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Gov’t targets $15m egg self-sufficiency

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE GOVERNMENT has not cut food security funding by 50 percent but is instead reallocating financing to a $15m project designed to make The Bahamas self-sufficient in egg production, a Cabinet minister has revealed.

Clay Sweeting, minister of agriculture, marine resources and Family Island Affairs, revealed to Tribune Business that the ‘Golden Yoke’ initiative - which is due to launch today - is aiming to take domestic Bahamian egg production from 700,000 per year to 28m when complete and fully operational.

Suggesting that it would slash

The Bahamas’ estimated $1bn food imports by around 1 percent, he explained that it will involve the provision of “climate smart grow houses” in both New Providence and the Family Islands to help create

• Aims to raise local output from 700k to 28m

• Minister: No 50% cut to food security spend

• Farmers to run initiative; no Gov’t take over

a sustainable domestic agriculture niche.

And, while the Government is seeking to provide the “enabling” environment, Mr Sweeting emphasised that it was not seeking to take over domestic egg production itself. Rather, he added that management and operational responsibility for the units will be “contracted out” to private farmers, who will also oversee

Governor: Income tax allows better targeting

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net

THE Central Bank’s governor says introducing an income tax will make it easier for the Government to focus investment incentives on target industries and direct social assistance to those most in need.

egg sales to food distributors, wholesalers and retailers themselves.

Mr Sweeting spoke after the midyear Budget, tabled in Parliament last week, revealed that the Ministry of Agriculture, Marine Resources and Family Island Affairs’ recurrent Budget allocation of $6.149m for food security - a topic much-discussed by the Davis administration

Village Road auto dealer ‘in a pickle’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

A VILLAGE Road businessman says he is “in a pickle” despite commerce returning with a “bang” as he seeks compensation for lost trade and damage to his property that he alleges was caused by ongoing roadworks.

Brent Fox, Montague Motors’ principal, told Tribune Business he is unsure whether to hold-off on paying this year’s Business

Licence fee amid hopes the Government will deliver on its promise of compensation for the area’s businesses because his company would

effectively be shut down without doing so.

Pointing out that Customs will refuse to clear his vehicle imports without a valid Business Licence, he nevertheless acknowledged that business had “tripled” since the beginning of January when Village Road was paved and access re-opened to consumers at its northern end.

However, Mr Fox told this newspaper that revived trade will not make up for 2022 when monthly sales were off by between 30-70 percent compared to normal as customers avoided the area due to the

New Budget outlay finances 350 jobs

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

A NEWLY-INTRO-

DUCED $5.8m Budget

outlay is financing the temporary employment of 350 persons who have largely been jobless since Hurricane Dorian struck three-and-a-half years ago, it was asserted last night.

The Ministry of Grand Bahama, in a written response to Tribune Business inquiries, justified the extra spending that has produced a 43.6 percent increase in its 2022-2023 Budget allocation on the

basis that it has provided much-needed incomes while also benefiting the wider community and “redevelopment of government assets”.

The $5.797m outlay, which was revealed for the first time in last week’s mid-year Budget but not included in the original version last May, is shown as a non-recurring item since it does not appear in the 2023-2024 and 2024-2025

Budget forecasts. The ministry last night confirmed that the year-long initiative will end when the current

John Rolle, speaking at an Organisation for Responsible Governance (ORG) panel discussion, said Bahamian policymakers must concentrate on making the “difficult decisions” and executing reforms that benefit this nation “voluntarily” as opposed to having them forced upon the country by international bodies.

“One of the things that makes the Government’s efforts so much easier is having a tax system where you can give incentives to businesses in a very targeted way if you need to stimulate investments in particular sectors and activities,” he said.

“If you have the system designed correctly, and I’m speaking, frankly, about how we approach income taxation, it also makes it easier for government to provide the very direct and targeted assistance to families, as well as to be able to exempt at certain income thresholds.”

The Bahamas has long remained resistance to any calls for the imposition of an income tax despite the likes of the International Monetary Fund (IMF) calling for a more “equitable” taxation system. Yet the consumption-driven nature of this nation’s VAT and Customs duty-reliant tax structure means those on

JOHN ROLLE

‘Rubber hits the road’: 14 airports set for PPP

By NEIL HARTNELL Tribune Business Editor

FAMILY Island Chamber presidents yesterday said “the rubber has hit the road” on critical infrastructure upgrades as they hailed the Government’s move to invite private sector bids on 14 airports.

Thomas Sands, Eleuthera’s Chamber of Commerce president, told Tribune Business that upgraded airport facilities were “critical to the success of the island” given that it was attracting increased visitors and foreign direct investment (FDI) from its southern tip all the way north to Harbour Island.

