03152023 BUSINESS

WEDNESDAY, MARCH 15, 2023

$5.76 $5.72 $5.92

PI project concern over ‘compelling opportunity’

• Royal Beach Club could impact Club Med site plans

• Atlantis executive also warns on downtown fall-out

• Denies Royal Caribbean competition driving worry

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

A SENIOR Atlantis executive yesterday warned that concerns over Royal Caribbean’s Paradise Island project could harm downtown Nassau’s revival and “the most compelling real estate opportunity in The Bahamas” if not resolved.

Vaughn Roberts, senior vice-president of government affairs and special

projects, said the mega resort and its owner, Brookfield Asset Management, would likely cease working on development plans for the 50-acre former Club Med property if environmental (see other article on Page 1B) and other issues surrounding the cruise line’s recently-approved Royal Beach Club are not addressed to the mutual satisfaction of all.

The beach break destination, located opposite Nassau Cruise Port, would be in close proximity to a site that Atlantis/Brookfield are thought to be eyeing for high-end residential and other real estate options. Several hundred partying cruise passengers may not be a good fit for such plans, while Atlantis also has multiple environmental misgivings it wants addressed via the

Atlantis urges ‘more robust’ EIA from Royal Caribbean

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

A SENIOR Atlantis executive yesterday urged Royal Caribbean to tackle “head on” the concerns raised over its $100m Paradise Island beach club by providing “a more robust” Environmental Impact Assessment (EIA).

Vaughn Roberts, senior vice-president of government affairs and special projects, told Tribune Business that its faith in The

Bahamas’ environmental approvals process had been somewhat restored after both the Prime Minister and Deputy Prime Minister last week pledged that the Royal Beach Club will not proceed without being subject to proper regulatory scrutiny.

He revealed that the mega resort’s confidence in the Department of Environmental Planning and Protection (DEPP) process had been shaken after the 28 questions it submitted following the first Royal

Beach Club public consultation went unanswered for almost 18 months since the first EIA was discussed in October 2021.

The Atlantis executive told this newspaper that critical answers are now needed over whether the cruise giant’s plans call for the shoreline and beach on western Paradise Island to be changed or expanded, and if structures such as jetties and piers will be constructed on them and extend into Nassau Harbour.

This, Mr Roberts warned, could have unintended consequences for other Paradise Island beaches and those on New Providences northern shore, and he urged the Government to ensure Royal Caribbean puts in place the necessary funding and structures to cover any remediation work that may become necessary. Other critical issues for Atlantis involve how its potential near-neighbour

SEE PAGE B12

PM says PI’s lighthouse developer must reapply

By FAY SIMMONS jsimmons@ tribunemedia.net

THE Bahamian entrepreneur seeking to invest $2m to restore Paradise Island’s lighthouse was yesterday invited by the Prime Minister to reapply for government approval of his project.

Philip Davis KC said he had asked Toby Smith to submit a fresh application after Chief Justice Ian Winder ruled last month

that he did not have a valid and binding Crown Land lease for five acres of land that would facilitate his project in the Colonial Beach area.

“The court has ruled that he had no interest in the land and I’ve invited him to, if he is still interested, to reapply for consideration of the Government of his project and we await his application,” Mr Davis said of Mr Smith. The latter declined to comment when contacted by

Tribune Business yesterday, but it is thought that reapplying could undermine and cut across his prospects of appealing the Chief Justice’s ruling to the Court of Appeal.

In addition, Mr Smith’s project had been approved by the former Minnis administration and was only awaiting the Crown Land leases to proceed. Given that Royal Caribbean has reduced its

SEE PAGE B3

Gas station operator’s relief faith ‘now 120%’

By FAY SIMMONS and NEIL HARTNELL Tribune Business Reporters

A GAS station operator yesterday said his faith was now “120 percent” restored over the Government’s intention to provide relief for the sector’s plight following Monday’s meeting with the Prime Minister.

Vasco Bastian, the Bahamas Petroleum Retailers Association’s (BPRA) vice-president, told

Tribune Business he was “100 percent confident” that the Davis administration will deliver on long-promised assistance for the industry after a meeting he described as “reassuring”.

“It was just the fact that the conversation went in the right direction,” he explained.

“I believe in the Prime Minister, I believe the Prime Minister believes in small and medium-sized businesses, and he’s demonstrated that

over the years. The conversation was very reassuring. He understands our concerns, he understands our plight, and is much more sympathetic than the previous administration as regards our industry.

“We’re very, very happy.

I’m proud to be a small and medium-sized businessman now, and proud to be a Bahamian. My faith never wavered per se. My faith was at 75-80 percent, but now it’s at 120 percent. It’s what we needed. We

always go into discussions, and have dialogue, with people that are in charge, that understand you, understand your plight.

“The Prime Minister was very accommodating and that goes well with our confidence level. We’re business persons, we’re Bahamians and we’re trying to keep the wheels of the economy moving. He understands that. We’ll talk in two weeks.” Mr

environmental approvals process for Royal Caribbean’s project.

Mr Roberts, meanwhile, told this newspaper that the Government will also likely have to address the additional congestion in an already-crowded Nassau Harbour caused by the ferries and other vessels transporting passengers, staff, supplies and other commodities to a Royal Beach Club that will be inaccessible overland by road. There is also the likelihood that solid, and potentially other forms of waste, will have to be removed from the site be boat on a daily basis. The increased vessel traffic, Mr Roberts argued, could impact marina development plans on both the

Bahamas could gain $140m from 15% minimum taxation

• Minister: First step towards ‘one tax rate for all’

• OECD’s initial move just ‘a crack in the door’

• But won’t cause financial services to ‘flee’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE Bahamas could earn $140m in revenue from the global tax crackdown on major multinationals, a Cabinet minister disclosed yesterday, while suggesting the initiative is the first step towards “one tax rate for all”.

