06052019 BUSINESS

business@tribunemedia.net

WEDNESDAY, JUNE 5, 2019

$4.90 ‘No big concern’ for the US$ peg in joining WTO

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Central Bank’s governor says the prospect of widening “trade imbalances” as a result of joining the WTO is “not a major concern” for The Bahamas’ fixed exchange rate system.

John Rolle told Tribune Business that the Central Bank would remain in control of monetary policy should this nation become a full World Trade Organisation (WTO) member, including the credit growth needed to “fire up” import demand.

He added that the regulator was “still in a comfortable position” to manage any post-WTO fall-out, with The Bahamas’ external reserves that support the one:one peg dollar standing at $1.582bn in April 2019 following 13.6 percent month-over-month growth.

Asked whether the findings of the Chamber of Commerce-commissioned Oxford Economics study, which suggested that import volumes would increase post-WTO accession to a level that may ultimately drain the external reserves, were cause for alarm, Mr Rolle said the issue was “not a direct concern”.

He explained: “When you look at imports, it’s an income-determined decision. In The Bahamas we know that depends on how the Bahamian income performs; they will import more or less.

“Cost of imports is a factor, but also income levels. To the extent WTO has a positive impact on personal earnings, that also provides the fuel to finance any increase in imports.”

Mr Rolle said the Central Bank’s primary focus was on credit demand stimulated by increased household and business earnings, and he added: “We don’t lose any control over that. We continue to manage the credit flows to make sure... it’s sustainable.

“Domestic credit growth remains in our control.

That’s not a major concern.

From the monetary policy side we are still in a comfortable position to manage what happens. Sometimes these analyses take a very static view.”

The Central Bank governor was responding after the Oxford Economics study, which assessed the potential impacts from becoming a full WTO member, found that growing “trade imbalances” may require The Bahamas to assess the merits of the fixed exchange rate that underpins the one:one US dollar peg.

This resulted from its forecast that imports will increase post-WTO accession as the lowering/ elimination of many import tariffs makes them relatively cheaper for businesses and consumers.

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$4.95

$4.91

Govt makes good on property tax u-turn

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

T

HE government is reversing taxation policy that threatened to destabilise the Bahamian second home market with legal reforms tabled alongside the 2019-2020 budget.

Marlon Johnson, the Ministry of Finance’s acting financial secretary, yesterday confirmed that included in the Real Property Tax Amendment Bill 2019 is a clause that reverts to the definition of “owner-occupied property” in effect prior to last year’s Budget.

The change makes good on a promise given by KP Turnquest, deputy prime minister, some nine to ten months ago after the government inserted a previous requirement that homeowners must reside

• Restores ‘seasonal basis’ for second homeowners • Reverses ‘owner-occupied’ change in last budget • Move not highlighted in budget presentation in their property for at least six months annually to qualify as an “owner-occupied property”.

The Minnis administration reversed course after an outcry from second homeowners, realtors and other Bahamian businesses and industries that rely heavily on this market. They argued that this requirement would both push property owners into a higher-rate tax bracket and eliminate the $50,000 cap on their annual payments, resulting in major tax hikes.

This, homeowners and local industries added, would prompt existing owners to sell while also deterring potential buyers,

thereby undermining economic activity - especially in the Family Islands - while also reducing the government’s tax take.

The Real Property Tax Amendment Bill attempts to allay these fears, and restore market certainty, by reintroducing the words “seasonal basis” to the definition of “owneroccupied property” and restore second homeowners to the lower tax bracket.

The Bill’s “objects and reasons” section, outlining the rationale for its tabling in Parliament, says the change is designed “to alter the definition of ‘owneroccupied property’ to change from ‘resides in such

BAHAMIAN businesses are “anxious and uneasy” over the lack of a “clearly defined tax strategy” from the government, the Chamber of Commerce’s chairman warned last night.

Michael Maura told Tribune Business that while the private sector had been able to “take a breath” due to the absence of new or increased taxes in the 2019-2020 budget, many companies are “still unsettled” due to concerns over “what the future has in store”.

MICHAEL MAURA

Bran: Budget is ‘same old, same old’

By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

efforts to enhance tax collection efficiency and its focus on boosting startups, small businesses and entrepreneurs.

He also hailed the imminent creation of the Fiscal Responsibility Council as a key element in efforts to hold the government accountable for its financial management, adding that the Minnis administration was on the right track with

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• Chamber chair urges ‘clearly defined path’ • Private sector wants to know ‘what future holds’ • Expected ‘more’ on business ease in budget He added that the chamber had also wanted to “see more” reforms targeting the ease and cost of doing business in last week’s budget, particularly when it came to the domestic economy, and called for further improvements in this area to be “a precursor” to any future taxation increases.

Despite the concerns, Mr Maura said the budget contained “a lot of positives” - especially when it came to the government’s

BRANVILLE MCCARTNEY

THE DNA’s ex-leader yesterday told the government it must “walk and chew gum at the same time” by reducing the deficit and stimulating economic growth, slamming the 2019-2020 budget as the “same old, same old”.

Branville McCartney told Tribune Business: “I wanted to see a budget that would do things to enhance and help our economy and, more particularly, the average man on the street. I wanted to see the government help to facilitate the growth of the economy.

“I don’t see that unfortunately. I don’t see where there are opportunities for employment of our people.

I certainly have not heard anything about building new industries. It’s really the same old, same old.”

Mr McCartney added: “I haven’t seen any bold steps taken. We need bold steps to be taken to ensure that our economy gets back on track. That doesn’t appear to be happening from what I’m seeing, so we’re going through another fiscal year with the economy stagnating. People are struggling to put food on the table, pay their rent or pay their mortgage. The status quo remains.”

He warned that government cannot be solely focused on debt and deficit reduction, and neglect efforts to stimulate the economy. “You cannot tax yourself out of a recession, and that’s what they

property exclusively as a dwelling house on a permanent basis that is six months’ or longer to ‘resides in such property exclusively as a dwelling house on a permanent or seasonal basis’.”

Mr Johnson, affirming that the restoration of “seasonal basis” was designed to fulfill the promise given by the deputy prime minister last August, told Tribune Business that the reversion would have no “substantial impact” on government revenues.

He added that the Public Treasury’s income from this source was likely to see “a marginal increase” as

Business ‘uneasy’ over tax strategy’s absence

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

$4.95

Union chief urges end to ‘strong man tactics’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

A TRADE union leader has called for an end to “strong man tactics” in industrial negotiations while admitting that The Bahamas’ labour relations climate is “very, very bad”.

Obie Ferguson, the Trades Union Congress (TUC) president, told Tribune Business that the “complete disrespect” shown by employers to labour leaders was at the root of many current industrial disputes.

