05282020 BUSINESS

business@tribunemedia.net

THURSDAY, MAY 28, 2020

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$10bn debt blow-out ‘our worst nightmare’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

P

RIVATE sector executives yesterday warned “our worst nightmare has come true” after the government unveiled record deficit spending that will carry the national debt past the $10bn mark by June 2022.

K Peter Turnquest, deputy prime minister, told the House of Assembly that the $1.3bn deficit projected for the upcoming 2020-2021 budget year represented what he described as “the biggest fiscal response in 100 years” to

• $1.3bn deficit ‘biggest response in 100 years’ • COVID-19 produces $900m revenue plunge • Private sector frets: ‘Who will pay it back?’

K PETER TURNQUEST

the twin multi-billion dollar challenges created by the COVID-19 pandemic and Hurricane Dorian.

Unveiling a record fiscal deficit, with revenues down by more than $900m compared to the previous fiscal year’s forecast, Mr Turnquest said the government had elected to undertake massive borrowing to keep the economy “afloat” rather than let it be overwhelmed by COVID-19’s economic lockdown and 30

percent-plus unemployment rate.

Repeating several times that the Bahamas needed to seize the moment to “transform a crisis into opportunity”, he argued that the government “cannot be tepid in our response” and adopt the “do nothing or do too little” approach as this would leave the economy in a “much less desirable

SEE PAGE 6

Economy’s shrink to exceed $1.3bn deficit

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE Bahamian economy will this year shrink by a greater amount than the government’s projected $1.3bn deficit for the upcoming 2020-2021 fiscal year, the deputy prime minister revealed yesterday.

K Peter Turnquest, unveiling the 2020-2021 budget in the House of Assembly, said the Central Bank of The Bahamas is projecting that the economy will contract by 12 percent this year due to the COVID-19 pandemic combined with the lingering effects of Hurricane Dorian.

This shrinkage, equivalent to just under $1.4bn, is greater than the $1.327bn deficit that the government is projected to incur as a result of the massive borrowing designed to prevent

50% cash use fall ‘ambitious, not impossible’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE government’s target to reduce Bahamian society’s cash use by 50 percent within the next five years is “ambitious but not impossible”, a well-known banker said yesterday.

Gowon Bowe, Fidelity Bank (Bahamas) chief financial officer, told Tribune Business that the COVID-19 lockdown had shown such rapid payments system modernisation

• Bahamas GDP to contract 12% this year • Fiscal consolidation thrown off to 26-27 • DPM hopeful for ‘V-shaped’ recovery the Bahamian economy’s collapse as a result of the COVID-19 shutdown. The deficit is itself equal to 11.6 percent of GDP. The deputy prime minister, meanwhile, conceded that COVID-19 had blown the government further off course from achieving the 0.5 percent budget deficit target mandated by the Fiscal Responsibility Act. He warned that this will now be achieved no earlier than the 2026-2027 fiscal year, pushing it out another two years from the revised postDorian fiscal estimates.

“Early estimates project that the government is now likely to achieve its 0.5 was achievable given how quickly Bahamians had adjusted to settling transactions by digital means.

And he revealed had had been “shocked” when he learnt that the BISXlisted bank was still settling the majority of its bills by cheque when it should be “setting the example” for businesses and individuals to switch to electronic payments.

Speaking after K Peter Turnquest, deputy prime minister, also disclosed that the government was aiming to cut cheque usage by 50 percent within three years, Mr Bowe said: “It is certainly not an unrealistic target. Is it ambitious? Yes, but the last two months have demonstrated it’s not impossible...

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Budget’s $55m for small firms ‘too moderate’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE government was yesterday urged to almost double the small business financing provided in the 2020-2021 budget to $100m, a sector consultant arguing that the planned allocation was “too moderate”.

Mark A Turnquest, pictured, of Mark A Turnquest Consulting, told Tribune Business that the $55m made available by the government was “a help but not enough” even though it includes a further $30m

for the Business Continuity Loan initiative.

That allocation represents a 150 percent increase on the initial $20m provided to help micro, small and medium-sized businesses ride out the

SEE PAGE 7

percent fiscal ratio no earlier than 2026-2027 - some two years beyond the first Fiscal Adjustment Plan,” Mr Turnquest said.

“During this time, we are keen to ensure that our recovery is supported by the necessary fiscal reforms in the important areas of taxation, pension and state-owned enterprises operations, and the removal of structural obstacles to economic growth that would spur both domestic and foreign direct investment opportunities for the objective of promoting job creation.”

Voicing optimism that the Bahamian economy will

join the world in enjoying a “V-shaped recovery”, with a rapid rebound following the present contraction as happened in previous pandemics, Mr Turnquest said the government was forecasting a 15.7 percent year-over-year revenue drop to $1.7bn for 2020-2021 compared to the revised post-Dorian figures.

Acknowledging that this represented a $328.1m reduction, Mr Turnquest said the government was allocating more than $250m to expand the business support, social assistance and

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JAMES SMITH

Concern over budget’s ‘dependency’ message

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A FORMER Chamber of Commerce chairman yesterday voiced concern that the government had sent “a message of dependency” through its 2020-2021 budget presentation.

Gowon Bowe told Tribune Business it “can be dangerous” to give the impression that the government alone will rescue The Bahamas from the COVID-19 doldrums given that it simply is not large enough to do all the heavy lifting by itself.

Arguing that the government should position itself as a “facilitator” rather than a “provider”, Mr Bowe said that since it only accounted for 25 percent of the economy recovery from the pandemic was impossible without the other “75 percent” - the private sector.

K Peter Turnquest, in unveiling the 2020-2021 budget, focused on the government’s massive borrowing and $1.3bn fiscal deficit as essential to preventing the economy’s collapse and social meltdown as a result of the 30 percent-plus unemployment rate.

Yet Mr Bowe argued: “The government only represents 25 percent of the economy. In order for there to be any meaningful recovery or meaningful rebound, it has to come from the 75 percent. If the government

doubles what it does, it has limited impact.

“The government has to really focus its attention on being a facilitator and stimulating the 75 percent as opposed to getting into a scenario of being a provider.

The [budget] communication gave the sense of being a provider for this downturn, and that can be dangerous as it sends a message of dependency.

“The government needs to send a message of being a facilitator, and that 75 percent is best able to recover.

It cannot pick up the slack for the other 75 percent. It cannot expand its contribution by four times’.”

Mr Bowe also warned the government against placing its faith on a swift rebound, or so-called “V-shaped recovery”, from COVID-19 that involves a sharp contraction in economic output followed by rapid growth.

Mr Turnquest yesterday said such recoveries had been one “redeeming” feature of previous pandemics, but Mr Bowe countered: “I would caution on speaking about a ‘V-shaped’ recovery, as most economists are saying ow at best there will be a U-shaped recovery with a valley at the bottom - certainly not a sharp contraction and sharp recovery.”

The former chamber chairman added that the 2020-2021 budget had also failed to meet his hopes that it would set out a medium

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PAGE 2, Thursday, May 28, 2020

THE TRIBUNE

Extended Dorian tax breaks hailed as ‘absolutely critical’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net ABACO’S Chamber of Commerce president yesterday hailed the extension of Dorian-related tax breaks through the 2020 year-end and beyond as “absolutely critical” to reviving reconstruction in COVID-19’s wake.

Ken Hutton, speaking after K Peter Turnquest confirmed that the Special Economic Recovery Zones will be extended beyond their end-June 2020 expiration, said rebuilding efforts had lost time and manpower due to the national and global lockdowns imposed to counter the pandemic.

He told Tribune Business that it was still uncertain whether the year-end deadline for all tax breaks to end, bar those on construction material, will provide “sufficient” time for homeowners and businesses to complete the rebuilding given that COVID-19 still has to fully play out in both The Bahamas and worldwide.

Mr Turnquest, in unveiling the 2020-2021 budget in the House of Assembly, confirmed that the government would continue to

KEN HUTTON ease the cost, and seek to increase the pace, of reconstruction on both Grand Bahama and Abaco by maintaining both islands as effective tax-free zones for a further six months beyond the 2019-2020 fiscal year’s end. And construction materials will retain their VAT/duty exempt status until end-June 2021 “To support the ongoing Hurricane Dorian recovery, we will extend the Special Economic Recovery Zone (Relief Order) 2019 to December 2020 in the first instance, which will include all concessions currently available to the qualifying islands,” Mr Turnquest said.

