DP gets the nod on $1.5M WRITE-OFF for Local Airlines

Dana Malcolm 

Staff Writer 

#TurksandCaicos, August 18, 2023 – The Turks and Caicos’ two domestic airlines will benefit from a 50 percent government write-off of fees charged by the Turks and Caicos Islands Airports Authority, amounting to over $1.5 million and dating back seven years.

In exchange, a clean slate on that debt for a lump-sum payment by both interCaribbean Airways and Caicos Express Airways.

“In return, both airlines have committed to significant lump-sum payments and have agreed to adhere to stringent terms for future transactions.  Such a proposal not only acknowledges the past oversights, but also establishes a clear path forward, building trust and fostering collaboration” said the Minister in presenting the motion.

The Government Motion authorizing the write-off was passed in the House of Assembly on Wednesday, August 16th, 2023; tabled by E Jay Saunders, Deputy Premier and Finance Minister.

Those charges include a monthly two percent late fee instituted by the TCIAA on accounts in arrears.  It was found the TCIAA did not have the authority to apply those late fees so they will be rolled back.  The MPs agreed that the levy had not been imposed with malice, but to act as a deterrent to the late payment of fees. Still, facing the possibility that airlines could go to court and the TCIAA could possibly lose the case, the write-off was decided.

“Mr. Speaker, the current debt situation involving interCaribbean Airways, the TCIAA and the TCIG dates back to 2016, with unresolved legal actions and long standing receivables.  Mr. Speaker, what our government is seeking to achieve, after thorough deliberation and consultation, is to reach a compromise outside the court system,” Saunders explained.

When Edwin Astwood, Opposition Leader, questioned why the Government did not write off the entire amount, considering that the two percent fees were unauthorized, Saunders maintained that the write-off was not just for those fees but encapsulated them, as well as other arrears.

The motion was met with support from both sides of the House.

Still, several members of parliament indicated that they wanted to see changes made to benefit the people of the Turks and Caicos in tandem with the debt forgiveness.

Matthew Stubbs, Member of Parliament for the Bight, spoke directly to interCaribbean Airways, encouraging them to improve their caliber of service.

“…Lord knows we need better service from interCaribbean.” he said.

Astwood queried how the residents of the Turks and Caicos Islands would benefit from the deal.

“There should be some talks between the Government and the airlines.  We give you all this money, what are you going to do for the people of the Turks and Caicos islands? How is your service going to look different in the upcoming months?”

Akierra Missick, Member of Parliament for Leeward and Long Bay, said she was hopeful that at least some of the savings would be passed on to the residents of the TCI.