05062019 BUSINESS

business@tribunemedia.net

MONDAY, MAY 6, 2019

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DUANE SANDS

Fee rises targeted again to make up $40m PHA deficit

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A CABINET minister yesterday confirmed that the Princess Margaret Hospital (PMH) is still targeting fee increases to make up a $40m funding shortfall in time for the upcoming fiscal year.

Dr Duane Sands, minister of health, told Tribune Business that while the Public Hospitals Authority (PHA) had already decided to raise fees, which ones - and the extent of any increase - had yet to be determined with the Ministry of Finance and Cabinet.

He added that PMH was also still working on the necessary infrastructure to properly code and bill patients/insurance companies for services rendered, with the new business office and staff recruitment both still in process.

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URCA reignites Freeport energy regulation battle

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

F

REEPORT’S energy regulation battle is coming to the boil after Grand Bahama Power Company was told the Electricity Act “implicitly repealed” key parts of the Hawksbill Creek Agreement.

The Utilities Regulation and Competition Authority (URCA), which has taken almost three years to respond to the utility’s challenge to its regulatory authority within the Port area, is arguing that Parliament was “constitutionally entitled” to override Freeport’s founding treaty when it passed the Act in 2015.

The energy and communications regulator, in legal documents obtained by Tribune Business, is now seeking a Supreme Court declaration that the Electricity Act “applies in its entirety” to Freeport and “prevails” over the Hawksbill Creek Agreement

• Act ‘repeals’ parts of Hawksbill Creek • Wants court to find it ‘prevails’ over GB Power • Outcome has implications for Cable matter provisions that GB Power is relying upon to resist its jurisdiction.

The national regulator is also arguing that GB Power’s stance in refusing to submit to its supervision and licensing powers is “undermining” the Electricity Act and the ability of URCA to perform its mandate in accordance with the National Energy Policy (NEP).

URCA’s March 26, 2019, defence and counterclaim thus reignites a precedentsetting legal fight that will determine whether it is the national regulator or the Grand Bahama Port Authority (GBPA) which has the authority to regulate utilities within the Port area.

It also has major implications for the Hawksbill Creek Agreement’s survival and integrity, and whether

its provisions can be overridden by statutory Acts of Parliament, as well as other utility companies such as Cable Bahamas and the Bahamas Telecommunications Company (BTC).

For Cable Bahamas, the BISX-listed communications provider, has initiated its own litigation with the Supreme Court that asks the same questions as GB Power’s original action whether URCA has the jurisdiction to regulate its businesses in the Port area, which are carried out through its wholly-owned subsidiary, Cable Freeport.

URCA’s 2018 annual report, confirming that this case is also ongoing, said: “The Cable Bahamas action commenced on 7 July, 2017, and seeks to determine inter alia whether telephony and internet services within the

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Insurer shakes-off ‘three-year hangover’ on 22% claims fall

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

Port area of Grand Bahama provided by Cable Bahamas are subject to URCA’s licensing requirements.”

The energy sector battle was sparked by GB Power’s original action, filed on July 7, 2016, which challenged URCA’s ability to license and regulate it on the basis that this “conflicts” with the provisions of the Hawksbill Creek Agreement as Freeport’s founding treaty.

The filing of URCA’s defence and counterclaim, though, indicates that the regulator is making good on the recent pledge by its chief executive, Stephen Bereaux, to do everything it can to progress the GB Power matter through the court system “as quickly as possible” after the utility provider left it “languishing” for almost three years.

A BAHAMIAN insurer has begun to shake-off its “three-year hangover” from Hurricane Matthew after 2018 claims came in 22 percent below its own projections.

Tom Duff, Insurance Company of The Bahamas (ICB) general manager, told Tribune Business that bottom line profitability and returns on capital were starting to trend towards historical levels after 2018 net income rose by 152 percent year-over-year.

He said the morethan-doubling of ICB’s earnings was largely due to a 56.4 percent yearover-year reduction in insurance claims submitted by its clients, which fell from $3.457m in 2017 to

SEE PAGE 6

SEE PAGE 5

IXP plan signals Bahamas ‘serious technology player’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Bahamas will send the signal that it is “a really serious technology player” if it develops its own Internet Exchange Point (IXP), the head of its technology hub committee believes.

Dr Donovan Moxey, who chaired the government-appointed body that developed the “road map” for the Grand Bahama technology hub, told Tribune Business that the Utilities Regulation and Competition Authority’s (URCA) decision to press ahead with establishing an IXP

DR DONOVAN MOXEY regulatory framework was “pretty big” when it came to realising this nation’s ambitions.

“I think it’s extremely positive,” he said of

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Bahamas failing to ‘leverage internet into innovation’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Bahamas is “failing to leverage the internet’s full potential to drive entrepreneurship and business innovation”, industry regulators are asserting.

The Utilities Regulation and Competition Authority (URCA), in its consultation paper on a proposed regulatory framework for a Bahamas-based Internet Exchange Point (IXP), believes such a facility will help stimulate local online content creation and encourage popular websites

to be hosted “in-country”.

A local IXP, URCA is arguing, would incentivise such developments by reducing the cost and time associated with access to Bahamian websites and content. It is also planning to require Internet Service Providers (ISPs), both mobile and broadband (BTC, Cable Bahamas and Aliv), “to keep local Internet traffic in The Bahamas” via an IXP rather than route it outside.

“Whilst broadband access and usage across the region have improved

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PAGE 2, Monday, May 6, 2019

THE TRIBUNE

SMALL HOTELS ‘FUSING’ WITH VACATION RENTALS SMALL Bahamian hotels will likely have to “fuse” vacation rental homes into their business model, a Bahamian realtor is arguing, with the latter sector poised to become the market leader.

Colin Lightbourn, Engel & Völkers license partner, said there were already more vacation rental rooms on the Family Islands than hotel rooms,

with such disruptive market forces likely to drive resorts into incorporating private homes into their business model.

Speaking as Engel & Völkers released its 2019 Vacation Rental Report on The Bahamas, Mr Lightbourn said the results were based on 4,200 properties listed on Airbnb and Homeaway, which he described as the most complete database

on market activity in this nation.

“I believe there’s certainly more vacation rental rooms in the Family Islands than there are hotel rooms,” Mr Lightbourn said. “In fact, I believe that’s true for the entire Bahamas. And that’s factoring in Baha Mar and Atlantis.

“I’m talking here total bedrooms in house, not total houses. Just in this

sample alone we are looking at over 11,000 bedrooms, and this does not include all the homes available in the market, although it is the vacation rental of the whole house that our report deals with in this instance.”

The Engel & Völkers report showed average rental occupancy rates varied from more than 70 percent in Nassau/Paradise Island to just over 40 percent in Bimini and Andros, respectively.

Average daily rates (ADR), possibly due to limited supply, were at their highest in Andros at just over $500. Abaco was next at $400, while ADRs in Nassau just breached the $200 mark.

Average annual gross rental income was highest in Exuma, standing at $90,000, which was followed by the likes of Exuma, Abaco and Andros in the $70,000 to $80,000 range.

Gross annual rental income in Nassau/Paradise Island was more than $60,000.