Michael Halkitis, minister of economic affairs, told a panel discussion at the annual RF Economic Outlook conference that the G-7/OECD-led push to levy a minimum 15 percent corporate income tax worldwide by 2024 was merely “a crack in the door” that is intended to ultimately lead to the harmonisation of tax systems and rates.

“The reality we face, beginning in 2024, is that multinational enterprises with revenue of 750m euros or higher will be subject to a minimum tax rate of 15 percent or higher in jurisdictions in which they operate,” he said, explaining that the initiative was

designed to prevent “a race to the bottom” on global tax rates while also halting tax avoidance and evasion by corporate conglomerates.

The Bahamas, despite having no history of income or corporate taxes, is among 138 nations that in July 2021 signed on to the Organisation for Economic Co-Operation and Development (OECD) inclusive framework that underpins the minimum tax drive and commits signatories to implementing it.

“The potential uptick for The Bahamas could be $140m annually,” Mr

SEE PAGE B5

VAUGHN ROBERTS

MICHAEL HALKITIS

PHILIP DAVIS KC

ATLANTIS RESORT AND CASINO

ROYAL CARIBBEAN’S ROYAL BEACH CLUB CONCEPT

$5.70

ENVIRONMENT PRIVATE SECTOR ‘CAN SINK TEETH INTO’

There are two important points in time to reflect on. First, the 2022 Fiscal Strategy Report (FSR) emerged after the half-way point of the current fiscal year. Therefore, its contents ought to have been highly informed from the data available to policymakers up to that point. Second, the mid-year Budget occurred nearly two months after the six-month mark. Whatever optimism or caution the debate carried should therefore be well-informed by available data. Trends must have been confirmed or dispelled, and performance outside the period must have guided the narrative laid out in various presentations. In a sense, the level of accuracy ought to be extremely high.

Buoyed by ongoing performance, the Fiscal Strategy Report lays out an economic path for the future which is both exciting and sobering. The essence of the projections is that The Bahamas will grow its gross domestic product (GDP) to $16bn within four years, with government revenue increasing to $4bn over the same period. Loosely calculated, this translates to an average annual growth rate of approximately 5 percent.

When compared with economic growth rates of 1.5-2 percent over the last decade, it is reasonable to ask what, beyond the robust reconsolidation, does the Government have in its strategic tool-kit which will create this level of growth.

Over the 15 years noted above, global growth averaged just under 4 percent.

The possibilities are without doubt exciting. An examination of the Fiscal Strategy Report’s page 28 owill deliver some insight into what the administration believes are the possibilities for growth and

expansion. In principle, it tends to show that there is a drive for deeper economic diversification across multiple industries.

The analysis Before drawing any conclusion it is important to reiterate that the direction envisioned by the Fiscal Strategy Repprt is precisely what is needed for The Bahamas. Shifting from 1-2 percent average annual GDP growth to a sustained 4-5 percent will not be easily achieved, but that is exactly what the country needs. Prior to COVID19, one recurring point of commentary was that there was insufficient focus on economic growth at a time when there was a reasonable window to do so. That reality, coupled with the impacts from the pandemic and the accompanying global economic crisis, has led to a crystal clear understanding that the country must grow faster or struggle with its current economic and fiscal arrangements.

The growth thrust outlined in the Fiscal Strategy Report was foreshadowed in 2022 when the Ministry of Finance detailed its plans to increase government revenue to 25 percent of GDP. Careful assessment

will conclude that the economic state of the country is such that it simply must find new avenues of growth. This growth in government revenue, according to the pronouncements in the Fiscal Strategy Report, is based primarily on the expansion of GDP and tax enforcement and collections. The Fiscal Strategy Report aligns well with previously made projections in the 2022-2023 Budget presentation. It suggests greater enthusiasm as opposed to any shift in outlook or strategic bearing.

It is my view that there should be a ready acknowledgment of the administration’s willingness to accept the need for growth. There should be ready acknowledgement of the boldness to lay out aggressive targets in seeking to achieve the growth objectives required. The recent mid-year Budget presentation shows central government debt is now at $11bn. Despite improvements, a review of The Bahamas’ listed outstanding foreign currency debt will show it is currently trading at reasonable discounts. This is still suggestive of above-normal premiums if compared to the US benchmark rate. This is despite recent intervention facilitated by the Government, allowing Bahamas-based investors to acquire portions of the debt. This was achieved by relaxation of the Central Bank’s exchange control requirements.

Without doubt that initiative’s overall outcome has been positive. But, as was discussed my first article, and using Santander’s recent analysis as a point of reference, the change exposes lingering challenges. This raises the question as to whether the move created any shift in credit market sentiments. Improvement in absolute terms without an underlying readjustment in the perceived risk/reward pay-off is problematic. Intuitively the outcome should not be difficult to accept as the impetus for the change was largely domestic. Any risk analysis of government debt from a local perspective is always likely to be more favourable than that which would be done by external actors. The effort

was highly opportunistic and overweighted on the upside for any local player. The true impact on market sentiment is therefore inconclusive. Policymakers should watch this with keen interest.

