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FRIDAY, JUNE 11, 2021

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‘Stop crying as if we are the victim’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

HE Bahamas “must stop crying as if we are the victim” and instead “aggressively” reform its tax system to compete under a 15 percent minimum global corporate levy, a top banker argued yesterday. Gowon Bowe, Fidelity Bank (Bahamas) chief executive, told Tribune Business this nation cannot afford to adopt “a last of the Mohicans” stance in trying to defend its “no tax” platform “at all costs” against the reforms unveiled by the Group of Seven (G-7) finance ministers

GOWON BOWE

• Bahamas can’t defend no tax ‘at all costs’ • Ex-DPM urges: View G-7 as ‘glass half full’ • Opens digital tax, business licence reform at the weekend. Asserting that tax reform is required regardless of external pressures, given that the government’s income has consistently failed to cover its spending in every year since Independence, he said The Bahamas’ response to the G-7 initiative “lacked maturity” because it focused on sovereign independence rather than economic independence. While The Bahamas can craft its own laws and implement them as it sees fit, Mr

Bowe said this nation and its export industries - especially financial services - have to abide by global rules such as a minimum corporate tax to “compete and survive in the global arena”. Failing to comply could leave The Bahamas “dead on arrival”, he warned, adding that it would be “very myopic” to hang on to the country’s “no tax” platform while failing to realise it is harming “the very business we are seeking to attract” - such as meetings and conventions held

by large multinationals in this nation. Mr Bowe also voiced disappointment that the prime minister’s budget communication had only focused on the Bahamian financial industry’s contraction over the past two decades, adding that it suggested this nation is simply “throwing its hands up” as opposed to crafting a strategy for how the sector can compete and thrive in a corporate tax environment. Acknowledging that the

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Port’s Freeport revival ‘all take and no give’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Grand Bahama Port Authority-commissioned report on Freeport’s revival is “all take and no give” and is “highly unlikely” to be supported by the government, an attorney blasted yesterday. Carey Leonard, a former GBPA in-house counsel, told Tribune Business that the Vision 2025 document, which was released earlier this week by the Revitalization and Economic Expansion of Freeport (REEF) committee, gave no indication that Freeport’s quasi-governmental authority and its owners were prepared to put “meaningful skin in the game” in return for all the concessions being sought from the government.

• Attorney: Report ‘highly unlikely’ to get govt backing • No sign owners putting ‘meaningful skin in game’ • Argues report effort to ‘deflect criticism’ from GBPA

CAREY LEONARD Now an attorney at Callenders & Co, Mr Leonard argued that the report was an effort to “deflect” criticism away from the Hayward and St George families over responsibility for Freeport’s decline

Tax breaks renewal ‘definition of insanity’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

AN ex-deputy prime minister yesterday likened the blanket five-year renewal of all tax breaks under the City of Nassau Revitalisation Act as akin to “the definition of insanity”. K Peter Turnquest, in his Budget debate contribution in the House of Assembly, effectively charged that the government is doing the same thing over and over again, yet expecting different results, even though there is no evidence that legislation first enacted by

the last Ingraham administration more than one decade ago is having the desired effect. The government, in the multiple Bills accompanying the 2021-2022 budget, is planning to extend the Act and all its investment incentives for a further five-year period until end-June 2026, but Mr Turnquest called for a more nuanced approach that ties these tax breaks to action and timelines by downtown and Bay Street landlords to improve their properties.

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Housing Act reforms ‘invite legal challenge’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

AN ex-deputy prime minister yesterday warned that legal reforms to facilitate Dr Hubert Minnis’ “young professionals” real estate developments are “discriminatory” and “invite legal challenge”. K Peter Turnquest, also the former finance minister, told the House of Assembly that changes to the Access to Affordable Homes Act “go against the principle of fairness and equal treatment under the law” as it empowers

the responsible Cabinet minister to determine which home buyers are granted tax breaks in government-developed subdivisions that possess all the necessary infrastructure. The incentives on offer include customs duty and excise tax exemptions on all construction materials and furniture and appliances for the home provided it is constructed within two years of the lot’s purchase, and a fiveyear real property tax break. Yet the minister’s “discretion in approving applications” for concessions,

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and the failure to live up to their governance and developmental obligations - especially as there was no indication the Port Authority is planning major investments to upgrade the city’s infrastructure or other improvements. Contrasting the present situation with what happened in 1955 at the Hawksbill Creek Agreement’s signing, Mr Leonard said: “I think, bottom line, I do not see any major commitment by the Port Authority itself to do major investments as was done in 1955 but they’re asking the government for all sorts of things.

“The major difference between now and then is that, in 1955, the GBPA committed to do an awful lot. Now, it’s not keeping up with its own obligations. Wallace Groves went out to raise money so that the Port Authority would meet its obligations to develop Freeport. “The current owners are not doing anything to raise money as Wallace Groves did to improve Grand Bahama, and contrary to what the report says the roads are deteriorating rapidly.” Mr Leonard cited the failure to make Grand

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EX-DPM: Collect all taxes ‘without fear or favour’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

AN ex-deputy prime minister yesterday urged the government to develop a US Internal Revenue Servicestyle mindset to collect taxes “without fear or favour” while slamming proposed new compliance measures. K Peter Turnquest, who was also finance minister until late 2020, told the House of Assembly that proposals to leave business tenants “on the hook” for real property tax debts owed by their landlords “cannot be right and what is intended” by the Minnis administration in legal reforms accompanying the 2021-2022 budget. Calling on the government to abandon “political expediency” in all tax compliance/enforcement efforts, Mr Turnquest hit out at reforms to the Business Licence Act which will legally mandate that businesses renting space in offices, retail malls and other commercial properties must pay their rent directly to the Department of Inland Revenue - and not their landlord - if the latter is in arrears on real property tax payments. Business tenants that fail to comply will be denied the renewal of their annual business licence, and the former deputy prime minister blasted the legislative changes for interfering in the contractual relationship between landlords and tenants. He also argued that the move was unnecessary given that the government already possesses multiple means to collect real property arrears. “This Bill likewise seems to cut against the fairness principle, and like mortgage

K PETER TURNQUEST or rental relief, seeks to interfere in the tenant/landlord relationship. The Bill seems to pass the responsibility for real property tax delinquency to the tenant versus the actual owner of the rental property, under penalty of law,” Mr Turnquest said. “This cannot be right and what is intended.... “I recommend a much more palatable collection effort for real property tax, and a legal one, and not one that causes a tenant, a licensee, to be on the hook for the debts of someone else.” He instead urged the government to enforce the existing real property tax collection laws “with certainty of timelines and commitment”, acknowledging that a mindset and cultural change was required to achieve this. “The reason the IRS (US Internal Revenue Service) is so successful and feared is because they commit to definite timelines and certainty, and they act without fear and favour,” Mr Turnquest asserted. “We have to build that into our culture. It goes against political expediency and wanting to help people, but revenue management and collection has to be uppermost. “It has to be all of this. The only way to get fairness and equity and collect

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PAGE 2, Friday, June 11, 2021

THE TRIBUNE

BUDGETING TO FACE FUTURE CHALLENGES

In the first of a four-part series, Hubert edwards warns that The Bahamas’ economic and fiscal crisis has likely reached a ‘tipping point’ due to COVID-19.