“For the period January 1, 2021 to June 30, 2021, the concessions will be extended to cover building materials only. Let me repeat: Abaco and Grand

Bahama will continue to enjoy the current VAT and duty exemptions through the end of the year.”

Describing the government’s move as “incredibly helpful”, Mr Hutton said: “It is a big deal. It’s a great relief to us here in Abaco.

It’s a great decision. Obviously, it was a difficult one in the current circumstance, but it definitely was the right one.

“Abaco is still in need of those concessions to get ourselves back up and running. It’s critical, absolutely critical to Abaco, primarily because with COVID-19 we’ve lost all that time since mid-March. It is the critical component. Is the December timeline going to be sufficient? I don’t know.

It depends on the global situation.

“There’s so many factors that are out of our control.

We need to focus on what we’re doing right now, and hope the COVID-19 situation resolves itself so we can get back to more businesses starting and get those nongovernmental organisations back to complete the projects they were working on, which are also critical to our recovery.”

The Economic Recovery Zones, implemented in late 2019 in Dorian’s

aftermath, provide businesses and homeowners in the storm-ravaged areas with a variety of tax breaks and concessions. VAT, import duty and Excise Tax has been eliminated on construction materials and all other physical goods sold and brought into the zones, while discounts have also been provided on real property tax and other real estate-related taxes provided certain conditions are met.

The government also removed VAT from construction services, but Mr Hutton said rebuilding had slowed amid the lockdowns, curfews and business restrictions imposed Bahamas-wide. “The COVID-19 situation has certainly not helped,” he added. “A lot of people, non-governmental organisations (NGOs) and outside people, had to leave.

“It’s certainly not progressed as fast as everyone thought, but we’re progressing as fast as we can. A lot of it will depend on how long this lockdown lasts globally.”

Mr Hutton said the lockdowns and border closures, both in The Bahamas and elsewhere, had prevented second home and vacation rental owners who were

“the engine” of the island’s pre-Dorian economy from returning to assess damages and determine whether they will reinvest in rebuilding those properties.

“We have to get past these lockdowns not only locally but internationally to have second home owners come back so they can make a decision and start rebuilding their investment,” the Abaco Chamber chief added. “The second homes, the rental homes were the driving force in this economy.

“A lot of those properties are waiting to be fixed or waiting for the investor to get them fixed and come back on the market. Once we get past this COVID-19 situation, Abaco is on its way to a much more robust recovery than there has been since March.”

Mr Hutton praised the NGO’s for “doing amazing stuff” in putting roofs back on the homes of the 80 percent of Abaco’s population that lacked sufficient catastrophic insurance.

He added that many residents were dependent on “donated materials and labour”, with the NGO’s also helping to compensate for the island’s manpower shortages.

“Abaco has about

one-third of the population it had pre-Dorian,” he told Tribune Business. “We’re struggling for labour.

There’s a lot to be done, but not so many people here.

Those [NGO] workers were very useful to support the labour force, and allow people who otherwise could not afford to do so to repair their homes. We need them back.”

Acknowledging that Abaco was also suffering from a lack of suitable accommodation for construction workers, Mr Hutton added: “Commerce has continued even though not a lot of businesses are open. There’s no restaurants, no hotels and no bars, but whatever is working is open.

“Every day gets a little bit better. The debris collection is getting a bit better, and every day central Abaco gets a bit closer to the restoration of power and water.

We’re not there yet, but there’s encouraging signs.”

He said Abaconians were worried about the lack of storm shelters with the start of the 2020 hurricane season just weeks away, but said it appeared as if Central Abaco Primary School would be ready for both this and whenever school returns.

GOVT HEALTH REFORMS TARGET $62M SAVINGS

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net THE government yesterday said it was targeting $62m in savings over a fiveyear period by permitting the National Health Insurance (NHI) scheme to lead the primary healthcare system’s transformation.

K Peter Turnquest, deputy prime minister, in unveiling the 2020-2021 budget said the government is seeking to prevent a $44.4m annual increase in the public healthcare system’s primary care costs by reforming how this is delivered via NHI. With these costs, and the burden they impose on taxpayers, threatening to rise from the present $83.3m to $127.7m per year by 2025, Mr Turnquest said primary care’s “integration and streamlining” with NHI was critical to both improving patient care quality and generating greater

DR ROBIN ROBERTS efficiency savings.

Dr Robin Roberts, the National Health Insurance Authority’s (NHIA) chairman, yesterday told Tribune Business the plan is for all primary care patients to be registered with NHI. “NHI has been very reformative in our healthcare system, and we continue to be very progressive in this. We are extremely pleased that the government has agreed to the proposal we have put forward with regard

Retail optimism on Back to School VAT ‘holiday’

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net BAHAMIAN retailers yesterday voiced optimism that the government’s declaration of a two-week back-to-school VAT “holiday” will boost sales and spending by hard-pressed Bahamian consumers.

John Cathopoulis, general manager of John’s

Shoes Store, told Tribune Business it was critical for merchants to offer pricing that is competitive with their US counterparts if the local economy is to truly benefit from the initiative unveiled as part of yesterday’s 2020-2021 budget presentation.

“I guess any relief they can provide a citizen is good, right?” Mr Cathopoulis said. “I can’t imagine

to primary healthcare,” he said.

Acknowledging that NHI’s catastrophic care proposal is not moving forward because of concerns over potential costs, Dr Roberts added: “The government has seen fit that this year we will proceed with us advancing our primary care package, and that will be very transformative.

“For one, we are looking toward the full benefits of primary care that everyone in this country will have a primary care physician such that we are looking at the benefits of detecting diseases early so that we can prevent it from being more progressive and more costly.”

Dr Roberts continued: “We are also looking at very stringent prevention methods, and advancing health promotion and wellbeing so, in the long run, we are looking at people living longer and healthier lives. In addition, we have

just advanced our electronic health records, which in addition to just the primary care services we will be able to now monitor and manage and be accountable for the care doctors deliver.

“Thirdly, we have made a request to the government that the public clinic systems, whereby in our public primary care clinics, those physicians and the management of those clinics come under the auspices of the NHI Secretariat.”

Mr Turnquest, unveiling the plan yesterday, said: “The government is increasing its allocation to National Health Insurance (or NHI) by $18m.

When the Prime Minister discusses his health portfolio during the upcoming budget debate he will speak in detail of the successes that NHI has had to-date, and how its expansion will both improve the delivery of healthcare and rationalise the operations and efficiencies in the health

care sector.

“Primary care delivery is estimated to cost the government $83.3m each year.

Without significant change to the delivery model, this would escalate to $127.7m by 2025 - an increase of $44.4m. The integration and streamlining of these separate healthcare delivery systems are essential to ensure better quality care of patients.

“Therefore, the government is proposing for the National Health Insurance Authority (NHIA) to lead a series of reforms, which would effectively and efficiently address these ongoing challenges. This refocused NHI initiative will require no additional taxation or employer mandate,” he continued.

“Most importantly, it will ensure that every Bahamian and resident has consistent access to a family doctor with minimal co-pay requirements or deductibles. As the changes

crystalise, this new streamlined approach is estimated to save the Government of The Bahamas approximately $62m over the next five years. “ The government is providing $235.455m in subsidies to the Public Hospitals Authority (PHA) this fiscal year, with a modest reduction to $223.456m projected for the 2020-2021 fiscal year. “The enhanced NHI would help us to move to a more efficient and accountable approach and, more importantly, expand primary health care coverage to every Bahamian.

“Given that allocations to the Public Health Authority represents our largest subvention to state-owned enterprises (SOEs), the government cannot give effect to reform in the SOE sector without determining how it will make delivery of basic health care more efficient and effective.”

it being a bad thing. I guess it is positive, so I guess they don’t need it as much as the people do, so they decided to leave it with the people.

That is nice.