Average occupancy rates, rental income and ADRs sometimes varied wildly on the same island. Average daily rates and annual income, for example, were far higher on Harbour Island than elsewhere on Eleuthera.

Mr Lightbourn, meanwhile, added that the vacation rental market had even expanded to inner-city Nassau, and said: “That’s interesting, especially when you’re looking at the Bahamian market overall.

“In the Family Islands, Bahamians can purchase properties that have ocean access for reasonable prices. When we did our market report in January, the average price point for somewhere like Treasure Cay was $370,000, and Treasure Cay had the most unit sales in an out island location.

“Most investments there are used for the vacation

rental market because of, one, the price point, and two, the demand for vacation rentals in an area that has a marina, a beach, and access to other islands.”

The Engel & Völkers license partner said vacation rental owners likely enjoyed up to a 40 percent profit margin, with the realtor’s survey showing only gross rental income and “not what somebody is putting in their pocket”.

“I’d say you have anywhere between 30 percent to 60 percent of expenses related to the running and operating of that property.

You have your basics like utilities, insurance, property tax and maintenance, management fees, housekeeping - it mounts up,” Mr Lightbourn said.

With all signs pointing to continued market growth, he suggested that small hotels - especially on the Family Islands - and vacation rentals - are likely to be pushed closer together.

“Small hotels will need to look at offering services from their hotels to the private homes,” Mr Lightbourn said. “And I think in the future that’s where the market is. The new buzzword is ‘bespoke’, and that’s going to be the experience people are looking for, which is going to really fuse the private homes and the resorts together in some capacity.”

With the Hotel Encouragement Act’s tax breaks further incentivising the private home market’s expansion, he added: “People are coming here to have a very personalised, unique, authentic experience in the island, and it opens up opportunities for younger people to get into all kinds of businesses catering to this.

“I believe our government regulators should safeguard this burgeoning industry that is obviously meeting a need in the

travel experience. It offers tremendous economic benefits to a new type of entrepreneur.”

Mr Lightbourn’s comments come as the government examines how best to levy VAT on the vacation rental sector, amid concerns - especially in the resort industry - that it is not paying its fair share to finance the maintenance of critical infrastructure.

Meanwhile, confirming the vacation rental industry’s continued growth, the Central Bank of The Bahamas’ monthly economic developments report for March said: “Healthy trends were also noted in the growing non-hotel based segment of the market, typically characterised by short-term vacation rentals.

“An analysis of data obtained from AirDNA showed that the total number of room nights sold firmed by 24.3 percent to 78,160 in March, as bookings for ‘entire place’ listings rose by 22.8 percent and for hotel comparable listings by 37.3 percent.

“Over the first quarter, total room nights booked firmed by 24.7 percent, underpinned by a 22.4 percent expansion in ‘entire place’ bookings and a 42.6 percent rise in the hotel comparable segment.

Moreover, all of the significant markets tracked experienced quarterly sales expansions, as room bookings for Exuma firmed by 51.5 percent, New Providence by 26.9 percent, Abaco by 21.4 percent, and Grand Bahama by 2.1 percent.

“Further, the average daily rate (ADR) firmed slightly by 0.7 percent to $141.97 for hotel comparable listings, while the rate for entire place listings softened by 1.5 percent to $341.49.”

THE TRIBUNE

Monday, May 6, 2019, PAGE 3

PMH EARNS JUST $200,000 FROM 60K EMERGENCY VISITS

By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net THE Princess Margaret Hospital (PMH) collects less than $200,000 a year from the 60,000 emergency room patients it treats, a Cabinet minister revealing: “We pay more in salaries for staff to collect that money”.

Dr Duane Sands, minister of health, in a sobering presentation on The Public

DR DUANE SANDS

Health Policy of The Bahamas last Thursday night, said: “We see almost 60,000 patients a year in our emergency room at PMH. I’m talking about gun shots, stabbings, strokes, heart attacks etc.

“We collect on average $2.50. We collect less than $200,000 a year in our emergency room. We pay more in salary for staff to collect that money than we collect. Where we are headed with that policy is

probably to eliminate fees at the door. It doesn’t make any sense and is an impediment to people receiving care.

“Direct charges tend to dissuade people from accessing care. Indirect charges provide a level of social solidarity, equity and allow you to even out the playing field. The concept of mandatory participation in a plan like NHI (National Health Insurance) is really the way to go.”

Dr Sands, in a presentation delivered at the University of The Bahamas, said the notion that healthcare is free had created some “real problems” in The Bahamas’ healthcare system. “There is the issue of health financing, and the concept we have created that healthcare should be free has created some real problems in terms of maintaining capacity, building out infrastructure, getting the right

human resources,” he added. “How you debunk that view that healthcare is free will allow you the ability to fight against all these things.”

Dr Sands said The Bahamas has suffered because of both poor, and a lack of, public health policies.

“Health policymaking involves more than just the ministry of health. Health has to be incarnated in all policies of government,” he argued.

GB INSIGHT SOUGHT ON ‘Dramatic brain drain’ hampers health policy PRODUCTIVITY COUNCIL THE Grand Bahama private sector’s input on the creation of a National Productivity Council will be sought at a May 16 luncheon meeting.

The Grand Bahama Chamber of Commerceorganised event will hear from Edison Sumner, pictured, founder of Sumner Strategic Partners (SSP), who is leading the public and private sector consultation on moves to improve Bahamian workforce productivity.

The National Tripartite Council (NTC) views better worker productivity as critical to enhancing The Bahamas’ regional and international competitiveness.

It officially announced the consultation process on draft legislation to achieve this, and create the National Productivity Council, at its 2019 annual general assembly.

A former president and chief executive of the Bahamas Chamber of Commerce and Employers Confederation (BCCEC), Mr Sumner believes there is an urgent need to increase productivity in the Bahamian

labour force, but advises that all sectors may be required to implement recommendations.

“The first step approach to this process will be the passing of productivity legislation to establish the Bahamian National Productivity Council,” said Mr Sumner. “This would provide the leadership and co-ordination needed to build a more productive labour force, and will also assist with the realisation and full productivity potential of the Bahamian workforce.”

Mr Sumner will be the guest speaker at the Grand Bahama Chamber’s luncheon. He will discuss his company’s plans to engage all relevant stakeholders throughout The Bahamas to gather information that will

help craft the proposal to the Government on establishing a National Productivity Council.

“I believe that Grand Bahama has a lot to contribute to this conversation,” Mr Sumner added. “The consultation process is a collaborative partnership between the employers, workers and the Government of The Bahamas. It will take place over a three to five-month period, and we will gather comments, feedback and recommendations for the proposal, so we need to hear from all sectors.”

The Grand Bahama Chamber’s president, Greg Laroda, encouraged the Grand Bahama business community to attend. “The National Productivity Council will change our business landscape. We need to understand what the Council’s role will be, and make our contribution. I invite entrepreneurs, and executives from the public and private sector to attend this luncheon,” he added.

By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net THE “dramatic brain drain” in nursing has meant Bahamian healthcare’s human resources have not kept pace with public policy creation, a Cabinet minister is arguing.