BY HUBERT EDWARDS

OR a number of years I have had the privilege of commenting publicly (on radio and television, or in print) on the national budget, the financial services industry and matters relating to the wider economy. During that time, whatever the prevailing circumstances, there was always some tension involved in opining. However, I have always held to a set of important principles. These are to be honest, fair and balanced, and not to be afraid of others disagreeing with you. The focus must be on what is in the best interests of The Bahamas. I remember sitting on panels with brilliant local minds and concluding that the then-budget was “transitional”, “we are at a crossroads”, “has some good things but doesn’t go far enough”, or is “lacking in growth strategy”. Often, the final outturn of these budgets made each of the conclusions a falsity or understatement. The tension I feel this year comes from trying to reconcile my instinctive conclusion, which is that this budget has been presented at a “tipping point” for the country, with what was presented. The main challenge is trying to ensure the positives in the budget are not consumed by any perceived inadequacies in responding to the broader implications of the current environment. Why settle on the idea of a “tipping point”? The term is defined as a point at which a series of small changes or incidents becomes significant enough to cause a larger,

more important disruption. Over a number of years, the county’s economic system has faced critical challenges that tend to become more pronounced during downturns or disasters. From an increasing vulnerability to natural disasters, chronic anemic growth, structural fiscal deficits and low productivity to a now-high debt concentration, there are enough elements moving in a negative direction to change the economic wellbeing of The Bahamas and its citizens in very fundamental ways. The decisions made, or not taken, at this point could have serious repercussions in the future. You may quickly retort that is normal. That is generally the outcome of decisions made actively or by default. However, let us avail ourselves of a slightly different perspective. Malcolm Gladwell, in his book, The Tipping Point, defines the term as “the moment of critical mass, the threshold, the boiling point”. Gladwell’s definition has a level of authoritative simplicity and seduction that is very hard to ignore. Critical mass, boiling point, threshold. In the context of the Bahamian economy, anyone who is paying attention can readily identify any number of economic and fiscal factors that have crystallised, or are quickly crystallising,

into such a “critical mass”. The near $10bn national debt springs readily to mind. The casual observer can identify a number of matters that can easily be seen, without much argument, to have reached the “threshold”. Examples include spending on social services; the deterioration of underlying infrastructure such as hospitals; the size of the public service and its attendant financial obligation. Finally, it does not require an overactive mind to contemplate that there are matters that have reached, or are speedily approaching, a “boiling point”. These include interest payments on the government’s debt, the adequacy of the existing tax regime, and the perception that Bahamian investors are treated differently compared to their foreign counterparts. In analysing the budget, how does one remain fair to the current administration, and highlight the positives, while commenting objectively on those areas that are challenging? I believe you do so by having an unbending desire for The Bahamas to win, divorcing yourself, as best as possible, from all other agendas and focusing on what is in the best interests of the people. In other words, do not focus on winning arguments, knowing very well that when we argue only to win, rather than to build consensus and capacity for improvement, everyone loses. It is my firm position that The Bahamas is at a tipping point, and the first order of business must be a fundamental shift in the narrative. While the Budget is generally set within the confines of one year, it does convey and highlight policies and programmes to be

implemented with a multiyear impact. The idea of a tipping point causes an analyst to ask: Will this inure for the long-term? Does this solve, going forward, the challenges seem? It is for this reason that a careful assessment of the Budget will produce many points of tension. It may also explain the nature of commentary heard since the budget’s presentation. In strict terms, a tipping point is not necessarily negative. Consider what seems to be an increase in entrepreneurship at the micro, small and medium-sized enterprise (MSME) level. Think about what opportunities lie in getting a handle on the ease of doing business. Contemplate how the current environment calls for significant shifts in behaviour, and a march to productivity and meritocracy. Appreciate, for a moment, the valuable insights that this particular moment is creating, essentially laying bare the economy’s soft underbelly. This article attempts to widen this discussion, highlighting the positives and, in a balanced manner, drawing attention to opportunities and potential headwinds. The new budget cycle In my previous article, written before the reading of the budget’s release, I outlined areas that I thought would be given due consideration. On review, most of the points highlighted were addressed in some manner. As stated then, there are many concerns. These arise because we are in the midst of a pandemic involving significant economic loss - a 20 percent drop in gross domestic product (GDP), high levels of unemployment, and historic and increasing levels of debt. Further matters include uncertainty around the economic recovery, though this is being positively impacted by vaccination campaigns underway both in The Bahamas and our major tourist markets. These concerns extend to potential headwinds for the financial services industry against the backdrop of an embattled

tourism sector. One overarching problem that the Budget has to begin is to solve what I termed the “debt trap”. This can only be fixed, without significantly hurting the economy and The Bahamas, by generating sustained economic growth. The national debt can be lowered. However, without increased revenue this would require austerity measures that could be very painful for Bahamians. I had called for the budget to address the following: • Increased taxes. • A clear programme of debt management with attendant impact on areas such as capital spending. • Increased support for the social sector to address rising unemployment and the displacement of workers. • Continued support for the private sector, especially MSMEs, through the Small Business Development Centre (SBDC). • Support for stateowned enterprises (SOEs), which will likely not rise to the level of need, but given their current challenges such funding must be contemplated. • Continued curtailment of capital spending when considered against longerterm historical levels, with the possibility of an uptick to facilitate new capital projects either already announced, foreshadowed or “brand new”. • Increased debt and interest payments, these being a natural outturn from the current position and future borrowing needs. • Some pronouncement on the way forward for Bahamas Power & Light (BPL) • Programmes designed to boost employment either directly or through the private sector. With the exception of BPL, each of these areas were addressed. The big question is whether the treatments announced adequately align with the realities on the ground and create a real foundation for future sustainable recovery. Has the budget positioned The Bahamas for economic growth and development;

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STORM READINESS FORUM CABLE Bahamas said its business solutions team has staged the first of two Hurricane Preparedness webinars to discuss how to secure companies for the upcoming hurricane season. The BISX-listed communications provider, in a statement, said it partnered with The Bahamas Met Office, National Emergency Management Agency (NEMA), Sunshine Insurance, ThinkOn and Aliv to give attendees insight into how they can best protect their businesses. “It is vital that preparations for hurricane season are made as early as possible,” said Gayle Moncur, deputy director for NEMA.

“Some best practices include monitoring local radio and TV stations for updates, having an emergency kit prepared with supplies and understanding weather terminology to effectively assess the progress of the storms. These are all very important in helping to stay safe and protected.” Charnette Thompson, Cable Bahamas’ vice-president of business solutions, added: “As The Bahamas is frequently impacted by hurricanes, business owners must continually review their buildings, systems, people and processes, and take the time to document plans and consider contingencies that might impact restoration of

the creation of a facilitative environment; an ability to create wealth for citizens; and generational transformational across the country’s social, public and private sectors The “Mathematics” of the budget Government revenue comes from several sources, including taxes or selling assets, with any shortfall against expenditure funded by borrowing. When we understand this it becomes easier to better appreciate the “mathematical machinations” that may go into the budget. For the mathematically inclined, the statement “A is a function of B” is readily understood. Whatever “B” can become is dependent on what “A” is. Revenue is a function of taxes and sale of assets. Revenue, all things being equal, will improve with economic growth. Where there is limited revenue you either raise taxes, cut expenses or increase borrowings. If you are unable to reduce expenditure, debt will climb. Note that in each instance at least one factor has to be capable of change. I believe that a significant part of The Bahamas’ problem is the unwillingness to accept there are some things that must change. This unwillingness, I think, is born out of the understanding that the changes will be disruptive. I argue, though, that the country will consistently lag behind its optimal potential until the changes are acknowledged and sound treatments applied. We cannot hold taxes low, expenditure high, growth low, capital spending low, maintain an exchange rate peg and not expect that the balancing factor, debt, will continue to increase. You can analyse, rationalise or provide alternatives, but unless one makes an argument that there is wholesale wastage of government revenue, and can prove that and fix it, tinkering will never solve the current problems and we should never assume that the fixes are easy. To be continued...... their operations. “These strategies, along with cloud back-up or virtualised systems that support fixed (office-based) and mobile (remote workers), can help to reduce downtime and optimize business operations. No business, regardless of its size or location, is immune to a disaster and business restoration challenges in the aftermath. “This is why Cable Bahamas business solutions specialises in understanding these complexities, and in turn offers scalable corporate landline, Internet, mobile/ LTE, push-to-talk and cloud platforms to support business continuity plans to suit any business model.” A second hurricane preparedness webinar is scheduled for Thursday, June 17, lasting from 12 noon to 1pm.

