05012019 BUSINESS

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WEDNESDAY, MAY 1, 2019

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Insurers ‘very close’ to Govt cut national debt by $26.4m VAT dispute settlement during fiscal Q3

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

B

AHAMIAN insurers were yesterday said to be “very close” to resolving their valueadded tax (VAT) dispute with the government that has been “hanging over” the sector for the past year.

Tom Duff, Insurance Company of The Bahamas (ICB) general manager, told Tribune Business that property and casualty insurers were eager “to get this behind us” with a settlement possibly occurring within the next fortnight.

He added that the taxrelated uncertainty was “never good” for business, with ICB’s 2018 audited financial statements revealing it had been forced to take a $378,802 provision to cover potential VAT liabilities stemming from the dispute.

• ‘Compromise’ may be agreed in ‘week or two’ • ICB forced to take near-$400k ‘contingency’ • Will end year-long ‘locking horns’ with govt

This contingency impacted 2018 profitability at ICB, the affiliate through which BISX-listed JS Johnson places much of its insurance business, by playing a major role in reducing a $2.155m underwriting profit to net income of $1.729m.

Mr Duff, though, voiced optimism that the property and casualty industry’s “locking of horns” with the Minnis administration would soon end as a result of the “compromise position” the sector and government were preparing to accept.

While providing no specifics on the proposed resolution, the ICB chief disclosed that the quarrel stemmed from whether

general insurance underwriters could recover VAT on all or only some claims that were settled on a cash basis.

While the insurance industry felt it had achieved “a clear understanding” with the former Christie administration that VAT was recoverable on all such claims, its successor adopted the position that this was only the case where the insured client was a VAT registrant - meaning a business with a turnover greater than $100,000 per annum.

As a result, Bahamian property and casualty insurers were faced with being unable to recover “the VAT portion” of any Hurricane Matthew-related

claims paid out to residential homeowners and other non-VAT registrants. Given the $400m in insured damage inflicted by that storm, this left the industry facing a massive, unexpected multi-million dollar financial burden.

Confirming that ICB’s “tax assessment provision” related to the wider sector’s dispute, Mr Duff told Tribune Business: “The industry is almost in a position where it can reach an agreement with the Department of Inland Revenue (DIR) with regard to this dispute on VAT. “We’ve made the provision in anticipation of having to make certain

SEE PAGE 4

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE government lowered its direct contribution to the national debt by $26.4m during the 2018-2019 fiscal year’s third quarter, its just-released “fiscal snapshot” reveals.

While its “net liabilities”, or additional debt incurred as a result of borrowings, had risen by $227.9m for the nine months to end-March 2019, this represented a decline on the $254.3m generated during the fiscal year’s first half.

As a result, the government’s direct debt actually fell from $7.497bn at yearend 2018 to $7.471bn at end-March 2019, which also likely reflects the budget surplus achieved over the January-March period.

The government undertook some $830.3m of borrowings during the first

nine months of the 20182019 fiscal year to meet its financing needs, with virtually all this sum - some $824m - denominated in Bahamian dollars. Debt repayments worth $602.4m, with some $526.2m of this figure going to local currency obligations, resulted in the addition of $227.9m to the national debt.

The report also revealed that the government has reduced the amount of outstanding advances owed to the Central Bank of The Bahamas by more than 50 percent during the current fiscal year, reducing this sum by $65m from $125m at end-June 2018 to $60m at end-March.

This comes as the government moves to reduce its reliance on the Central Bank, repaying it some $109m over the first nine

SEE PAGE 4

Lucayan managers BICA chief: Govt faces 20% revenue shortfall • Income could come in $400m off-target ‘unanimously’ agree • Deficit headroom can be ‘easily eaten up’ • Wants fixed-cost spending to ‘stop rising’ $4.4m payout deal

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net GRAND Lucayan managers were yesterday said to have “unanimously” accepted the government’s improved $4.4m payout deal, with a trade union leader expressing delight at the outcome.

Obie Ferguson, the Bahamas Hotel Managerial Association’s (BHMA) president and chief negotiator, told Tribune Business yesterday that a meeting with Dionisio D’Aguilar, minister of tourism and aviation, is set for this Sunday to finalise details of the agreement.

“I am very pleased, as president of the Bahamas Hotel Managerial Association, for the support I received from my vicepresident, Kirk Russell, in Grand Bahama and the property representatives there in Grand Bahama, and obviously the support of the 145 managerial and supervisory workers,” Mr Ferguson, the Trades Union Congress (TUC) president, said.

“I want to thank them for the collaborative effort they displayed, and the support and confidence they had in the association, which resulted in us reaching a compromise agreement to the tune of some $4m-plus which I hope will be paid as soon as possible.

“We have a meeting

OBIE FERGUSON scheduled with the minister of tourism on Sunday, at which time at we will finalise the documentation and proper execution.

Hopefully a date will be set for when the actual payout will take effect. I would be remiss if I did not mention the support and forthrightness of the minister of tourism. He did what he had to do, and he is a numbers man.”

The voluntary payout fro Grand Lucayan managers has dragged on for more seven months, becoming contentious at several stages. The Grand Lucayan’s Board and Minnis administration originally took the position that they had committed an extra $500,000 of taxpayer monies over and above what BHMA members were due under the law in a bid to settle, and were not prepared to go beyond a $3.1m-$3.2m offer.

“There are some 46 workers left, and

SEE PAGE 4

THE Bahamas Institute of Chartered Accountants (BICA) president yesterday warned the government could miss its full-year revenue target by “as much as 20 percent” based on current data.

Gowon Bowe told Tribune Business that the government needed to determine the reasons for the virtually-guaranteed 2018-2019 revenue “shortfall” so that it avoided “repeating” this in the upcoming 2019-2020 fiscal year, thereby exposing itself to the risk of much higher deficits and debt than projected.

While acknowledging

GOWON BOWE the government’s success in holding the deficit for the first nine months to $129.2m, a 51 percent year-over-year reduction

that was aided by a $40m budget surplus for the January-March period, Mr Bowe said it would likely have wanted a better performance during that quarter to help carry it through to the June year-end.

With revenue intake likely to fall given that the Bahamian economy has passed the peak of the winter tourism cycle, and there are no projected fiscal fourth quarter boosts from the likes of business licence fee payments, the BICA chief backed the

government’s caution and focus on spending controls to ensure it hits the yearend $237m deficit target.

“The only worrying element is the first quarter of the calendar year happens to be the one where you want to run as big a surplus as you can,” Mr Bowe told this newspaper of the government’s nine-month “fiscal snapshot” and performance report.

“The fact they did not run a higher one in that quarter means, as the deputy prime

SEE PAGE 4

Bahamas Waste chief hails ‘best year in 30-year history’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net BAHAMAS Waste’s chairman has hailed the company’s “best year in its 30-year history” after 2018 profits soared 18 percent year-over-year to $1.348m.

Peter Andrews, writing in the BSX-listed waste collection and services provider’s annual report, said all top-line, expenses and net income indicators moved in the right direction in a “non-remarkable year” where the company failed in its bid to take over the New Providence landfill’s management.

“2018 was the best year in the 30-year history of your company,” Mr Andrews told Bahamas Waste’s 1,500

• Net income up 18% in ‘non-remarkable year’ • Waste-to-energy landfill bid not selected shareholders. “For the year, the sales and services rendered increased by six percent as compared to the year 2017, in a non-remarkable year from a special project point of view.

“Our expenses, which includes cost of sales and direct expenses, and operating expenses, decreased by four percent and our net income was up by 18 percent. Earnings per share were the highest ever ($0.34) as were the dividends ($0.24). All in all a very good year.”

Mr Andrews also touted the increase in Bahamas Waste’s share price

from $3.34 per share in January to $4.90 at yearend, although this was aided by the company’s ongoing share buyback programme. This initiative, which runs until end-October 2021, has already seen the group acquire some 216,695 of its own shares for collective sum of $675,649.