“I think that will play a lot in the minds of people. If you buy enough stuff away then it doesn’t matter. You are still going to want to get that from there to make it easier on yourself, but for the most part if someone is looking to buy something they can get here I think it would help.

“But, to be honest with you, it still has to be cheaper

here at the end of the day.

Like if paying VAT landed is cheaper, or bringing it in through a courier is cheaper than what you can find in town, then there is nothing the government can do there. That is now up to the retailers to offer a competitive price relative to America.”

Other retailers, though, questioned whether the VAT “holiday” will offer zero-rated treatment and enable them to reclaim a 12 percent levy already paid on imported back-to-school inventory.

James Wallace, owner and operator of Janaees Uniform Centre, said: “Sounds promising to me.

At least you can get the price of the items down to the persons, but the question is how does that kick to me who has paid VAT on this stuff I have imported.

I have inventory I already have VAT on, so what does that mean? That has an implication to me: Are you zero-rating this?

“For me it sounds interesting in terms of savings for persons who are unemployed, because Janaees is looking to do something for back-to-school where people who may have been unemployed and laid off, we would have given them a special discount. But, with respect to the VAT holiday, that is good for the customer side, but how does that tie into me the business owner who has already paid VAT on his inventory?”

K Peter Turnquest, deputy prime minister, unveiling the initiative in the House of Assembly, said it was designed to provide both much-needed relief for Bahamian parents - especially those who have lost jobs or seen incomes cut as a result of COVID-19 - and boost retailers by encouraging persons to shop at home. The plan mirrors the nature and timing of the sales tax waivers Florida merchants are allowed to offer during back-to-school.

“We are pleased to announce that, for the first

time, the government will provide for a “back-toschool” VAT holiday on school supplies, clothing and select food items for the two-weeks leading to the reopening of schools, thereby providing millions of dollars in savings in aggregate for parents across the country as they prepare students to return to school,” Mr Turnquest said.

“I would note that the tax exemption will only apply to items that are bought inside the country, and not those that are imported directly into the country. Just as we want to support Bahamian parents in this costly annual undertaking, we also want to support local businesses.

So we want to encourage you to shop at home.”

Demond Thompson, general manager of Target Bahamas Uniforms, said: “I’m cool with that. But that is more of a concern for the people that are spending the money. It would be a benefit. From a business point of view it is going to cause people to shop locally, so that is a good thing.

“Businesses don’t pay VAT, so that is why I said this is beneficial for the end user, the children or the parents. It would be beneficial to me because they are going to save because they won’t be paying duty or VAT. The thing is with the clothing business you don’t pay duty, so if you don’t pay duty and VAT then that would be a good thing.”

THE TRIBUNE

Thursday, May 28, 2020, PAGE 3

Be ‘cold’ over $100m SOE subsidy slashes

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE government was yesterday urged to make “cold” decisions on whether to retain loss-making stateowned enterprises (SOEs) after it unveiled plans to slash their annual subsidies by $100m within four years.

Gowon Bowe, a former Chamber of Commerce chairman, told Tribune Business it needed to determine whether to “cut its losses” on SOEs that currently cost the Bahamian taxpayer more than $400m annually to prop them up.

Describing the burden they impose as “double whammy”, given both the subsidy burden and the continuing liabilities they pose as a result of the government having to guarantee their debt, Mr Bowe said SOEs had likely come to believe “there are no consequences if they blow their projections” as they can always return to the Public Treasury for more.

He spoke out after K Peter Turnquest, deputy prime minister, reaffirmed that the level of subsidies provided to SOEs by the Public Treasury was “simply unsustainable” - especially given the growing fiscal pressures imposed on the government by a combination of Hurricane Dorian and COVID-19.

Unveiling the 2020-2021 Budget, Mr Turnquest said the government had no choice but to quicken the pace of SOE reform given that the sector’s subsidies were equivalent to 16 percent - almost one-sixth - of its fixed-cost recurrent spending in the current fiscal year.

“Over the past year, we have made some strides in preparing the groundwork for the reform of SOEs,” Mr Turnquest said. “However, the need to accelerate this reform has

become abundantly clear with the added pressure of COVID-19 relief on public funds.

“For fiscal year 2019/2020, SOE subventions represented nearly 16 percent of recurrent expenditure. Notwithstanding additional outlays due to the impact of Hurricane Dorian, this level is simply unsustainable. Thus we have asked all SOEs to implement a mix of cost savings and revenue enhancement measures this Budget year.

“As a result, we are budgeting to receive some ten percent, or roughly $21m, in savings from a decrease in subventions to these entities. Over the medium term, it is the intent of the government to further rationalise these entities,” the deputy prime minister continued.

“The main objective is to push SOEs to become self-sufficient, thereby alleviating the need for the central government to subsidise their operations on an annual basis. To this end, we have targeted a $100m annual reduction in subventions over the next four years, as these entities move to optimise efficiency and cost recovery strategies.”

Mr Turnquest warned this might be painful for some consumers of SOE services, adding: “These cost recovery strategies may include the introduction of user fees in some cases, or an increase in existing fees for other SOEs as a way to enhance revenue. Similarly, some SOEs may opt to adopt cost reductions such as merging, reducing operating costs or revamping services with a view to eliminating non-efficient services.”

The government is aiming for a modest 5.7 percent, or near-$25m reduction, in SOE subsidies during the 2020-2021 budget year. The total figure is projected to

fall from $432.734m this fiscal year to $407.96m during the 12 months to end-June 2021, with the Public Hospitals Authority (PHA) again accounting for more than 50 percent of the latter sum at $223.456m.

Other major consumers of taxpayer funding continue to be the National Health Insurance (NHI) Authority, whose budget is being increased by $18m to $38m; the University of The Bahamas, whose allocation is unchanged at $30.745m; Bahamasair, which has seen its subsidy cut from $22.393m to $19m; and the Water & Sewerage Corporation, whose capital works allocation has been slashed from $25m to $20.3m.

Elsewhere, the Bahamas Civil Aviation Authority’s subvention has been cut from $19.131m to $15.305m, while the Public Parks and Beaches Authority has seen its subsidy drop from $25.9m to $15.2m. The Broadcasting Corporation of The Bahamas; Bahamas Agricultural and Industrial Corporation (BAIC); and Bahamas Agricultural and Marine Science Institute (BAMSI) have all seen their allocations slashed as well.

Budget figures provided yesterday indicate that the government is looking to steadily cut total SOE subsidies over the forthcoming budget years, dropping them to $382.115m in 20212022 and $340.587m the following fiscal year.

Mr Bowe yesterday suggested that the government may have to explore turning some SOEs over to the private sector, either through privatisation or management/operator contracts. He added that, in some cases, a small public subsidy may still have to be provided to ensure Bahamians have continuing access to essential products and services, with the private owner/operator contractually bound to fulfill critical obligations.

“This is one that may sound like an uncaring statement to make, but the government needs to decide whether or not to still be in those businesses

or cut its losses,” the former chamber chairman told Tribune Business.

“You need to take a very cold position: Do you need to be in those businesses? If the answer is only because you wanted to make sure a small population was able to access it, you may need to look at a subsidy where it is owned by a private entity.

“Right now they are a double whammy, because

the government is providing subsidies and, if they are not efficient, they are still an obligation of the government.... The SOEs see themselves primarily as part of the central government, and there’s no consequences if they blow their subvention.

They simply go and ask for more.”

Mr Bowe acknowledged that the SOE issue would likely provoke an

economic philosophy debate, especially in the wake of COVID-19. He acknowledged that some will make the argument that continued public ownership of entities such as Bahamas Power & Light (BPL) and Water & Sewerage Corporation had enabled them to provide the sort of relief to newly laid-off customers that privately-owned utilities could not have offered.

Vacancy Announcement

The American Embassy in Nassau is accepting applications for the following position:

Budget Analyst/Administrative Assistant Duties: Incumbent will serve as administrative assistant to the Senior Defense Official/ Defense Attaché (SDO/DATT), responsible for managing the office calendar of engagements, drafting and filing official correspondence, arranging official travel for ODC members, and any other administrative duties as required. This position requires the incumbent to establish and maintain important contacts with various Bahamian and DoD officials in order to plan, coordinate, and execute DoD visits, ceremonies, and events in The Bahamas.