THE TRIBUNE

Friday, June 11, 2021, PAGE 3

PROMOTION BOARD CHIEF: RISING AIRFARES ‘BIG DEAL’

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net THE Nassau/Paradise Island Promotion Board’s president yesterday conceded that rising airfares are a “big deal” for The Bahamas’ tourism recovery, with cruise line home porting adding a “complex factor into the mix”. Fred Lounsberry told Tribune Business The Bahamas will have to take whatever action it can to mitigate the impact of increased access costs for the destination until airlines add more flights to their schedule, and it becomes clear whether cruise line home porting will continue long-term. Pointing out that The Bahamas is not alone in experiencing a sharp spike in airline ticket prices, Mr Lounsberry said: “We have been monitoring Montego Bay, Aruba and Provo, Turks and Caicos, and the airfares are high

everywhere and they change frequently. “But, quite frankly, when we looked at it last week, Nassau was lower than those three. The prices are high across the Caribbean, but that doesn’t mean it’s good for everybody. It’s just that Nassau is not unique in this.” Mr Lounsberry said that airlift will steadily increase throughout the year as the tourism industry recovers, and more persons start travelling as COVID-19 vaccinations continue to roll-out across The Bahamas’ key source markets such as the US. He added that Southwest Airlines will resume daily flights from Fort Lauderdale to The Bahamas starting on October 7, and will also initiate service from Baltimore and Washington DC on Saturdays and Sundays only beginning on September 9. American Airlines will start flying from Austin, Texas, to Nassau four times

a week starting on November 2, 2021. “Low airfares definitely do spur visitors to come, and airfares have certainly gone up. No question about it. What we are seeing, though, is the airlines are adding flights judiciously,” Mr Lounsberry said. “I agree the home porting has put a more complex factor into the mix. Saturday is usually our biggest arrival day, particularly in the summer months, and the Saturday departure of the cruise line does put a lot more pressure on seats for that day along with the day before and the day after.” Muna Issa, managing director of SuperClubs Breezes, said the rise in airfares is “a matter of supply and demand”. Agreeing with Mr Lounsberry that home porting is one factor putting pressure on airfares, she added: “Demand will be up with the cruise ships home porting in Nassau. The airline seats will be occupied by cruise ship

passengers coming in for one night prior to sailing, and one night after sailing.” Mr Lounsberry and Ms Issa were responding to comments made by Robert Sands, the Bahamas Hotel and Tourism Association’s (BHTA) president, on fears that the rising price of airline tickets could be a deterrent to travelling to the country. Ms Issa added: “If supply is not increased to satisfy the long-term stay guests, then pricing will naturally increase. Hopefully the Tourism Ministry can get increased airlift into The Bahamas so airline pricing can be reduced.” Nicholas Pinder, general manager of Born Free Fishing Charters, said: “Anything that drives the price up would be a deterrent, but I think people want to travel and I think they’ll pay for the most part, but obviously the cheaper the airline ticket, the more travel will be promoted.

“I think they will get the airlift calibrated properly to support the home porting initiative. I just hope the hotels will benefit from it because I have noticed that they have the departure times of the cruise ships at 8pm, which is geared for people to fly right in and go right on to the cruise ship.” Unsure whether hotels will benefit from the home porting initiative, Mr Pinder added: “I’m not sure how hotels and the tourism industry are supposed to benefit from this. I think it will be a little benefit but not as much as people are making it out to be. “If the cruise ships leave at 8:30pm and the tourists just fly in off of a plane, they have time to take a cab and then head to the ship. I guess they will spend a couple of dollars on the way and the cab drivers will get some money, so I guess that is OK.” As for airline tickets, Mr Pinder said it all depends on when the flight is booked.

He added that a last-minute ticket will result in a “ridiculous” price, further arguing: “Airline tickets have always been like that. One day you will get a price for $350 from Miami, and another you will get a much higher price. I have flown out of Miami within the last two months for $350.” Murray Sweeting, operations manager for Tru Bahamian Food Tour, said he has not seen an exorbitant increase in airline tickets and neither have any of his guests complained about it. Agreeing that it would be a deterrent to travelling to The Bahamas, Mr Sweeting said: “ I think that, globally, we’re seeing changes in supply, and it’s basically based on supply and demand. I think it could negatively affect our tourism in The Bahamas. I think we are going to see quite a lot of that and not just on airline tickets, but food as well, which will definitely affect us.”

EX-DPM ARGUES REVENUE TARGETS ‘A BIT AGGRESSIVE’ By NEIL HARTNELL and YOURI KEMP Tribune Business Reporters A FORMER deputy prime minister yesterday argued that the budget’s revenue projections “appear a bit aggressive” as he urged the government to carefully manage its $252m recurrent spending rise. K Peter Turnquest, who was also the immediate past finance minister, told the House of Assembly during the mid-year budget debate that “a serious cash flow crisis” could develop if the Minnis administration’s 2021-2022 spending moved too far ahead of its revenue earnings. Backing the government’s decision to “hold the line” for at least one more year, and not impose new and/or increased taxes given the uncertainty and fragility of post-COVID recovery, Mr Turnquest said the 2021-2022 fiscal numbers were also in line with those laid out in last December’s Fiscal Strategy Report. “As I give that commendation, however, I am compelled to also acknowledge the inherent risk in the revenue numbers projected, which honestly appear to be a bit aggressive without the benefit of the detailed updated assumptions behind the numbers,” he warned. “I have no doubt that we will experience a significant rebound this fiscal year; the question is simply one of timing and will it balance out over the course of the fiscal year such that the borrowing plan is sustainable and government will meet its recurrent obligations as they become due.” While voicing “zero doubt” that the government will continue to make timely repayments on its debts as they come due, Mr Turnquest’s comments add further weight to concerns already expressed by another former finance minister, Zhivargo Laing, and others that the budget’s revenue projections are too optimistic and aggressive. The $2.245bn revenue target for 2021-2022 is a near $600m increase on the intake projected for the current fiscal year, representing a 35.6 percent increase. The danger for The Bahamas is that, if the government’s revenue under-performs, the deficit could blow-out far beyond the forecast $951.8m and push the national debt far beyond the end-June 2022 $10.386bn projection. Still, Mr Turnquest defended the government’s revenue projections by saying: “Let me note that the plan is based upon a set of assumptions, some of which we have in our control, and others we have absolutely no control over. “It always tickles me to hear the opposition speak about missed revenue targets, as if any government here or abroad has control over whether people will spend money on whether events will happen or not.

