Date: January 25, 2005
Contact: Sandra Brunet
Phone: 340-774-2991
LIEUTENANT GOVERNOR RICHARDS ANNOUNCES SIGNING OF SIX NEW EDC APPLICANTS
DURING THE MONTH OF JANUARY
Lieutenant Governor Vargrave Richards, in his capacity as Acting Governor
recently signed six new EDC contracts for the establishment of various
EDC businesses in the Territory.
Lieutenant Governor Richards says that: “Despite the recent challenges
to the EDC program, applications are still in the pipeline” and
that “the recent signing of six new companies during the month
of January, 2005 is evidence that the EDC Program and the incentives
offered are indeed attractive to investors who see doing business in
the Territory as viable and beneficial.”
“These recent entries include business from the manufacturing
of airlift system components to management, investment and marketing
for clients located in Europe and Asia and in the technology arena.
Particularly worth mentioning is the establishment of an eco-tourism
hotel/guesthouse in Concordia on St. Croix,” Lieutenant Governor
Richards highlighted.
Lieutenant Governor Richards continued: “I think that it is important
to note that even as companies are leaving, others are in the approval
stage by the EDC Program and yet others are inquiring daily, evidenced
by the recent six new companies.”
“Moreover, as the EDC Program moves to strengthen the program
by tightening existing rules, I think we can expect that some companies
may choose to exit because they feel constricted by the new rules and
regulations. The new regulations of the EDC Program, while effective
immediately will have more of an impact on new applicants,” Lieutenant
Governor Richards stated.
The EDC Program overall has had a tremendous impact on the financial
health of the Territory, Lieutenant Governor Richards stated, and “while
we bemoan the loss of jobs and other revenues these exiting companies
will take with them, we expect the program will remain viable and attractive
as we continue to solicit interested investors. We have a host of incentives
that many companies feel they can benefit from, coupled with a skilled
labor pool and a breathtaking environment. I am confident that the program
will thrive and that it will have even greater impact throughout the
community.”
A preliminary PricewaterhouseCoopers report commissioned by Washington
Counsel Winston and Strawn to demonstrate to Treasury the overall need
and impact of the program on the Territory’s revenues shows that
EDC companies have been a Godsend to our economy. The GVI continues
to do everything in its power to preserve the integrity of the Program
and to working amicably with all companies remaining, Lieutenant Governor
Richards concluded.