The Bahamas Waste chairman, meanwhile, signalled that the company would seek further growth avenues for delivering shareholder value after its landfill bid was rejected by the government in favour of the New Providence Ecology Park group featuring

Providence Advisors and a consortium of rival Bahamian waste services providers.

“During the course of the year we provided government with a proposal for the management of the dump, and a waste-toenergy plant,” Mr Andrews wrote. “We were not the chosen bidder for this work.

We will continue to explore new avenues to improve the quality of our environment and to make this a better Bahamas for all residents and our tourist guests.”

Francisco deCardenas,

SEE PAGE 6

PAGE 2, Wednesday, May 1, 2019

BTC CHIEF HAILS LINE STAFF INDUSTRIAL DEAL THE Bahamas Telecommunications Company (BTC) last night confirmed it had agreed a new industrial deal with its line staff union that will expire on March 31, 2020.

None of the terms and conditions were disclosed in BTC’s statement, which even described the arrangement with the Bahamas Communications and Public Officers Union as a “Heads of Agreement”. The 2020 expiry date, though, indicates that the agreement is retroactive and covers at least the two previous years.

Neither Garfield “Garry” Sinclair, BTC’s

chief executive, nor Dino Rolle, the BCPOU’s president, could be contacted for comment before press deadline last night. However, Mr Sinclair said in the statement: “Last August on my arrival, I committed to working with our union partners to ensure a productive and progressive working relationship for the benefit of our team members.

“Though it took some doing, I am happy to say that we have finally agreed to updated terms and conditions to form the basis of a new industrial agreement. I would like to thank the president, Dino Rolle,

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THE TRIBUNE

GARRY SINCLAIR

BTC HEADQUARTERS

and executives of the BCPOU, along with our people team, who worked very hard to bring this long outstanding agreement to a close.”

Mr Sinclair then listed BTC’s priorities when it came to building on “green shoots” of recovery. He listed these as including the reduction in time taken to install services for new customers from 20 days to three days, together with the roll-out of Internet and TV services to areas such as Cable Beach, Ardastra Gardens, Ridgeland Park, Kemp Road and George Town, Exuma.

The BTC chief added

that there had been “massive improvements and upgrades” to all BTC’s retail operations so that every location can “provide end-to-end service at every customer touchpoint”.

“We have also invested in bill payment automation through kiosks in store, giving our customer service representatives the flexibility to provide more personalised service,” Mr Sinclair said.

He also pointed to the “My BTC” mobile app, which gives access to top-up and mobile plan activation, and the BTC Radio mobile app that allows consumers to listen

DINO ROLLE to radio stations as far afield as Jamaica and Haiti, as further signs of progress.

“Our goal now is to justify the trust our customers have placed in our products and services as the telecoms provider of choice for the Bahamian people, and we’ve made some notable progress over the last nine months in this regard,” Mr Sinclair said.

“I want to reiterate that I firmly believe our union partners have an important role to play in the evolution of our very dynamic industry. When we all work together towards the common goal of ensuring that BTC remains a

competitive business for generations to come, there is no stopping us.”

Mr Sinclair added that BTC was now turning its focus to completing an industrial agreement with its managerial union.

“Now that the terms of the BCPOU’s industrial agreement are completed, we have already begun discussions in earnest with the leadership of our management union, which represents almost 100 BTC team members. We are optimistic that we will reach an agreement with the BCMPU in the near future,” he said.

BAHAMAS GREETS US TRADE MISSION MEMBERS of Washington DC’s Chamber of Commerce were hosted to a reception at Luciano’s of Chicago on Monday evening, marking the first day of their trade mission to The Bahamas.

Officials are pictured at the restaurant where KP Turnquest, deputy prime minister and minister of finance, gave a welcome address. Stephanie Bowers, the US embassy’s charge d’affaires, was also in attendance, along with Vincent B Orange Snr, chief executive of the Washington DC Chamber of Commerce.

The trade mission paid a courtesy call on governor general, Dame Marguerite Pindling, yesterday morning at Government House along with members of the Bahamas Chamber of Commerce.

Led by Sidney Collie,

The Bahamas’ ambassador to the US and permanent representative to the Organisation of American States (OAS), the trade mission will continue business networking

events and tours of various local sites while in New Providence.

Also present at Government House were Mr Orange (seated third left), and Jeffrey Beckles, Bahamas

Chamber of Commerce chief executive (seated fourth right), along with other Chamber members.

Photos: Letisha Henderson and Raymond A Bethel Sr/BIS

THE TRIBUNE

By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net THE deputy prime minister and his Opposition counterpart yesterday renewed their verbal battle over whether the Government will hit its 2018-2019 fiscal objectives.

Both K P Turnquest and Chester Cooper, the Exuma and Ragged Island MP, focused on the parts of the nine-month “fiscal snapshot” and budgetary report that best supported their case to blast each other’s party over management of the public finances.

Mr Cooper focused on the Government’s revenue yield for the nine months to end-March, and the likelihood it will miss its full-year $2.651bn target, given that just 63.7 percent of that sum had been collected with three-quarters of the year having been passed.

But Mr Turnquest, not surprisingly, focused on the Government’s $40m budgetary surplus for the January-March period, which had helped to slash the deficit for the first nine months to $129.2m and created the possibility for it to hit its $237m year-end target.

The deputy prime minister branded Mr Cooper as “the modern day Rip van Winkle”, likening him to the fictional character that fell asleep for 20 years only to wake up and find the world much changed. He argued that his Opposition counterpart had slept through the Christie administration’s five years of deficit spending that added $2.3bn to the national debt, which the current administration was now seeking to address.

Yet Mr Cooper said it was “astounding” that the Government was so far behind its revenue projections with just three months left in the 2018-2019 fiscal year, describing this as “a failure of epic proportions”.

“The more fiscal snapshots the Government releases, the clearer the picture of failed policy and bad administration by this government becomes,” he blasted. “It is astounding to learn that the government is $1bn behind its projected revenue target with only three months left in the fiscal year. It’s inconceivable that this administration budgeted so poorly.

“That Value-Added Tax (VAT) was raised by 60 percent, yet the government is on track to fall short of its

Wednesday, May 1, 2019, PAGE 3

DPM and Opposition renew fiscal quarrel KP TURNQUEST

CHESTER COOPER

forecast collection by hundreds of millions of dollars, is a failure of epic proportions. It is a failure that, with three quarters of the year passed, only 63 percent of revenue has been collected.”

Mr Cooper continued: “The minister of finance [Mr Turnquest] knows full well that there is no windfall expected in the last few months of the budget year that will get them close to the target amount. It is clear, and apparent by their own admission, that this administration botched implementation of [12 percent] VAT and other taxes due to poor modelling and a lack of consultation.

“Whose fault is it that hotels and others were given a grace period to implement VAT because the government failed to understand many of their commitments were made with the understanding that VAT would not be hiked?”

Mr Cooper accused the Minnis administration of “shamefully piling taxes and fines on the backs of the poor and a struggling middle class to simply appease ratings agencies and the IMF”.

“The FNM is disgracefully starving capital expenditure, and neglecting infrastructure, in order to hit a rigid deficit target that no one in this country asked for,” he said. “This madness is depriving Bahamians of needed services, all to mask the failure of this government’s revenue collection efforts.

“Now the minister of finance suggests that next year, the budget targets are

expected to be met. If they were so off with this budget exercise, why on earth would anyone believe they will craft a more realistic budget next year?

“There is also an inherent disingenuousness in the characterising of the Grand Lucayan investment as an equity acquisition,” Mr Cooper continued. “We paid out cash and incurred debt through a mortgage with Hutchison to essentially nationalise a hotel that is losing money. The sale is nowhere near imminent and will not be complete by the end of this fiscal year.”

Mr Turnquest, speaking ahead of yesterday’s Cabinet meeting, said: “We have not reached our goal yet.

Obviously we have to wait for the full year, but we are certainly tracking in the right direction. We are 51 per cent down on the deficit year-over-year.

“We continue to be very cautious about making any bold statements in this regards because, again, we still have three months to go, even as we go toward the hurricane season. We looked at our trends and we have done our forecast, and we do believe we will hit our [deficit] target for the end of year and put us on the right path to realising our threeyear consolidation plan and to deliver a turnaround in our fiscal outlook going into the future.”