Voicing disappointment that virtually all outstanding negotiations appeared to be marked by strike votes, Mr Ferguson said just days before the upcoming Labour Day holiday that “you don’t have to be a

• Accuses employers of ‘complete disrespect’ • And interference in trade union affairs • Labour relations climate ‘very, very bad’

OBIE FERGUSON rocket scientist to see things are not where they ought to be”.

He also accused some employers of interfering

with the internal affairs of trade unions, pointing to the Water & Sewerage Corporation and concerns - also expressed by John Pinder, director of labour that its management union was non-compliant with its constitution when it came to elections, and therefore could not take a strike poll.

Its poll was subsequently certified by Dion Foulkes, minister of labour.

With labour disputes spilling over from the public sector into the private sector, Mr Ferguson told Tribune Business: “We are very, very concerned.

I spoke to the president of

the National Congress of Trade Unions of The Bahamas (NCTUB) president [Bernard Evans], and he certainly shared my views.

“I spoke with a number of individual unions and they shared my views on the state of labour. What seems to be a major problem is a complete disrespect of trade union leaders and conventions in that every dispute we now have there seems to be a strike vote and push towards a strike.

“To me, and I’ve said this over and over and over repeatedly, the employer has a duty, the union has a duty, and in the interests of

the parties there must be a resolution of these issues.

There must be a willingness to resolve things. The strong man tactic is over for each party,” the TUC chief continued.

“We need to come to the table and say: ‘Look, these are our interests respectively, and let us find a solution to it, but again that doesn’t seem to be.”

Taking strike votes early in industrial negotiations appears to be becoming a common union tactic, with both the Bahamas Hotel, Catering and Allied Workers Union (BHCAWU) and two Water & Sewerage Corporations both following this play book despite talks having hardly begun.

It is likely that the unions are seeking leverage, or

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PAGE 2, Wednesday, June 5, 2019

THE TRIBUNE

BREA chief to head Florida conference THE Bahamas Real Estate Association’s (BREA) president will be the keynote speaker when business leaders from various countries gather in Fort Myers tomorrow for International Day. “This is a great honour for The Bahamas and for the Bahamian real estate profession,” said Mrs Wallace-Whitfield, who was recently elected for a third term as head of the 700-member professional association. “It is a recognition of the interest in our market and the value of investing in The Bahamas.”

Mrs Wallace-Whitfield, one of the few brokers in The Bahamas to hold the NAR (National Association of Realtors) Realtor qualification, will join speakers including the NAR global coordinator for North

CHRISTINE WALLACE-WHITFIELD, president of BREA, will be the keynote speaker at a gathering of business leaders in Fort Myers, Florida, this week for International Day. America, Central America and the Caribbean, Carla Rayman Kidd; the mayor of Fort Myers, Randy Henderson; Pablo Burtado from Hurtado Immigration law firm; a leading business recruitment specialist from

Cape Coral and others for the day-long session.

She will speak on Doing business with The Bahamas. Mrs WallaceWhitfield is also expected to reinforce her commitment to Bahamian professionals by advising foreign real estate agents that if they have any dealings in The Bahamas, they must align with a BREA-licensed Bahamian firm by law. She has vowed a crackdown on foreign agents operating outside the law.

“I don’t want to discourage anyone,” she explained.

“We just want them to operate within the law. We are excited about working with NAR so long as it is on a referral basis. Beyond that, this is a great opportunity for us to review new developments in The Bahamas, provide information and network.

EIGHTEEN members of the Damianos Sotheby’s International Realty team gathered in Vancouver, Canada, for the 2019 Global Networking Event. The three-day conference, which took place from May 13-15, welcomed nearly 2,000 Sotheby’s International Realty affiliates from 35 countries.

BAHAMIAN REALTOR TEAM JOINS GLOBAL NETWORKING EIGHTEEN members of Damianos Sotheby’s International Realty flew nearly 3,000 miles to participate in the chain’s 2019 Global Networking Event in

Vancouver from May 13-15.

“Every year we encourage as many of our team members as possible to attend this one-of-a-kind event,” said Lana Rademaker, Damianos Sotheby’s chief brokerage officer. “Not only is it an opportunity to learn about Sotheby’s International Realty’s newest technological advances and ever-expanding real estate platform, but it offers the chance to meet thousands of Sotheby’s International Realty agents from all over the world who offer input and ideas from their individual markets - information and insight you wouldn’t typically have access to.”

“It’s not often that you get the chance to meet with so many peers and colleagues in one place,” said George Damianos, Damianos Sotheby’s chief executive.

“Regardless of the geographical location of your

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market, as estate agents we’re often experiencing similar situations.

“It’s extremely valuable to have the opportunity to exchange information and share stories face-toface - it’s one of the best ways to gain the kind of knowledge that sets your business apart.”

In addition to networking, the three-day conference offered presentations on topics ranging from allnew corporate branding strategies and guidelines to upcoming technological innovations. Academy Award-winning actress, and chief executive and founder of Goop, Gwyneth Paltrow, also shared her thoughts on the importance of connecting with today’s consumer as the conference’s keynote speaker.

“Ms Paltrow’s message on the importance of authenticity in your daily business really resonated with our team,” Ms Rademaker said. “As a client-centric company, every one of our agents is acutely focused on creating a positive experience for our clients. Our clients are at the centre of our philosophy, our operations, our ideas and our strategies.”

THE TRIBUNE

TAXI CHIEF: NASSAU PORT ‘CANNOT BE LEFT BEHIND’

By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net TAXI drivers were yesterday said to be “excited” about potential spin-off opportunities from the $250m Nassau cruise port overhaul, their union chief saying: “We don’t want to be left behind”.

Wesley Ferguson, the Bahamas Taxicab Union’s (BTU) president, told Tribune Business that union representatives met earlier this week with Global Port Holdings, which was selected earlier this year as the preferred bidder to undertake the port’s redevelopment.

“We met with them recently to sort of break the ice,” he said. “We had a meeting before but I wasn’t in attendance. The meeting on Monday went well. I had representatives from the dock and we were happy, for the most part, with what we heard.

“We want to know more abut where we fit in the overall scheme of things. We have indicated that in no way are we going to accept anything we didn’t agree to and have decisions for taxi drivers pushed down our throats. It’s not a take it or leave it situation. If it doesn’t feel right we will reject it.”

ARTIST rendering of Global Ports’ vision for Nassau port.

Mr Ferguson said 150 taxi drivers operate from the Prince George Wharf, and praised Global Port Holdings’ redevelopment plan as a good one. “Sometimes people are very pessimistic about changes,” he added.

“However, change is necessary.

“It’s time they move ahead with the changes. The tourism product needs it. We are excited about changes.

We just don’t want to be left behind or taken advantage of.”

Global Ports Holding, the UK-listed, Turkish-headquartered operator of 16 cruise ports spread throughout the Mediterranean, Asia-Pacific and Atlantic regions, was unveiled as the preferred bidder to take over Prince George Wharf’s management back in February.

