Address by Hon. Phillip J. Pierre
to the Launching of the St. Lucia Offshore Institute

Wyndham Morgan Bay Resort Friday August 24, 2001

Ladies and gentlemen welcome. I am pleased to address you here at this launch of the St. Lucia Branch of the Offshore Institute. I understand the OI is one of the better-recognised institutions in the offshore industry and its members represent the calibre of professionals we hope to attract to do business here in St. Lucia. This is the first step in the establishment of the Caribbean Chair and we are pleased to host this occasion in St. Lucia. We invite you to consider St. Lucia as the venue for the next Caribbean Conference.

The International Financial Services Industry in St. Lucia is still in its infancy. We have been in operation for just over one year. In that period of time, we have ensured that our efforts in marketing and regulation have been consistent with our objective of long-term sustainable success. To date, we have 278 IBC's registered, five international insurance companies, one offshore bank and five international trusts.

The Financial Services Sector is an investment in the future. We are aware that the benefits accrue over time, but we are in it for the long haul. We will not compromise our integrity and reputation on the altar of economic expediency or short-term benefit.

The Government is committed to the highest international standards of regulation, anti-money laundering efforts and service. Our Registered Agent and Trustee Licensing Act requires annual licensing and audits to ensure that only persons who meet the expected performance standards will provide service to our valued clients. We have licensed ten (10) local professional service providers so far.

The Government's support for the industry is dynamic. We have passed a very robust legislative framework, properly manned regulatory offices and a promotional partner to oversee the marketing effort. The laws passed are not only to facilitate the use of the jurisdiction by clients, but also to assist the service providers with the investment required to market their services and equip themselves for the delivery of these services.

The recent amendment to the income tax act makes provision for up to ten (10) years of tax incentives including a complete exemption for four (4) years, with another six (6) years of tax credits between fifty and twenty-five percent for qualifying revenue for fiancial service providers.

The qualifying professional services include such activities as:-

· Incorporation
· Provision of office facilities
· Directorships
· Secretarial work
· Audit and accounting services

The Honourable Prime Minister in his 2001-2002 Budget outlined these incentives and was "confident that this measure will add a great incentive to this pioneer business activity in St. Lucia."

The Government is aware of the challenges facing the industry that are unique to a recent entrant and that plague the entire industry. Through the Cabinet Committee on International Financial Services and the IFWIC Board, the Cabinet of Ministers is advised of the issues faced and is able to develop strategies to address them.

One thing is clear - the success of the industry lies to a large extent on the registered agents, especially in the infancy of an industry where challenges are very real. Credit must be given to the registered agents for not "selling out" - that is accepting any business regardless of source or quality, merely to make the numbers or meet commitments. This is good long-term vision and the government applauds this approach. We expect that part of the savings to be had from the tax incentives will go into marketing and service development; that is, re-invested to build on the opportunity we have in the changing international environment.

The Financial Services Industry, like any other business, is developed through investment, capacity building, strategic planning and targeted marketing. I am sure that service providers understand these issues and will make the required adjustments.

Service providers in St. Lucia can benefit from membership of the Offshore Institiute by networking with the leading providers and thinkers in the industry in the major financial centres of the world.

On behalf of the Government of St. Lucia, I welcome Mr. Sam Lohman and the Offshore Institute, and assure them that St. Lucia will maintain its pristine reputation and the image it has developed of being an ideal location for the highest quality International Financial Services.

Thank you.