Establishment of an Independent Arbitration Body for the Equitable Revenue Sharing Agreement between St. Kitts and Nevis

The government of St. Kitts and Nevis is embarking on a significant initiative to establish a fair share agreement between the two islands, aiming to ensure equitable distribution of revenue and strengthen the bonds within the Federation. Recognizing the complexities and sensitivities surrounding this issue, particularly concerning the distribution of non-taxable revenue from the Citizenship by Investment (CBI) program, the government has enlisted the expertise of an independent body under the World Bank to facilitate the process. This strategic move underscores the government’s commitment to transparency, fairness, and collaboration in addressing a matter of national importance.

The impetus for this initiative stems from the evolving economic landscape of the Federation, particularly the emergence of non-taxable revenue streams like the CBI program. While the current constitutional framework outlines the sharing of taxable revenue, the rise of non-taxable revenue has introduced complexities that necessitate a revised approach. The government aims to create a comprehensive framework that addresses these challenges while aligning with constitutional provisions and ensuring equitable benefits for both St. Kitts and Nevis. The involvement of the World Bank provides an impartial and expert perspective, ensuring adherence to international best practices and fostering trust in the process.

Prime Minister Hon. Dr. Terrance Drew has emphasized the government’s dedication to fostering fairness and transparency in this undertaking. He highlighted the importance of an independent body in ensuring objectivity and credibility, leading to an agreement that reflects the best interests of all citizens. This approach aims to create a sustainable and equitable framework for revenue distribution that benefits future generations. By addressing the historical complexities of revenue sharing, the government seeks to build a stronger and more unified Federation.

The government’s commitment to supporting Nevis extends beyond the pursuit of a fair share agreement. Prime Minister Drew underscored the ongoing provision of robust support to Nevis through essential services and direct financial contributions. These include funding for critical areas such as national security, ports and airports, fire services, and monthly budgetary support. This continued support demonstrates the government’s commitment to the well-being of both islands and emphasizes the interconnectedness of their development.

The engagement of the World Bank is a pivotal aspect of this initiative, bringing impartiality and adherence to international best practices to the process. This involvement is expected to enhance the credibility and acceptance of the final agreement. The Prime Minister expressed confidence that the World Bank’s facilitation will bring clarity and resolution to a historically contentious issue, demonstrating the government’s commitment to resolving complex issues with integrity and transparency.

The establishment of a fair share agreement represents a significant step towards strengthening the relationship between St. Kitts and Nevis. The Prime Minister has appealed for patience and understanding from citizens as the process unfolds, recognizing the importance of getting it right. He emphasized that the engagement of an independent body ensures that the final agreement will be durable, reflecting the principles of fairness and equity, and contributing to a more harmonious and prosperous future for the Federation. This initiative signifies the government’s commitment to building a stronger, more unified nation based on principles of fairness, transparency, and collaboration.