03012019 BUSINESS

business@tribunemedia.net

FRIDAY, MARCH 1, 2019

$4.15 CIBC enjoys ‘best result’ for 11 years

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net CIBC FirstCaribbean’s Bahamian unit enjoyed its “best performance for 11 years” after 2018 profits rose nearly 11 percent due to improved loan book performance and rising US rates.

Marie Rodland-Allen, the BISX-listed bank’s managing director, told shareholders in its just-published annual report that it managed to shrug off ongoing economic challenge to deliver an $8.3m year-overyear increase in net income.

“Notwithstanding a challenging economic and operating climate, the bank had a successful year with reported net income of $85m compared to $77m in the prior year,” she wrote.

“Our results were largely impacted by earnings from performing loans and rising US rates.

“We are pleased to report that this has been our best performance since 2007.

The bank has preserved strong capital levels, with both Tier I and total capital ratios of 25 percent, which are both well above the minimum regulatory requirements.”

CIBC FirstCaribbean, which is more than 95 percent owned by its Barbados parent, paid out some $105m in dividends during its 2018 financial year although only around $5m will have gone to Bahamian investors. The bank remains the largest stock on BISX by market capitalisation.

Net interest income rose by $9.2m or seven percent for the year to end-October 2018, driven by both the rising US interest rates and improved loan book outcomes, together with “increased cash placement volumes”.

SEE PAGE 4

THE government was yesterday urged to “quantify” its VAT shortfall, a top accountant hailing its admission of a near $200m total revenue undershoot as “very bold and courageous”.

Gowon Bowe, the Bahamas Institute of Chartered Accountants (BICA) president, told Tribune Business that the government needed to match what it had done for the gaming taxes and Revenue Enhancement Unit collections by providing figures to show how much VAT is likely to come in under 2018-2019 budget projections.

KP Turnquest, the deputy prime minister, in unveiling the mid-year budget estimated that web shop tax collections would come in some $18m below projections for the full year, while the Revenue Enhancement Unit’s delayed creation had placed $80m worth of revenues in jeopardy.

No such statistics had been forthcoming for the VAT undershoot, though, and Mr Bowe also called on the government to clarify whether the likely missed target had resulted from businesses and consumers cutting back on spending in response to the rate hike to 12 percent.

Both Mr Turnquest and Marlon Johnson, the Ministry of Finance’s acting

$4.19

DPM: We’ll ‘scale back’ spending more if needed

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

T

HE government will “scale back” spending for the 20182019 fiscal year if revenue further underperforms, it was revealed yesterday, amid a $21.7m year-over-year fall in trade taxes.

KP Turnquest, deputy prime minister, yesterday told Tribune Business that the combined decline in customs duties and excise taxes was now of “more interest” to the government than the factors that had driven a projected $185m revenue shortfall for the current fiscal year.

KP TURNQUEST

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

FOCOL Holdings chairman yesterday revealed that its share buyback was launched because it “can’t believe” investors place so little value on a stock that consistently delivers healthy profits.

Sir Franklyn Wilson, pictured, told Tribune Business it was “not rationale” for the BISX-listed petroleum products supplier’s shares to be trading in the “low $3” per share range given strong fundamentals that include a 7.7 percent profits rise for the quarter to end-October 2018.

Speaking out after FOCOL Holdings confirmed it had launched a short-term share buyback lasting just three months, Sir Franklyn

‘VERY COURAGEOUS’ TO ADMIT $2OOM UNDERSHOOT

GOWON BOWE financial secretary, have consistently said VAT revenues are behind projections for the 2018-2019 fiscal year because of the transition periods granted to the hotel and construction industries so that existing reservations and contracts could be honoured at the lower 7.5 percent rate.

They believe the fill impact of the budget reforms, including the VAT rate increase and Revenue Enhancement Unit’s establishment, will now be felt in the upcoming 2019-2020 fiscal year - meaning that the effects are delayed rather than they will not happen.

“I do commend them for saying they will miss the target,” Mr Bowe told Tribune Business. “I’d like to see strong rationalisation for why they’re missing the target.

SEE PAGE 4

contrasted the company’s share price with that of Commonwealth Bank - which also recently underwent a stock split.

Pointing out that both BISX-listed entities had paid out 12 cents per share

By NATARIO MCKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net

SEE PAGE 3

SEE PAGE 5

Revenue Enhancement Unit (REU) were on Wednesday identified as the key factors behind the projected $185m revenue shortfall for the 12 months to end-June 2019.

Mr Turnquest, though, said the government was prepared to further cut spending to align with income if this became necessary. He emphasised his determination to avoid the overly-optimistic and

SEE PAGE 4

• Focol launches share buyback • But only three-month programme in dividends to their respective shareholders in 2018, he said FOCOL Holdings’ stock price was languishing more than $1 below Commonwealth Bank’s.

“We did go into the market the other day to support the share price,” Sir Franklyn said. “We don’t quite understand why our share price is trading at the level it is. If you act rationally there’s an opportunity to do better.

“We went into the market at $3.24 to support it. We were trading consistently in the high $3-plus level, and in July 2018 were at $3.75 per share, but now we’re trading at $3.01. We can’t believe, and don’t quite understand, why anyone

Taxi drivers: We won’t be ignored over cruise port

would sell FOCOL shares at $3.01 except that they’re desperate for money.

Sir Franklyn confirmed that the share buyback was launched to signal to the market that FOCOL Holdings believes its stock is seriously undervalued, and to support the share price by taking out small retail investors desperate to sell at any price to obtain liquid cash.

The move is also designed to boost shareholder value, and reward those investors taking a long-tern view of FOCOL’s prospects, as the company plans to cancel all the shares it purchases.

This will enhance earnings per share (EPS) and

• Govt to probe $22m trade tax fall • Overly-aggressive revenues at end • Will not ‘pile one disaster on another’ He revealed that the Minnis administration plans to probe why trade-related taxes declined year-overyear for the six months to end-December, suggesting that it likely reflected the completion of construction activity on major foreign direct investment (FDI) projects.

The VAT-related transition periods offered to the hotel and construction industries; the web shop taxation settlement; and the delay in setting up the

$4.24

TAXI drivers yesterday warned they will not be “disenfranchised” by the cruise port’s redevelopment, their union president pledging the sector will be “at the forefront of negotiations”.

Wesley Ferguson, the Bahamas Taxicab Union’s (BTU) president, told Tribune Business: “I was very adamant in my address to the prime minister that, whoever they choose, we fully intend to be at the forefront of negotiations.

