The country is facing extreme economic difficulties with no leadership from the government. Key issues include high unemployment, businesses closing, declining foreign investment, and poverty. The government has not passed a budget in months and is being run remotely by the Prime Minister. Major reforms are needed to stimulate the economy, including streamlining regulations, reducing taxes, and encouraging agriculture and tourism. International investors have proposed projects that would create jobs but the government is not providing adequate support and cooperation. The people of Belize must demand better leadership and solutions from their government.

1. PUP Press Conference
June 12, 2012
Statement on the Economy
By Hon. Julius Espat
The country is going through extreme difficult times economically; we seem to be a ship heading
towards the reef with no Captain and no rudder.
Our children are dying on the streets.
Drug trafficking is at an all time high.
Businesses are closing down.
Foreign direct investments have come to a screeching halt.
High unemployment.
Mothers cannot feed their children.
The country does not have a budget in place.
Cabinet has not been meeting for the last four weeks.
No house meeting has been called.
The PM in reality is running this country by remote control.
One of the only recent decisions that the PM made was to appoint an ex South
side representative, who has already shown this nation his treacherous tendencies, to lead a team
to re-negotiate the Super Bond.
Where are all the brilliant minds in the UDPs camp? or is the Prime Minister saying to his people
that he has no confidence in their skills.
We are glad though that the traitor has revealed his true self, and that he is no longer with us but
has become the UDPs burden to carry.
Imagine bond holders sitting across the table from PM's TEAM LEADER and only knowing too
well that he cannot be trusted.
GDP Data has been presented by GOB for 2011, but it is very skeptical since the economy has
had very little movement and no growth in terms of increased activity in the local market.
The recent analysis shows that the oil exports has been considerably reduced due to the

2. production output at the Spanish lookout fields reducing to almost fifty percent of its initial
outputs.
The cruise ship industry has not been able to better its present situation, due to the fact that GOB
has not seen it fit to work along with local investors to build a cruise ship docking facility. The
cruise ship corporations have clearly stated that if a docking facility is not done, then they will go
to other destinations. This has already been done when you see all the terminals that have been
built in the countries that surround us.
WHY has government refused to facilitate a cruise ship docking facility?
We are aware that a local group has already secured financing to build one.
Investor climate confidence is at an all time low due to:
Political interference in the judicial system
Corruption at the highest levels
High Crime rate
Slow bureaucratic system
Sanctity of land titles being tampered with.
The lack of FDI and the additional interference of GOB ministers in the process of potential FDI
is a major concern with certain middle men acting as agents outside of the legal system in place.
Many businesses continue to pay business tax, even when they are not making a profit so in
effect one has to be borrowing money from the banks to be able to meet the tax obligation.
Government needs to crack down on drug dealers that harass tourists and potential investors in
San Pedro and Placencia. Remember it only takes one negative encounter, and these investors
will not feel comfortable to spend their hard earned money here in our country.
Whilst there have been a few bright spots, the time of implementation and the trickling effects
has been very slow.
The tourism project on fort George area has had very limited effect in the trickling down.
Bananas have been burdened with bank loans so there is no new investment and just a payback
for loans in most instances.
Citrus prices are now predicted to come down only after a two year surge when production was
at its lowest point.

3. New investment in Citrus is expected to try to maintain production to at least 5 million boxes per
annum.
Condominium construction and new homes construction is at an all time low. Two or three
project in san Pedro and a lot of the previous project are facing receivership situations from
Banks.
The issues of the continuous downgrades and the outstanding payments to BEL and BTL are still
a cause for concern since the Gob is financially in trouble.
There is not the political will on behalf of this UDP Government, and the advisors to the PM are
very conservative and seem to be afraid to lose favor and probably their jobs.
The government needs to have constant dialogue with the opposition, the business community,
the productive sector, the unions, and with the people of Belize. Only through proper
communication, can we put our minds together and plot a way forward.
In essence the time has come for us to think outside of the box. We have to stop relying on the
heavy taxation of our people just to stay afloat. This is counter-productive, when you are taxing
the people who have the least.
We should reduce taxes to a minimum on home construction for example.
Approximately 40% of the cost of construction goes to taxes. This would give more Belizeans an
opportunity to own their own homes.
As a starting Point to any discussion about how we jump start our economy, it is necessary to
look at the industries that can easily generate Jobs and is profitable for the investor.
We should consider developing areas like Ocean View Grand (North Drowned Caye area),
whereas we can have communities that are totally duty free. This would attract major investors,
which would in effect help us with much needed FDI. . Taxes would then be charged at the
consumer level.
Another sector that needs attention, cooperation and assistance is The agro-productive sector.

