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WEDNESDAY, JULY 11, 2018

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Atlantis ‘strong’: Up 27% with Baha Mar

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

T

OP Atlantis executives “feel strongly” that Baha Mar’s emergence will not impact their long-term performance after net operating income jumped 27 percent for the 2018 first quarter.

The Paradise Island resort’s confidence in its ability to see-off its Cable Beach rival was revealed as its owner, Brookfield

* Resort undergoes $1.85bn debt refinance * Eyes making Beach Towers all-inclusive * Brookfield invests $213m since takeover

ATLANTIS PARADISE ISLAND

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‘Weigh in’ over business licence reform alternatives

AUDREY Oswell, Atlantis’ managing director

Asset Management, moved to complete a $1.85bn refinancing of Atlantis’s debt.

The third such financial restructuring to occur in the six years since Brookfield took over Atlantis’s ownership from Kerzner International via the 2012 debt-for-equity swap, resort management is also

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

mulling whether to convert the Beach Towers into an all-inclusive property to “increase value and capture greater revenue”.

The revelations were contained in a July 9, 2018, “presale” report by Morningstar Credit Ratings, the

Aviation, would read and “see the benefits” of acting on the recommendations from the CDB’s study of the region’s Air Transport Competitiveness and Connectivity.

The report, obtained by Tribune Business, suggests that The Bahamas will be the

THE private sector is being urged to “weigh in” and influence government policy on alternatives to the much-maligned business licence fee by providing hard, scientific data.

Edison Sumner, pictured, the Bahamas Chamber of Commerce and Employers Confederation’s (BCCEC) chief executive, said the survey on Taxation of Businesses in The Bahamas gives the private sector “the opportunity to do something about it rather than standing on the side”.

A major focus of the survey, released just prior to the Independence Day holiday, is to obtain business feedback on the best potential replacement for the business licence fee.

Some form of corporate

SEE PAGE 10

SEE PAGE 5

SEE PAGE 4

‘Bang on’ over $415m aviation boost for GDP

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

RESEARCH showing The Bahamas will enjoy a $415m economic boost if it participates in Caribbeanwide aviation reform has been branded “bang on” by a local airline’s principal.

Captain Randy Butler,

* 16,000 BAHAMIAN JOBS IF REFORMS ARE MADE * TAXES UP TO 43% OF AIRLINE TICKET PRICES pictured, Sky Bahamas’ chief executive, told Tribune

Competition watchdog won’t be a ‘lame duck’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net UPDATED Bahamian competition legislation is designed to prevent the regulator from becoming a “lame duck” by setting out in extensive detail how it conducts investigations.

KL Menns, the government’s Brussels-based competition law adviser, in a footnote to the draft Bahamas Fair Competition Bill 2018 said he had deliberately written the legislation this way to guard against attorneys using “procedural hurdles” to stall or thwart

investigations of corporate anti-competitive practices.

He added that his experience had shown this resulted in competition law failing to achieve its stated objectives, especially in developing nations where regulatory bodies typically lacked the necessary financial and human resources, plus relevant experience in dealing with the subject matter.

“It has been the experience of the consultant that new (young) competition authorities in the

SEE PAGE 11

Govt urged: Treat fiscal responsibility like VAT hike

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net GOVERNANCE reformers yesterday urged the government to treat the Fiscal Responsibility Bill with “the same urgency” as the VAT increase given the extra “sacrifice” demanded from taxpayers.

Matt Aubry, the Organisation for Responsible Governance’s (ORG) executive director, told Tribune Business he was “hoping something comes out before the next round of sessions [of Parliament] and before they

break for summer”.

The House of Assembly is back in session today, and Mr Aubry argued that the 60 percent hike in the VAT rate had increased the urgency for the government to demonstrate it was fulfilling its fiscal consolidation obligations by bringing the bill into law.

“What I heard last was I received a letter from the Minister of Finance [KP Turnquest] acknowledging they had receive our comments, and were waiting on comments from a few other groups,” he said.

SEE PAGE 11

Business that the findings of a Caribbean Development Bank (CDB) study were “all on target, all on point” when it came to identifying the potential impediments to significant job and GDP growth opportunities.

He said he was “praying” that Dionisio D’Aguilar, Minister of Tourism and

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THE TRIBUNE

Realtor: Economic citizenship can lower Bahamian tax burden A PROMINENT realtor has renewed his call for The Bahamas to introduce economic citizenship, arguing it will create a new revenue source and lessen the tax burden on Bahamians.