“One thing we would have to make sure of is that we are in an advantageous position to be in the forefront of the new system at the dock. We want to secure our future instead of someone else determining what’s good for us. We’re looking for a good deal so we aren’t disenfranchised.”

Mr Ferguson said his group had not yet met with Global Ports Holding, the preferred bidder selected by the government, but added: “We want to know what their intentions are and what their plans are for taxi divers going forward.”

He said the BTU recently had an “intense” meeting with tourism officials over the roll-out of a new callup system at Prince George Wharf. “In two weeks we will roll-out a brand new call-up system for taxi drivers at the dock,” Mr Ferguson said.

“It’s an alphabetical system designed to reduce the occurrences of persons sleeping on the dock. The way it will work is, if your last name begins with B, for instance, you would be the first one out for for the day.

When B is exhausted we then go to C and D Drivers will have foreknowledge of who is first out.”

FOCOL chair ‘can’t believe’ stock so low

‘Quantify’ VAT shortfall, BICA chief urges govt

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

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PAGE 2, Friday, March 1, 2019

THE TRIBUNE

BAMSI moves to cut food wastage by 40% THE Bahamas Agriculture and Marine Science Institute (BAMSI) is aiming to reduce food spoilage and waste by 40 percent through its hiring of a refrigerated transport container.

Trevor MacKenzie, BAMSI’s marketing manager and head of its distribution centre, said the effects of the refrigeration container will be felt by consumers almost immediately.

“Tomatoes that are handled properly in the post-harvest environment, you get extra shelf life out of them. The Bahamian consumer will probably get two to three weeks in the fridge and still have a firm product,” he said. “Had it been in the heat it would have softened within days instead of weeks.”

The refrigerated transport container is designed to overhaul BAMSI’s postharvesting marketing protocols, adding value and a longer shelf life for its fresh produce.

McKallan Stubbs, BAMSI’s farm administrator, said the use of the chilling system - a 40-foot refrigeration container with temperature control that can be transported from the field directly to the boat for shipping to New Providence - is part of the Institute’s efforts to introduce industry best practices to its operations.

“Whenever you are dealing with produce, everything is about preparation, refrigerate properly, handle properly, chilling properly,” Mr Stubbs said,

REFRIGERATED container arriving to the BAMSI Centre in Nassau. adding: “This should save BAMSI a lot of money and improve the quality of produce that hits the market.”

BAMSI, which operates a research and tutorial farm in North Andros, ships produce on a weekly basis to New Providence and other islands. It has has committed to a new business model that will increase efficiencies, streamline operations, reduce wastage and generate growth.

The new transport system is expected to increase food security and reduce food

imports. Mr Stubbs said: “What happened before is we would harvest the produce, and it would sit in the sun till it was packaged for transport.

“It would be placed in coolers for transport to the boat. Once it got to the boat it might sit at the dock for a moment before being loaded in the refrigeration section. Once in Nassau, it was offloaded and back in the sun/heat again until it reached our distribution centre. This happened regardless of the weather,

in sunshine or rain, so by the time it arrived at the DC there was a lot of damage, spoilage.

“In terms of loss, this refrigeration system could save up to 30 to 40 percent, and in some cases even higher. This is BAMSI’s effort to introduce best practices and improve internal operations. Whenever you are dealing with produce everything is about preparation. Produce needs to be refrigerated properly, handled properly and chilled at the right temperature, and all of that requires pre-planning and preparedness.”

BAMSI is expected to introduce a second refrigeration system to ensure that all necessary produce can be placed in a chilling facility and transported at the appropriate temperature.

THE TRIBUNE

Friday, March 1, 2019, PAGE 3

DPM blasts the opposition’s ‘reckless disregard for truth’

By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net THE deputy prime minister yesterday hit back at his opposition counterpart’s assertion that the government’s fiscal policies are being dictated by the International Monetary Fund (IMF).

K Peter Turnquest accused Chester Cooper, the PLP deputy leader, of having a “reckless disregard for the truth” following the latter’s criticism of Wednesday’s mid-year budget announcement.

Mr Cooper had predicted an “even greater revenue shortfall” and missed fiscal deficit targets for 2018-2019, arguing that the mid-year budget “did nothing to inspire confidence”. He also accused the Minnis administration of managing The Bahamas for the IMF and

CHESTER COOPER rating agencies rather than the Bahamian people.

Blasting back, Mr Turnquest charged that the former Christie administration had lead the country into “junk” bond status with four consecutive downgrades, and branded Mr Cooper’s IMF assertion as “a lie”.

“It is a complete and utter falsehood,” the deputy prime minister said. “Neither the IMF nor any other

international body has ever dictated to, or directed, this government on any fiscal matter.

“The fiscal targets and related policies that we have established have been decided upon by the government alone, with no demands placed on the government by any external party – domestic or international.

“We have established a medium-term fiscal

strategy, and presented it to the Bahamian people – something that is unprecedented in The Bahamas.

We have explained why this policy and related strategies are good for the medium and long-term social and economic viability of The Bahamas.”

Mr Turnquest continued: “We understand that Mr Cooper and Mr [Philip] Davis want people to forget that their side was the author of four consecutive downgrades. We know they do not want people to remember that they ran up the largest accumulated deficits in any single term, despite benefiting from $1bn in new VAT revenue.

“But their desperate and futile attempts to distract from their disastrous legacy does not give them the license to speak untruths.

We call on Mr Cooper to do the right thing and apologise for telling fibs. We are

not optimistic, however, period of three years coverthat he will do so.” ing fiscal year 2018 to fiscal While saying he was not year 2020, a deficit target of interested in a “back and one percent of GDP from forth” with the deputy fiscal year 2021 onwards…” prime minister, Mr Cooper “The IMF went on to say, responded yesterday: “For on page 13 of that docusomeone who should be ment: “The [government] spending the remainder of authorities agreed with the fiscal year chasing every staff’s proposed fiscal rule VAT dollar he can so as to targets. They welcomed not look completely inept staff’s proposed calibration at budget forecasting, the of the fiscal rule, which they minister of finance appears plan to include in the draft to have a lot of time on his fiscal responsibility legislahands. tion. The bill is expected to “His repeated protesta- be sent to Parliament in late tions about the lack of the May.” International Monetary “That same month, the Fund’s (IMF) involvement Cabinet of The Bahamas in the Hubert Minnis approved that legislation,” administration’s fiscal Mr Cooper said. “The policy, however, belie the Minister of Finance said facts as they stand.” the IMF is helping draft Mr Cooper noted that in the Public Financial ManMay 2018, the IMF’s Article agement Bill, which will IV consultation report on eventually replace the The Bahamas, conducted Financial Administration months prior, revealed that and Audit Act, the very the fund had proposed core of how our public “allowing for a transition finances are managed.”