The impact Taken together, these issues suggest The Bahamas is not yet out of the woods as it relates to ease of access to global credit markets. Such a thinking is supported by the December monthly economic report from the Central Bank, which stated that from a fiscal perspective the risk to its outlook is that “diminished access to credit markets could constrain the fiscal capacity to stimulate the economy”. This hints at the sobering aspect of new developments. There are prominent risks which could undermine The Bahamas’ ability to achieve the targets laid out in the Fiscal Strategy Report. Its page 61 highlights the challenges faced by the administration in achieving these ambitious and important targets.

Beyond the perennial concern of “let’s hope there is no hurricane this year”, the Fiscal Strategy Report states: “Slowdown in US and global economieseconomy contracts or grows at a slower pace than forecast, reduced revenue and revenue growth, increased expenditure”. And “credit rating downgrade - reduction in credit rating could increase borrowing costs and limit investors’ uptake of government paper. How about “state-owned enterprises - SOEs incur substantial losses requiring intervention”, or “pension costs - pension liabilities higher than anticipated”. Each of these are listed as possible or likely outcomes and, should they occur, each would represent a major risk to the Government’s plans. There are, of course, others with less potential impact. This is a part of the sobering context in which the Fiscal Strategy Report and the country’s economic affairs must be assessed.

This information places, in an important context, the need to sustain the momentum of performing sectors while generating growth in others. It also creates the basis for appreciating the potential headwinds, and policy choices, that the Davis administration could face should any of these materialise.

It is useful to remind ourselves in this assessment that the level of resilience possible with current performance trends will take some time to emerge and harden. Regardless of the challenges and difficulties, a growth outlook remains the only viable antidote, and anything which could

disrupt this should be under active scrutiny. Reforms will therefore continue to have significant influence in this regard. The report very clearly indicates the desire to leverage other industries, such as agriculture, to drive growth. While there can be no argument with this desire, an objective assessment must question the extent to which the necessary reforms or plans will deliver sufficient early value to align with the aggressive four years’ timeline. While the Fiscal Strategy Report envisions a number of important reforms, history argues against the speed of implementation necessary to actively support the growth ambitions. One thing which is evident is that the lesser-performing sectors are likely to demand more time to become sufficiently potent so as to drive the growth envisioned by the Fiscal Strategy Report projections . Using existing sectors as strategic platforms for expansion and diversification must be considered. The objective must be to domesticate more of the earnings from tourism and financial services.

The thinking is that it is easier, and more efficient, for The Bahamas to benefit from its best assets as opposed to working harder to expand utility and gain from lesser performing possibilities. This should not be interpreted as an argument against growing the other sectors.

The private sector

The connection between economic planning and the private sector needs careful consideration. As stated elsewhere, one thing which is critical on the debates around the Fiscal Strategy Report is for the emergence of a clear plan that the private sector can “sink its teeth into”. Only the private sector can grow the economy. As noted by the Prime Minister in his recent mid-year Budget presentation, liquidity in the banking sector continues to expand. The expansion of liquidity is itself a signal of investment weakness in the domestic market. It was further pointed out that this expansion is taking place against the backdrop of poor access to credit by businesses, which is a significant constraint on economic growth. This is indicative of the fact that the private sector is in need of greater facilitation.

Given that it is the private sector that grows economies, there are important reconciliations necessary. From my perspective the answers to a few basic questions could provide great insight into how well aligned and ready we are. Where exactly are

the hooks for the private sector to place its hitch, based on the outlook in the Fiscal Strategy Report? Is the general public, and therefore interested and emerging entrepreneurs, generally aware of discussions between the two sectors? Is there general congruence between the thinking outlined in the Fiscal Strategy Report and the public means of driving and facilitating private sector innovation and growth? Is there understanding and commitment between the two sectors as to the outlook and reforms needed?

Even with the most optimistic outlook, a local environment characterised by a financial market with expanding excess liquidity, and limited access to business credit, has to be worrying for policymakers. If banks are not lending then the next best use of this excess liquidity should be the reordering of the national debt by borrowing directly from depositors rather than the banks. The economic circumstance of The Bahamas is too critical to leave such monetary resources idle.

Optimism

The outlook projected by the Fiscal Strategy Report is without doubt reasonably optimistic. The optimistic view of the Government captured in the Fiscal Strategy Report was given life in the mid-year Budget debate just completed. Based on the foregoing discussion, I take the view that there is cause for looking ahead positively. Regardless of one’s outlook, I believe doing otherwise is not in the best interests of The Bahamas. As a country we must seek to move ahead strategically, pragmatically positively. We must not, however, ignore the warnings and signals, or lessen the potential of a clear and unequivocal call to action by all sectors and participants in the country’s interests.

• NB: Hubert Edwards is the principal of Next Level Solutions (NLS), a management consultancy firm. He can be reached at info@nlsolustionsbahamas.com. He specialises in governance, risk and compliance (GRC), accounting and finance. NLS provides services in the areas of enterprise risk management, internal audit and policy and procedures development, regulatory consulting, anti-money laundering, accounting and strategic planning. Hubert also chairs the Organisation for Responsible Governance’s (ORG) Economic Development Committee. This and other articles are available at www.nlsolutionsbahamas.com.