Mario Carey, the founder of Better Homes and Gardens Real Estate MCR Bahamas Group, says such a programme should target top-end investors by mandating that they make a sizeable investment in an approved Family Island project in order to qualify for a Bahamian passport.

“The formula I’m proposing is a two-step process.

The investor purchases land or a residence, that’s the first part, and secondly, they contribute funds to a specially-created fund that provides for three specific needs - hurricane and disaster relief and recovery; national development; and the National Health Fund,” said Mr Carey.

“These figures could be adjusted in a further discussion, but I would recommend considering a $750,000 purchase and a minimum contribution of $1m to the fund, which lies outside the Consolidated Fund.”

Mr Carey suggests a minimal time frame for an investor to be present on the Bahamian island of their choice also be considered. “The investor would be required to spend at least 90 days in The Bahamas annually, demonstrate that their presence is resulting in additional employment, and would not be able to sell their property for at least five years without an appeal in extenuating circumstances,” he said.

“Again, I think it is really important to stress that this would apply only to approved projects or purchases in the Family Islands,

MARIO CAREY and could be the economic shot in the arm they need, helping to stem the tide of people turning to Nassau for jobs.

“It could lead to better education, improved healthcare and other positive outcomes for Family Islands. Based on other countries’ experiences, we would not be likely to attract more than 350-400 persons per year, a number the country could easily absorb and should readily welcome.”

Countries around the world – including the US, UK, Canada and Australia - have adopted various forms of economic citizenship programmes. But the concept has proven especially popular in the Caribbean, where several countries have used investor funds to recover from the devastation of hurricanes and other natural disasters.

“The objective is not to compete with St Kitts, Barbados and Grenada, where for less than half a million dollars an investor could purchase citizenship,” Mr

Carey said. “The Bahamas can command more.”

Antigua and Barbuda, St Lucia, Dominica, St Kitts and Nevis and Grenada all offer economic citizenship which could come in one of three ways: A financial contribution to a national development fund, real estate investment, or by establishing a business. For most nations, paying into the fund offers the cheapest route, although residency requirements sometimes apply.

Processing time for the region takes three months on average.

The most popular entry into Antigua’s citizenship by investment programme is a $100,000 investment in the National Development Fund for a family of four, with an associated fee of $25,000. That figures jump to $200,000 for citizenship in Grenada and Dominica, not including additional expenses.

St Kitts and Nevis is the world’s first citizenship by investment programme.

Foreigners must invest into

the Sustainable Growth Fund – $150,000 for a single applicant, and $195,000 for a family of four. Last September, St Kitts allowed investors to gain citizenship by donating $150,000 to the Hurricane Relief Fund. That initiative expired in March.

Although St Kitts and Nevis has been offering its programme since 1984, todate only 11,000 foreign investors have become Kittitans, an average of 324 per year.

Mr Carey said the scale of The Bahamas’ fiscal crisis, with a national debt of $7.8bn and debt-to-GDP ratio of 67.8 percent, means it has no choice but to explore alternative revenueraising mechanisms such as an economic citizenship programme.

“The Bahamas has dug itself into a deep financial hole. Even if we were now to live within our means and utilize the VAT increase to pay down debt, we would still find ourselves in a financial bind for years and years to come,” he argued.

“What we need now is new money, a new source of revenue as opposed to borrowed funds and our heavy reliance on tourism and financial services... The government has to decide whether it wants to continue hitting the pockets of the Bahamian people for money that is simply not there, or raise revenue in the least economically harmful manner, through an Economic Citizenship Programme.

“There may be pushback from an emotional standpoint, but from where I sit, it is essential that we collect more dollars to improve our aging infrastructure and essential government services such as health and education. A well-constructed Economic

Citizenship Programme will generate economic growth.”

Brent Symonette, minister of financial services, trade and industry and Immigration, last year told Tribune Business that the Minnis administration presently has no plans to look at implementing an investor citizenship programme.

He said the government was instead focused on ensuring permanent residency applications are “expedited”.

So-called “investor citizenship” programmes have been mulled and floated in the past, most recently

by Sean McWeeney QC, a former attorney general and key advisor to ex-premier Perry Christie. The idea was ultimately ruled out by the former administration, with ex-financial services minister, Hope Strachan, stating such an initiative was “not so palatable” in the current environment.

It would have eventually granted citizenship to a limited group of individuals, once they met certain criteria, including a high multi-million dollar investment threshold.

