cayman Islands’ 6,300; St. Kitts’ 1,300; St. Lucia’s 2,000; Grenada’s 95). Mr. Speaker, The Platform will also focus on retaining the services of an individual or individuals or firm, in order to translate the content of the website into German and Italian. Incidentally these were services we paid for under the previous UPP administration but were never delivered Mr. Speaker, The progress we have made with the website in one short year has now made visitAntiguaBarbuda.com a key component of our marketing strategy, wholly managed by professional Antiguans and Barbudans and promoting our destination in a most efficient manner. Marketing Campaigns Mr. Speaker, The introduction of the 2% ABST Marketing fund, which was intended for destination marketing, has yielded strong performance in our overseas market particularly the UK and Europe, which recorded double digit growth last year. Mr. Speaker, In an effort to further stimulate the business this Administration committed a further US $ 1.75 Million for North America, US$500,000

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for UK/Europe and US $250,000 in the Caribbean for Marketing activities. This was allocated from the CIP funds. We are now seeing a turnaround and have embarked upon an aggressive marketing campaign in our major source markets, using all marketing channels to further create demand for the destination. For example some of the exciting new initiatives include: On-line Travel Agent Campaigns: Expedia and Trip Advisor etc. have all been re-engaged for promoting the destination. At the most recent Caribbean Market place in Nassau Trip Advisor reported showing second year of strong growth seen from Antigua and Barbuda, as one of the region’s top performing destinations. Mr. Speaker, The real success story in the online travel agent (OTA) marketing program has been with Expedia they reported that Antigua and Barbuda is one of their top performing destination in the entire region. Expedia has 94 properties signed up in Antigua and Barbuda. This means that almost every place of accommodation for visitors can be booked via their website. Revenues grew by 46% with roomnights sold to the destination increasing by a whopping +37%. They have sold a record number of room nights in 2015 and are setting a target of 50,000 room nights this year. Our business with Expedia from USA grew +38%, Canada +11% and the UK an amazing +51% all as a result of the marketing program that this destination has implemented with them. A total of 26,477 passengers booked the destination via Expedia in 2015, which is a +42% growth in passengers over the previous year.

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Mr. Speaker, Antigua & Barbuda continues to implement Specific Tour Operator Campaigns: We have allocated significant amounts for both winter and upcoming summer marketing campaigns with The Apple Leisure Group (ALG), BA Holidays, Virgin Holidays, WestJet Vacations, and Air Canada Vacations. Apple Leisure Group is one of the largest US based tour operators and now includes Travel Impressions, Apple Vacations and Cheap Caribbean. They are pacing +6% in room nights for the destination and will be implementing a new marketing plan for 2016. Virgin Holidays ended 2015 with a +10% increase in business to Antigua and January is currently trading +16% on last year’s bookings. We are also exploring and negotiating the option of a 5th Virgin flight, which will originate from Manchester. BA Holidays ended 2015 +16.5% after allocating 7% more seats to the destination by un-tagging 3 flights to the DR, which are now Antigua rotations only. Their First qtr. shows strong growth with a +17% increase in forward booking room nights. Hayes and Jarvis Delivered growth in room nights to the destination at a phenomenal +71% increase. Kuoni They have 11 hotels in their program and ended 2015 +25% in revenue, with forward booking also up +25% in 2016. We are now their top performing Caribbean destination generating more business than Barbados who has 3 times the number of hotel rooms compared to Antigua and Barbuda. Mr. Speaker, I am pleased to report that we are included among their top 4 performing destinations globally. This is something to celebrate!

