The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A former FNM Cabinet minister yesterday slammed as “a bold faced lie” assertions by the Prime Minister and public service minister that the administration in which he served granted his business beneficial tax breaks.

Dionisio D’Aguilar, Superwash’s principal and ex-tourism and aviation minister in the Minnis administration, challenged Philip Davis KC and Pia Glover-Rolle, minister of state for the public service, to repeat their allegations outside the House of Assembly where they will not be protected by the absolute privilege afforded by Parliament.

Calling on both to apologise, and warning that he would sue for defamation should either make the same claims outside Parliament, he questioned why - if the tax cuts on household washing machines and associated spare parts that they cited were so “egregious” and unfair - the Davis administration had done nothing to reform or change the rates despite having just presented its second Budget since taking office.

Stating that both knew they were incorrect, Mr D’Aguilar told this newspaper it was the last Christie administration that reduced the duty rates on residential washing machines and parts from 40 percent to 5 percent in both cases. Pointing out that the tariff rates for the commercial washers used by Superwash remain at 40 percent, he accused the then-PLP government of “secretly” seeking to harm the laundromat chain by making home washing machines less expensive.

Accusing the current administration of seeking to create “political mileage and mischief”, he branded Mrs Glover-Rolle “a neophyte” in politics and demanded that she “do her research” to determine the true facts before asserting that the reduced duties amounted to a “Superwash Stimulus Programme” even though the laundromat chain did not benefit.

Mr Davis, in unveiling the 2023-2024 Budget in the House of Assembly, again rehashed prior accusations that the former Minnis administration had reduced import duty rates on caviar, aircraft parts and “the famous decision to lower duties on washing machines”. Clearly referring to Mr D’Aguilar, he added: “Like we don’t know who owns the biggest laundromat chain in the country? Come on man.”

Pointing out that he had tackled Mr Davis on similar accusations made during the 2021-2022 Budget debate, when both men were in the House of Assembly as Cabinet minister and then-Opposition leader, Mr D’Aguilar blasted: “Both the Prime Minister and the minister of state for the public service are not telling the truth and they know better.

“If the FNM provided a stimulus, as they say, or any tax breaks that they find erroneous or unacceptable, then why don’t they change it? They’ve been in office, this is their second Budget, and they’ve not changed anything. If they think it’s got some benefit [for Superwash] or is unfair then correct it. The reason they don’t correct it is because both of them are being untruthful.”

Mr D’Aguilar said it was the last Christie administration, a PLP government, that reduced the import duty rate on household washing machines under 25 pounds from 40 percent to 5 percent to coincide with VAT’s introduction on New Year’s Day 2015. “They reduced the duty on residential washers down from 40 percent to 5 percent. The PLP did that on January 1, 2015, when they introduced VT and they know that,” he added.

“The FNM did not do that; the PLP did that. Fast forward to May 2017. We won the election on May 10, and I’m appointed to the Cabinet on May 15. The Budget drops ten days later on May 25. Deep down in that Budget was a reduction on the parts for the household washers. The PLP reduced it from 40 percent to 5 percent.

“They reduce the duty on parts. That was already baked into the Budget. I had taken office ten days earlier, and did not know anything about the Budget. They [the Christie administration] engineered first of all the reduction in duty on residential washers. They engineered the reduction in duty from 40 percent down to 5 percent in 2015, and in 2017 they engineered the reduction in the duty on the parts from those washers from 40 percent to 5 percent.

“They did it. They did the whole thing and they know that. They are inclined to make political mileage. They know exactly what they did. The FNM government did not do that. I invite them to go ahead and change it if they think it’s so egregious. Go ahead and change it. When they go and look at the Act, they will see the duty on commercial washers and dryers is still at 40 percent. There’s nothing for them to change.”

Mr D’Aguilar’s position, besides the fact that Superwash and its commercial equipment has not benefited from a duty cut, is that the tax breaks were either introduced or set in motion by the last Christie administration. His argument is that the washing machine parts cut was already included in a 2017-2018 Budget that was largely inherited from that administration, and there was little to no time to adjust it or properly understand what was in it.

“They’re doing this for political mileage, doing this for political mischief,” the Superwash chief said of the latest attacks. “The Prime Minister first, and the minister of state for the public service, she doesn’t have a clue what she’s talking about. She’s not done her research. She’s a neophyte in politics. Tell her to do her research.

“They should apologise. I invite them to go on the House of Assembly steps and say it, and I will sue both of them. The evidence is irrefutable. The PLP reduced the duty on household washers below 25 pounds from 40 percent to 5 percent; commercial washers and dryers are still at 40 percent. Superwash is still paying 40 percent on commercial washers above 25 pounds. If they don’t like it or think something is wrong, I invite them to change it back to 40 percent. 

“It doesn’t bother me. Go right ahead. If they somehow believe the FNM gave Superwash a break, correct it. This is their second Budget back, and if they don’t see fit to correct it... I know they are not telling the truth in their comments. They want to impugn my character, that’s the game they are playing, but I want the public to know it’s a bold faced lie,” Mr D’Aguilar continued.

“They’re just creating political mischief. Fair enough. I can take it. I’m a big boy, and understand what they’re doing. Now this minister of state for the public service has doubled down. The Prime Minister knows exactly what he’s doing; he’s creating political mischief and playing the political game.”