Those qualifying for such a programme would essentially have to invest in Bahamasbased developments and companies that created local jobs, but Mr McWeeney’s proposal drew a mixed reaction from the Bahamian private sector in mid-2014.

Concerns have been raised over the transparency and accountability surrounding such investor/ economic citizenship programmes, which have also drawn the attention of regulators and law enforcement agencies in nations such as the US on the grounds that citizenship is being “bought”.

For a high net worth individual (HNWI), a second

citizenship in the right jurisdiction can improve financial security through strategic tax planning opportunities.

For those hailing from a less politically or economically stable region, an alternate passport provides a sense of security along with an escape route in order to avoid political persecution or conflict in war-torn areas.

The right passports provide visa-free entry into well over 100 countries.

In the case of the US, economic citizenship is possible through the EB-5 Green Card by Investment Programme. It requires the foreign entrepreneur to invest anywhere from $500,000 to $1m with evidence that the investment capital was obtained by lawful means. The investor has to live in the US as a permanent resident for a minimum of five years.

In Canada, the path to economic citizenship comes through the Quebec Immigrant Investor Program (QIIP), which caps the amount of applications it receives annually to just under 2,000 applicants. Foreign investors must have a legally obtained minimum net worth of CAD $1.6m, and have to reside in Canada as a permanent resident for at least three years.

In the UK, investors with at least £2m in investment funds can apply for economic citizenship via a tier one investor visa. And in Australia, economic citizenship is attainable through the country’s investment-based, three-step immigration process for obtaining citizenship. The investor must possess a net value of at least $600,000A.

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Wednesday, July 11, 2018, PAGE 3

INVESTMENT BANK UNVEILS NEW RETIREMENT PRODUCT A BAHAMIAN investment bank has launched a new retirement account to help retirees fund their retirement, called the Royal Fidelity Personal Retirement Account.

Royal Fidelity Merchant Bank & Trust (Bahamas) said it had investigated pensioners’ needs before developing a product targeted at new and existing retirees with a minimum of $100,000, and who want to generate attractive returns on their pension funds.

In the absence of a salary or living on a reduced one, the investment bank believes its personalised, flexible-term investment account provides a viable alternative to annuities.

Cleora Farquharson, RoyalFidelity’s assistant vice-president of pension services, introduced it at the institution’s recent pensions and retirement seminar.

“It’s a sophisticated product created to take the place of annuities,” said Ms Farquharson, “and has been designed to be flexible enough to suit a person’s changing needs.

The product is innovative

ROYAL Fidelity president, Michael Anderson, with Beverly Saunders, vice-president of human resources at Cable Bahamas; Senator Jennifer Isaacs-Dotson; and director of labour, John Pinder, during the recent launch of the Royal Fidelity Personal Retirement Account. as it provides retirees with a steady source of income whilst continuing to generate excellent returns on their investment in one or more of Royal Fidelity’s investment funds. Additionally, beneficiaries are named and listed when the account is opened as an added ‘peace of mind’ benefit.”

She added: “We assess the financial needs with each client, noting their monthly bills and likely

expenses, then set up an income schedule. Their lump sum is invested, put to work in one of our six Royal Fidelity funds, providing the opportunity to grow the lump sum in retirement and not just deplete it.

This helps counter inflation and gives the client a sense of well-being about their financial position.”

Royal Fidelity’s president, Michael Anderson, said the investment bank is currently managing

Exuma still concerned over tragedy fall-out

By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net CONCERN persists on Exuma over potential tourism fall-out from the recent boating tragedy, although the island’s Chamber of Commerce president says there have been no mass cancellations yet.

“Predictably there are some concerns about what impact this accident would have on their business. To this point there’s been no mass cancellations, but

concerns are being expressed both nationally and internationally,” said Pedro Rolle.

Exuma’s largest tour operator, Four C’s Adventures, has been issued a cease and desist order to suspend operations pending an investigation into the accident that killed one American woman, caused another to lose both of her legs and injured nine other people.

The group was touring with when one of the boat’s engines exploded, police said. The explosion happened within minutes of the

tour’s launch.

“It appears the immediate concern is not so much the cancellation of existing bookings but the possibility of those who may have been considering or intending to book - would they still come or go elsewhere? Note that this accident occurred to one of our more professional and consistent operators, and it speaks to the need for continued vigilance in this industry both by operators and regulators,” said Mr Rolle.

pension assets worth more than $200m for a number of institutional and individual pension clients.

“This is our 20-year anniversary, and we’re marking the milestone with this

brand-new product which we believe will help to fuel our growth for the next 20,” said Mr Anderson.