It has pledged to provide a $10m interest free loan to small Bahamian retail investors to enable them to

acquire shares in an investment fund that will have 49 percent equity ownership in the project. It wants 20,000 Bahamians to hold shares in The Bahamas Investment Fund that will be set up and administered by CFAL (the former Colina Financial Advisors).

Company officials have also promised to work “in harmony” with the Downtown Nassau Partnership (DNP) to help finance improvements to Bay Street and surrounding roads, and upgrade lighting and benches to make the area “a more attractive place where people want to linger” and spend money.

Global Ports Holding also plans to offer training initiatives to help small retailers and other businesses in areas such as product placement and merchandising, and also assist merchants not part of the cruise ships’ own marketing programmes.

CLOSURE

Wednesday, June 5, 2019, PAGE 3

BTC in ‘strict compliance’ with industrial agreements

By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net THE BAHAMAS Telecommunications Company (BTC) yesterday said it follows “strict compliance with all laws and regulations” governing its industrial agreements amid union concerns of further job losses.

The communications carrier, responding to renewed fears that BTC’s call centre functions will be outsourced, said in a statement: “BTC signed a new industrial agreement with the BCPOU (Bahamas Communications and Public Officers Union) at the end of April.

“Negotiations with the BCPMU (Bahamas Communications and Public Managers Union) began shortly thereafter and we are confident that we will reach an agreement in the near future. We will continue to work with our stakeholders towards a mutually beneficial agreement, and will refrain from public comments at this point.”

It added: “BTC prides itself in conducting its affairs in strict compliance with all laws and regulations that govern our agreements.

Our singular goal remains to provide the best connectivity and entertainment experiences for our customers, while maintaining a

culture of high performance where our team members can thrive.”

BTC’s position comes after BCPOU members protested outside BTC’s JFK Drive headquarters on Monday. Dino Rolle, its president, could not be contacted by Tribune Business yesterday.

However, besides the call centre, he alleged that workers were also being constructively dismissed as a result of BTC advertising jobs that are already filled.

Mr Rolle also claimed that 100 staff were unable to benefit from the BCPOU’s industrial agreement despite having been employed for five years or more.

NASSAU PROVIDER ATTENDS REGIONAL DIASTER SUMMIT A NASSAU-BASED cloud services provider has taken part in a World Bank-organised regional conference on disaster resilience and combating climate change.

Cloud Carib was among organisations from 20 Caribbean countries who gathered in Bridgetown, Barbados, at the Understanding Risk (UR) Caribbean conference. Hosted by the World Bank in partnership with the Barbados government, the Caribbean Disaster Emergency Management Agency (CDEMA) and the European Union (EU), the week-long conference brought together leaders in risk and disaster management.

The Bahamas-based company held a panel discussion on Strategic approaches to infrastructure sustainability.

The panel featured Cloud Carib’s Mark Arruda, vicepresident of solutions; Shiva Bissessar, managing director of Pinaka Consulting; Ann Wyganowski, vice-president of HZX Business Continuity Planning; and Yohannes Kesete, senior disaster risk management specialist at the World Bank.

The discussion focused on the critical issues influencing infrastructure sustainability, ranging from physical to digital infrastructure, and addressed strategies on how to approach maintaining sustainability and resilience in a region where natural disasters are common and resources limited.

Cloud Carib also hosted a half-day workshop and training session led by Stelios Xeroudakis, its founder and chief technology officer; Mark Arruda; Eamon Sheehy, Cloud Carib’s director of public sector; and Ann Wyganowski.

“This event is timely,” said Mr Xeroudakis. “The region is looking for a path to better resiliency. The last few hurricane seasons have devastated the region, and with the current trends and impacts of climate change we expect the devastation to only increase.

“It is important the private sector and organisations like Cloud Carib be involved in this discussion. Our services offer entities, both public and private, the opportunity to improve their resiliency and reduce their risk profile.

The conference featured

demonstrations hosted by the University of the West Indies, Harvard University, NASA, the Organisation of Eastern Caribbean States (OECS), Cloud Carib and the United Nations Office for Disaster Risk Reduction.

Mia Amor Mottley, the Barbados prime minister, said: “Failure to act is largely because we do not believe that the problem is important enough to require such action. That’s the hardest thing for us as Caribbean people to accept.

“It is our contention that it is only when moral and ethical leadership is given, both at the national level and the international level, that we must summon the courage to fight down these battles.

Until such time, it is a form of idle entertainment for those who choose to watch.

I pray that those of you gathered here will help us as policymakers understand the art of the possible.

“For you, as technicians more than anything else, will frame what is technically possible - whether at the level of infrastructure, science and technology, capacity to finance or general policy making.”

The public is advised that the Bahamas Development Bank will be closed on Thursday, June 6th, 2019.

The Bank will resume duties on Tuesday, June 11th, 2019 at 9:00 am.

HANDYMAN/ MAINTENANCE PERSONNEL INCORPORATED TRUSTEES OF THE CHURCH OF ENGLAND

Sorry for any inconvenience caused

POSITION DESCRIPTION § The Handyman reports to the Diocesan Administrator and is responsible for

providing general repairs and maintenance of Addington House Complex and the Church House property. § The individual is required to live on site.

RESPONSIBILITIES § Provides general repairs and maintenance to the Addington House Complex.

• To walk around the office complex and Shirley Street frontage.

• To remove any litter on premises.

• To manicure the lawns and flower beds.

• General repairs to building such as masonry, carpentry and painting.

• Assist with lifting of items for the bookstore and office.

• Participate in major repair work on building by outside contractors.

• Responsible for security for premises.

• Maintenance of archives area.

• Available after hours as needed.

• Any other reasonable duties as requested. § Provides general repairs and maintenance to the Church House property.

• To walk around the office complex and property.

• To remove any litter on premises.

• Any other reasonable duties as requested.

ACCOUNTABILITY

Ensure walkabout is done on a daily basis.

Ensure that yard and surrounding areas are free of leaves and litter.

Ensure that lawns and flower beds are always neatly manicured.

Ensure that premises are free of vagrants and stray animals.

Ensure that the buildings are always properly painted.

Ensure that boxes are properly stacked and general archives area maintained.

Ensure that outside lights are turned on in the evenings and turned off in the mornings. § Ensure that the Addington House Complex is properly secured in the evenings and weekends.

§ § § § § § §

Applications must contain a cover letter and CV and may be submitted via email to hr@bahamasanglican.org or dropped off at the Diocesan Office, Sands Road no later than Tuesday June 11, 2019 at 5pm.

PAGE 4, Wednesday, June 5, 2019

THE TRIBUNE

Business ‘uneasy’ over tax strategy’s absence FROM PAGE ONE its plans to switch the public sector’s finances to accrualbased accounting.

And, despite having wished for more, Mr Maura said the continued roll-out of Customs’ Electronic Single Window via its “Click2Clear” initiative will both enhance tax revenues by combating fraud and corruption while also boosting trade efficiency and clearance of goods.

