Minister Gumbs: Fuel levy funds collected for sports have not been traced to spending

GREAT BAY--Minister of Education, Culture, Youth and Sport Melissa Gumbs told Parliament on Wednesday that while a fuel levy intended to support sports development was previously collected, the Ministry has not yet been able to trace how those funds were spent or where they ultimately ended up.

Responding during a Question Hour requested by MP Dimar Labega, Minister Gumbs said the Ministry is now seeking documentation from the Customs Department to verify the full history of the levy, including whether it was applied at the point of import, how much was collected and where the funds were placed.

“In order to establish the facts with certainty, the Ministry has now requested from the Customs Department the fuel import invoices covering the possible relevant period,” Gumbs told Parliament. She explained that the invoices should make it possible to confirm whether the levy was charged through Customs documentation and allow the Ministry to provide Parliament with a substantiated account.

The levy, commonly referred to as the one-cent fuel levy, was intended to create a dedicated stream of financing for sports programs and athletes, rather than having sports development depend only on the national budget or one-time grants. The proposal was revived in 2019 and approved by the Council of Ministers in May 2022, with the understanding that the funds would be earmarked directly for sports development.

Minister Gumbs confirmed that it remains the intention of her Ministry to move forward with the establishment of a dedicated sports fund, financed in part through a levy on fuel imports.

“St. Maarten’s athletes and sports infrastructure deserve a sustainable, structural and legally grounded source of financing,” she said, adding that the goal is to move beyond the limitations of the national budget and provide consistent long-term investment in sports.

According to Gumbs, a draft Sports Fund Ordinance is now being developed. The ordinance will establish the legal framework for a dedicated fund as a distinct financial instrument under public law. It will cover the creation of the fund, financing sources, management structure, governance, eligibility criteria, allocation procedures, reporting requirements and accountability mechanisms.

The Minister said the new framework is being designed to avoid weaknesses that have affected other public financing structures in the past, including limited operational independence, exposure to political shifts and insufficient separation between policy decisions and financial execution.

Gumbs explained that the Ministry initially considered a model similar to the Crime Fund, but after review concluded that a stronger structure was needed. Under the model now being finalized, the Ministry would retain its policy role by setting strategic priorities and annual funding directions based on input from the Department of Sports. The day-to-day financial and operational management of the fund would be handled by an independent fund administrator, subject to fiduciary obligations, professional standards, auditing and compliance requirements.

“The redesign took time, but it was time well spent,” Gumbs said.

She also explained that the delay in moving from concept to legislation was partly due to the need to carefully assess the scope of the levy. While gasoline was the starting point, expanding the levy to diesel would raise broader economic considerations, since diesel is widely used for commercial and industrial purposes. The Minister said the government did not want to legislate hastily and later create unintended financial harm for residents or businesses.

On what Parliament can do to help, Gumbs said no specific action is required at this stage. The legislation is being finalized and will go through the statutory advisory process before being submitted to Parliament for handling. She asked that Parliament consider the proposal promptly once it is presented.

In response to MP Viren Kotai, who asked for more clarity on the timeline, Gumbs said the first draft of the ordinance is expected to be before the Ministry within one month. She noted that the drafters were also asked to examine calculations beyond the original one-cent model, including possible three-cent and five-cent scenarios. However, she stressed that no decision has been taken to move beyond the one-cent levy approved by the previous administration.

MP Egbert Doran raised the possibility of expanding sports funding discussions to include contributions from lotteries and casinos, referencing Aruba legislation as a possible model. Gumbs said she is open to that discussion.

MP Veronica Jansen-Webster asked about the volume of subsidy requests submitted to the Ministry for sports and related areas. Gumbs said no funds have been issued so far and noted that the Ministry continues to face financial challenges in responding to individual and incidental subsidy requests.

MP Sjamira Roseburg also asked whether the Ministry has explored possible funding opportunities through the Kingdom, given the new Dutch State Secretary’s background in sports, and whether tax incentives could be considered for businesses that support youth, academics and sports. Gumbs said there had been some brief discussion with the State Secretary during his official visit, but she had not been informed of specific sports funding available through that channel. On tax incentives, she said the Ministry has not had that discussion with the Minister of Finance, but acknowledged that athletes and foundations have in some cases been able to access private contributions directly.

MP La Vega, who requested the Question Hour, thanked the Minister for the answers and said he looked forward to seeing the initiative move forward.

Parliament Chair Sarah Wescot-Williams closed the meeting by encouraging Members of Parliament to continue monitoring the issue, individually or collectively, as the legislation progresses.

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