By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
THE Bahamas must "take advantage" of the momentum generated by the launch of its largest-ever $1.067bn foreign currency bond issue to global investors, a well-known businessman urged yesterday.
Sir Franklyn Wilson, the Arawak Homes and Sunshine Holdings chairman, told Tribune Business that this nation's sovereign debt finance raise is "a
By NEIL HARTNELL
Business Editor
BAHAMIAN brokers and their foreign counterparts were yesterday divided over proposed legal reforms that end the ban on soliciting yacht charters in this nation by giving locals exclusivity in this business. While Bahamian professionals have hailed the Boat Registration (Amendment) Bill’s reforms as “a great opportunity for Bahamians” that “has been a long time coming”, overseas yacht owners and charter managers are warning that the changes “jeopardise hundreds of charter agreements already booked through 2026” and threaten to “significantly disrupt” the sector to this nation’s economic detriment.
Lieutenant Commander Berne Wright, the Port Department’s controller, told a Friday seminar organised by his agency with maritime industry stakeholders that the Bill’s reforms were designed to give Bahamian yacht brokers “a piece of the pie” in a lucrative industry by eliminating the existing
mandate that all charters must originate from outside The Bahamas come July 1. The Bill, if passed as is by Parliament, will insert a new section 4A into the existing Boat Registration Act to give Bahamian yacht brokers/agents exclusivity, or a monopoly, on soliciting charters when the subject vessel is in Bahamian waters. Those soliciting the charters must be either a Bahamian citizen, or company, approved by the Port Department and possessing an active Business Licence.
However, a position paper issued to the Government by the recently-formed Bahamas Charter Yacht Owners and Managers Association, warns that the Bill as written threatens to deprive this nation of “millions of tourism dollars” by driving “term charter operators” and their vessels from this market.
Tribune Business was told that “a lot of vessels” used in foreign-flagged charters are typically in Bahamian waters for nine months or more per year. They added
significant event for the country" given that it will gauge capital markets confidence in the credibility and integrity of the Davis administration's fiscal and economic revival strategy.
While conceding that The Bahamas is "not out of the woods" from a long-term perspective, he added that the $1.067bn issue's successful placement as part of a strategy to refinance existing US dollar bonds series may also cause naysayers to view the Prime Minister's projected $75.5m Budget
By NEIL HARTNELL Tribune Business Editor
THE Government’s bid to ease entry costs for private aviation through the new frequent digital cruising card (FDCC) was yesterday deemed “unlikely” to attract increased business or generate pilot value.
CST Flight Services, which provides flight coordination and trip support services to the general aviation industry, told pilots in a website posting that the $2,000 permit, which is valid for two years and exempts pilots from having to pay the Customs processing fee and departure taxes for up to five passengers, will likely only
surplus for the 2025-2026 fiscal year with "less sceptical eyes".
Sir Franklyn spoke out after International Financing Review confirmed that The Bahamas had launched a new sovereign bond, priced with an interest coupon of between 8.25 percent and 8.375 percent, into the global markets. The $1.067bn issue's principal will mature in 11 years' time in 2026, meaning that this is the date when the Government will either have to refinance or pay investors their monies.
benefit homeowners who are frequent visitors to The Bahamas, CST, whose director is Bahamas flying ambassador, Rick Gardner, said that for the FDCC card’s $150 Customs processing fee saving and $29 departure tax exemption for one passenger to make economic sense, a private pilot would have to make 11.2 trips over the two-year period to break even.
And, with the departure tax savings peaking at $145 per trip, it added that a plane with the maximum five passengers would have to make almost seven trips over those two years to recoup the permit’s $2,000 costs. Those planes carrying two, three and four passengers would have to
make 9.6, 8.4 and 7.5 trips respectively.
The FDCC, which was unveiled as part of reforms to the Customs Management (Amendment) Regulations 2025, takes effect on July 1, 2025, and applies only to ‘propeller driven’ aircraft. “There is no mention of the number of propellers nor whether the aircraft must be reciprocating or gas turbine powered,” CTS told pilots and its clients.
By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net
A CABINET minister yesterday branded the explosive growth of liquor stores in inner-city and Over-the-Hill communities as “exploitation”;
Keith Bell, minister of housing and urban renewal, addressing the House of Assembly during the 2025-2026 Budget debate said the Business Licence (Amendment) Bill 2025 requires new liquor licence and renewal applications to undergo a public consultation. He added that it is important to balance commercial freedom with community well-being
“The unchecked clustering of liquor outlets in vulnerable communities is not economic development; it is exploitation. We must strike a more responsible balance between commercial freedom and community wellness, and this legislation seeks to do just that,” said Mr Bell.
“The Urban Renewal Authority has received dozens upon dozens of complaints from concerned citizens about the unchecked proliferation of liquor stores in their communities. Many of these establishments operate without regard for community standards, and have become magnets for loitering and vice activity.”
Mr Bell said a survey revealed there are 32 liquor stores on a 3.89 mile section of East Street, and 16 liquor stores on a 2.45 mile section of Wulff Road. He added that the “over-saturation” of liquor stores has led to safety concerns and traffic congestion.
“Many of these establishments are operating with inadequate parking, causing congestion and
safety concerns. Alarmingly, a number of them are also selling liquor through take-out windows, and at least one features a drivethrough window effectively turning the sale of alcohol into a fast-food-style transaction with minimal oversight or accountability,” said Mr Bell.
“This is not economic empowerment — this is over-saturation.
Too many liquor outlets are operating without regard for the safety, order or dignity of the communities they serve.” Mr Bell said the amendments will allow residents, school boards, churches and civic groups to object to the renewal of all liquor licences through public consultations.
“Unlike the 2010 reforms, the public will have a formal and meaningful voice in the approval of liquor establishments. Under the amendments to the Business Licence Act, any person applying for a new liquor licence must submit a registration application at least 90 days in advance, triggering a process of public consultation,” said Mr Bell.
“The secretary is required to publish a public notice, whether
“However, every sixth passenger, and each passenger thereafter, will have to pay a fee of $50 (versus the normal $29 departure tax).” Predicting the likely impact, CTS said: “If you are a first-time traveller to The Bahamas, there is probably little value to you to obtain an FDCC.
“Depending on the number of people on board your aircraft, and the number of times you will fly to The Bahamas during the two-year validity of the FDCC, you will need to exceed a certain number of trips to make the FDCC an economically practical option for you.....
“It is important to note that the FDCC does not exempt you from landing fees, terminal fees, parking fees, tourism tax, FBO fees, air navigation fees and any other fee assessed on a private aircraft by
“The FDCC will be ‘linked’ to the aircraft registration number and will exempt the operator from having to pay the Bahamas Customs Processing fee and passenger departure tax up to five passengers. Bahamas Customs law does not exempt the pilots of pleasure aircraft from the departure tax, so they are considered as passengers for this tax.