Dr Duane Sands, during a recent presentation on public health policy at the University of The Bahamas, said: “How do we craft public health policy to consider this reality when we are seeing a dramatic brain drain in nursing?

“In 2018 there was a deficit of 528 registered nurses.

There were 528 less nurses than we need to provide adequate services across

the archipelago. That’s just the nurses. What we see is, as we are creating policy, our human resources have not kept pace.”

Besides the ever-growing need to recruit nurses and other allied health professionals, Dr Sands said The Bahamas’ healthcare needs were further complicated by the widespread prevalence of non-communicable diseases among Bahamians.

“As we craft policy and look at what is happening in terms of trends, bear in mind that 60 percent of Bahamians have three or more risk factors for noncommunicable diseases,” he added.

“Almost six out of ten Bahamians have high blood pressure, and 80 percent

of us are overweight or obese. Seventy-four percent of our deaths, which are almost a record in the world, are due to non-communicable diseases. Most of those deaths are premature. While the average Bahamians will live until they are 74 years, the last ten, I’m not sure they will enjoy it.”

Dr Sands confirmed that revisions to the list of breadbasket items will soon be forthcoming. “We have completed the recommendations for breadbasket revisions so that there will be fruit and vegetables, healthy grains cereals etc. That’s going to create a big fight with wholesalers and retailers but it will go over well with the public,” he said.

CANDIDATES COMMITTEE REPORT April 5TH, 2019 LIST OF ENDORSED NAMES: EXECUTIVE MEMBERS: 1. Rosemary E. Burrows 2. Maralyn Genette Burrows 3. William Ingraham 4. Cyril Morris Jr. 5. Wayne Thompson 6. Kameisha Delique Wells 7. Judd T. Williams TRUSTEES: 1. Jacqueline Lorene Mckenzie 2. Bolinder Newbold – Munroe 3. Vernincha Louise Delcine Simmons 4. Lana Monique Williams-Smith 5. Haldane Alfred Stubbs AREA VICE PRESIDENTS: NORTHERN BAHAMAS: 1. Ann Marie Bullard 2. Eldecia Shaquincha Ethlyn Thompson GRAND BAHAMA: 1. Quintin Howard Laroda 2. George Austin Trevor Mills.

NEW PROVIDENCE: 1. Vernon Jemell Rodgers SOUTHERN BAHAMAS: 1. Ann Louise Strachan ASSISTANT TREASURER: 1. Catherine Knowles-Stubbs 2. Katress Wells SECRETARY – GENERAL: 1. Helena Cartwright 2. Dion Damien Johnson 3. Tiffany M. Delancy-Laing ASSISTANT SECRETARY – GENERAL: 1. Juanita T. Gaitor 2. Cedricka Rolle PRESIDENT: 1. Joan Knowles-Turnquest VICE PRESIDENT: 1. Tiffany Burrell-Roberts 2. Jason Haley From the desk of John Musgrove Secretary-General The Bahamas Union of Teachers.

PAGE 4, Monday, May 6, 2019

THE TRIBUNE

Bahamas launches Kravitz led tourism push in Canada THE Ministry of Tourism has officially launched its global tourism advertising campaign, featuring rock icon Lenny Kravitz, to the Canadian market.

The promotional initiative was unveiled to Canadian travel industry and media partners on May 2 at the Bisha Hotel.

Set to the lyrics of Kravitz’s hit song, Fly Away, the TV commercial and supporting marketing campaign capture his deep personal connection to The Bahamas, as well as the wonder of exploring this nation’s 100,000 square miles by boat and plane.

The campaign debuted in January in the US, and will begin airing in broadcast markets across Canada this week. “We are excited by this campaign and honoured to partner with Lenny Kravitz. Our islands and his song fit perfectly together, allowing us to reach a broad new audience, especially digital content consumers, through authentic story-telling,” said Dionisio D’Aguilar, minister of tourism.

“The Bahamas is absolutely inspirational. We know that, and we believe

ANN RUPPENSTEIN, editor, Canadian Travel Press & Travel Courier, interviews Joy Jibrilu, director-general, Ministry of Tourism.

FROM left: Paul Strachan, senior director, Bahamas Tourist Office, Canada; Joy Jibrilu, drectorgeneral, Ministry of Tourism; Dionisio D’Aguilar, minister of tourism and aviation; Alvin Smith, Bahamas high commissioner; and Tommy Thompson, deputy director-general. this campaign demonstrates that to consumers in a true, direct way by sharing many of our people, their islands and their stories with the world. Setting it all to perfect music is icing on the cake,” said Joy Jibrilu, the Ministry of Tourism’s director-general.

Written in The Bahamas, Fly Away was inspired by the islands’ white sand beaches, crystal-clear waters and summers that

Kravitz spent with his grandparents and mother, the Bahamian-American actress, Roxie Roker.

Behind-the-scenes video follows Kravitz around his home base of Eleuthera, where he records music, embraces island time and appreciates “this gift we were given. ‘Take your time’ is our call to arms,” he said.

The commercial underscores The Bahamas’

appeal as a destination that inspires adventure and exudes a rock ‘n roll vibe.

“It also represents not only the edgy independence of the Bahamian people, but also speaks to those who travel to our islands for our natural beauty,” said Paul Strachan, from the Bahamas Tourist Office in Toronto.

Supporting digital content at www.bahamas. com/flyaway will allow the Ministry of Tourism and Aviation to raise awareness of The Bahamas’ many islands, which include Grand Bahama, the Abacos, the Exumas, Andros, Bimini, the Berry Islands, Cat Island, Harbour Island and Eleuthera, Long Island, San Salvador, Rum Cay, Mayaguana, Inagua, Acklins, Nassau/ Paradise Island and Crooked Island.

This is intended to draw visitors into island-specific microsites, which deliver vertical market video

GRAND Isle Resort offered a prize give away for two for one week in a two-bedroom luxury villa. Pictured from left: Jeff Todd, director of business communications for Grand Isle; Jordanna Cooper; Jeff Lake; Punch Communications; Dionisio D’Aguilar, minister of tourism and aviation; and Vandia Sands, marketing representative from the Bahamas Tourist Office in New York. content on topics ranging from island hopping and boating to culture and cuisine. They also highlight unique Bahamian experiences; places and personalities, such as Lady Di (Eleuthera’s ‘Pineapple Lady’), Junkanoo and the popular People-to-People programme that matches visitors with local hosts.

International arrivals to The Bahamas increased by 15 percent in January 2019 and 11 percent in February year-over-year, and future bookings continue to outpace the previous year.

THE TRIBUNE

Monday, May 6, 2019, PAGE 5

Fee rises targeted again to make up $40m PHA deficit FROM PAGE ONE Reiterating that “the insatiable demand for healthcare services” among Bahamians was “not matched by a willingness to pay” for them, Dr Sands said raising the necessary extra revenues on top of the PHA’s annual $217m Budget allocation was not as easy as initially thought.

He added, though, that the necessary investment had to be found if The Bahamas was to “stay abreast of new

Insurer shakes-off ‘three-year hangover’ on 22% claims fall FROM PAGE ONE

$1.507m last year.

This, in turn, enabled ICB to produce a more than six-fold increase in underwriting profits, which soared from $332,054 to $2.155m in 2018.