Three Eleuthera airports - North Eleuthera, Rock Sound and Governor’s Harbour - are among those included in the 14 for whom the Government will this Wednesday seek private partners for their redevelopment, upgrade, financing and management via public-private partnership (PPP) agreements with the winning bidders. North Eleuthera and Governor’s Harbour are identified as ‘Tier One’ airports, placing them among the largest and most important Family Island airports, while Rock Sound is one level below in ‘Tier two’. Mr Sands added that Family Island infrastructure, and not just airports, must “be

on par” if the country is to grow its economy beyond Nassau and attract both foreign and Bahamian investors.

Meanwhile, Daphne Degregory-Miaoulis, Abaco’s Chamber of Commerce president, said she was grateful that the Government’s PPP initiative is “putting focus” on three Family Island airports rather than just Leonard M. Thompson International Airport in Marsh Harbour. Also included are both Treasure Cay Airport and Sandy Point International Airport, both of which are included in ‘Tier Three’. Both these facilities are currently only open to private planes and charters.

While Sandy Point’s inclusion may be linked to the recently-approved $800m Kakona project, targeted at a nearby location in south Abaco, Mrs Degregory-Miaoulis’ husband, Nicholas, said reviving Treasure Cay’s airport will “put Abaco back on the map” for stopover visitors including second homeowners.

“If you flew into Marsh Harbour, and Treasure Cay is your final destination as a second homeowner or resident, it’s a 45-minute ride,” Mr Miaoulis said. “Taxi drivers charge $120 to go to Treasure Cay. That’s a deterrent. It’s important for Treasure Cay. We need Treasure Cay to put Abaco

back on the map. That will benefit people in the north, that will benefit people in central and south Abaco.”

Mrs Degregory-Miaoulis argued that, given its importance to the island, Treasure Cay should be a priority for the Government and at least be placed in ‘Tier two’ rather than ‘Tier three’. Her concerns echo those of Molly McIntosh, general manager of The Bluff House Beach Resort and Marina in Green Turtle Cay, who previously told this newspaper that Treasure Cay’s airport needs a new terminal to help attract extra flights.

“It’s not killed us but it’s hurt us, and a little investment would go a long way. There’s no terminal, and Customs and Immigration have to work out of a trailer,” she said then.

“I feel strongly, because I have been here a long time, and know there will be a return on investment. They don’t need to do an airport like Marsh Harbour where they spent millions of dollars; just hand us a terminal that’s clean and we’ll take care of it.”

Mrs Degregory-Miaoulis added: “I was speaking to some importers and Customs agents on the port in north Abaco, which we always thought was an extravagance and not functioning. Apparently that port has been very beneficial to the rebuild of homeowners in Treasure Cay, and it will be the same situation with the airport. Frankly, Treasure Cay needs it. It will be much easier to fly in and out.”

The Ministry of Tourism, Investments and Aviation, in a statement yesterday, confirmed that 14 Family Island airports will be included in the bidding process set to launch on Wednesday, March 1. The Government is seeking private sector investors to redevelop, finance, operate and manage these facilities under 30-year PPP leasehold concession agreements similar to that for Lynden Pindling International Airport (LPIA).

Besides the three Abaco and Eleuthera airports, the other eight include Exuma International Airport (Tier one) as well as Staniel Cay, Black Point Airport and Farmer’s Cay. Bidders have an option to “bundle” or submit a collective offer for all three, which are listed in ‘Tier three’, rather than just one.

The remainder include Long Island International Airport (Tier two); Congo Town Airport (Tier three) in south Andros; and San Salvador International Airport (Tier one). New Bight International Airport is in ‘Tier two’, with the latter two airports located in the Prime Minister’s constituency. The four Exuma airports are based in the constituency of Chester Cooper, deputy prime minister and minister of tourism, with the island

seeing significant investment activity in its cays.

Mr Cooper, who has ministerial responsibility for the PPP initiative, said in a statement: “Investors’ interest in The Bahamas’ airports infrastructural projects is an indication of the global confidence in The Bahamas as a destination, especially after 2022 foreign air arrivals and overall seat capacity soared towards, and in some cases, exceeded the historic prepandemic levels.

“This move affirms the national priority and commitment of the Government to aggressively address the state of The Bahamas’ airports infrastructure to support ongoing economic development.” Dr Kenneth Romer, acting director of aviation, said the latest PPP release builds on the tender issued last year for Grand Bahama International Airport.

“This next phase is considered a continuation and expansion of this initiative designed to drive traffic, improve operational efficiency, grow revenue and enhance the quality of service in the targeted airports,” he added. As with LPIA, the Government will retain ownership of the airports and their real estate while leasing them to the winning private sector bidder.

The PPP process will begin on Wednesday with the release of the qualifications document and Project Information Memorandum (PIM) via the Department of Aviation’s website https:// doabahamas.com. All interested parties are required to access the documents through the website to ensure that they receive all addendum and communication from the Government with respect to this process. Shortlisted parties will be invited to participate in the Request for Proposal (RFP) stage, which is tentatively scheduled to be released in May 2023. “It’s critical to the success of the island,” Mr Sands said of upgrading the Eleuthera airports. “Infrastructure is a problem here. If we are going to grow our country, and grow the development of foreign direct investment as well as domestic investment, the infrastructure has to be on par.