CHAMPIONING THE CAUSE OF CHANGE ADAPTING to change in business is often a great challenge for many employees. The ability to assimilate into a new and dynamic environment in particularly perplexing for veteran workers who may have been entrenched in a process, environment and culture for an extended period of time.

When it comes to making major changes in the workplace - from embracing new technological advancements to downsizing, adding new products and services or shifting brand market strategy - the success of the move hinges on the ability of key players to embrace the new regime and bring those resisting along.

Today we offer tips on how companies in the midst of change can maximise results and achieve a greater measures of business success.

IAN FERGUSON BY

1. There must be a strong sense of commitment from senior management towards the direction the company is going in. When the senior leaders are all on the same page, it makes the decisions that must be made easier.

2. It is important to keep everything in the open for senior leaders. Remove all of the “back door” conversations and “silo” conversations. The more your senior executives know and can speak to what is going on, the more they will champion the cause.

3. Find the “win-win” for all key players in the roll-out of any new initiative. The communication plan must highlight how everybody wins, especially those who are crucial to the implementation. Incentives and other forms of external motivation must be used strategically for those who assist in the roll-out process.

4. Establish targets, end results and dates of implementation. Do not relent on those firmly-established goals and dates. Everyone in the company needs to know that stalling tactics will not work and, even when the process seems

rushed, inaction is nothing short of failure to embrace change.

5. Ensure that measurement of the targets takes priority, and the necessary adjustments are made. No change policy is seamless.

All change gets messy and requires some adjustment from the original plan.

Make the changes along the way and be matter of fact about it.

6. Make training a key component of the process.

Ensure all employees that the company will provide support in the form of orientation, such as training, to help with the assimilation process.

7. Just do it. This popular brand slogan must be followed to the letter.

Indecisiveness is most dangerous when everyone knows that change must occur. Do not shrink or cower in fear. Take the calculated risk, and ACT.

FOCOL chair ‘can’t believe’ stock so low FROM PAGE ONE dividends per share, with Sir Franklyn confirming: “We want to send a signal to the market that people may be desperate for money, but in terms of the fundamentals of the company it is not a rationale decision [to sell out so low], and we don’t know why they’re doing it apart from that reason.”

He pointed to FOCOL Holdings profits for the year to end-July 2018, which came in at a healthy $25.031m or $022 per share.

While a more than-$5m drop on the prior year, the BISXlisted petroleum products provider is once again beating comparatives with profits for the 2019 first quarter up more than $400,000 on the year-before period.

Taking Commonwealth Bank as a comparison, due to the two companies’ recent stock splits and matching 2018 dividend payouts, Sir Franklyn argued that there was “a significant disparity” in their prices that had

begun to frustrate FOCOL Holdings.

It is far from the first BISX-listed company to initiate a share buyback, and seek to overcome the relatively low levels of liquidity that have constantly impacted the Bahamian capital markets, with share prices often at the mercy of small retail investors who are willing to accept any price in their eagerness to sell.

As a result, many stocks failed to trade on fundamentals, due to the major discount that retail investors are prepared to sell at. This pushes share prices down still further, and with buyers few and far between, many publicly-listed companies have seen a massive “overhang” or supply of sellers build up during their histories.

Cable Bahamas, AML Foods and Bahamas Waste have all previously initiated share buyback initiatives of their own, although FOCOL Holdings has been the only one so far to limit its efforts to three months.

“We don’t want to be in the market as a perpetual player. We’ll see what happens at the end of three months,” Sir Franklyn said, indicating that FOCOL Holdings Board may consider extending it.

“The point is the Board has an obligation to all the shareholders. Those who stay with the company are rewarded in two ways; dividends and capital appreciation. The board does what it can to maximise returns to shareholders on both counts.

“It’s a question of supporting the market. That’s all we’re trying to do. Beyond that we have no strategic objective. It’s a short-term thing. We’re just trying to signal to the market that to sell FOCOL at $3.01 is not a rational decision unless you’re desperate for money.”

FOCOL Holdings’ share buyback is likely already having an impact. The company’s stock price rose 4.92 percent yesterday, climbing from $3.05 to $3.20 per share following the trade of some 5,000 shares.

To advertise in The Tribune, contact 502-2394

This moves the stock price away from the 52-week low of $3.01, although it is still well short of the $4.47 high achieved in the past year.

• NB: Ian R Ferguson is a talent management and organisational development consultant, having completed graduate studies with regional and international universities. He has

served organsations, both locally and globally, providing relevant solutions to their business growth and development issues. He may be contacted at iferguson@bahamas.com.

PAGE 4, Friday, March 1, 2019

THE TRIBUNE

DPM: We’ll ‘scale back’ spending more if needed FROM PAGE ONE

“I’m a very conservative person to start with, and I’m always going to be in line rather than aggressive with revenue projections.

We have a history of failing to make these projections, and that causes these deficits to be chronic because the expenditure is based on revenue.

“If you’re not realistic on one side you’re going to be 100 percent wrong on the other. As we look towards next year’s Budget we’re going to be analysing very closely what the revenue performance was this year to see if we have to scale back some of the expenditure we have for the coming year and determine what we have available to facilitate spending.”

To meet the deficit and debt-to-GDP targets set by the Fiscal Responsibility Act, the Government has focused on what it can control - spending - and reduced this to offset revenues coming in some 7 percent lower than projected.

Mr Turnquest said the Government “does not anticipate any diminution

of [public] services” as a result of the spending retrenchment, although non-essential projects may have to be “prioritised in a responsible way”.

He added that the Minnis administration was firmly committed to meeting the monthly civil service wage bill and honouring all contractual obligations, and said: “We are very mindful of our objective.

“Our plan has not changed in terms of how we plan to manage through the year. We’re cognisant of the revenue shortfall, taking that into consideration and doing our best to be prudent, judicious and responsible.”

Mr Turnquest continued: “I’m not going to say that it’s easy..... This is a political game. It’s not easy to hold the reins but I think everybody recognises we are in sensitive times and we have to start building back in the headroom we need to from the borrowing side and overall fiscal position so that in the event something terrible happens we can deal with it.

“Hopefully this will be another year that God smiles

on us and we have no major hurricanes, and get to do the things we need to do to prepare if something happens.

Part of the problem in the past was nobody was thinking ahead to what could happen, and modelling from a financial point of view, the infrastructure point of view, how we will respond in the event of disaster.”

