A significant political controversy has emerged in Barbados regarding the Economic Diversification and Growth Fund Bill, pitting legal experts against government officials in a heated debate over fiscal management and economic development.
Former senator and prominent attorney Tricia Watson has launched scathing criticism against the proposed legislation, characterizing it as fundamentally flawed and inadequate for managing public resources. Watson specifically condemned the bill’s vague terminology, particularly the undefined parameters of what constitutes ‘real and substantial economic presence’ and ‘real and substantial economic activity’ for qualifying companies. She emphasized that the legislation’s lack of precise definitions creates substantial loopholes that could enable misuse of public funds.
The controversial bill, which underwent parliamentary debate last week, proposes allocating $225 million from the Consolidated Fund over a three-year period, with annual disbursements of $75 million. Watson highlighted multiple deficiencies in the proposed framework, including insufficient oversight mechanisms, absence of financial disclosure requirements for applicant companies, and questionable provisions granting ministers authority to enter into funding agreements without standard contractual safeguards.
In a robust defense of the legislation, Minister of People Empowerment and Elder Affairs Kirk Humphrey presented the bill as essential for Barbados’ economic future. Humphrey outlined specific eligibility criteria, noting that companies must commit to creating at least 100 sustainable jobs for Barbadians maintained for a minimum of seven years. The Minister emphasized that funding would be contingent on measurable outcomes, including foreign exchange generation, tax compliance, and long-term operational commitment to Barbados.
Humphrey addressed concerns about ministerial authority by explaining that decisions would be guided by a multi-agency committee comprising key economic officials, including the Director of Finance and Economic Affairs, the Central Bank Governor, and CEOs of Invest Barbados and Export Barbados. He characterized the $225 million allocation as a targeted, time-bound investment designed to strengthen economic resilience rather than an open-ended commitment.
The debate has raised fundamental questions about balancing economic development needs with transparent governance practices, with both sides appealing to public interest while offering contrasting visions of responsible fiscal management.