These include visits by members at all levels of the U.S. Government, U.S. Navy ship visits, and DoD aircraft visits. Coordination may also be required for Bahamian officials visiting the States. The incumbent will be responsible for the planning, preparation, programming, execution, and monitoring of ODC-Bahamas budgets and fiscal expenditures. Incumbent will lead ODC Overseas Humanitarian Disaster and Civic Assistance (OHDACA) program.

Incumbent will be trained in the duties of the Training Manager in order to assist in his/her absence or as directed by the SDO/DATT. Interested candidates are required to possess the following skills and qualifications: •

Education: Completion of High School required.

•

Experience: At least 3 years of experience in performing administrative management, financial management and/or budget/ accounting duties.

•

Language: English level IV (Fluent).

The complete Vacancy Announcement and Application forms are available online on the Electronic Recruitment Application (ERA) located on the following website: https://bs.usembassy.gov/embassy/jobs Applications will not be accepted at the Security Gate of the Embassy, by Mail, E-mail or other means of delivery.

Deadline: Friday, May 29, 2020.

Due to the high volume of applications, unsuccessful candidates will not be contacted.

PAGE 4, Thursday, May 28, 2020

THE TRIBUNE

Fishermen: We wanted vehicle duty reductions

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net COMMERCIAL fishermen yesterday said they would have welcomed a reduction in import tariffs on vehicles used to transport their catch rather than tax breaks on equipment already duty-free.

Adrian LaRoda, the Bahamas Commercial Fishers Alliance’s president, reacting to the government’s decision to decrease duties on fishing materials from 45 percent to 20 percent, said: “It’s very good.

It’s welcomed. I must say that in this time it is unexpected, but any move from the government is a good move because for years we had asked for the duties for commercial fishing to be eliminated. A reduction is welcomed, but we would have preferred to see an elimination like we requested three years ago.”

K Peter Turnquest, deputy prime minister, in unveiling the 2020-2021 budget, said: “For the agriculture and fisheries industry, we will reduce the duty on fishing materials from 45 percent to 20 percent, effective July 1,

UNIQUE VACATIONS LIMITED VACANCY UNIQUE VACATIONS LIMITED SENIOR AIX/LINUXVACANCY SYSTEMS ADMINISTRATOR SENIOR AIX/LINUX SYSTEMS ADMINISTRATOR

Job Summary: The Senior Linux/ AIX Systems Administrator installs and manages the AIX operating environment

AIXonSystems Administrator installs and utilizing manages theversions AIX operating environment both physical and virtual both physical and virtual server platforms, current of AIX technologies.

Designson and implements back-up, recovery and conversion strategies, as well as performance and security tuning utilizing current versions of AIX technologies. Designs and implements back-up, recovery and conversion best practices. and security tuning best practices. as performance Areas of Responsibility

onsibility

Extensive System Administration experience in a heterogeneous UNIX environment like AIX/Linux. Work on AIX designs, SOW, development, and supported application solutions to meet System Administration experience in a heterogeneous UNIX environment like AIX/Linux. Work on AIX designs, requirements.

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• Upgrade firmware of managed machines, devices, and HMC.

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Lead datacenter migration in a large midrange environment.

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groups. Experienced in AIX Capacity and Performance Planning.

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Make recommendations for upgrades and new server hardware, peripherals, operating systems.

e with• vendors, development,tobusiness partners, support teams.

Provide documentation users and Service Deskand staffescalation before the implementation of newly installed products.

velop, and install scripts to alert and monitor for system errors, exceptions, system performance history, and • Assist with establishing policies and procedures necessary for optimal system operations. These stems maintenance. should include the accuracy and integrity of system backups, automation of manual and routine operations, ensuring conformance with Information Systems, enterprise, security, and industry standards.

•

Accurately document instances of hardware failure, repair, installation, and removal.

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Provide proactive communication with vendors to ensure operating system levels and systemlevel patches or upgrades are applied to minimize performance and availability issues.

•

Provide effective capacity planning via standardized processes to collect and record server performance history. Communicate with application support and vendors to understand changes in application workloads and leverage historical performance data.

•

Any other duties/projects as deemed necessary by management

Experience/Skills/Qualifications: • Education: BS in Computer Science or Management Information Systems • Experience: 7+ years of experience managing AIX/ Linux Systems.

3+ years of experience in server virtualization (Xen) • Excellent team, interpersonal and communication skills.

• Must be able to coach junior team members • Clear, analytical thinking, and problem-solving ability.

Only short-listed candidates will be contacted. Interested persons should submit their applications by May 28th, 2020 with curriculum vitae to hrreport6@gmail.com

the trailer. Just like for farmers; they have bonded vehicles, we had asked for the same thing for commercial fishermen who need a truck for the use of his business. They would also be able to get that duty free, but we haven’t been able to get that yet.

We are still fighting for it. But any reduction is good.”

Keith Carroll, the former Bahamas Commercial Fishers Alliance (BCFA) vice-chairman, said of the duty reductions: “It still wouldn’t affect me because everything I bring in is duty-free anyway.

Maybe it would help those who do pleasure fishing, but for those who do commercial fishing like me we only pay 12 percent VAT. The majority of the stuff we bring in is duty-free.

“You can’t operate on a boat alone; you need a truck to have a transfer of your catch. A truck can only last you about four or five years anyway. You may get more out of the engine, but all of the salt water will rust the back bed of the truck off. If they were giving fishermen duty-free on vehicles it would have helped.”

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is looking for a Senior AIX/LINUX System Administrator who will bewho responsible for defining Unique Vacations is looking for a Senior AIX/LINUX System Administrator will be responsible for project requirements, asks, and project provide industry knowledge in performing basic industry and advanced associated with administration defining requirements, estimate project tasks, and provide knowledgetasks in performing basic and associated with responsibilities.

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y:

2020. Some of these items include fishing rods, reels, lines, tackles and other materials.”

Mr LaRoda, though, said it was unclear whether the tax relief would boost the fisheries industry. “Most of the items required for commercial fishing are already duty free to commercial fishers who have the dutyfree card,” he added.

“For example, if you want to bring in a boat for commercial fishing that is duty free; engine parts are duty free. If you are buying traps, etc, those are duty free. If you are bringing in materials for your condos then those are duty free, once you are in possession of a duty free card.

“So this concession is really going to be supplementary because some operators can’t afford to purchase their supplies in bulk or have them imported, so this would help with local sales. It would definitely boost the sales for the local marine stores, but it is welcomed.”

Mr LaRoda added: “What we had originally asked for is if I wanted to buy a small craft for commercial fishing, I would have gotten that duty free, but I would have had to pay duty on

THE TRIBUNE

Economy’s shrink to exceed $1.3bn deficit

FROM PAGE ONE

unemployment benefits schemes provided to-date.

He told the House of Assembly that some $120m in tax credits and deferrals will be provided to large and medium-sized companies to help support their nonexecutive payroll for three months, with another $30m dedicated to the Business Continuity Loan initiative (see other article on Page 1B).

A further $48m in unemployment assistance is being provided, along with $17m on social welfare and related food assistance. Mr Turnquest said some $85m was being provided in 20202021 to strengthen the social safety net, with the Department of Social Services budget set to rise from $49m to $60m.

“On the expenditure front, outlays are anticipated to feature continued spend for hurricane rebuilding efforts, coupled with new outlays for measures related specifically to COVID-19.

As noted earlier, these measures total nearly $136m,” Mr Turnquest said.

“Thus we have reduced a number of discretionary spending line items. This has meant that some 42 agencies and departments are receiving reduced budget allocations for the upcoming fiscal year.” Total recurrent (fixed cost) spending for 2020-2021 is forecast to be $2.6bn, some $35.3m or 1.4 percent higher than the

revised figures for this fiscal year.

Capital spending, meanwhile, which included public works and infrastructure projects, is pegged at $515.8m, a $190m or 58.4 percent rise over the 20192020 Budget.