“The assumptions upon which the revenue plan is built are based upon historical trends, current developments and planned initiatives, all of which are variable and could be negatively or positively impacted by unexpected events as we’ve seen over the last two years. It’s why, up until recently, during the examination of the heads, revenue was rarely questioned in detail because governments cannot significantly control it.” With the government’s recurrent or fixed-cost spending set to jump to $2.826bn in the upcoming year, something the government has blamed on a $100m increase in debt servicing costs and a rise on social welfare spending due to COVID-19, Mr Turnquest also warned the government to guard against the temptation to loosen expenditure controls ahead of the imminent general election. “Overall, the planned increase in expenditure of $252m must be managed extremely carefully, and a tight rein kept to ensure these expenditures do not get too far ahead of planned revenue otherwise a serious cash flow crisis can develop requiring emergency borrowing, which will not be optimal,” he said. Calling on all Cabinet ministers to “exercise prudent restraint”, Mr Turnquest said: “I hold no illusion that this will be easy for you as you enter the

heat of the election season, but you must take a nationalistic and long term view as the debts we accumulate today will be yours hopefully to clear tomorrow...” He described that as “a massive task”. And, given that the Ministry of Works’ capital budget has been cut by $42m year-over-year, with a $143m or 28 percent decrease in the government’s overall capital expenditure to 2019-2020 levels in the upcoming year, Mr Turnquest questioned whether this matched the prime minister’s budget speech pledge to invest in and upgrade public infrastructure. Chester Cooper, the Opposition’s finance spokesman and deputy leader, previously branded the government’s revenue projections as “unbelievable” and unrealistic. “The core of the budget is the revenue estimates,” he told the House of Assembly earlier. “In this area it is painfully obvious that something is wrong. The Minnis administration is either incompetent or intentionally trying too hard to make these numbers work, or both. This administration believes that it would collect 18.3 percent of GDP or $2.24 billion this fiscal year after falling woefully short of this year’s modest target of $1.76 billion. “It believes that this can be accomplished despite granting perhaps an additional $100m in new

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concessions. This is simply unbelievable. It is more likely that revenue would be around 16.5 percent of GDP or $1.78 billion; not as bad as the current year but about $400m short of the predicted target.

“Looking at the revenue details it is easy to see the areas where there would have the greatest revenue shortfalls: VAT, real property tax and customs. These are the areas where the cancelled Revenue

Enhancement Unit was making the most progress. Though all budgets are rooted in hope in terms of forecasting revenue, there is too much trafficking in hope on the revenue side.”

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CAREER OPPORTUNITIES University of The Bahamas invites suitably qualified candidates to submit applications for the following positions: Associate Vice President of Development and Grants responsible for establishing, cultivating and sustaining relationships with individual, corporate and foundation prospects, managing a portfolio of prospects and working in close partnership with university leadership, academic units and programmes to develop and implement strategies to secure funding in alignment with the university’s strategic plan. The Associate Vice President participates as an active member of the Institutional Advancement team, serves on and leads the Major Gifts Team and Grants Team, and reports directly to the Vice President of Institutional Advancement and Alumni Affairs. Further details are outlined in the position announcement available at https://www. ub.edu.bs/about-us/career-opportunities/ . Executive Director, Climate Change Adaptation and Resilience Research Centre responsible for providing strategic direction for the centre and leading research, policy engagement, education and outreach in addition to managing a team of researchers. The successful candidate will be expected to build a strong, externally funded research programme and develop collaborations and synergistic activities at UB and with regional and international partners. The Executive Director will lead, contribute to and ensure fulfillment of awarded research grants and consultancies; effectively represent and promote the CCARR Centre nationally, regionally and internationally; and lead research teams over multiple projects. Further details are outlined in the position announcement available at https://www.ub.edu.bs/about-us/career-opportunities/. Director of University Police/Security responsible for developing and recommending systems, policies and procedures expected to control access to and from the grounds and buildings of The University and its satellite properties. The Director will also develop and implement systems and procedures pertaining to safety measures for students, faculty and staff; supervise all security and university police personnel; and enforce strict safety practices in accordance with the university’s safety standards. Further details area outlined in the position announcement available at https://www.ub.edu.bs/ about-us/career-opportunities/. Assistant Director, Office of Information Technology with supervisory responsibility for computer technicians at the UB-North Campus in Grand Bahama as well as oversight for team planning. The Assistant Director is also responsible for support and maintenance of mobile devices, desktop and laptop computers, printers, scanners and multifunction devices, software, network components (LAN, WAN, Wi-Fi), audiovisual and lighting equipment, tools and accessories; establishing policies and procedures necessary for the department to provide stable enterprise mission-critical services; and serving as project manager for multiple projects which require collaboration. Further details are available at https://www.ub.edu.bs/about-us/ career-opportunities/ . Interested applicants should submit the following information electronically to hrapply@ub.edu.bs by the deadline of Wednesday 23rd June 2021: • A letter of interest (highlighting work experience and accomplishments relevant to the position); • Current Curriculum Vitae/Resume; • Copies of all academic qualifications with transcripts (original transcripts will be required upon employment), certificates; and • At least three (3) written professional references.

PAGE 4, Friday, June 11, 2021

THE TRIBUNE

‘Stop crying as if we are the victim’ FROM PAGE ONE

G-7 announcement “doesn’t immediately create a problem” for The Bahamas, given that it goes after multinational corporations that have never figured prominently in this nation’s focus on private wealth management, Mr Bowe nevertheless argued that the country cannot ignore the progress made towards a uniform global corporate tax rate. The Fidelity Bank (Bahamas) chief reiterated that The Bahamas should act now and get ahead of the inevitable in its own interests, especially when it came to domestic taxation reform. “What is is demonstrating is when we see an inch being taken it’s going to go a mile,” Mr Bowe told Tribune Business. “We have to stop being reactive; we have to be proactive. “The Bahamas needs tax reform urgently because it is not earning enough revenue to cover the government’s

deficits. We’ve run deficits since Independence, and our revenue-to-GDP ratio has been between 15-18 percent, when the industrialised countries are at 25 percent. We know the system is regressive, and imposes a greater burden on the less fortunate while their wealthier counterparts pay proportionately less of their income in taxes.... “If our system is not working, why are we waiting until the world moves to a mandatory system instead of moving into this space, meeting the minimum standard, delivering a higher service and being first movers as opposed to being the Last of the Mohicans, sitting on ‘no corporate tax’ and ‘no individual income tax’, and dying by our pledge to maintain it [the existing tax system] at all costs?” K Peter Turnquest, exdeputy prime minister and former finance minister, yesterday echoed Mr Bowe by arguing that The Bahamas

