By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
BAHAMIAN investors will be able to purchase an ownership stake in a new joint venture entity holding several Out Island water plants via its upcoming share offering, it was revealed yesterday.
Leon Lundy, minister of state with responsibility for the Water & Sewerage Corporation, told Tribune Business that WSCDesalCo will be formed to hold seven reverse osmosis plants set to be acquired from Aqua Design (Bahamas) via negotiations set to be completed by early July at latest.
And he confirmed that WSCDesalCo will be structured
as a private-public partnership (PPP), jointly owned by the Government and private Bahamian investors, who will be given an opportunity to buy into
‘Adverse’ land ownership not prevented in Freeport
By NEIL HARTNELL Tribune Business Editor
THE Bahamian judicial system’s highest court yesterday ruled that acquiring real estate in Freeport by adverse possession is not prevented by the city’s founding treaty, related laws or regulations.
The UK-based Privy Council, in dismissing an appeal over a land dispute, also found that there is nothing in the Hawksbill Creek Agreement, statute law or regulation that bars the Limitation Act, which sets the cut-off deadline by which legal actions must be launched, from applying in Freeport.
It reached this conclusion in rejecting Raymond Meadows’ appeal over an eight-year land dispute with Keith and Dorothea Rolle involving a parcel of land located on Lunar Boulevard in the city’s Britannia area. The former had challenged whether the Hawksbill Creek Acts, the Building and Sanitary Code, and Freeport’s 2014 town planning and development regulations
impact the Limitation Act’s functionality.
And Mr Meadows had also questioned whether the restrictive covenants, contained in both his and the couple’s conveyances confirming their respective land titles and ownership, represented “a contractual waiver of the accrual of rights by adverse possession under the Limitation Act’.
The Rolles, on December 3, 2003, had acquired 28,000 square feet of ‘tract 19A’ on Lunar Boulevard. This was part of a larger 214.02-acre parcel, and the couple proceeded to construct a six-unit commercial complex on their property, complete with a ten-foot wide roadway and six-foot high wire fence.
A certificate of occupancy was issued by the Grand Bahama Port Authority (GBPA) on March 18, 2005. All this occurred before Mr Meadows acquired his 1.305 acres, located immediately to the south of the Rolles’ property, on February 1, 2017. Upon completing his purchase, a survey of the land purported to show that the Rolles’ road and fence
the holding company through a “share offering”.
Mr Lundy told this newspaper that full approvals for WSCDesalCo’s creation are being issued by Cabinet “right now”, and it should be created and operational before year-end 2025. With details still being finalised, he was unable to provide the timing of any share offering, the likely price that will be offered to Bahamians, the collective size of the public and government’s stakes, or their respective values.
Addressing the House of Assembly during the 2025-2026 Budget debate, the minister disclosed: “We’ve taken significant strides in ensuring the sustainability of our water resources, including the acquisition of seven
desalination plants in Eleuthera, Exuma, San Salvador and Inagua.
“These plants will be transferred to the WSCDesalCo, a new public-private utility company that will be owned by Bahamians and the state. This is an historic move that will keep profits in The Bahamas and reinvest them in the nation’s people and environment.”
Speaking subsequently to Tribune Business, Mr Lundy confirmed that the seven waterproducing plants referred to were those owned by Aqua Design (Bahamas), with whom the Water & Sewerage Corporation and the Government have had an increasingly acrimonious relationship that has spilled over into several Supreme Court battles in recent years.
Confirming that talks to acquire the plants from Aqua Design (Bahamas) are ongoing, the minister said: “We’re in negotiations, and it’s coming down to the final weeks of negotiations. We should have the remainder completed in
Fears safety reforms set to drive visiting boaters away
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
FEARS have been voiced that new safety measures proposed with the 2025-2026 Budget could prove a deterrent to small boats/yachts and drive them away from visiting The Bahamas.
Maritime industry stakeholders warned Port Department officials that planned amendments to the Port Authorities Act, which impose a blanket requirement on all foreign-flagged vessels to be equipped with a fullyfunctioning automatic identification system (AIS) that is always turned on while in The Bahamas, do not match US and international laws and standards.
In particular, they pointed out that the US Coastguard only requires vessels 65 feet or longer to be equipped with an AIS. As a result, smaller yachts and boats - such as the many 35-foot Boston Whalers or centre consoles that frequently visit The Bahamas, and especially northern islands such as Bimini - would now be required to invest in outfitting themselves with this
system if the reforms pass as is. Apart from calls to change the Port Authorities (Amendment) Bill 2025, so that it aligns with US and global mandates by tying the installation and operation of an AIS system to a vessel’s length, maritime industry participants also suggested the language needs to be clearer to prevent definition discrepancies and
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
THE Bahamian financial services industry’s economic impact “remains subdued”, the Central Bank revealed yesterday, with Bahamian banking jobs falling in 2024 while expatriate numbers increased.
The industry regulator, in its annual assessment of the sector’s contribution to the Bahamian economy, said that while its overall spending rose “modestly” last year its near to medium-term outlook “remains mixed” due to ongoing international regulatory pressures plus other developments restricting business activity
over which this nation has no control.
Offering a tepid forecast for a sector long-branded as the “second pillar” of the Bahamian economy, and contributing 15 percent to the country’s annual gross domestic product (GDP) or output, the Central Bank said:
“During 2024, indications are that expenditures tracking the financial sector’s contribution to the Bahamian economy rose modestly.
“However, the sector’s overall activities remained subdued against a continuing backdrop of global regulatory changes and other externalities, which
interpretation differences from afflicting the sector.
Port Department officials were informed that the US ‘65 feet and over’ requirement only applies to commercial vessels, and “most of the boats coming to The Bahamas that are over 65 feet” do not fall into this category and are classified as ‘private’. However, The Bahamas in contrast treats those vessels that are chartering as “commercial” - directly contradicting their classification in the US.
The concerns relate specifically to the Bill’s clause seven, which seeks to introduce a new section 40B into the Port Authorities Act that will “impose the duty on all foreign vessels in Bahamian waters to utilise an automated identification system at all times and the penalty of $1,000 for persons who do not comply”.
The clause itself mandates that “every foreign vessel that is in Bahamian waters shall at all times be equipped with an
By NEIL HARTNELL
THE Bahamas’ national debt fell back close to the $12bn mark at end-March 2025, it was revealed yesterday, amid suggestions that the Government had refinanced around $700m of its existing bonds.
Sir Franklyn Wilson, the Arawak Homes and Sunshine Holdings chairman, told Tribune Business he had been informed by Wall Street contacts that The Bahamas had enjoyed “a good day” on the international markets after its week-long offer to repurchase up to $2.2bn of its outstanding bonds - spread across six issues - in exchange for cash drew strong investor interest.