While some of this gain was eroded by the provision the property and casualty underwriter was forced to take relating to the wider industry’s VAT dispute with the government, Mr Duff said the claims reduction had helped to ease the “drag” on ICB’s results produced by Hurricane Matthew and, to a lesser extent, Hurricane Irma.

He explained that these storms, and the multi-million dollar claims payouts that resulted, impacted ICB and other insurers for several years beyond when they actually hit due to the way in they affected profit commissions received from their reinsurers.

Bahamian property casualty insurers buy huge amounts of reinsurance coverage because their capital bases are insufficient to insure all the risks present in this nation. In return, they are paid commissions for the profits they bring to the reinsurers that are typically based on a three-year average.

Hurricane Matthew striking The Bahamas in October 2016 cut these profit commissions for 2017, 2018 and going into 2019, Mr Duff explained, reducing a valuable income source and depressing profits for both ICB and others.

“The thing with ICB, and

developments and healthcare technology” while meeting the demands of an expectant publication.

Asked how far PMH and the PHA had progressed on efforts to implement up to 500 new and increased fees, as previously suggested, Dr Sands told Tribune Business: “We are still working out these proposals.

“At the end of the day, it’s really going to come down in its entirety to what happens with the budget’s allocation towards health

and what we’re going to propose to do in terms of shoring up revenue. We know what it costs to do the things people need and want. The question is: How are we going to pay for it?

“We are definitely walking down that road where we have agreed to adjust the fee schedule. To what extent, and the specific fees, remains a work in progress.

We’d like to be able to synergise or harmonise those with the budget. We’d like to be able to know in the fiscal year 2019-2020 how we are going to be able to meet the mandate required or requested by the public.”

With the PHA’s costs and spending levels already known, Dr Sands added that the next step was to

work out “how do we get the revenue to pay for it” given that annual budget allocations were now unable to cover the necessary expenditure.

“It’s a very real challenge,” he told Tribune Business. “There’s a nearly insatiable demand for healthcare services, but the demand for healthcare services is not met by a comparable willingness to pay for these services.

“There’s not a whole lot of elasticity or flexibility in the financing of these services. Cat scans, MRIs, neurosurgeons, cardiologists, gastroenterologists... these things have specific costs. Infrastructure maintenance and capital

investment, these things have certain costs.

“All these things we can price, budget and work out to a specific dollar amount.

It’s more than the $217m allocation to the PHA in the 2018-2019 budget.

“New technology has costs, and if we are going to keep abreast of new developments, new healthcare technologies, it means we have to invest. Training of doctors, allied healthcare staff, has specific costs associated with it.”

Dr Sands said “one of the simplest things we may have to do is enforce the existing laws”, pointing to multiple fees that had been “gazzetted” and placed into law years ago but never enforced.

While public health matters such as HIV treatment, heart disease and dialysis treatment were likely to be financed from the government’s consolidated fund via the budget, Dr Sands said obtaining revenue from civil servants and other public servants on whose behalf it paid health insurance premiums had been complicated by existing trade union agreements and policy.

“We also need the capacity to code, collect and bill that revenue,” he told Tribune Business. “The business office is being built as we speak, individuals are being recruited as we speak.

But it does not exist as of this date.”

probably a number of our competitors in the marketplace, is that when we have a large hurricane it doesn’t just affect the year in which it happens,” Mr Duff told Tribune Business, “but creates a lag for a couple of years thereafter as it impacts treaty profit commissions with reinsurers.

“Matthew impacted commissions in 2016, 2017, 2018 and 2019. It’s a three-year hangover. That’s why the last couple of years underwriting profits have been a little bit lower - not because of the hurricane, but the lag from the profit commissions drag. If we gave a decent year in2019 we will get back to where we were earning a decent level of profit commission from reinsurers.”

While ICB has now worked Matthew out of its system, Mr Duff said the lingering effects from that storm were further exacerbated by Hurricane Irma in 2017, which hit risks it had insured in the Family Islands and Turks & Caicos.

“We were able to close off Matthew at the end of last year. That’s off our books,” the ICB chief added. “We’re almost there with Irma from 2017, which resulted in a small loss in the Family Islands.

“That will be another welcome development.

Irma is another reason why there has been a continued drag on the results.

Irma again slowed down the reinsurance profit commissions.”

ICB is the carrier through which JS Johnson, the BISX-listed agent and broker, places most of its general insurance business.

While the underwriter’s five percent return on capital for 2018 was “a little bit lower than historically”, Mr

Duff said it offered further encouragement and was “a pretty reasonable position” given the recent hurricanes.

“We’re now moving to a level of return on capital earned historically,” he added. “We’re reasonably happy with the outcome [for 2018]. The hope is 2019 remains hurricane free as well, which would be really helpful.”

ICB’s total comprehensive income for the 12 months to end-December 2018 more than doubled to $1.729m, compared to $685,550 in 2017, largely due to the near-$2m decline in claims incurred.

“That in no measure was due to the reduction on claims incurred, which ran 22 percent less than internally budgeted,” Mr Duff told Tribune Business.

“That was a very welcome change.

“Motor claims costs were 13 percent down on 2017, and seven percent less than internally budgeted.

All these things helped, and hopefully we will see a continuation of that as we progress through 2019.

“It’s really all down to the weather. In hurricane-free years companies like ICB make a decent profit and return on capital. We need those years to make up for the Matthew-type years of 2016. We’re looking for a couple of years of hurricane-free activity in The Bahamas.”

Mr Duff said that while reinsurers had likely been hoping for further rate increases in 2019 to compensate for Matthew and Irma-related losses, premiums seemed to be “flat” and “levelling off” during the early part of this year compared to 2018.

“On the back of increases

in premium we were able to drive through in 2018, reinsurers I think were hoping to see further increases but maybe not as drastic as the previous year,” he added.

“What we’re seeing in the first quarter is that original rates are levelling off.

I would probably share the view of RoyalStar in suggesting that premium rates

will be flat this year, and it’s what we’re seeing from the agent side. I think reinsurers will be reasonably happy if rates stabilise in 2019.”

To advertise in The Tribune, contact 502-2394

PAGE 6, Monday, May 6, 2019 FROM PAGE ONE In its response, crafted by the ParrisWhittaker law firm, the regulator said section 4 (2) of the Electricity Act showed it was intended to apply to Freeport when it said: “This Act applies to the entirety of The Bahamas, inclusive of the Port area in the island of Grand Bahama.”

“Parliament has therefore made its intentions clear that the Act, and the powers of the defendant

URCA reignites Freeport energy regulation battle

[URCA] thereunder should apply to the Port area, and by extension to the Port Authority and its

LEGAL NOTICE

NOTICE SANTANDER INVESTMENT LIMITED (In Voluntary Liquidation)

TAKE NOTICE that the above-named Company was put into liquidation on the 22nd day of April, 2019 by a resolution passed by the sole member of the Company on the 19th day of April, 2019.

AND FURTHER TAKE NOTICE that Pablo Rodriguez Müller of Goodman’s Bay Corporate Centre, 3rd Floor, West Bay Street & Seaview Drive, Nassau, Bahamas has been appointed Voluntary Liquidator of the Company.