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to Bahamians that are consumed in this nation. Mr Turnquest, meanwhile, said the G-7 move also presented an opportunity for The Bahamas to reform its business licence fee and way it taxes companies. He added: “The second pillar, which envisions a minimum global corporate income tax of 15 percent, is also an opportunity to modernise our existing corporate tax structure, which has been criticised for many years as unfair locally and internationally, and an impediment to business. “With such a globally accepted minimum, The Bahamas could put itself in the game to attract large multinational corporations that are currently domiciled afar due to tax treaties. We are close, enjoy dollar parity, stability and a common business language. Why not The Bahamas? “Mr Speaker, I know this is a touchy subject for some of us so I will leave it there, but I encourage everyone to see the glass half full and reimagine the opportunities these developments can potentially bring, instead of the potential losses, which invariably will come anyway from blacklisting if we do nothing.” While there was no cause for Bahamian alarm, as the details of the G-7 proposal have yet to be worked out, Mr Turnquest added: “Make no mistake, however, that no matter how the final agreement ends up it is likely to have some impact

on The Bahamas and our international taxing obligations, if not domestic. “For those who continue to hold their heads in the sand believing that we will be able to continue as a non-taxing jurisdiction, I would only remind them that bank secrecy was also at one time an untouchable subject that has gone the way of the dodo bird. “We need to adapt and to develop strategies to get ahead of these developments, and exploit the opportunities that can be derived as a cooperating and globally compliant jurisdiction.” Mr Bowe, meanwhile, said that while some may argue that the government should focus on collecting all arrears and existing taxes, experience had shown - especially the $600m-plus owed in real property tax - that existing levies were inefficient, hard to recover and difficult to monetise. “Our initial response to the G-7 announcement lacked maturity because it focused on national sovereignty when what we should be talking about is economic independence, not sovereign independence,” Mr Bowe added. “We’re a member of a global community. Sovereignty allows us to craft our own laws and way we wish to implement them, but it doesn’t take away our responsibility to be a player and survive in the global arena. We can choose not to [comply with a minimum global corporate tax], but

would be dead on arrival as an open economy. “We are very myopic if we cannot see these tax rules ending up hurting business we are trying to attract. We have to make sure we understand the rules of engagement and make sure we fit them.” In particular, Mr Bowe said the G-7’s 15 percent proposal could impact those multinationals who hold meetings and conventions in The Bahamas, as these entities typically enjoy tax breaks and exemptions back home for doing so. Pointing out that The Bahamas lacks the “strength and size” to fight the G-7 on this issue, he added that it was vital this nation set out its philosophy and vision for the Bahamian financial services industry moving forward. “The budget sadly referred to financial services contraction, and gave the impression we should almost throw our hands up,” Mr Bowe told Tribune Business. “We need to be more aggressive. If we wait for something to be imposed on us we will throw our hands up, but if we are more deliberate and strategic and prepare ourselves to take advantage of the rules as drafted, we can compete in that space.” He added that The Bahamas needed to establish better links with G-7 member nations “so that we understand what is coming down the pipeline as opposed to catching the crab as it comes out the pipeline”.

EX-DPM: Collect all taxes ‘without fear or favour’

firm is one of The Bahamas’ largest commercial property managers, previously told Tribune Business that the Minnis administration was likely to create “a whole bunch of mortgage defaults” and other problems if it follows through with plans unveiled yesterday to tackle real property tax deadbeats. “Most commercial property leases are structured on a net lease basis, net of the rent and common area maintenance (CAM) charge,” he explained. “What takes place is that included in the CAM is the tenant’s portion of the real property. “In all fairness, if the government wanted to go after the tenant, the tenant should only be responsible for their portion of the rent.... It would only be fair to take that share of the property tax that the tenant is supposed to pay to the landlord, not the whole thing [rental payment]. “Grabbing all the rental income is wrong. Get the tenant to pay the portion of the real property tax that they pay to the landlord, and pay it to the Department of Inland Revenue. There’s a lot of things in play that really cause an issue on this. Who is the government going after

here? Are they going after the tenant, are they going after the landlord, or the rental income to pay a mortgage?” However, Mr Turnquest asserted yesterday: “Mr Speaker, the existing real property tax law gives the chief valuation officer wide powers to collect real property tax or to obtain liens and to satisfy the same in accordance with law. “I contend that the legal ability to collect the real property tax has never been in doubt. What is in doubt, and has been the issue, is the certainty of action and commitment to collect the tax. I’ve experienced it myself and had to fight through some interference to do what is right for the wider majority of taxpayers who fulfill their obligation to the state, without incentive I might add.” Referring to the Tyler Technologies project to update the real property tax roll, which was initiated by the former Christie administration and restarted under the current one, Mr Turnquest said the government had previously been in the position where properties had changed hands multiple times but bills were still being sent to old owners or incorrect addresses.

should view the reformed global tax architecture proposed by the G-7 as “a glass half full” and exploit the potential opportunities that it may create. Reiterating that The Bahamas cannot put its “head in the sand” and hope the 15 percent minimum global corporate tax initiative goes away, he argued that it offered this nation the possibility of asserting taxation rights over digital services provided to locals and residents by foreign providers. “At present all international digital services provided to consumers in The Bahamas are untaxed. If we were to assert our taxing rights over these transactions, it would represent new revenue,” Mr Turnquest told the House of Assembly during the budget debate. “So as not to be too controversial on this matter today, I will not give specific examples of areas that may be subject to such a tax, but consider all of the service providers that provide services to Bahamian entities or consumers delivered in the Bahamas.” The likes of Netflix and Facebook are already charging VAT on services supplied

FROM PAGE ONE what the state is owed.” The former deputy prime minister urged the government to reform the Real Property Tax Act to require mortgage lenders to pay the tax on behalf of borrowers,

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and simply add the sum involved on to the loan, rather than follow through with the business licence proposal. Mr Turnquest said he did not understand why some banks and mortgage lenders were reluctant to agree to this given that real property tax arrears acted as “a first lien” on real estate, and were therefore superior to the loan security they had, thus representing a “real liability” to them. He acknowledged, though, that mortgage lenders were unlikely to want to take on payment of existing real property tax arrears. Bahamian realtors have already voiced misgivings over the proposed Business Licence amendments, but Marlon Johnson, the Ministry of Finance’s acting financial secretary, gave no indication that the government is preparing to change its mind as he pointed to its ability to “garnish” rents to secure tax debts owed. David Morley, whose

THE TRIBUNE

Friday, June 11, 2021, PAGE 5

Port’s Freeport revival ‘all take and no give’

FROM PAGE ONE

Bahama International Airport hurricane-ready pre-Dorian, as storms had frequently impacted the facility since Hurricane Floyd in 1999, as well as rebuild the facility prior to its recent sale to the government, as a prime example of the GBPA failing to meet its obligations. “What the Port Authority is now trying to do is deflect attention from themselves by saying they need everything from government,” Mr Leonard blasted. “I’m saying I think it will be highly unlikely the government will do anything unless they get something in return. What the government is looking to do is protect the Bahamian public, and for there to be benefits to the Bahamian public, as there were majorly in 1955.” Pointing out that the GBPA had now exited

ownership of Grand Bahama’s major airport, along with its electricity provider, he argued that it is also failing to maintain the roads and restore potable water to all residents more than 18 months after Hurricane Dorian’s passage. “Yet the Port Authority wants all sorts of things and concessions given to them. For what?” Mr Leonard queried. “I think it’s a very good public relations exercise deflecting from criticism of the port. They want all give from the government. It’s all take and no give. They need to put some meaningful skin in the game, not just spend a couple million dollars here and a couple of million dollars there. “If the port is showing where tens of millions of dollars are going to be invested, I’d understand the government doing everything it possibly could but there’s nothing concrete in the proposals. I was looking for some benefit to come to the country in return for giving the port these concessions. “It seems to me these proposals will increase

the port’s licence fees but there’s nothing to say the port will invest $500m in maintaining infrastructure and improving facilities. To improve the economy you have to have the best infrastructure you possibly can. The most important item of infrastructure for us was the airport, yet the port Authority failed us. They have failed the people, and now they want ‘give me’.” Multiple “ease of doing business” and other reforms proposed by the REEF committee can only be implemented with government action and consent. These proposals include allowing companies in sectors reserved for Bahamian ownership only “to sell minority stakes in those businesses to foreign equity partners, or joint venture with such partners” should they so wish. The REEF committee argues that doing so will “enhance their access to capital and skills” and “optimise their return on their investments”, while also calling on the government to address “regulatory anomalies”, duplication and overlaps involving itself and

