Gonsalves claims victory in beachfront land dispute

Prime Minister Dr Ralph Gonsalves has described as "a nationalist victory" the outcome of a longstanding legal battle that will result in 100 acres of beachfront land at Union Island in the Southern Grenadines returned to the state.

To reclaim the property, St Vincent and the Grenadines must pay US$244,968.87 to the Chatham Bay Club Limited and Chatham Bay Corp by next January 25, by order of the Privy Council.

The property has a market value of EC$80 million to EC$100 million, Gonsalves said at a press conference on Monday.

The consent order by the London-based court follows a settlement agreement by the parties that allowed for the companies to withdraw their appeal.

Chatham acquired the land from the state in 1987.

"This is a case that involves the reclamation of our patrimony," Gonsalves said.

The US-owned companies received an Alien Land Holding licence from the government on condition that they spend EC$15 million to build a 50-room hotel and a restaurant, within three years of acquiring the land.

Gonsalves said that the EC$15 million that was to be invested in the hotel was "not a great deal of money as far as hotel infrastructure is concerned".

Gonsalves, whose government came to office in March 2001, applied for forfeiture in 2006, because of the failure of the company to carry out the terms of the agreement, he said.

Chatham contested the takeover but the courts sided with the St Vincent government.

"They went through the whole legal battle over the years and eventually we settled, and the settlement involved the payment of the EC$477,000 which they paid for the lands, plus interest of five per cent annum from January 25, 2006," Gonsalves said.

"This is a nationalist victory, a massive victory for the people, a reclamation of our patrimony and a clear message that this government is interested in foreign direct investment, at the same time that the investors must live up to the conditions of the Alien Land Holding licence," said the prime minister. "That is the story very simply."

- CMC