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TCI: UK Govt says alternative Brexit funding may lead to OT Development Fund

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#Providenciales, May 14, 2019 – Turks and Caicos – United Kingdom explains that the Government it is committed to filling gaps left due to the imminent British exit from the European Union.

The Government in a recently published report explains the plan of action.

“Future funding arrangements for the OTs will be considered as part of the next Spending Review, which will conclude at the budget. To feed into Spending Review considerations, the Government is establishing an Inter-Ministerial Group to meet to examine the issue of whether to develop a dedicated OT fund, including ODA assistance, together with other longer-term issues, including those raised in the Committee’s report. We will inform the Committee of its outcome.”

The Foreign Affairs Committee advised the UK Government that it needed to begin to consider how it would manage the void as the EU is credited with partnerships with Overseas Territories to the tune of tens of millions of dollars. 

“… the Government should explore options for a dedicated development and stimulus fund for the OTs, which would allow for the long-term, sustainable development of aid-dependent territories; help to stimulate the economies of those who need a stimulus but do not qualify for official development assistance; and help territories that are otherwise financially self-sufficient respond to crises such as hurricanes. This long-term vision must be based on a clear-eyed assessment of how the UK will balance the needs of individual OTs against value for money for UK taxpayers. There must be scope to ask hard questions about the long-term sustainability and viability of individual OTs without further significant levels of UK capital investment. If the Government does not think significant capital investment is possible, then it must be frank about what it will spend and towards what end,” recommended the FAC in February 2019.

The Foreign and Commonwealth Office added, “The Government will also be considering future funding for the Blue Belt programme as part of the forthcoming Spending Review, as the current programme ends in March 2020. The Government announced in the Spring Statement 2019 that it will support the call from Ascension Island Council for a fully protected, no-take Marine Protected Area in its offshore waters. The Chancellor confirmed that funding for ongoing costs associated with Ascension’s MPA will be delivered at the forthcoming Spending Review.”

The FAC was informed that research and understanding has long been started as the UK Government aims to ensure there remains some kind of support to the OTs.  In the conclusions section of the report, released on May 7, 2019, this was said:  “The OTs currently benefit from a number of EU programmes, specifically the European Development Fund, Horizon 2020, The Voluntary Scheme for Biodiversity and Ecosystem Services in EU Outermost Regions and Overseas Countries and Territories (BEST) and Erasmus+. Gibraltar also receives EU structural funds, specifically the European Regional Development Fund (ERDF) and the European Social Fund (ESF) and takes part in European Territorial Cooperation (ETC) programmes. In the event of no deal, the Chancellor has agreed that the UK government will guarantee funding for specific EU projects over their lifetime, should it be required; further details are set out in the Technical Notice, which was published on 12 October 2018. This will provide certainty for the OTs and participating organisations over the course of EU exit.”

While the tone of the commentary is one of committedness by the UK Government, there is also caution which the OTs will likely note and discuss in upcoming meetings with the FCO.

“Any future funding arrangements will need to demonstrate value for money and adopt a consistent approach across all government departments that manage such funds. No decisions have yet been taken on this matter. The OTs will be fully consulted in the process.”

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50 Years of Ministerial Government: Cabinet Moves to Mark Milestone Rooted in 1976 Constitution

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Turks and Caicos, March 30, 2026 – The Turks and Caicos Islands is preparing to mark a major political milestone, with Cabinet approving the establishment of a National Commemorative Committee to celebrate 50 years of ministerial government, a system first introduced under the 1976 Constitution.

The decision, confirmed in the February 10 Post Cabinet statement, signals a year of reflection on a governance model that fundamentally reshaped how the country is run — shifting from direct colonial administration toward locally led political leadership.

That shift was formalized in the Turks and Caicos Islands Constitution Order 1976, which laid the legal foundation for ministerial government and introduced a structured Executive and Legislative system.

At its core, the 1976 Constitution established an Executive Council, bringing together:

  • a Governor,
  • a Chief Minister elected by members of the Legislative Council,
  • and Ministers appointed to assist in governing the Islands.

A Very Different Government Back Then

If today’s Cabinet feels crowded, the 1976 version would have seemed almost unbelievable. There were just three Ministers serving alongside the Chief Minister — a tight, compact leadership team responsible for the affairs of an entire country. No sprawling list of ministries, no long roster of portfolios — just a handful of individuals carrying the weight of governance.

Becoming a Minister wasn’t a direct vote of the people either. You first had to win a seat in the Legislative Council, and from there, the Chief Minister would recommend who should serve. The Governor then made the appointments. In other words, political trust and alignment mattered just as much as public support — and ultimate authority still rested above the local leadership.

And as for job security? There wasn’t much of it. Ministers served without fixed terms and could be removed if they lost their seat, resigned, or if the Governor revoked their appointment. Even the Chief Minister could be ousted through a vote of no confidence. Add to that the basic requirements — being at least 21, a British subject, and meeting residency rules — and it’s clear that ministerial government in 1976 was not only smaller, but far more tightly controlled.

This marked the first time elected representatives were formally given defined roles in the administration of national affairs.

Under the Constitution, the Governor retained overarching authority, but was required in many instances to act on the advice of the Executive Council, particularly in shaping policy and overseeing government operations.

The Chief Minister, meanwhile, was positioned as the central political leader, responsible for directing government business and advising on the appointment of Ministers.

Importantly, the Constitution also allowed for the assignment of responsibilities to Ministers, giving them oversight of specific areas of government — a structure that remains at the heart of today’s Cabinet system.

Section 13 of the Order made clear that Ministers could be assigned responsibility for the administration of departments or government business, embedding accountability and functional governance into the system.

The Legislative Council, established alongside the Executive, provided the law-making body, with elected and appointed members participating in debates, passing legislation, and representing the interests of the Islands.