The deputy prime minister said The Bahamas had failed to conduct a national “emergency drill” and work out how it can respond financially if struck by a major hurricane. The aftermath of Hurricane Matthew in October 2016, he added, had exposed the problems that result from a lack of disaster preparedness and planning.

“We have to be realistic about the circumstances we are in, and what we face,” Mr Turnquest told Tribune Business. “We can’t wait for a storm to happen before we figure out what to do.

“That’s what happened to the last administration. They had to rush out and borrow $150m with no control over how it was spent. It piled one disaster on top of another.”

‘Quantify’ VAT shortfall, BICA chief urges govt

CIBC enjoys ‘best result’ for 11 years

revenues and lower operating expenses and credit loss expenses,” the bank said.

The Bahamian operation’s corporate and investment banking division also boasted improved margins, with net income rising 14.7 percent from $34m to $39m. This was despite revenues remaining flat at $68m.

“Total revenue remained flat year-on-year as higher loan earnings were offset by lower internal revenue and fee income,” CIBC FirstCaribbean said. “Net income increased $5m year-onyear as the flat revenue was accompanied by lower credit loss expense and allocated indirect expenses.”

CIBC FirstCaribbean’s wealth management unit generated its first profit for three years, reversing the $1m loss in 2017 into a $500,000 profit.

Revenues rose by $3m to $14m.

“Total revenue increased year-on-year as a result of higher internal revenue and fees and commissions,” the bank added. “Net income increased year-on-year by $1.5m, driven by the higher total revenue, and lower operating and indirect expenses.”

Turning to the balance sheet, CIBC FirstCaribbean said: “Total assets decreased by $23m (one percent) primarily due to higher cash and balances with banks, net of a decrease in loans and advances to customers. Total liabilities increased by $18m (one percent) predominantly due to normal core deposit movements.

“Equity has decreased year-on-year by $41m (6 percent) due mainly to net income for the year of $85m, other comprehensive loss of $6m and dividends of $105m, and adjustment to opening retained earnings for adoption” of new accounting standards.

aggressive revenue estimates of previous administrations that contributed to the widening $300m-plus deficits The Bahamas has incurred over the past decade.

Acknowledging that he had been “a critic” of unrealistic revenue estimates, the deputy prime minister said this practice had exacerbated The Bahamas’ fiscal woes because the Government’s spending plans were directly tied to its projected revenues.

The Government has “held the reins” on recurrent spending, which is forecast to come in $130m or 5 percent lower than initial budget projections this fiscal year, to ensure that this aligns with its lower income and keeps it on track to hit the $237.6m full-year deficit target.

Serving notice of his intention to continue this practice, Mr Turnquest said The Bahamas had little choice but to “build back in the headroom” necessary to avoid “piling disaster on top

FROM PAGE ONE

“We can appreciate we have slower VAT revenues.

We should have the underlying root causes: Is it because they’ve seen a reduction in spending or is it a timing issue; the contractual relationships and timing for the hotel and construction industries.

“It’s not to cast doubt on that; it’s to quantify the impact. We did it for gaming and the Revenue Enhancement Unit; we should be doing the same for thing for the principal driver, VAT.” The government has forecast it will narrowly beat this year’s fiscal deficit target despite a $185m revenue shortfall caused by VAT, gaming and enforcement underperformance.

Mr Turnquest, in unveiling the 2018-2019 mid-year budget said the Minnis administration was on track to limit the full-year deficit to around $230m - some $5m$10m less than the “red ink” target set last May.

of disaster” - as happened with the $150m emergency borrowing in Hurricane Matthew’s aftermath.

The deputy prime minister, voicing optimism that VAT revenues were not underperforming as a result of Bahamian businesses and consumers cutting back on spending in response to the increased 12 percent rate, said the Government planned to conduct a similar investigation into why traderelated taxes were down on 2017-2018 comparatives.

“The reality from my view is that VAT is performing.

It’s a little bit behind, but not because of people holding back,” Mr Turnquest told Tribune Business, pointing to the significant revenues foregone from allowing the hotel and construction industries to honour pre-existing reservations/contracts at the old 7.5 percent rate.

“The area of more interest is on the Customs and trade side, which is down a bit.

We’re looking at that to see what’s driving that. I suspect it has to do with construction on a number of projects winding down. That leaves a

He said the government will be able to achieve this, and offset its revenue gap, through “significant spending restraint” projected to slash recurrent expenditure by five percent compared to initial forecasts.

This, based on Tribune Business’ calculations, amounts to a $130m cut to projections that it would spend some $2.589bn on its recurrent or fixed-costs typically civil service salaries, benefits and rents - this fiscal year.

Forecasts that revenue will fall seven percent short of budget predictions amounts to a $185.43m undershoot of the initial $2.649bn target, although Mr Turnquest implied that the VAT rate hike and other tax measures had still produced their desired effect because fullyear recurrent revenues will be more than $400m ahead of 2017-2018.

The deputy prime minister did not provide a figure for the projected VAT shortfall, although based on the total undershoot - and the losses relating to web shops and the

NOTICE NOTICE is hereby given that SINELIA CHERILUS ESCARMENT of Huyler Street, Black Village, New Providence, The Bahamas, is applying to the Minister Responsible for Nationality and Citizenship, for registration/naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 1st day of March 2019 to the Minister Responsible for Nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

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Please contact The Human Resources Department at Telephone Number 242-335-5141-3, or send resume to email address Amunroe@Thecoveeleuthera.com

bit more to review from our side, but VAT is performing, and as we came into the New Year it was coming more into line with our projections.”

However, for the first six months of the 2018-2019 fiscal year, the Government’s Excise Tax earnings were down $17.484m year-overyear, standing at $108.291m compared to $125.776m for 2017-2018. A similar pattern occurred with Customs duties and other import taxes, which were down by $4.266m at $132.536m as opposed to $138.802m in 2018-2019.

Mr Turnquest yesterday acknowledged the Government’s long track record of missing revenue projections because they, together with the economic growth forecasts upon which they rely, were largely too ambitious.

“I was a critic of it myself,” he told Tribune Business.

“I’m very cognisant of it.

This year there are factors not necessarily in our control that would have thrown our projections off a bit.

We want to be as realistic as possible.

Revenue Enhancement Unit - this is likely to be around $90m or half of the $185m.

“It was a very courageous and very professional disclosure on his part,” Mr Bowe said of Mr Turnquest’s revenue shortfall admission, especially given the magnitude of the undershoot. “It was a very courageous move to say you will miss by near $200m; a very honest step when you have international and domestic actors looking at it.

“It sets the tone for understanding we have to tighten our belts on expenditure but, when you do that it sets the bar higher, so you want to know the assumptions or estimates that didn’t materialise so you don’t repeat the same thing in the next budget.