Hubert edwards by

‘FIRST IN A LONG TIME’: MINISTER HAILS PRIMARY BUDGET SURPLUS

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net

A CABINET minister yesterday hailed the mid-year Budget’s $4.9m primary surplus as “the first in a very long time” and a signal that The Bahamas is no longer having to borrow to pay interest on its existing debt. Michael Halkitis, minister of economic affairs,

told the RF Bank & Trust Economic Outlook conference: “For the first half of this fiscal year, the primary balance reflected a surplus of $4.9m - a major variance from the primary deficit of $41.2m in the previous year. This primary surplus is the first in a very long time.” A primary surplus means that the Government’s revenues exceeded its recurrent (fixed cost) spending for the six months to end-December 2022.

PARADISE ISLAND LIGHTHOUSE

This measurement strips out interest payments on the Government’s existing debt from the expenditure calculation, which means it did not have to borrow during the 2022-2023 fiscal year’s first half to cover its debt servicing costs.

Summing up the 20222023 mid-year Budget performance, Mr Halkitis said: “As a result of net borrowing activities, central government debt increased by $236.2m to $11.036bn,

PM says PI’s lighthouse developer must reapply

FROM PAGE B1

Crown Land footprint from seven to four acres, and no longer appears to need the two that it was contesting with Mr Smith, it would appear a potential pathway has opened for the two investors and projects to coexist side-by-side.

The Prime Minister also responded to concerns raised by Save the Bays activist, Joe Darville, and Atlantis president and managing director, Audrey Oswell. He suggested that Mr Darville reserve his criticism of the Government’s approval of Royal Caribbean’s $100m Paradise Island project until all the facts about the project have been presented.

He added that the cruise giant is developing its own land and is only requesting that the Government partner land with it to make the visitor experience more “palatable”.

Mr Davis said: “He has to understand what the deal is like. I mean, we ought to speak when we know all the facts. I will not be presiding over a decision that leads to the consequences that he’s suggesting.

“What he has to appreciate is that Royal Caribbean, they already own several acres of land here. They’re developing their own land. And they’re asking for us to partner with them with our land to make the experience for visitors more palatable. And in that partnering, the people in The Bahamas will not be left out.”

Mr Davis also addressed Ms Oswell’s concerns about the economic and environmental repercussions of the Royal Caribbean development. He said: “Her concerns are legitimate concerns, and I think they may have been ahead of themselves in the sense that those concerns all will be taken into account when

DESPITE OBJECTIONS, CHEVRON SAYS IT REPORTED OIL PRICE DATA

By ADAM BEAM Associated Press

CHEVRON said on Tuesday it reported how much money it made in January from selling gasoline in California, disclosing the data after regulators threatened to fine the company for not following a new law aimed at investigating the cause of the state's high gas prices.

The law requires oil companies to report their monthly "gross refining margin," the difference between how much refineries paid for crude oil and how much the company sold it for as gasoline. State lawmakers and regulators believe the data will give them a clearer picture of what has driven sharp increases in California's gas prices, which are consistently the highest in the nation.

Chevron spokesperson Ross Allen said the company filed a "revised response" late Tuesday afternoon with regulators that included the data required by law. He said the company was never out of compliance with the law, noting they began reporting the data March 2 — the deadline for oil companies to report January pricing data — and supplied the rest of the information after seeking clarification from the California Energy Commission.

"Since the statutory guidance was unclear, rather than speculate and supply inconsistent and potentially inaccurate data, Chevron exercised its statutory right to object and seek clarification in a timely manner," Allen said.

State law requires much of the data to remain confidential. Representatives with the Energy Commission did not respond late Tuesday afternoon to confirm if Chevron had filed the data.

Gas in California is always more expensive because the state has higher taxes and fees than other states and requires a special blend of fuel that's better for the environment but more expensive to produce.

Last summer, however, the average price of a gallon of gasoline in California was more than $2.60 higher than the national average, a difference that regulators and state lawmakers said was too large to be explained by taxes and fees.

Gov. Gavin Newsom has accused the state's big five oil companies of price gouging. He has asked the state Legislature to pass a firstin-the-nation law that would penalize oil companies once their profits surpassed a certain threshold.

The proposal is still pending in the state Legislature. But starting in January, a new law required oil companies to disclose more data about their pricing. That data could serve as the threshold for any new penalties on oil profits in the future.

Of the big five oil companies that provide 97% of the state's gasoline, four of them met the March 2 deadline for reporting January pricing

data: Marathon Petroleum Corporation, PBF Energy Inc., Phillips 66 and Valero Energy Corp., according to the California Energy Commission, which collects the data.

which equated to 86.9 percent of GDP at the end of December 2022.

“This is equivalent to the rate at the end of June 2022 and, at the end of December, domestic debt accounted for 53.1 percent of central government debt, whereas foreign debt accounted for 46.9 percent of total central government debt.

“And, just back to the issue of the debt-to-GDP at 86.9 percent at the end of December, when we compare that to just over 100 percent in June 2021 we see, again, that moving in the right direction when we look at the overall deficit position.”

And, while the Government has revised the projected full-year deficit

for 2022-2023 upwards to $575.4m compared to the original $564m forecast, Mr Halkitis said: “The deficit as a percentage of GDP we forecast to come in still at 4.3 percent, which was forecast at the last Budget that was presented in June 2022, and so these are indeed current encouraging signs.”

the final decisions are made in respect to what the development looks like.

“They still have to go through the environmental process to determine what is environmentally friendly. That’s not my call; that is the Department of the Environmental Planning and Protection Agency. They will look at what is there and they will tell us about the environmental impact that the development has, and they will decide whether it will go on in that in the form or fashion.