“The fiscal deficit is budgeted at some $1.3bn, or 11.6 percent of GDP, for the upcoming fiscal year,” the deputy prime minister added. “This is the largest deficit to be incurred by any government in the history of The Bahamas. This is indeed a testament to the monstrous impact Hurricane Dorian and COVID-19 has levelled back-to-back on our small, open economy.

“While we have sought to trim where we could, our driving ethos has been to do all we can to support Bahamians and to maintain as much employment and economic activity as we can over the near term. During this time, the government could have chosen to continue its fiscal restraint measures by cutting back spending and starving a deprived economy.

“However, we did not choose this route as we appreciate that during a downturn government spending is crucial to reviving a downtrodden economy. Again, these are unprecedented times that have called for unprecedented measures, and we are intent on ensuring the efficacy of our outlays in line with our overarching

fiscal responsibility objectives.”

Looking beyond the fiscal year-end, Mr Turnquest added: “Over the medium-term horizon, it is anticipated that aggregate revenue will gradually rebound to its pre-hurricane and pre-COVID-19 level over the next two fiscal years.

“This will place revenue at some 20 percent of GDP by fiscal year 2022-2023 before increasing to roughly 21 percent of GDP over the longer term horizon. To do this, the Government will have to keep up its track record of economic growth and its success in improving revenue collection.

“Recurrent expenditure, at some 22.4 percent of GDP in the upcoming fiscal year, is expected to remain relatively stable over the next two fiscal years, before tapering off slightly to 21 percent in fiscal year 20222023. Capital outlays are anticipated to decline from 4.5 percent in the upcoming fiscal year to steady around 2 percent over the medium term, which is in line with the government’s broader fiscal policy objective to make better use of publicprivate partnerships (PPPs) and secure private financing for public projects.”

Mr Turnquest said the fiscal deficit is projected to decline to 6.7 percent of GDP in 2021-2022, with a further reduction to 2.9 percent in fiscal year 2022-2023.

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Thursday, May 28, 2020, PAGE 5

PAGE 6, Thursday, May 28, 2020

$10bn debt blow-out ‘our worst nightmare’ FROM PAGE ONE

place” to ultimately recover from the pandemic.

However, the budget projections accompanying Mr Turnquest’s presentation confirm that the scars and impact of COVD-19 will continue to impact both the economy and the government’s fiscal position for many years to come.

For the government is currently forecast to run an $813.4m deficit, measuring by how much its spending exceeds its revenue, in the subsequent 2021-2022 budget

year. If that comes true, it will be the second highest deficit in Bahamian history behind this year’s $1.327bn, and even higher than the $773.7m worth of “red ink” that will be incurred in the present 2019-2020 period.

This “unprecedented” deficit and borrowing, combined with those two years, means The Bahamas will have added more than $2.9bn to its national debt within a threeyear span. And, according to the budget projections, will take the government’s direct debt beyond the $10bn mark

by June 2022.

Predicted to hit hit $9.5bn, a sum equivalent to 82.6 percent of Bahamian gross domestic product (GDP) this fiscal year, the Budget forecasts project this will steadily rise to $10.32bn in 2021-2022 and $10.614bn in 2022-2023.

The debt-to-GDP ratio is forecast to peak at 85.6 percent in 2021-2022 before dropping to 83.1 percent the following fiscal year as economic growth returns to a higher level than 2019-2020.

However, the debt projections in the budget forecast do not contain the guarantees the government has given on behalf of the

-

THE TRIBUNE public corporations (usually around six to seven percent of GDP) or the multi-billion dollar civil service unfunded pension liabilities. As a result, the total national debt is likely much higher.

Rick Lowe, an executive with the Nassau Institute think-tank, told Tribune Business of the government’s financial position: “That’s unreal. Unreal. Our worst nightmare has come true.” While the government announced no new or increased taxes in the 20202021 budget, he argued that such moves were inevitable once the economy recovered given that the massive debt increase had to be repaid.

“It’s got to be paid sooner or later,” Mr Lowe added.

“The taxpayers, the citizens are going to have to pay for it.

They’d better figure out how to unleash this economy. This is going to be a slow grind because they’ve stopped the economy [to combat COVID-19’s spread]. You can’t simply stop an economy and expect it to reboot in a heartbeat. It ain’t like turning a dial.

“It’s pretty grim, and it’s going to be a very slow grind getting out of this. They’ve got to free up the economy, and they have to do some trimming of the civil service.

They’ve got to open up the economy, let foreigners in and do what they’ve got to do to get people investing.

“They’ve got to reduce some of the red tape. They’ve got to encourage investment, and realise how important the business community is.

All successive governments have done is look at the private sector as something to drain taxes from. It is a vehicle for taxation, yes, but if they keep tightening the regulations people are going to look for alternatives,” Mr Lowe added.

“With the reduced profit margins and increased taxation, the incentive isn’t there to do business. They’ve got to tweak it to encourage businesses to grow and new ones to pop up to sustain the recovery, but you can’t keep milking the same cow.”

Mr Lowe added that the combination of two catastrophic events, Dorian and the COVID-19 economic shutdown, had “put us over

the edge and precipice we’ve been approaching for decades”.

Mr Turnquest’s budget presentation, which concentrated on the government’s immediate response to the continued pandemic and hurricane fall-out, made no mention of how The Bahamas will repay the increased debt it now plans to take on.

The only two options available are via economic growth or new and increased taxes that will likely be imposed at some point in the future.

James Smith, former minister of state for finance, yesterday voiced similar sentiments to Mr Lowe by telling this newspaper: “The question you asked is one no attempt was made to answer: How are we going to pay for this borrowing? How are we going to service this debt?”

He suggested it was unwise to pledge no new and increased taxes, recalling the self-inflicted damage the late US president, George HW Bush, did to his 1992 re-election campaign when he told voters: “Read my lips: No new taxes.”

Cautioning the government against boxing itself in, Mr Smith nevertheless acknowledged that the 30 percent-plus unemployment rate - coupled with the continued tourism shutdown - meant the government was experiencing a “shrinking tax base” and fewer persons and activities to tax even if it wanted to go this route.

Mr Turnquest, meanwhile, said the $900m fall-off to the $1.76bn in revenue projected for the 2020-2021 fiscal year represented a decline equivalent to 35 percent of the government’s annual average income. VAT revenues, in particular, are forecast to fall by 31.6 percent year-overyear to $666.318m on account of reduced economic and consumption activities.

“When I presented the budget communication last year, we estimated the government would generate $2.6bn in revenue,” Mr Turnquest said. “We are forecasting revenue of only $1.7bn next year because of the dual external shocks of Dorian and COVID-19. That amounts to revenue that is $900m below where we were this time last year, when the

economy was experiencing positive, and steady, economic growth.

“What does this all mean?

Mr Speaker, the impact of our revenue shortage is one of the reasons for the large deficit we are forecasting this year. The $900m in lost revenue potential is equivalent to some 35 percent of total government annual spending on average. The fall-off in planned revenue is an unparalleled blow from these unprecedented economic shocks.”

Mr Turnquest explained that the government rejected the imposition of new and/ or increased taxes to cover its $1.3bn deficit due to fears this would further undermine the strength and pace of any economic recovery from COVID-19. He also acknowledged that the tax base had shrunk with tourism’s contribution likely “minimal to marginal” prior to November-December 2020 (Thanksgiving and Christmas) despite the planned July 1 re-opening.

“We cannot be tepid in our response. There is a substantial cost to implementing the Resilient Bahamas Plan,” Mr Turnquest said, referring to the Budget’s title. “But the prospect of doing nothing - or of doing too little - would lead us to a much less desirable place.

“The biggest set of twin setbacks in the last 100 years calls for the biggest fiscal response in 100 years. The Bahamian people should rightly want to know why the government finds itself projecting such a high deficit of $1.3bn.

“The answer is relatively straightforward. It is because the alternative options are much worse. It is a lot easier to keep a person afloat than fighting to drag them back to the surface. Our economy is like that. We are investing in our restoration plan to avoid a dramatic scale back that would submerge the economy and leave Bahamians out at sea, without a life raft.

“We are borrowing to keep Bahamian families, communities and businesses above water and to keep the economy afloat, as we see our way through this extraordinary time.”