Still, recalling last week’s unveiling of the government’s 2019-2020 fiscal plans, the chamber chairman told Tribune Business: “As I reflect a bit further, one area that jumped out at me - notwithstanding the fact the budget as presented did not include any increased taxation - is that the business community is aware that the government continues to be under significant pressure to develop a new tax strategy and specifics to the strategy.

“I didn’t see where there was any clear indication of what that taxation strategy is. There are still people wondering if they’re going

to be surprised by corporate income tax at some point in the future, or if they’re going to be surprised by personal income tax at some point in the future.

“The lack of a clearly defined path for a tax strategy, which includes comprehensive, sustained public engagement around what that tax strategy is, from a business perspective - while there’s a sense of probably being able to take a breath in light of no new taxes being introduced, there’s still very much an uneasiness around what the future has in store in terms of taxation. That’s still unsettling and concerning to the business community.”

The government had, with private sector support, previously hired the Deloitte & Touche accounting firm’s UK arm to conduct a comprehensive review of the Bahamian tax system. However, KP Turnquest, deputy prime minister, told Tribune Business earlier this year that the effort had been put on hold as a result of The Bahamas’ urgent need to respond to the European Union (EU) and Organisation

for Economic Co-Operation and Development’s (OECD) anti-corporate tax evasion offensives.

This highlights how Bahamian tax policy has largely been conducted in an ad-hoc manner by several administrations, with long-term planning made difficult - or even impossible - by the need to respond to both external pressures and the government’s own revenue needs. This has often resulted in sudden increases and adjustments that impact specific industries.

Consistent, seamless tax policy is often a critical element in fostering private sector confidence and job-creating investment.

However, many observers will argue that Bahamian tax policy has been anything but in recent years, especially given that the whole economy was hit by VAT’s introduction and subsequent hike to 12 percent within the space of threeand-a-half years.

Mr Maura said the government’s decision to avoid any further taxation shocks with its 2019-2020 budget had been “well received”, but added that

the budget seemed to lack specifics when it came to “a very committed timeline” for starting and finishing ease of doing business improvements.

And, while acknowledging that foreign direct investment (FDI) was “critical to our economic prosperity”, the Chamber chairman called for a greater focus on government agencies that interact heavily with the domestic economy - such as the Registrar General’s Department - when it came to ease of doing business reforms.

“The Bahamian people are very much waiting on improvements to these government services, and how they’re going to benefit from a small business operator perspective,” Mr Maura told Tribune Business.

“We have been talking about business licence filings for a couple of years, and also improvements in terms of efficiency with respect to engagement with the Registrar General’s Office. That seems to have been unintentionally overlooked, or there’s no clear plan around that, speaking to everyday things that

touch small and large Bahamian business operators.”

While The Bahamas “needs to do what we can to make things better” when it comes to government services, Mr Maura said Mr Turnquest had himself highlighted the need for urgent ease of businessrelated policy reforms when he praised the Chambercommissioned Oxford Economics report on the potential impacts from joining the World Trade Organisation (WTO).

“Seeing how he brought it up, it highlights the urgent need for substantial policy reform around the ease of doing business, around the regulatory framework, and around the licensing of businesses,” he added.

“All these things are necessary for a wellfunctioning, efficient and equitable business environment. Tying it back to what I started off on, this anxiety about what the future holds with taxation, all governments do seem to raise taxes at some point.

“We’d expect and hope that a real strong push around making it less expensive to do business will be a

precursor to any discussion around increasing taxation.

Around the ease of doing business we’d have hoped to see more around that [in the Budget].”

Still Mr Maura, who is chief executive of the Arawak Port Development Company (APD), said the government deserved credit where it was due.

“For many reasons I look forward to the Click2Clear launch, and also the introduction of a comprehensive modern risk management protocol which provides greater trade efficiency while enhancing the electronic review and clearing, or alternatively the electronic flagging of suspect shipments requiring secondary screening at the port of entry,” he said.

The chamber chairman also backed the government’s decision to increase cruising permit fees, but described the $413.82m subsidies due to loss-making state-owned enterprises (SOEs) in the upcoming fiscal year - representing 15.4 percent of total recurrent spending - as “alarming”.

Govt makes good on property tax u-turn FROM PAGE ONE a result of lifting the real property tax “cap” from $50,000 to $60,000 in the 2019-2020 budget.

“When we put in the definition originally it was just to clarify seasonality,” Mr Johnson said of the change with last year’s budget. “We will continue, at the technical level in the ministry, to look at that qualification and how best

to state seasonality.

“It wasn’t an attempt to glean any special revenues from that move. We’ll continue to look at that during the year to find ways to better define ‘seasonality’.”

The return to the previous definition was not highlighted in the 2019-2020 budget communication, and instead buried among the mass of legislative changes required to give effect to the Minnis administration’s

tax changes and reforms.

While concerns over the negative economic fall-out won the argument, the government’s pledge to reinstate the “seasonal basis” definition last year came under fire from its political opponents and other critics on the basis it was granting a “tax break” to wealthy foreigners who could most afford to pay.

For instance, the Lyford Cay Property Owners

Association last year warned the government that the “insensitive and irrational changes” to the Real Property Tax Act’s “owner-occupied” definition were starting to undermine confidence among the very high-end North American investors this nation wants to attract.

The association’s chairman, Henry Cabot Lodge III, said tax rates that were “too high and unpredictable” would lead to consequences impacting “every sector of the economy that services Lyford Cay”, as existing homeowners sought to exit and new buyers were deterred.

Now, the latest change clarifies in law that The Bahamas’ second homeowner community - many of whom are in this nation for just a

few months per year - will not fall out of the “owneroccupied” category and lower tax rates that were reduced in 2016.

Nor will they face the higher tax rate, which the government previously doubled from one percent to two percent on the portion of a property’s value above $500,000. Mario Carey, founder of Better Homes and Gardens Real Estate MCR Bahamas Group, yesterday told Tribune Business that the government’s move will boost market confidence and give participants greater certainty.

“I think it will give people comfort in knowing that our government is not counting days (how long people are here),” he said. “When you reside here, live here, we don’t count days. You

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don’t want to confuse that; you want to leave it open so people have flexibility. ‘Seasonal basis’ is the key term.

“I think it’s good. I think the market will respond positively. I think it will give us some confidence in the market that they’re holding true to their promise.”

One realtor, speaking on condition of anonymity, agreed of the change that “this is how it should be”, but said second homeowners who earned rental income from their properties needed to pay VAT on these earnings.

They added: “I’m glad they’re doing it. They should never have messed with it previously, but they did. It’s going to help. You can reside in your home but will still have to pay VAT on rentals.”