NOTICE

NOTICE is hereby given that JEFFREY JOSEPH, of P.O. Box N1572, Nassau, The 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 11th day of June 2021 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

the GBPA. Arguing that this will bring “clarity and certainty” to areas that have restricted private sector development in Freeport, the proposal calls for real property tax exemptions to be extended to all in the Port area. The REEF committee also calls for the government to repeal provisions in electricity and communications sector legislation, and the Environmental Planning and Protection Act, that give it “conflicting regulatory powers” with those of the GBPA. This conflict has already generated litigation involving the Utilities Regulation and Competition Authority’s (URCA) ability to regulate Grand Bahama Power Company and Cable Bahamas in the Port area, but the committee does not suggest how this should be resolved. It also calls for the government to “reframe transient expatriate workers as valued revenue sources, as opposed to threats to Bahamian jobs. The report called for “reframing transient expatriate workers as valued revenue sources,

as opposed to threats to Bahamian jobs”, along with the introduction of “new immigration regulations and policies that are at least as attractive as those of other options available to investors” if Freeport’s economy is to be revived post-COVID and Hurricane Dorian. It warned that “rival destinations, whose tourism industries have also been decimated, are looking to enhance their efforts to attract expatriates, so Freeport’s offering needs to consider planned new rival inducements, too”. The REEF committee’s proposal calls for businesses in the port area to be permitted to hire expatriate workers “as they deem necessary where Bahamian expertise is not readily available”, with approval decisions taken within five days of completed applications being received. Its proposals call for work permits lasting up to five years to be issued, and made renewable, with fees “competitive” against rival free trade zones in the Caribbean and elsewhere. The work permit holder’s

benefits would be extended to spouses, dependent children up to 25 years old and dependent parents aged 62 years-old and over, giving them “full rights to live, work and study”. The REEF committee also recommended that foreign workers and personnel be allowed to enter Freeport for short-term visits, of a maximum seven days, to work on board foreignflagged vessels without the need for work permits. Other proposals call for the creation of a secure digital Know Your Customer (KYC) vetting system that would “make it significantly easier for customers to open and operate banks accounts”, along with a review of the one percent Customs processing fee “to make Freeport more competitive as a transhipment centre”. The creation of a “onestop shop” agency dedicated to promoting Freeport to international investors, as well as “a transparent and fair customs regime” involving standardised inspections and fees, are other components detailed by the REEF committee.

LEGAL NOTICE

To advertise in The Tribune, contact 502-2394

In Accordance with the Articles and Restrictive Covenants of Via Della Rosa, this is to inform The Owners of Lot numbers: 10, 16, 18, 27, 31, 117, 262, 277, 289 will be auctioned and sold to the highest bidder on Tuesday, June 15th 2021. Please contact the office at 393-7370

NOTICE

NOTICE is hereby given that CATHERENE ANTONETTE WEEKS, of #26B Palmetto Street P.O. Box N9426, Nassau, The 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 11th day of June 2021 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE is hereby given that CHATALIE DELVA, of Mt.Rose Avenue, Clifton Street, Nassau, The 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 11th day of June 2021 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

MARKET REPORT www.bisxbahamas.com

THURSDAY, 10 JUNE 2021

BISX ALL SHARE INDEX:

CHANGE

1970.51

0.45

%CHANGE

YTD

YTD%

0.02 -121.95

-5.83

(242) 323-2330 (242) 323-2320

BISX LISTED & TRADED SECURITIES 52WK HI 5.80 33.95 1.50 2.90 1.78 6.00 6.96 3.60 6.00 4.01 6.16 12.00 2.75 7.50 10.71 9.01 14.60 4.25 8.97 16.00

52WK LOW 3.13 22.65 1.46 1.62 1.44 5.00 6.00 2.70 4.25 2.75 5.00 9.75 2.10 4.90 9.50 8.00 13.00 3.42 8.00 15.20

PREFERENCE SHARES 1.00

1.00

1000.00 1000.00 1000.00 1000.00

1.00 10.00 1.00

1.00 10.00 0.90

SECURITY AML Foods Limited APD Limited Benchmark Bahamas First Holdings Limited Bank of Bahamas Bahamas Property Fund Bahamas Waste Cable Bahamas Commonwealth Brewery Commonwealth Bank Colina Holdings CIBC FirstCaribbean Bank Consolidated Water BDRs Doctor's Hospital Emera Incorporated Famguard Fidelity Bank Bahamas Limited Focol Finco J. S. Johnson

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

LAST CLOSE 5.79 39.95 1.50 2.61 1.44 6.00 6.96 3.53 4.27 2.89 5.95 9.75 2.52 7.35 11.52 9.01 14.00 3.99 8.19 15.50

CLOSE 5.79 39.95 1.50 2.61 1.44 6.00 6.96 3.53 4.25 2.89 5.95 9.75 2.53 7.50 11.57 9.01 14.00 3.99 8.19 15.50

1.00 1000.00 1000.00 1000.00 1000.00 1.00 10.00 1.00

SYMBOL FBB22 BFHB

LAST SALE 100.00 100.00

CLOSE 100.00 100.00

CHANGE 0.00 0.00

BAH29 BG0107 BG0207 BG0130 BG0230 BG0307 BG0330 BG0407 BSBGRS900283 BSBGRS980244 BSBGR1292394 BSBGR1341407 BSBGR1341506

107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.14 100.46 94.15 100.00 100.00

107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.14 100.46 100.00 100.00 100.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 5.85 0.00 0.00

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

BFHP CAB6 CAB8 CAB9 CAB10 CHLA FBBA FCLB

CORPORATE DEBT - (percentage pricing) 52WK HI 100.00 100.00

52WK LOW 100.00 100.00

115.92 100.00 100.00 100.00 100.00 100.00 100.00 102.00 100.14 100.46 100.00 100.00 100.00

104.79 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.14 100.46 100.00 100.00 100.00

52WK HI 2.43 4.44 2.16 202.18 190.86 1.69 1.81 1.78 1.16 8.58 10.26 7.35 14.59 12.84 10.31 10.00 10.43 14.89

52WK LOW 2.11 3.30 1.68 164.74 116.70 1.67 1.73 1.75 1.03 6.41 7.62 5.66 8.65 10.54 9.57 9.88 8.45 11.20

SECURITY Fidelity Bank (Note 22 Series B+) Bahamas First Holdings Limited

BAHAMAS GOVERNMENT STOCK - (percentage pricing)

MUTUAL FUNDS

MARKET TERMS

Bahamas Note 6.95 (2029) BGS: 2014-12-7Y BGS: 2015-1-7Y BGS: 2014-12-30Y BGS: 2015-1-30Y BGS: 2015-6-7Y BGS: 2015-6-30Y BGS: 2015-10-7Y BGRS FL BGRS90028 BGRS FL BGRS98024 BGRS FX BGR129239 BGRS FX BGR134140 BGRS FX BGR134150