THE TRIBUNE

Thursday, May 28, 2020, PAGE 7

Budget’s $55m for small firms ‘too moderate’ FROM PAGE ONE COVID-19 pandemic with a combination of loans and grants. K Peter Turnquest, deputy prime minister, included the new financing - which will take the Business Continuity Loan’s coffers to a total $50m among the 11-fold funding increase he said the government is directing to the sector.

“We set an objective three years ago to build an entrepreneurial ecosystem, and our investments to date have made the environment for entrepreneurship stronger than ever before.

We have increased the capital budget allocation for small business growth and development from $5m last year to $55m in the new Budget,” K Peter Turnquest told the House of Assembly.

“We are pleased to see that the entrepreneurial spirit of Bahamians has been awoken, because now people have confidence in the programmes available to support their ambitions.”

Hailing the Small Business Development Centre’s (SBDC) work, he added that it will seek “to leverage the government’s investment” by attracting other forms of financing to the MSME sector such as private equity, angel investing and crowdfunding.

The deputy prime minister also praised Bahamian small businesses for

adapting to the COVID19 pandemic through the launch of new products and services, such as home deliveries, which rental car companies are now providing vehicles for.

“With shifts in manufacturing, the adoption of digital platforms and the growth of delivery services, Bahamians entrepreneurs are innovating to meet the new demands for products and services during this lockdown,” K Peter Turnquest added.

However, Mark A Turnquest argued that The Bahamas needed to find at least another $45m from private financiers - both in The Bahamas and internationally - if it is to make a meaningful impact in growing the small business sector and cushion it from COVID-19’s economic fall-out.

“It’s got to be $100m,” he told Tribune Business. “The $55m means they need to get another $45m from the private sector or international investors. That’s just moderate; it’s moderate at best. It’s not enough. It’s a help but it’s not enough.

“I understand they’re

broke but it’s not enough.

The government have to be creative and innovative to attract crowd funding, foreign investors and the private sector to bring it up to $100m. That’s the only way it will be fully effective.”

Tribune Business sources, speaking on condition of anonymity, said the wider private sector had also been hoping the government would allocate at least $100m in the 20202021 Budget to supporting MSMEs given its professed recognition of the sector as a key driver of job creation and economic growth.

The issue was also seized upon by Chester Cooper, the opposition’s deputy leader and finance spokesman, who argued that the $55m allocation was “not going to cut it” given that the Inter-American Development Bank (IDB) has identified a $150m to $200m “gap” between available funding resources and the needs of small Bahamian businesses.’

Mark A Turnquest, meanwhile, told this newspaper that businesses that

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are totally reliant on walkin customers, and unable to offer delivery or curb-side pick-up services, will likely struggle to survive the prime minister’s plan to extend the COVID-19 lockdown until end-June 2020.

Companies without the necessary management systems and controls will also find themselves in trouble, he argued, as his small clients are only enjoying 60 percent of their pre-pandemic sales in offering delivery and curb-side services.

“My small business clients were all over it because things got so tough,” Mark A Turnquest said of the Business Continuity loan initiative. “They looked at the benefits of staying alive over the negatives. At least 30 percent of my clients

were successful.

“Twenty-one of my clients got the loan so far.

Twelve of them with annual sales under $100,000, and nine over $100,000. The ones under $100,000, they broke off running for that because they needed it. The other nine were reluctant at first but, after a while, they took it and all of them were successful.

“They have business licences and receipts to back-up their purchases, spending and operational costs. My other clients, when this next month of shut down hits them, will jump up at that as well.”

Mark A Turnquest added that he had turned to his e-commerce contacts to help his small business clients enter the online ordering/home delivery

real. “It’s difficult for businesses to keep their sales up by not opening, especially clothing and electronic stores,” he disclosed.

“A lot of them are doing curb side, but it involves more work than doing online sales. Right now, what we are doing, is I have assisted them with my e-commerce colleagues, website colleagues, to put a lot of them on online delivery.

“People order online and they deliver the product to them, together with curb side. All of them are operating at 60 percent capacity.

That extra 40 percent is traffic through the stores.

They’re not going out of business. I don’t have any clients going out of business, but they have to accept the reality of lower profits.”

PAGE 10, Thursday, May 28, 2020

THE TRIBUNE

Concern over budget’s ‘dependency’ message

MARKET REPORT www.bisxbahamas.com

(242) 323-2330

WEDNESDAY, 27 MAY 2020

(242) 323-2320

FROM PAGE ONE

ALL SHARE INDEX: CLOSE: 2,140.89 | CHG: 0.13 | %CHG: 0.01 | YTD: -90.71 | YTD%: -4.06 BISX LISTED & TRADED SECURITIES 52WK HI 4.45 22.65 7.00 6.75 2.60 2.00 5.47 12.77 6.17 4.50 10.30 3.64 5.10 10.88 8.15 16.99 9.40 4.25 15.21

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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

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Cable Bahamas Series 6 Cable Bahamas Series 8 Cable Bahamas Series 9 Cable Bahamas Series 10 Colina Holdings Class A Fidelity Bank Class A Focol Class B

CAB6 CAB8 CAB9 CAB10 CHLA FBBA FCLB

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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

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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

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VOLUME

400

4,000

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P/E 14.9 18.7 N/M 18.1 N/M N/M -6.8 15.6 13.6 21.9 42.9 29.4 10.9 14.8 11.2 17.8 9.6 19.7 24.1

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INTEREST Prime + 1.75%

MATURITY 19-Oct-2022

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%

20-Nov-2029 30-Jul-2018 16-Dec-2019 30-Jul-2020 15-Dec-2021 30-Jul-2022 15-Dec-2044 30-Jul-2045 26-Jun-2018 26-Jun-2020 26-Jun-2022 26-Jun-2045 15-Oct-2018 15-Oct-2020 15-Oct-2022

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MUTUAL FUNDS 52WK HI 2.31 4.40 2.10 198.39 168.29 1.67 1.85 1.76 1.24 8.34 10.26 7.00 12.15 12.58 10.81 10.00 8.98 11.79

52WK LOW 1.67 3.30 1.68 164.74 116.70 1.61 1.75 1.70 1.14 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 Leno Preferred Income Fund Leno Growth Fund Leno Diversified Fund Leno 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

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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 | COLONIAL 242-502-7525 | LENO 242-396-3225 | BENCHMARK 242-326-7333

31-Mar-2020 31-Mar-2020 31-Mar-2020

and long-term vision for the pathway to recovery.

“Basically, I will say that we have to demonstrate to persons what the period of pain is likely to be and what the trajectory of recovery is going to be, and the one year process doesn’t do that,” he argued.

Noting Mr Turnquest’s reference to saving the economy from drowning, he added: “I should say, having spoken to all professional trained life guards, that the best thing to do in trying to save an individual is to render them unconscious because they are fighting against uncertainty.

“Our stakeholders, bondholders right now are fighting against the floating devices out of fear and uncertainty.” This, Mr Bowe said, would have been addressed if the budget had set out a longer term plan and vision.

James Smith, former minister of state for finance, likened the government’s decision to go all-in in massive deficit spending and borrowing to a “Hail Mary pass” given the uncertainties over the timing and strength of any post-COVID-19 rebound.

“I think what’s happening here is the government is throwing a Hail Mary,” he told Tribune Business.

“What it means in effect is it’s a form of chance from game theory where you’re saying we’ve got to go for the long pass because we’re so far behind we’ll never win this game.

“Let me borrow all the money I can to carry me through this year and next year, and hope we have a recovery and economic boost because if not we won’t be able to borrow money at all.”

Other private sector sources, speaking to this

newspaper on condition of anonymity, said they were also left uninspired and underwhelmed by the 2020-2021 budget. Noting the absence of any focus on issues such as ease of doing business improvements and civil service pension reform, they suggested that the extra $9m allocated to the Ministry of Agriculture for food security initiatives was not sufficient to indicate the government was serious on the issue.

“I can assert today that this government will make food security and sustainability a key priority over the short to medium-term as a policy that will add value for years to come,” Mr Turnquest said. “To kick off the push for greater food security, the Ministry of Agriculture has been allocated between its recurrent and capital budget the sum of $9m to begin to seed new and innovative projects in partnership with Bahamian farmers and the broader private sector.