He added: “In respect to the other issues she raised, we are all concerned about those issues and until those are addressed properly, the project will… and this is what was communicated to them, they are speaking as though the decision has been made without these concerns, being taken into account.”

PI project concern over ‘compelling opportunity’

Nassau and Paradise Island side, plus opportunities to redevelop downtown and Bay Street by creating waterfront access to properties on the harbour.

“Our environmental concerns are around a couple of key things,” he told this newspaper. “We think any expansion of the shoreline, the beach, putting any structures or jetties there, has the potential to change the beaches of Paradise Island.

To the extent the coastline of Paradise Island is changed, there’s economic implications for Atlantis, Four Seasons (the Ocean Club), and everyone else who benefits from the beautiful natural beaches.”

Mr Roberts said further congestion in an an alreadycrowded harbour threatens

“to restrict the amount of growth that’s happening with marina development opportunities in Nassau that are already underway”. Pointing also to efforts to revive downtown Nassau, he added: “As those properties get developed in future, part of the draw will be to add marinas to those areas.

“Congesting the harbour even further will restrict the development opportunities for vacant land we own but also on the Nassau harbourside. There’s a real opportunity on the Nassau side to cause an improvement to downtown”. This opportunity, Mr Roberts argued, centred on the waterfront and access via boat to Bay Street properties on the harbour.

“Part of the revitalisation of downtown Nassau is

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL

The Public is hereby advised that I, RENEE MARCIA KELLY of Golden Gates #2, New Providence, The Bahamas, Mother of CARTER MASON SAINTILIEN A minor intend to change my child’s name to CARTER MASON KELLY If there are any objections to this change of name by Deed Poll, you may write such objections to the Deputy Chief Passport Officer, P.O. Box N-742, Nassau, Bahamas no later than thirty (30) days after the date of publication of this notice.

harnessing those properties, and a big part of that is the waterfront,” he said. The prospect of an overcrowded Nassau harbour will have to be addressed by policymakers, Mr Roberts added, not Atlantis, but he said any assessment of the potential impact from Royal Caribbean’s project must not just focus on “what exists on Paradise Island today but what could be developed in downtown Nassau in the future”.

The Atlantis executive said the timing of any development activity on the former Club Med site is “still uncertain”, but he added that this could depend on the final nature of the Royal Beach Club and whether Atlantis’ environmental and other

concerns have been fully addressed. “It really depends on the scale,” Mr Roberts said. “The earlier version of the Environmental Impact Assessment (EIA) and project envisioned 3,500 cruise passengers experiencing this on a daily basis. That’s a whole lot of people on 17 acres and a very narrow beach. That’s a whole lot of people.”

Chester Cooper, deputy prime minister, was reported as saying the Royal Beach Club will only accommodate 1,000 passengers per day. This represents a more than 71 percent reduction to the originally-proposed 3,500 and, given that Riyal Caribbean is still maintaining a $100m investment, it is difficult to see how it will

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL

The Public is hereby advised that I, PATRICK WALLACE of Nassau Village, Nassau, Bahamas, intend to change my name to PATRICK WALLACE ADDERLEY 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.

generate a profit from such a reduction in capacity.

Mr Roberts, meanwhile, said there was also “the potential for noise” to impact plans for the former Club Med site, while there were issues with “odor control” if Royal Caribbean constructs a waste water treatment plant in close proximity. And hundreds of cruise passengers close to a high-end residential development may not be the best fit. Asked what would happen to plans for the former Club Med property if the Atlantis/ Brookfield concerns were not addressed, Mr Roberts replied: “I think they’re concerned enough that they would stop working on that and analysing development opportunities if the project goes ahead and concerns are not addressed satisfactorily.

“That property [the former Club Med] has sat vacant for a while. I do think it’s perhaps the most compelling real estate development opportunity in Nassau/Paradise Island.”

Mr Roberts based this assertion on the current success of the destination, as well as properties such as Atlantis, Baha Mar and Albany, plus the site’s close proximity to the harbour and Nassau Cruise Port. “It’s probably the most attractive development site in The Bahamas,” he reiterated. Pristine beaches, water and marine life, as well as the overall environment, represent the main draw that Atlantis and other resorts use to attract guests to The Bahamas. Hence their concern should anything emerge to potentially threaten this, such as the

uncertainty surrounding Royal Caribbean’s plans for western Paradise Island and the Colonial Beach area.

“The potential changes to the coastline and expanded beach could be a huge threat to our beaches, which is the future,” Mr Roberts told Tribune Business. “It’s huge. If you just look at our marketing materials, what we feature is the beach, the water and the marine life. It’s a huge part of the ethos of Atlantis; the marine life, environment and habitat. We do a lot of work to recover and rehabilitate marine life.

“It could change the character of the shoreline for all of Paradise Island, and potentially the beaches along the north shore of New Providence. If there’s change that causes risk to marine habitats we have, or the beaches we have... that’s part of what creates economic risk for us.”

Mr Roberts refuted suggestions that Atlantis was opposing Royal Caribbean’s because of the competition it presents for cruise passengers. He pointed out that the mega resort now accepts fewer cruise passengers on day passes to its water park because it is focused on the experience provided to resort guests and does not want to overcrowd its facilities.

Atlantis is also focused on yield management, and using data to determine which cruise ships and lines “provide passengers that yield better for us”. Mr Roberts added: “There’s a way for us to have the business perform better with less people” by reallocating tickets and passes to the better-yielding cruise lines.