He continued: “This has been an exercise about changing the way we think about our government finances and spending, and putting in place the fiscal

Swimming pigs take Cannes centre stage EXUMA’S Grand Isle Resort & Spa was yesterday named the official title sponsor of the Fort Lauderdale International Film Festival Beach Soirée, which will take place during the world-renowned Cannes International Film Festival.

The VIP invitation only event, scheduled for Saturday, May 18, will feature a “Swimming Pig Party” inspired by The Bahamas and the swimming pigs.

Steven Savor, a well-known Fort Lauderdale resident and philanthropist, will host the Cannes beachfront party with attendees viewing footage from the new feature film, Pigs of Paradise.

The film, narrated by US astronaut, Scott Kelly, is based off the book, Pigs of Paradise: The Story of the World-Famous Swimming Pigs, written by TR Todd.

“We couldn’t be more thrilled to be the title sponsor of this event and to share the beauty of Grand Isle Resort and Exuma,” said Peter Nicholson, partner and director of GIV Bahamas, its developer.

“As stated by Scott Kelly, Exuma is one of the most beautiful places to see from space, and we are excited to present it to 650 friends in Cannes.”

“Now celebrating our 34th year (and FLIFF’s 30th year in Cannes), the Fort Lauderdale International

Film Festival (FLIFF) is the longest film festival in the world,” said Greg von Hausch, its president.

“We are honoured and delighted to return to Cannes, along with Steven Savor, executive committee member, and one of Fort Lauderdale’s most storied philanthropists for one of the memorable events of the festival celebrating films and artists from around the globe.”

Other event sponsors include GIV Bahamas; Staniel Cay Yacht Club; Makers Air; Impulse Yachts; Lumina Point; Peace & Plenty; One Exuma; Milo Resorts; Philautia; and Earthbeat Films.

laws and rules that will cause discipline.

“It is a bit of a cultural acclimation, if you will, to operating in a disciplined environment. We want to ensure that any programmes and policies we implement are backed by sound fiscal analysis so we don’t end up with the runaway spending.”

The government, though, has collected just 55.6 percent of the 2018-2019 full-year VAT revenue forecast during the first nine months. Mr Turnquest told Tribune Business earlier this week that its major revenue-raising mechanism had performed “in line with projections” during the second and third quarters despite the government’s data giving every indication that fullyear targets will not be met.

Mr Turnquest struck a harsher tone in a statement released later in direct response to Mr Cooper’s remarks. “The Opposition spokesman for finance, Chester Cooper is the modern day Rip Van Winkle,” he charged.

“Having been asleep through the disastrous run of the Christie/Davis team, [he] is now awake and suddenly talkative regarding the fiscal affairs of the country.

“Because he was asleep between 2012 and 2017, he clearly missed the billions of dollars in deficits occasioned by the Christie/Davis team. He missed the four downgrades. He missed the failure to implement fiscal responsibility legislation.

He missed their utter lack of effort in turning the country around.”

Mr Turnquest argued that his opposite number was now witnessing a turnaround, with fiscal transparency provided through the quarterly snapshots; rating downgrades having dried up; and a reduction in the fiscal deficit despite the Government having to pay off some $360m in unfunded arrears.

“After his long five-year slumber, where he apparently had to have missed the chaos and recklessness of the former administration, he is now awake in a different Bahamas with an administration that is embracing accountability and transparency in unprecedented ways,” Mr Turnquest said of Mr Cooper.

“He has an administration that is paying its bills. He has an administration that is telling the people regularly where their money is going.”

Water Corp chair denies minister’s consult reveal

DWAYNE WOODS

ADRIAN GIBSON

By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net THE Water & Sewerage Corporation’s executive chairman yesterday denied a Cabinet minister’s suggestion he had been consulted on the strike certificates issued for both its trade unions.

Adrian Gibson, while declining to comment otherwise, seemingly contradicted Dion Foulkes, minister of labour, by saying he had not been involved in talks on the certificate’s issuance.

This came after Mr Foulkes confirmed ahead of yesterday’s Cabinet meeting that he had signed a strike certificate for both the line and managerial unions representing Water and Sewerage Corporation (WSC) staff.

“I had discussions with the Attorney General’s Office, with the director of labour and the executive chairman of the WSC to come to a determination,” Mr Foulkes said.

“We thought that was the right thing to do. Notwithstanding the fact that both strike certificates have been issued, I want to encourage both sides to sit down and talk, give a little bit and see if you can reach resolution.

“The supply of water is a necessity to the residents of The Bahamas here in New Providence and the Family Islands. The prime minister is very concerned over the consistency of the supply of water. There has been an improvement between

DION FOULKES the unions, the management and the Board, and we would like to see that relationship develop into a very friendly relationship where both sides can reach an amicable conclusion on all of their matters.”

Both unions, bolstered by their strike certificates, yesterday said they would extend an “olive branch” to WSC management, adding that they wanted a “speedy resolution” to their concerns.

Dwayne Woods, the Bahamas Utilities, Service and Allied Workers Union (BUSAWU), president said: “I would like to inform the executives of the Water and Sewerage Corporation that we are in possession of a valid strike certificate and we look forward to a speedy resolution of the the outstanding matters that may have caused this bone of contention. It is our hope that we can enhance the present relationship to the point that the strike certificate will not have to be used as advised by the minister of labour.”

SEE PAGE 4

PAGE 4, Wednesday, May 1, 2019

THE TRIBUNE

Insurers ‘very close’ to VAT dispute settlement FROM PAGE ONE corrections on the basis that this agreement is actually finalised, which I expect it to be in a week or two.

The counter-balance is the amount reinsurers will have to contribute to any adjustment.”

Mr Duff explained that the “contribution” by ICB’s reinsurers would virtually cover, or net-off, most of the $378,802 provision that was booked in its 2018 accounts, mean the property and casualty underwriter will suffer minimal financial impact.

This is backed by the notes to ICB’s 2018 financial statements, which confirm the carrier is “exposed to a contingent liability” as a result of the VAT dispute. “In the opinion of our legal counsel, it is more likely than not that the dispute will be resolved and, if not, that we have a strong arguable case,” the financial statements added.

“Moreover, management of the company is confident that if legal efforts were

unsuccessful the amounts in question would be recoverable under our reinsurance treaties, and does not anticipate any costs, including any legal expenses that might be incurred in resolving this matter, will materially affect the position of the company further than those disclosed.

“The most likely outcome has been recorded in the statement as a provision for tax assessment of $378,802, and an offsetting reinsurance recoverable of $318,564 as a reduction to net claims incurred.”

Explaining what had caused the battle between industry and the government, Mr Duff told Tribune Business: “The basis of the dispute was the rules by which the insurers could recover VAT on claims payments.

“The industry had a clear understanding from the previous [Christie] administration that insurance companies could recover the VAT portion of any claims paid on a cash settlement. The new

BICA chief: Govt faces 20% revenue shortfall FROM PAGE ONE minister highlighted, that they have to control expenditure as revenue intake slows down in the fourth quarter. You don’t want that expenditure to balloon and push you to a higher deficit than anticipated.”

The government’s report showed it had collected some $1.689.1bn or 63.7 percent of its fullyear target during the first three-quarters of the 2018-2019 fiscal year, providing further confirmation it is highly unlikely to meet the $2.651bn revenue goal by the end-June

fiscal year close.

It would have to collect $962m between April and June to make up this gap, and trends for the fiscal year-to-date suggest it could come in as much as $300m below the full-year goal - a level much higher than the $185m underperformance flagged by KP Turnquest, deputy prime minister, during the mid-year budget in February.

The government collected just 38.1 percent of the full-year revenue target during the first half of the 2018-2019 fiscal year, meaning that the “revenue rich” third quarter from January-March produced about 25.6 percent - or just over

administration, and director of the Department of Inland Revenue (DIR), took the view that was not quite the case, and VAT was only recoverable where the insured was a VAT registrant.