Disclosing that information he had received suggested the offer was “oversubscribed”, he added: “This is a very significant development for the country. When Wall Street talks about you like this, this is a different thing. This is no time for petty partisan politics.
“The real key to this is the level of confidence. The Government keeps doing things. We have to get beyond this ‘junk bond’ status, and today is a step in the right direction. This is a significant day for the country, a significant day.” Neither Michael Halkitis, minister of economic affairs, nor Simon Wilson, the Ministry of Finance’s financial secretary, responded to Tribune Business calls and
LEON LUNDY
BISX NOW HOME TO $15.5BN SECURITIES ON 25TH BIRTHDAY
THE Bahamas Interna-
tional Securities Exchange (BISX) marked its 25th anniversary last month by noting it has evolved into the home for 327 securities worth a collective $15.5bn.
The exchange, which saw the first securities trade conducted via its electronic platform in May 2000, said in a statement that its birth has helped to fuel business growth, empower Bahamian investors and modernise access to capital.
Adding that it was founded to provide a regulated and transparent marketplace for securities trading, BISX said it has helped companies such as FOCOL, Cable Bahamas and Commonwealth Bank raise capital to expand their operations. Its 327 listed
securities include ordinary shares from 20 domestic companies, as well as preference shares and bonds, with a combined value of $15.5bn.
“Being part of this journey from the very first trade to where we are today has been both humbling and inspiring,” said Keith Davies, BISX’s chief executive, who has been with it since its inception. “Having seen first-hand how access to capital can transform Bahamian businesses, families and futures, our mission remains rooted in empowering our economy through innovative financial solutions and inclusivity.”
Andrew Strachan, BISX’s chairman, added: “This milestone is a reflection of our commitment
to building a strong and transparent capital market. Through innovation, strategic partnerships and a growing emphasis on education, BISX continues to play a leading role in shaping the financial future of The Bahamas.”
BISX said its emergence has helped to strengthen regulatory standards and investor protections within the Bahamian capital market. By working closely with the Securities Commission of The Bahamas and other stakeholders, it added that it has helped improve market transparency and align this nation with international practices, boosting investor confidence and the country’s competitiveness.
Airline unveils North Eleuthera expansion amid
TROPIC Ocean Airways yesterday unveiled the launch of scheduled flights to North Eleuthera on June 20 amid “a clear gap in the market” caused by Silver Airways’ demise.
The private carrier, in a statement, said its new route between Fort Lauderdale and North Eleuthera will operate three times per week and also provide travellers with a connection to Harbour Island, Governor’s Harbour and Spanish Wells.
“We’ve had our eye on North Eleuthera for quite some time,” said Rob Ceravolo, Tropic Ocean Airways’ chief executive.
“With a clear gap in the market, this is the perfect time to introduce a service our customers have been requesting for years. Whether flying scheduled or private charter, we’re excited to offer a solution that blends convenience, flexibility and the hightouch experience Tropic is known for.”
While this is a route previously operated by Silver Airways, the move by Tropic Ocean Airways will not entirely replace the airlift capacity offered by the former’s 48 and 70-seater ATR turboprop planes. The best, and quickest, fit for replacing the seats lost with Silver Airways’ demise remains Bahamasair in the short-term.
Tropic Ocean Airways already offers private charter flights directly to Harbour Island, landing its amphibious aircraft in
front of Valentine’s Resort & Marina, and bypassing North Eleuthera entirely.
In response to increased demand, it is also expanding capacity on its Fort Lauderdale to Bimini route, which currently operates seven days a week, as well as Fort Lauderdale to Marsh Harbour, which operates three days per week.
The carrier added that it also offers on-demand private charters throughout The Bahamas, the Florida Key, and the north-east US.
‘gap in market’
Mall at Marathon to be two-day job fair venue
A TWO-DAY job fair will be held from June 20-21 at Marathon Mall’s Centre Court in a bid to connect employment seekers with opportunities across several industries.
Jobreef, the organiser, said in a statement issued yesterday that the event will run from 10am to 3pm on both Friday and Saturday. Among the companies in attendance will be Commonwealth Brewery, Fusion Superplex, Lowe’s Wholesale Drug Agencies, the John Bull Group of Companies, Gilgan Company and Synergy Bahamas.
It added that attendees are encouraged to bring
their resumes, as several companies will be conducting on-the-spot interviews with the potential for same-day hiring. Jobreef said the event is not only
about finding a job, but also helping people make valuable career connections. It encouraged persons to follow its social media in the lead-up to the event.
FROM L to R: Holland Grant, BISX’s chief operating officer; Jeno Jean-Smith, chief information and technology officer; Keith Davies, BISX chief executive; Elude Sturrup, chief marketing and public relations officer.
Reduction in borrowing for new hospital by $22m
BY ANNELIA NIXON
THE China ExportImport Bank will build and finance 70 percent of New Providence’s new hospital with an updated total borrowing sum of $268m, the health minister revealed yesterday. With a $22m reduction in borrowing costs, Dr Michael Darville yesterday said the decrease was due to the decision to replace “the coated steel structure with reinforced concrete”. He added that the deal consists of a 20-year loan package with two percent interest. While the China ExportImport Bank will take on 70 percent of the financing, the Bahamian government will fund the remaining 30 “either in the local financial markets or international markets”. Dr Darville said he hopes to break ground by the end of July and that
the details should be finalised soon.
“The latest negotiation financial terms for the new provident hospital is as follows,” Dr Michael Darville said. The total sum borrowed will be $268m, $22m less from the $290m initially projected.
Dr Darville said: “The loan will be a 20-year loan package at two percent interest, inclusive of a fiveyear grace period. Over the next two months, after discussions with the Ministry
of Finance, we have presented a slightly different approach to the new hospital financing arrangement with the Chinese ExIm Bank.The Chinese ExIm Bank will be responsible for 70 percent of the financing project and to build the mega structure. The other 30 percent will be funded by the government of The Bahamas, either in the local financial markets or international markets.”
Dr Darville said the final details will be completed “shortly”, before the end of July, and he looked forward to breaking ground. He added: “The labour component at that time will be fully disclosed to the Bahamian people. It will be disclosed in this place and in the public domain.”
Dr Darville also spoke on progress made on other healthcare infrastructure throughout The Bahamas, saying “over a half a billion dollars have already been allocated in just four years in office”. He said the
expansion for the accident emergency department at the Princess Margaret Hospital is “90 percent completed and scheduled to be fully operational by the end of July”. The tender process for the PMH Legacy ward, including the eye ward, eye theatre, the kitchen, the operating theatre, floors, furnishing and medical equipment for the accident emergency department in both Nassau and Freeport will soon be completed “and the funding is in the $75m,” he added. Dr Darvile spoke on the Rand Memorial Hospital noting that the renovations to the morgue facility, oncall quarters for doctors, and the upgrade of medical infrastructure are 95 percent completed. He addressed the mould situation at the hospital stating that the mould remediation exercise units to the east and west of the facility have been completed and will “go back in service in a few weeks”.