“We’re attracting new clients with the Personal Retirement Account, as it appeals to people who’ve already managed to accumulate pension savings over the years and are struggling to find an opportunity to continue generating attractive returns whilst taking an income.

“People buying annuities at the moment are tying themselves to very low rates of return for the period of their annuity, and with banks typically paying less than one percent, people are looking for alternatives.

The Personal Retirement Account offers a really flexible and attractive-return alternative for them. And retirees can continue to add funds from any source into this retirement plan to help build their retirement fund

and earn decent returns.”

Mr Anderson said RoyalFidelity has raised more than $1.6bn in capital for Bahamas-based businesses over the past 20 years, enabling these companies to expand while creating investment opportunities for investors looking for better returns on their funds.

He added that RoyalFidelity currently manages more than $700m in assets, and has assets under administration of over $1.6bn.

“We’re gratified that Royal Fidelity has been able to play such a major role in the development of the Bahamian capital markets over the last 20 years, and I’m optimistic for the future of capital markets in The Bahamas and the other areas in the Caribbean region where Royal Fidelity operates,” Mr Anderson added.

PAGE 4, Wednesday, July 11, 2018

THE TRIBUNE

Atlantis ‘strong’: Up 27% with Baha Mar FROM PAGE ONE

investment analysis firm which assigned the highest “triple-A” rating to the most senior financing tranches in Atlantis’s multi-billion dollar debt move.

Morningstar, which toured Atlantis on May 14-15 this year, and held talks with senior management

including president and managing director, Audrey Oswell, disclosed that “the largest topic of discussion was the impact of the opening of Baha Mar”. It branded the latter as “the biggest threat to Atlantis’ performance”.

Concerns have been voiced ever since the Baha Mar project was unveiled in 2004-2005 that it would split,

rather than grow, the market for high-end stopover visitors with Atlantis, resulting in a situation where both mega resorts “cannibalised” each other’s business and engaged in a “race to the bottom” on price by discounting room rates.

Morningstar, though, appears to have been reassured that Atlantis will be able to withstand the

challenge from Cable Beach by both the Paradise Island resort’s strong winter 2018 performance and its more diverse visitor base.

Its representatives even toured Baha Mar during the same Nassau visit, and found: “We observed that it is designed to cater more to affluent adults and millennials rather than to families.

“With accommodations at varying price points and activities catering to children as well as adults, Atlantis is able to draw demand from a diverse set of groups, appealing to families and individuals alike. Further, Baha Mar does not offer the extensive on-site water and marine attractions that are key demand and revenue drivers at the Atlantis.”

Turning to the optimism of Atlantis executives, Morningstar added: “Management feels strongly that Atlantis will maintain its operating performance on a long-term basis given the resort’s brand affiliation with Marriott’s Autograph Collection; the property’s superior overall amenities and activities package; increased airlift capacity at LPIA; and the potential to increase visitation by cruise ship passengers.

“Management also shared financial information which shows that despite the opening of Baha Mar and additional displacement of rooms down for renovation at Atlantis, net operating income at the property increased by approximately 26.6 pecent ($10.4m) in the first quarter of 2018 as compared to the first quarter of 2017.”

Morningstar added that Atlantis’s annual net operating income had increased by 22 percent, or almost $30m, in the six years since Brookfield replaced Kerzner International as the Paradise Island resort’s owner.

“Since the sponsor [Brookfield] took ownership of the property it has invested approximately $213m in capital improvements, which have contributed to the increase in the property’s net operating income from approximately $133.2m in 2012 to approximately $162.6m as of the trailing 12-month period ending March 2018,” the analyst’s report said.

“Notable projects include a soft goods renovation at The Cove and The Beach [Towers], a casino renovation including a high-limit gaming salon, new restaurants, lobby refurbishments, and pool renovations including the addition of new cabanas and daybeds.

“From 2016 to

2017, [Brookfield] invested approximately $25.4m ($40,448 per room) on a comprehensive renovation of the Coral [Towers]. The renovation was completed, and all rooms have returned to full operation as of June 2018. [Brookfield] has budgeted approximately $8m (approximately $32,000 per room) for a 2018 renovation of approximately 250 rooms at The Royal Towers, which will include a replacement of both soft and case goods.”

The Royal Tower renovations will take place in fall 2018, with an extra $4.6m to be spent this year to complete the Coral Towers upgrades. Morningstar said Atlantis management also divulged their strategy for the Beach Towers, and their “potential release” from the collateral securing the $1.85bn refinance.