“The industry had a very clear and unanimous understanding of the position based on the representations by the previous administration,” the ICB chief continued. “We’d operated on that basis for a number of years, and it was only when Keith Worrell was appointed as a consultant [at the DIR] that he looked deeper into the legislation.

“He deemed that the industry was collecting VAT or requesting credits based on an incorrect interpretation. For the last year the industry and government/DIR have been locking horns on this issue, but now we’re very close to having that resolved.

“We’ve more or less agreed, and hopefully are about to settle the way forward with the overnment.

It’s a compromise position we’re about to accept, and it looks like we’re almost there. In anticipation of the deal being signed off we’ve made a provision for the estimated correction we have to make for the change going forward.”

Expressing relief that settlement was in sight, Mr Duff said: “I think the whole industry will be very glad to put this thing to bed.

It’s been hanging over us for a year or so. All general insurers will be happy to get this behind us. It’s never good.”

Warren Rolle, the Bahamas Insurance Association’s (BIA) newly-elected chairman, had earlier this year branded the VAT dispute as “untenable” due to the impact on industry cash flows and solvency margins.

He said the sector was facing a “major disruptor” due to the Department of Inland Revenue’s (DIR) interpretations of how VAT works in practice, and explained: “When VAT was implemented in 2015, representations were made by

government officials - and details shared in guidance notes by the Department of Inland Revenue - indicating that general insurance claim settlements were deemed to be VAT inclusive.

“Therefore, insurers were allowed these input tax deductions to be offset against VAT collected and payable to the government. It is noteworthy that insurers advised the government of the day that it was reasonably foreseeable that following a major catastrophic event, significant credits would be owed to insurers following settlement of claims. Nonetheless, the government maintained its position and the industry proceeded with its remittance to the government on the aforementioned basis.”

Then came Hurricane Matthew in October 2016, with the $400m insured claims payout resulting in “substantial credits” being owed to insurers. “Some insurers continued to offset the input tax deductions while others sought refunds

from the government,” Mr Rolle said.

“General insurers have recently received assessments from the DIR indicating that a substantial portion of the input tax deduction, retroactive to 2015, is now disallowed as they were claimed on non-VAT registrants. This is a fundamental departure from the policy communicated to the industry and the practice that has persisted for several years, resulting in significant sums being allegedly owed to the government.

“It would seem a stretch that all general insurers misinterpreted what was communicated with respect to the treatment of input tax deduction at the inception of the policy. Further, it is curious that this only became an issue after insurers offset the significant credits owed to them by government, or sought credit refunds, following the passage of Hurricane Matthew.”

one-quarter - of the full amount.

This translates into $678.8m in revenue generated at the peak of the economic cycle - a sum almost $300m less than the “gap” between the nine-month collection and full-year objective. Mr Bowe told Tribune Business that the year-to-date performance “could come up as much as 20 percent short in revenue” based on trends so far.

Based on the first-half generating 38.1 percent of full-year revenues, a repeat of this performance in the 2018-2019 fourth quarter suggests it will generate between 19-20 percent of the full-year sum. This would bring government revenues to around 83-84 percent of target, or around $2.2bn, leaving them some $450m below budget projections.

Given the possibility of such a miss, Mr Bowe yesterday said there needed to be a “proper assessment of where we fell short and why” to avoid the same mistake being repeated in future Budget forecasts and prevent the possibility of larger-than-expected fiscal deficits that add further to the $8bn-plus national debt.

Calling for greater clarity and dialogue around the assumptions used by the government to derive its revenue estimates and Budget model, the BICA chief acknowledged that the transition periods granted to the hotel and construction industries meant the Public Treasury had not received the benefit of a full 12 percent VAT year.

But, suggesting other factors were at work, Mr Bowe told Tribune Business: “While the VAT rate increased, [consumer] consumption decreased. While we’ve not had the full first year of VAT at 12 percent, collections have not been at the pace they anticipated.

They were projecting significantly more.

“There’s no point in repeating the same mistake... I believe there’s a lot of work to be done as to what estimated and assumptions were used in the current model, what is the reason for the shortfall and, more importantly, that is is not repeated in the next year.”

The government’s ninemonth fiscal “snapshot” and budgetary performance report showed VAT was the poorest-performing revenue source when ninemonth collections were measured against full-year targets. Just 55.6 percent of the $1.062bn forecast had been received by end-March, even though collections were up almost $100m year-on-year - a 20.2 percent increase.

But the rise, from $490m to $589m, was well short of matching the 60 percent hike in the VAT rate with just three months of the 2018-2019 fiscal period left.

Mr Bowe, meanwhile, also pointed out that the “$108m headroom” between the nine-month deficit and full-year target could easily be wiped out based on the 2018-2019 first-half performance.

A $169m deficit, equalling around $85m per quarter, was incurred over this period, and the BICA chief said it was entirely possible this could be repeated during the fiscal year’s final quarter.

“That sort of says we can run $85m very easily,” he told Tribune Business.

“Even though we have $108m that could be eaten away very quickly.”

Turning to expenditure, Mr Bowe said the government’s recurrent spending on fixed costs such as salaries and rents needed to

stop rising even though the pace of increase had slowed.

“Recurrent spending, while slowing, is continuing to climb,” he added. “I’m not one to say it should be curbed by drastic measures, but we want to see that number stop rising as we want to see more efficient expenditure and use of existing resources. It’s not a case of cutting out expenditure; it’s more a case of maximising value for benefit.”

The Minnis administration has curtailed spending in line with its revenue underperformance to keep it in line with deficit targets, but Mr Bowe warned that it had to be “very careful not to wait too long” in meeting The Bahamas’ critical infrastructure needs.

“A little bit of medicine is better than waiting for major, more extravagant expenditure,” he added.

“We don’t want infrastructure to deteriorate at the expense of saving money for tomorrow.”

Mr Bowe said the $14.6m spent to cover the Grand Lucayan’s operational costs suggested taxpayers are subsidising the resort to the tune of $2m per month given that it has been just over seven months since the acquired the property from Hutchison Whampoa.

Govt cut national debt by $26.4m during fiscal Q3 FROM PAGE ONE months of the 2018-2019 fiscal year and only taking out $44m in new advances.

“Deficit financing was met via aggregate borrowings of $830.3m with $824m in Bahamian dollars and the balance in loan drawings on previously obtained foreign currency loans with international agencies,” the report said, as opposed to $1.807bn a year earlier when the government had use of the proceeds from its $750m US dollar bond issue.

“Following the established auction calendar, $454m in new bonds were

issued to refinance maturing series and to facilitate the planned conversion of Central Bank advances to bonds. Although the government had recourse to advances from the Central Bank, at end-March 2019 the outstanding was reduced to $60m at end-March - a decline of $65m from end-June 2018.

Short-term borrowings via Treasury bills aggregated $151m of which $36.2m was repaid during the review period.”

Borrowings from domestic banks totalled $175m, all of which occurred in the 2018-2019 first half.

LUCAYAN MANAGERS FROM PAGE ONE accommodations are also being made for them if and when they decide to sever their relationship with the hotel. We are very passed with the outcome of these negotiations,” said Mr Ferguson.

Mr D’Aguilar explained yesterday that 91 managers were included in the payout deal. “We have agreed to pay them $3.7m. They have other funds that are in an annuity with Family Guardian, which they will be entitled to tap into as well. That will take the total payout to $4.4m,” Mr D’Aguilar said.

“This is a good day for Grand Bahama. It allows the employees to go home with a lump sum and prepare for the upcoming employment opportunities that are going to present themselves with the Carnival port and Royal Caribbean acquisition of the Grand Lucayan.”

WATER CORP CHAIR DENIES MINISTER’S CONSULT REVEAL FROM PAGE THREE He listed three issues of concern for his union, adding: “There is the failure on the part of Water and Sewerage to adhere to the promotional procedure, as well the approval of two unorthodox promotional listings of which the director of labour would have already advised the corporation to sit with the union and possibly match.