By ANNELIA NIXON Tribune Business Reporter anixon@tribunemedia.net
A MAILBOAT operator yesterday urged the Government to focus on addressing the run-down state of Potter’s Cay Dock amid complaints that the sector is “price gouging” and offering poor service.
Jed Munroe, the Island Link mailboat operator, and a member of the Mailboat association, pushed back while confirming he has heard the same allegations. JoBeth Coleby-Davis, minister of energy and transport, had on Monday told the House of Assembly that her ministry “will complete a review of mailboat services which will entail a review of routes, finances, dockside services, freight logistics and freight services” after receiving complaints of “infrequent service, price gouging and damage or loss of goods”.
She added: “The bulk of the ministry’s recurrent expenditure allocation is largely assigned to support subsidy payments to support the mailboat service. The mailboat service is for the essential benefit of each island and the Bahamian people. The subsidy is not for profit.
“Several Family Islands have reached out to the ministry to report some concerns with mailboat operators, which are actively being addressed. The concerns pertain to infrequent service, price gouging and damage or loss of goods. These concerns are being investigated and the necessary actions taken.
“During the upcoming Budget period, the ministry will complete a review of mailboat services which will entail a review of routes, finances, dockside services, freight logistics and freight services. The ministry is looking forward to fostering a greater relationship with the Mailboat Association to allow for a better understanding of the roles each agency plays in the mailboat operations, and to provide a better understanding of what
By NEIL HARTNELL
THE Ministry of Tourism, Investments and Aviation yesterday unveiled the launch of the 2025 Bonefishing Tournament Series that will showcase pristine flats fishing areas in four islands.
The ministry, in a statement, said Grand Bahama, Andros and Eleuthera will be featured in the series with the championship round set for Exuma. Bahamian anglers, and those from the rest of the world, are again expected at this
year’s series which begins in July and ends in October. The event is designed to further solidify The
Bahamas’ status as a top bonefishing destination. Each tournament will also emphasise sustainable fishing, including catch and release practices. “Bonefishing continues to grow as a specialised market that brings meaningful economic benefits across The Bahamas,” said Chester Cooper, deputy prime minister and minister of tourism, investments and aviation.
“These tournaments have a lasting positive impact on the communities that host them, and provide genuine opportunities for Bahamians to build careers within the tourism industry. Through these events, we
A TWO-DAY open house hosted by the Department of Labour and Disney Cruise Line drew more than 100 job seekers to the former’s Regent Centre office between June 11-12. The event attracted a wide mix of applicants, from recent high school graduates to seasoned professionals, all eager to explore career
Michael Halkitis, minister of economic affairs, did not respond to Tribune Business inquiries seeking comment before press time last night and no public statement or comment has yet been released by the Ministry of Finance.
The proceeds from the $1.067bn issue, if fully subscribed, will almost certainly be used to finance the total $767.5m payment to holders of The Bahamas’ existing sovereign debt who have agreed to exchange the bonds they hold in return for a cash payout.
The amount tendered by investors is equal to 34.8 percent, or more than onethird, of the outstanding $2.2bn in investor principal - spread across six separate issues - that was the subject of the Government’s buy back offer initiated more than one week ago on June 16, 2025. Meanwhile, the remaining $300m balance from the latest $1.067bn bond is likely to be destined for the
options with Disney’s private island destinations. Attendees met directly with recruiters and were interviewed on-site.
Princess Flowers, officer with the Department’s public employment services unit, called it “a grand time for Grand Bahama” as job demand is strong across various sectors.
Leslie Lopez, Disney Cruise Line’s human
National Investment Fund - the vehicle that the Davis administration has created to replace the previous Bahamian sovereign wealth fund.
Prime Minister Philip Davis KC tabled the resolution to obtain Parliament’s authorisation to borrow this $300m during the mid-year Budget at end-February 2025. He added that the Government would seek this sum only when market conditions were favourable, and the timing was right, with the monies designated for the National Investment Fund rather than covering the annual deficit.
Mr Davis signalled that these funds would be used to capitalise the National Investment Fund so that it can acquire income-generating assets in the public interest to benefit Bahamian taxpayers now and into the future. The Government’s decision to re-enter the private capital markets appears to have also been driven by a desire to gauge market sentiment and reaction, plus
resources manager, said: “Support in Grand Bahama is phenomenal. We’re hiring across multiple departments, including culinary, custodial, lifeguards and administration.” A swim test for lifeguard candidates was held at the YMCA on June 13. Disney’s recruitment drive will continue with stops in Bimini next month and Exuma in August.
determine investor appetite for The Bahamas’ sovereign debt and the price they are willing to pay. And it is also likely to be another step towards the ambition of escaping the current ‘junk’ sovereign credit rating by 2028-2029.
Sir Franklyn, warning against politicising the Government’s financing operations, said: “The bottom line is this: Please let’s not mess this up. This is one of those moments; don’t let’s mess this up. This is a significant event for the country....
“The second point is it gives credence, when the Prime Minister came up and talked about a surplus Budget, a lot of the local commentary was:
‘Why are you talking that?’ With all this scepticism, the response was a certain way. This will [bond offering] will hopefully have the impact of saying ‘we accept that as what it is’.
“We have a chance that this Budget could be achieved,” Sir Franklyn added. “It could be
show how sustainable sportfishing supports economic growth and strengthens our islands.”
The tournament will be held at four locations: On Grand Bahama from 8–13 July, 2025, at the Grand Lucayan resort; Andros, from October 7–12 at the Andros Island Bonefishing Club, Behring Point; Eleuthera: 14–19 October, at Unique Village, Governor’s Harbour; and on Exuma, 21–26 October, for the championship round at Black Point Bonefishing Club and Emerald’s Inn, Black Point.
Rafique Symonette, the Tourism Development Corporation (TDC) chairman,
said: “The fly-fishing industry is a $150m industry with a myriad of opportunities for Bahamians. We must ensure Bahamian ownership in this space. The TDC stands ready to support Bahamian guides and new bonefish lodges.”
The Ministry of Tourism said the event is expected to generate more than $1m in economic impact across the participating islands. Hotels, fishing lodges, restaurants, retail shops, transportation providers and independent guides are all expected to benefit from increased visitor spend.
It added that the series will also support community-building and
sustainability efforts through targeted financial contributions and visibility for local initiatives, while contributing to the longterm growth of the fishing sector.
The series is being supported by key partners such as Bonefish & Tarpon Trust, which leads its conservation initiatives, along with Jimmy’s Wines & Spirits, Yntegra Group and Fly Fishing Journeys. Fishing lines used in the tournament were donated by Scientific Anglers.
which as of yesterday were at 7.9 percent and 8.5 percent for issues maturing in 2029 and 2032, respectively.
changed; there could be numerous reasons why a surplus doesn’t happen, but the fact of the matter is everyone in the country is in a certain frame of mind where the Budget was perceived in a certain way.
