Minister of Tourism and Economic Development, Victor Banks, told reporters on Tuesday this week that the Anguilla Government was doing all it could to ensure that the Flag Luxury Project, which remains closed since the beginning of the latter half of last year, would not become “a white elephant” on the island.

L-R: Chief Minister Osbourne Fleming, Hon. Victor Banks and Hon. Evans Rogers

In making the statement, he joined Chief Minister, Osbourne Fleming, who has repeatedly stated, at his weekly press conferences, that Government was desirous to see the project re-started to spruce up the economy and provide substantial employment for Anguillian workers as well as nationals from other Caribbean islands who previously worked there and were still on the island.

Over the past several days the Government met in three or four sessions of the Executive Council to discuss matters related to the project which was represented by one or more of its principals. In responding to questions about the project, Mr. Banks said the Government wanted to be very careful in reporting on the matter and it was felt that the best thing would be to prepare a written and carefully-drafted presentation in order not to upset the negotiations. The Minister disclosed, however, that the Government had engaged a legal agency in the United States to look at the Crown’s land lease agreement and the management of the golf course project. In addition, an internationally-renowned agency had been retained to assist with the evaluation of the golf course facility and what compensation Anguilla would have to pay to own it and whether or not it was a gainful venture.

He discounted a statement by Opposition Member, Hubert Hughes, who said that one of the principals of CuisinArt Resort and Spa had expressed an interest in purchasing the golf course. He stated that a letter to the contrary was received by his Ministry from the developer who might have had an interest in the management of the project.

Mr. Banks noted that the purchase of a golf course was an expensive exercise and that such an entity could only work because of the real estate aspect. Such a lack of that component would result in the manager of the golf course having very little to deal with in terms of getting a return on his investment. He observed that it was shown that expenditure on the upkeep of the golf course for a 12-month period, prior to its closuring, was in the region of 5.9 million with revenue 2 million, leaving a shortfall of 2.9 million. The Minister of Finance said there were probably 250 acres of land involved in the golf course and that the entire development amounted to a cost of three quarters of a billion dollars (US$750,000,000).

“At the end of the day, we don’t want to see a project in Anguilla standing as a white elephant for a number of years,” Mr. Banks went on. “Two, there are a number of Anguillians who are owed money by the project; three, there are a number of business opportunities and jobs which can accrue to Anguillians down the road; and fourthly, a golf course is an important part of Anguilla’s tourism product…It is here and if it is allowed to deteriorate, it would take 12 months minimum to restore it to playing capability.”

Mr. Banks said that Mr. Sillerman, principal owner of the golf course project, “could simply throw his hands into the air and walk away but he doesn’t want to do this. In support of this statement, Chief Minister Fleming emphasised that the Flag project was a touchy matter requiring careful handing and he was grateful to Governor Alistair Harrison for his participation and assistance in the talks so far. Mr. Fleming took the opportunity to read a portion of a letter which he received Mr. Sillerman on May 1, expressing his views about the project.

The concluding part of the letter reads as follows: “It is my sincere desire that the project be completed. Given the global financial crisis and the difficulties by investments in the tourism industry world-wide, we should make every effort to breathe new life into the project. This would generate hundreds of jobs and tens of millions of dollars in revenue for the Government of Anguilla. The people of Anguilla deserve no less.”

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