Bran: Budget is ‘same old, same old’ FROM PAGE ONE seem to be doing,” said Mr McCartney. “By taxing the Bahamian people more it’s just going to put us more on a downward spiral. The government must walk and chew gum at the same time.

Yes, you have to reduce the deficit but you also have to do things to stimulate the economy so that people are back to work and have money in their pockets as opposed to struggling to make ends meet or keep their businesses open.”

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THE TRIBUNE

Wednesday, June 5, 2019, PAGE 5

Union chief urges end ‘No big concern’ to ‘strong man tactics’

for the US$ peg in joining WTO

FROM PAGE ONE With exports and foreign direct investment (FDI) inflows unable to fully compensate for the drawdown on foreign currency to purchase these items, the Oxford Economics study said this could widen The Bahamas’ merchandise trade deficit by up to 2.3 percent of GDP over the next decade and represent a significant drain on the external reserves.

Assessing a scenario where The Bahamas became a full WTO member without undertaking broad-based policy reforms to improve the business climate, Oxford Economics estimated that import volumes would increase by nine percent over the four years from 2020.

With exports rising by three percent over the same period, the study found: “In light of the relative scale of the estimated impacts on merchandise imports relative to exports, the trade deficit in goods would widen significantly as a result of WTO. Our results show the deficit widening by around 2.3 percent of GDP relative to baseline levels, where it remains over the medium term.”

While this would be partially offset by trade in services, Oxford Economics forecast that the current

account deficit would still be larger by a sum equivalent to two percent of GDP come 2029.

“While we expect that additional FDI inflows would fund over half of the gap that is expected to open in the current account, the remaining shortfall could still have negative repercussions on the foreign exchange situation. Over the period 2020-2025, the implied shortfall in funding averages around $100m a year,” the report said.

“There are no universally applicable measures for assessing the adequacy of reserves, but it is clear that this scale of shortfall would have the potential to deplete all of the Central Bank’s estimated ‘useable’ external reserves of $522m over this timescale. That said, the Central Bank has been successful in increasing the stock of reserves in recent years through proceeds from external bond issues and other sources.

“Still, it is clear that the authorities would need to think carefully about strategies to handle the increase in foreign currency demand that would accompany trade liberalisation and whether the associated costs are worth the benefits to the economy from maintaining the currency peg.”

However, in a scenario where The Bahamas undertook fundamental economic reforms to accompany

WTO accession, Oxford Economics said the current and merchandise trade deficits would be lower due to stronger foreign direct investment (FDI) inflows and foreign currency export earnings.

“The impact on the current account is more muted, with the deficit levelling off at around 1.3 percent of GDP above baseline levels over the medium term (compared to 2.1 percent of GDP in the [other] scenario),” Oxford Economics said.

“This reflects both the larger size of the economy (which boosts GDP in the denominator) and an additional boost to exports of services, reflecting increased domestic investment in the sector.

“The more muted impact on the current account means that associated repercussions on the foreign exchange situation would be less acute than in the [other] scenario, at least initially. Our estimates indicate that increased FDI inflows broadly counterbalance the widening of the current account in the years 2020-2025,” the report added.

“However, the continued widening of the current account in subsequent years would eventually outpace these FDI inflows, implying that foreign exchange policies may still need to be reviewed later on.”

FORM B Notice of Intended Marriage (Section 7(3))

FROM PAGE ONE bargaining chips, in their negotiations with employers. National Insurance Board (NIB) employees also staged a recent mass sick-out to express their displeasure over the direction of industrial agreement negotiations.

“You don’t have to be a rocket scientist to see things are not where they ought to be,” Mr Ferguson told Tribune Business. “We can’t get a meeting with Sandals management. They only thing that’s certain when things are not done as they ought to be is industrial action.

“That is not something I would advocate as a labour leader before exhausting all

avenues for negotiations. A strike is not something you jump into. A strike vote is done merely to find out whether members want to strike. It’s designed to assist the process of negotiation.

Sometimes you have to use it, but before that I would recommend the parties sit down and try and dispose of the matter.”

Describing industrial relations in The Bahamas as “very, very bad”, Mr Ferguson accused some employers of “getting involved in union business” and added: “We can’t have that.

“The management cannot get involved in the internal affairs of the union.

The union has a constitution that it is bound to follow. You cannot have

the management telling the registrar of trade unions (Mr Pinder) that the union should have elections. It’s a matter for the constitution of the union; the department of labour ratifies it.”

Mr Ferguson did not refer to any specific situation of alleged employer interference in union affairs, although he was likely referring to the Water & Sewerage Corporation and its management union.

“That is the difficulty,” he added. “There is no regard for the system and no respect for the trade union leaders.... It’s the union that gets to determine the place and time for the poll, and that must be done in accordance with the constitution.”

In the Estate of DIANNA WELLS-BAIN late of the Settlement of Fox Town on the Island of Abaco one of the Islands of The Commonwealth of The Bahamas, deceased.

NOTICE NOTICE is hereby given that all persons having any claim or demand against the said estate are required to send the same duly certified in writing to the undersigned on or before the 12th day of August, A.D. 2019, after which date the Administrator will proceed to distribute the estate having regard only to the claims of which he shall have had notice.

AND notice is hereby given that all persons indebted to the estate are required to make full settlement on or before the date hereinabove mentioned.

CEDRIC L. PARKER & CO. Attorneys for the Executrix 9 Harcourt (Rusty) Bethel Drive Nassau, Bahamas

FORM B Notice of Intended Marriage (Section 7(3))

PAGE 6, Wednesday, June 5, 2019

THE TRIBUNE

TRUMP EASES UP, MAKES NICE WITH MAY BEFORE SHE STEPS DOWN LONDON Associated Press MAKING nice at the end, President Donald Trump eased up yesterday on his frequent criticisms of outgoing British Prime Minister Theresa May over her handling of the tortured Brexit deal, declaring that history will remember her fondly if the United Kingdom can successfully leave the European Union.

The latest chapter in the allies’ storied “special relationship” played out as anti-Trump protesters — with the infamous Trump baby balloon bobbing overhead — thronged the streets of nearby central London.

The president’s unexpected compliments for May come just days before she was set to resign the leadership of her party after failing to secure a Brexit deal. She will depart as prime minister once her successor has been chosen.

“I have greatly enjoyed working with you. You are a tremendous professional and a person who loves her country very much,” Trump told May at a news conference near the prime minister’s Downing Street office. But he couldn’t resist a slight dig, evoking the two years of broadsides he had

BRITAIN’s Prime Minister Theresa May greets President Donald Trump outside 10 Downing Street in central London yesterday.

President Donald Trump will turned from pageantry to policy yesterday as he joins British Prime Minister Theresa May for a day of talks likely to highlight fresh uncertainty in the allies’ storied relationship.

Photo: Kirsty Wigglesworth/AP lobbed at her by recalling that he had urged her to sue the EU rather than try to negotiate a departure.