MSC ‘accelerating’ Bimini sea arrivals
By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net
CHUCK Weech, operations manager at MSC’s Ocean Cay said he believe the island has played a “huge role” in accelerating the sea arrivals to Bimini.
Speaking to Tribune Business, Mr Weech said the private island’s over 1m annual visitors “complements” overall Bimini arrivals, without overburdening the island or its natural resources.
“Ocean Cay is complementing Bimini arrivals, without overburdening Bimini. A lot of people don’t realise that we are a part of the Bimini chain, but we are and we are averaging about 1m guests a year, so that is
really contributing to and driving those numbers,” said Mr Weech. During his budget contribution last week, Minister of Tourism Investments and Aviation, Chester Cooper revealed Bimini saw a 29.7 percent increase in air and sea arrivals over the first four month of the year, but saw an 11.5 percent reduction in air arrivals, which Mr Cooper contributed to the ongoing airport renovation.
“Bimini, which began accelerating cruise visitors only recently in 2022, saw a massive 29.7 percent increase in total arrivals this year. That’s an extraordinary 152.1 percent increase from 2019. While air arrivals to Bimini declined by 11.5 percent this year, this is largely a reflection of
BPL projects ‘could beat 2030 renewables goal’
BY ANNELIA NIXON Tribune Business Reporter anixon@tribunemedia.net
PUBLIC-PRIVATE
partnerships (PPAs) in the works could mean BPL is producing 33 percent of the national target of renewable energy by 2030 - above the target of 30 percent.
“The PPAs that have been signed—or are nearing execution—include utilityscale solar projects [that] are expected to be completed during the second half of 2026,” Energy Minister JoBeth Coleby-Davis said. “These projects, delivered under the New Energy Era, will play a critical role in accelerating The Bahamas’ transition to renewable energy. Building on our current seven percent renewable contribution, their completion is projected to bring us to approximately 33 percent, surpassing the national target of 30 percent by 2030. This strategy not only reflects our strong commitment to clean energy but also preserves room for additional residential and commercial solar adoption, supporting a balanced and inclusive approach to longterm energy sustainability.”
Ms Coleby-Davis noted the Blueprint for Change, saying one of the goals set for BPL was to “Ensure reliable access to affordable and sustainable energy while reducing dependence on fossil fuels, recommit The Bahamas to achieving a minimum of 30 percent renewable energy generation by 2030.”
Ms Coleby-Davis, referring to the Bahamas Grid Company (BGC) work on transmission and distribution (T&D), said: “Our T&D upgrade project has kicked off already, with the first new transmission poles being put into the ground this week, and the work is expected to be finished in the next 12 months.”
“I am pleased to share that Bahamas Grid has made significant progress upgrading and modernising New Providence’s grid,” Ms Coleby-Davis added. “They’ve installed or replaced 237 overhead distribution poles, reconducted more than 107,000 feet of distribution wire, load balanced 58 circuit miles serving over 16,000 customers, and enhanced system reliability by installing 47 IntelliRupters. They have also performed over 2,400 hours of emergency work, expanded underground services, and strengthened the transmission system with 51 new steel poles, 400 feet of fiber, and 2,400 feet of new conductor.
“Second, also in New Providence, are the Power Purchase Agreements for new and cleaner power generation. A power purchase agreement, or PPA, is a contract where we agree to purchase power from a seller at a fixed price for 25 years. For us, it is a win-win value proposition: a PPA is an effective way for The Bahamas to lock in a reliable energy supply at attractive prices for decades to come, and for the power generation developers to have a guaranteed revenue stream in exchange for taking on the risk to develop their power project.
“So far, we have signed 177MW of liquefied natural gas, or LNG power, 60MW of solar power, and 10MWh of battery energy storage for New Providence. LNG has the advantage of being a cleaner and more transportable fuel for our baseload and solar energy as an integrated part of energy portfolio.”
She added:
“Solar along with battery storage systems, enhances grid stability, supports peak shaving, and provides backup power. The timeline for energy generation in New Providence involves
construction during the survey period for the new airport and the temporary cruise berth adjustments,” said Mr Cooper.
Mr Weech, who is also a Bimini native, said the island currently hosts up to seven MSC cruise ships per week carrying about 5,600 passengers and that number can expand with the introduction of the cruise line’s newest ship that can hold up to 6,700 passengers.
He said although the island hosts a large number of guests there is a huge focus on sustainable tourism and conservation.
“We are very sustainable when it comes to the island here, we have a whole process with a technical team. They recycle the all of the glass, aluminum cans, we use solar energy and the
switching 50 percent to LNG during the fourth quarter of 2025, with the remainder by the fourth quarter of 2026... Two out of three solar and storage projects are set to become operational in the second half of 2026, while the third facility will be online in the first quarter of 2027.
“Subsequent plans focus on upgrading energy infrastructure in the family islands to ensure a cleaner and more reliable energy supply. Next on our roadmap are the family islands, where our energy upgrade activities focus on securing a cleaner and more reliable power supply. To this end, we have already signed the following power purchase agreements: 30 MW of LNG, 13MW of solar, and 15MWh of battery storage on Abaco, 21MW of LNG, 8.7MW of solar, and 10MWh of battery storage on Eleuthera, 8.5MW of LNG, 3MW of solar, and 6MWh of battery storage on Great Exuma, 5.2MW of LNG, 1MW of solar, and 1.2MWh of battery storage on Andros, 2.4MW of LNG, 1MW of solar, and 2.5MWh of battery storage on Cat Island, 2.4MW of LNG, 1MW of solar, and 2.5MWh of battery storage on San Salvador, 3.6MW of LNG, 3MW of solar, and 5MWh of battery storage on Long Island,1.5MW of LNG on Great Harbour Cay, 4MW of LNG on Bimini, 1.75MW of LNG on Black Point, 1.25MW on Staniel Cay, 0.25MW of LNG on Farmer’s Cay, 0.5MW of LNG on Moore’s Island, and 6.75MW of LNG on Harbour Island.” Ms Coleby-Davis spoke to power woes on Eleuthera, stating that the
He added: “These units, when purchased, had some structural defects in the water supply, and when we initiated water to the units, some leakage took place within the walls, creating this problem with mould.” He noted the groundbreaking for the Coconut Grove Advanced Health Centre, the new Mangrove Cay clinic and the new healthcare facility in Palmetto Point. He said during the budget cycle, healthcare facilities in Inagua, Exuma, Long Island, and Acklins will continue to see renovations and they will “break ground on a few smaller clinics across the country and complete our renovation of our two mini hospitals”. He added: “Additional funding was secured in the midterm budget by way of the $75m loan facility from CIBC for hospital upgrades to complete phase one of the Freeport Health Campus and begin multi story, concrete structure
papers and plastic items broken down here before they are shipped to the States or Canada,” said Mr Weech
He also revealed MSC plans to expand their offerings of authentic Bahamian products on the island to allow guests to experience the culture and help fuel local businesses.