This will indeed secure the future of Bahamians, and the wealth of our nation.”

He added: “As a nation, The Bahamas imports over 90 percent of what it consumes. In 2018, our total imports valued some $3.5bn, the bulk of which comprised machinery and transport equipment, food and fuel. This equates to roughly 33 percent of our average real GDP over the last five years.

“The ongoing COVID19 pandemic has demonstrated the importance of pursuing food security to ensure that we could meet some of our domestic needs at least in the short-term and expanding over the long-term, and thereby reduce our dependence on imports.”

THE TRIBUNE

50% cash use fall ‘ambitious, not impossible’ FROM PAGE ONE “As chief financial officer at Fidelity, I was shocked at the amount of bills we were settling by cheque.

That was an eye opener for me. I said to my team that by June [2020] I don’t expect to be paying anyone by cheque. As a bank you have to set the example. If, as a financial institution, I am encouraging my clients and business customers to move electronically, I should be setting the example.

“I have laid down that if anyone is paying by cheque after June has to give me a very valid cause for doing so.... BPL has an online payment facility with us, but we were cutting

Thursday, May 28, 2020, PAGE 11 cheques to BPL.” Mr Turnquest yesterday unveiled the government’s goal to accelerate the transition to digital transactions during the 2020-2021 budget presentation, lamenting that efforts in this direction to-date had lacked co-ordination between the government, Central Bank and industry players.

“We recognise that although the government, the private sector and the banking sector have all been working toward greater use of digital transactions for payments, these efforts have often been siloed - running on separate tracks, and moving at different paces,” he told the House of Assembly.

“The lessons of Dorian - and presently of COVID-19 - have demonstrated that as a matter of national priority, the various stakeholders need to collaborate and move in unison to accelerate the adoption of digital payment systems. Yes, it is a matter of national efficiency

and national competitiveness but, as recent hurricanes and the current pandemic have shown us, it is also a matter of national security.”

Revealing that the targets had been set in conjunction with the Clearing Banks Association and Central Bank, Mr Turnquest added that they involved “a 50 percent reduction in the utilisation of cash within the next five years, fuelled by more transparent business and consumer friendly regulations around the use of debit and credit cards, and the full integration of the Sand Dollar [Central Bank digital currency]”.

As for cheques, Mr Turnquest said they were eyeing a “50 percent reduction in three years, and 80 percent reduction in five years, boosted by greater utilisation of the electronic clearing house to allow for direct payments”.

He added: “Setting these targets and establishing a task force to make this happen will ensure

that we can, in a measurable way, determine our success in removing the legal, bureaucratic and even cultural obstacles in the crucial shift to digital transactions.

“The aim of this initiative is not to eliminate the use of cash. Cash will continue to be a feature

of the payment system.

However, the further entrenchment and utilisation of digital means has the opportunity to expand financial inclusion, to open new business opportunities, to bring sophisticated financial services to even the most remote parts of the country and to

improve personal and business security.

“The work of the imminent Task Force will be to engage business communities and civil society to ensure appropriate attention to privacy, cyber security, as well as to ensure a proper understanding and buy-in of this initiative by the general public.”

THE TRIBUNE

Thursday, May 28, 2020, PAGE 15

THE WEATHER REPORT

5-Day Forecast

TODAY

ORLANDO

High: 91° F/33° C Low: 74° F/23° C

TAMPA

FRIDAY

SATURDAY

SUNDAY

MONDAY

Sun and some clouds

Partly cloudy with a shower late

Sunshine and patchy clouds

Partial sunshine

Clouds and sun

Partly sunny

High: 87°

Low: 76°

High: 86° Low: 76°

High: 85° Low: 74°

High: 85° Low: 74°

High: 85° Low: 74°

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

97° F

82° F

95°-81° F

95°-77° F

97°-81° F

97°-78° F

High: 88° F/31° C Low: 77° F/25° C

N

almanac

E

ABACO

S

N

High: 82° F/28° C Low: 78° F/26° C

7-14 knots

S

High: 87° F/31° C Low: 78° F/26° C

7-14 knots

FT. LAUDERDALE

FREEPORT

High: 87° F/31° C Low: 77° F/25° C

E S

E

W

WEST PALM BEACH

W

The higher the AccuWeather UV IndexTM number, the greater the need for eye and skin protection.

The exclusive AccuWeather RealFeel Temperature® is an index that combines the effects of temperature, wind, humidity, sunshine intensity, cloudiness, precipitation, pressure and elevation on the human body—everything that affects how warm or cold a person feels. Temperatures reflect the high and the low for the day.

W

N

uV inDex toDay

TONIGHT

High: 86° F/30° C Low: 75° F/24° C

MIAMI

High: 88° F/31° C Low: 77° F/25° C

4-8 knots

KEY WEST

High: 88° F/31° C Low: 81° F/27° C

Statistics are for Nassau through 2 p.m. yesterday Temperature High ................................................... 86° F/30° C Low .................................................... 79° F/26° C Normal high ....................................... 85° F/30° C Normal low ........................................ 72° F/22° C Last year’s high ................................. 85° F/29° C Last year’s low ................................... 73° F/23° C Precipitation As of 2 p.m. yesterday ................................. 0.00” Year to date ............................................... 18.96” Normal year to date ..................................... 8.22”

ELEUTHERA

NASSAU

High: 87° F/31° C Low: 76° F/24° C

Forecasts and graphics provided by AccuWeather, Inc. ©2020

High: 83° F/28° C Low: 79° F/26° C

N

High: 83° F/28° C Low: 78° F/26° C

N

S

E

W

7-14 knots

S

7-14 knots

ANDROS

Shown is today’s weather. Temperatures are today’s highs and tonight’s lows.

Ht.(ft.)

12:20 a.m.

12:50 p.m.

High

Ht.(ft.)

2.9 2.2

6:56 a.m.

6:52 p.m.

0.2 0.3

Friday

1:15 a.m.

1:51 p.m.

2.8 2.3

7:50 a.m.

7:56 p.m.

0.2 0.3

Saturday

2:13 a.m.

2:55 p.m.

2.8 2.5

8:46 a.m.

9:04 p.m.

0.1 0.3

Sunday

3:14 a.m.

3:57 p.m.

2.8 2.7

9:43 a.m. -0.1 10:12 p.m. 0.2

Monday

4:15 a.m.

4:58 p.m.

2.7 3.0

10:38 a.m. -0.2 11:17 p.m. 0.0

Tuesday

5:14 a.m.

5:54 p.m.

2.7 3.2

11:32 a.m. -0.5 ---------

Wednesday 6:11 a.m.

6:48 p.m.

2.7 3.4

12:18 a.m. -0.2 12:25 p.m. -0.6

sun anD moon Sunrise Sunset

6:21 a.m.

7:54 p.m.

Moonrise Moonset

11:36 a.m.

12:28 a.m.

First

Full

Last

New

May 29

Jun. 5

Jun. 13

Jun. 21

SAN SALVADOR

GREAT EXUMA

High: 83° F/28° C Low: 78° F/26° C

High: 84° F/29° C Low: 79° F/26° C

N

High: 85° F/29° C Low: 79° F/26° C

E

W S

LONG ISLAND

tracking map

High: 84° F/29° C Low: 79° F/26° C

H

Low

Today

CAT ISLAND

E

W

tiDes For nassau

7-14 knots

MAYAGUANA High: 85° F/29° C Low: 79° F/26° C

Shown is today’s weather. Temperatures are today’s highs and

CROOKED ISLAND / ACKLINS

tonight’s lows.

