May 22 - GSD To Probe Government On Floating Hotel 'Support'
The GSD notes today's "Advertising Feature" in the Gibraltar Chronicle under the heading "Gibraltar wins €150m overnight investment, creating jobs and bringing new business". It is not readily apparent to the GSD whether this is an advertisement on behalf of the Government of Gibraltar or by the private owners of the floating hotel.
Whilst welcoming any investment to Gibraltar, the GSD has already expressed serious misgivings with regards to lack of transparency in the way the Government has sought to push this project through without proper regard to the views of residents, businesses, the planning process and the environment. Politics, the GSD says, is about making and defending decisions and “whilst we recognise that if this had been a GSD Government project it would not have gone through the planning process, this Government was elected heralding a New Dawn in the same planning process.”
“What the Government cannot do,” the GSD continues, “is attempt to be all things to all men on this and most other issues. If it’s a Done Deal because the Government thinks it is good for Gibraltar then the Government should simply say so and not attempt to pay lip service to the planning process or the environment. Indeed, last week the Chief Minister was at pains to emphasise, when questioned about public concerns about the project that the project was a deal done between Ocean Village and the owners of the Sunborn. It was not a Government project according to the Chief Minister. If that is the position, why did the Government adopt it as a Government project for DPC purposes, which then takes the project out of the planning process except for advice and guidance purposes? The Government cannot have it both ways.”
According to the GSD, “it is clear that the Gibraltar Government is attempting to herald the floating hotel due to arrive in Gibraltar shortly, as a ‘€150million investment’. Again, welcome as it is from an investment point of view, it is a distortion to suggest that this represents a Euro 150 million investment. This is certainly not comparable to a situation where the Government or a developer invests £150 million in bricks and mortar. A ship that enters Gibraltar 'overnight', can also leave 'overnight' relocating to more profitable locations immediately and therefore to talk about this as an 'investment' in those terms is not right and appears to the Opposition to be an attempt to prepare the groundwork for a miraculous statement by the Government of growth targets of over 5 per cent having been achieved. This would not only be nonsense but also misleading.”
Further, today's 'advertising feature' quotes the CEO of Sunborn Gibraltar as saying: "The welcome and support Sunborn received from the Government of Gibraltar was a significant pull factor to sway our decision to select Gibraltar as the home port..."
The GSD says that: “What level of 'support' that entails is a question which the Government has not yet answered, including (but not limited to) the cost to the Government (if any). It is astonishing that when asked by the Leader of the Opposition in Parliament last week whether any soft loans had been provided to the owners of the Sunborn, the answer given by the Chief Minister was that he was not sure and would require notice of the question in Parliament. The GSD intends to continue to probe the Government on this.”
The party also raise the following question: “According to recent media reports in Malaysia the floating hotel was expected to arrive in Gibraltar following her departure from Malaysia where it had just been built:
(http://biz.thestar.com.my/news/story.asp?file=/2013/5/10/business/13092742&sec=business).
On the 5 March 2013 under the heading “Sunborn Luxury Yacht Built in Malaysia Seeks Investors” Bloomberg news reported that “Sunborn International, a Finnish property development and investment company, is seeking investors for its 189-room luxury yacht hotel being built in Malaysia, according to a sales document. The 140-meter (459-foot) long “Sunburn III,” […] will be completed this month and Sunborn is seeking to raise 120 million euros ($156 million) from investors, the document seen by Bloomberg News said.” (http://www.bloomberg.com/news/2013-03-05/sunborn-luxury-yacht-hotel-built-in-malaysia-seeks-investors.html). Is this the same floating hotel?”
“If it is then the question arises,” says the GSD, “as to whether the Government is an ‘investor’ (whether by soft loan or otherwise) in the floating hotel and if so, what sums are involved?”
“Given the announcement by the Chief Minister for the by-election date, it is hardly surprising that the GSLP are now in electioneering mode trying to get the electorate to take the bait again 18 months after a General Election where they promised everything on anything to everyone,” said a spokesperson for the party.
The GSD concluded by saying that “the GSLP is now answerable to the electorate at this by-election even if it is not at risk as a ‘government’ if it loses this seat.”