Dated the 30th day of April, 2019 HIGGS & JOHNSON Lyford Crescent, Western Road Lyford Cay, The Bahamas Attorneys for the Voluntary Liquidator

licensees,” URCA argued.

Pointing to the authority bestowed by the Act, which authorises it to licence and regulate all providers involved in the public generation, transmission, distribution and supply of electricity, URCA alleged that Parliament wanted it to cover the whole of The Bahamas including Freeport.

“In so providing, Parliament thereby expressly recognised the importance of including the whole of The Bahamas within the remit of [URCA’s] licensing and regulatory functions such that the exclusion of the port area or any other part of the island of Grand Bahama from the regime of the Act would undermine the statutory purposes of the Act and the proper performance of [URCA’s] statutory functions under the National Energy Policy and Electricity Sector Policy Objectives,” URCA’s legal filings

alleged.

While agreeing that the Hawksbill Creek Agreement provisions relied upon by GB Power were inconsistent with the Electricity Act, URCA’s position is this shows Parliament intended that statute law override Freeport’s founding treaty.

“It is apparent from the terms of the provisions cited that Parliament nevertheless determined that the Act should apply within the Port area,” URCA argued.

“Parliament has therefore derogated from the rights (whether contractual, statutory or otherwise) granted to the Port Authority by the Government of The Bahamas under the Hawksbill Creek Agreements, as it is constitutionally entitled to do.

“To the extent necessary for it to do so, the enactment of the Act has thereby implicitly repealed the said clauses of the Hawksbill Creek Agreement and/or the Acts permitting or giving effect to the same. It is denied (if it be alleged) that there is any constitutional principle or other principle of law that precludes Parliament from so acting.”

GB Power’s position is that itself and the GBPA “have been vested with the sole authority to operate utilities”, including

electricity generation and transmission and distribution, within the Port area until the Hawksbill Creek’s expiration in 2054.

It wants its own Supreme Court declaration that the Electricity Act 2015 “contravenes the rights and privileges” granted to it by Freeport’s founding law, and that URCA has no authority over it - including its operations outside the Port area in east and west End. Yet URCA retaliated: “By its claim herein, the plaintiff [GB Power] has put in issue the application of the Act within the Port area, and the jurisdiction of the defendant thereunder.” As a result, it wants a declaration that “the Act applies in its entirety within the Port area notwithstanding the provisions of the Hawksbill Creek Agreement” and “prevails” over the latter.

The regulator also wants the Supreme Court to rule that GB Power must accept a licence from it and abide by its terms, including the payment of regulatory fees.

Responsibility for utilities regulation in Freeport has been an unresolved issue for years, with both the government and GBPA remaining relatively silent on the matter.

GB Power’s stance, though, contradicted the 2016 Memorandum of

THE TRIBUNE Understanding (MoU) between the then-Christie administration and the GBPA’s owners.

Contemplating fundamental and sweeping changes to Freeport’s regulatory and governance structure, it committed the GBPA to far-reaching reforms, and the potential devolution of some of its quasi-governmental powers/regulatory authority, via their ‘harmonisation’ with national laws and government policies/ regulations.

The MoU’s clause 1.18 suggests this ‘harmonisation’ will be achieved through “existing independent regulators” such as URCA. Several observers have suggested that the whole idea of an enclave such as the Port area, with its own separate regulatory regime, is outdated and ill-matched with modern governance and the concept of having a national regulator.

Some, too, believe that GB Power may be using its legal action as leverage or a bargaining chip in its negotiations with the government over renewal of its East and West End supply agreements, which expired last year.

The revival of its legal battle with URCA comes at a delicate time, with the regulator set to hold a series of town meetings on Grand Bahama to remind residents of what it does and possibly swing public opinion behind its position.

GB Power has also recently come under fire from some quarters over the way it handled the controversy surrounding “fake” energy-saving devices installed by some customers.

LEGAL NOTICE

NOTICE SANTANDER INVESTMENT LIMITED (In Voluntary Liquidation)

NOTICE is hereby given that the Creditors of the abovenamed Company are required, on or before the 22nd day of May, 2019, to send their names and addresses, with particulars of their debts or claims, and the names and addresses of their Attorneys (if any), to the undersigned, Pablo Rodriguez Müller of Goodman’s Bay Corporate Centre, 3rd Floor, West Bay Street & Seaview Drive, P.O. Box N-1682, Nassau, Bahamas, pablo.muller@gruposantander. com, the Voluntary Liquidator of the said Company.

Dated the 30th day of April, 2019 PABLO RODRIGUEZ MÜLLER Voluntary Liquidator

To advertise in The Tribune, contact 502-2394

THE TRIBUNE

Monday, May 6, 2019, PAGE 7

IXP plan signals Bahamas ‘serious technology player’ FROM PAGE ONE URCA’s move, first reported in this newspaper on Friday. “Two things happen when we can offer an IXP or that same service in The Bahamas. One, it reduces costs to the carriers and they will become more competitive in terms of the cost. You don’t have to route messages and traffic outside the country, and then back in.

“The other thing that works well for us is that having an IXP in The Bahamas, you can have determinative routing. That means that institutions in The Bahamas who like to have access to the Internet, the messages they send will be routed in a pre-determined way. The IXP allows them to do that.

“It becomes a lot more efficient in how you switch or route information over the Internet. Determinative routing determines which direction information is routed from or to a potential source. It’s [an IXP] one of those recommendations we made as part of the tech hub,” Dr Moxey continued.

“This is pretty big. It really puts us on a footing where we can provide the services these companies expect. It says The Bahamas can be looked at as a really serious player in terms of the level of services and technology infrastructure it can provide. It takes away the negative where you have people saying we don’t provide IXP services.”

IXPs are points, facilities or infrastructure on the Internet where ISPs and content distributors connect with each other on the Internet. They are seen as key components of a country’s digital infrastructure, serving as “centralised clearing houses” for the exchange of Internet traffic between technology-based companies.

But, while Caribbean rivals such as Barbados, the British Virgin Islands, Jamaica, Trinidad & Tobago and even Cuba all have their own IXPs, The Bahamas has yet to make such a move despite its ambitions to develop a “technology hub” in Grand Bahama.

“As a result, local ISPs

routinely route locallygenerated Internet traffic destined for local users through intermediary networks and digital infrastructure in another country. In this case, the traffic exits The Bahamas through an intermediary network or a switching facility in Florida and then re-enters The Bahamas,” URCA said in its consultation document.

“This practice, often referred to as ‘hair-pinning’, ‘tromboning’, or ‘boomerang’ routing (due to the path’s shape) is known to be inefficient, adds costs to the operations of ISPs and content distributors/aggregators, and has the potential to stifle development of a local content sector.

“Hair-pinning local Internet transmission outside a country also gives rise to privacy or data protection concerns in countries that excessively depend on digital infrastructure and enterprises in another country.”

URCA said Kenya’s creation of its own IXP reduced the time between when messages were sent and received from “200600 milliseconds to 2-10

milliseconds”. For Nigeria, the reduction was “from 200-400 milliseconds to 2-10 milliseconds”, and both countries - as well as Egypt - were said to have slashed annual costs for international transmissions by $1m.