4. There is significant interest in Belize for agriculture. Again Government needs to get serious
about its tax structure when it pertains to this industry. We cannot be relying solely on the
importation of goods. This government has shown its corrupt practices in the past where licenses
for onions, rice and other vegetables are given to cronies, while the same products that our
farmers produce are rotting in the fields and in their storage facilities.
Entrepreneurs that produce in Belize, know too well the reality of double taxation on their
products. This has to be looked into. We need to give incentives to our producers, and not
chastise them the way government is presently doing.
Remember, that foreign and local investors alike, borrow from the banks, invest in infrastructure,
pay taxes, generate employment and buy from other local suppliers. This is the trickle-down
effect that we need more of.
A clear example of an investor in the agro productive sector is Green Tropics Ltd., A Spanish
Company with businesses in Guatemala, Mexico, Europe, and parts of Africa.
They are proposing to Develop a sugar cane plantation of approx. 17,660 acres complemented by
a sugar mill with a grinding capacity of 8000 tons
This would generate Employment of approx. 700 workers at different skill levels, jobs that are
desperately needed in the Cayo District.
Land in the surrounding areas would increase in value.
The project would Enable land owners and farmers in the area to diversify into sugar cane
production. There would be an Increase of new businesses in the area.
I am sure the sensationalized news fueled by the government’s reaction only scares legit
investors away, where they quickly criminalize the business community at every opportunity.
These guys are serious people... Do you think they really came to Belize to break the law and be
environmental terrorists?
In summary the project will help to uplift the standard of living for a good amount of residents
in rural Belize and the Cayo District.
Government needs to deploy a serious team to assist these investors and make sure that fulfill all
their requirements in an expeditious way. I have personally seen where people come to Belize
with the idea of making serious investments, only to be turned back by the lack of cooperation by
this government.

5. As The area representative for the Cayo South constituency, I have put political differences aside
so as to make sure that this investment goes though, because the needs of the people of the Cayo
District and the people of Belize come before Party politics.
In the Corozal Free Zone for example:
The Republic of China (Taiwan) has accepted to finance the free zone
after much lobbing to fix their infra structure . The proposed loan is for BZD
2.0 m at a rate not exceeding 3.5% provided the government gives a
guarantee as countries do not loan to Private Sector, the loan will be
paid from Free Zone funds and government will not pay a Penny.
Again, this is a proposal that the Government has on its desk that we would be willing to support,
since it will help the free zone to present a more professional package to their clientele, and in
the end help provide much needed employment.
The resort and condo development is an industry that brings so much to Belize. This industry
brings revenue to every faucet of the economy. It provides employment to skilled and unskilled
construction workers, architects, engineers, attorneys, accountants, real estate agents, marketing
professionals. It brings revenue to local businesses like hardware stores, grocery shops, quarries,
block factories, woodworking factories, lumber yards etc.
Yet the permitting process and high taxes discourage these investors in this industry.
There are so many independent permitting departments that all seem to fight against each other
that unless you are connected, nothing happens.
The process needs to be streamlined and transparent in order to expedite projects.
The high taxes on development make our product expensive.
The lack of infrastructure in areas where these projects concentrate slows the process.
While the giving of incentives to foreign investors is fine, the government should insist that a
major part of the purchasing be done in country so as to ensure that the full effect of the
economic injection stays at home.
Government should adapt the PUPS proposal that more money from the budget should go back
to those communities that are generating much needed foreign exchange for this country.
Government's focus has been one of fighting the business community. The fight seems to be
color blind as both blue and red suffer. Now it seems that we are targeting the international
investor. At first, the government claims it was fighting the Ashcroft alliance, but what about all
the other international investors that are being treated like unwelcome guests. This attitude is the
crux of our country's inability to move ahead.
Hasn't the fight which has been so profitable for so few, ENOUGH?

6. I ask the Prime Minister to disclose how many millions have gone to Lois Young, Barrow and
Williams, Young’s Law firm, and other family members.
PM please disclose how much your team Leader Mark Espat is being paid for his advice?
Isn't it enough.... Isn't it time to get to business of the country? Isn't it time for the business of
creating jobs and allowing business to happen?
The opposition though is only one part of this equation. We are calling on the People of Belize to
stand up and voice their concerns. For too long the people of Belize have been too patient and at
the same time allowing these politicians in government to take advantage of us. I am calling on
the unions to stand up, the churches to stand up, teachers and public officers to join us, along
with the mothers and the fathers of this grieving nation. We all need to send a message to
Belmopan and to the world that we need to take back this country.
We are not happy, and we demand that this government works for us.
Belizeans need to take a stand to defend our future and our Democracy.