FUND CFAL Bond Fund CFAL Balanced Fund CFAL Money Market Fund CFAL Global Bond Fund CFAL Global Equity Fund Leno Financial Conservative Fund Leno Financial Aggressive Fund Leno Financial Balanced Fund Leno Financial Global 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

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

CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 (0.02) 0.00 0.00 0.00 0.01 0.15 0.05 0.00 0.00 0.00 0.00 0.00

VOLUME 115

1,000

1,500

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

EPS$ 0.239 0.932 0.000 0.110 0.070 1.760 0.369 -0.438 0.140 0.184 0.449 0.722 0.102 0.467 0.646 0.728 0.816 0.203 0.939 0.631 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

VOLUME

3,000

NAV 2.43 4.44 2.16 202.18 190.86 1.69 1.75 1.76 1.03 8.58 10.14 7.35 14.59 12.64 9.99 N/A 10.43 14.89

DIV$ 0.170 1.260 0.020 0.030 0.000 0.000 0.260 0.000 0.000 0.120 0.220 0.720 0.434 0.060 0.328 0.240 0.540 0.120 0.200 0.610 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

P/E 24.2 42.9 N/M N/M N/M N/M 18.9 -8.1 30.4 15.7 13.3 13.5 24.8 16.1 17.9 12.4 17.2 19.7 8.7 24.6

YIELD 2.94% 3.15% 1.33% 1.15% 0.00% 0.00% 3.74% 0.00% 0.00% 4.15% 3.70% 7.38% 17.15% 0.80% 2.83% 2.66% 3.86% 3.01% 2.44% 3.94%

0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

0.00% 0.00% 0.00% 0.00% 0.00% 6.25% 7.00% 6.50%

INTEREST Prime + 1.75% 6.25%

19-Oct-2022 30-Sep-2025

6.95% 4.50% 4.50% 6.25% 6.25% 4.50% 6.25% 4.25% 4.39% 4.28% 5.04% 5.35% 5.69%

20-Nov-2029 15-Dec-2021 30-Jul-2022 15-Dec-2044 30-Jul-2045 26-Jun-2022 26-Jun-2045 15-Oct-2022 10-Dec-2028 26-Jul-2024 15-Apr-2039 17-Jan-2040 17-Jan-1950

YTD% 12 MTH% 1.47% 4.26% 0.20% 0.87% 0.95% 2.82% 0.14% 5.02% 3.25% 31.13% 0.91% 0.68% -2.55% -3.02% -0.27% -0.27% -2.20% -7.62% 1.14% 4.22% 1.09% 3.04% 1.01% 4.65% 4.93% 42.27% -1.56% 0.80% -0.60% -4.90% N/A N/A 3.00% 25.60% 7.90% 48.70%

MATURITY

NAV Date

30-Apr-2021 30-Apr-2021 30-Apr-2021 31-Mar-2021 31-Mar-2021 30-Apr-2021 30-Apr-2021 30-Apr-2021 30-Apr-2021 28-Mar-2021 28-Mar-2021 28-Mar-2021 28-Mar-2021 28-Mar-2021 28-Mar-2021 31-Mar-2021 31-Mar-2021 31-Mar-2021

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

THE TRIBUNE

Friday, June 11, 2021, PAGE 7

Tax breaks renewal ‘definition of insanity’

FROM PAGE ONE

“This Revitalisation Act has yet to produce a positive tangible result on Bay Street, particularly east of East Street. I remind us of the definition of insanity. Truthfully, without an incentive and a concession tied to an action, nothing will happen seemingly, and these properties will be passed from generation to generation in their current condition, which is unhelpful to the city of Nassau,” Mr Turnquest, also the former finance minister, argued. “I propose for consideration a carrot and stick

approach. Grant the extension of concessions for one year, two maximum if you feel so pressed upon, and if development happens extend it for the full five years proposed on an application basis. If it does not happen in a year or two, the concession falls away and the full tax becomes due retroactive to July 1, 2021. “With New Providence responsible for approximately 85 percent of GDP today, how do we continue to afford this without economic activity to compensate for it?” The City of Nassau Revitalisation Act offers import duty, Excise Tax, VAT and real property tax incentives to property owners in the downtown area.

Charles Klonaris, the Downtown Nassau Partnership’s (DNP) co-chair recently hailed the five-year tax break extension for giving investors certainty and helping to “distinguish” Nassau’s city from other areas. He added that it was “such a huge benefit” to reducing the payback period for when entrepreneurs will see a return on their property upgrades. “We’ve been working on that for some time, and it’s key they [the government] keep extending it,” he argued. “The government has been very accommodating with the revitalisation of the city. It’s so critical. It encourages investment. We welcome that. It’s such a huge benefit.

“When we do something, whether we get the traffic or not, it’s still a very expensive proposition to renovate, upgrade or do any building. You need a minimum of five years to at least see the benefits of your investment. It [the Act] shortens the return period, which is really so critical. If you don’t have that, you will be looking at a minimum of ten to 12 years depending on how successful the traffic flow is.” Mr Klonaris said himself and his brothers would not have constructed their multi-million dollar plaza, Elizabeth on Bay, at the corner of Elizabeth and Bay Streets, without the various tax breaks offered by an Act that was intended to incentivise property owners

to enhance, repair and upgrade their properties to improve the appearance of downtown Bay Street and surrounding areas. Elsewhere, Mr Turnquest voiced misgivings that changes to the VAT Act, intended to capture rental income generated by vacation rental properties as well as commissions, “seems to possibly create some mischief with export services such as those performed at BORCO and Statoil. “It may also bring the cruise lines within its ambit in respect to on board sales while in port. I would be grateful for the legal interpretation of this concern so that I might be disabused of my view,” he added. Blending activities at Statoil and

THE WEATHER REPORT

5-Day Forecast

TODAY

ORLANDO

High: 94° F/34° C Low: 75° F/24° C

TAMPA

SATURDAY

SUNDAY

MONDAY

TUESDAY

Pleasant with sun‑ shine

Mainly clear

Sunny and beautiful

Beautiful with partial sunshine

Variable clouds, a stray t‑storm

Some sun with a stray thunderstorm

High: 87°

Low: 76°

High: 87° Low: 77°

High: 87° Low: 78°

High: 88° Low: 77°

AccuWeather RealFeel

97° F

83° F

98°-84° F

97°-86° F

98°-85° F

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.

almanac

ABACO

High: 84° F/29° C Low: 78° F/26° C

6‑12 knots

High: 91° F/33° C Low: 77° F/25° C

6‑12 knots

FT. LAUDERDALE

FREEPORT

High: 89° F/32° C Low: 78° F/26° C

W S

WEST PALM BEACH

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TONIGHT

High: 91° F/33° C Low: 80° F/27° C

High: 86° F/30° C Low: 77° F/25° C

MIAMI

High: 90° F/32° C Low: 78° F/26° C

4‑8 knots

KEY WEST

High: 88° F/31° C Low: 81° F/27° C

High: 87° F/31° C Low: 76° F/25° C

High: 84° F/29° C Low: 77° F/25° C

uV inDex toDay

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

tiDes For nassau High

Ht.(ft.)

Low

Ht.(ft.)

Today

9:12 a.m. 9:36 p.m.

2.2 2.9

3:28 a.m. 3:10 p.m.

0.2 0.1

Saturday

9:52 a.m. 10:14 p.m.

2.2 2.9

4:08 a.m. 3:49 p.m.

0.2 0.1

Sunday

10:32 a.m. 10:54 p.m.