“The opportunities for local businesses, especially in the future, is going to be very vast. We now going to be tapping more to the Bahamian culture and also
fisheries. There are going to be a lot of options for Bahamian businesses. We really want to get into the culture and showcase more Junkanoo, more of our food, the conch salad, the conch fritters, as well as authentic products. We are really going to push those cultural things you can only get in the Bahamas and excited for that,” said Mr Weech.
Gem Storr, team leader at the retail store that exclusively sells local goods,said guests are very interested in locally made products. She noted that allowing Bahamian artisans to sell their goods on Ocean Cay not only provides an economic
for phase two to begin now to show the hospital in full fledge and the state of the art hospital fully operational before the end of our term in office.
“We are delivering on our promise to build a state of the art Freeport Health Campus. Phase one of that project is expected to be completed by the end of the year.
“In addition the prequalifying bid documents for phase two, inclusive of the multi-storey tower and Water and Sewerage treatment plan will be released by the end of the summer. Following that, we will go out to tender... On completion of this ambitious project, the residents of Grand Bahama will finally have a full hospital with oncology services, transforming healthcare on that island and, by extension, the northern services for years to come.”
benefit, but gives local entrepreneurs worldwide exposure.
“Everything in the store is handmade in the Bahamas. A lot of guests are excited and in awe when they see these products and they want to take things home to show off what they found while in The Bahamas,” said Ms Storr.
“Carrying these products can open a lot of doors for Bahamian entrepreneurs, we have a lot of international entrepreneurs that actually travel on the cruise and they will come and ask who they can speak with to get a hold of these goods.”
DR MICHAEL DARVILLE
JOBETH COLEBY-DAVIS
‘Adverse’ land ownership not prevented in Freeport
were encroaching on his property.
“Mr Meadows therefore formed the view that the area occupied by the paved roadway and fence was an encroachment on the Meadows property. At a meeting on March 3, 2017, Mr Meadows informed Mr Rolle of the survey report and of the Rolles’ encroachment on the Meadows property,” the Privy Council said.
Mr Meadows, via his attorney, wrote to the couple on May 16, 2017, demanding that they remove the road and fence within 14 days or, alternatively, rent the disputed land from him. Mr Rolle, through his own attorney, responded one week later by affirming that the disputed land was his.
With neither side backing down, Mr Meadows initiated a Supreme Court action for alleged trespass and sought an Order that the Rolles hand over possession of the disputed land. The couple, in their defence, denied that they encroached on his property and asserted that the land belonged to them.
Alternatively, they alleged that the claim was “time barred” under the Limitation Act 1995 because they had already been in “continuous adverse possession” of the disputed land for more than 12 years prior to Mr Meadows initiating legal action.
Justice Petra HannaAdderley, in a September 29, 2020, ruling “ordered that the Rolles deliver up vacant possession of the disputed land, demolish and remove the erections constructed thereon and restrained the Rolles from entering upon the disputed land”.
She found that the road and fence fell within Mr Meadows’ property, and that the couple had “unlawfully intruded”. The judge also rejected the adverse possession defence in finding that the Limitation Act’s “time stopped running” on March 3, 2017, when Mr Meadows first asserted ownership - not when he initiated legal action. Based on the earlier date, they were short of the 12 years by just 15 days.
However, the Court of Appeal overturned the Supreme Court verdict and upheld the adverse possession defence because “time
does not stop running for the 12-year period of limitation until a writ is issued, and the meeting of March 3, 2017, could not stop time running”. As a result, the Rolles had met the 12-year adverse possession threshold set by the Limitation Act.
The Court of Appeal also found that “the restrictive covenants contained in the Rolle and Meadows conveyances did not give rise to a contractual waiver of rights accruing by adverse possession under the Limitation Act”, while the Hawksbill Creek Agreement, its associated Acts and regulations did not prevent the Limitation Act from operating and/or applying in Freeport.
Mr Meadows and his attorney, Maurice Glinton KC, argued before the Privy Council “that the effect of the Hawksbill Creek Acts and the regulations is to prevent the Rolles from relying on a defence of adverse possession under the Limitation Act.
“Counsel for Mr Meadows says, in essence, that to allow for adverse possession, applying the Limitation Act would have the effect of altering the approved lot divisions laid
out by the GBPA in settled subdivisions within the Port area over which the GBPA is vested with exclusive administration and control,” the Privy Council said of Mr Glinton’s arguments.
“Put simply, counsel contends that the Limitation Act does not apply to any of the lots of land or property owned by persons within the Port area, which falls to be administered by GBPA pursuant to its Hawksbill Creek Acts and the various regulations made pursuant to those Acts.”
Mr Glinton also argued, on Mr Meadows’ behalf, that “the restrictive covenants incorporated into the Rolles and Meadows deeds of conveyance operate as a contractual waiver of a landowner’s rights vis a vis another whose land is subject the same covenants”.
“From the Hawksbill Creek Acts and regulations by which the GBPA regulates subdivisions, building standards and land use, counsel invites the Board to find that the provisions of the Limitation Act are not applicable to land within the Port area,” the Privy Council added.
However, while the Hawksbill Creek Agreement, its related Acts and
Fears safety reforms set to drive visiting boaters away
automated identification system; ensure that the automated identification system is properly functioning; and ensure the automated identification system is turned on”. This applies whether the vessel is docked, “traversing the water of The Bahamas” or passing through its territorial waters.
Lonna Bethel, the Port Department’s assistant controller, acknowledged that the AIS requirement is based primarily on a vessel being present in Bahamian waters and “doesn’t
mention” its length as a determinant for whether such a system has to be installed and/or switched on - unlike US coastguard regulations. As a result, maritime industry representatives suggested that The Bahamas’ legislative reforms are going much further than the US - where the vast majority of its visiting boats and boaters are from - by imposing the AIS mandate on vessels below 65 feet in length. The expense and inconvenience of having to now fit their boats with AIS to comply with Bahamian
law could be a deterrent to visiting this nation.
Jonathan Lord, a Ministry of Tourism official, recommended that the Bill be amended to base the requirement on vessel length. He spoke after Erica Wright, of USA Yachting Services, pointed out thatif the proposed legislation passes as is - “those 30-foot sports fishers that come over for a week will have to have AIS now”.
“You would probably be best to amend to feet because of the lady that brought up the point, her boats,” Mr Lord said. “Talking about centre
regulations effectively create a special development zone, the Privy Council added: “It does not follow that such an enclave is exempt from, or not subject to, the general laws such as the Limitation Act or common law principles...