“We don’t get details on how they formulate the assumptions and estimates, and by doing that it sets us up to repeat the same mistakes in the following year’s budget.”

The BICA president said the deputy prime minister will now have to “show his

fortitude in holding that expenditure line” when it was not easy to control. Set against this objective, Mr Bowe said the government needed to ensure it targeted the “right areas, value for money” and “be sure you’re getting the biggest bang for your buck” from the planned capital spending ramp-up.

He added that The Bahamas needed to develop its own economic growth statistics rather than rely on the likes of the International Monetary Fund (IMF) and Inter-American Development Bank (IDB), given that this was the main determinant on which government revenues are forecast.

“By framing our growth we have to tell them what justifies it and live up to it,” Mr Bowe said, “as we know all the drivers.” He added that economic growth, both domestic and international, should not be the determining factor on whether the government produces a budget deficit or surplus but, rather, how it adjusts spending and revenues to achieve this objective.

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL The Public is hereby advised that I, VADALIA KARVINNA BURROWS nee ROLLE of Hampshire Street, Westward Villas, P. O. Box N-4314, Nassau, Bahamas, mother of KHAYDEN CARRINGTON DAYAN BURROWS, a minor, intend to change his name to KHAYDEN CARRINGTON DAYAN BODIE. If there are any objections to this change of name by Deed Poll, you may write such objections to the Chief Passport Officer, P. O. Box N-742, Nassau, Bahamas, no later than thirty (30) days after the date of publication of this notice.

NOTICE

FROM PAGE ONE This was offset slightly by a $4m decrease in socalled “other income” due to increased securities losses, which cut operating income by $1.4m or three percent year-over-year to $31.522m.

Total operating expenses, though, largely remained flat at $90.977m.

Loan loss expenses were also consistent with 2017 figures, although that associated with impaired loans increased due to a change in accounting standards that impacted all Bahamas-based commercial banks.

Loss expenses associated with non-impaired loans dropped by $8m due to the same accounting treatment change, and CIBC FirstCaribbean added: “The ratio of credit loan allowances to gross loans was 0.4 percent compared with 0.6 percent at the end of 2017. Non-performing loans to gross loans declined to 5.2 percent at the end of 2018 compared to 6.8 percent at the end of 2017.”

Breaking its business down by segments, CIBC FirstCaribbean said net income generated by its retail and business banking unit jumped by one-third year-over-year, growing from $24m to $32m.

Total revenues rose by the same margin, growing from $82m to $89m.

“Total revenues increased year-on-year by $7m primarily due to higher performing loan revenue, fees and commissions. Net income for the year increased year-on-year by $8m, driven by higher

NOTICE

NOTICE is hereby given that SHARON ANGELA GARDINER of #41 Esmeralda Blvd., Nassau Village, New Providence, The Bahamas is applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 1st day of March, 2019 to the Minister responsible for Nationality and Citizenship, P.O. Box N-7147, Nassau, New Povidence, The Bahamas.

NOTICE is hereby given that MARIE MYRLANDE MILORD of South Beach Estates, Blue Hill South,Nassau, Bahamas, is applying to the Minister Responsible for Nationality and Citizenship, for registration/naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 22nd day of February 2019 to the Minister Responsible for Nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

NOTICE

NOTICE

NOTICE is hereby given that KOLLY ALCY of Allen Drive, Carmichael Road, New Providence, The Bahamas is applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 1st day of March, 2019 to the Minister responsible for Nationality and Citizenship, P.O. Box N-7147, Nassau, New Povidence, The Bahamas.

NOTICE is hereby given that SHELLY MELIDOR of Rupert Dean Lane, New Providence, The Bahamas is applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 1st day of March, 2019 to the Minister responsible for Nationality and Citizenship, P.O. Box N-7147, Nassau, New Povidence, The Bahamas.

THE TRIBUNE

Friday, March 1, 2019, PAGE 5

GLOBAL Ports Holdings’ vision for the revamp of Nassau Cruise Port.

Taxi drivers: We won’t be ignored over cruise port FROM PAGE ONE “This system will be the catalyst to prove to government and local officials downtown that we are capable of doing professional business, which will change the image of the taxi drivers.”

Global Ports Holding, the UK-listed, Turkish-headquartered operator of 16

cruise ports spread throughout the Mediterranean, Asia-Pacific and Atlantic regions, was unveiled this week as the preferred bidder to take over Prince George Wharf’s management and operations, and oversee its redevelopment.

Bids for the Nassau Cruise Port were submitted to the government on December 7 last year, and opened on December

11. The three contenders were the $250m offer from Global Ports Holding and its Bahamian advisors, Arawak Port Development Company (APD) and CFAL; the $225m proposal

by Nassau Port Partners, headed by Bahamian investment house, Providence Advisors; and the $125m submission by Cruise Ports International. The latter, a Bahamian group,

was headed by former Family Guardian president, Gerald Strachan, in alliance with four major cruise lines - Carnival, Disney, Norwegian and Royal Caribbean.

Global Ports Holding has pledged to provide a $10m interest free loan to small Bahamian retail investors to enable them to acquire shares in an investment fund that will have 49 percent equity ownership in the

cruise port project. Those Bahamians will hold shares in The Bahamas Investment Fund set up by CFAL (the former Colina Financial Advisors).

Company officials have also promised to work “in harmony” with the

Downtown Nassau Partnership (DNP) to help finance improvements to Bay Street and surrounding roads, and upgrade lighting and benches to make the area “a more attractive place where people want to linger” and spend money.

LEGAL NOTICE

NOTICE

MELSTONE Limited Company No. 1420041 (In Voluntary Liquidation)

NOTICE is hereby given pursuant to Section 204 (1) (b) of the BVI Business Companies Act, 2004 that MELSTONE Limited is in voluntary liquidation.

The voluntary liquidation commenced on 13th February, 2019 and Heiko Schröder of c/o Orconsult SA, Stampfenbachstrasse 138 PO Box 305, 8045 Zurich, Switzerland, has been appointed as the Sole Liquidator.

Dated this 13th day of February, 2019 Sgd. Heiko Schröder Voluntary Liquidator

The beautiful, luxury 5 star cove resort in Gregory Town Eleuthera is presently looking for trained and experience personal to commence the following work positions immediately.

*Food And Beverage Manager *Restaurant Manager *Assistant Food And Beverage Manager Bachelor’s Degree from four–Year College or Bachelo University: or equivalent related work related experience and/or training. Prior food and Beverage Management experience and simular preferred.