“The second issue is Water and Sewerage Corporation’s failure to post the organisational chart showing positions that are filled and vacancies. The third

issue was the breach of Article 14.01, which speaks to the union leave which belongs to the people.”

Mr Woods added: “Its all up to the corporation now.

We are here and we are extending the olive branch.

We want them to know that we are extending the olive branch from the depths of our heart but we have problems.

“You can expect us to extend the love today, and then you create another bone of contention tomorrow and then make it look like the union is the villain.

We are here extending that olive branch and we want resolution for both unions.”

Mr Rolle, the Water & Sewerage Management Union’s (WSMU) president, said: “Our issue is about the signing of the industrial agreement. I hear the chairman still making his rounds arguing his point about the industrial agreement. Since our first press statement on April 12 I only asked him to do one thing; present the evidence to the public.

“If you have all your data and facts present it to the public and let the public agree with your position. If he fails to do that then do the honourable thing and sign the agreement.”

THE TRIBUNE

Wednesday, May 1, 2019, PAGE 5

PAGE 6, Wednesday, May 1, 2019

THE TRIBUNE

Bahamas Waste chief hails ‘best year in 30-year history’ FROM PAGE ONE Bahamas Waste’s managing director, added that Bahamas Waste’s share price had increased to “an all-time high” of $5.39 subsequent to 2018’s calendar year-end.

He added that some $1m in dividends had been paid out to shareholders, with 9,173 shares purchased via the buyback process over the year.

Bahamas Waste’s profits rose from $1.141m in 2017 to $1.348m last year, fuelled by sales and services revenues jumping to $12.629m from $11.97m. Gross profits increased by 11.7 percent to $4.688m, with the rise sufficient to outstrip the 8.7 percent growth in total expenses to $1.294m. Operating income rose as a result by 20.3 percent to $1.294m.

The waste services provider also controlled accounts receivables owed by customers, which grew by only $30,000 during 2018

to $2.352m. Just $141,319 were taken in impairment losses on trade receivables, of which some $701,435 was 30 days past due; another $369,280 around 60 days past due; and $367,315 another 90-plus days past due.

Bahamas Waste also managed to reduce losses connected to its investment in associates to just over $117,000 in 2018, compared to $270,672 in 2017, after Green Systems - which recycles green waste into mulch, compost and soil went from a $150,000 loss to just under $6,000 in profits.

However, Bahamas Sustainable Fuels, an entity that recycles cooking oil into biodiesel, continued to be a minor drag on Bahamas Waste’s results due to its $123,203 net loss. The BISX-listed firm sold a 51 percent majority stake in this business to 700 Islands Energy, a Bahamian company, for $180,433 in 2016, while retaining a minority

49 percent stake.

“The company extended a line of credit to Bahamas Sustainable Fuels for the purposes of settling operating expenses totaling $1.038m and lease payments of $14,370,” Bahamas Waste’s annual report said.

“These payments were offset against the fuel purchases from Bahamas Sustainable Fuels of $765,267, resulting in a net receivable from Bahamas Sustainable Fuels of $319,366.”

Bahamas Waste provided vendor financing to fund the purchase in the form of a 10-year loan with 5 percent interest, secured by 700 Islands Energy’s pledge of its shares, and a $135,398 balance was outstanding at year-end 2018. Bahamas Waste is also Bahamas Sustainable Fuels’ landlord, and has an agreement to buy a monthly minimum of 15,000 biodiesel gallons.

Google stock drops amid slowing ad-revenue growth SAN FRANCISCO Associated Press GOOGLE parent Alphabet beat analyst earnings expectations but reported slowing revenue growth amid tougher competition in the online advertising market. Alphabet shares dropped more than 7% in after-hours trading.

Google’s advertising revenue, its key moneymaker, grew by 15 percent to $30.7 billion — slower than investors had hoped. Google’s digital-ad rivals include Facebook and Amazon, the latter of which has been steadily gaining ground.

The results sparked concerns that Google’s enormously profitable advertising

machine might be starting to sputter. Some analysts suggested it’s a signal that Google might need to diversify its business more quickly.

“Does this put more pressure on Google to make more aggressive bets on cloud?” asked Wedbush Securities analyst Dan Ives.

Google executives highlighted the company’s cloud-computing business as one of its fastest growing segments during a call with analysts Monday. But the cloud currently accounts for only a small slice of overall revenue. Google reported $5.4bn in “other” revenue, which includes cloud, hardware and Play store purchases.

Alphabet reported a

COMMONWEALTHOF OFTHE THEBAHAMAS BAHAMAS COMMONWEALTH COMMONWEALTH OF THE BAHAMAS IN THE SUPREME COURT IN THE SUPREME COURT IN THELaw SUPREME COURT Common Lawand andEquity Equity Division Common Division Common Law and Equity Division

first-quarter profit of $8.3bn, down 6% from $8.9bn in the year-earlier period. Profit amounted to $11.90 per share, well above Wall Street estimates of $10.60.

That figure doesn’t include an expected charge of $1.7bn to account for a European Union antitrust fine. The fine was imposed in March for anti-competitive practices in Google’s advertising business, referring to a specific exclusivity practice Google now says it has ended.

Including the fine, Alphabet’s profit of $6.7bn fell short of analyst estimates.

Excluding advertising commissions that Google pays to customers, Alphabet’s overall revenue was $29.5bn.

2019/CLE/qui/ 2019/CLE/qui/ 2019/CLE/qui/

THEMATTER MATTEROF OFALL ALLTHAT THAT ININTHE IN THE MATTER OF ALL THAT piece parcel landcontaining containing areaofof33.30 33.30 piece parcel ororlotlotofofland ananananarea piece parcel orinclusive lot of land containing an an area of 33.30 acres(32 (32acres acres inclusive adjourning swamp land) and acres ofof adjourning swamp land) and acres (32 acres inclusive of adjourning swamp land) and being a portion of the Daniel Evans tract approximately being a portion of the Daniel Evans tract approximately portion of the Daniel Evans tract approximately ½mile mileaNortheast Northeast the Settlement Tarpum Bayininthe the ½being ofof the Settlement ofof Tarpum Bay ½ mile Northeast of the Settlement of Tarpum Bay in the Island of Eleuthera one of the Islands of the Commonwealth Island of Eleuthera one of the Islands of the Commonwealth ofBahamas.

Eleuthera one of the Islands of the Commonwealth ofThe TheBahamas. ofIsland of The Bahamas.

AND AND AND THEMATTER MATTERofofThe TheQuieting QuietingofofTitles Titles ININTHE IN THE MATTER of The The Quieting of Titles Act, 1959, Chapter357, 357, TheStatute StatuteLaws Laws TheBahamas Bahamas Act, 1959, Chapter ofofThe Act, 1959, Chapter 357, The Statute Laws of The Bahamas AND AND AND THEMATTER MATTERofofThe ThePetition PetitionofofRUBY RUBYJOHNSON JOHNSON ININTHE IN THE MATTER of The Petition of RUBY JOHNSON

NOTICE NOTICE NOTICE

THEPETITION PETITIONOF OFRUBY RUBYJOHNSON JOHNSONininrespect respectof:of:THE THE PETITION OF RUBY JOHNSON in respect of:ALLTHAT THATpiece pieceparcel parcelororlotlotofofland landcontaining containingananarea areaofof 1.1.

ALL 1.