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Mr. Speaker, Air Canada Vacations As a result of a concerted marketing effort we saw +2% increase in passenger numbers over 2014, in spite of the weak Canadian dollar, which is having a downward effect on travel by Canadians globally. The entire Canadian Market is being dragged down by the weak Canadian dollar, which makes us more expensive. WestJet In spite of challenges with the exchange rate of the Canadian dollar they finished last year strong and are pacing ahead of 2015 by +24% in business. Mr. Speaker, These results did not happen by chance. It is a direct result of my hard working team, with the strategic planning, and the efforts made in marketing this destination. I would like to commend and thank Mr. Rohan Hector, Mr. Colin James, Mr. St Clair Soleyn and our Permanent Secretary Mrs. Paula Frederick Hunte, who in the area of Tourism have given sterling contribution to the Ministry and the nation. Mr. Speaker, Going forward for 2016 The Antigua and Barbuda Tourism Authority will continue the focus on growing our business with the marketing strategies that have worked in 2015 and deploying new ones to take us to the next level. We have identified 5 major goals: 1. 2. 3. 4.

Grow overall Air Arrivals by 7% over 2015 Grow Cruise ship Arrivals by 15% over 2015 Attract at least 3 new airlines to Antigua and Barbuda Obtain major TV and PR exposure for the Destination in North America and Europe

5. Explore Dual Destination Marketing Initiative with Cuba This last goal Mr. Speaker is one that should not be overlooked. As the US Embargo is quickly been stripped away, we see an

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unprecedented interest and surge in airlines and hotels seeking to commence operations in Cuba. Antigua and Barbuda as one of the first English speaking countries with a long-standing relationship with Cuba dating back to the 1980’s must leverage on this relationship. It is to the benefit of both of our countries that we work closely with the Cuban tourism officials to ensure that dual destination marketing programs are in place for those new visitors to Cuba who would like to have the experience of a dual Spanish and English vacation experience. This means offering a product that would involve a stay in Cuba followed by a stay in Antigua and Barbuda. Mr. Speaker, The remarkable growth numbers we are seeing in all sectors of our Tourism product speak for themselves. The growth is there for all to see that the policies and plans that my administrations have implemented for Tourism are working and delivering the results for the people of Antigua and Barbuda. Investment Mr. Speaker, We have evaluated the functions of The Antigua and Barbuda Investment Authority (ABIA) and concluded that it continues to promote opportunities for investment, advocates for improvement in the investment climate and facilitates ease of doing business in the Country. The Government of Antigua and Barbuda had previously signaled its intent to disband the ABIA as currently structured citing costs among other considerations. However, there is an understanding that a restructured ABIA is critical for the delivery of an investment promotion and delivery service in keeping with the Government’s development and investment agenda. As such, there is a clear need for the continuation and expansion of these services in a more cost effective structure and in keeping with global best practices. 32

Mr. Speaker, The restructured entity will be poised to deliver strategic added value to the operations of Central Government. The entity will provide strategic leadership, by functioning as a catalyst and confidence builder in the islands’ prospects as an investment power house through engagements with domestic, regional and international institutions. Mr. Speaker, The existing legal structure requires a Board comprising of ten (10) members, including five (5) representatives from Ministries and the other five (5) representing NGO’s and the private sector. To be more cost efficient and effective, it is proposed that the Board managing the restructured ABIA be reduced to five (5) members. Budgetary Allocation Mr. Speaker, In order to continue the task of taking tourism to the next level in 2016, the Ministry has been allocated ECD$27,370,262.00 of which salaries and wages accounts for ECD$12,681,897.00. Leaving us ECD$ 14,688,365.00 to cover operating expenses and Marketing. Our original request was for EC $ 23 Million. The Hon Prime Minister and the Cabinet of this country approved an additional EC $ 6 Million for Marketing which was given as a commitment by the Prime Minister and I quote as “The Government’s commitment to redouble its efforts to improve the performance of this most critical sector” This increase will supplement the 2% marketing fund thereby generating approximately EC $ 20 Million for the Antigua and Barbuda Tourism Authority to market the destination” Mr. Prime Minister I thank you and the Cabinet for your intervention but I have only last evening discovered to my dismay that this allocation was not included by the Budget Director. I am appealing to your good office to ensure that senior technicians support your vision and provide the necessary resources for this vital industry. 33