“Hopefully, this will allow those analysts to look at it with less sceptical eyes and, from that vantage point, think about how we make the best use of this potential moment. That’s what’s key for the country. Take advantage of this moment. We are not out of the woods in a long-term way, but we are on a tremendous trajectory so let’s take advantage of it.”
Financial analysts, speaking to Tribune Business on condition of anonymity, said that while the $1.067bn bond’s pricing was unlikely to result in a reduction in the Government’s debt servicing costs - and may even increase them short-term - it would provide it with more “breathing room” by lengthening the maturity of its debt.
The six series involved in the Government’s buyback offer carried interest coupons of between 6 percent and 9 percent. And the greatest investor response, which resulted in $451.155m or 74.04 percent (almost three-quarters) being offered for repurchase, came over the 6 percent bond due to mature in 2028. Another $175.404m was offered for the bond, priced at 8.95 percent, set to mature in 2032. One source said investors in the 2029 series, priced at 6 percent, were “baling in the hope of getting a much higher rate” through the $1.067bn issue.
And another contact added:
“They were swapping a lower rate on a soon-tomature bond for longer paper with a higher rate.
The 8.25-8.375 percent interest coupon is, at most, just 75 basis points less than the 8.95 percent and 9 percent that The Bahamas had to pay when raising debt capital at the COVID-19 pandemic’s height. And the pricing is also aligned with the yields sought by investors on existing bond issues,
“It ends up costing the Government more than they were paying before, but they were able to extend the maturity of the bonds which, for The Bahamas, is a good thing.” The source added that it will also give The Bahamas flexibility to refinance at a time and terms of its choosing, and not be forced into doing so in the near future, and also “room” to improve indicators such as debt-to-GDP.
“When they go back into the market they will be able to raise at a lower rate,” they said of the strategy.
“They’ve had to pay a bit more but it gives them more breathing room. They’ve added a bit more on to their interest expense, but have pushed it out. By the time they have to refinance that will have dropped a bit.
“There seems to be a reasonable appetite in the market for Bahamas bonds at that price. This is a significant improvement on where they were a few years ago, when the effective rate was 12-13 percent and they were issuing debt at a significant discount to par value. This is a very good sign for The Bahamas’ ability to go back to the debt market.” Tribune Business understands that Bahamians and local investors, who were approved to purchase almost $202m of The Bahamas’ US dollar foreign currency bonds in late 2021, were given “priority rights” to participate in the $1.067bn bond and exchange their old investment holdings for new. However, another contact queried whether the Government’s move to direct the $300m directly to the National Investment Fund complies with both the constitution and Public Finance Management Act which requires all appropriated sums to be approved by Parliament. They suggested this was a structure carefully chosen to avoid the $300m borrowing from showing up in this year’s deficit. ‘Take
public consultations and report liquor stores that have become a “nuisance to the community”.
through newspaper, online platforms or physically at the proposed location giving the community no less than two weeks’ notice and inviting written comments from the public and other interested parties. These comments must be considered before any decision is made.”
The amendments will also allow the secretary to reject applications if a community is already over-saturated with liquor stores and bars, if the proposed site is too close to a school or church, or if the premises are unsuitable for safety, health or supervision reasons. Mr Bell encouraged the public to participate in the
“We need schools, churches, residents and all members of the community to play their part. Where an establishment is not operating to standard, where it has become a nuisance, a threat to safety, or a blight on the area, those impacted must come forward and act. The new regime will only be as strong as the public participation that supports it,” he added.
By ANNELIA NIXON
THE Association of Bahamas Marinas (ABM) president says permitting Bahamian brokers to solicit charters from vessels located in this nation could boost economic growth by keeping them here longer.
Peter Maury, speaking at a Town Hall meeting to discuss the fall-out from the decline in foreign yacht charters, said: “We have some changes for yachts being booked in-country. And this has caused a few questions in that, the way the 1994 legislation was written, foreign flag vessels couldn’t solicit charters within the country.
“So we’ve actually put this forward to allow boats to now be able to solicit charters within country, basically day charters or whatever it is to, you know, to try to keep the boats here and give them an opportunity to stay longer, to pick up extra days, or whatever it is in between charters, obviously, to drive economic business.
“I mean, for the Marina slip nights, for the technicians and the provisioners and everybody else, all the supportive businesses, the idea is to, the longer they’re here, the more opportunity local businesses have. So that’s one key thing that was passed, and it doesn’t change anything that was being done before,” Mr Maury said.
“Obviously, the yachts can come and do term charters, booked from abroad, but for basically, the walkup customer, they now can through a Bahamian company or a Bahamian broker. They can participate in local business, which typically wasn’t allowed before. So that’s one big change that we thought was a good thing.”
Terrane Roker, the Bahamas Yacht Brokers and Agents Association president, added: “I also want to add that the charter managers can remain the same. I know there’s a lot of uncertainty and uneasiness from the international community with the yacht charter managers, stating that all of the charters has to be booked, or the charter
A CABINET minis-
agent has to be based in The Bahamas, which isn’t the case.
“The charter managers can carry on business as it is. When it comes to the day charters or booking charters within country, my assumption and my interpretation from the new law is that the retail side of it has to be done within the country once the boat is in country, and once the client’s in country, which was never the case, right?
“So it actually adds a benefit to the country, and also the local environment and the industry, that was never there to begin with. So there was a lot of misinterpretation to begin with.” One attendee noted “there’s no broker in the
US is going to split with a Bahamian broker”. They added: “So the way it’s interpreted, guys, when you read it, it states that when you book a charter, you could be in America, right? That’s the way it fits. There’s no broker in the US who’s going to split with a Bahamian broker. There’s no way. If they’re bringing the client and everything like that, there’s no way they’re splitting commissions.
“I see for the day charter side, yes, 100 percent. But they’re not going to take their 15 percent commission and split it with somebody here. I mean that that’s just the way it is being done. And I think that would be the way going forward, but it’s just the way it’s worded.
It’s 100 percent the way it’s worded.”
Mr Roker responded that “there’s more clarity that would be required between day charter, term charter, and how that would affect the retail charter”. Meanwhile, Jobeth Coleby-Davis, minister of energy and transport, said she has taken to Cabinet the issue of charter fee reform to better incentivise the use and growth of the Bahamian flag. She said Bahamian-flagged vessels would benefit from a reduced fee.
“We have taken decisive steps to enhance the administration and economic impact of the yacht charter industry,” Mrs
ter yesterday said the Government has acquired four acres of land in Carmichael to construct a new government subdivision that will feature 40 affordable homes.
By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net KEITH BELL
Keith Bell, minister of housing and urban renewal, told the House of Assembly during the 2025-2026 Budget debate that the necessary environmental permits have been secured and construction will begin soon on a parcel of land at Vispen Road has already been cleared.
“I am proud to formally announce that the Government has completed the acquisition of approximately four acres of land on Vispen Road off St Vincent Road for the development of a new government subdivision in Carmichael,” said Mr Bell.