Trump said he would have “sued and settled, maybe, but you never know. She’s probably a better negotiator than I am”. And he added that the deal May came away with was a good one and “perhaps you won’t be given the credit you deserve”.

May voiced hope her successor will be able to achieve Brexit.

“I still believe —I personally believe— that it is in the best interest of the UK to leave the European Union with a deal. I believe there

is a good deal on the table,” she said. “Obviously, it will be whoever succeeds me as prime minister to take this issue forward. What is paramount, I believe, is delivering on Brexit for the British people.”

Earlier in the day, Trump jokingly suggested that May “stick around” until a new US-UK trade deal was brokered. May and her aides chuckled at that.

Trump said Britain and the US would be able to strike a “phenomenal trade deal” once the UK had left the EU — music to the ears of pro-Brexit Britons.

But, in words sure to alarm

those in Britain concerned about Brexit, he said that “everything” — including the National Health Service — would be “on the table” in future trade negotiations.

In a later interview that will air today on ITV’s “Good Morning Britain”, Trump appeared to back away from that idea, saying he didn’t envision the health service being part of the talks, adding, “That’s not trade”.

Most Britons are protective of the state-run NHS, which delivers free health care to all, and many worry that private US health care firms could try to gain access to chunks of it as a condition of a trade deal.

On a separate issue, Trump said he anticipated “no limitations” on the future sharing of intelligence with the UK as the US continues to press its longtime ally to ban Chinese company Huawei amid espionage and trade concerns.

Traditionally, US presidents avoid injecting themselves into the domestic politics of other nations. But Trump didn’t hold back — right after claiming that he would not comment on Britain’s internal matters.

He renewed his praise of Conservative lawmaker Boris Johnson, who is campaigning to replace May as Conservative leader, and of

another contender, Foreign Secretary Jeremy Hunt.

He said he’d turned down a requested meeting from Labour Party leader Jeremy Corbyn and took new swipes at one of his most vocal critics, London Mayor Sadiq Khan.

Afterward, Brexit Party leader Nigel Farage and Trump met at the US ambassador’s residence, with Farage tweeting that they’d had a “good meeting”.

Trump previously had voiced support for a “hard Brexit”, which could have a devastating impact on the UK economy, according to many experts. That stands in contrast to a previous White House position that the departure should be as painless as possible. Others in the UK are pressing for a second referendum that could keep Britain in the EU. As the pageantry of Trump’s British state visit gave way to politics, an economic meeting between the leaders at St James’ Palace brought together ten leading companies — five from the UK and five from the United States. CEOs and senior representatives from BAE Systems, GlaxoSmithKline, National Grid, Barclays, Reckitt Benckiser, JP

Morgan, Lockheed Martin, Goldman Sachs International, Bechtel and Splunk were listed as attending.

While the corporate leaders gathered, protesters began to assemble across London. Leaders of Britain’s main opposition party joined demonstrators at a rally in Trafalgar Square, just up the street from May’s Downing Street office. Also in Trafalgar Square: a 16-foot robotic likeness of Trump seated on a golden toilet.

Trump glossed over the protests, saying he saw “thousands of people in the streets cheering” and waving US and UK flags, but just a “very, very small” group of protesters. “There was great love,” he said.

Trump and first lady Melania Trump later toured the Churchill War Rooms, the British government’s underground command centre during World War II. Then it was time for a fancy reciprocal dinner that the Trumps hosted at the US ambassador’s residence for Prince Charles, his wife, Camilla, and other dignitaries.

On the menu: heritage tomatoes with burrata, grilled filet of beef and vanilla ice cream with summer berries.

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED The Public is hereby advised that I, ROSEVELT STRACHAN of Murphy Town, Abaco, Bahamas intends to change my name to DARAN MILLER. 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-792, Nassau, New Providence, The Bahamas no later than thirty (30) days after the date of the publication of this notice.

NOTICE

NOTICE is hereby given that ESTEVE ARTIS of Carib Road, Nassau, Bahamas is applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twentyeight days from the 29th day of May, 2019 to the Minister responsible for Nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

MARKET REPORT www.bisxbahamas.com

(242) 323-2330

TUESDAY, 4 JUNE 2019

(242) 323-2320

ALL SHARE INDEX: CLOSE: 2,158.80 | CHG: -11.35 | %CHG: -0.52 | YTD: 49.35 | YTD%: 2.34 BISX LISTED & TRADED SECURITIES 52WK HI 4.50 20.91 7.00 5.50 2.60 2.00 3.15 11.05 6.17 4.64 12.50 2.74 1.96 9.32 7.00 15.60 7.75 3.75 14.00

52WK LOW 3.50 19.17 4.90 3.85 1.00 0.19 2.00 8.89 6.13 3.54 10.00 2.35 1.60 7.50 6.10 11.00 6.20 3.01 12.51

PREFERENCE SHARES 1000.00 1000.00 1000.00 1000.00

1.00 103.00 100.00 100.00 105.00 103.00 100.00 10.00 1.01

1000.00 1000.00 1000.00 1000.00

1.00 100.00 100.00 100.00 100.00 100.00 100.00 10.00 1.00

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 Commonwealth Bank Class Commonwealth Bank Class Commonwealth Bank Class Commonwealth Bank Class Commonwealth Bank Class Fidelity Bank Class A Focol Class B

SYMBOL AML APD BPF BWL BOB BBL CAB CIB CHL CBL CBB CWCB DHS EMAB FAM FBB FIN FCL JSJ

E J K L M N

CORPORATE DEBT - (percentage pricing) 52WK HI 100.00

52WK LOW 100.00

115.92 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

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

CAB6 CAB8 CAB9 CAB10 CHLA CBLE CBLJ CBLK CBLL CBLM CBLN FBBA FCLB

SECURITY Fidelity Bank Note 22 (Series B) +

SYMBOL FBB22

Bahamas Note 6.95 (2029) BGS: 2015-1-3Y BGS: 2014-12-5Y BGS: 2015-1-5Y BGS: 2014-12-7Y BGS: 2015-1-7Y BGS: 2014-12-30Y BGS: 2015-1-30Y BGS: 2015-6-3Y BGS: 2015-6-5Y BGS: 2015-6-7Y BGS: 2015-6-30Y BGS: 2015-10-3Y BGS: 2015-10-5Y BGS: 2015-10-7Y

BAH29 BG0203 BG0105 BG0205 BG0107 BG0207 BG0130 BG0230 BG0303 BG0305 BG0307 BG0330 BG0403 BG0405 BG0407

BAHAMAS GOVERNMENT STOCK - (percentage pricing)

LAST CLOSE 4.18 17.43 6.00 5.40 2.58 1.95 2.21 11.05 6.16 4.48 10.00 2.77 1.85 9.51 7.00 14.45 7.50 3.48 14.00

CLOSE 4.18 17.43 6.00 5.40 2.58 1.95 2.21 11.05 6.16 4.48 10.00 2.79 1.85 9.58 7.00 14.45 7.75 3.16 14.00

CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.02 0.00 0.07 0.00 0.00 0.25 -0.32 0.00