In addition to these funds, our administration has already committed a further US $ 1 Million from the CIP for marketing to be shared equally between North American and the UK/Europe to ensure that the momentum that we have started in 2015 continues. ENERGY Mr. Speaker, My Government is committed to a far-reaching program of development and reform of the country’s energy sector. To this end, we have set a target of 20 20 20, that is to achieve a 20% reduction in the use of fossil fuel by the year 2020, and we are well on our way to achieving that goal During 2015 my Ministry has pursued a multi-pronged approach to energy aimed at fulfilling its election mandate to modernize and transform the energy sector so as to provide more affordable energy to consumers. Mr. Speaker, The Ministry of Energy is committed to seeing Antigua and Barbuda become a leader in the application of renewable energy in the eastern Caribbean. This forms a part of our thrust towards establishing Antigua and Barbuda as a regional economic powerhouse. The past 18 months a number of successful efforts have been achieved to begin the transformation of the energy sector, a sector, which had been largely neglected for the past years. 10MW SOLAR POWER PROJECT Mr. Speaker, A substantial focus of the work of the Energy section within the Ministry this year has been the government’s partnering with APUA and the international energy company, PV Energy, for the installation of 10MW of solar photovoltaic energy to be interconnected to the grid and to be placed at various government facilities and installations throughout Antigua and Barbuda. 34

Mr. Speaker, The first phase of the project is now completed with the successful commissioning of a 3MW facility at the southern boundary of the VC Bird International Airport. The 3MW facility is located on approximately 9 acres of land and includes fully computerized operational and monitoring facilities integrated into the APUA system control network. The full 10 MW project will involve a combination of grid scale and distributed solar installations. The initial phase at the VC Bird Airport is being followed by 2MW distributed across the island on various government buildings and facilities (pilot facilities are already in place at the Clare Hall Secondary School and the Antigua Grammar School), 4MW at a location near to Bethesda, and up to 1MW in Barbuda. The total cost of the 10MW project is US $ 20.5 Million. Mr. Speaker, It is estimated that the 10MW of solar power to be installed will be able to offset up to approximately 16,500,000 kWh of electricity annually, resulting in substantial savings in fuel costs and foreign exchange. The project will also include storage capacity to ensure that the stability of the grid is maintained, that peak power from storage is available, and that APUA’s commitment to providing reliable power to its consumers is maintained. Very importantly the Ministry of Energy is working to ensure that there is an effective transfer of skills and expertise that will allow Antigua and Barbuda nationals to be fully involved in all aspects of the solar energy project. This involves private technicians and installers as well as personnel from APUA. RENEWABLE ENERGY ACT At the policy level, a significant development during 2015 was the enactment of the Renewable Energy Act, a landmark piece of legislation aimed at transforming the regulatory landscape for energy in Antigua and Barbuda. 35

Mr. Speaker, The objective of the Renewable Energy Act is to promote renewable energy development in Antigua and Barbuda by distinguishing renewable forms of energy from traditional fossil fuel sources and providing producers of renewable energy with the legal framework for producing, consuming and distributing electrical energy from renewables while connected to the public grid. During 2016 the Ministry expects to further its work in promoting renewable energy development in Antigua and Barbuda utilizing the instruments provided for in the Act. There is already an estimated 1MW of distributed renewable energy throughout Antigua and Barbuda and the Act is expected to facilitate the further expansion of renewables throughout the nation. PDV CARIBE ANTIGUA AND BARBUDA LIMITED (PDVCAB) PEOPLE’S BENEFIT PROGRAM (PBP) Mr. Speaker, This programme is for unemployed, underemployed and disabled citizens of Antigua and Barbuda with an effort to improve their quality of life. At the end of the period under review, there were 2,411 beneficiaries on this programme; 46 of which were in Barbuda. An average of 26 new applicants were approved to this programme each month and each beneficiary received a benefit of $215 per month to purchase groceries and other personal items from four authorized vendors in Antigua and two on Barbuda. PROGRAMS Mr. Speaker, Our Government continues to wholeheartedly support the people of this nation through the following programs. SENIOR CITIZENS UTILITY SUBSIDY PROGRAM, BARBUDA LPG SUBSIDY NATIONAL TENNIS CENTRE LED LIGHT BULB PROJECT 36