“This will mark the first addition of new government housing in Carmichael in decades; for more than 30 years. The site will accommodate more than 40 affordable homes and we expect to commence construction of the first homes very shortly. We have secured the certificate of environmental clearance (CEC) and the land has already been cleared.”
Mr Bell said the new subdivision will feature both two and three-bedroom
houses plus a condominium complex for participants in the rent-to-own programme.
“This new housing subdivision will feature three-bedroom, two-bath homes as well as two-bedroom, one-bath homes. All will feature quality finishes including 40-year warranty architectural shingles, hurricane impact grade windows and much, much more…,” he added.
“The subdivision will also feature a condominium complex with units targeting persons who want smaller starter homes, all available through the Government’s new rent-to-own programme.”
Mr Bell said rent-to-own homes will also be provided to residents in San Salvador through a new development that is in the final stages.
“In San Salvador, construction is nearing completion on a new cluster of rent-to-own homes. While we encountered delays due to global supply chain challenges and the technical difficulty of building in the Family Islands, we are now
in the final stages of delivery,” he added.
For Eleuthera, additional land will be transferred to the Ocean Hole Subdivision to provide extra housing in South Eleuthera, which is currently facing a housing shortage.
“In Eleuthera, the homes at the Ocean Hole subdivision have been completed and are now occupied, adding much needed additional housing to support the booming economy of Eleuthera,” said Mr Bell.
“The Prime Minister has also consented to the transfer of additional acres in the Ocean Hole Estates in Eleuthera to facilitate the expansion of this residential community for residents in South Eleuthera. This area is experiencing exceptional growth and demand for housing.”
Mr Bell said the rentto-own programme will be expanded in Abaco through new public private partnerships (PPPs). “In Abaco, housing development continues steadily and we have already put families in homes in Central Pines and Spring City through our home and ‘rent to own’ programmes,” he added.
“We are working to expand these housing programmes through new public-private partnerships. These efforts are critical to accelerating post-Dorian recovery and meeting rising demand.”
By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net
A CABINET minister yesterday said the Government is moving to remove derelict vehicles and abandoned or dilapidated properties through legislative changes.
Keith Bell, minister of housing and urban renewal, told the House of Assembly during the 2025-2026 Budget debate that the number of derelict buildings and vehicles in urban areas exposed in the 2025 StreetLevel Survey was “nothing short of alarming”.
He revealed that on the “handful of streets” surveyed some 498 derelict vehicles, 306 abandoned buildings, 165 vacant lots, and 16 roadside garages were identified, and the issue must be dealt with ““decisively”.
“To confront this, we are moving to amend the Real Property Tax Act to deal decisively with derelict and neglected properties that have plagued our communities for far too long. These eyesores attract crime, depress surrounding properties and make neighbourhoods feel abandoned,” said Mr Bell.
“But more than that, they exacerbate the housing crisis by keeping hundreds of potential rental and ownership units off the market. The new provisions will allow for
improved identification, targeted enforcement and provide financial incentives for owners to restore and return these properties to productive use.”
During his contribution, Mr Bell also revealed that ten acres of land has been identified to relocate roadside garages and junk yards.
“Urban Renewal is also working closely with the
Ministry of the Environment to address the vexing issue of road side garages, derelict vehicles and major car Junk yards,” he added. “The Member for Cat Island, Rum Cay and San Salvador, in his capacity as minister of lands, has already consented to the grant of an initial ten acres of land for this purpose.”
By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net
A CABINET minister yesterday disclosed that Grand Bahama students will receive specialised software training to advance farming through a new partnership with a global Agritech company Ginger Moxey, minister for Grand Bahama, told the House of Assembly during the 2025-2026 Budget debate that the Ministry for Grand Bahama has partnered with the Bahamas Agricultural and Marine Science Institute (BAMSI), Bahamas Technical and Vocational Institute (BTVI) and Dimitra to expand opportunities on Family Islands and boost the agricultural sector.
She said the pilot programme will launch in September with 20 Grand Bahama students, and the top ten will be offered employment opportunities.
“The program aligns with our administration’s plan to ‘expand opportunities island by island’. It fulfills the promise we made in ‘Our blueprint for change’ to expand BAMSI’s presence to other Family Islands, invest in the modernisation of our country’s agricultural technology and training, and increase the attraction and mobilisation of our country’s youth to pursue this industry as a career choice,” said Mrs Moxey.
“The pilot cohort will include 20 Bahamian students in Grand Bahama, of whom ten of the topperforming students will be offered employment upon
successful completion of the training.” Mrs Moxey said Dimitra has assisted small farmers globally through its partnerships with governments and non-profits, and if the launch in Grand Bahama is successful the initiative will be replicated on other Family Islands.
“Dimitra is a global Agritech company with a mission to help small farmers across the world. Dimitra works with governments, government agencies, NGOs and forprofit organisations. The Dimitra platform is built on blockchain technology and incorporates mobile technology, machine learning, IT devices, satellite and drone imagery, genomics and advanced farming research.”
that these vessels would now be unable to accept charter bookings for next season unless they left Bahamian waters, resulting in local marinas, provisioners, maintenance and other support services providers losing significant sums of money.
The Association, in its position paper, also suggested that Bahamian brokers are presently unable to hold charter fees in an escrow or fiduciary capacity, and that none are “accredited” with international associations or the MLS (Multiple Listing System) that facilitates charter boat bookings.
“It makes it impossible. The law, effectively the way it is written, if the boat intends to be here from the Christmas winter season to June, no one can book it for next year because the boat is here [in Bahamian waters],” one source told this newspaper. “If effectively means the boat has to leave the marina and cease spending money in The Bahamas to comply.”
However, Peter Maury, the Association of Bahamas Marinas (ABM) president, told Tribune Business he felt the legal reforms are “being taken the wrong way” by the Bahamas Charter Yacht Owners and Managers Association. He added that the different interpretations reflected a lack of consultation with the industry by the Government, which had left the private sector to work out for itself what the changes meant.
And Bahamian yacht brokers argued that the proposed legal reforms will help “keep more boats
in the country” and, in so doing, “snowball into even more opportunities” beyond their profession into sectors such as technical supplies and concierge services.
Lonna Bethel, the Port Department’s assistant controller, in presenting the reforms during Friday’s maritime industry call, said: “This is something a lot of you on the call today probably waited very patiently to hear. We have rescinded the restriction on foreign yacht charter soliciting.
“S you would know that, prior to 2025, the amendments that were tabled, the solicitation of yachts locally was not permitted. Did anyone on the call not know that? You should have known that. Solicitation of yachts was not permitted prior to these amendments.
“However, this has been amended from July 1. Guests can be solicited locally but, but but, but certain things must be in place.” These criteria are that the vessel must be in Bahamian waters, and that the person or entity soliciting the charter, negotiating the contract and responsible for paying due government fees and taxes is a fully-licensed or approved Bahamian citizen or company.