ALL THAT piece parcel or lotofof land containing anland) area ofand 33.30acres acres(32 (32 acres inclusive ofadjourning adjourning swamp land)and 33.30 acres inclusive swamp 33.30 acres (32 acres inclusive of adjourning swamp land) and being a portion of the Daniel Evans tract approximately ½ mile being a portion of the Daniel Evans tract approximately ½ mile being a portion ofSettlement the Daniel Evans tract approximately ½ofmile Northeast theSettlement Tarpum Bay theIsland Islandof Northeast ofofthe ofofTarpum Bay ininthe Northeast ofone theofSettlement of Tarpum Bay in the Island ofofofThe Eleutheraone ofthe theIslands Islands the Commonwealth The Eleuthera ofofthe Commonwealth Eleuthera Bahamas one of the Islands of the Commonwealth of The Bahamas Bahamas claims to be the owner theunincumbered unincumberedfee feesimple simpleestate estateininpossession possessionofofthe thesaid saidland landand and claims to be the owner ofofthe claims to application beapplication the ownertoof the unincumbered fee estate in possession of Bahamas the said land and hasmade made tothe theSupreme SupremeCourt Court theCommonwealth Commonwealth The Bahamas under has ofofsimple the ofofThe under has made application to the Supreme Court of to the Commonwealth ofsaid Theland Bahamas under Section Three the Quieting TitlesAct, Act,1959 1959 tohave have titleofofthe the said land investigated Section Three (3)(3)ofofthe Quieting Titles itsitstitle investigated Section Three (3) ofextent the thereof Quieting Titles Act,and 1959 to have its title of theofsaid land andthe thenature natureand andextent thereofdetermined determined anddeclared declared Certificate ofTitle Title granted and inin a aCertificate totoinvestigated bebegranted the nature and extent with thereof determined and declared in a Certificate of Title to be granted bythe the Court accordance withthe the provisionsof ofthe the saidAct. Act. byand Court ininaccordance provisions said by the Court in accordance with the provisions of the said Act. Copiesofofthe thePetition Petitionand andthe theplans plansofofthe thesaid saidland landmay maybebeinspected inspectedduring duringnormal normal Copies Copies of the Petition and the plans of the said land may be inspected during normal officehours hours thefollowing following places:office ininthe places:office hours in the following places:TheRegistry Registryofofthe theSupreme SupremeCourt, Court,Bank BankLane Laneininthe theCity CityofofNassau, Nassau,Bahamas; Bahamas; 1.1.

The 1.

The Registry of the Supreme Court, Bank Lane in the City of Nassau, Bahamas; TheChambers ChambersofofBootle-Williams Bootle-Williams&&Company, Company,c/o c/oofofMinnis Minnis&&Company, Company, 2.2.

The 2.

The Chambers of Bootle-Williams &Nassau, Company, c/o of Minnis & Company, Alkebulan House, PoincianaDrive, Drive,Nassau, Bahamas; Alkebulan House, 1919 Poinciana Bahamas; Alkebulan House, 19 Poinciana Drive, Nassau, Bahamas; 3.

The office of the Attorney General, Paul L. Adderley Building, John F. Kennedy Drive,, Nassau, Bahamas.

3.

The office of the Attorney General, Paul L. Adderley Building, John F. Kennedy Nassau, Notice Drive,, is hereby givenBahamas. that any person having dower or right to dower or an Adverse Claim or a claim not recognized in the Petition shall on or before the 14th day of Notice is hereby that anyCourt person having right to dower an Adversea June A.D., 2019 file in given the Supreme and serve dower on theorPetitioner or the or undersigned Claim or ofa her claim recognized the verified Petitionbyshall on or tobefore 14th day of Statement claimnot in the prescribedinform an Affidavit be filedthe therewith.

June A.D., 2019 file in the Supreme Court and serve on the Petitioner or the undersigned a Statement of herofclaim in theperson prescribed form an Affidavit to be filedon therewith.

Failure any such to file andverified serve abystatement of his claim or before the th 14 day of June A.D., 2019 will operate as a bar to such claim.

Failure of any such person to file and serve a statement of his claim on or before the 14th day of June A.D., 2019 will operate as a bar to such claim.

Bootle-Williams & Company

BOOTLE-WILLIAMS & COMPANY Bootle-Williams & Company c/o Minnis & Company BOOTLE-WILLIAMS & COMPANY Chambers c/o Minnis House & Company Alkebulan Chambers 19 Poinciana Drive Alkebulan House Nassau, Bahamas 19 Poinciana Drive Nassau, Bahamas Attorneys for the Petitioner Attorneys for the Petitioner

THE TRIBUNE

Wednesday, May 1, 2019, PAGE 9

DEAL OR NO DEAL? US AND CHINESE SIDES RESUME TRADE TALKS WASHINGTON Associated Press TREASURY Secretary Steven Mnuchin says he and other negotiators for the Trump administration should know this week or next whether they can reach a trade deal with China — or whether it’s time to “move on”.

Mnuchin and Trade Representative Robert Lighthizer travelled to Beijing to resume talks yesterday to try to end a yearlong trade war between the world’s two largest economies. A Chinese team is scheduled to visit Washington next week for another round of talks.

“We hope within the next two rounds of (talks) in China and in DC to be at the point where we can either recommend to the president we have a deal or make a recommendation we don’t,” Mnuchin told Fox Business Network on Monday. “There is a strong desire for both sides to see if we can wrap this up or move on.”

The two sides are locked in a standoff over the Trump administration’s charges that Beijing steals technology and forces foreign companies operating in China to hand over trade secrets. China is pushing to make its companies

DONALD TRUMP world leaders in advanced industries like robotics and artificial intelligence.

President Donald Trump has imposed tariffs on $250bn in Chinese imports; Beijing has retaliated by taxing $110bn in US goods.

During their previous rounds of trade talks, Mnuchin said, the two sides have “made a lot of progress”, but “we still have more work to do”.

The negotiators are still discussing how to ensure that Beijing would adhere to whatever commitments it makes, as well as whether the Trump administration would keep tariffs on Chinese imports to maintain leverage over Beijing.

Mnuchin told Fox Business Network that an enforcement mechanism just “needs a little bit of fine tuning”.

US officials and businesses assert that China has failed to keep past promises concerning its

trade practices.

“We are at a pivotal moment in these negotiations, with a real chance to hammer out a strong, enforceable bilateral trade agreement,” said Linda Dempsey, vice president of international economic affairs at the National Association of Manufacturers.

American manufacturers, she said, “need a robust final deal to ensure they can compete on a level playing field.”

Trump also wants to narrow America’s huge trade deficit with China — $379bn last year — by pressing Beijing to agree to accept more US exports.

But critics worry that any agreement would come at the expense of other countries that do business with China. Or that US companies might receive preferential access to China and marginalise the World Trade Organization, which is meant to enforce global free trade rule for everybody.

“It clearly undermines the WTO,” said Mary Lovely, a Syracuse University economist. “The two bullies in the room are basically running the show. The rest of the world is going to have to deal with the aftermath.”

CAN MAKE A DIFFERENCE IN THE LIVES OF THE CHILDREN AT RANFURLY

T

he Ranfurly Homes for Children has been a safe haven for thousands of Bahamian children since 1956. The Home provides a safe, structured environment for children who have been orphaned, abused, neglected or abandoned.

YOU can make a difference in the lives of the children at Ranfurly. With your support children can have nutritious food, warm beds and a safe environment where they can discover the joy of being children. For years the children living and learning at Ranfurly have made great social and academic strides.

Their further development requires additional support in the form of a Transitional Home, planned for construction on the Ranfurly property.

This residence will cater to teenagers and young adults who are beyond school age, but need accommodation while they find work and gain independence from the Home.

We look forward to your continued support in this worthwhile endeavour.

MEMBERSHIP PACKAGES Individuals, Families & Corporate Sponsors Children Helping Children - $5 (Individual children from ages 6 - 18) Individuals Helping Children - $50 (Individual adults 18 years and over) Families Helping Children - $100

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OPPORTUNITIES • • • •

Invitations to Ranfurly events Assist with fundraising events Involvement with special activities Adults are eligible to join the Board after three months • Stay in touch with Ranfurly through website and newsletters

BENEFITS

• Personal fulfillment in knowing you are impacting lives • Ranfurly children’s appreciation and positive response • Continued support provides stability and constant care

For more information visit: www.ranfurlyhome.org Please “Like” us on Facebook Ranfurly Home for Children, Mackey Street P.O. Box 1413 Nassau, Bahamas 242-393-3115

PAGE 10, Wednesday, May 1, 2019

By ALEX VEIGA Associated Press MAJOR US stock indexes were mostly lower late yesterday afternoon after a day of mostly sideways trading as investors sized up a mixed batch of corporate earnings reports.