NOTICE

NOTICE is hereby given JENNIFER RICHARDS of Franaipani Avenue, 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 twentyeight days from the 8th day of March, 2023 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

NOTICE

NOTICE is hereby given that LINDA LYNN BELIZAIRE of Boyd 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 15th day of March, 2023 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

JOB OPPORTUNITY

ACCURAD IMAGING CONSULTANTS SEEKING RADIOLOGIST

AccuRad Imaging Consultants is a diagnostic imaging reporting/teleradiology company operating in the Bahamas. AccuRad provides diagnostic imaging reporting services to facilities and doctor’s offices throughout the Bahamas. The imaging modalities reported include, but are not limited to, x-ray, mammography, CT, ultrasound and MRI. AccuRad is seeking a fellowship trained radiologist to join the practice. Fellowship training in oncology imaging and neuroradiology is preferred. On-site work is not required. The candidate is expected to be able to provide coverage on weekends and/or stat holidays. Occasionally, there may be overnight coverage requirements. Competency in reporting all above mentioned modalities is a must. Only candidates who have completed a full radiology residency program and attained board certification by examination will be considered. Fellowship/subspecialty training must have been acquired at an accredited institution in the US, Canada or UK. All applicants must be eligible for specialist licensure in the Bahamas.

Bahamas could gain $140m from 15% minimum taxation

Halkitis said of the impact from levying a 15 percent corporate tax on Bahamasbased subsidiaries of major multinational groups. “That could change as more analysis is undertaken.

“As we consider any changes we make, we remain satisfied that the 2024 deadline is not hard and fast, and as a country without corporate income tax there is a need to implement a legislative and administrative framework” to implement the 15 percent minimum rate.

The minister pledged that, despite the corporate income tax reform, the Government will seek to ensure that The Bahamas maintains its economic competitiveness through a tax system that stimulates both Bahamian and foreign direct investment (FDI).

But, warning that the 15 percent minimum tax likely represents only the start, not the end, of the OECD’ latest tax-related moves,

Mr Halkitis said the 750m euro threshold will likely be progressively lowered to capture more and more companies in the net with the Paris-based forum’s final destination likely a one-size-fits all global system where taxes and rates are the same across all countries.

“I think we should recognise that this is not the final salvo so to speak,” the minister added. “In my view this is a crack to open the door..... This is not the last, I believe, we will hear from the OECD on global tax. I believe their objective is to have one international tax rate.”

He repeated this assessment later on, adding: “My personal opinion, I think the objective is to have one international tax rate for everybody. I think this is a crack in the door. I don’t see it ending here. I see eventually a lowering of the threshold to try and have everybody have one tax rate.’

The 750m euro turnover threshold means that, at present, only Bahamasbased entities that are part of multinational groups with revenue above this level will be subject to the 15 percent minimum corporate tax. However, if this is lowered, more and more companies across all sectors face being caught in the net.

Ryan Pinder KC, the attorney general, warned in a recent address: “A corporate income tax is clearly a novel approach in The Bahamas and will have significant regulatory reform for the country in tax administration, affecting almost every area of the cross-border economy.”

And the Ministry of Finance, in a paper on the issue released last year, said: “The imposition of a corporate income tax would necessitate a significant reform of Business Licence fees, very likely including the elimination of the turnover-based annual fee for the vast majority

of Bahamian businesses. As such, the net annual revenue gain from a new corporate income tax would most certainly be significantly reduced.”

The Government is due to shortly launch a wideranging public consultation that, while addressing the 15 percent minimum tax issue, will also look at the options for a broader and more comprehensive overhaul of The Bahamas’ taxation system. Several observers have argued that moving to income-based taxes, and away from the current regressive consumption-based structure, will introduce greater equity and fairness as taxes are linked to ability to pay.

“We don’t have that tradition of net taxation. The taxation we have on the corporate sector is the Business Licence fee,” Mr Halkitis said. “There is no taking into consideration expenses etc. The recurring excuse used over the course of our history is we did

not have the expertise or administrative capacity to do audits and verification.”

He added that implementing any income tax-based system, such as the 15 percent minimum corporate version, “won’t be easy” for The Bahamas to accomplish and will “require tremendous investment in capacity building and training of individuals” in taxation.

Kevin Moree, attorney and partner at McKinney, Bancroft & Hughes, told the panel discussion that implementation of the 15 percent minimum corporate tax at the current turnover threshold was unlikely to have a negative impact on the Bahamian financial services industry.

“I’m not sure there’s going to be a massive effect on the financial services industry here,” he said. “I don’t think we’ll see clients and financial services providers flee the jurisdiction because we’ve signed on to this.” He argued that more

Gas station operator’s relief faith ‘now 120%’

FROM PAGE B1

Bastian declined to comment on the specifics of what was discussed, or the potential relief on offer from the Government.

However, while the Prime Minister and other Cabinet ministers reiterated that they will not permit the retailers’ long-sought after margin increase for fear of the impact it will have on families and businesses already struggling with the cost of living crisis, they indicated their willingness to undertake a wide-ranging review of the petroleum sector’s cost and pricing structure.

This would likely not be confined to retailers, but also analyse the wholesale level (Esso, Rubis and Shell) too. And Michael Halkitis, minister of economic affairs, yesterday suggested the Government may also explore the “central purchasing” used by other Caribbean countries.

“We resolved to look at the entire model,” Mr Halkitis said. “Certain Caribbean countries have a system of central purchasing. We want to take a look at that and see if that is suitable in our environment. And we just want to look at the entire chain - from wholesale straight down to the consumer and just examine it.