1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.00 100.00 100.00 100.00 10.00 1.00

1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.00 100.00 100.00 100.00 10.00 1.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

CLOSE 100.00

CHANGE 0.00

107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

LAST SALE 100.00 107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

VOLUME

15,000 12,000

VOLUME

EPS$ 0.167 0.932 1.838 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 0.250 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 25.0 18.7 N/M 16.7 N/M N/M -5.1 15.6 12.8 29.1 15.9 27.4 8.9 N/M 11.0 17.3 8.2 15.4 22.2

YIELD 3.11% 7.23% 0.00% 4.63% 0.00% 1.03% 0.00% 6.43% 3.57% 2.68% 6.20% 2.44% 3.24% 3.42% 3.43% 3.46% 2.58% 2.85% 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%

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

YTD%12 MTH% 1.22% 3.96% 0.74% 3.42% 0.97% 2.67% 2.06% 4.97% 4.52% 0.96% 1.57% 4.58% 0.99% 4.25% 1.32% 4.12% 3.22% 5.64% -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% 7.40% 2.70% 10.20% 1.30%

NAV Date 30-Apr-2019 30-Apr-2019 26-Apr-2019 31-Mar-2019 31-Mar-2019 30-Apr-2019 30-Apr-2019 30-Apr-2019 30-Apr-2019 28-Feb-2019 28-Feb-2019 28-Feb-2019 28-Feb-2019 28-Feb-2019 28-Feb-2019 30-Mar-2019 30-Mar-2019 30-Mar-2019

MUTUAL FUNDS 52WK HI 2.23 4.27 2.05 188.32 158.55 1.62 1.76 1.70 1.15 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 1.56 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 2.23 4.27 2.05 188.32 154.49 1.62 1.76 1.70 1.15 7.54 8.73 6.65 10.66 11.79 10.48 9.92 8.68 11.38

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 | BENCHMARK 242-326-7333

NOTICE

NOTICE is hereby given that RICARDO FLORESTANT of #95 Miami Street 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 5th day of June, 2019 to the Minister responsible for Nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE

NOTICE is hereby given that SANDELINE DORSEMA of Carmichael Road Nassau, Bahamas is applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 29th day of May, 2019 to the Minister responsible for Nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE

NOTICE is hereby given that AGELIE CHERFRERE TERNELUS of Carmichael, Bacardi Road Nassau, Bahamas is applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 5th day of June, 2019 to the Minister responsible for Nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

THE TRIBUNE

I

S Big Tech headed for a big breakup?

The US Justice Department and the Federal Trade Commission are moving to investigate Google, Facebook, Amazon and Apple over their aggressive business practices, and the House Judiciary Committee has announced an unprecedented antitrust probe, promising “a topto-bottom review of the market power held by giant tech platforms”.

In addition, at least two 2020 presidential hopefuls have expressed support for breaking up some of technology’s biggest players amid concerns they have become too powerful.

Experts say breakups are unlikely in the short term, and Rep. David Cicilline, the Rhode Island Democrat who leads the subcommittee pursuing the House investigation, called such measures a “last resort”. But even without that, Facebook, Google, Amazon and Apple could face new restrictions on their power.

Google, Facebook, Amazon and Apple declined to comment on the investigations.

Here’s a look at the cases that could be brought against them and what their defenses could be.

FACEBOOK With 2.4 billion users, $56bn in revenue last year and a name that’s synonymous with social media, Facebook is certainly big.

But is it an illegal, competition-crushing monopoly?

Federal regulators are already investigating the company’s privacy practices.

But the antitrust question has been rumbling in the background, with critics calling for spinning off WhatsApp and Instagram.

Democratic presidential candidate Elizabeth Warren has called for breaking up Big Tech, as has Chris Hughes, a co-founder of Facebook. Former Vice President Joe Biden has said that he is open to the idea .

Critics believe a breakup is needed because Facebook can squash competitors either by buying them or using its enormous resources to mimic services they offer — as it’s done with Snapchat, for example.

Facebook executives have been calling broadly for regulation, though nothing that comes close to breaking it up. In a recent statement, the company’s vice president of global affairs, Nick Clegg, said Facebook “accepts that with success comes accountability. But you don’t enforce accountability by calling for the breakup of a successful American company”.

CEO Mark Zuckerberg has called for “new rules” in four areas: harmful content, election integrity, privacy and data portability.

Facebook has also stressed that it has competitors in messaging and digital communication, including Apple and Google.

New York University law professor Eleanor Fox said that because antitrust law focuses on companies that raise prices too much, and Facebook is free, it will be a tough to break up the business. And Facebook

Is ‘Big Tech’ too big? A look at growing antitrust scrutiny SAN FRANCISCO Associated Press

commands less than a quarter of worldwide digital advertising, well behind Google.

Warren, however, has laid out plans for legislation that targets companies with more than $25bn of annual revenue. It would limit their ability to expand and force parts of their business to operate as separate entities.

GOOGLE As Google becomes a leading mail provider, search engine and advertising platform, federal regulators are starting to wonder if it needs to be knocked down a bit.

Critics say Google’s dominance in search has allowed it to squash rivals — notably because Google can show its own products above competitors’ or feature its own ads prominently.

Google might argue it doesn’t have an obligation to do business with its rivals at all — an argument that other companies have made when faced with similar challenges, said Sandeep Vaheesan, legal director for Open Markets Institute,

which advocates breaking up monopolies.

It’s Google’s technology and Google can use it as it wishes, goes one line of reasoning.

Google has also faced scrutiny over the practices it uses to get its search and other products featured on smartphones. Some say Google imposes too many self-serving regulations on smartphone makers who use Google’s Android operating system.

But Google might simply argue that Android users like Google products and want them on their phones.

Under existing laws, it is difficult to make the case that Google has monopoly power, “even though I think a lot of people think it’s really obvious,” Fox said.

APPLE Since its opening in 2008, Apple’s pioneering app store has given customers instant access to services that entertain, enlighten and engage. But it’s also a place where Apple controls all the access and sets commission rates for subscriptions

Wednesday, June 5, 2019, PAGE 7 and other purchases made through the apps.

If it opens an investigation, the Justice Department is most likely to focus on whether Apple is abusing its veto and pricing power to throttle and gouge its competition. The commissions it collects are also the subject of a consumer lawsuit that the Supreme Court recently cleared to proceed.

App makers periodically allege that they are blocked because Apple wants people to use its own services. In a recent example, several makers of apps for managing the amount of time kids can use their iPhones say they were kicked out of the store not long after Apple introduced its own screenmanagement controls.