Together, these provisions created the framework for what is now recognized as ministerial government — a hybrid system balancing local political leadership with constitutional oversight by the Governor.

The explanatory note of the 1976 Order describes it as introducing “new provisions for the Government of the Turks and Caicos Islands,” including the creation of a Legislative Council with elected members and Ministers appointed on the advice of the Chief Minister.

Fifty years on, that structure has evolved through subsequent constitutional changes, but its foundation remains rooted in the 1976 framework.

Cabinet’s decision to establish a commemorative committee suggests that the anniversary will not only celebrate political progress, but also invite reflection on how effectively the system has delivered on its promise of representation, accountability, and governance.

As the Islands approach this Golden Jubilee, attention is likely to turn not only to the achievements of ministerial government, but also to the ongoing question of how the system continues to serve a modern and rapidly developing Turks and Caicos Islands.

Developed by Deandrea Hamilton • with ChatGPT (AI) • edited by Magnetic Media.

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Government Moves to Amend Destination Management Fee Law

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Turks and Caicos, March 30, 2026 – The Turks and Caicos Islands Government has signaled changes to its tourism funding framework, with Cabinet approving draft amendments to the Destination Management Fee Act 2023.

The decision was confirmed in the Post Cabinet statement following the February 5 meeting, chaired by Governor Dileeni Daniel-Selvaratnam, where members agreed to move forward with revisions to the law governing the collection and administration of the fee.

The Destination Management Fee, introduced in 2023, is applied to travelers entering the country and is embedded within the cost of travel. The charge was designed to support tourism-related development, including marketing, infrastructure, and sustainability initiatives.

At the time of its introduction, the fee was linked to the establishment of a Destination Management and Marketing Organisation (DMMO), which was expected to coordinate tourism strategy and enhance the visitor experience.

However, recent developments have shifted that landscape.

The DMMO has since been discontinued, raising new questions about how funds generated through the fee are being managed and what structure will now guide tourism development efforts.

The Cabinet note does not outline what specific changes are being proposed under the amended legislation.

It also does not indicate whether adjustments will be made to:

  • who pays the fee,
  • how it is collected, or
  • how the revenue is allocated and overseen.

The move to amend the law comes amid broader government efforts to strengthen revenue collection and compliance, including updates provided to Cabinet on the work of the Drag-Net Steering Committee — a multi-agency initiative focused on improving government revenue systems.

The lack of detail surrounding the amendments leaves several key questions unanswered, particularly given the fee’s direct impact on both visitors and residents and its role in supporting the country’s tourism economy.

Any changes to the Act would require further legislative steps, including presentation to the House of Assembly, before taking effect.

For now, the Cabinet’s approval signals that the government is moving to revise a policy that is already in force — but without yet disclosing how those revisions will alter the current system.

As tourism remains the backbone of the Turks and Caicos Islands economy, clarity on the future of the Destination Management Fee — and the framework it supports — is expected to be closely watched in the weeks ahead.

Developed by Deandrea Hamilton • with ChatGPT (AI) • edited by Magnetic Media.

Photo Credit: TCIAA

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Fuel Costs Rise Again as Pelican Energy Warns of Global Pressures

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Turks and Caicos, March 30, 2026 – Electricity costs in the Turks and Caicos Islands are climbing again, with Pelican Energy reporting increases in the fuel factor for March, while warning that global instability could push prices even higher in the months ahead.

In its latest update to customers, the power provider confirmed that fuel factor rates — the portion of electricity bills tied directly to the cost of fuel — have risen across most service territories.

Providenciales, North Caicos and Middle Caicos will see a 3.4 percent increase, bringing the rate to $0.1658 per kilowatt hour, while Grand Turk and Salt Cay will experience a 2.8 percent rise to $0.1569 per kWh. The rate for South Caicos is still pending, though in February it climbed by 2.8 percent to $0.1728 per kWh.

The fuel factor is a variable charge, meaning it moves in response to international oil prices — and right now, those prices are under pressure.

Pelican Energy pointed to geopolitical tensions in the Middle East, including ongoing conflict affecting key global shipping routes such as the Strait of Hormuz, as a major driver of recent increases.

That narrow waterway near Iran is one of the world’s most critical oil transit corridors, with a significant share of global fuel supply passing through it daily. Any disruption — whether from conflict, threats, or shipping delays — has a direct impact on global prices.

Energy markets have remained volatile as a result, with production decisions by OPEC and its allies also influencing supply levels and pricing trends.

For the Turks and Caicos Islands, which relies heavily on imported fuel for electricity generation, the impact is immediate.

“Because we rely on imported fuel to generate electricity, these market conditions can influence fuel costs in TCI,” the company said, noting that it is closely monitoring developments.

While the upward movement in fuel costs is concerning, Pelican Energy also indicated that infrastructure upgrades are underway — projects that may cause short-term inconvenience but are expected to improve long-term energy reliability.

Those improvements could include enhancements to generation capacity and distribution systems, though in the near term, residents and businesses may experience disruptions, including traffic impacts linked to ongoing works.

The company emphasized that the fuel factor will continue to fluctuate in line with global trends, rising when international prices increase and falling when they decline.

For consumers already facing high utility costs, the latest adjustment reinforces how closely local electricity prices are tied to global events far beyond the region’s control.

With tensions in key oil-producing areas showing no clear resolution, and global supply routes remaining vulnerable, the outlook for fuel costs remains uncertain.

For now, Pelican Energy says it will continue to monitor international developments and keep customers informed — but the message is clear: what happens in global oil markets is being felt directly on electricity bills at home.

Developed by Deandrea Hamilton • with ChatGPT (AI) • edited by Magnetic Media.

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