Office of the Prime Minister

Cabinet Meeting - 21st March, 2006.

Belmopan - 22 March, 2006.

Cabinet considers impact of petroleum on economy

On the basis of technical advice from Government’s Geology and Petroleum Office and the work plan of the newly appointed Petroleum Advisory Board, Cabinet today began consideration of the potential impact of the petroleum industry on the nation’s economy as well as a review of the tax regime relating to the industry.

o briefed Cabinet on the work plan ofNatural Resources Minister John Bricen the Petroleum Advisory Board. The Board has taken on as a priority a study of the appropriate tax law for the petroleum industry and it is expected that proposals for a new petroleum law will be presented to Cabinet before the end of this year.

Cabinet also received a presentation on Belize’s petroleum sector requirements from Petroleum Advisor Dr. R. Ramanathan and Geologist Andre Cho. The presentation highlighted the fact that petroleum being a non-renewable natural resource, the people of Belize should receive a fair share of revenue derived from any petroleum produced in Belize.

Working the CSME

Cabinet has appointed working committees at the national level to allow Belize to participate meaningfully in the operation of the Caricom Single Market and Economy (CSME).

A Cabinet Committee under the chairmanship of Foreign Minister Hon. Godfrey Smith will provide executive oversight over all matters of trade and regional economic integration; and a technical committee chaired by Ambassador Lawrence Sylvester, CEO for Foreign Affairs, will strengthen the existing inter-ministerial Trade Technical Team into a broader technical body encompassing all other elements of the CSME.

Cabinet also set up a Committee under the chairmanship of the Director of Immigration to consider the implications of the Free Movement of Skills under the CSME. This Committee will comprise personnel from the Departments of Immigration, Labour, Education and Tourism, as well as representatives of the Trade Unions, the Private Sector, and the Belize Tourism Industry Association.

The work of these committees will also include the strengthening of Belize’s fledgling relations with the Central American Integration System (SICA) and our substantial trade relations with Mexico.

In other Cabinet news, Cabinet has authorized the Minister of Foreign Affairs to make an Order for the publication of a Statutory Instrument to enforce in Belize the U.N. Security Council Resolution (1617/2005) which will allow Belizean authorities to freeze the assets of terrorists, restrict the movement of terrorists, and prevent their access to weapons.

Cabinet also agreed to present to the House of Representatives a Bill (Criminal Justice Reform (Plea Discussions and Plea Arrangements) Bill, 2006) which, when passed into law, will allow a prosecutor and a defendant to engage in plea discussions aimed at arriving at a plea agreement in respect of a course of action to be taken in the prosecution of a summary or indictable offence.

The next Cabinet meeting will be held on Tuesday, April 4, 2006.

For further information contact:

ROBERT LESLIE
Cabinet Secretary

March 21, 2006.