“The Beach is located at the eastern portion of the property and is somewhat isolated/distant from the main attractions of the resort (water park, casino),” the report said. “The tower has its own pool and two integrated food and beverage outlets.

“Part of its business plan includes the possibility of renovating the tower to create an all-inclusive resort concept where guests would have exclusive access to the food and beverage options at the tower plus ability to pay for use of the Aquaventure water park, as well as additional dining options at the resort.

“As the Beach [Towers] is the lowest ADR (average daily rate) tower, guests typically have lower ancillary spend and the sponsor believes it could increase value and capture greater revenue with an all-inclusive option,” Morningstar continued.

“Given the large amount of capital expenditures that would be required to complete such a project, which would not be permitted under typical loan documentation, the sponsor [Brookfield] would instead be able to release the Beach Tower if it elected to pursue this strategy.”

Morningstar described the Royal Towers as looking “a bit dated and worn but still showing well”, hence the need for the upcoming $8m renovation. It noted the resort’s diverse income streams, with room revenue generating just 28.2 percent of total revenues between 2013 and 2017. Food and beverage, and the casino, held a 27.9 percent share and 18.9 percent respectively.

“From 2014 through 2017, 42.9 percent of guests at

the resort have been families travelling with at least one child under the age of 17,” Morningstar’s report revealed. “The property’s amenities include an approximately 60,000 square foot casino; 40 food and beverage outlets; approximately 500,000 square feet of meeting and convention space; 39 retail outlets; a 62-slip marina; a 141-acre waterpark; a 14-acre dolphin habitat; and the largest openair marine habitat in the world which encompasses 14 lagoons, holds approximately eight million gallons of ocean water and provides a habitat for over 50,000 aquatic animals representing over 250 marine species.

“The property has a diversified revenue stream as a result of the resort’s amenity base. Since 2013, room revenue has averaged 28.2 percent of total revenue at the property, with the remaining 71.8 percent of revenue coming from the resort’s amenities and other sources. Visitors from cruise ships generate a substantial amount of revenue at Atlantis as various packages are sold that provide for the use of resort amenities while the ship is docked during the day.

“Atlantis is able to capitalise on cruise ship demand for the resort’s multiple experiences through numerous package offers, and is also able to control cruise ship access to prevent overcrowding. Although the high level of non-room revenue could be viewed as a risk because of its greater historic volatility, it benefits the property by diversifying cash flow, with both guests and nonguests willing to pay a fee for access to the extensive list of amenities.”

Atlantis’s customer base remains dominated by US visitors, who accounted for 87.5 percent of room night demand in 2017. Guests from Canada and the UK totalled 7.4 percent of 2017 room night demand, resulting in approximately 94.9 percent of the property’s guests arriving from the US, Canada and the UK,” Morningstar added.

The Atlantis refinancing includes a $1.2bn mortgage secured on the resort’s Paradise Island real estate assets, plus three tranches of inferior mezzanine debt financing worth a collective $650m.

Morningstar said one of the concerns with the refinancing is that it returns some $149m to Brookfield.

“With less skin in the game, the sponsor [Brookfield] may be less likely to support the loan during a protracted downturn,” it warned.

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THE TRIBUNE

Wednesday, July 11, 2018, PAGE 5

China joins 20 most ‘WEIGH IN’ OVER BUSINESS LICENCE REFORM ALTERNATIVES innovative economies, US falls to No six FROM PAGE ONE

NEW YORK Associated Press CHINA joined the world’s top 20 most innovative economies for the first time while the United States fell out of the five top-ranked countries, according to a report released yesterday by one of its co-sponsors, the UN intellectual property agency.

The Global Innovation Index 2018 keeps Switzerland in the No 1 spot, followed by the Netherlands, Sweden, United Kingdom and Singapore.

The United States fell from fourth place in 2017 to sixth this year, while China jumped from 22nd to 17th in the rankings.

Francis Gurry, director general of the U.N. World Intellectual Property Organization, said China’s ranking represents a breakthrough for its economy, which is rapidly transforming and prioritising research and ingenuity.

“China’s rapid rise reflects a strategic direction set from the top leadership to developing world-class capacity in innovation and to moving the structural basis of the economy to more knowledge-intensive industries that rely on innovation to maintain competitive advantage,” Gurry said. “It heralds the arrival of multipolar innovation.”

Now in its 11th edition, the index ranks 126 economies based on 80 indicators ranging from the creation of mobile applications to education spending, scientific and technical publications, and intellectual property filing rates.