Lieutenant Commander Wright, addressing the seminar briefly on the issue, said: “The bottom line is that the previous foreign yacht charter rules indicated that charters had to originate outside the country. The intent of it is to involve the local charter brokers to be able to get a piece of this pie. That’s it in simple term.”
However, the seminar provided an insight into the confusion that has originated from the private sector being left to figure out for itself the meaning and intent of the Government’s legal reform. One initial point of difference was whether the Boat Registration reforms prevent Bahamian brokers from participating in charter contracts and talks outside The Bahamas, which they do not.
Travis Delva, director of yacht services at Windermere Yacht Services, said of the ‘Bahamian exclusivity’ provision: “What’s happening here is that this is a great opportunity for Bahamians. This has been a long time coming. I’m sure a lot of us on this call can agree.”
And he was backed by Terrane Roker, The Bahamas Yacht Brokers and Agents Association (BYBA) president, who said pushing foreign-flagged charter vessels to register in The Bahamas will create more job opportunities for Bahamian captains and crew to work on these yachts and boats.
“As we keep more yachts in the country, it snowballs into even more opportunities, right?” he added. “There’s so much more opportunities that can be presented and provided once the yacht is located within the country for a long period of time.”
However, the Bahamas Charter Yacht Owners and Managers Association, in its position paper to the Government said that while it understood the Bill’s intent it would likely cause unintended consequences that threaten to inflict severe harm on a charter yacht
industry whose customers inject an average per capita spending into this nation’s economy.
“Discussions with the ABM and BYBA suggest that the Bill’s original goal was to create new opportunities for Bahamian brokerages and yacht services providers, particularly in the day charter space, without undermining the term charter sector that brings long-stay, high-spend visitors to The Bahamas,” the Association argued.
“The intent was to enhance tourism by offering experiences suited to high-end visitors whose needs are not fully met by current local day tour options. This, in turn, would support Bahamian yacht service providers such as marinas, grocers and marine professionals by encouraging foreign vessels to remain in The Bahamas and engage local businesses more frequently.
“As drafted, however, Section 4A would drive term-charter operators from the market before a viable local alternative exists, taking millions of tourism dollars with them... These provisions would significantly disrupt foreignflagged charter operations in Bahamian waters, and appear to overlook both international charter norms and the current capacity of Bahamian brokerages.”
Detailing its concerns in more detail, the Association added that existing gaps in The Bahamas’ infrastructure would drive more charter business to other jurisdictions in the Caribbean. “Globally, yacht charters follow well-established industry standards,” it said.
“They rely on accredited brokers who maintain bonded escrow accounts, meet strict fiduciary standards, use the global charter MLS, and operate under standardised contracts and commissions. These brokers market Bahamian tourism worldwide at no cost to the country.
“No Bahamian brokerage is yet integrated with
this system or equipped to assume the technical, financial and legal responsibilities of marketing and managing international charter bookings. Without a phased transition, Section 4A would sever the link between foreign vessels and their clients - travellers who represent a high-value segment of the market.”
Calling on the Government to ‘grandfather in’ existing charter contracts “to prevent cancellations and preserve The Bahamas’ reputation for hospitality”, the Association added: “This Bill jeopardises hundreds of charter agreements already booked through 2026 and secured by overseas escrow deposits.
“With no grandfathering provisions, visitors face mass cancellations, which would damage The Bahamas’ reputation and create significant revenue loss at a time when the tourism sector is already facing economic headwinds. Accredited charter brokers are already hesitating to place new bookings in The Bahamas because of this pending legislation, redirecting would-be visitors to competing destinations.”
Urging that Bahamian yacht broker exclusivity be phased-in gradually, starting with day charters before expanding this to other areas in the industry, the Association said: “Foreign charter yachts are not self-contained; they are economic engines that inject substantial revenue into the local economy.
“On average, 30-35 percent of gross charter income on yachts below 60 feet LOA (length overall) is spent directly within The Bahamas through taxes, licensing fees and - most importantly - purchases from Bahamian businesses. This includes provisioners, grocers, fuel suppliers, marine technicians, taxi drivers, cleaners, guides, restaurants, laundromats, marinas, inter-island pilots and more.
“The loss of foreign charter activity would be felt
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Mrs Moxey said the Innovate242 Incubator, which will be constructed on the site of the Royal Palm Resort, is being spearheaded by the Tourism Development Corporation and will include representation from several government agencies and the Grand Bahama Port Authority.
“As indicated previously, the Royal Palm Resort on
The Mall Drive, Freeport, has been identified as the home of the Innovate242 Incubator on Grand Bahama. The incubator will be two-fold; it will serve as a ‘creative business centre’ to cater to entrepreneurs as a ‘one-stop-shop’ for business development from concept to launch,” said Mrs Moxey.
“This incubator will also become home to many start-ups on Grand Bahama, providing the
FROM PAGE B1
the ministry does and how it could better serve the industry.”]
Speaking to complaints of infrequent service, Mr Munroe - who serves north Long Island - clarified that the Government only pays mailboats to travel to the islands three times per month. He added that some vessels, including his, make more than three runs but without pay from the Government, noting that the price of fuel presents a challenge for some vessels.
“In addition to that, they were saying infrequent service,” Mr Munroe said. “The Government pays each operator to make three trips per month into these various islands, which means that you have some operators that go every week. That fourth week, and in some cases, the fifth week, when you have months with five weeks, they make two trips without being paid by the Government.
“So a lot of people, they go and make these claims and these accusations in ignorance, not knowing these boats are only obligated to make three trips per month. Now, boats like myself, which is the Island
across multiple sectors, particularly in the Family Islands, where tourism is often the primary economic driver. Preliminary results from our ongoing economic impact survey show that guests on foreign-flagged vessels contribute an average of $2,000 each to the Bahamian economy before accounting for spending on restaurants, souvenirs, pre-/post-charter accommodations and ground transportation.” It compared this to the average $130 per capita spending by cruise passengers, and $2,800 from stopover visitors, and added: “Charter guests are therefore a high-value, low impact visitor group that should be encouraged, not deterred.”
Mr Maury, though, said: “The whole idea is, if we have boats that are here, there’s no point in calling foreign brokers. Previously, the law said you cannot book the boats at all in The Bahamas. This allows the boat to be chartered locally. All they are doing is changing the law so that we can solicit boats.
“All we’re trying to do is add more nights in the marina. The literal interpretation [of the Bill] needs to be redefined so that everyone can agree. When the boat is now here, it’s business we never had because it was against the law..
“The problem is that no one sits down with us to say what is it that the marinas want, what is it that the brokers want? We’re trying to keep the boats in-country so that they spend more money and support shoresupport businesses like provisioners, mechanics and cleaners. We’re trying to get more business from the boats while they are here.”