Preper 3+ Years’ prior supervisory skills and hotel/resort food and beverage operations experience. Must have strong organizational skills, excellent written and verbal communication skills and be able to perform and prioritize multiple tasks with ease. Computer skills required, strong guest and team member relation skills.

Must maintain current food handlers certification.

Please contact the human resources department at telephone number 242-335-5141-3, or send resume to email address Amunroe@Thecoveeleuthera.com

PAGE 6, Friday, March 1, 2019

THE TRIBUNE

US growth is likely to slow from 2.6 pct pace last quarter WASHINGTON Associated Press THE US economy turned in a solid performance in 2018, boosted in part by tax cuts and higher government spending. But growth slowed by year’s end, and most economists envision a weaker outlook for the coming months and probably years.

The nation’s gross domestic product, the broadest gauge of economic health, expanded at a 2.6 percent annual rate in the October-December period, the government said yesterday.

That was down from a 3.4 percent rate in the JulySeptember period and a sizzling 4.2 percent pace from April through June.

During those months, the economy benefited from tax cuts and from higher government spending, the gains from which are thought to be fading.

For 2018 as a whole, GDP growth amounted to 2.9 percent, the government said, the best showing since 2015. It was just below the three percent pace the administration has said it can maintain consistently.

By contrast, most economists foresee slower growth ahead. For the current January-March quarter, many analysts say they think growth could slow to a two percent annual rate or less.

“I think the economy will be steadily throttling back over the next two years,” said Mark Zandi, chief economist at Moody’s Analytics.

The economy’s pace of expansion last quarter reflected a slowdown in consumer spending and the start of a 35-day partial shutdown of the government, which subtracted an estimated 0.1 percentage point from growth. That weakness was offset somewhat by a gain in business

CONSTRUCTION personnel work on a building project just south of Chicago’s Loop. The US economy slowed in the final three months of last year to an annual growth rate of 2.6 percent, the slowest pace since the beginning of 2018, as the government shutdown and other factors took a toll on growth.

Economists believe growth has slowed even more in the current quarter.

investment and less of a drag from trade.

The $1.5tn tax cut that President Donald Trump pushed through Congress in late 2017 and billions of extra dollars in government spending that Congress added for military and domestic programmes helped accelerate the economy last year.

In the view of most economists, though, 2018 may turn out to have been the economy’s high point for some time. Many are forecasting that growth this year will slow to around 2.2 percent and to weaken further in 2020. Some analysts say they think the economy could even dip into recession next year as the support from the tax cuts fades and the global economy sputters.

Zandi has forecast growth of 2.5 percent this year and just above one percent in 2020 and estimates the chance of a recession starting in 2020 at about 50-50. The National Association for Business Economics said in a survey released this week that roughly half the economists who responded to its latest survey expect a recession to have begun by the end of 2020.

The forecasts from the Trump administration are far rosier. Its officials have projected that the administration’s policies will produce growth surpassing three percent in coming years.

Kevin Hassett, chairman of the White House Council of Economic Advisers, argued in an interview

yesterday that private forecasters are relying on outdated models that don’t fully reflect the latest research. Hassett said he had forecast growth of 3.1 percent for 2018, when measured on a fourth-quarter-to-fourth-quarter basis and said that that pace was achieved.

“It worked exactly the way I said,” Hassett said.

For 2019 as a whole, Hassett said he foresees growth improving to 3.2 percent — well above the expectations of most economists.

The economic expansion, now in its 10th year, is the second-longest on record.

If it lasts beyond June, it will surpass the decade-long recovery from March 1991 to March 2001. Despite its duration, the expansion has been marked by

MARKET REPORT THURSDAY, 28 FEBRUARY 2019

t. 242.323.2330 | f. 242.323.2320 | www.bisxbahamas.com

BISX ALL SHARE INDEX: CLOSE 2,064.80 | CHG 6.80 | %CHG 0.33 | YTD -44.65 | YTD% -2.12 BISX LISTED & TRADED SECURITIES 52WK HI 4.50 20.91 7.50 5.50 1.80 0.80 3.68 10.20 6.60 4.74 12.50 2.74 1.81 8.50 6.40 14.10 6.99 4.47 13.85

52WK LOW 3.50 19.17 4.90 3.34 1.00 0.19 2.10 8.70 6.10 3.54 9.75 2.30 1.50 7.25 6.10 10.10 5.85 3.01 12.51

1000.00 1000.00 1000.00 1000.00

1000.00 1000.00 1000.00 1000.00

PREFERENCE SHARES

1.00 103.00 100.00 100.00 105.00 103.00 100.00 10.00 1.01

1.00 100.00 100.00 100.00 100.00 100.00 100.00 10.00 1.00

SECURITY AML Foods Limited APD Limited Bahamas Property Fund Bahamas Waste Bank of Bahamas Benchmark Cable Bahamas CIBC FirstCaribbean Bank Colina Holdings Commonwealth Bank Commonwealth Brewery Consolidated Water BDRs Doctor's Hospital Emera Incorporated Famguard Fidelity Bank Finco Focol J. S. Johnson Cable Bahamas Series 6 Cable Bahamas Series 8 Cable Bahamas Series 9 Cable Bahamas Series 10 Colina Holdings Class A Commonwealth Bank Class E Commonwealth Bank Class J Commonwealth Bank Class K Commonwealth Bank Class L Commonwealth Bank Class M Commonwealth Bank Class N Fidelity Bank Class A Focol Class B

CORPORATE DEBT - (percentage pricing) 52WK HI 100.00

52WK LOW 100.00

SYMBOL AML APD BPF BWL BOB BBL CAB CIB CHL CBL CBB CWCB DHS EMAB FAM FBB FIN FCL JSJ CAB6 CAB8 CAB9 CAB10 CHLA CBLE CBLJ CBLK CBLL CBLM CBLN FBBA FCLB

SECURITY Fidelity Bank Note 22 (Series B) +

SYMBOL FBB22

Bahamas Note 6.95 (2029) BGS: 2015-1-3Y BGS: 2014-12-5Y BGS: 2015-1-5Y BGS: 2014-12-7Y BGS: 2015-1-7Y BGS: 2014-12-30Y BGS: 2015-1-30Y BGS: 2015-6-3Y BGS: 2015-6-5Y BGS: 2015-6-7Y BGS: 2015-6-30Y BGS: 2015-10-3Y BGS: 2015-10-5Y BGS: 2015-10-7Y

BAH29 BG0203 BG0105 BG0205 BG0107 BG0207 BG0130 BG0230 BG0303 BG0305 BG0307 BG0330 BG0403 BG0405 BG0407

BAHAMAS GOVERNMENT STOCK - (percentage pricing) 115.92 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