“Right now, it’s not only the airports. We have a lot of challenges with infrastructure across the board,” he added, likely referring to Eleuthera’s much-publicised water and energy woes. “The airports are significant to airlift as well as doing business. I think there’s an international standard that’s expected. There are international requirements, and if we are going to be successful in terms of development here, we must meet those standards.

“In the process, we want to be mindful that we

SEE PAGE B5

BAHAMAS NEEDS TO ‘SUSTAIN’ DOUBLED GDP GROWTH RATE

By YOURI KEMP Tribune Business

THE Bahamas must double its average economic growth rate over “a sustained period” through an “aggressive” pursuit of the right foreign direct investment (FDI) opportunities.

Michael Halkitis, minister for economic affairs, speaking on an Organisation for Responsible Governance (ORG) panel, said it was critical that the Government make progressive reforms in the “attraction

of foreign direct investment” so that The Bahamas can break out of historical gross domestic product (GDP) growth rates that have averaged between 1-2 percent for decades.

“We have made some reform as to the way we deal with risk, with studying, with analysing and approving foreign direct investment, something as simple as more regular meetings so that they can be dealt with, you know,” he said in reference to the Cabinet’s National Economic Council (NEC).

“We’re having meetings on just about a weekly basis to deal with

investments, and really streamlining the process of approval so that we can get to the point where you can get the shovel in the ground as soon as possible.” The Government is also working to transform the Bahamas Investment Authority (BIA) into Invest Bahamas, a more proactive investment promotions agency along the lines of Jamaica’s Jampro, which focused on attracting targeted industries and investors.

“The second thing that’s working, and you’ll see some more activity even before we get to the Budget, is that we have

these investment projects on the various islands like Abaco and Eleuthera and Long Island,” Mr Halkitis said. “The second element of this is we have to have an enhanced investment in our infrastructure, physically your Family Island infrastructure, because that will help drive and help attract investment, and it’ll help drive the return on investment.”

There will be “shovels in the ground” on several Family Island airport projects as part of “bold” infrastructure upgrades. “I think what we’re trying to do is get away from that average, where we’ve been

averaging like one-and-ahalf to 2 percent economic growth,” Mr Halkitis said. “We have to get into the three-plus or 4 percent area over a sustained period. We believe that if we have the investment come in, if we are successful in establishing the linkages........”

He added that the pursuit of foreign direct investment must be “aggressive” because it will enable the Family Islands to enjoy a “boost in GDP” in terms of increased employment along with growth in the housing and tourism markets. Mr Halkitis said: “We have to look at ways to get the capital, and to mobilise

the capital, because the Government can’t continue to borrow to build the airports.”

Developing the publicprivate partnership (PPP) model as the best mechanism for attracting private investors to infrastructuretype projects, he added: “In a very short time, you will begin to see shovels in the ground because we have certain areas in this country that are very vibrant, like North Eluethera and Exuma. If you have the investment in the infrastructure, the economy will take off.”

No political will to deal with SOEs ‘black hole’

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net

A FORMER minister of state for finance has lamented that “there is no political will” to reform loss-making state-owned enterprises (SOEs) and cease throwing taxpayer monies down a “black hole.”

Kwasi Thompson, who held that post during the Minnis administration’s final year, advocated during an Organisation for Responsible Governance (ORG) panel discussions that when it came to SOEs the Government must focus on “privatising them and making them a viable private entity”.

“Or we have to look at reforming the way that those entities do business so that they can raise revenue to be able to meet their expenses,” the east Grand Bahama MP said. “And we have very, very difficult questions like BPL (Bahamas Power & Light) that has legacy debts that have to be taken care of, but also reforms in terms of how do

we take care of the legacy debt but also look at finding the necessary capital to upgrade the infrastructure to begin to shift towards renewable energy.

“I think we have to just start so, for example, we have to look at micro grids in certain Family Islands. The Family Islands are actually ideal for a micro grid programme.” The Government commissioned a $5m solar micro grid installation on Ragged Island in August 2022, seeking to use that as the pilot or prototype for a wider roll-out in the Family Islands.

The Davis administration has since unveiled plans to use some $89m, provided by a combination of the Inter-American Development Bank (IDB) and European Union (EU), to finance such a roll-out with islands in the southern Bahamas - as well as Abaco and east Grand Bahama given their post-Dorian needs - targeted for the first installations.

Mr Thompson said: “We also have to look at the difficult questions of how we deal with Bahamasair. We have to look at the difficult questions of how we

deal with the Water & Sewerage Corporation. The Government, just recently in its mid-term Budget, is seeking to approve additional funding specifically to go towards the water and sewage bills.