“For example, relating to adverse possession, which are applicable to the Commonwealth of the Bahamas unless this is made clear in the enactments and regulations applicable to the Port Area or such a construction arises by necessary implication.
“There are no provisions contained in the Hawksbill Creek Acts or regulations governing the Port area which either expressly or impliedly abrogate or curtail the rights of a private landowner from acquiring title to land within the Port area by adverse possession,” the Privy Council continued.
“There are no provisions, either in the Limitation Act itself or in the Hawksbill Creek Acts and regulations, which disapply or limit the operation of the Limitation Act, or which may in any way be understood as affecting the law relating to adverse possession in respect of land within
safety on the water will always be its top priority.
consoles and above, that’s a significant amount of traffic to The Bahamas. Most of them probably do not have the AIS on because they are not required, so we don’t want to complicate that by asking 35-foot Boston Whalers to put on an AIS. So maybe if you look at feet that might be a little bit better.”
Ms Bethel responded that the Government, and Port Department’s position, was “always safety” comes first. This provoked a response from one participant, “Captain Naynay”, who said: “Lonna, I agree with you, but you’re talking about government’s position when we’re talking about experiencing it. We’re not talking about in some office...
“Obviously, if you look at Bimini, they have a bunch of 40-foot boats. They have 500 boats in a weekend. They don’t need AIS. Now you’re telling them they cannot come to The Bahamas no more? Come on. Let’s look at what you are saying.”
This prompted push back from Ms Bethel, who responded that she “didn’t like the tone of your last point”. She reiterated that, while the Port Department would always seek to strike the correct balance between regulation and commerce,
“We don’t always get it right,” she conceded. “We are in the office, you are out there on the water; you are doing your thing. When you make your suggestions, which we want to hear, I just want you to keep in mind our position with safety.
“If you’re mentioning that would still achieve our position by looking at the length of the vessel, 65 feet and above, we’re [going to] write that down and take that where it needs to go so that something can happen.”
Ms Wright then explained that the US Coastguard’s AIS requirement only applies to commercial vessels over 65 fete in length.
“Most of those boats coming to The Bahamas that are over 65 feet, they are not deemed in commercial use,” she said. “They are deemed in private use.
So I have plenty of boats that are 120 feet, 130 feet, and they do not have AIS equipment on them.
“Those boats are coming to The Bahamas, and you guys may be classifying them as commercial because they are chartering and acquired a Bahamian charter licence, but on their terms, the way they are registered and their flag is, they are still considered private and not in commercial use.” Ms Bethel acknowledged that “that’s where
the Port area. Counsel for Mr Meadows was unable to point to any such provision, or indeed to provide any justification, for such an interpretation.” As for the restrictive covenants argument, the Privy Council found they have “nothing to do with one landowner adversely acquiring possession of the land of another”. It added:
“To so construe restrictive covenants in the terms set out would turn the law relating to adverse possession on its head.
“The Board, for the reasons given, has no hesitation in rejecting Mr Meadows’ arguments on these two issues. No reason has been shown, in construing the Hawksbill Acts and regulations or the restrictive covenants contained in the deeds of conveyance, for disapplying the law relating to adverse possession or the Limitation Act.
“Lest it be misunderstood, the law relating to adverse possession and the Limitation Act apply to all land within the Port Area as they do to any other land outside the Port area within the Commonwealth of the Bahamas unless expressly or, by necessary implication, excluded.” And, in fully rejecting Mr Meadows’ appeal, the Privy Council also upheld the Rolles’ adverse possession.
the definition and classification needs to come in”, and added: “It is the view to ensure the sector remains safe. These are more so preventative measures. If we find there is a clash between us wanting to ensure the sector stays safe, and you feeling the grip is too tight, we need a bit more wiggle room, then OK.
“We need to know that so we can see how we can get that good balance between what we want, which is keeping safe, and what you want, which is making money.” Ms Bethel added that there was now “a very tight window” for any changes to be made to the Bill, with the House of Assembly now set to complete the Budget debate this Thursday, June 19. Meanwhile Bahamas Maritime Authority (BMA) officials, who were on the same call, also warned that the cargo ships and other large vessels weighing under 300 gross tons are not required by international law to turn on their AIS systems.
And they added that the Port Authorities (Amendment) Bill 2025 also needed to be aligned with maritime law, rules and regulations by inserting a clause that provides a “reasonable excuse” for a vessel’s master to turn off the AIS system in exceptional circumstances such as the threat of an attack or piracy.
BPL projects ‘could beat 2030 renewables goal’
FROM PAGE B3
island is “combating a significant challenge.” She said a revitalisation plan has been put in place including technical upgrades, field maintenance and community outreach.
“On the T&D side, works completed included: Replacement of more than 77 aged or damaged utility poles across multiple settlements, clearing of over 300 spans of vegetation from BPL’s right of way, Installation and repair of over 108 streetlights in Wemyss Bight, Tarpum Bay, Savannah Sound, and Green Castle, maintenance and rebalancing of over 50 distribution transformers, Completion of capital contribution tie-ins in Rainbow
Bay, Harbour Island, and Governor’s Harbour, performance of substation maintenance in Hatchet Bay and Governor’s Harbour, and Installation of an air brake switch and Intelliruptor to support the energisation of the new 34.5Kv line to the North.
“On the generation side, the following works have been completed or are in progress: Upgrade and commissioning of Generators 1,2, and 3 at Rock Sound Power Station, initiation of repairs on Hatchet Bay Generator #1, and installation of switchgear at Hatchet Bay and Harbour Island to improve safety and interconnection.
Recent field assessments and technical operations have focused on optimising
the distribution network and improving voltage regulation throughout Harbour Island.”
She said a quote is being finalised for cutting and pouring a concrete slab (60’ x 15’) to support upcoming infrastructure, while assessments have been carried out in the Bluff Area and Lobster Cay. She also spoke to progress made to the electrification of Potter’s Cay Dock, saying electrical construction estimates are being vetted and 45 vendors have been identified. She added that the ministry has prioritised installing perimeter fencing, security cameras, upgraded fire fighting equipment, and enhanced radio communication systems.
BAHAMIAN SHARE OFFERING FOR NEW WATER PLANT JV
a few weeks; if not by this month, by early July.
“We’ll also have an arrangement where we have the maintenance being done [by the present owner] until the full transfer of ownership.” The Government and Water & Sewerage Corporation have made no secret of their desire to buy the seven reverse osmosis plants from Aqua Design (Bahamas) due to the complete breakdown in relations with the latter.
However, WSCDesalCo’s creation will enable the present water industry structure to be maintained by keeping reverse osmosis production separate from water distribution. And, via the share offering, it will in theory give Bahamians an opportunity to create wealth through becoming owners in the country’s utility sector.