104.79 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

MUTUAL FUNDS 52WK HI 2.20 4.24 2.03 184.51 158.55 1.60 1.74 1.69 1.12 6.99 8.54 6.15 10.52 11.46 10.46 10.00 8.69 11.79

52WK LOW 1.67 3.04 1.68 164.74 116.70 1.54 1.68 1.63 1.08 6.41 7.62 5.66 8.65 10.54 9.57 9.88 8.45 11.20

LAST CLOSE 4.37 17.43 7.00 5.39 1.78 0.80 2.28 9.85 6.16 4.29 10.99 2.63 1.78 8.63 6.40 14.10 6.98 3.05 13.85

CLOSE 4.37 17.43 7.00 5.39 1.78 0.80 2.28 9.85 6.16 4.29 10.99 2.64 1.78 8.70 6.40 14.10 6.98 3.20 13.85

CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.01 0.00 0.07 0.00 0.00 0.00 0.15 0.00

1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.00 100.00 100.00 100.00 10.00 1.00

1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.00 100.00 100.00 100.00 10.00 1.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

CLOSE 100.00

CHANGE 0.00

107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

LAST SALE 100.00 107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

FUND CFAL Bond Fund CFAL Balanced Fund CFAL Money Market Fund CFAL Global Bond Fund CFAL Global Equity Fund FG Financial Preferred Income Fund FG Financial Growth Fund FG Financial Diversified Fund FG Financial Global USD Bond Fund Royal Fidelity Bahamas Opportunities Fund - Secured Balanced Fund Royal Fidelity Bahamas Opportunities Fund - Targeted Equity Fund Royal Fidelity Bahamas Opportunities Fund - Prime Income Fund Royal Fidelity Int'l Fund - Equities Sub Fund Royal Fidelity Int'l Fund - High Yield Fund Royal Fidelity Int'l Fund - Alternative Strategies Fund Colonial Bahamas Fund Class D Colonial Bahamas Fund Class E Colonial Bahamas Fund Class F

VOLUME

4,019

250

5,000

VOLUME

EPS$ 0.147 0.932 -0.306 0.323 0.104 0.000 -0.523 0.700 0.480 0.154 0.627 0.102 0.209 0.000 0.481 0.762 0.578 0.277 0.631

DIV$ 0.120 1.260 0.000 0.240 0.000 0.020 0.000 0.710 0.220 0.120 0.620 0.060 0.060 0.084 0.240 0.500 0.150 0.090 0.600

P/E 29.7 18.7 N/M 16.7 N/M N/M -4.4 14.1 12.8 27.9 17.5 25.9 8.5 N/M 13.3 18.5 12.1 11.6 21.9

YIELD 2.75% 7.23% 0.00% 4.45% 0.00% 2.50% 0.00% 7.21% 3.57% 2.80% 5.64% 2.27% 3.37% 0.97% 3.75% 3.55% 2.15% 2.81% 4.33%

0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

0.00% 0.00% 0.00% 0.00% 6.25% 6.25% 6.25% 6.25% 6.25% 6.25% 6.25% 7.00% 6.50%

INTEREST Prime + 1.75% 6.95% 4.00% 4.25% 4.25% 4.50% 4.50% 6.25% 6.25% 4.00% 4.25% 4.50% 6.25% 3.50% 3.88% 4.25%

NAV 2.20 4.24 2.03 184.51 147.81 1.60 1.74 1.69 1.12 7.47 8.64 6.60 10.37 11.69 10.38 9.92 8.69 11.79

YTD% 12 MTH% 3.97% 3.97% 2.49% 2.49% 2.43% 2.43% 3.26% 3.26% -3.65% -3.65% 0.47% 4.42% -0.04% 2.71% 0.27% 3.85% 0.75% 2.58% -1.08% 1.77% -5.96% -3.05% 1.90% 4.59% 7.24% 11.96% 2.77% 3.88% 3.94% 4.69% -0.71% 0.16% 3.96% 7.75% 8.34% 14.88

MATURITY 19-Oct-2022 20-Nov-2029 30-Jul-2018 16-Dec-2019 30-Jul-2020 15-Dec-2021 30-Jul-2022 15-Dec-2044 30-Jul-2045 26-Jun-2018 26-Jun-2020 26-Jun-2022 26-Jun-2045 15-Oct-2018 15-Oct-2020 15-Oct-2022 NAV Date 31-Dec-2018 31-Dec-2018 31-Dec-2018 31-Dec-2018 31-Dec-2018 31-Jan-2019 31-Jan-2019 31-Jan-2019 31-Jan-2019 31-Dec-2018 31-Dec-2018 31-Dec-2018 31-Dec-2018 31-Dec-2018 31-Dec-2018 30-Sep-2018 30-Sep-2018 30-Sep-2018

MARKET TERMS BISX ALL SHARE INDEX - 19 Dec 02 = 1,000.00 52wk-Hi - Highest closing price in last 52 weeks 52wk-Low - Lowest closing price in last 52 weeks Previous Close - Previous day's weighted price for daily volume Today's Close - Current day's weighted price for daily volume Change - Change in closing price from day to day Daily Vol. - Number of total shares traded today DIV $ - Dividends per share paid in the last 12 months P/E - Closing price divided by the last 12 month earnings

YIELD - last 12 month dividends divided by closing price Bid $ - Buying price of Colina and Fidelity Ask $ - Selling price of Colina and fidelity Last Price - Last traded over-the-counter price Weekly Vol. - Trading volume of the prior week EPS $ - A company's reported earnings per share for the last 12 mths NAV - Net Asset Value N/M - Not Meaningful

TO TRADE CALL: CFAL 242-502-7010 | ROYALFIDELITY 242-356-7764 | FG CAPITAL MARKETS 242-396-4000 | COLONIAL 242-502-7525 | LENO 242-396-3225

the weakest annual growth rates of any recovery in the post-World War II period — just above two percent.

In a separate report yesterday, the government said that applications for unemployment benefits, a reflection of layoffs, rose by 8,000 last week to a seasonally adjusted 225,000. That is still a low level by historical standards and suggests that businesses are mostly maintaining their workers in a tight job market. The unemployment rate is four percent, near a half-century low.

The economy’s 2.6 percent annual growth rate last quarter, though solid, was the slowest since a 2.2 percent pace in the first quarter of 2018. That was followed by two strong quarters last year. Trump has often cited

those performances as evidence that his program of tax cuts, reductions in regulations and tougher enforcement of trade agreements was working.

