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News from the US Virgin Islands as of
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USVI governor signs rum agreement into law
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| Published on Friday, November 6, 2009 | Email To Friend Print Version
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ST THOMAS, USVI -- Governor John deJongh on Thursday signed into law an agreement which fosters a 30-year public-private partnership and will continue both the diversification and growth of the US Virgin Islands economy.
The agreement with Cruzan VIRIL Ltd. locks in an expansion of production capacity for Cruzan Rum in the US Virgin Islands. At the same time, this renewed alliance marks the strengthening of the relationship between the USVI government and Cruzan Rum which dates back to the 1700s.
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| USVI Governor John Dejongh signing the Cruzan Rum Bill |
The economic development and investment agreement, which was approved by the Legislature on October 27, will help grow production of Cruzan Rum and generate a significant long-term revenue stream for the government.
“The passage of this significant bill forecasts a better future for all residents of this Territory, as its effect spans from providing job security to cleaning the. It was the combination of the potential for this Cruzan agreement, along with the existing Diageo agreement, that provided the basis on which banking institutions approved a $250 million dollar Government loan previously authorized by the Legislature. As a result, government employees have not been faced with the furloughs or layoffs endured by many of their state and local government counterparts,” deJongh wrote in a transmittal letter to Senate President Louis Patrick Hill.
“With financing in place for the development of its needed wastewater treatment facility, Cruzan will be able to comply with the Territorial Pollutant Discharge Elimination System permit which will result in the removal of the infamous “brown stain” from the south shore of St Croix and at the same time allow for increased production at the Cruzan facility,” deJongh added.
Under the terms of the agreement, the government has committed to continue to share the costs of molasses, a critical input in rum production, as it has for the past several decades.
“Additionally, the government will continue to invest a portion of the tax revenues generated from the sales of locally-produced Cruzan Rum and the Virgin Islands rum industry,” deJongh said, adding that the government “will also provide financing for the construction of a state-of-the-art wastewater treatment plant and to expand capacity of the Cruzan distillery by more than 50 percent.”
“With today’s signing, we continue the effort to advance my Administration’s strategy of forming partnerships between the government and business. The rum sector in the Virgin Islands remains one of our most important and successful industries and one that Congress has provided as an economic incentive to all US territories as a vehicle for growth. This agreement will provide stability to the finances of the Virgin Islands Government,” deJongh said. | | | | Reads : 375 | | | |
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