“The new WSCDesalCo that we’re going to create, it should be within this year,” Mr Lundy told Tribune Business. “We’re getting our full approvals from Cabinet right now. We’ll be
sending out more details in the coming weeks.” Asked how Bahamians will be able to acquire an ownership interest, the minister signalled there would be particular emphasis on facilitating retail investors, or individual Bahamians, to buy in. “It’ll be by share offering,” the minister added. “We’ll meet with the general public also on the type of arrangement it will be.
“It will be owned by the state and the Bahamian public at large. We’re working out all the logistics right now. Those details will come out in short order. Definitely all those details will be coming out shortly. We should be sending out something in a few short weeks with the overview of how it will work, and we’ll go from there. It will be an offering for all Bahamians to participate in.”
Addressing the House of Assembly earlier, Mr Lundy confirmed the ongoing talks. “The Government is advancing negotiations with the French desalination conglomerate, Veolia Water, and its Bahamian subsidiary, Aqua Design (Bahamas), to acquire
seven desalination plants located in Eleuthera, Exuma, San Salvador and Inagua,” he said. “We anticipate finalising this agreement in the coming weeks, followed by a purchase and short-term transition arrangement.”
The Chief Justice had earlier this year granted a seven-month extension to an injunction barring Aqua Design (Bahamas) from causing “decimation of the business and residential community of San Salvador” by cutting off supply.
Sir Ian Winder, in an April 3, 2025, verdict extended until early November the “emergency” injunction obtained by the Water & Sewerage Corporation that blocked the provider from ceasing water production at the reverse osmosis plant supplying all the former’s San Salvador customers over purported “safety risks”.
The state-owned water provider obtained the initial injunction just one day before Aqua Design was set to walk away and abandon San Salvador. Sir Ian’s ruling also revealed that there was a more than $10.5m ‘gap’ between the
two parties over the poten-
tial sale of four of the private provider’s seven reverse osmosis plants to the state-owned utility - the same plants the Government is negotiating for now.
The judgment quoted at length from an affidavit sworn by Robert Deal, the Water & Sewerage Corporation’s general manager, who disclosed that it had “entered into negotiations for the sale and purchase” of the four plants. While these locations were not identified, two appeared to be the San Salvador reverse osmosis plant as well as the facility at Waterford in Eleuthera.
Mr Deal said the Water & Sewerage Corporation, on August 9, 2024, wrote to Aqua Design (Bahamas) requesting a list of materials, equipment, parts, chemicals and other goods present at the four plants and their value in accordance with the ‘master agreement’ between the two sides. The plant operator responded on November 10, 2024.
“The defendant [Aqua Design] then extended an offer to the claimant [Water & Sewerage Corporation]
for the sale of its businesses for $18.767m,” Mr Deal said. “However, the valuation range obtained by the claimant relating to the market value of the desalination plants is between $5.378m and $8.068m.
“The substantial difference between the defendant’s offer price and the claimant’s valuation is due to the fact that Aqua Design is purporting to sell an ongoing business for the continued production of water, while the claimant is seeking the sale and purchase of the assets/facilities [at the four plants[, not an ongoing business.”
Mr Lundy, meanwhile, while pledging that there will no water rate hike for Water & Sewerage Corporation consumers, also disclosed that the utility has signed a “first-of-itskind” franchise agreement with Atlantis on April 1, 2025, where the mega resort “now pays for the use of the Corporation’s infrastructure, ensuring that large commercial clients contribute their fair share”.
Other agreements were also said to be under negotiation, and Mr Lundy added:
restrained new licensing activities. At the domestic level, intermediation, particularly among banks, credit unions and insurers, continued to increase.
“Nevertheless, ongoing efficiency pursuits continued to limit nearterm employment prospects with the international sector impacted for both efficiency reasons and ongoing adjustments to the external regulatory environment,” the Central Bank added.
While the number of firms providing international products and services reduced incrementally, in both the banking and non-bank sectors, the product vehicles supporting fiduciary, securities and investment services continued to expand. Banks and insurers also noted balance sheet growth, while combined fiduciary and assets under management were stable to slightly increased.”
Total bank and trust company employment contracted by 35 positions, or 1 percent, to around 3,646 persons in 2024. This, the regulator added, was a reversal of the 0.5 percent workforce expansion enjoyed during the prior year.
“A breakdown by nationality showed that Bahamian
positions declined by 39 (1.1 percent) to 3,448. However, non-Bahamian jobs grew by four (2.1 percent) to 198.
Disaggregated by assigned functions, the majority of Bahamians were employed in local banking sector roles (66.6 percent), followed by offshore banking (15.3 percent), trust administration (10.8 percent) and other wealth management related activities (7.3 percent),” the Central Bank said.
“During 2024, total employment in the domestic banking sector fell by 69 (2.3 percent) to 2,952 in contrast to the 0.4 percent gain a year ago, and outpacing the average yearly decrease of 1.4 percent over the past five years.
“In contrast, total international sector employees increased by 34 (5.2 percent) to 694, exceeding the 0.6 percent uptick in 2023, and contrasting with an average yearly decline of 5 percent over the preceding five year period.”
Breaking this down further, the Central Bank added: “As it relates to the composition of staffing for the domestic banking sector, the total number of Bahamians decreased by 66 (2.2 percent) to 2,888, contrasting with the 0.8 percent increase in the previous year.
“Similarly, the total nonBahamian employees fell
by three (4.5 percent) to 64, curtailing the 13 percent fall-off in 2023. However, the ratio of Bahamian to non-Bahamian workers rose to 45:1 from 44:1 in 2023.
“Within the international sector, total Bahamian staff firmed by 27 (5.1 percent) to 560, outpacing the year earlier 2.9 percent growth. Meanwhile, the non-Bahamian component grew by seven (5.5 percent) to 134, a turnaround from the 8 percent fall-off in the prior year. As a result, the ratio of Bahamian to nonBahamian employees held steady at 4:1.”
When it came to bank and trust company salaries, the Central Bank said: “Movements in average salaries varied across the banking sectors. Specifically, the average salary for the domestic banks moved higher by $2,713 (3.5 percent) to $64,444 per annum. Conversely, average compensation in the international sector, excluding bonuses, reduced by $7,943.8 (6.9 percent) to $107,320 per annum....
“[Total] salaries rose by $11.6m (3.6 percent), although trailing the 5.6 percent increase in the previous year.” The combined number of Bahamas-based banks and trust companies fell by five to 192 in 2024,
matching the decrease seen during the prior year.
“Total expenditure in the banking sector expanded by $73.1m (8.5 percent) to $930.1m in 2024, lower than the 10.1 percent increase in the preceding year but surpassing the average annual spending gain of 2.6 percent over the last five years,” the Central Bank said.
“Underlying this development, total operational costs advanced by $76.7m (9.1 percent) to $916.1m following a growth of the same magnitude in the prior year. Specifically, non-staff administrative costs expanded by $55.6m (13.6 percent) to $463.6m exceeding last year’s 10.3 percent growth....