Dr Moxey told Tribune Business that creating an IXP would remove a negative “off the table” by placing The Bahamas on the same competitive footing as its Caribbean and international rivals.

He added that the ability to provide determinative routing via an IXP would “make us attractive” to companies that valued data and content security - the likes of financial services institutions, Fintech (financial technology) companies and other technology entities.

“They see having an IXP or regulatory framework for an IXP in The Bahamas as having real value,” Dr Moxey told this newspaper.

“It’s a positive step, especially when you’re talking about building a technology hub and offering services consistent with being a regulated technology provider.

“When we talk about technology companies, Fintech companies, one thing that’s important to them is security of data and having a certain degree of confidence over how information is routed through

the internet. An IXP provides those services.

“An IXP is one of those very important services to offer clients, especially clients in financial services and other institutions where determinative routing is very important to them.

This is also all consistent with local coverage, access and content.”

Dr Moxey suggested a consortium of Bahamian Internet Service Providers (ISPs) and local technology firms would likely have to own the IXP - a suggestion that was in line with URCA’s thoughts.

The electronic communications sector regulator is

proposing, subject to industry feedback, that the Bahamian IXP be set up as a non-profit, cost recovery type of venture that would be owned by a group of industry stakeholders.

Still, URCA acknowledged: “One advantage of this option is that it is likely to be more closely aligned with market needs once stakeholders’ participation in its implementation and management is provided.

“As such, it is likely to be most responsive to the needs of stakeholders as they have influence over the policy direction of the IXP. This option would

be most compatible with attracting external players to the IXP. “On the other hand, this option may not be viable, given current market structure in The Bahamas.

In particular, it is not clear to URCA that stakeholders would co-operate, as their economic interests may not be aligned. In addition, there is limited precedent for this type of ownership and operational model in The Bahamas.

Thus, questions remain whether this is compatible with the state of the market.

www.ub.edu.bs

CAREER OPPORTUNITY SENIOR ADMINISTRATION Suitably qualified candidates are invited to submit applications for the following position:

Executive Vice President who will serve as the chief operating officer of the University of The Bahamas system. Reporting to the President, the Executive Vice President has the primary responsibility of assisting the President in maximizing the institution’s operating performance and achievement of goals. The EVP’s duties include, but are not limited to, overseeing the implementation of the University’s Board-approved strategic plan across all areas of the University; initiating and managing strategic alliances; participating in the development of operating and capital budgets; and assuring effective guidelines and standard operating procedures for the management of the various units reporting to the President. The EVP will work collaboratively with the President’s Cabinet and staff and will provide the President and Board of Trustees with regular updates on the achievement status of academic milestones, admissions and retention initiatives and strategic planning initiatives. In the absence of the President, or during a vacancy in the Office of the President, the Executive Vice President shall be the most senior officer who shall, upon authorization of the Board, exercise and perform the functions and duties of the President. When requested, the EVP will also assist in fundraising and other development or alumni activities.

Essential Qualifications are: • Ten or more years of highly successful senior-level higher education administrative leadership experience or the equivalent as determined by the university; • Earned doctorate degree or other terminal degree; • Excellent oral and written communication skills are essential; • Must have collaborative leadership style and be comfortable in an egalitarian environment; • Excellent interpersonal skills are essential.

Applications should submit a Letter of Interest, Curriculum Vitae and contact information for three professional references to: Ms. Maelynn Seymour-Major Chief of Staff Email: maelynn.seymour-major@ub.edu.bs Office of the President University of The Bahamas University Drive P. O. Box N-4912 Nassau, The Bahamas Electronic applications are preferred. All applications must be submitted by 31st May, 2019. Late submission will not be considered. Employment is expected to begin July 2019. Official transcripts for all degrees and three current letters of recommendation are required prior to the commencement of employment.

The detailed position announcement is available at: http://www.ub.edu.bs/about-us/career-opportunities/administration/.

PAGE 8, Monday, May 6, 2019

THE TRIBUNE

Bahamas failing to ‘leverage internet into innovation’ FROM PAGE ONE considerably, the limited use of the Internet to fuel business innovation and service delivery in both the private and public sectors locally remains an issue,” URCA argued.

“It is URCA’s view that The Bahamas is not leveraging the full potential of the Internet for driving digital entrepreneurship, and business development and innovation. URCA further agrees with assertions that government and private

stakeholders can stimulate demand for online content and services by adopting policies to support local content and traffic exchange.”

It added: “URCA further understands that major international content providers do not have a physical presence in The Bahamas. For this reason, the popular international websites and services in The Bahamas are hosted overseas.

“Given prevailing practice, traffic to these sites travel over

expensive international links before coming back in The Bahamas and are therefore subject to delays (increased latency) and increased packet loss. Same is true when local websites and services are hosted outside The Bahamas.

“Given this, URCA considers that the presence of local IXPs would induce popular web content providers to host their content in-country in order to provide quality services to end-users.”

While there was nothing in

Bahamian law or regulation to mandate that local ISPs keep domestic Internet traffic in this nation, URCA expressed concern that its IXP plan may be undermined by one unnamed company’s determination to keep routing messages and other transmissions outside this nation.

“URCA is concerned that a decision by a major ISP to continue to route domestic traffic externally could undermine entry of an IXP in The Bahamas,” it added.

“Given URCA’s intent, URCA proposes to require Internet infrastructure companies (including cellular/ mobile) to keep local Internet traffic in The Bahamas unless exceptional circumstances prevent it. URCA proposes to implement this measure either by way of

an amendment to existing licences or by way of a separate regulatory measure.”

URCA described an IXP as “critical infrastructure” in localising Internet traffic, and added: “IXPs engender competition and investment in Internet infrastructure and services.

“Accordingly, it is URCA’s viewpoint that the building of local IXPs should induce ISPs and content aggregators to connect directly with one another and exchange domestic Internet within The Bahamas, thus reducing or eliminating their dependence on expensive international links for transport.”

The most popular websites visited by Bahamians, according to URCA, were search engines such as Google and Yahoo, together

with social media engines such as Facebook and sites like Amazon, Netflix, ebay, Instagram and Wikipedia.

Pornhub.com, the world’s largest online adult pornography site, was the 13th most-visited website among Bahamians, with each visitor spending an average of almost nine minutes on the site and looking at three-and-a-half pages.

It proved more popular than the government’s own website and that of the most popular web shop, Island Luck, which came in 19th and 20th, respectively, among the websites most visited by Bahamians.

“Evidence also exists to show that an increasing number of Bahamians are signing on to social media sites, especially Facebook.

With 210,000 Facebook subscribers in 2016, The Bahamas had the seventh most Facebook users in the Caribbean region,” URCA said.

“As of March 2019, the number of Facebook subscribers in The Bahamas was approximately 211,936 or a penetration rate of 64.59 percent, up from a base of 64 percent in 2016. Note that a penetration rate of 64.59 percent is significantly higher than the penetration rates for other social networks.

