Natural Resources Minister takes apart the budget

gasper vega

Petroleum has been one of the largest income earners for the government over the 2009 to 2010 financial year. According to the prime minister, there was an inflow of approximately forty five million dollars from the local petroleum sector, coming not only from royalties, but also from income tax, working interest, production sharing, surface rental and environmental monitoring fees.  The Prime Minister called it a boon. And that figure should go up for the 2010 to 2011 financial year.  Several measures including an increase in millions from the Company’s Tax has been almost totally derived from Income Taxes on Local Petroleum Operations. An increase of four million in Petroleum Royalties is expected increase the overall figure to eighteen million.  And a new inflow of one point eight million dollars will also be raked in by G.O.B. under the Excise Tax on locally produced crude oil; But today, the Minister of Natural Resources, Gaspar Vega, said that despite the income, it could have been much more, if the previous government had done its homework and bargained for a better production sharing agreement.

Gaspar Vega, Minister of Natural Resources

“In working interest alone we collected thirteen million dollars. In royalty we collected forty-four million dollars. In the production sharing we collected six hundred and sixty-eight thousand dollars Mister Speaker. Of course it sounds like a lot of money when you’re collecting but it’s not enough to pay just the interest of the super bond. Mister Speaker they keep crying ‘Why don’t you collect more?”. Mr. Speaker, the production sharing that we collect is one point five percent. That is something that the past administration signed for Mister Speaker. This new administration Mr. Speaker has not signed a P.S.A. for less than ten percent Mister Speaker. Mister Speaker, and the ones that we signed for ten percent is for areas relinquished by other companies. So the probability of finding oil is lesser than what it was originally anticipated and still yet these companies are signing ten percent. For brand new areas mister speaker they are signing fifteen percent. The royalty rate they signed with BNE is seven point five percent collected forty-four million dollars. Imagine Mr. Speaker, we would have collected thirty-three percent more, which would have given us something like sixty-one/sixty-two million dollars instead of forty-four million. Mr. Speaker, these are the things that we are paying for what the PUP did. Mr. Speaker, it is important to know that out of the forty-four million dollars the owners of the land where the oil fields is collected two point two million dollars. Imagine Mr. Speaker, they too would have collected thirty-three percent for had the PUP government signed a better contract for the Belizean people. I take this opportunity to publicly thank the employees of my ministry for making sure that they do a good job. Mr. Speaker, I also want to ask them to continue working as a team to provide the highest quality service to all Belizeans.  Mr. Speaker, on previous occasions I reported to the honorable House that our registry had a back log of over two years.  I am so proud today and happy to tell this honorable House that the registry is signing instruments that are only four weeks old. So you see Mr. Speaker, we have been able to significantly reduce turnaround time within the Lands Department and that Mr. Speaker is a fact. The public are constantly congratulating the staff on a daily basis for their improvement and efficiency and effectiveness. Mr. Speaker, this year alone registry has posted over twenty-eight thousand instruments. This year alone, Mr. Speaker, we have issued over three thousand two hundred brand new house lot leases.”