“One of the things that we have not looked at, and I know no government wants to do it, is how do we adjust water rates in order for the Water & Sewerage Corporation to earn more revenue so that it can eventually become self-sufficient. I believe a study needs to be

completed in order to see how that can be done, how that can be adjusted. We go through the necessary consultation processes, but those are difficult decisions that eventually we’re going to have to tackle.” The Government’s 20222023 mid-year Budget, unveiled last week, revealed that subsidies to the likes of the Water & Sewerage Corporation are set to increase by a total $35m, or 7.7 percent, compared to the May Budget estimate, reaching just shy of $500m or half a billion dollars at a total $492.24m.

It reaffirmed that, combined with $588.988m in forecast interest payments to service the Government’s debt, the $492.24m in taxpayer subsidies to keep SOEs afloat will total some $1.08bn - more than onethird, or $1 out of every $3, of the Government’s $3bn recurrent spending.

The Water & Sewerage Corporation is to receive a further $20m subsidy in the 2022-2023 mid-year Budget, taking total taxpayer support for the year to $54m to finance both its capital projects and bills due to its reverse osmosis

suppliers. Bahamasair, meanwhile, actually saw its subsidy for the full-year cut, albeit modestly, by $1.3mtaking the full subvention from $32m to $30.7m

Between them, Bahamasair and the Water & Sewerage Corporation will this year cost taxpayers a combined $84.7m. The Public Hospitals Authority (PHA) is the major subsidy consumer, accounting for $232.456m or just over 47 percent of the total, but the likes of the Airport Authority, University of the Bahamas, Nassau Flight Services and the Bahamas Public Parks and Beaches Authority all received additional subsidy allocations in the mid-year Budget.

The Minnis administration, under its first finance minister, K Peter Turnquest, unveiled a target of reducing SOE subsidies by a total $100m over three years. A combination of Hurricane Dorian and COVID delayed that, but the Davis administration’s latest Fiscal Strategy Report pledged to “continue the SOE rationalisation programe”. It gave no details, though, on how it plans to do this, and the

increased SOE subsidies appear to be heading in the wrong direction.

An Inter-American Development Bank (IDB) study of key public expenditure areas, dated February 2022 but only recently released, confirmed what has long been known and Mr Thompson reiterated - that both BPL and the Water & Sewerage Corporation are selling their products at prices below the cost of production, resulting in consistent heavy losses. The latter has not seen a tariff rise since 1999 despite the impact of inflation on its input costs.

“Obviously nobody wants to see the water rate go up. Nobody wants to see electricity costs go up. But if we need to put in place those infrastructure upgrades, we are going to have to at some point be able to raise additional capital,” Mr Thompson said on the ORG panel discussion.

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KWASI THOMPSON

DIGITAL ENTREPRENEURS EXPOSE BOATING SECTOR TO INNOVATIONS

BAHAMIAN digital entrepreneurs used the first-ever Bahamas Charter Yacht Show to showcase their products and services to potential customers in the maritime industry.

Brooke Greene, Kanoo’s sales manager, said the company’s digital products can assist the yachting and industry. She added: “A lot of our businesses are still just using fiat cash, so our goal is to get a lot of them up and running into the digital space and into that digital currency, so they’re not losing money.

“There’s lot of room for growth, especially in our small to medium-sized businesses when they deal with tourists, as well as locals

that are not interested in carrying around cash in this day and age.” Ms Greene said Kanoo’s app offers features such as invoicing and API integration so that merchants can conducting transactions throughout The Bahamas. She said: “The invoicing feature allows merchants to send their clients an invoice through the app or by a static link. They can then enter in the payment funds, which instantly go into that digital wallet. We also have API integration. Our operations team can build the back end of your website and you’re able to accept payments through your website. “Or we can build you a page within the Kanoo app and you can add goods or services that your clients

Village Road auto dealer ‘in a pickle’

can just go in and shop. These features can definitely make things easier for local business and we are working on turning the whole tourist experience turning into a digital experience.”

Denise Johnson, chief executive and president of Slipe Hospitality, a virtual marketplace for mariners, says the maritime industry should be as digitally accessible as other forms of travel. She said: “We have apps that cover most areas of travel so you can book your flights, cars and hotels online. I don’t see maritime travel any differently; we should be able to access that digitally as well.”

Slipe, a subsidiary of Hospitality Group, is attempting to digitise maritime travel through the

FROM PAGE B1

inconvenience created by the ongoing construction. And he is now locked in a fight over damage to his boundary wall that he alleges was caused by the roadworks. He produced photos showing how his chain-link fence and wooden post have “caved in”, which allegedly occurred on a night when Village Road was closed to non-construction traffic, and is seeking repairs and/or further compensation from the Ministry of Works and its contractor.

However, Emile Knowles, principal of Knowles Construction, the project’s main contractor, told Tribune Business there was no evidence that his vehicles or anyone connected to the project had damaged Mr Fox’s boundary wall. He added that contractors were typically blamed for such incidents, pointing to the Ministry of Works request that he pay for damage to a traffic light at the Village Road/Wulff Road junction, only for video evidence to show it was not his firm’s fault.