“In addition, government fees grew by $9.2m (8.5 percent) to $117.1m owing primarily to a rise in license (11.4 percent) and work permit (5.9 percent) fees. In addition, spending on staff training improved by $0.3m (17.4 percent) to $2.3m, albeit slowed from the 22.8 percent expansion in the preceding year.”
When it came to total taxes and fees generated by the Bahamian financial services industry, the Central Bank added: “Based on fiscal estimates, total taxes and fees received by the Government increased by $19.6m (8.5 percent) to $249.9m in 2024, largely
attributed to increased bank and trust companies licence fees.
“Of receipts to the Government, license and registration fees increased by $9.4m (9.9 percent) to $104.3m, with an $8m (11.4 percent) increase in receipts from banks and trusts companies to $77.9m.”
However, offering a cautious outlook for the Bahamian financial services industry’s growth prospects, the Central Bank said: “The near to medium-term outlook for financial services sector remains mixed.
also evident in our nonrevenue water programme. When we took office, New Providence was distributing 11.9m imperial gallons per day but selling only 5.02m.
“Today, despite distributing slightly less - 11.66m gallons per day - we are selling 8.34m gallons, a 3.32m gallon increase. This increase demonstrates our improved efficiency and our commitment to getting value from every gallon produced.”
As for the Water & Sewerage Corporation’s financial performance, Mr Lundy conceded that taxpayer subsidies had increased by more than $15m, rising to $64.9m in 2024 compared to $49.34m a year earlier, to help cover debt servicing, payment arrears, water purchases and new capital works.
The utility’s net operating loss, while down slightly from the prior year’s $53.6m was still at $50.1m, while operating expenses stood at $113m. Revenues, though, rose 7.4 percent over the prior year to $60.9m via greater sales volumes. Such figures may give potential WSCDesalCo investors pause for thought, although they will be buying into a separate company and not the Corporation.
Although strengthened intermediation prospects are expected to expand the expenditure profile of domestic firms, operations are expected to continue to target increased efficiencies through digital innovations that limit jobs expansion.
“In the international sector, prospects are expected to remain more impacted by growth opportunities from new products favouring the securities industry, and niche growth markets in private banking and trusts outside of Europe. That said, further consolidation among the European clientele could continue to mute these gains in the medium-term.”
NOTICE is hereby given that MICHAEL JOHN MCCAFFREY of #127 S Ocean Road, 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 10th day of June 2025 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
N O T I C E
RSR INVESTMENTS HOLDINGS LIMITED
NOTICE IS HEREBY GIVEN as follows:
(a) RSR INVESTMENTS HOLDINGS LIMITED is in voluntary dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000.
(b) The dissolution of the said company commenced on the 13th June, 2025 when the Articles of Dissolution were submitted to and registered by the Registrar General.
(c) The Liquidator of the said company is Octagon Management Limited, Poinciana House South, 1st Floor, East Bay Street, Nassau, Bahamas.
Dated this 17th day of June, A. D. 2025
Management
NOTICE is hereby given that EDDY
of the facts within twenty-eight days from the 10th day of June 2025 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
and signed statement of the facts within twenty-eight days from the 17th day of June 2025 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
NATIONAL DEBT FALLS TO $12BN AS BOND REPURCHASE PUT AT $700M
messages seeking comment last night, so it could not be confirmed whether investors have offered to part with a combined $700m in outstanding Bahamian government bonds in return for a cash payment.
The Central Bank, meanwhile, in its report on economic developments during the three months to end-March 2025 revealed that the national debt, which includes contingent liabilities such as guarantees provided by the Government to underwrite loss-making state-owned enterprises (SOEs), had fallen by $53.5m during what is traditionally a revenue and surplus-rich period for the Public Treasury.
“The direct charge on the Government declined by $48.9m (0.4 percent) over the quarter ended March 2025 to $11.708bn. However, on an annual basis it rose by $194.1m (1.7
percent). A disaggregation by currency revealed a continued majority of the debt in Bahamian dollars (54.7 percent), with the balance in foreign currency (45.3 percent),” the banking regulator said.
“The Government’s contingent liabilities decreased by $4.6m (1.4 percent) over the review quarter, and by $13.1m (4.6 percent) yearon-year to $329.9m. As a consequence, the national debt, inclusive of contingent liabilities, declined by $53.5m (0.4 percent) over the three-month period, and by $181m (1.5 percent) on an annual basis to $12.039bn as at end-March 2025.
“As a fraction of GDP, the direct charge declined by an estimated 1.4 percentage points on a yearly basis to 74 percent at end-March. In addition, the national debt-to-GDP decreased to an estimated 78.4 percent from 80 percent in the same quarter of 2024.”
Wall Street recovers from Friday’s shock as US stocks rise and oil prices ease
By STAN CHOE AP Business Writer
CALM returned to Wall Street on Monday, and U.S. stocks rose, while oil prices gave back some of their initial spurts following Israel's attack on Iranian nuclear and military targets at the end of last week.
The S&P 500 climbed 0.9% to reclaim most of its drop from Friday. The Dow Jones Industrial Average rose 317 points, or 0.8%, and the Nasdaq composite gained 1.5%. They joined a worldwide climb for stock prices, stretching from Asia to Europe. Israel and Iran are continuing to attack each other, and a fear remains that a wider war could constrict the flow of Iran's oil to its customers. That in turn could raise gasoline prices worldwide and keep them high.
But past conflicts in the region have seen spikes for crude prices last only briefly. They've receded after the fighting showed that it would not disrupt the flow of oil, either Iran's or other countries' through the narrow Strait of Hormuz off Iran's coast.
Hopes that the fighting could remain similarly contained this time around helped send oil prices back toward $71 per barrel on Monday.
Iran's foreign minister, Abbas Araghchi, appeared to make a veiled outreach for the U.S. to step in and negotiate an end to hostilities between Israel and Iran, saying in a post on X that a phone call from Washington to Israel's leader "may pave the way for a return to diplomacy." A barrel of benchmark U.S. oil fell 1.7% to $71.77, while Brent crude, the international standard, dropped
The Prime Minister during his Budget address laid out several economic indicators that the Government is targeting to achieve its ambition of returning The Bahamas to ‘investment grade’ status by the 2028-2029 fiscal year.
These include a 13.1 percent, or $5,100, increase in Bahamian per capita gross domestic product (GDP) to $44,000 by 2029, plus a more than 50 percent reduction - in percentage terms - in the Government’s debt interest expense as a percentage of GDP within the same timeframe.
