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The Barbados Cultural Industries Development Act - A Summary
Margaret Ann Harris [email protected]
The Barbados Ministry of Family, Culture, Sport and Youth drafted its ?rst Cultural Industry Bill in May 2011. Widely debated the following year, including on social media, the Ministry presented an amended Act approved by cabinet, the Cultural Industries Development Act, to the public by early 2013. The Act is however still a Bill and needs to be o?cially voted on and passed in Parliament. It is aimed at facilitating the transfer of some $50 million into public funds under a UNESCO/EU agreement for the creative economy. The Act is focused primarily on the creation of economic value through the provision of ?scal incentives, duty free and income tax concessions and ?nancial assistance. The money is to be disbursed through a special fund under a regulatory framework supervised by the board of a soon to be created entity called The Barbados Cultural Industries Development Authority. Along with authority for the special fund, the Minister responsible for Culture, the Honourable Stephen Lashley, will be responsible for the approval of all projects. The Minister additionally holds responsibility for the Board, which will execute policy and is to advise the government on cultural industries matters. The funds will ostensibly seek to enhance social, economic development and management in the cultural industries. It is intended to support cultural entrepreneurs and administrators through both payable and non-repayable grants, loans and equity ?nancing. The latter is geared at helping investors to inject funds into cultural businesses using equity capital. Cultural entrepreneurs seeking to access the funds must request a minimum of $15 000 for projects. Up to 15% of actual expenditure up to a maximum of $250 000 are guaranteed under the project approval provisions. In addition, entrepreneurs have a period of 10 years to set o? approved capital expended against income derived. Once approved by the Minister, funds will be allocated to cultural agencies to register and obtain money and concessions for cultural entrepreneurs and practitioners. Funds will also be disbursed to cultural industries projects in the entertainment and publishing, marketing, training and investment. In addition, eligible for funding are investors, speci?cally individuals, companies or unincorporated bodies under the
already existing Companies Act of Barbados. These must be residents of Barbados, spending more than 182 days in the country and ordinarily resident on the island in the particular income year. The potential investor must have a permanent home and/or would have noti?ed the Government of their intent to live on the island for a minimum of 2 consecutive years. Project approval will be undertaken in 2 stages. Interim approval will be ?rst obtained followed by the issuing of a license to the cultural entrepreneur or practitioner. With ?nal approval, permits and licenses granted, the project will be exempt from import, stamp duty and value added tax on speci?c imports. Included are non capital supplies, such as goods used in the preparation of festivals and other events, building materials bought locally and others. The tax exemption period is 15 years for such goods. The Bill holds provision for the government to act in the role of cultural entrepreneur or practitioner. As such, like other entrepreneurs, the government would be exempt from paying all duties and taxes on new buildings or existing ones employed primarily in arts and cultural activities. Other incentives include the payment of tax at the rate of 15 % on the pro?ts made, exemption from withholding taxes on dividends and interest earned as well as from stamp duty on all project documents. The Bill sets out other standard project management and monitoring and evaluation criteria for the execution of projects including ?nes and repayment of duties should contracts be breached. The Government was supported by an international Creative Industries consultant in the development of the content
Margaret Ann Harris is a writer and a PhD Student in Cultural Studies. She has a Masters in International Trade Policy from the Shridath Ramphal Centre of the UWI, Cave Hill campus. Margaret is a founding member of the Concerned Creative Citizens Group (CCCG) of Barbados. She was a key researcher for the CCCG of the Policy Framework in the Cultural Industries Development Bill of Barbados. She has carried out research projects and prepared papers for organisations including the UNDP, the UWI, the Commonwealth Secretariat, PAHO and others.
Volume 5: July - September 2013
14
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