Mr. Speaker, It is important that we place on our record our sincere appreciation of this important assistance provided to us through Petrocaribe. The experience of Caribbean countries during the height of the global financial meltdown has meant that the support provided to these fragile micro-States by Petrocaribe has allowed them vital economic respite and innovative financing to support their struggling economies. Petrocaribe remains a model for international cooperation among nations, and is one which recognizes the extreme vulnerabilities of small island States such as ours to a combination of natural and man-made forces. My Government recognizes and appreciates that even with the drastic drop in oil prices to below $30 a barrel causing considerable reduction to the petroleum revenues of Venezuela, the Government of the Bolivian Republic of Venezuela has remained committed to the goals of the Petro Caribe initiative. WIOC Key WIOC Strategic Plans – 2016 Mr Speaker, US $ 18.5 Million will be spend on tank expansion and retrofitting to be completed at the end of 2016 resulting in an increase in capacity by 500,000 barrels generating an estimated additional US $ 2.4 Million annually in storage revenue by 2017. In turn this will provide jobs for at least 75 persons with all the ancillary benefits that their employment will bring, including increased contributions to the Social Security and Medical Benefits Schemes and the beneficial effects of their spending on the business sector. In addition spend of US $ 6 Million on Conventional Buoy Mooring (CBM) which is complementary to the tank expansion program facilitating timely loading and discharge of product. There will be investment in a new marine launch of $910,000. 37

Investment in safety and environmental protection improvement and replacement of older bottles with new bottles. The latter investment will facilitate the further growth off the LPG business. Investments for 2017 Mr. Speaker, By the year 2017 WIOC will invest in a bunker barge, projected expenditure of $2.5 Million to facilitate the expansion into the bunker business. We will also invest $1.1Million in the LPG storage acquiring 6, 30,000 gallon LPG tanks to increase the LPG storage resulting in greater product security and savings on freight cost. $3 Million will be invested in safety and environmental improvement equipment, lab facilities and general plant upgrade. $800,000 will be invested to begin the process of upgrading the retail network. It is not just about constructing storage tanks; it is about creating employment; it is about strengthening the economy; it is about building the capacity to deliver the betterment that our people want! Synopsis of WIOC Acquisition Mr. Speaker, I want to recognize and praise the person who gave the leadership, the vision and the creativity to putting the nation of Antigua and Barbuda in the beneficial position it enjoys today with the West Indies Oil Company and the gains it brings to our economy. The credit belongs singularly to the Honourable Gaston Browne, Prime Minister of Antigua and Barbuda. In April 2015 The GOAB acquired 75% of the shares owned by NPL becoming 100% shareholder. In June 2015 Fancy Bridge a Hong Kong based company acquired 24% shares of the company from The GOAB. In October 2015 PDVSA acquired 25% of the shares from the GOAB. 38

The new investors have embarked on an ambitious plan by injecting capital into the business to expand its core storage facility thereby transforming its range of business to include bunkering and supply and trading as well an upgrade of the retail service stations. CONCLUSION Mr. Speaker, This year is the year of action when we fulfill the hopes, the dreams, the aspirations of our people. Mr. Speaker like a phoenix we rise! Rising from the ashes of the UPP Government destruction. Mr. Speaker in 2016 we rise. Rising from the corruption, incompetence, failed policies, negative growth, bankruptcy and excuses inflicted by the UPP Government on this nation. Mr. Speaker, Our Prime Minister and Minister of Finance the Hon. Gaston Browne has led the way by example, with the Ministry of Finance and his Cabinet ensuring that this nation was saved from total collapse of our country. In summary Mr. Speaker the highlights of our fiscal and financial performance in 2015 include the following: (1) Record earnings from the CIP Programme of approximately US $ 200 Million dollars – by any measure this was an exceptional achievement which all of our people applaud. (2) We fixed ABI Bank saving over half billion dollars of our people’s deposits, paid all the workers all of their benefits. In saving the ABI Bank Mr. Speaker we also saved our national and regional banking system and avoided the financial meltdown that threatened us for over four (4) years. Mr. Speaker ABI Bank like so many other things failed under the UPP Government they could not fix it. The Antigua Barbuda Labour Party Government led by the Hon. Gaston Browne fixed it. 39