“So there’s nothing we want to propose right now, but it’s just some other options that we’re looking at. And I could tell you that, you know, if you look right down the chain, everyone is going to say they’re under pressure. The overall concern of the Government is anything that would cause an immediate increase in gas at the pumps for consumers.

“And, as you know, it’s not only consumers but business people, for example, who have vehicles, and so any of those increases would trickle right down”. Mr Halkitis said the Government is sympathetic to the rising costs the dealers are facing, and said: “We understand their plight, and they are under a lot of pressure. They are faced with things, those who are leasing premises, for example, are faced with very high rent and other associated fees.

“And they are faced with rising costs, as everybody in the economy is, and so they are being squeezed. We reiterated to them that we are sympathetic; sympathetic to their plight. As far as we can, we have brought relief in the past, and we will see how we can bring it in the future.”

“There’s no easy solution. We just want to reiterate to the petroleum dealers that we are not unsympathetic. We are sympathetic to their plight, and their issues range from rents to franchise fees to bank charges to being charged to deposit cash, and they’re a cash intensive business,” Mr Halkitis said.

“Credit card fees and any number of things increasing including the private arrangements that they make with their own wholesalers. And so, again, we don’t think that the simple solution is just to increase the margin because you pull one thread and it has it has impacts all straight through.”

The minister said the retailers have submitted proposals for the Government to review, and it is looking at the entire distribution chain when considering a relief

NOTICE

NOTICE is hereby given that JENIKA NOCIUS of #2 Garden Hills, P.O. Box N-902, 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 twentyeight days from the 8th day of March, 2023 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

NOTICE is hereby given that ISMANETTE DEMOSTHERNE of Brougham Street, 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 twentyeight days from the 15th day of March, 2023 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

strategy. “They presented us with a proposal. We will study it, we will resolve to look at the entire system of how fuel is purchased by retailers, and then resold to consumers.

“So the entire importation, the wholesaling and down to the retailing, and what can be done anywhere along that chain to bring some relief to them. We agreed to in about a week-and-a-half come back

together where we can have some concrete proposal.

But once again, you know, our overriding position is we don’t want to do anything that leads to a direct increase in prices at the pump at this time”

pertinent questions are whether the Bahamian government will get to collect this tax itself and how the proceeds will be spent.

Questioning whether the funds would be reinvested into boosting the financial services industry and ease of doing business, or be placed into the Consolidated Fund, Mr Moree also warned that if the Government sought to go beyond the G-7/OECD demands and conduct a “general overhaul” of the Bahamian taxation system then it would “require a ton of work, a ton of expertise and a ton of time”.

He added that the Department of Inland Revenue would also have to focus on becoming responsive in addressing taxpayer questions and concerns, given the complexity of calculating the amount of income tax owed, as opposed to just concentrating on revenue administration and collection.

The Prime Minister reiterated that the Government is sympathetic to the retailers, and said he is confident a solution that is mutually beneficial will be found.

Philip Davis KC said:

“The retailers have serious issues concerning their survivability in the context of what’s happening worldwide. A lot of the challenges that they face I’m sympathetic to, and I understand their need to survive. I ask them to give us another two weeks to assess the situation, see how we could help them.

“The challenge we have is how we prevent further burden on the travelling public. And we need to see how we could delicately balance bringing relief to them and, at the same time, not overly burdening the consumers. But I can say that the meeting that we had for several hours yesterday [Monday] was fruitful. I think that we’ll be able to arrive at a solution that serves the common good of all.”

BAHAMAS Petroleum Retailers Association (BPRA) members.

YESTERda wordSEarch

Quick croSSword across: 1 Acclimatise, 9 Inn, 10 Terrorism, 11 Index, 13 Leonine, 14 Safety, 16 Adjust, 18 Tourist, 19 Felon, 20 Detriment, 21 Win, 22 Originality. down: 2 Can, 3 Latex, 4 Merely, 5 Twofold, 6 Spiritual, 7 Vicissitude, 8 Impertinent, 12 Defaulter, 15 Tailing, 17 Strewn, 19 Fatal, 21 Wit.

R R O G T I U G E

Sudoku is a number-placing puzzle based on a 9x9 grid with several given numbers. The object is to place the numbers 1 to 9 in the empty squares so the each row, each column and each 3x3 box contains the same number only once. The difficulty level of the Sudoku increases from Monday to Sunday

targEt thE alphapuzzl across: Javelin, Alive, Calorie, Window, Heroic, Saviour, Brain, down: Narrow, Enclaves, Elevator, Quarry, Vertebra, Bleak, Canine.

rEckoNiNg coin coking cone conger conk conker conking coring corking corn corning cringe crone eking encoring genic gone goner grin groin icon ignore ikon inner iron king krone neck necking neon nice nicer nick nicker nine nock nocking nonce none oink once reckon RECKONING region reign rein renin ring rink rocking

and-corner, 20 Rayon, 21 Malaria.

Down: 1 Repel, 2 Fundamentally, 3 Archaic, 4 Notice, 5 Swine, 6 Taken prisoner, 7 Pungent, 11 Further, 13 Embroil, 14 Seldom, 16 Again, 18 Larva.

Atlantis urges ‘more robust’ EIA from Royal Caribbean

intends to handle, treat and dispose of both solid waste and wastewater from a site that is not accessible by land and can only be reached by sea. Mr Roberts said the mega resort, which together with Baha Mar is The Bahamas’ largest private sector employer, had been “quite alarmed” and “quite surprised” to hear that the Royal Beach Club was approved and set to break ground imminently.