Mr Maury added that the intent was to drive increased Bahamian participation in the boating/ yachting industry, and not to “rob anyone of business”. He added that “everyone’s going wild with their interpretations” when “the truth is it’s not going to take away from what’s happening”.
necessary resources and buffer as they begin to take flight. The incubator, which is spearheaded by the Tourism Development Corporation in collaboration with the Ministry for Grand Bahama, will include representation from organisations like the Bahamas Development Bank, Small Business Development Centre, Inland Revenue, Bahamas Invest, Licensing Department of GBPA, Invest Grand Bahama, the Bahamas Trade Commission; a creative producer and a technology-based provider.”
Link, we go every week. Every month, we give the residents of Long Island a trip where we are not compensated by government.
“And some months it’s two trips. But they make no mention of that. They just say, ‘infrequent service’ where the Government only pays you to make three trips a month,” Mr Munroe added. “ “The reason why is because the high cost of fuel.
“A lot of these boats cannot afford to go and make a run every week because of the high cost of fuel. So the Government said, ‘Okay, we’ll pay you for the month, but you make three trips to try to help with the high cost of fuel’.”
Mr Munroe said his company, if at fault, reimburses or replaces goods that may have been lost or damaged.
“I don’t know about those other boats with damage or loss, but I don’t know the circumstances surrounding that,” he said.
“But in cases where there is damage or lost goods, and if the boat is, if the company is, is proven to be the cause of it, we reimburse or replace. Now, I don’t know about other operators, but I can speak for myself.”
Mr Munroe added that the Government should address the state of Potter’s Cay Dock, noting “abandoned, derelict vessels”, abandoned containers and trash are plaguing the site and disrupting service.
“What the minister needs to look into is all of these abandoned, derelict vessels at Potter’s Cay Dock,” Mr Munroe said. “That’s what they need to look into. They need to look into all of this garbage that has been accumulating on Potter’s Cay Dock, all the abandoned cars, all of the abandoned boats, all of the containers that don’t even move. It’s just there. Why don’t you address those?
“Why is Potter’s Cay Dock like a big garbage dump? Who’s responsible for keeping the dock clean? Who is responsible for moving all these old containers that are just there. They just sit there and take up much needed space. Who’s responsible for all the sunken boats at Potter’s Cay Dock? Those are the more pressing issues that they need to address.
“You have boats that come in from a voyage and they cannot get alongside the dock to discharge passengers and cargo because there are too many sunken boats, and too many abandoned boats, that are taking up valuable dock space at Potter’s Cay Dock. Those are the issues that need to be addressed before they talk about anything else.”
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governmental and private agencies,” it added.
“It is also important to note that there has not been any explanation or guidance issued regarding how this FDCC will work. Is there going to be an app? A portal? We do not know.”
Summing up, CTS said: “It is unlikely that the FDCC will be of any benefit to attract new pilots to The Bahamas, nor that it will be of any value to most pilots who regularly visit The Bahamas up to two to three times a year.
“There may be a select few operators who have homes, or yachts, in The Bahamas that will make sufficient flights within a two-year period in order for the FDCC to make sense.” The FDCC’s introduction comes after the steady imposition of new and increasing fees on the private aviation sector, and could be a recognition by the Government that it needs to ease the cost burden on the industry.”
Last year, fee increases unveiled as part of the Customs Management
JOBETH COLEBYDAVIS
Coleby-Davis.
“The tabled amendments to the Boat Registration (Yacht) Rules provides that effective July 1, the 14 percent charter fee will be fully payable to the Port Department, eliminating the previous split with the Department of Inland Revenue.
“This change comes directly in response to stakeholder feedback and is part of our broader effort to make compliance easier. Furthermore, I have brought to Cabinet the matter of fee structure reform to better incentivise the use and growth of the Bahamian flag.
“Specifically, we are exploring provisions that would allow Bahamianflagged vessels to benefit from a reduced charter fee, compared to their foreignflagged counterparts. This initiative would be a collaborative effort between the Port Department and the Bahamas Maritime Authority, under the ministry, and aims to grow our yacht registry, increase revenue and expand opportunities for
Bahamians to participate in the sector.”
Mr Roker said there’s “still a lot of misinterpretation now with the Bahamas flag being exempted”. He added: “Right now with the flag, it’s still a lot of misinterpretation now with the Bahamas flag being exempted, I think, from some of the fees which we don’t have all the clarity on as yet. So I can’t really speak on that yet…
“I think all flag states are required, foreign flag, Bahamian flag, I think all of them are still required now, as the law or the policies in place, all yachts and charters within country, I think all of them right now have to pay the 14 percent fees to the Port Department.
“So I think that’s a blanket fee. Until I have complete clarification, I can’t speak to that. My understanding of that is every flag has to pay ... a 14 percent fee, but now to the Port Department and not Inland Revenue- 10 percent and the 4 percent being paid out to the Port Department. So, that’s my understanding, and that’s my interpretation.”
NOTICE is hereby given that REGGIE IVAN JON PALACIO DANLAG of Mackey Street, Twaynan Avenue, New Providence, Bahamas, is applying to the Minister responsible for Nationality and Citizenship, for registration/naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twentyeight days from the 18th day of June, 2025 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
NOTICE is hereby given that ASHLEY LEIGH MALONE of #4 Tower Heights, 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 2025 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
NOTICE is hereby given that
(Amendment) Regulations 2024 represented a threefold and six-fold increase, respectively, on the previous Customs fee structure for private aviation which was $50 “inbound” and zero “outbound”. Now, with the changes, commercial jets had to pay a $50 “inbound” and $50 “outbound” fee for a total of $100. However, a private plane with four seats or less “including all seats in the cabin” is faced with paying $75 each way for a total of $150.
That is slightly more than the $100 fee for a commercial jet, but private aircraft with more than four seats “including all seats in the cabin” now face having to pay $150 “inbound” and “outbound” fees to Customs for a total $300. So-called “recreational” flights will only pay $150 “inbound”, but it is unclear what this definition means and how it will be applied in the absence of any guidance notes. The inbound/outbound fee increases associated with aircraft declarations
tie-in with the Government’s Budget position that certain fees were to be increased to cover the costs associated with providing public services. They also align with the Davis administration’s policy, unveiled in the 2023-2024 Budget, of seeking to increase fees on foreign visitors to The Bahamas while minimising those on Bahamians. The Government likely perceives the private pilot/ aviation industry as having deep pockets, viewing private plane ownership and use as a sign of wealth, and
Met Opera attendance dropped in spring as tourism fell, coinciding with immigration crackdown
By RONALD BLUM Associated Press
Opera season attendance dropped slightly following the Trump administration’s immigration crackdown that coincided with a decrease in tourists to New York.
The Met sold 72% of capacity, matching 202324 and down from its 75% projection.
“We were on track to continue to improve,” Met general manager Peter Gelb said Friday. “We were disappointed by the sales in the last two months of the season — our projections were much higher and I attribute the fact that we didn’t achieve our sales goals to a significant drop in tourism.”