The index is sponsored by the WIPO, Cornell University’s SC Johnson College of Business and INSEAD, the graduate school of business with campuses in France, Singapore and Abu Dhabi.

They say it gives global decision makers a better understanding of how to stimulate innovation, which “drives economic and human development”.

The report said “China’s innovation prowess becomes evident in various areas,” with some of its greatest improvements in global research and development companies, high technology imports, the quality of its publications, and enrollment in graduate education.

“In absolute values, and in areas such as R&D expenditures and the number of researchers, patents and publications, China is now first or second in the world, with volumes that overshadow most high income economies,” it said.

The report said that China’s rapid rise in the rankings over the last few years has been spectacular and that it shows the way for other middle-income economies, though only Malaysia, currently 35th in the rankings, continues to edge closer to the top 25.

According to the index, 20 middle and lowerincome economies that perform “significantly better” than their level of development would predict made this year’s list of “innovation achievers”, including three for the first time — South Africa, Tunisia and Colombia.

Six of the achievers come from sub-Sahara Africa, the most for any region.

taxation, or a profit-based fee, are two of the alternatives under consideration as replacement for the existing turnover-based tax.

Mr Sumner said the survey results would provide data for the government’s consultants, the UK arm of the Deloitte & Touche accounting firm, on which to base their studies and recommendations for Bahamian tax reform.

“We’ve been asked, because we’re the private sector’s representative, to gather information from the business community on their impressions and opinions on the tax infrastructure of the country as a whole,” Mr Sumner said of the survey, “but, more specifically, to look at whether consideration should be given to implementing some form of income or corporate tax as opposed to the current business licence fees.”

He added that the business community is being asked to “weigh in” on whether these options were viable alternatives to the business licence fee, which is widely viewed as distortionary because it penalises high-turnover/low profit firms and either taxes companies into a loss or levies more than they make in annual profits.

The Chamber chief said the ultimate goal was to “put in the best and most viable tax regime we can”, enabling the government to collect all due revenues in the most efficient manner while allowing businesses to maximise their profits.

“This is one of those areas where the business community may be able to affect the policy of the government going forward to determine, if we’re looking at alternatives to business licence fees, if any other mechanisms should be considered to lessen the burden on the business community so businesses can operate more profitably,” Mr Sumner told Tribune Business.

“We’ve been hearing, and advocating consistently, that the business licence structure is untenable, it’s unsustainable for many businesses, and that many are paying more in fees than they take home in profits.

“This [survey] gives everyone a wonderful opportunity to weigh in and let us know if the approach the government is taking is a viable approach and, if not, let’s consider alternatives.

That’s one of the things the deputy prime minister has challenged the Chamber on; to come back with our own recommendations. This is something pressing on the government’s agenda.”

The business licence fee’s calculation on gross turnover is viewed as penalising high turnover, low margin businesses while favouring low turnover businesses that are more profitable. Tribune Business has received complaints from numerous companies that they pay more in annual business licence fees than they do in profits, and/or that the fees push them into losses.

Michael Maura, the Chamber of Commerce’s chairman, told Tribune

Business before the 20182019 budget that “a real hard look” was needed at reforms to the business licence fee structure, although nothing was announced then.

The government appears to considering change in the context of wider potential tax reform, with Deloitte & Touche’s work also focusing on the implications of impending World Trade Organisation (WTO) membership and the pressures on the financial services industry.

KP Turnquest, deputy prime minister, told Tribune Business in a recent interview that the government is aware of the business licence fee’s “unfairness” - especially where high turnover, low margin businesses such as food stores and gas stations were concerned.

Emphasising that the government remains committed to addressing this, Mr Turnquest also acknowledged the need for certainty and predictability with a Bahamian tax system that is frequently tinkered with in the annual budget.

“We’re very cognisant, if you will, of the unfairness of the tax,” he said of the business licence. “This is one of the reasons we are having the study done to see how we can make the tax more progressive.

“It is an important consideration for us. This was one of the things we promised in our campaign; to look at the fairness of the business licence fee, particularly as it relates to high turnover, low margin businesses.

“We believe,

fundamentally, that no tax should be so burdensome that it creates a negative cash flow and puts businesses into a loss. Whatever changes we make have to be incremental and be well thought-out.”

The Chamber, in releasing the survey to its members, said: “Deloitte & Touche has been commissioned by the Ministry of Finance to perform an exploratory study on whether the existing business licence fee could be replaced by a profit-based fee or corporate tax. This is argued to be less distortive than the current business licence fee, as it is levied on profits rather than turnover.