The Prime Minister subsequently reassured Atlantis that the latter event is not scheduled to occur until all environmental issues have been satisfactorily resolved, and Mr Roberts yesterday called on Royal Caribbean to be “proactive” in addressing the concerns raised by itself and others. The 28 questions have since expanded to 50.

“We’ve followed the whole project very closely. We’ve just continued to pay very close attention to it. It’s part of Paradise Island, and we’re the master developer of Paradise Island,” he told Tribune Business, recalling how the initial Royal Caribbean EIA was presented in September 2021.

“One of the biggest problems was the EIA was not comprehensive enough for a project of this size. It wasn’t clear, even in the EIA, what

the plans were for waste water and waste water treatment.... Coming out of that process, Giselle [Pyfrom, Atlantis’ attorney] and I were quite vocal raising questions. There just wasn’t enough information in the EIA.

“We went back with 28 questions that we submitted in October 2021, mainly concerning the environment and how to deal with waste water and waste management.” Mr Roberts said Atlantis followed up with Royal Caribbean, the DEPP, minister of the environment and the respective offices of Prime Minister Philip Davis KC and deputy prime minister Chester Cooper in a bid to obtain the answers it was seeking, but to no avail.

Then the Government suddenly announced last week that it had approved the Royal Beach Club to proceed provided it obtained the necessary environmental permits. “From our perspective, it certainly doesn’t give us a whole lot of confidence in the DEPP process going forward to not get any response to questions from 2021,” Mr Roberts told this newspaper.

“We were quite surprised to hear the project had been approved, and see an article quoting the Prime Minister that work would start almost immediately. We

were quite alarmed because we had all this discussion trying to figure out how Royal Caribbean was going to address some of the issues that were raised... We weren’t aware of how close it was to getting approval.”

Asked how optimistic Atlantis is now, following Mr Davis’ intervention, that its concerns will be addressed and it will receive the answers it is seeking, Mr Roberts replied: “I think we’re more confident now than we were a week ago.

I think the response to our move has raised the visibility of it for the public and the Government. Our commitment is to continue to follow it and be open with the public on our concerns.”

He emphasised that Atlantis was not seeking to unduly derail, block or disrupt Royal Caribbean’s Paradise Island but, rather, ensure that the pristine beach, water and marine environment that forms the bedrock of its investment in The Bahamas - and that of other Nassau/ Paradise Island resorts - is not unnecessarily disrupted or harmed.

Affirming that the mega resort is willing to find “common ground” with the cruise giant and work with it, especially since it has experience itself in operating both reverse osmosis and

wastewater treatment plants, Mr Roberts confirmed that Atlantis met with Royal Caribbean executives in January 2023 to discuss the issues presented by its Royal Beach Club plans.

“We met with them in January this year,” he confirmed. “At that point they were still in discussions with the Government over their new proposal, so they were not very forthcoming with the information they put on the table at that time, but made a commitment to collaborate with us.”

Another meeting between the two sides was already scheduled for March 24, and Mr Roberts said he hopes it will still proceed despite a public airing of the issues. He added that Atlantis had followed up twice since January seeking answers to its queries, and this had been acknowledged by Royal Caribbean.

Tribune Business understands that Royal Caribbean was both blindsided, and taken aback, that Atlantis and its president and managing director, Audrey Oswell, went public with the resort’s concerns. It was suggested that the January encounter was instigated by the cruise giant - rather than the resort - as it sought to foster a good relationship with its potential Paradise Island neighbour.

One source, speaking on condition of anonymity, acknowledged that Royal Caribbean had not answered many of Atlantis’ questions bit argued that, at this stage, it was impossible to provide some of the details being requested because amenities such as the proposed waste water treatment plant were still in the design phase.

Mr Roberts, meanwhile, said he believes Royal Caribbean will have to submit a revised Royal Beach Club EIA and Environmental Management Plan (EMP) given that the project’s “scale has changed”. He added: “I’m hopeful Royal Caribbean would have used the comments we provided to inform some of the design elements they submit in the EIA.

“I guess the request is for the process to be more robust, and for the EIA to be more robust and cover these things. We’re just hoping to have a very robust EIA that will hopefully address the issues because the concerns have been out there for 18 months, and when we go through that process the concerns of the public are raised and investigated through that process, and the process is responsive.

“That is so we don’t sit for 18 months wondering what is happening on the project, and that it doesn’t move

forward without a thorough

EIA...... It’s been quite disappointing to have had to get to the phase where we had to go public. The concerns, we think, can be addressed. It may come at some cost, but the concerns can be addressed.”

Listing deficiencies identified by Atlantis with the first EIA, Mr Roberts called on Royal Caribbean to “make clear” how it will deal with waste water and the treated product, and if the Water & Sewerage Corporation will be involved in helping to provide a solution.

And, given that significant solid waste will be generated by hundreds of passengers visiting on an almost daily basis, he questioned how this would be moved to the New Providence landfill given the absence of land/ road access to the western Paradise Island site.

“They didn’t do a comprehensive study of what marine life was there,” Mr Roberts said of the first EIA. “They just didn’t do a thorough survey of existing conditions to really analyse the impact. This wasn’t a thorough EIA, and it’s hard to tell what was being proposed as there were some inconsistencies in the drawing and the narrative.”