Apple says it typically blocks only apps with buggy software or features that invade users’ privacy. The company likens its rules to merchants deciding what products to carry. Apple also says its store includes apps that compete with its own products, including Google Maps and Google’s Chrome browser.

Also under criticism is the 30 percent cut that Apple pockets on new subscription sign-ups during the first year and a 15 percent slice for renewals. The app store is expected to generate about $16bn in revenue this year.

Apple says the commissions cover costs for running the app store, including hiring people to review apps.

Antitrust regulators could try to impose requirements that lower Apple’s commissions or, in a worstcase scenario, force it to spin off the app store. The latter option, though, could hurt consumers by making iPhones and other Apple products more cumbersome to use.

Wedbush Securities analyst Daniel Ives likened a breakup to “a complex and almost impossible Siamese twin operation”.

AMAZON From an online bookseller, Amazon has grown into a gigantic e-commerce player with its tentacles in everything from web hosting to streaming video to groceries.

The European Union’s antitrust chief has been conducting an earlystage probe into whether Amazon is using data to gain an edge on third-party merchants, who are both its customers and rivals.

Italy has been looking into whether Amazon abused its dominance by offering preferential treatment to companies that used Amazon’s own deliverymanagement services.

Cicilline, the congressman, said Amazon has identified bestselling products elsewhere, rolled out

replicas under its own brand and then steered customers to its own products over those of its rivals.

When Warren tweeted in April that big tech companies like Amazon should be broken up, Amazon tweeted back: “Walmart is much larger.”

Amazon CEO and founder Jeff Bezos made a similar case in a recent letter to shareholders: “Amazon today remains a small player in global retail.

We represent a low singledigit percentage of the retail market, and there are much larger retailers in every country where we operate.

And that’s largely because nearly 90% of retail remains offline, in brick and mortar stores.”

But Amazon does dominate online. Market research company eMarketer expects Amazon to account for 52% of all online sales in the US this year, up from 48% last year.

NOTICE OF DISSOLUTION NOTICE IS HEREBY GIVEN as follows: a)

Elnera Enterprise Ltd. is in voluntary dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000.

b)

The dissolution of said company commenced on the 28th day of May 2019 when the Articles of Dissolution were submitted to and registered by the Registrar General.

c)

The Liquidator of said company is Carmen Reimann, PO Box SP-63146, Nassau, Bahamas.

d)

All persons having claims against the abovenamed Company are required to send their names, addresses and particulars of their debts or claims to the Liquidator before June 29, 2019

Dated this 31st day of May 2019 ______________________ Carmen Reimann Liquidator

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED The Public is hereby advised that I, SHALENA GEORGETTE RUSSEL of Murphy Town, Abaco, Bahamas Mother of JERMAINE CLEVON EDGECOMBE intends to change her name to JERMAINE CLEVON WOODSIDE. 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-792, Nassau, New Providence, The Bahamas no later than thirty (30) days after the date of the publication of this notice.

FORM B Notice of Intended Marriage (Section 7(3))

Muxima Holdings Ltd. Company No. 1763139 (in voluntary liquidation)

NOTICE is hereby given, in accordance with the BVI Business Companies Act, 2004 that the above named company, is in voluntary liquidation. The voluntary liquidation commenced on May 30, 2019 and Michelle Patrice Bain of No. 40 Mongomery Avenue, PO Box N-7902, Nassau, Bahamas is the voluntary liquidator.

Dated: June 4, 2019

FORM B Notice of Intended Marriage (Section 7(3))

FORM B Notice of Intended Marriage (Section 7(3))

PAGE 8, Wednesday, June 5, 2019

THE TRIBUNE

Powell hints Fed will cut rates if needed over trade wars WASHINGTON Associated Press

CHAIRMAN Jerome Powell said yesterday that the Federal Reserve is prepared to respond if it decides the Trump administration’s trade conflicts are threatening the US economy. Investors read his remarks as a signal that the Fed will likely cut interest rates later this year.

Powell’s remarks helped drive up stock prices, with the Dow Jones Industrial

FEDERAL Reserve Chairman Jerome Powell.

Average ending the day up more than 500 points, or two percent.

Speaking at a Fed conference in Chicago, Powell said, “We are closely monitoring the implications of these developments for the US economic outlook and, as always, we will act as appropriate to sustain the expansion.”

Powell didn’t explicitly say what the Fed would do.

But expectations are rising that the Fed will cut rates at least once and possibly two

or more times before year’s end, in part because of the consequences of the trade war. There is concern that the US expansion, which next month will become the longest on record, could face growing risks of a recession as retaliatory tariffs weaken US exports.

Investors in the futures market are pricing in a 59 percent chance of a Fed rate cut by July.

Also yesterday, Vice Chairman Richard Clarida declined to speculate on the possibility of a Fed rate cut that soon but said in an interview with CNBC, “We will put in policies that need to be in place” to sustain the economic expansion.

James Bullard, head of the Fed’s St Louis bank, had said on Monday that a Fed rate cut “may be warranted soon”, in part because potential risks from trade uncertainties.

Trump has imposed farreaching tariffs on imports on China, which has retaliated with tariffs of its own on US exports. He has also threatened to impose an escalating series of tariffs against Mexico unless it stops a flow of migrants from Central America into the US. At a news conference in London, President Donald Trump reiterated that his import taxes on Mexican goods will take effect next week at a level of 5%, rising to a peak of 25% until Mexico complies with his demand to cut off Central America migration.

The Fed conference in Chicago is focused on how the central bank can make its rate policy more effective at a time when inflation has remained chronically below the Fed’s target level. In his remarks, Powell called persistently low inflation the “pre-eminent monetary policy challenge of our

time”, because it limits the Fed’s ability to support the economy by cutting rates.

Powell said that in its first-ever public review of its operations, the Fed will aim to improve its rate strategies, the tools it uses to achieve its objectives and the way it communicates its actions to the public.

He called persistently low inflation the “pre-eminent monetary policy challenge of our time”, because it limits the Fed’s ability to support the economy by cutting rates. Next month, the economic expansion will become the longest period of uninterrupted growth on record, surpassing the tenyear expansion of the 1990s.

The Fed manages interest rates to achieve two goals: maximum employment and stable prices. Even though unemployment has reached a 50-year low of 3.6 percent, inflation has failed to rise to the Fed’s target of 2%. The Fed regards that target as the optimal level for annual price increases and becomes concerned if inflation stray too far above two percent or too far below it.

But the Fed’s efforts to achieve the two percent target have so far failed even though it kept its key policy rate at a record low near zero for seven years. It began gradually increasing its policy rate in 2015.

After raising rates nine times, it declared in January that it would be “patient” in raising rates further. The policy rate at the moment is in a range of just 2.25 percent to 2.5 percent, meaning that the Fed has less room than usual to cut rates to stimulate growth.

What the central bank can do to manage the economy when inflation is so low and rates have little maneuvering room will be a key topic at the two-day conference.