Disclosing that construction crews had laid “20 miles of conduits and pipes on one mile of road” during the project, Mr Knowles said he had hoped to complete all paving this weekend past, leaving only the likes

services provided by its platform.

Ms Johnson explained: “Hospitality Group is a hospitality IT and marketing firm that develops software and promotes MSMEs [micro, small and mediumsized enterprises] in the tourism industry. Slipe is an online marketplace for everything marinas and boating.

“Similar to Expedia, persons would come on board and book a marina slip and any other services that they may need such as provisioning, housekeeping, maintenance and different services. Anyone who wants to market to the industry can come on our platform and sell their service or product to the user base, which will be boaters, boat owners, etc. “

of signage and road striping outstanding

Meanwhile, Michael Fields, president of Four Walls Squash and Social Club, who has been among the leading Village Road business figures calling on the Government to provide an economic relief and stimulus package, yesterday said they will “continue to apply the pressure” although their meetings with the Davis administration have signalled it “definitely wants to do something” to assist.

Mr Fox, meanwhile, said he had been “complaining for six months about the damage done to my wall” and supplying the Ministry of Works with photographic evidence to prove his case. “It just seems like when it comes to me they ain’t checking,” he told Tribune Business. “I’ve lost a lot of money because of the construction, and fighting this is at a different level.

“The Ministry of Works promised they would repair my wall. I told them I wanted to restart the business. I wanted them to give my confirmation that they would do it by the end of the month. But I spoke to Emile Knowles and he said they didn’t do it. He’s telling me: How do I know it’s their equipment that did that?

Slipe, which is still in the testing phase, offers both business-to-business (B2B) and business-to-consumer (B2C) transactions. It is currently focusing on networking with other vendors prior to its planned launch in July.

Ms Johnson said: “We’re out here today to network with other vendors. Our services are B2B and B2C, and right now we’re more focused on the B2B, getting vendors to come on and sign up so that when we start promoting the app and the platform to the users, there will already be a database of services and products online.

“We have a soft launch going now, taking feedback from users. They let us know how user friendly the website is, whether it

installed at a depth that was too low to properly connect with his own. Mr Knowles, though, denied to this newspaper that the roadworks or his construction equipment were responsible for the damage to Montague Motors’ fence.

“I personally don’t feel we damaged Mr Fox’s fence,” he said. “I believe his fence was damaged by a possible intruder. We had no reason to have a vehicle at that elevation or in close proximity to his fence. He initially said it was one type of vehicle, and then said it was a grader. The grader paves along his fence, but there was nothing sticking out to catch his fence.

“We’ve taken responsibility to fix every damage made, and those that we’ve done that have not been fixed, we will fix. We’re not in business to fix private property. A few weeks ago the Ministry of Works accused us of damaging traffic lights at the Wulff Road intersection with our lay down yard.

meets their needs, and just give us feedback to make it better so that in July users will have a fully functional platform.”

Ms Johnson asserted that Slipe is focused on partnering with Family Island businesses to promote the new app prior to launching it internationally. She added: “We are looking to partner with businesses on the Out Islands as well. We are focusing on the Bahamas first, then we will then go regional and then global.”

The Bahamas Charter Yacht Show was held via a partnership between the International Yacht Brokers, Association of Bahamas Marinas (ABM) and the Ministry of Tourism.

That goes against 20 years of business. They finished paving in the first week of January, and bang, we’re back in business, but nothing will pay for last year. If I didn’t own the property I’d be out of business.

“They’re [the Government] talking about compensation but are dragging their feet on it. I found out they had a meeting with some of the people on Village Road but I wasn’t invited. I went down to the Ministry of Finance and said: ‘I’ve lost a ton of money and here are the figures’. They said we’re addressing that and going to do this. They said the minister has decided to do some compensation and do a launch on Village Road for all businesses.”

The Tribune wants to hear from people who are making news in their neighbourhoods. Perhaps you are raising funds for a good cause, campaigning for improvements in the area or have won an award. If so, call us on 322-1986 and share your story.

“The road was closed to vehicular traffic that night. There was a big dump truck parked up against my wall. It could only have been their equipment, but he says it would not have hit my post or fence that high. They’re getting ready to finish up paving and my wall has caved in on one side and the fence is all pushed down to where people can jump over it. As far as the damage to my wall, I feel that if I don’t bring it to light they’re just going to ignore me like with the sewer pipe.”

Tribune Business previously reported Mr Fox’s complaint that the new Water & Sewerage Corporation sewer line was

“Fortunately, the owner of the Esso on the Run opposite played the tape back and that showed the lights were damaged by a tyre that flew off a passing car and broke the light. The ministry had wanted to charge me for the damage and fixing the light.”