New York City Tourism & Conventions last month reduced its 2025 international visitor projection by 17%, the Met said.
International buyers accounted for 11% of sales, down from the Met’s projection of 16% and from about 20% before the coronavirus pandemic.
“It’s unfortunate, but this is the times in which we live,” Gelb said.
The Met said factoring ticket discounts, it realized 60% of potential income, down from 64% in 202324 but up from 57% in 2022–23.
“We were able to sell an equal amount of tickets the last year, but there were more discounted tickets,” Gelb said. “This really was the result of the last two months of the season.”
There were 76,000 new ticket buyers, a drop from 85,000 in 2023-24, and the average age of single ticket buyers was 44, the same as in the previous season and a drop from 50 before the pandemic. Subscriptions accounted for just 7% of ticket sales, down from 12-15% before the pandemic, Gelb said economic uncertainty impacted sales for next season.
“The stock market jumping up and down made
people feel insecure,” he said. “In one week we saw an enormous decline in our advance for next season. Then it picked up again.”
Met music director Yannick Nézet-Séguin earned $2,045,038 in the year end last July 31, up from $1,307,583, in the previous fiscal year, according to the company’s tax return released Friday. Gelb earned $1,395,216, roughly the same as his $1,379,032 in 2022-23,and he also accrued $798,205 listed as retirement or deferred compensation.
able to easily absorb the fee increases laid out in the Customs Management (Amendment) Regulations 2024. They also include a $2,500 fee that will be levied if an aircraft declaration is submitted less than one hour before the plane arrives in The Bahamas. However, the economic impact generated by private pilots and their guests is especially significant in the Family Islands where they help to spread and diversify the wealth. Their spending boosts the likes of hotels, vacation rentals, tour operators, ground transportation providers and restaurants.
Among individual productions last season, the highest percentage of tickets sold were for the English-language version of Mozart’s “The Magic Flute” and a new staging of Verdi’s “Aida,” both at 82%, followed by the company premiere of Jake Heggie’s “Moby-Dick” at 81%
Other new productions included Strauss’ “Salome” (74%), John Adams’ “Antony and Cleopatra” (65%), Osvaldo Golijov’s “Ainadamar” (61%) and Jeanine Tesori’s “Grounded” (50%).
The best-selling revivals were Puccini’s “Tosca” (78%), Tchaikovsky’s “Pique Dame (The Queen of Spades)” and Puccini’s La Bohème (77% each), Beethoven’s “Fidelio” and Rossini’s “Il Barbiere di Siviglia” (76% each) and Mozart’s “Le Nozze di Figaro” (71%).
Assets declined by about $40 million to $467 million, primarily because of an endowment draw following the pandemic.
NOTICE is hereby given that SHELDON RECARDO GAYLE of P.O. Box N7945 Blue Hill South, Se e ill i 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 18th day of June 2025 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
NOTICE is hereby given that ELIJAH MCINTOSH of P.O.Box EE15850, Yuma Estates, 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 2025 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
NOTICE is hereby given that CLAUDNEE DUFLEURAND of Hawksbill, Bimini Place, Grand Bahama, 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 2025 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
NOTICE is hereby given that PETRISHA LOUISSAINT of #8A Dumping Ground Corner, New Providence, 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, 2025 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
POSSNELLO LOUISSAINT of #8A Dumping
Providence,
is applying to the
responsible for
Corner,
and Citizenship, for
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, 2025 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
By HYUNG-JIN KIM, KIM TONG-HYUNG and KATIE MARIE DAVIES Associated Press
NORTH Korea will send thousands of military construction workers and deminers to support reconstruction work in Russia's Kursk region, a top Russian official said Tuesday, the latest sign of expanding cooperation between the two nations.
North Korea has already supplied thousands of combat troops and a vast amount of conventional weapons to back Russia's war against Ukraine.
In April, Pyongyang and Moscow said that their soldiers fought together to repel a Ukrainian incursion into Russia's Kursk border region, though Ukraine has insisted it still has troops present there.
Wrapping up a one-day visit to Pyongyang, Russian Security Council Secretary Sergei Shoigu said that North Korean leader Kim
Jong Un decided to send 1,000 sappers to clear mines in the Kursk region and 5,000 military construction workers to restore infrastructure there, according to Russia's state news agency, Tass.
Another Russian state news agency, RIA Novosti, carried a similar report.
"Following the expulsion of invaders from Russian soil, we've agreed to continue our constructive cooperation, with the Korean side providing assistance in the restoration of the Kursk region," Shoigu said, according to RIA Novosti. "This is a kind of brotherly aid being sent by the Korean people and their leader, Kim Jong Un, to our country."
Shoigu said that Moscow and Pyongyang agreed to erect memorials in both countries in honor of North Korean soldiers who died while fighting in the Kursk region, according to Tass and RIA Novosti.
North Korea's official Korean Central News Agency said Wednesday that Kim confirmed the contents of North Korea's cooperation with Russia with regard to Kursk's current situation but didn't mention the dispatch of army construction workers and deminers cited by Russian media.
KCNA quoted Kim as expressing his resolve to "invariably and unconditionally support" what he called Russian efforts to defend its sovereignty and territorial integrity. Kim has previously made similar comments in support of Russia's war on Ukraine.
KCNA also said that Kim and Shoigu approved some plans for "conveying long the heroic feats displayed by" North Korean troops in operations to liberate the Kursk area, an apparent reference to the memorial construction plan.
North Korea and Russia have never disclosed how many North Korean troops
have been sent to Russia or how many of them were killed. But according to South Korean, U.S. and Ukraine assessments, about 15,000 North Korean soldiers have been deployed to Russia. South Korea's spy agency said in April that about 600 North Korean soldiers died on the RussiaUkraine battlefronts.
The deepening ties between North Korea and Russia have raised worries among the U.S., South Korea and their partners that Russian President Vladimir Putin may in return provide Kim with much-needed sophisticated
technologies that can help advance his nuclear and missile programs.
The two countries, both in confrontations with the U.S. and its allies, have sharply grown closer to each other in recent years.
In 2024, Kim and Putin signed a landmark defense treaty that requires each side to provide aid if the other is attacked.
It was Shoigu's third visit to North Korea in about three months. The two countries have exchanged high-level visits in past years, with Kim travelling to Russia in 2023 and Putin to North Korea in
2024. Many observers say Kim could soon
said that 15,000 North Korean laborers have also been sent to Russia under bilateral industrial cooperation programs, according to lawmakers who attended the briefing.
By ALEXA ST. JOHN Associated Press
TAX credits for clean energy and home energy efficiency would still be phased out, albeit less quickly, under Senate Republicans' latest proposed changes to a massive tax bill. Electric vehicle incentives and other provisions intended to move the United States away from fossil fuels would be gutted rapidly.