Mr Davis, adding that the Government also expects to be “near” its 50 percent debt-to-GDP target by the 2028-2029 fiscal year, some two years ahead of its 2030-2031 goal, said: “This administration remains resolute in its commitment to securing an investment grade credit rating within the next three years,
1.3% to $73.23 per barrel. They had both jumped roughly 7% on Friday after the initial attacks.
In another signal of calming fear in financial markets, the price of gold also gave back some of its knee-jerk climb from Friday, when investors were looking for someplace safe to park their cash. An ounce of gold fell 1% to $3,417.30.
Wall Street has plenty of other concerns in addition to the fighting in Iran and Israel. Key among them are President Donald Trump's tariffs, which still threaten to slow the economy and raise inflation if the U.S. government doesn't win trade deals with other countries to reduce Trump's taxes on imports.
The United States is meeting with six of the world's largest economies in Canada for a Group of Seven meeting, with the specter of tariffs looming over the talks.
Later this week, the Federal Reserve is set to discuss whether to lower or raise interest rates, with the decision due on Wednesday.
starting in the upcoming fiscal year, 2025-2026.
“Achieving this milestone by fiscal year 2028-2029 is not merely symbolic; it is a strategic imperative that will unlock greater economic opportunity, reduce borrowing costs and enhance investor confidence in our nation’s future....
“With our GDP projections expected to fully capture economic activity within the next three years, we have confidently set the following targets to reach ‘investment grade’ status. GDP per capita has risen by 27.7 percent, increasing from $30,400 in 2021 to $38,900 in 2024. On a year-over-year basis, it grew by 2.7 percent, up from $37,900 in 2023,” he added.
“Based on regional benchmarks, long-term growth prospects and the current economic environment, we are targeting an annual GDP per capita of approximately $44,000
by 2029.” The Bahamas is presently some four notches below ‘investment grade’ status with the rating agencies, having been marooned in ‘junk’ status for some years.
Mr Davis, identifying the Government’s revenue-to-GDP ratio, or its percentage of economic output, as another targeted indicator, said: “Revenueto-GDP has also improved significantly, rising from 17 percent in fiscal year 20202021 to 19.7 percent in fiscal year 2023-2024. For the current fiscal year, as previously planned, we had set a target of 22.1 percent.
“To meet the requirements of an investment grade rating we must continue to enhance our revenue mobilisation efforts. Accordingly, we project that total revenue will reach 23.5 percent of GDP in fiscal year 20252026 and increase to 25 percent thereafter.”
The Prime Minister added that “international best practices” showed a country’s debt should not exceed half its economic output or GDP. The Bahamas’ debt-to-GDP ratio stood at 72.4 percent at end-June 2024, and Mr Davis added: “The Fiscal Strategy Report 2025 outlines our commitment to reducing the central government debt-to-GDP ratio to 50 percent by fiscal year 2030-2031.
“Based on internal estimates and expected policy changes, we expect to be near this target by fiscal year 2028-2029. In addition to reducing the size of our debt, we are also focusing on reducing the cost of carrying it.
“In fiscal year 2020-2021, interest expense accounted for approximately 22.1 percent of total government revenue, decreasing to 20 percent in fiscal year 20232024. Our objective is to further reduce this ratio to 10 percent by fiscal year 2028-2029.”
US and UK announce a trade deal, but steel imports are still being negotiated
By JILL LAWLESS and WILL WEISSERT Associated Press
U.S. President Donald Trump and British Prime Minister Keir Starmer said Monday that they had signed a trade deal that will slash tariffs on U.K. auto
and aerospace industry imports — but they are still discussing how to handle steel production.
The pair spoke to reporters at the Group of Seven summit in the Canadian Rockies, with Trump brandishing the pages of what he said was a long-awaited agreement. The rollout was anything but smooth, however, as Trump dropped the papers and at first said his administration had reached an agreement with the European Union when he meant the United Kingdom. The president nonetheless insisted the pact is "a fair deal for both" and would "produce a lot of jobs, a lot of income."
"We just signed it," Trump said, "and it's done."
Starmer said it meant "a very good day for both our countries, a real sign of strength."
Reaching an agreement is significant as Trump has threatened much of the world with steep import tariffs that have unsettled markets and raised the possibility of a global trade war.
He has since backed off on many of his proposed levies but also continued to suggest that administration officials were furiously negotiating new trade pacts with dozens of countries — even as few have actually materialized.
Trump said "the U.K. is very well protected," from tariffs. "You know why? Because I like them."
The signing of the deal at the G7 followed Trump and Starmer's announcement in May that they'd reached a framework for a trade pact that would slash U.S. import taxes on British cars, steel and aluminum in return for greater access to the British market for U.S. products, including beef and ethanol.
But Monday's agreement fully covers only British cars and aerospace materials, with more work to come on steel.
The British government said the new agreement removes U.S. tariffs on U.K. aerospace products, exempting Britain from a 10% levy the Trump White House has sought to impose on all other countries — a boost to British firms, including engine-maker Rolls-Royce.
It also sets the tax on British autos at 10% from the end of the month, down from the current 27.5%, up to a quota of 100,000 vehicles a year.
U.K. Business and Trade Secretary Jonathan Reynolds said the deal protects
"jobs and livelihoods in some of our most vital sectors." Mike Hawes, chief executive of Britain's Society of Motor Manufacturers and Traders, said it was "great news for the U.K. automotive industry." But there was no final agreement to cut the tax on British steel to zero as originally foreseen — seen as vital to preserving the U.K.'s beleaguered steel industry. Britain's steel output has fallen 80% since the late 1960s due to high costs and the rapid growth of cheaper Chinese production.
Monday's agreement fleshes out the terms of the framework deal announced in May. That framework didn't immediately take effect, leaving British businesses uncertain about whether the U.K. could be exposed to any surprise hikes from Trump. British businesses, and the U.K. government, were then blindsided earlier this month when Trump doubled metals tariffs on countries around the world to 50%. He later clarified the level would remain at 25% for the U.K.
After the two leaders spoke, the White House released a statement seeking to clarify matters, saying that with respect to steel and aluminum, Commerce Secretary Howard Lutnick will "determine a quota of products that can enter the United States without being subject" to previous tariffs imposed by the Trump administration.
The British government said Monday that the plan was still for "0% tariffs on core steel products as agreed."
Trump's executive order authorizing the deal contained several references to security of supply chains, reflecting the U.S. administration's concerns about China. It said the U.K. "committed to working to meet American requirements on the security of the supply chains of steel and aluminum products intended for export to the United States."
There also was no final deal on pharmaceuticals, where "work will continue," the U.K. said.
The deal signed Monday also confirms that American farmers can export 13,000 metric tons (29 million pounds) of beef to the U.K. each year, and vice versa — though a British ban on hormone-treated beef remains in place.
PRESIDENT Donald Trump meets with Britain's Prime Minister Keir Starmer on the sidelines of the G7 Summit, Monday, June 16, 2025, in Kananaskis, Canada.