Mr Fox said he was now looking at repairing the fence himself “on top of all the money being lost and sales being reduced” due to the months last year when customers simply could not access Montague Motors due to the roadworks. “I can show where sales dropped off between 30 percent to 70 percent depending on the month,” he told Tribune Business

“Since the paving, business has gone up. It’s tripled since the beginning of January. January was traditionally one of our slowest months and has turned into one of our busiest months.

Suggesting that he was running out of time for the Government to provide clarity, Mr Fox said: “My Business Licence is due. My lawyer said to hold back on it but I can’t import cars if I don’t have it because Customs require a Business Licence. I’m getting no feedback at all from the Ministry of Finance. They say they’re going to compensate me and will let me know.

“Do I pay the Business Licence for last year, VAT? What do I do? I’m in a pickle.” Mr Fields yesterday told this newspaper that while “nothing concrete” had been presented by the Government, there were “ongoing discussions” and a further meeting had been held with Simon Wilson, the Ministry of Finance’s financial secretary, and his team following the original encounter with Michael Halkitis, minister of economic affairs.

“They’re certainly going to do something,” Mr Fields said of the Government. “We’ll continue to apply the pressure. They definitely want to do something, but we don’t know what it is and when.”

Let’s start digging

By CHRIS ILLING

Worries about inflation and interest rates flared up again and triggered a price slide on the international stock markets during Friday last week.

In the US, the PCE price index for January, which is based on consumer spending, was significantly higher than expected.

It is now expected that the Federal Reserve will continue to act decisively with several interest rate hikes against the still-high inflation. The US indices were on the way to recording their biggest weekly loss since the beginning of the year. Investors are pulling out of technology companies, whose stocks are particularly dependent on monetary policy. Higher interest rates should devalue the future profits of these high-growth companies.

On the other hand, the commodity companies expect brilliant business

for 2023. Everyone knows that raw materials are getting scarce. But the world does not seem to understand it. For example, for the planned expansion of electric mobility alone, the world would need twice as much copper by 2030 as is currently mined in one year.

The prices for industrial metals rose by almost 10 percent in January, and analysts are raising their targets for copper and other commodities higher. Goldman Sachs expects the S&P GSCI (Goldman Sachs Commodity Index) Total Return commodity index to gain more than 40 percent this year because there is a lack of reserve capacity everywhere. Commodities were already the asset class with the best performance in the two previous years: In 2021, the index rose by

‘Rubber hits the road’: 14 airports set for PPP

FROM PAGE B2

want to engage Bahamian investors and domestic participants in these opportunities. There’s a lot of investment throughout Eleuthera. There’s a significant amount in the south, a significant amount that extends into the north. There’s a significant amount of foreign direct investment taking place that needs to be serviced,” Mr Sands added. “I think the rubber has hit the road in terms of our need.”

Enhancing the Family Island airports will provide for better airlift and transport connectivity, enable these facilities to accommodate increased flights and visitor numbers, and offer an improved first and last impression of The Bahamas for tourists.

Mrs Degregory-Miaoulis added: “I think it’s very important that they upgrade Marsh Harbour airport, which has had issues since inception. I’m happy to say

DAPHNE DEGREGORY-MIAOULIS

they finally appear to be maintaining it better than they have in the past three years. It’s very important. We’re a boating island, but are as much an air arrivals tourist market.

“I’m happy they’re putting the focus on the three airports in Abaco, not just the one. Abaco is a long island. It’s 45 minutes at least from Marsh Harbour to Sandy Point, and the better part of about an hour to 45 minutes to Treasure Cay.”

a whopping 42 percent, and in 2022, it gained almost a quarter again.

A reason for this bullish outlook is that the real expenses for the development of new mines and production sources have been too low in recent years. Radical COVID lockdowns in China; inflation and sharply rising interest rates; and Russia’s attack on Ukraine were the signs that suddenly pointed to a severe recession. And this under-investment could come to haunt us now. At the end of January, the International Monetary Fund (IMF) slightly raised its forecast for the global economy. The bonus is that China abruptly ended its

repressive zero-COVID policy. The International Energy Agency (IEA) says the world economy is changing over “from a fuel-intensive to a mineral-intensive energy system”. The green conversion guarantees that the demand for some irreplaceable raw materials will continue to increase disproportionately for years to come. And the Europeans (Green Deal)

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and Americans (Inflation Reduction Act) are each pumping billions into the markets. Materials such as lithium, cobalt or rare earth metals, previously only considered by the Chinese, are now listed as “critical commodities”. At the beginning of March, the European Union (EU) Commission will present its ‘Critical Raw Materials Act’, which is intended to secure the supply chains.

Factors that can slow the race for new raw materials include the lack of skilled workers, missing infrastructure, political pressure and the demands from the producing countries to get a bigger share of the profits. The savvy investor will keep monitoring the balance between new investments in the mining sector and the growing demand for commodities of all sorts worldwide.

