Nationalize Captain Morgan?

There are problems with living in the Caribbean – the hot sun, too much rum and easy living for those in a position of power.  Thus, it is not uncommon to observe the early onset of dementia and many wander the streets with delusions of grandeur.  Unfortunately it is sometimes difficult to tell the difference between the homeless mentally ill and politicians seeking reelection.

One thing that is great about big new projects is that they always bring out the worst in our environmentalists and politicians. Everyone is misreading facts or creating lies and then forming opinions based on these falsehoods while others are seeking the deadly blow that will kill the project for whatever hidden agenda they might have.

Perhaps my favorite take-out on the Diageo Deal is that we are “entitled” to a piece of the Captain Morgan brand for the privilege of letting them generate a $100 million in taxes each year, providing 40 jobs and bringing infinite publicity to the Virgin Islands.

Lets start with basics.  Bacardi has been in the US for over a hundred years and they are the number one rum in America and the third largest distilled spirit of any type in the country.  Diageo purchased the Captain Morgan Brand from Seagrams and in 1984 introduced in to the United States.  The Virgin Islands government did not assist Diageo with the purchase of the brand name or the expense of a National Launch.   Over the past several years, Diageo has spent hundreds of millions promoting the brand and it is so successful that it is very likely to become more popular than Bacardi.  Captain Morgan is extremely successful and got that way without the assistance or financial support of the Virgin Islands government.

Just like other third world dictators (Chavez and Castro), some Senators see profitable companies that they did nothing to create and want to nationalize them for the good of the people “dem.”  Suggesting a piece of the pie or a “partnership” for a Billion Dollar business that we did nothing to create is promoting theft or nationalization. Now in St. Croix, revolutionary socialist thoughts do not necessarily stop you from getting elected. Fortunately for the people of the Virgin Islands and generating new revenue streams to get us through the future energy crunch and pay down the GERS debt, the St. Thomas Senators get elected on maintaining the status quo and not rocking the boat.

The banal debate on partnerships and jobs for natives by the publicity hounds serves to obscure the fact the the contract is a major commitment by the people of the Virgin Islands and the economic analysis must be exact. Behind the scenes some of the best economic minds have done an exacting economic analysis and Kennith Mapp will be bringing his analysis to the public on Saturday (today) at 2PM on 97X. His more exacting methodology of actually reading the Diageo documents and grasping the meaning of the Diageo Contract has identified several serious and Deadly flaws which may be the Achilles heal of the Diageo Deal and have nothing to do with the knee jerk rejection by Springer and Bryan and proponents of nationalization.
Everybody concerned with the economic well being of the territory should listen to the one hour program including the Governor and all Senators.   Hopefully the Governor will listen to the financial analysis and cancel the Diageo hearing and thus gain enough time to renegotiate and alleviate the financial risks identified by Mr. Mapp. To throw the Diageo People into a den of lions while the contract is indeed flawed, is lunacy.