“The objective of this study is to develop and evaluate options for replacing the business licence fee.

This will include considering the tax base, the rate, the deductions and exemptions that may be applied, and options for reporting and collection. Deloitte & Touche will then estimate the viability of these options, including the potential revenue impacts, costs of implementation to government and businesses and the impact on the wider economy.”

The survey is aiming to generate information that will be used to determine “potential revenues and the impact on businesses’ activity and margins” from the various reform options, as well as the effects on various industries from a profit-based corporate tax.

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Recruiter To find the best and brightest talent to join our team. We provide a challenging, driven, results-oriented environment where creative, goal-oriented, self-confident, high achievers succeed.

Main Duties & Responsibilities: • Managing all stages of the hiring process including candidate sourcing, screening, interviewing, negotiating, extending offers, securing new hire acceptances, background checks and completing post hire follow ups • Evaluating candidate's work history, education, training, job skills, compensation requirements, and abilities • Creating internal and external job posting • Documenting and tracking statistics and data pertinent to each position • Solid understanding of employment law, recruitment, staffing metrics and HR related practices • Preparing assigned monthly, quarterly and annual HR reports • Demonstrated ability to manage high volume of recruitment within strict scheduling requirements • Keeping abreast of current market trends and identify potential impacts on hiring decisions • Maintaining a network of potential hires in advance of requisitioned needs • Conducting regular follow-up with managers to determine the effectiveness of recruiting plans and implementation • Assisting with benefits administration

Requirements / Qualifications: • 3-5 years of recruiting experience a must • Strong analytical skills • Excellent communication skills both oral and written • Ability to multi-task in a fast paced environment • Excellent administrative skills and proficiencies in Microsoft Office Suite Programs

• Strong leadership abilities • Analytical with strong negotiation skills

A detailed position announcement is available online at: http://www.ub.edu.bs/about-us/career-opportunities/

• Efficient and detail oriented • Must be able to identify and resolve problems in a timely manner.

HUMAN RESOURCES Re: Recruiter careers@fidelitybahamas.com

Among the duties and responsibilities are: • Advance the mission, vision, and short- and long-term goals of the University in concert with the University President and Senior Administrative Colleagues; • Work closely with the President in all phases of his advancement and campaign leadership activities; • Serve as a member of the University Leadership Team and maintain close working relationships with members of the Board of Trustees and key alumni/parents/friends; • Maintain a dynamic portfolio of high net worth individuals and secure major, capital, and planned gifts, as well as advance annual gifts and endowment support; • Participate in strategic discussions and develop programs to strengthen the financial resources of the University and all University Centres of Excellence; • Create and execute fundraising plans that utilize best practices in annual, major, and planned gift programs to meet fundraising goals; • Ensure dynamic processes in all phases of donor qualification, cultivation, solicitation, and stewardship; • Prepare for the upcoming campaign through comprehensive and effective campaign planning and execution; • Hire, train, inspire and guide direct reports and the entire advancement team toward accountable, goal-oriented outcomes; • Develop annual plans and budgets for Alumni and Parent Relations, Annual Fund, Gift Planning, Comprehensive Campaigns, Major Gifts, Grants Development, Stewardship and Advancement Services; • Engage University faculties, colleges, schools, programmes, and centres of excellence, and enhance the culture of philanthropy. Maintain cooperative working relationships with faculty, coaches, and campus departments whose cooperation is essential to effective outreach and fundraising.

Qualifications The successful candidate must have a minimum of ten years of managerial experience as a fundraising and/or advancement executive and a Masters Degree.

• Ability to work in a self-motivated environment with little supervision

PLEASE SUBMIT BEFORE July 13th, 2018 to:

Vice President for Advancement and Alumni Affairs will be responsible for designing and implementing comprehensive institutional advancement programmes and recruiting and developing talented team members focused toward the ultimate goal of significantly increasing constituent involvement and fundraising outcomes. The advancement function includes responsibility for annual fund, corporate and foundation relations, major gifts and gift planning, endowment, capital campaigns, and alumni and constituent relations efforts, stewardship, and other advancement services; namely, Office of University Relations.

ABSOLUTELY NO PHONE CALLS

A competitive compensation package will be commensurate with relevant experience and qualification. Fidelity appreciates your interest, however, only those applicants short listed will be contacted.