ACCURAD IMAGING CONSULTANTS SEEKING

GOV’T TARGETS $15M

EGG SELF-SUFFICIENCY

FROM PAGE B1

as being among its key priorities - has been cut by more than 50 percent, shrinking by $3.098m to some $3.051m.

These monies appear to have been reallocated to the Bahamas Agricultural and Industrial Corporation (BAIC), which has seen its subsidy expanded by $2.081m to $7.081m, and the Bahamas Agricultural and Marine Science Institute (BAMSI), whose taxpayer support has been expanded by $1.15m to $7.626m.

It was unclear from the raw numbers whether responsibility for food security is being partially transferred these two agencies, but Mr Sweeting said this was the case - at least with BAIC - with which his ministry is teaming up on the ‘Golden Yoke’ initiative.

“Some of the funding we are utilising for the Golden Yoke project, which is in partnership with BAIC,” he told this newspaper. “It will probably be that allocation. It’s going to be a $15m egg project which will help to sustain The Bahamas at 100 percent egg production by the time that is completed. Some of the money we are utilising will be to assist that.

“None of our budget for funding food security has been reduced. The Government, especially the Prime Minister are very serious about food security.... We’re starting this project initially with funding from this Budget, and it will continue with the next Budget.”

Asserting that his ministry and associated agencies have been working intensely on developing the Government’s approach to food security, Mr Sweeting added: “Right now we produce 700,000 eggs country-wide. This project, when it’s completed, will provide over 28m eggs per year in-country.

“We would start with seven grow houses in New Providence, and expand to the Family Islands. Those in New Providence will be

climate smart units, and will be contracted out to the farmers to run them. The Government is not going to run them.

“We are providing the environment for farmers to be successful. It will be similar to other countries where they are contracted out to farmers to manage the facility, and they sell the eggs to distributors in-country. At the end of the project, we should reduce imports by 1 percent.”

Mr Sweeting also disclosed that the Government has provided financing to BAIC for the acquisition of a new animal feed mill. “We ordered a new feed mill, and sent the funding to BAIC. They have charge of that. They have carriage of that,” he explained.

The minister declined to provide further details on the Golden Yoke project, such as the number of jobs it will likely create, number of islands that will be involved and the roll-out and completion timelines, saying he did not want to cut across today’s launch event.

The egg production initiative is part of efforts by the Ministry of Agriculture, Marine Resources and Family Island Affairs, and its associated agencies such as BAIC and BAMSI, to focus on so-called low hanging fruit niches and drive hard in those areas where it is believed domestic producers can grow to help The Bahamas become self-sufficient in that produce.

Food security has assumed increasing importance in the COVID-19 pandemic’s aftermath, with the resultant lockdowns and border closures that occurred in 2020 and parts of 2021 raising concerns about The Bahamas’ ability to feed itself when it has become so dependent on imports.

These fears were worsened by the food price inflation experienced postCOVID, with costs driven upwards by a combination of supply chain bottlenecks,

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worldwide production shortages and Russia’s invasion of Ukraine, which impacted vital commodities such as wheat/grain and sunflowers used for cooking oil.

However, not all are convinced that the Golden Yoke initiative does not represent an attempt by the Government to take over domestic egg production. Caron Shepherd, the Bahamas Agro Entrepreneurs Group’s president, told Tribune Business yesterday that she remains sceptical until full details on the project are unveiled.

Questioning why the Government simply does not invest in existing egg producers, she said: “The gist of what I’m getting is that the Government is getting into egg production and wants to hire the farmers to work for them. That is my understanding of what is being created, rather than making the farmers owners and operators of their own businesses, until I see something that nullifies that.

“All the farmers that we have in egg production, why can’t they invest in them and give them the opportunity to increase their farms, increase their production and produce more eggs. Why are we reinventing the wheel? Why not give them the financial backing to do what they are doing? My thing about is that we have egg producers already. Why not assist them with financial backing to be able to produce more eggs?

“The Government should be in place to facilitate the increased production of eggs, and put in policies that ensure the farmers have the wherewithal to do that, not getting into production themselves,” Ms Shepherd continued. “They now have BAMSI growing lettuce, selling lettuce, undercutting the farmers. They are selling at $1 and undercutting the farmers out there. Tell me why. Why is the Government competing with the farmers?”

She added that BAIC’s executive chairman, Leroy Major, had not responded to her inquiries on the Golden Yoke initiative. “My thing about it is: Give me the understanding of what is going on,” Ms Shepherd said. “Nobody wants to say what is going on. Whenever I see that like that, it means the Government is behind what is going on. I’ll be there today to understand what is going on.”

New Budget outlay finances 350 jobs

fiscal year closes on June 30, 2023.

“It is the Beautiful Grand Bahama programme that has employed over 350 individuals, many of whom have been unemployed since Hurricane Dorian, who work on the redevelopment of government assets and community enhancement initiatives until June 30, 2023,” the Ministry of Grand Bahama said.