RAGGED ISLAND High: 83° F/28° C Low: 79° F/26° C

GREAT INAGUA High: 86° F/30° C Low: 78° F/26° C

N

N E

W

E

W

L

High: 84° F/29° C Low: 79° F/26° C

S

S

7-14 knots

8-16 knots

marine Forecast ABACO ANDROS CAT ISLAND CROOKED ISLAND ELEUTHERA FREEPORT GREAT EXUMA GREAT INAGUA LONG ISLAND MAYAGUANA NASSAU RAGGED ISLAND SAN SALVADOR

Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday:

WINDS E at 7-14 Knots ESE at 8-16 Knots E at 7-14 Knots E at 7-14 Knots ENE at 7-14 Knots E at 8-16 Knots NE at 8-16 Knots E at 8-16 Knots ENE at 7-14 Knots E at 8-16 Knots SE at 6-12 Knots ESE at 7-14 Knots NE at 7-14 Knots E at 8-16 Knots NE at 8-16 Knots ENE at 7-14 Knots ENE at 7-14 Knots E at 8-16 Knots ENE at 8-16 Knots ENE at 8-16 Knots E at 6-12 Knots E at 7-14 Knots NE at 7-14 Knots E at 7-14 Knots NE at 7-14 Knots E at 8-16 Knots

WAVES 2-4 Feet 3-6 Feet 1-2 Feet 1-2 Feet 2-4 Feet 3-6 Feet 2-4 Feet 3-6 Feet 2-4 Feet 4-7 Feet 1-3 Feet 1-3 Feet 1-2 Feet 1-3 Feet 2-4 Feet 3-6 Feet 1-3 Feet 2-4 Feet 3-5 Feet 4-8 Feet 1-3 Feet 1-3 Feet 2-4 Feet 2-4 Feet 1-3 Feet 2-4 Feet

To advertise ALL your LEGAL NOTICES, call The Tribune’s Sales Department

502-2394

VISIBILITY 6 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 6 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 7 Miles 10 Miles 10 Miles 6 Miles 10 Miles 10 Miles 10 Miles 7 Miles

WATER TEMPS. 80° F 80° F 84° F 85° F 79° F 79° F 82° F 82° F 79° F 79° F 81° F 83° F 83° F 83° F 82° F 82° F 82° F 82° F 83° F 83° F 81° F 82° F 82° F 82° F 79° F 79° F

TEACHERS NEEDED A private school is seeking to employ the following qualified teachers for the 2020/21 academic year.

•Lower Elementary School Teacher (Grades 1-3) •Upper Elementary School Teacher (Grades 4-6) •Part-time Physical Education Instructor (Must be able to teach swimming)

•Teaching Assistant (does not require a degree in Education) Applicants:

•Must possess a minimum of a Bachelor's degree in

Education and a Teaching Certificate from an accredited university or a Bachelor's degree in the relevant subject area with a Teaching Certificate

•Should have have at least two years teaching experience •Must present at least two professional references, a

character reference, copies of degrees and a recent photo if selected for an interview.

•Are expected to contribute to the school's extra-curricular program

Interested applicants should email their resume to teachingposition2020@gmail.com by Wednesday, June 10, 2020.

PAGE 16, Thursday, May 28, 2020

THE TRIBUNE

Creating magic in your images I

N PHOTOSHOP there are various ways and reasons for making a selection.

You may want to remove something from a background and replace it with something else. Some of the selection tools found in Adobe Photoshop are better suited for certain tasks than others, such as the Photoshop Magic Wand Tool.

What Is the Magic Wand Tool?

When first opening up the program (in any version of the software), the handy little magic wand tool can be accessed from the toolbar window that appears on the screen. It can be used to highlight a portion of your image for transformation, or even used to remove the background of a product photo and transfer it on to a different image.

How it works The Magic Wand is located near the top, and looks for pixels which are of the same colour and tone.

This means it is great for

The Art of Graphix

BY DEIDRE M BASTIAN

selecting large, solid blocks of colour, when working on images where the difference between colors and tone is not as obvious. The Magic Wand Tool works by selecting an area of solid colour within an image.

Once selection is made, the “magic” it creates offers multiple options for refining that selection.

How to Use the Magic Wand Tool 1. Open Photoshop and click on the “File” tab to browse for your image on the computer. Once you select the photo of your choosing, click OK. 2. Set the magic wand’s options in the options bar.

It will give you four options: Tolerance, contiguous, antialiased and use all layers.

3. Nab the magic wand tool (the stick that appears to have a star on top of it), and highlight the section of the photo that you wish to correct. For example, if you have taken a group photo and want to select your friend’s red bag, simply select that bag with the magic wand.

4. You will want to zoom in on the highlighted area in order to enlarge it. You will notice that some areas

in the photos are marked by a slow moving dotted line. You are able to click on these particular areas in order to add, or even subtract, them from your work.

You can also select all the portions of ‘like contrast’ you want to be changed up while subtracting the ones you do not want.

5. Select the Image tab at the top of the screen, then “adjust”. Thereafter select the “colour balance” in order to shift the hue of the image to one of your liking.

The magic wand tool is considered one of the most difficult tools in Adobe Photoshop because it is misunderstood and often overlooked by users. However, once you have used the magic wand a few times you will become comfortable enough to just play with different settings. It is not an easy task to increase Photoshop IQ, but it is an extremely fun process to learn.

Magic Wand Tool is a go-to tool if you wish to display a product in various settings against different backgrounds, or removing it altogether so that your product stands alone. Until we meet again, fill your life with memories rather than regrets. Enjoy life and stay on top of your game.

NB: Columnist welcomes feedback at deedee21bastian@gmail.com ABOUT COLUMNIST: Deidre M. Bastian is a professionally-trained graphic designer/marketing coordinator and certified life coach with qualifications of M.Sc., B.Sc., A.Sc. She has trained at institutions such as: Miami Lakes Technical Centre, Success Training College, College of The Bahamas, Nova Southeastern University, Learning Tree International, Langevine International and Synergy Bahamas.

FINANCIAL PROVIDER URGES BAHAMIANS: DON’T PANIC A BAHAMIAN financial services provider yesterday urged citizens and investors to exploit the COVID-19 pandemic for opportunities rather than simply panic.

Sean Longley, pictured, Leno’s founder and president, said: “We read the headlines daily. We follow reports of business concerns and closures.

We understand the impact of higher rates of unemployment, and the fear of uncertainty about how long that may last, but if I can send a strong, single message it is this – don’t panic. Out of crisis comes opportunity.”

Leno, which offers investments, trust, real estate and corporate services, was forced to put its own plans on hold when the March 17 lockdown to slow COVID-19’s spread was announced. The pandemic has delayed construction on its new $25m, five-storey glass and steel headquarters atop Collins Avenue.

“Our team has been meeting daily among ourselves via Zoom and with clients, assessing unfolding circumstances,” Mr Longley explained. “The Bahamian fiscal reality is this: We had $1.8bn in liquidity in our system before COVID19. That is a very healthy amount, though we knew even before this pandemic we were heavily dependent on tourism to maintain foreign reserves.”

With border closures, hotel shutdowns and empty air and sea ports extending into their third month, the outflow of foreign currency to keep the islands supplied with supplies including oil and food has vastly exceeded inflows to replenish the foreign reserves.

Mr Longley, whose company manages $800m in assets, said this is no reason to panic but, instead, a call

to look at new, additional or different revenue sources.

Enhancing or replacing traditional sources of tourism-driven revenue is no longer a “pipedream for a future generation”, he added, but a necessity if The Bahamas is going to create a new pathway for commercial success going forward.

“Real estate,” he said, “construction, development, technology in education and in financial services. There are many avenues if we are open to accepting that this is a new environment, and we do not want to sit back and ‘wait until things return to normal’ when we do not know what the new normal is or what it will look like.”

Leno is looking at an accrual vendors’ fund. Such a vehicle will allow a group of people to purchase and develop real estate, or to invest in bonds or other securities. Leno handles mutual funds, but says a proposed accrual fund would be for those who want to participate in a specific project.

“Right now, borrowing that $252m through the IMF, which government has been authorised to do, is a necessary evil,” Mr Longley said. “In more traditional times, with tourism our major breadwinner, it takes The Bahamas 18 months to recover from global setbacks; especially any setbacks that impact the US the 2008 great recession did.

“In this case, we do not know how long it will take, but we know that our foundation is strong, our foreign reserves are healthy and we have to be prudent to maintain that position the best we can while we invest in new opportunities that arise as a result of crisis. We cannot cave when we know we are rich in resources, imagination and ideas with the ability to succeed.”