The author criticizes the fact that sugar land is being converted to smart cities. He’s afraid of who might pay the collateral damage for that.

The Smart Cities Scheme, the child of PPP (Public/Private Partnership), is intended to be a remake or a continuation of the Illovo deal, with the actors now reversing roles. The reader will remember the then Prime minister (PM) Paul Raymond Bérenger leading the charge and Mr Pravind Jugnauth in the shadows. This time the latter has learnt his lessons; he is the one spearheading the Scheme and Mr Bérenger does not oppose! The contrast with Illovo ends here.

Not many, if any, in the Legislative Assembly are giving the impression to bother. I wonder if the ‘patriotic’ Opposition knows the ropes. Are they acquiescing tacitly to a deal that overrides public interest? Isn’t the present PM’s defiant announcement of his Government’s bedding with the private sector, more exactly with a dozen sugar barons, the height of paradox? Isn’t this an indecent post electoral move? Huddling right, in spite of the December 2014 paradigm shift? Whatever! Such a situation gives the Government a free hand to partner with big business. Didn’t the PM himself blatantly confirm public coupling with private interests in his 2030 Mission Statement?

The present Government’s major departure from declared popular democratic socialism happened at a time the Greek PM bravely surrendered his mandate to the people for renewal. A lesson in democracy prompted by forced departure from electoral promises! The one and only reason - for, continuing along economic policy lines dictated by the European Union without a fresh mandate would have been nothing less than a treachery to the people. Should not the Mauritian PM, after bowing so politely to powerful private interests, also feel that he should let the people who have elected his Government have their say by surrendering his mandate to them, like Mr Tsipras did?

It would seem there is also a strong case for pricing into the deal various costs - social, economic and environmental. Couldn’t one figure out the negative impact of a ‘smart’ commercial centre at Mont Choisy upon small businesses in Triolet and Trou-aux-Biches? Who will pay for the collateral damages? And this includes also employment layoffs! I don’t know to whom I should address this question? Is it to the minister of Finance? Or to the PM?

This Government has failed. It is now shunning its responsibilities by not applying the fiscal tools, albeit a lesser/softer fiscal rate to the promoters. What a missed opportunity to raise revenue to boost up other sectors of the economy! Not to mention the funding of future public projects. Just imagine a dozen of ‘smart’ fishing vessels in our hands – and these are the types of tools that foreigners are utilizing to deplete our ocean – and a fish port set up without borrowing foreign capital! This is how I figure out resilience, Mr Prime minister, Sir! Not by pledging resources due to our ‘children and children of their children’ – to quote the Minister of Finance. Nice words indeed!

It looks that the latter has fallen for smart cities. He has now made it a habit to play extra time, this time in Rodrigues. Is he conscious that the investors from Reunion Island he has invited will exploit Rodrigues? I ask: ‘‘Did the minister get fast-track authority from Cabinet and the Rodrigues Regional Assembly?’’ Or is it again a blunder on his part?

But, wait! This is all Mr Pravind Jugnauth’s big idea, albeit borrowed from Bérenger. And, you know, he is not known to have a factory of policy ideas! Can somebody dare ask what his next idea is? Did not electoral candidate Pravind Jugnauth make smart cities his “cheval de bataille” campaign theme, telling tales of wonder and vowing to set up ten cities against Dr Sithanen’s single one at Highlands? I wish the new ITC minister throws light on the reason why the whole thing has been transferred to the Ministry of Local Government? It’s quite a time now that Prime ministerial candidate Pravind Jugnauth has drawn a veil on the issue. It’s no wonder at all! How could he build up credentials for the top job based on tales of blunder?

Editor’s note: The author’s calculations may be impressive, but there is no doubt whatsoever that keeping those taxes “on” would lead to ZERO smart cities and to NO Illovo deal in the past.

* This figure is based on an input, from promoters, of Rs 90 billion and 5,250 arpents (out of 7,000 arpents) of land as indicated in the Budget Speech 2015 -16 and is arrived at, as follows:

Tax exemptions (Investment Promotion Act, Act 128 of 2015)

1. Land transfer tax – section 22(1)(a) of Act 128 of 2015: 5,250 @ 5% x Rs 10m (assumed market rate per arpent) = Rs 2,625,000,000

2. Land conversion tax – subsection 2(d)(ii) of section 22: 50% of 5,250 or 1,660 hectares @ Rs 3.5m/hectare = Rs 3,710,000,000

3. Corporate tax – section 22(3): 20% (assumed market return) of Rs 90 billion @15% corporate tax = Rs 2,700,000,000

4. Customs duty – section 22(4)(a): 10% of material costs (30% x Rs 90 billion) @ 100% duty = Rs 2,700,000,000

5. Value added tax – section 22(4)(b): 15% of materials costs of Rs 27 billion = Rs 4,050,000,000

Total Rs 15,785,000,000