Plans for signing of the formal agreement between the Government and Supreme Ventures Ltd for the divestment of the assets of Caymanas Track Limited (CTL) have been delayed by the House of Representatives.

The signing was planned for today (November 18); however, the debate on amendments to two Bills – the Betting, Gaming and Lotteries (Amendment) Act and the Jamaica Racing Commission (Amendment) Act – which would facilitate the changeover, were delayed last Wednesday due to Opposition Members of Parliament’s (MP) demand for more time to study the Bills.

The Opposition MPs seemed particularly concerned about the provisions for exclusivity in the licence to be granted to the new owners.

Leader of Opposition Business Phillip Paulwell noted that the Bills were only tabled a day earlier, which was insufficient time for the MPs to prepare for the debate.

Opening the debate on the Bills, Minister of Finance and Public Service Audley Shaw noted that CTL, the sole promoter of horse racing in Jamaica, has over the years been affected by inadequate funding to invest in improving its infrastructure and facilities for better revenue generation.

He noted that as a result of the recognition of the need to modernise and transform the horseracing industry in Jamaica, the decision was taken to privatise the entity.

“The process of divestment is far advanced, as the negotiated terms of the divestment transaction have been approved by the Government. The passing of these two pieces of legislation, the provision of which would enhance the process, is necessary,” he said.

Shaw said that one of the main policy objectives of the amendments was to provide the legislative support for the granting of geographic exclusivity with respect to the racing promoter’s licences.

He explained that the issue of an investor being provided an exclusive licence is not unusual in a divestment, as investors would want to be assured that they can recoup their investments.

“Among the terms of the divestment transaction is the long-term lease of 30 years of Caymanas Park. The Government, subject to these legislative changes, also gave approval for all-island exclusivity to be granted to the preferred bidder for a period of 15 years. Any further period of exclusivity will be determined by the Government of the day,” Shaw said.

However, Leader of Opposition Business Phillip Paulwell said that in fairness, his colleagues, who were not aware of the Bill previously, would like a suspension of the debate until a later date to accommodate their inputs.

Shaw said that he had spoken to the Opposition’s spokesman on finance Dr Peter Phillips, and that he had expressed full understanding of the purpose of the amendments to accommodate the divestment by early December.

“The House needs to be aware that if this exclusivity is not granted, this divestment will not take place,” Shaw said.

Leader of the House Derrick Smith also intervened as an owner and breeder of horses at Caymanas Park, stating he was “very disappointed” with the response of the Opposition MPs.

He said that the action of the Opposition was “ flying in the face” of racing interests, as individuals in the industry are anxious for the new owners to take over of the operations.

“I am making an appeal for them to reconsider that position; in other words, override self-interests,” Smith said.

Paulwell accused Smith of “imputing motive”, and suggested that the matter should not be addressed until December when the House resumes.

Opposition spokesman on finance Dr Phillips said that he recognised the need to grant exclusivity to the new owners.

“It was the view of the previous Administration that they would have the same exclusivity, and it was the terms on which tenders were sought by the previous Government,” he admitted.

He also agreed that it was up to the minister to determine the extent of the exclusivity, and it was also up to the investor to say whether or not he remained interested in the venture.

“Then the Administration could face, as we would have had, continuing to make a $100 million a year subsidy, or if we close it down… what would happen to the thousands and thousands who depend on it for a living?” he said.

However, he said that, at the same time, the question is whether the House should deny the rights of the Opposition MPs who wanted to contribute to the debate at a later date.

The House then decided to delay the debate until December 6, when it resumes sitting after the current Local Government Elections campaign.

But, according to the country’s agreement with the International Monetary Fund (IMF), the handover of the track is a benchmark agreement required by March 2017, which could allow for some time for the debate.