“As regards to local content, Alexa.com published that amongst the local websites frequented by residents of The Bahamas are Island Luck, Paradise Games, University of The Bahamas, websites of leading commercial banks, Bluepostal, Bahamas Local, Nassau Guardian, Tribune 242 and Bahamas.Gov.bs.”

VACANCY Government of The Commonwealth of The Bahamas

PREQUALIFICATION FOR PROCUREMENT General Contracting Services The EXUMA International Airport Terminal Building and associated Civil Works (Landside only) Moss Town, Great Exuma, BAHAMAS Invitation for Prequalification No.: 01/2019 ICB No.: CW 001 Project: Airport Infrastructure Program Contracting Agency: Ministry of Public Works Deadline to collect Prequalification Documents May 30th, 2019 at 4:00pm Bahamas Local Time and can be collected from Ministry of Public Works.

Director’s Office John F. Kennedy. Drive P. O. Box N-8156 Nassau, Bahamas Tel: 1 242 302-9527 or 302-9530 Deadline to submit Prequalification Documents June 13th, 2019 by 4:00pm Bahamas Local Time.

Further information can be obtained by email: PIUAIP@bahamas.gov.bs

Our company is in search of a motivated and experienced

Compliance Officer

The ideal candidate will be professional, highly-analytical, and possess excellent written and verbal communication skills. To prosper in this role, the individual must be fluent in risk management and our industry’s principles. The successful candidate will be required to implement and manage an effective legal compliance program; develop and review company policies; advise management on the company’s compliance with laws and regulations through detailed reports; create and manage effective action plans in response to audit discoveries and compliance violations; regularly audit company operations, procedures, practices, and documents to identify/determine possible weaknesses or risk. Preferably 5 years’ experience.

Competitive remuneration package is commensurate with qualifications and experience.

Qualified applicants should send their CVs to:

compliancelegal1@gmail.com

Only applicants with the required criteria need apply.

THE TRIBUNE

Monday, May 6, 2019, PAGE 9

SANDERS CALLS FOR BREAKING UP BIG AGRICULTURE MONOPOLIES OSAGE, IOWA Associated Press DEMOCRATIC presidential candidate Bernie Sanders yesterday proposed a sweeping agriculture and rural investment plan to break up big agriculture monopolies and shift farm subsidies toward small family farmers.

“I think a farmer that produces the food we eat may be almost as important as some crook on Wall Street who destroys the economy,” Sanders said during a campaign event in Osage, a town of fewer than 4,000 people. “Those of us who come from rural America have nothing to be ashamed about, and the time is long overdue for us to stand up and fight for our way of life.”

Sanders’ plan expands on themes that have been central to his presidential campaign in Iowa since the start, including his emphasis on rural America and pledge to take on and break up big corporations.

During his speech yesterday, Sanders outlined the dire circumstances confronting rural America — population decline, school and hospital closures and rising addiction and suicide rates in many rural counties nationwide — as the impetus for his policy.

His plan includes a

DEMOCRATIC presidential candidate Sen Bernie Sanders. number of antitrust proposals, including breaking up existing agriculture monopolies and placing a moratorium on future mergers by big agriculture companies. He would also ban “vertically integrated” agribusinesses — companies that control multiple levels of production and processing of a product.

One of his competitors in the Democratic race, Massachusetts Sen Elizabeth Warren, included several of those antitrust planks in the agriculture policy she released in March. But Sanders’ policy is more expansive than just targeting major agriculture corporations — he’s also proposing greater government involvement in setting

price controls and managing supply and demand of agriculture commodities.

His plan calls for a shift from the current farm subsidy system toward a “parity system”, which means “setting price floors and matching supply with demand so farmers are guaranteed the cost of production and family living expenses”. Critics of the farm bill have argued that the current government subsidy system favours large family farms and corporate farms over small family farms, and Sanders’ policy aims to make that distribution more equal.

Such a major change in agriculture policy would require congressional action and would likely face

fierce opposition from the farm lobby — but Sanders pledged to fight for farmers against corporate interests.

“In rural America, we are seeing giant agribusiness conglomerates extract

as much wealth out of small communities as they possibly can while family farmers are going bankrupt and in many ways are being treated like modern-day indentured servants,” Sanders said.

Sanders would also classify food supply security as a national security issue and increase scrutiny over foreign ownership of American farmland. And he suggests re-establishing a “national grain and feed reserve” in case of a natural disaster or severe weather event — a proposal inspired in part by the recent flooding on Iowa’s eastern and western borders, which swamped acres of cropland and wiped out farmers’ stores.

Sanders also wants to change patent law to protect small farmers from lawsuits brought by corporate farms,

strengthen organic standards and bolster programs aimed at supporting minority farmers. He includes in his proposal planks focused on rural economic and infrastructure development and on incentivising the agriculture industry to help combat climate change by shifting to more sustainable farming practices.

Sanders’ agriculture proposal includes planks that specifically tailor some of his broader policy priorities to rural America. He has proposed increasing funding for public education and establishing a universal childcare system, and his agriculture plan seeks an increase in funding for rural education and a universal childcare system that provides access for rural Americans to daycare.

PAGE 10, Monday, May 6, 2019

THE TRIBUNE

‘Avengers Endgame’ nears global record with over $2bn

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LOS ANGELES Associated Press “AVENGERS: Endgame” continued its global domination at the box office in a second week victory lap that saw the blockbuster cross the $2bn mark in record time and unseat “Titanic” as the second highest-grossing film ever worldwide.

Domestically, newcomers, including thrillers (“The Intruder”), well-reviewed comedies (“Long Shot”) or animated family fare (“Uglydolls”) were left in the dust to pick up the scraps.

The Walt Disney Co estimated yesterday that “Endgame” added $145.8m from North American theaters and $282.2m internationally bringing its global total to $2.2bn. “Endgame” is one of five movies to ever reach that threshold and, not accounting for inflation, is now second worldwide only to “Avatar’s” $2.8bn. “Avatar” reached $2bn in 47 days of release compared with 11 for “Endgame”, although in 2009 the theatrical landscape was different, most notably so in China.

“The sprint to $2bn is unbelievable. We’re in uncharted territory,” said Paul Dergarabedian, the senior media analyst for Comscore. “Usually films like this are marathoners.”

To reach “Avatar’s” global record, however, “Endgame” will have to turn into a marathoner itself and the summer movie season is only going to get more competitive.

Still, “it’s got a real chance at getting there,” Dergarabedian said.