Google’s parent company, Alphabet, led a slide in communications services stocks after the search giant reported a slowdown in revenue growth. Retailers, hospitality industry companies and banks also fell.

Household goods makers, health care stocks and utilities notched gains.

The market’s gyrations had the benchmark S&P 500 index market on track for its first decline after two days of gains.

Alphabet is one of many huge US companies to report their results this week, giving investors plenty to focus on. Nearly a third of the companies in the S&P 500 are scheduled to report their results for the first quarter this week.

For the most part, the firstquarter earnings, while mixed, have come in better than the modest expectations analysts had.

General Electric, which has taken a beating in recent years, rose sharply in heavy trading after delivering surprisingly good earnings. That helped lift other industrial stocks.

Despite the market’s slide, the S&P 500 and Nasdaq remain close to alltime highs set on Friday.

The market has been riding high this year after mounting a big comeback from a steep slump at the end of 2018. Investors have been feeling more optimistic this year as fears of a global economic recession eased and negotiations between the US and China over their costly trade war appear to

THE TRIBUNE

US stock indexes waver on mixed earnings; Alphabet down

TRADER Joseph Lawler works on the floor of the New York Stock Exchange. The US stock market opens at 9.30am EDT yesterday. be making progress.

The Federal Reserve has done the most to allay the market’s jitters this year by signaling that it may not raise interest rates at all in 2019 after seven increases the previous two years.

Traders will get to hear from the Fed again today, when the central bank’s policymakers issue another update on interest rate policy and their view on the US economy.

KEEPING SCORE: The S&P 500 was down less than 0.1% as of 3.43pm.

Eastern Time. The Dow Jones Industrial Average fell 9.25 points, or less than 0.1%, to 26,563. The Nasdaq composite slid 0.8% and the Russell 2000 index of smaller company

stocks dropped 0.5%.

Major indexes in Europe finished mostly higher.

BAD SEARCH: Google parent company Alphabet slumped 7.8% in heavy trading after disappointing advertising sales held back revenue growth during the first quarter.

The search engine’s revenue fell short of analysts’ forecasts because advertising revenue only grew by 15%. The company is in tight competition for digital ads with Facebook and Amazon.

DENTED FENDER: General Motors fell 2.4% after reporting a surprise drop in sales during the first quarter. The company raised prices on its vehicles, especially trucks,

PUBLIC NOTICE

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL The Public is hereby advised that I, TARVAN LINTON SYMONETTE SR., of Market Street, P.O. Box N-1915, father of QUINCY ROLLE JR., a minor, intends to change his name to TARVAN LINTON SYMONETTE JR. 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.

during the quarter.

The automaker has been criticised for its decision to late last year to shut four US factories and one in Canada. It said the closings and job cuts are necessary to stay financially healthy.

MORE POWER: Industrial conglomerate General Electric climbed 4.3%, also in heavy trading, after beating Wall Street’s profit and revenue forecasts for the second straight quarter.

The company has been shedding units and reorganizing as it tries to increase growth. Solid results from its struggling power unit helped lift its results during the most recent quarter.

ROADHOUSE BLUES: Restaurant operator Texas Roadhouse slumped 10.9% after profit fell because of higher labour costs. Both profit and revenue fell short of forecasts.

The company, which operates about 580 Texas Roadhouse and Bubba’s 33 restaurants, doesn’t expect those costs to fall. It raised prices earlier this year to try and offset the higher costs.

IN GOOD HEALTH: Health care stocks bounced back after wobbling in early trading following a mixed batch of earnings reports from some of the sector’s big names.

Merck rose 2.1% after reporting that its profit quadrupled in the first quarter, easily beating Wall Street’s forecasts. Pfizer, another huge drugmaker, gained 3% after higher sales of prescription drugs helped it report a 9% jump in profits, also easily beating forecasts.

Eli Lilly slid 2.4% after the drugmaker cut its revenue forecast for the year as it faces price declines and more competition for its drugs.

INTENT TO CHANGE NAME BY DEED POLL

The public is hereby advised that I, JOAN LOUISE ADAMS, JOAN CARMEN ADAMS, JOAN LOUISE STURRUP and CARMEN STURRUP of Lancaster Road, West, Stapledon Gardens, Nassau, The Bahamas, intend to change my name by Deed Poll to JOAN LOUISE ADAMS-STURRUP. If there are any objections to the change of name by deed poll, you may write such objections to the Chief Passport Officer, P.O.Box N-792, Nassau, Bahamas no later than thirty (30) days after the date of this publication notice.

MARKET REPORT TUESDAY, 30 APRIL 2019

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

BISX ALL SHARE INDEX: CLOSE 2,153.78 | CHG 7.17 | %CHG 0.33 | YTD 44.33 | YTD% 2.10 BISX LISTED & TRADED SECURITIES 52WK HI 4.50 20.91 7.00 5.50 2.50 1.98 3.35 10.60 6.16 4.64 12.50 2.74 1.96 9.02 6.63 15.60 7.25 4.25 14.00

52WK LOW 3.50 19.17 4.90 3.50 1.00 0.19 2.10 8.80 6.11 3.54 10.05 2.30 1.50 7.25 6.10 10.10 6.20 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

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 ##########

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

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)

LAST CLOSE 4.25 17.43 6.00 5.39 2.40 1.96 2.10 10.50 6.16 4.47 10.64 2.50 1.79 9.34 6.60 15.57 7.25 3.31 14.00

CLOSE 3.83 17.43 6.00 5.39 2.47 1.98 2.10 10.50 6.16 4.47 10.64 2.53 1.79 9.32 6.60 15.57 7.25 3.50 14.00

CHANGE -0.42 0.00 0.00 0.00 0.07 0.02 0.00 0.00 0.00 0.00 0.00 0.03 0.00 -0.02 0.00 0.00 0.00 0.19 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

VOLUME 2,000 265 3,000 2,000 4,000 26,000

17,276

VOLUME

EPS$ 0.167 0.932 -0.306 0.323 0.098 0.000 -0.431 0.708 0.480 0.154 0.627 0.102 0.209 0.000 0.636 0.834 0.950 0.205 0.631

DIV$ 0.130 1.260 0.000 0.240 0.000 0.020 0.000 0.710 0.220 0.120 0.620 0.068 0.060 0.328 0.240 0.500 0.200 0.090 0.600

P/E 22.9 18.7 N/M 16.7 N/M N/M -4.9 14.8 12.8 29.0 17.0 24.8 8.6 N/M 10.4 18.7 7.6 17.1 22.2

YIELD 3.39% 7.23% 0.00% 4.45% 0.00% 1.01% 0.00% 6.76% 3.57% 2.68% 5.83% 2.69% 3.35% 3.52% 3.64% 3.21% 2.76% 2.57% 4.29%

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%

MATURITY 19-Oct-2022 ############### 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

MUTUAL FUNDS 52WK HI 2.20 4.24 2.04 184.51 158.55 1.61 1.75 1.70 1.14 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 1.55 1.68 1.64 1.08 6.41 7.62 5.66 8.65 10.54 9.57 9.88 8.45 11.20

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

NAV 2.22 4.22 2.04 184.51 147.81 1.61 1.75 1.70 1.14 7.54 8.73 6.65 10.66 11.79 10.48 9.92 8.69 11.79

YTD% 12 MTH% 0.58% 3.94% -0.39% 1.53% 0.43% 2.52% 3.26% 3.26% -3.65% -3.65% 1.15% 4.41% 0.59% 4.31% 0.92% 4.16% 2.79% 4.80% -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

NAV Date 28-Feb-2019 28-Feb-2019 22-Feb-2019 31-Dec-2018 31-Dec-2018 31-Mar-2019 31-Mar-2019 31-Mar-2019 31-Mar-2019 28-Feb-2019 28-Feb-2019 28-Feb-2019 28-Feb-2019 28-Feb-2019 28-Feb-2019 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

Eurozone recession fears fade as growth picks up LONDON Associated Press THE recent slowdown in the eurozone economy, which had stoked fears that another recession was around the corner, appears to have come to an end.