Senate Republicans cast their version of the bill as less damaging to the clean
energy industry than the version House Republicans passed last month, but Democrats and advocates criticized it, saying it would still have significant consequences for wind, solar and other projects.
Ultimately, wherever Congress ends up could have a big impact on consumers, companies and others that were depending on tax credits for green energy investments. It could also impact long-term how quickly America transitions to renewable energies.
"They want everybody to believe that after the flawed House bill, that they have come up with a much more moderate climate approach," said Sen. Ron Wyden of Oregon, the top Democrat on the finance committee, during a conference call with reporters Tuesday.
"The reality is, if the early projections on the clean energy cuts are accurate, the Senate Republican bill does almost 90%" as much damage as the House proposal, added Wyden, who authored clean energy tax credits included in the 2022 Inflation Reduction Act passed during former President Joe Biden's term.
"Let's not get too serious about this new Senate bill being a kinder, gentler approach."
Whether all of the changes will be enacted into law isn't clear yet. The Senate can still modify its proposals before they go to a vote. Any conflicts in the draft legislation will have to be sorted out with the House as the GOP looks to fast-track the bill for a vote by President Donald Trump's imminent Fourth of July target. Notably, many Republicans in Congress have advocated to protect the clean-energy credits, which have overwhelmingly benefited Republican congressional districts. A report by the Atlas Public Policy research firm found that 77% of planned spending on crediteligible projects are in GOP-held House districts. The clean energy tax credits stem from Biden's climate law, which aimed to boost to the nation's transition away from planet-warming greenhouse
gas emissions and toward renewable energy such as wind and solar power.
The House version of the bill took an ax to many of the credits and effectively made it impossible for wind and solar providers to meet the requirements and timelines necessary to qualify for the incentives. After the House vote, 13 House Republicans lobbied the Senate to preserve some of the clean energy incentives that GOP lawmakers had voted to erase.
Language included Monday in the reconciliation bill from the Senate Finance Committee would still phase out — though more slowly than House lawmakers envisioned — some Biden-era green energy tax breaks.
The Senate proposal further "achieves significant savings by slashing Green New Deal spending and targeting waste, fraud and abuse in spending programs while preserving and protecting them for the most vulnerable," said Sen. Mike Crapo, R-Idaho and chairman of the committee.
On the chopping block are tax credits for residential rooftop solar installations, ending within 180 days of passage, and a subsidy for hydrogen production. Federal credits for wind and solar would have a longer phaseout than in the House version, but it would still be difficult for developers to meet the rules for beginning construction in order to receive the credit.
At the same time, it would boost support for geothermal, nuclear and hydropower projects that begin construction by 2033.
"The bill will strip the ability of millions of American families to choose the energy savings, energy resilience, and energy freedom that solar and storage provide," said Abigail Ross Hopper, president and CEO of the Solar Energy Industries Association. "If this bill passes as is, we cannot ensure an affordable, reliable and secure energy system." Opponents of the Senate's text also decry domestic manufacturing job and economic losses as a result.
By STAN CHOE AP Business Writer
U.S. stocks slumped on Tuesday under the weight of another jump for the price of oil. It was a return to form for financial markets after Wall Street's worries about Israel's fighting with Iran had seemed to calm a bit on Monday.
The S&P 500 fell 0.8% following signals that the Israel-Iran conflict may be worsening and that one of the U.S. economy's main engines is weakening. The swing sent Wall Street's main measure of health nearly back to where it started the week.
The Dow Jones Industrial Average dropped 299 points, or 0.7%, and the Nasdaq composite fell 0.9%.
Stocks sank under increasing pressure from crude oil prices, which climbed in their latest see-saw move. A barrel of benchmark U.S. crude jumped 4.3% to $74.84. Brent crude, the international standard, added 4.4% to $76.45 per barrel. Their gains accelerated after President Donald
Trump raised the temperature on Israel's fight with Iran by calling for "UNCONDITIONAL SURRENDER!" on his social media platform and saying, "We are not going to" kill Iran's leader, "at least for now."
Before that, Trump had left a Group of Seven summit early and warned that people in Iran's capital should evacuate immediately. It took only about eight hours for Trump to go from suggesting a nuclear deal with Iran remained "achievable" to urging Tehran's 9.5 million residents to flee for their lives.
The fighting has the potential to drive up prices for crude oil and gasoline because Iran is a major producer of oil, and it sits on the narrow Strait of Hormuz, through which much of the world's crude passes. Past conflicts in the area have caused spikes in oil prices, though they've historically proven to be only temporary after showing that they did not disrupt the flow of oil.
Often, higher oil prices can help stocks of companies in the solar industry
because they increase the incentive to switch to alternative energy sources. But solar stocks tumbled Tuesday because of the possibility that Congress may phase out tax credits for solar, wind and other energy sources that produce fewer emissions that change the Earth's climate.
Enphase Energy dropped 24%, and First Solar fell 17.9%.
Treasury yields also fell in the bond market after a report said shoppers spent less last month at U.S. retailers than the month before and than economists expected. Solid such
spending has been one of the linchpins keeping the economy out of a recession, but part of May's drop may have simply been a return to more normal trends.
In April, some shoppers had rushed to buy automobiles to get ahead of Trump's tariffs.
"Today's data suggests consumers are downshifting, but they haven't yet slammed the brakes," according to Ellen Zentner, chief economic strategist for Morgan Stanley Wealth Management
On the winning side of Wall Street was Jabil, which jumped 8.9% after
reporting a stronger profit for the latest quarter than analysts expected. CEO Mike Dastoor credited strength from accelerated demand related to artificialintelligence technology, among other things.
Verve Therapeutics soared 81.5% after Eli Lilly said it would buy the company developing genetic medicines for cardiovascular disease in a $1 billion deal that could be worth up to $1.3 billion if certain conditions are met. Lilly's stock fell 2%.
All told, the S&P 500 lost 50.39 points to 5,982.72.
The Dow Jones Industrial Average dropped 299.29 to 42,215.80, and the Nasdaq composite sank 180.12 to 19,521.09.
All the action took place as the Federal Reserve began a two-day meeting on interest rates. The nearly unanimous expectation among traders and economists is that the Fed will make no move.
The Fed has been hesitant to lower interest rates,
and it's been on hold this year after cutting at the end of last year, because it's waiting to see how much Trump's tariffs will hurt the economy and raise inflation. Inflation has remained relatively tame recently, and it's near the Fed's target of 2%. More important for financial markets on Wednesday will likely be the latest set of forecasts that Fed officials will publish for where they see the economy and interest rates heading in upcoming years. In the bond market, the yield on the 10-year Treasury eased to 4.38% from 4.46% late Monday. In stock markets abroad, indexes fell across much of Europe after finishing mixed in Asia. Tokyo's Nikkei 225 index rose 0.6% after the Bank of Japan opted to keep its key interest rate unchanged. It's been gradually raising its rate from near zero and cutting back on its purchases of Japanese government bonds to help counter inflation.