Domestically, “Endgame”, which is still playing on 4,662 screens, scored the second biggest second weekend ever with a sum that would be impressive for any film on opening weekend. Even its 59% drop is notable considering how front-loaded it was. “Endgame” has now grossed $619.7m in North America, making it the ninth biggest of all time, behind “Star Wars:

MARKET REPORT THURSDAY, 2 MAY 2019

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

BISX ALL SHARE INDEX: CLOSE 2,143.78 | CHG -9.30 | %CHG -0.43 | YTD 34.33 | YTD% 1.63 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 2.00 8.80 6.11 3.54 10.00 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 3.87 17.43 6.00 5.39 2.47 1.98 2.05 10.50 6.16 4.47 10.64 2.58 1.79 9.29 6.60 15.57 7.25 3.50 14.00

CLOSE 3.88 17.43 6.00 5.39 2.47 1.98 2.01 10.50 6.16 4.47 10.00 2.57 1.79 9.12 6.60 15.57 7.25 3.50 14.00

CHANGE 0.01 0.00 0.00 0.00 0.00 0.00 -0.04 0.00 0.00 0.00 -0.64 -0.01 0.00 -0.17 0.00 0.00 0.00 0.00 0.00

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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 1,600

4,500 2,000 4,100

1,300

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 23.2 18.7 N/M 16.7 N/M N/M -4.7 14.8 12.8 29.0 15.9 25.2 8.6 N/M 10.4 18.7 7.6 17.1 22.2

YIELD 3.35% 7.23% 0.00% 4.45% 0.00% 1.01% 0.00% 6.76% 3.57% 2.68% 6.20% 2.65% 3.35% 3.60% 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%

The Last Jedi”.

New films entering the marketplace hardly stood a chance, but some saw successes even in the shadow of “Endgame”.

In second place, “The Intruder”, a modestly budgeted ($8m) thriller with Dennis Quaid and Meagan Good, survived poor reviews and did the best of the batch with $11m in box office receipts.

The Sony/Screen Gems film was released on 2,222 screens.

Although close behind on the charts in third place, Lionsgate and Point Grey’s “Long Shot”, a politicallythemed romantic comedy with Seth Rogen and Charlize Theron, failed to make a significant dent against its pricier budget.

The film, which was the best reviewed of the newcomers by far, grossed an estimated $10m from 3,230 screens, against a reported $40m budget. But wordof-mouth could also help propel “Long Shot” to profits ultimately. “‘Long Shot’ has a shot at staying power,” Dergarabedian said. “But there’s a lot of noise to rise above.”

The unluckiest of the new movies was “Uglydolls”, an animated film based on the toys featuring the voices of Kelly Clarkson, Nick Jonas, Blake Shelton and Janelle Monae, which placed fourth with $8.5m.

STXfilms’ first animated feature cost $45m to produce after production rebates. It does, however, still have a China release later this summer.

Industry-wide, the continued success of “Endgame” has also helped the box office deficit, which went from down 13.2% last weekend to down 10.9% this weekend. And Dergarabedian said that the industry may be on its way to a record summer, still.

“It’s not just about one movie this summer,” he said. “There’s a lot more to come from every studio.

Diversity of content will rule the day.”

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL

The Public is hereby advised that I, RENDY BETHEL of Pride Estates, of the Southern District of New Providence, Bahamas, intend to change my name to RENDY BETHEL-AVILA. 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, New Providence, Bahamas no later than thirty (30) days after the date of the publication of this notice.

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

NOTICE NOTICE is hereby given that OCTAMA VIXAMAR of Lumumba Lane, 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 6thday of May, 2019 to the Minister responsible for Nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

THE TRIBUNE

Monday, May 6, 2019, PAGE 11

IPOs bring tax jackpot for California; can lawmakers resist?

SACRAMENTO Associated Press UBER and Airbnb are among at least six California-based companies valued at more than $1bn expected to go public this year, creating a new class of millionaires and billionaires and a welcome quandary for the state’s budget writers.

Though it’s tough to gauge the total tax revenue all those profits will produce, it’s not a stretch to estimate California will add $1bn or more after the initial public offerings, or IPOs, are made.

“I’ve never experienced anything like this,” said Daniel Morgan, senior portfolio manager for the investment firm Synovus Trust. “It’s definitely going to be a big lottery for everyone. Not only tech owners, but I think the state of California.”

It’s an enticing opportunity for lawmakers to fund chosen causes — a temptation legislative leaders are trying to resist. Lawmakers can’t count on the money being there every year, and Assembly Budget Chairman Phil Ting said they are intent on learning from their past mistakes.

“My sense of it is we will have to be very careful,” said Ting, a Democrat from San Francisco. “Our overall budget is $200bn. So even if there was a $1bn or $2bn windfall, let’s say, it doesn’t make or break the budget — unless we spend it in the wrong way.”

In the late 1990s and early 2000s, that’s what happened.

Lawmakers were quick to expand state spending amid a booming tech economy and the corporate IPOs that went with it, only to see those gains vanish when the bubble burst and ushered in a recession and a $14bn budget gap.

“From a state budget perspective, major IPOs are a bit like rainbows. They are lovely to watch but they don’t last for very long,” said HD Palmer, deputy director for external affairs at the California Department of Finance, which manages Gov Gavin Newsom’s budget plans.

It could be difficult for lawmakers to keep their hands off any extra money because, this year, California has so much of it.

The state has a projected $21bn surplus in the first year of Newsom’s administration, and that’s without factoring in money from the IPO wave. Former Gov Jerry Brown began his administration with a deficit, and he frequently clashed with fellow Democrats who wanted to spend more while he wanted to save it.

As he left office, with the California economy humming, Brown warned Newsom might have a tough time convincing the Legislature not to drastically increase spending.

Newsom did propose new recurring spending, including proposals to improve drinking water in rural areas

A MAN walks into the building that houses the headquarters of Uber in San Francisco. Uber and at least five other major California companies are scheduled to go public this year, and when it happens it will produce a tax windfall for state government. and bolster the state’s 911 emergency call system. But he proposed new taxes to pay for them instead of relying on the state surplus.

Newsom’s budget proposal will be revised next month based on revenue collections. Ting said it likely will not include revenue from the IPOs. David Wolfe is skeptical. The legislative director of the Howard Jarvis Taxpayers Association noted California has historically had trouble saving money during the good years.

“You see these surpluses out there and it’s deja vu all over again,” said Wolfe, whose organisation favours limited taxation. “Are we going to spend this money on one-time programs?

Given California’s history, I think the likelihood of that is doubtful.”

IPO windfalls are unusual in the world of state budgets, but they have become common in California, a state with nearly 40 million people that boasts the fifth-largest economy in the world. The state budget relies heavily on the wealthiest earners; in 2017, the top 1% were responsible for more than 47% of the state’s income tax collections.

Most of that comes in capital gains, which in California is taxed the same as income and are heavily dependent on the stock market.

California got nearly $11bn from capital gains taxes in 2007, only to see it drop to $4.6bn in 2008 and $2.3bn in 2009 during the Great Recession.

This budget year, state officials expect to get $15.2bn from capital gains taxes, the largest amount ever. And that’s without adding in of the expected jackpot from the major IPOs. Companies including ride-sharing startup Lyft and social media website Pinterest already have

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gone public, but it could be months before the state starts seeing the tax revenue from them. Uber, corporate chat room provider Slack, home rental site Airbnb and data software company Palantir are poised to go public later this year.

Of those, Uber is the behemoth. Experts predict the company could be valued as much as $91bn, a decline from initial estimates but still near Facebook’s $100bn initial public offering in 2012 that netted California $1.3bn in tax revenue.

Predicting how much money California will get from these IPOs is difficult. Facebook’s 2012 IPO was unusual in that most of the state’s tax gains came from one person: CEO and founder Mark Zuckerberg, whose wealth state officials could easily guess based on the company’s regulatory filings.

This year, more companies going public involving more investors makes it harder to forecast.