Official figures released Tuesday show that the 19-country single currency bloc saw economic growth double in the first quarter of the year and that has helped unemployment fall to its lowest level since the global financial crisis.

Eurostat, the European Union’s statistics agency, said the eurozone economy expanded by 0.4% in the first quarter from the previous three-month period.

That’s double the rate experienced in the last quarter of 2018 and suggests that a period of rapid slowdown may be over.

Eurostat did not provide details though some eurozone countries have released national figures.

Spain did particularly well in the first quarter of 2019 with quarterly growth of 0.7% and Italy nudged out of a very modest recession with a 0.2% quarterly expansion. But France underwhelmed with a rate of only 0.3% with growth still feeling the effects of the yellow vest protest movement.

The prevailing view is that the European Central Bank’s cheap monetary policy - under which it has kept interest rates at super-low levels - is continuing to help economic activity, particularly consumer spending.

“Given the continuing

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weakness in manufacturing, this is a very respectable result,” said Christoph Weil, an economist at Commerzbank. “It shows that domestic demand, fueled by the ECB’s ultra-expansive monetary policy, continues to support the economy.”

Despite the quarterly increase, the eurozone is far short of the growth it was posting before the slowdown began in the middle of last year — compared with the year before, the eurozone economy was only 1.2% bigger. By contrast, the United States last week reported that the economy grew at an annualized rate of 3.2% during the first three months of the year, which equates to quarterly growth of around 0.8%.

The eurozone, like many other parts of the global economy, faltered last year as trade tensions between the United States and China became more acute, oil prices rose and uncertainty over Britain’s departure from the EU weighed on business confidence. Some economists were predicting that the region was heading for another recession.

“We can say that calls for a eurozone recession were certainly premature,” said Peter Vanden Houte, an economist at ING. “Declining unemployment and gradually rising wages are supporting household consumption, while easy financing conditions remain in place.”

One clear sign that the eurozone is faring better than during the difficult debt-crisis years of the first half of this decade has been the fall in unemployment.

The jobless rate dropped to 7.7% in March, its lowest level since Sept 2008, the month when the global economy was reeling from the shock of the collapse of US investment bank Lehman Brothers, arguably the most dramatic moment during the financial crisis.

NOTICE

NOTICE is hereby given that SHAWNATON ANTHONY SPENCER of #9 Leeward East, P.O. BOX EE-17562, 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 1st day of May, 2019 to the Minister responsible for Nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE NOTICE is hereby given that SIDNEY ALPHONSE of Mildred Avenue, off Carmichael Road, 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 1st day of May, 2019 to the Minister responsible for Nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE NOTICE is hereby given that JAYRON JEFFREY JEAN, of Marsh Harbour Abaco, Bahamas P.O.Box N- 9426 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 May, 2019 to the Minister responsible for Nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

PAGE 16, Wednesday, May 1, 2019

THE TRIBUNE

Dems say Trump agrees on $2tn infrastructure goal WASHINGTON Associated Press IN A rare moment of bipartisanship in polarised Washington, President Donald Trump and Democratic congressional leaders agreed yesterday to work toward a $2tn infrastructure plan to rebuild roads, bridges, provide clean water and extend broadband coverage — but they put off the thorny matter of how to pay for it.

Both sides seemed determined to show a willingness to work with the other, even as tensions between the White House and congressional Democrats have only intensified with the release of special counsel Robert Mueller’s redacted report into Russia meddling in the 2016 elections. Democrats have multiple investigations of the Trump administration underway and Trump’s White House is strongly resisting them.

But Senate Minority Leader Chuck Schumer PICTURED: Speaker of the House Nancy Pelosi of Calif, and Senate Minority Leader Sen Chuck Schumer of NY, walk over to speak with reporters after meeting with President Donald Trump about infrastructure, at the White House yesterday in Washington. From left, House Ways and Mean Committee Chairman Rep Richard Neal, D-Mass, Sen Ron Wyden, D-Ore, Pelosi, Chairman of the House Transportation and Infrastructure Committee Rep Peter DeFazio, D-Ore, and Schumer.

Photo: Evan Vucci/AP said there was “good will in the meeting” — a marked departure from the last White House encounter between Trump, Schumer and House Speaker Nancy Pelosi, which ended with Trump walking out in a huff.

At yesterday’s more muted meeting, by contrast, Trump at one point offered to share his Tic Tacs with Pelosi and she accepted, a Democratic aide recounted.

“We did come to one agreement: that the agreement would be big and bold,” Pelosi said.

Schumer added that: “In previous meetings, the president has said, ‘If these investigations continue, I can’t work with you.’” But this time, Schumer said, “He didn’t bring it up.”

Schumer said the two sides agreed that infrastructure investments create jobs and make the United States more competitive economically with the rest of the world. Most importantly, Schumer said, “we agreed on a number.”

“Originally, we had started a little lower. Even the president was eager to push it up to $2tn, and that is a very good thing,” Schumer said.

White House press secretary Sarah Sanders, for her part, described the meeting as “excellent and productive”.

Pelosi and congressional Democrats had asked for the meeting with Trump to discuss launching an ambitious building program that’s a top priority for the party and has been a rare area of potential bipartisan accord with Republicans. Trump, too, has long promised a big infrastructure plan.

When Democratic lawmakers emerged, they said Trump agreed that infrastructure investments should go beyond roads and bridges and water systems to also include broadband.

Democrats also put the onus on Trump to come up

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with a plan for how to pay for the package, and said they would meet again in three weeks, when the president will present his ideas.

They noted that a bill is unlikely to pass the Senate “if we don’t have him on board”.

Trump, at one point, said he liked the number $2tn because it sounded better than $1.9bn, according to a Democrat who spoke about the meeting on condition of anonymity because the aide was not authorised to discuss details of the private session publicly.

The meeting tenor was decidedly more low-key than the last Trump session with the Democratic leaders. During one exchange, when Pelosi tried to get the president’s attention as he and Schumer were having a side conversation, the speaker prodded, “If I may have your attention ...

Mr President ... Chuck ...

Kids ...” That was according to the Democrat who described the meeting on condition of anonymity.

The nation’s top business groups and labour unions support increasing the federal gasoline tax, currently 18.3 cents a gallon. It was last raised in 1993.

Schumer said the president didn’t rule out tax increases to pay for infrastructure.

Sanders’ statement did not address the tax issue. Instead, it described the US, without elaborating, as “foolishly prioritising the interests of other countries over our own”.

“We have to invest in this country’s future and bring our infrastructure to a level better than it has ever been before,” Sanders added.

The meeting included a dozen congressional Democrats and numerous administration officials.

Before the meeting, senior aides seemed intent on setting low expectations.

Asked whether Trump supports raising the gas tax, White House adviser Kellyanne Conway said “this president is the guy who lowers taxes.”

And Mick Mulvaney, the president’s acting chief of staff, said he hoped the conversations with Democrats would go well, “but if they don’t it would not surprise me”.

More than one “infrastructure week” already has come and gone over the past two years with nothing to show for it. Still, advocates for an infrastructure package boost see a narrow window for action.

“I think a deal can be had if everybody is willing to put their battle axes away for a period,” said former Republican Rep Bill Shuster of Pennsylvania, who served as chairman of the House’s transportation committee for six years.

Mulvaney indicated that won’t be easy.

“To have an impeachment hearing on Monday, say, and then to think you’re going to talk infrastructure on Tuesday, that’s not how the world works, let alone Washington, DC,” Mulvaney said at a conference he was attending in California.

Democrats insisted that they will proceed with their “oversight responsibilities” at the same they’re pushing for an infrastructure deal.

“The two are not mutually exclusive, and we were glad he didn’t make it that way,” Schumer said.

A compromise could offer political benefits to both sides. Trump’s re-election prospects are tied to a strong economy that would get another boost from new road and bridge projects.

House Democrats have passed an array of bills that have gone nowhere in the GOP-controlled Senate.

Committees in both chambers of Congress have started to lay the groundwork for an infrastructure bill through hearings, with Democratic lawmakers hoping to have legislation ready for consideration by June or July.