2.1 2.9

4:47 a.m. 4:29 p.m.

0.3 0.2

Monday

11:15 a.m. 11:36 p.m.

2.2 2.9

5:28 a.m. 5:12 p.m.

0.3 0.3

Tuesday

12:02 p.m. ‑‑‑‑‑

2.2 ‑‑‑‑‑

6:11 a.m. 6:00 p.m.

0.3 0.4

Wednesday 12:21 a.m. 12:54 p.m.

2.8 2.3

6:56 a.m. 6:55 p.m.

0.3 0.5

Thursday

2.8 2.4

7:43 a.m. 7:56 p.m.

0.3 0.5

1:11 a.m. 1:50 p.m.

sun anD moon Sunrise Sunset

6:20 a.m. 8:00 p.m.

Moonrise Moonset

7:08 a.m. 9:19 p.m.

First

Full

Last

New

Jun. 17

Jun. 24

Jul. 1

Jul. 9

CAT ISLAND

High: 84° F/29° C Low: 77° F/25° C

6‑12 knots

7‑14 knots Shown is today’s weather. Temperatures are today’s highs and tonight’s lows.

Statistics are for Nassau through 2 p.m. yesterday Temperature High ................................................... 88° F/31° C Low .................................................... 73° F/23° C Normal high ....................................... 87° F/30° C Normal low ........................................ 74° F/23° C Last year’s high ................................. 89° F/31° C Last year’s low ................................... 79° F/26° C Precipitation As of 2 p.m. yesterday ................................. 0.00” Year to date ................................................. 5.53” Normal year to date ................................... 10.19”

ELEUTHERA

NASSAU

BORCO have previously caused VAT-related controversy over whether they are an export activity, and should thus be zero-rated, or if this is a “value-added” activity in the domestic economy. Mr Turnquest also warned that reforms to the Excise Tax Act, as currently written, could be interpreted as allowing existing small and medium-sized enterprises (SMEs) with annual sales under $5m “I do not think this was the intention of the government, which as I understand it was a one-time concession for new start-ups. If I am accurate, I believe an amendment is necessary,” he added. “I encourage the minister to look at that as it could be a real problem.”

ANDROS

SAN SALVADOR

GREAT EXUMA

High: 84° F/29° C Low: 77° F/25° C

High: 84° F/29° C Low: 78° F/26° C

High: 85° F/29° C Low: 77° F/25° C

W S

LONG ISLAND

tracking map

High: 84° F/29° C Low: 77° F/25° C

6‑12 knots

MAYAGUANA High: 84° F/29° C Low: 78° F/26° C

Shown is today’s weather. Temperatures

CROOKED ISLAND / ACKLINS

are today’s highs and tonight’s lows.

RAGGED ISLAND High: 84° F/29° C Low: 78° F/26° C

High: 84° F/29° C Low: 77° F/25° C

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

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: Saturday: Today: Saturday: Today: Saturday: Today: Saturday: Today: Saturday: Today: Saturday: Today: Saturday: Today: Saturday: Today: Saturday: Today: Saturday: Today: Saturday: Today: Saturday: Today: Saturday:

WINDS S at 6‑12 Knots SW at 8‑16 Knots SE at 6‑12 Knots S at 4‑8 Knots ESE at 7‑14 Knots S at 4‑8 Knots E at 8‑16 Knots ESE at 6‑12 Knots SE at 6‑12 Knots S at 6‑12 Knots SSW at 6‑12 Knots WSW at 7‑14 Knots SE at 7‑14 Knots SSE at 4‑8 Knots SE at 8‑16 Knots ESE at 4‑8 Knots ESE at 8‑16 Knots SE at 6‑12 Knots ESE at 7‑14 Knots SE at 7‑14 Knots SE at 6‑12 Knots S at 4‑8 Knots SE at 8‑16 Knots ESE at 6‑12 Knots SE at 6‑12 Knots S at 4‑8 Knots

WAVES 1‑3 Feet 1‑3 Feet 0‑1 Feet 0‑1 Feet 1‑3 Feet 1‑3 Feet 2‑3 Feet 1‑3 Feet 2‑3 Feet 1‑3 Feet 1‑2 Feet 1‑2 Feet 0‑2 Feet 0‑1 Feet 1‑3 Feet 1‑2 Feet 1‑3 Feet 1‑3 Feet 2‑3 Feet 2‑3 Feet 1‑2 Feet 0‑1 Feet 1‑2 Feet 1‑2 Feet 2‑3 Feet 2‑3 Feet

VISIBILITY 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles

WATER TEMPS. 82° F 82° F 83° F 83° F 82° F 82° F 82° F 83° F 84° F 84° F 82° F 83° F 82° F 83° F 82° F 83° F 82° F 82° F 81° F 82° F 81° F 82° F 82° F 82° F 83° F 84° F

PAGE 8, Friday, June 11, 2021

Housing Act reforms ‘invite legal challenge’ FROM PAGE ONE

Mr Turnquest warned, could result in one neighbour building their home at a much-reduced cost while another has to incur significantly higher prices because they did not get the exemptions. Arguing that all Bahamian taxpayers have equal rights, he added: “This Bill is extremely worrisome to me as it is inherently discriminatory on many fronts, though well intentioned. Every citizen of the Bahamas is an equal tax payer and has an inalienable right to enjoy equal benefits provided by the state. “This Bill, however, seeks to carve out benefit for a specific group to the ultimate exclusion of other groups equally as disenfranchised when it comes to the affordability of land and construction.” Describing the legislation, which accompanies the 2021-2022 budget as “Nassau centric”, Mr Turnquest said it “proposes to use taxpayer money to grant concession to one group over another”. He added: “I’m not sure how we make up the revenue foregone, but what if a young professional is unlucky in receiving one

of these lots? Why should they be penalised in the compounding of insult to injury of having to pay full price for their lots, as well as full customs duty and property taxes, while across the fence their neighbour is fully exempted? Why should I or you be held to a different standard in equal circumstances? “Again, I get the laudable intent, but in my mind this Bill goes against the principle of fairness and equal treatment under the law and invites a court challenge. I recommend finding another way.” Mr Turnquest’s comments thus challenge, and raise question marks, over what has been a central initiative unveiled by the prime minister in recent months. Dr Minnis also pledged that the government’s efforts to make home ownership more affordable for Bahamians will not be a “one-off endeavour” that lacks a coherent strategy in debate over the much-trumpeted 83-acre housing development on Prospect Ridge that is targeted at “young professionals”. The prime minister said at the time: “My government has a policy of empowerment through

THE TRIBUNE affordable land ownership. The announcement of the community for young professionals is not the first land development of my government. “For example, we are in the process of another type of development in Carmichael, where the lot prices started at $15,000 for lots valued at over $70,000. There will be further offerings at various different price levels. All will be in well-designed subdivisions with world-class infrastructure and suitable amenities. “Our land empowerment initiatives are not oneoff endeavours. We have already identified a number of tracts of crown land in New Providence and the Family Islands where we will provide affordable land to Bahamians at various levels. Our intention is for thousands of Bahamian first-time homeowners to benefit from our vision for wealth-creation, ownership and empowerment. This is how we expand the middle class.” Dr Minnis provided no further details on this strategy, and it is unclear whether future developments will benefit from the same tax breaks and other incentives being offered to first-time home buyers who will purchase the “approximately 250 lots” for single family, town homes and duplexes that will be created in the 83-acres Prospect Ridge development.