(3) Mr. Speaker the WIOC deal we concluded in 2015, was one with sheer ingenuity. Without investing a single dollar we now own 120 acres of prime land and 51 percent of a multi-million dollar corporation. The Government bought WIOC for less than half the price the UPP had agreed to pay and proceeded to sell 49 percent share of the company to two (2) strategic investors. Today we are expanding its operations into a terminal facility capable of generating over 10 million dollars a year profit into our treasury. An additional 120 more jobs will be created. The Government on behalf of the people now controls one of the commanding heights of the economy.

(4) Mr. Speaker in 2015 the sad and wasteful, costly saga of Half Moon Bay is closed. The Replay Resorts has bought the lands, and the owners of Half Moon Bay will start to receive a substantial portion of the court ordered payment. Mr. Speaker the Government also paid the workers, after all these years, sadly some died waiting. My Government made right that wrong, we dared to care and put our people first. UPP government as always made many promises, the Antigua Barbuda Labour Party government paid. Out of despair and frustration, incompetence and waste The Half Moon bay Hotel will rise. Mr. Speaker, Fiscally we turned around the ship of State. From the depths of bankruptcy we rise! The fiscal performance of central Government is projected to improve nearly 1,600 percent from a deficit of $6.1 million in 2014 to a surplus of $91 million or 2.8 percent of GDP in 2015. Mr. Speaker we owed nearly 100 million in arrears to key creditors when we took office. We owed IMF, the Chinese Government, CDB, 40

World Bank, Kuwaiti Fund. In addition we owed the nurses, the workers, the local banks and suppliers, WIOC, APC, the Water Company, Sembcorp & Erickson, and so many others, arrears on arrears. We were about to be left with no light no water, no gas, no hospital. Black listed on world financial markets as a pariah nation. Mr. Speaker, We corrected most of these, we paid the arrears to all our strategic creditors, and in return we negotiated a US $ 97 Million port project from the Chinese, US $ 60 Million from CDB to support our financial sector reform, we got new terms of 12 years at 0% interest from the Kuwait Fund and an agreement to finance the sewage system. Mr. Speaker, in area of finance the Prime Minister has strengthened accountability and transparency in Government insisting on timely audited financial statements from all statutory bodies, tabling of supplemental expenditure for the first time in ten (10) years, insisted that procurement rules be followed with, the Tenders Board used to select best value for money offers, and the internal auditing function has been strengthened to review the hundreds of millions of dollars spent by Public Works Department (PWD) on roads we cannot find and multi-million dollar contracts from which we earned little or no benefits. Mr. Speaker, In the area of crime and security you will recall the Hon Prime Minister laid out a detailed policy measures in the 2015 Budget. Mr. Speaker all of us can rise and celebrate the outstanding success in bringing crime under control, inspiring our police officers, soldiers and anti-drug agencies, motivating them, providing new leadership, new tools, new techniques, rebuilding the bonds of trust and shared burden for controlling crime with the people. I would like to compliment the Hon Attorney General and the Acting Commissioner of Police Mr. Wendel Robinson and the heads of the other law enforcement agencies who have been doing a wonderful job in ensuring our security. 41