Yesterday’s GDP report from the Commerce Department had been delayed by a month because of the government shutdown. And there will be only two estimates for last quarter’s GDP, rather than the usual three.

The report showed that consumer spending slowed to a still solid growth rate of 2.8 percent in the fourth quarter, down from 3.5 percent growth in the third quarter. Business investment spending came in at a strong 6.2 percent annual rate, up from 2.5 percent in the previous quarter.

YouTube suspends comments on videos of kids SAN FRANCISCO Associated Press YOUTUBE said yesterday it will turn off comments on nearly all videos featuring kids — potentially affecting millions of posts on the site — after reports last week that pedophiles were leaving inappropriate comments on innocuous videos of children.

The change comes as YouTube grapples with moderating content across its platform as concerns about hate speech, violence and conspiracy theories continue to plague it.

It will take YouTube several months to disable comments on all videos featuring minors, the company said. It already started the process last week when it turned off comments from tens of millions of videos.

Advertisers including Nestle, AT&T and Fortnite-maker Epic Games pulled ads from YouTube last week after the inappropriate comments about children were unearthed by a popular YouTuber and media reports. At least one company, Nestle, was satisfied with YouTube’s response and reinstated ads late last week.

A small number of channels which have videos featuring kids will be allowed to keep comments turned on. But they must be known to YouTube and must actively monitor the comments beyond the standard monitoring tools YouTube provides.

Turning off comments on such a large number of videos seems an “extreme reaction”, said eMarketer analyst Paul Verna. But the issue involves the safety of children, so it makes sense YouTube would want to act quickly, he said.

Comments aren’t the main focus of the videopublishing site, but turning them off will likely diminish the experience for many users and video creators, he said.

YouTube CEO Susan Wojcicki acknowledged the concerns yesterday, tweeting, “Nothing is more important to us than ensuring the safety of young people on the platform.”

The company said it has also released an updated version of its automated moderating system that it expects will identify and delete two times as many inappropriate comments.

YouTube, like Facebook, Twitter and other sites that allow user publishing, have faced increasing calls to monitor what appears on their sites and get rid of unsuitable content. The companies all say they have taken action to protect users. But issues keep popping up.

Concerns about YouTube comments weren’t even a top priority for advertisers and viewers a couple weeks ago, Verna said.

“It just makes you wonder, what’s the next thing that going to happen?”

PAGE 8, Friday, March 1, 2019

THE TRIBUNE

Detroit sees training opportunity before expected job boom DETROIT Associated Press FIAT Chrysler Automobiles this week announced a $4.5bn investment that would bring 6,500 new manufacturing jobs to Detroit and its suburbs and, nearly two years before the first new vehicles will even roll off the line, the city already is taking steps to ensure it can provide enough workers with the needed skills.

Detroit’s economy was once dominated by automotive manufacturing, but since the industry’s gradual migration from the metro area it has suffered among the highest poverty and unemployment rates in the country. Not long ago, Detroit was struggling to provide basic services, culminating in bankruptcy in 2013. Providing job training then would have been a tall order.

But in its recovery, the city has overhauled its training programs and slowly built a track record for preparing people for specific jobs.

“We’re not starting from scratch,” Jeff Donofrio, the city’s executive director of workforce development, said on Wednesday, a day after the Italian-American automaker announced its plan. “We want to make sure we’re prepared for all the ... jobs that will come to the city as a result of the investments.”

The city works with two high schools, a community college and a workforce development organisation, in partnerships with the auto union and companies, to tailor training programmes for positions in manufacturing, construction, information technology and health care.

Detroit worked closely with global auto parts

supplier Flex-N-Gate to ensure Detroiters were handed jobs when the company last year opened a plant in what officials described as the largest investment in the city in two decades. The city and company developed customised training with the nonprofit Focus: Hope, which prioritises workforce development and education.

“About 250 individuals went through that training and a vast majority were hired by Flex-N-Gate,” Donofrio said.

With tax breaks and land acquisitions still to be hammered out, Fiat Chrysler’s specific workforce needs have yet to be revealed. But Donofrio insists that the city has a growing force of eligible workers: Detroit last year enrolled about 2,500 people in training leading to a credential for a specific job, up from about 700 two years earlier.

DETROIT Mayor Mike Duggan announces plans for Fiat Chrysler to build a new assembly plant include $12m in tax abatements over a dozen years and 200 acres of land during a news conference in Detroit, on Tuesday. Duggan’s office said that the city will work with the state on other incentives for the automaker’s $1.6bn investment to convert its Mack Avenue Engine Complex into a new facility.

The city has 60 days to get the land, 170 acres of which is owned by the city, a power utility, a public water authority and a family of prominent wealthy businessmen.

Photo: Carlos Osorio/AP Some prospective FCA jobs could be offered to laid-off Fiat Chrysler workers or those already working for the company on a temporary basis, and United Auto Workers officials say many of them are already in Detroit.

Fiat Chrysler said it will invest $1.6bn to reopen a shuttered engine plant and convert another in the same complex into an assembly plant for the Jeep Grand Cherokee and a new, three-row, full-size Jeep SUV. That would create

about 3,850 jobs.

All told, the investment would roughly double FCA’s hourly workforce in Detroit.

The prospect of training — and a job in Detroit with an expected average wage of about $58,000 a year — entices Ladale Moore. The

22-year-old Detroiter with a ten-month-old son said he was laid off a couple of months ago from his job as a Hi-Lo driver. He has worked in manufacturing since he was 18.

“I’ve never had a job in the city, they’ve all been in the suburbs. They tend to pay more and the benefits are a lot better,” said Moore, whose uncle, Fred Borden, works at Fiat Chrysler’s Jefferson North plant, slated to get 1,100 new jobs in the multi-plant investment.

“Right now, with what’s going on with Fiat Chrysler, that’s going to be a big thing for the city of Detroit,” Moore added.

While it’s early, Detroit and Fiat Chrysler appear to be laying the right groundwork after significant struggles, according to Marina Whitman, a retired professor of business and public policy at the University of Michigan and a former General Motors chief economist. Chrysler and GM weathered their own bankruptcies a decade ago.

Whitman doesn’t see any cautionary tale arising from the recent decision

by Amazon to cancel plans for a secondary headquarters in New York, spiking some 25,000 promised jobs.

The online retailer ran into fierce political opposition to promised tax incentives, not, as Whitman notes, issues with availability of a trained workforce.

“You’ve got this city entity (in Detroit) that seems to be focusing in an intelligent way on the training question,” she said. “And auto companies that after going through hell and high water, have finally figured out what they have to do to be successful.”