The inclusion of the additional $5.797m accounts for virtually all the mid-year increase in the Ministry of Grand Bahama’s budget, which has expanded from an initial $13.363m to $19.188m for the 2022-2023 fiscal year. And it is not the only “beautification” related spending increase to suddenly make an appearance in the Government’s financial plans for the year.

For the Department of Environmental Health Services (DEHS) budget is also increasing by $4.144m in the mid-year Budget when compared to May. Some $3.463m, or 84 percent, of this hike relates to a newly-appeared line item for “National Beautification Programme”, which again does not recur

in subsequent forecasts for upcoming fiscal years.

Despite making inquiries, Tribune Business was last night unable to confirm exactly what this spending increase relates to or if there is any connections to the 50th Independence anniversary celebrations. Between the DEHS and Ministry of Grand Bahama, a combined $9.26m in previously unbudgeted spending is being allocated to “beautification”.

Another area where there was a significant mid-year Budget increase was the Department of Emergency Preparedness and Response, whose total spending allocation has more than doubledincreasing by 143 percent to $15.976m from $6.578m.

deal with Hurricane Dorian debris and their contents.

“There’s two sites, one in Treasure Cay and the other in Spring City, but we also have a dump up on Elbow Cay which, during Dorian, was private property but the owner allowed us to store debris there,” Mr Laroda said. “Most of that [extra spending] is related to that. I said when we did the Budget that it may go up because there are some other areas coming online.

Hurricane Dorian site management and clean-up, represent some of the larger spending increases unveiled in the mid-year Budget besides allocations such as the extra $20m to the Water & Sewerage Corporation to pay its bills. The budget for the Bahamas Games has also more than doubled, jumping from $1.5m to $3.5m - an increase of some $2m.

or recurrent spending by $76.5m compared to the original May Budget forecast. It is aiming to finance through the combination of a $12.1m decline in capital spending and a forecast $53m revenue increase compared to initial Budget projections, thus containing the increase in the deficit to $11.4m.

While the Government has reduced its estimated wages and salary bill by $19.827m, or 2.7 percent, to $711.876m compared to the originally estimated $731.703m, this number is still forecast to grow again and keep on rising to $745.177m in the 2023-2034 fiscal year and $759.987m in 2024-2025.

That represents a $9.398m increase, of which some $8.692m or 92.5 percent relates to “debris management”.

“We provided so much of an allowance for home repairs, and towards the building of the centre. We got a grant from the Indian government, and are building that community centre and hurricane shelter in Marsh Harbour. It will be spent, too, on those areas. The work continues. There’s a lot of stuff going on over there.”

Myles

Laroda, minister of state in the Prime Minister’s Office who has responsibility for the department, yesterday said he warned when the original Budget was presented that its needs may sharply increase as he confirmed the hike related to costs involved in managing the landfills created to

The “beautification” increases, and increased allocation for ongoing

The Ministry of Public Service has enjoyed the largest mid-year Budget reallocation of $25.511m. Some $15.8m, or over 60 percent, of this sum is to cover office rental costs and National Insurance Board (NIB) lease agreements, with a further $6.18m dedicated to pension payments to public officials. These will now increase to over $130m for the year, with another $2m rise relating to “consultancy services”.

The Davis administration is increasing its fixed-cost

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THE WEATHER REPORT

UK and EU leaders to meet amid hope of Brexit trade spat fix

By JILL LAWLESS Associated Press

BRITISH Prime Minister Rishi Sunak and European Union leader Ursula von der Leyen are set to hold face-to-face talks, with expectations high they will seal a deal to resolve a thorny post-Brexit trade dispute.

That would mark a breakthrough after months of bitter wrangling that has soured U.K.-EU relations, sparked the collapse of the Belfast-based regional government and and threatened to set back Northern Ireland’s decades-old peace process.

In a joint statement on Sunday the U.K. and the EU said European Commission President von der Leyen will travel to Britain on Monday so the leaders can work towards “shared, practical solutions for the range of complex challenges around the Protocol on Ireland and Northern Ireland.”

U.K. Deputy Prime Minister Dominic Raab said earlier Sunday that the two sides were on the “cusp” of striking an agreement over

trade rules known as the Northern Ireland Protocol.

Northern Ireland is the only part of the U.K. that shares a border with an EU member, the Republic of Ireland. When the U.K. left the bloc in 2020, the two sides agreed to keep the Irish border free of customs posts and other checks because an open border is a key pillar of Northern Ireland’s peace process. Instead there are checks on some goods entering Northern Ireland from the rest of the U.K. That angered British unionist politicians in Belfast, who say the new trade border in the Irish Sea undermines Northern Ireland’s place in the United Kingdom.

The Democratic Unionist Party collapsed Northern Ireland’s Protestant-Catholic power-sharing government a year ago in protest and has refused to return until the rules are scrapped or substantially rewritten.

Relations between the U.K. and the EU, severely tested during years of Brexit wrangling, chilled still further amid disputes over the Northern Ireland Protocol.