Mr. Speaker, Crime is down, the lowest in decades; rapes, murders are way way down our people can go on beaches, walk home in the nights, Antigua and Barbuda is a safe place one of the safest in the world. Mr. Speaker, In the health sector both medical and public health we made significant progress. Mount St. John Medical Center was in a poor state, and the Government moved quickly and purchased $10 Million of sophisticated diagnostic equipment to replace the broken down, inoperable equipment left by the UPP Government. Reagents and other critical inputs for laboratory testing were also bought and now are available on a sustained basis. The old expensive, ineffective management contract was terminated, and new management brought in, new controls, new quality of care, increased efficiency and outcome of medical procedures took place. The suppliers and service providers, who were owed for years, were brought up to date, and the threat of the hospital not having medicine and basic supplies averted. I commend my colleague the Hon Member for St Mary’s North on the job that he has been doing to revitalize the health services of this country. Mr. Speaker, In public health we engaged in cleaning up a dirty country. We put hundreds of our workers back to work, making Antigua and Barbuda shine once again. All of us should give credit to this Government for creating an environment that is once more pristine, attractive, a boost to our Tourism, restoring community pride and national dignity. Our beaches were under threat. Again the Ministry of Health rose to the challenge and through the Environment Division they successfully kept our beaches open, available for recreation by both nationals and Tourists alike.

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Mr. Speaker, In the area of Public Utilities we inherited a disaster. Bills bills everywhere! We owed everybody, tens of millions in arrears, and suppliers were about to leave us without water, light and gas. While the UPP Government wasted over $50 Million on a Head Office, public utilities degenerated into a bankrupt fossilised dinosaur. Line loss for electrical power and water were at a record high, audited statements were not presented for ten (10) years; to cover up huge losses and divergence of funds, a “residual arrears” accounting gymnastics were used. Government use of utility services was used as a residual to plug the gaping hole of incompetence, mismanagement, and cash pauperization of the APUA Corporation. Then came Minister Yearwood to the rescue! Mr. Speaker, We stopped the flow of waste and abuse; we paid all current bills to suppliers, increase water output, ordered new plants and parts. In 2016 we will benefit from the fruits of these investments. Antigua and Barbuda will have a 100% desalination water supply capacity with solar energy powering these plants. Mr. Speaker, In keeping with our policy of making Antigua and Barbuda the first small non-oil producing state, total energy independent, we took our first step on this ten year journey in 2015. Mr. Speaker we installed the first 3 mw of solar power to provide energy to the airport. 7 mw of power will be added this year to many public building, one of several exciting renewable projects we will be implementing over the next several years. Mr. Speaker, If electricity and water were left in a state of disarray, telephone and internet were left in ruins; the neglect was corrupt, criminal and full of self-hate for ourselves as a people.

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Mr. Speaker, For ten (10) years disaster ruled. While all countries charged telecom companies for use of their spectrum with Jamaica receiving, over US $ 55 Million for use of just two (2) blocks of spectrum, last year from two of the same companies operating in Antigua, we gave ours away for free! Yes Mr. Speaker for free. It gets worse the strategic and financially lucrative blocks of the spectrum, fiercely competed for by all telephone companies, the UPP Government refused to give their own company APUA, even a small piece. Instead these were given to the other telephone companies, putting APUA at a disadvantage in terms of cost of operation, quality of operation, and benefiting from economies of scale, and being competitive in the lucrative roaming and wireless market for the millions of tourists who visit our shores. Mr. Speaker, While some rightly argue for reparation, as a people we continue to transfer wealth freely, without coercion, dispossessing ourselves without a whip on our backs or a gun to our head. The law made us equal, sadly our minds still need emancipation. I now realize why I keep hearing Bob Marley singing in my head “we are so ignorant every time they can reach us. Through political strategy they keep us hungry and when we want to get some food, our brother got to be our enemy. Ambush in the night.” Mr. Speaker, It is most unfortunate that some in our country have very short and convenient memories. It was only three years ago that in the Throne Speech, the following was said and I quote: “Our world is also being challenged in countless ways: peace and security are fragile in many countries, democracy is being challenged and disasters induced by Climate Change are becoming more rampant. This changing world calls for us all to work together in the interest of our nation and its people. The relationship between citizens and residents must be one that unifies in the hope of combating our many challenges. We must therefore remain focused and stay the course set forward by our Government.” End of quote. 44

