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BAHA MAR CREDITORS PROTECTED AGAINST ‘BACKROOM DEALS’ D’Aguilar ‘delighted’ he and Minister agree But Chapter 11 haircut claim ‘totally untrue’
WEDNESDAY, MAY 25, 2016
‘Financial constraints’ hit $20m harbour repair By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
Ex-director hits back at ‘vitriolic’ Fitzgerald
THE Port Department’s “financial constraints” are preventing it from carrying out a $20 million repair to Nassau harbour’s breakwater, and threatening to undermine operations at the Caribbean’s most efficient report. A newly-released Caribbean Development Bank report has recommended that institutional reforms transfer the legal responsibilities for such activities from the government-run agency to Arawak Port
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net AN EX-BAHA MAR director yesterday expressed delight that a Cabinet Minister agreed all Bahamian creditors should be compensated, even if the Government “cuts a backroom deal with the Chinese”. Dionisio D’Aguilar, though, told Tribune Business that suggestions by Jerome Fitzgerald, minister of education, science and technology, of Baha Mar’s Bahamian creditors taking a ‘haircut’ through the Chapter 11 process were “completely untrue”. Arguing that there was “no need” for Mr Fitzgerald to label him “a total and complete hypocrite”, Mr D’Aguilar hit back by calling for the Minister to focus more on his portfolio than business matters. And he urged Mr Fitzgerald to leave such situations to “successful businessmen”, a seeming reference to RND Holdings, in which the Minister - prior to becoming and MP and Cabinet Minister - sold his majority equity interest to Colina. “I don’t understand why he’s getting so excited and got to be vitriolic,” Mr D’Aguilar told Tribune Business. “There’s no reason to get down and dirty. “He [Mr Fitzgerald] seems to be in the press a lot these days, fighting Fred Smith and Save the Bays, and I guess he needs to prove he’s a bad ass to the PLP and pandering to his base. He must be vying for the leadership, attacking opponents of the Government’s policies.” Mr Fitzgerald last week said it was ironic that Mr D’Aguilar was calling for SEE PAGE FOUR
Chamber chief ‘fully expects responsible’ Budget from Gov’t By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
Bowe urges no spending spree
THE Chamber’s chairman yesterday that we ‘cannot afford’ said he “fully expects the Government to be responsible” with today’s Budget, Asks if Bahamas ‘moving as we and not engage in pre-election spending need’ to end deficits sprees that will throw the Bahamas’ fiscal consolidation plan off-course. ‘balanced Budget’. Gowon Bowe told Tribune Reaching the latter goal Business he was giving the would curtail any further inChristie administration “the crease in the $6.7 billion nabenefit of the doubt” ahead of tional debt, which was equivathis morning’s Budget commulent to 76.3 per cent of GDP at nication, given that it knew the year-end 2015, and growing furBahamas was still in dire fiscal ther beyond the IMF’s ‘danger straits. threshold’. Emphasising that pre-election “I’ve not set any expectadeficits and spending that the tions,” Mr Bowe said of the country “cannot afford” were 2017-2018 Budget. “I think the what the Bahamian people Prime Minister and the Govneeded least, Mr Bowe added GOWON Bowe ernment fully know what’s facthat the Government’s desire to ing the country in terms of our retain office needed to be balfiscal situation. anced with fiscal realities. “I fully expect them to be responsiAcknowledging the collective $1.6 billion increase in the national debt over ble, so I’m giving them the benefit of the the three years to end-2015, the Cham- doubt. “Hopefully, they will be listening to ber chair said history was less important than where the Government’s finances the technical people telling them that they can’t afford certain elements, and were headed. He argued that the key was whether hopefully they will not depart from the the Bahamas was “moving as rapidly as fiscal consolidation plan they have bewe need to”, and as quickly as the Gov- cause it runs smack dab into the general ernment has projected, towards eliminat- election cycle.” ing the GFS fiscal deficit and achieving a SEE PAGE FOUR
‘Magical partnership’ urged between Gov’t and private business Cost, ease of business reform key Budget priority Private sector hoping for Business Licence change By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net The Government and private sector were yesterday urged to form “a magical partnership” to combat high unemployment and escalating levels of violent crime. Speaking ahead of today’s 2016-2017 Budget communication, Edison Sumner, the Chamber of Commerce’s chief executive, told Tribune Business that the Government needed to prioritise improvements in the ease - and cost - of doing business in the Bahamas. And, in return, the private sector needed to ‘play by the rules’, competing on “a level playing field” and ensuring that all aspects of society - including the Bahamian taxpayer and consumer - benefited from their activities. “The only way we can fight the unemployment levels, and the crime issue in the country, is if we have businesses and companies prepared to hire people, and people going into business and creating opportunities for themselves,” Mr Sumner told Tribune Busi-
Election should not mean fiscal consolidation deviation
CEO of Chamber of Commerce Edison Sumner. ness. “To reduce crime, there has to be a magical partnership between the Government and the private sector to move the economy forward.” He added: “For that to happen, the Government has to demonstrate it will cause improvements to the ease of doing business in this country. “The private sector has to show it’s compliant with the rules, and not participating in the underground or informal economy, but operating in an economy where there is a level playing field and where we all benefit.” Mr Sumner confirmed that specific initiatives and strategies to improve the cost, and ease, of doing business in the Bahamas were among the private sector’s chief requirements for SEE PAGE TWO
Threaten most efficient port in Caribbean Arawak port to have 45% volume growth to 2025 Report: Limited union power boosts productivity
Development Company (APD). The report, entitled ‘Transforming the Caribbean port services industry’, said such reforms would allow the Nassau Container Port’s BISX-listed operator to cease paying port dues to the Port Department. SEE PAGE FIVE
QC slams ‘abysmal consultation failure’ Abaco Club project Judicial Review gets go-ahead Smith likens cases to ‘broken record repeating’ Urges developers to respect locals, not fight them By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A QC yesterday slammed “the complete and abysmal failure” of seven government departments and agencies to consult local residents over the Abaco Club’s proposed marina project. Fred Smith QC, the Callenders & Co attorney and partner, told Tribune Business that such alleged episodes were akin to “a broken record that keeps repeating itself”, after the Supreme Court granted permission for another development-related Judicial Review to proceed. Justice Petra HannaWeekes gave Responsible Development for Abaco (RDA), acting on behalf of Little Harbour residents, leave “to issue a motion seeking Judicial Review” of the Abaco Club’s proposed development. “We are now going to
move to have the matter heard as soon as possible,” Mr Smith said, while acknowledging that the GovSEE PAGE THREE
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