Mr. Speaker, One would never believe, judging from the events of last week, and especially the misinformation levelled against the ABLP - ably led by the Honourable Prime Minister Gaston Browne - that this is the same Antigua and Barbuda for which we have all been challenged to work together, in the interest of all citizens and residents. Mr. Speaker, Over the last few weeks, many vicious things have been said by the purveyors of bad news who preach gloom and doom. Not only have they been disrespectful of the elected, but they have well perfected the art of using innuendo and nasty invectives to put snares in the paths of those fighting for the recovery and progress of this nation. Mr. Speaker, Character assassination and lies on top of lies stalled Antigua and Barbuda’s development in those dark days under the UPP. I know, I have been a victim of that type of malice for their political gain. Yet, I am comforted that God saved his people in Antigua and Barbuda on June 12, 2014. I am moved to share with all of us, the words of the Psalmist King David. Mr. Speaker, I know that in this Honourable House Almighty God abounds; and there can be some good from the people of Antigua and Barbuda, knowing for sure that in the first time in a decade, their public servants and representatives have worked steadfastly in their interest. Psalm 1 reading from verse 3 to 6 says: “And he shall be like a tree planted by the rivers of water, that bringeth forth his fruit in his season; his leaf also shall not wither; and whatsoever he doeth shall prosper. The ungodly are not so: but are like the chaff, which the wind driveth away. Therefore, the ungodly shall not stand in the judgment, nor sinners in the congregation of the righteous. For the LORD knoweth the way of the righteous: but the way of the ungodly shall perish.” 45

Mr. Speaker, I do not have to worry. The Prime Minister and his family do not have to worry. The ABLP Cabinet does not have to fret and wonder if their labour shall be in vain. God is Good! Even my Honourable friend from All Saints East and St. Luke need not fear the ungodly. Some have already been driven away from this House. What I will say is promises made, promises kept. We have brought on stream several major investments that will rebuild a stronger, safer, and prosperous Antigua and Barbuda. Tourism, the lifeline in this country, continues to grow in leaps with the attention we are paying to our rooms, our product, and our branding of Antigua and Barbuda as the preferred destination. The jobs will come when many of the construction and other significant projects start. Under the ABLP this nation will reap and it will rise. It will become the economic powerhouse in the region. Mr. Speaker, Unlike the UPP, we refuse to arouse the fears of people and cause them to be divided when there is work to be done in rebuilding the economy and society. We cannot and will not use and abuse the media. We will not use the guise of a Movement to spread seeds of enmity between brothers and sisters, when we are asking men and women to come to Antigua and Barbuda to tie the knot. We cannot practice the politics of distraction and deception as an alternative policy arena. We will never expect that people would grow from feeding on the seeds of malice and wrong doing. Mr. Speaker, Though I walk through the valley of death, I shall fear no evil, for God is with me. The people of St. Peter are with me, and I with them. The ABLP will continue to strive for you the people of Antigua and Barbuda. We are building an all-inclusive society where we all prosper; we all share in the spoils of victory. All I ask, and I ask those who are on the outside peeping in, though mischief be on their minds, say ‘Lord, if there is any good that I can do, let me do it now, for I may never pass this way again’. 46

Mr. Speaker, I am truly honoured to have made a possible impact on the life of this nation over the last 18 months. May God continue to bless us as a nation, and take us to the Promised Land. One day coming, we all shall sing, promises made, promises kept. Let us endeavor in unity, to the rebuilding of a stronger, safer and prosperous Antigua and Barbuda. I am obliged to you. Mr. Speaker, Members of this Honourable House, Citizens and Residents of Antigua and Barbuda in general and my beloved constituents of St Peter in particular… please accept my very best wishes for a bright and prosperous 2016 and beyond. Thank you, Mr. Speaker.

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