Applicants should electronically submit via hrapply@ub.edu.bs, to the attention of the Vice President, Human Resources the following documents: • A cover letter of interest highlighting work experience and accomplishments relevant to the position; • A completed UB Employment Application Form http://www.ub.edu.bs/wp-content/uploads/2017/01/Application-for-Employment-Staff.pdf;

• Current Curriculum Vitae or Resume; • Copy of the relevant pages of a valid passport showing passport number, photo identification and expiration date; • The names and contact information of three professional references.

E-mail: hrapply@ub.edu.bs Attention: President and C.E.O. - University of The Bahamas DEADLINE TO APPLY: 25TH JULY 2018

PAGE 10, Wednesday, July 11, 2018

THE TRIBUNE

‘Bang on’ over $415m aviation boost for GDP FROM PAGE ONE greatest economic beneficiary among the CDB’s borrowing members - with the creation of 16,370 total jobs - if this nation and the region target three key areas for reform.

These are reduced taxes and fees/charges, which will lower air fare costs and boost passenger demand; greater liberalisation and an improved regulatory environment through Caribbean nations harmonising their rules; and greater efficiency in airport and airline operations.

The CDB study, using estimates for air passenger traffic to all Caribbean nations in 2025 without any reforms as its base, developed its economic forecasts on the elimination of taxes on flights between countries in the region. It also assumed that taxes on international flights would be cut by 25 percent, and airport charges reduced to about $30.

Other assumptions included in its modelling included lower airline costs from improved regulation/ harmonisation, with aviation liberalisation to increase passenger demand by 30 percent. And improved airport and airline operations, via “smarter and greater” use of technology and infrastructure, were forecast to boost traffic by a “conservative” ten percent.

“While each of the policy reforms will be expected to have an impact individually, the greatest impacts will result from implementation of a coherent and holistic strategy,” the CDB study’s authors wrote.

“The improvements from the combined scenario would allow for greater economies

of scale and greater freedom for carriers to expand their services, thereby stimulating the growth of passenger traffic and, in turn, the expansion of viable direct services into and within the Caribbean.

This would result in time savings for passengers.”

Should change in all three areas be achieved, the report found that The Bahamas would enjoy the greatest economic impact through a $415m gross domestic product (GDP) expansion and the creation of over 16,000 jobs.

It estimated that air arrivals to this nation would increase by 1.058 million or 42 pecent above baseline, with the majority - 901,035 - coming from abroad and representing the high-spending stopover tourists The Bahamas is targeting.

Captain Butler, who has previously called for reform in all three areas identified in the study, told Tribune Business of its findings: “I think they’re bang on. All on target, all on point. We’ve been talking about this for years, and I hope the government takes this study and looks at it.

“I endorse this study, and pray the minister see the benefits of it. We cannot live this out by ourselves. We’re part of a global village, and have to participate or get out.”

Air connectivity is essential to the Bahamian economy as it provides the means for 1.5 million higher-spending stopover visitors to access this nation’s tourism product, as well as bring in air cargo for the smooth functioning of commerce.

Improvements in connectivity, especially those related to competitiveness issues such as prices and efficiency, are thus vital to fostering the greater transportation links

that the Bahamian economy relies upon.

The CDB study, though, showed that taxes and fees continue “to make up a large portion of the overall ticket price” on flights from The Bahamas to both international and regional destinations.

Using data provided

by Bahamasair and other sources, it revealed that such charges accounted for 43 percent - or $158.13 of a $371.13 full fare - from Nassau to Providenciales in Turks & Caicos.

As for international routes, the study cited a flight from Nassau to JFK Airport in New York. It said taxes and fees accounted for 32 percent, or $155.51, of the $483.51 air fare. The percentage accounted for by taxes/ fees was in line with the Caribbean regional average.

Captain Butler told Tribune Business that this taxation/fee burden was much higher in The Bahamas and wider Caribbean compared to that faced by international carriers on their inbound flights.

“You can go from Fort Lauderdale on almost any given day to Nassau for $69,” he said. “You cannot go to Fort Lauderdale from Nassau for anything less than $200. The fees and charges and taxes are just too much.”

The Sky Bahamas chief has in the past expressed concern about the continual increases in passenger and airline fees imposed by the Nassau Airport Development Company (NAD), although the airport operator has produced benchmarking statistics showing the burden is in line with the regional average.

Cutting such fees, as suggested by the CDB report,

NOTICE

NOTICE is hereby given that LUBIN LOUIS of Pinedale off Wulff Road, 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 4th day of July, 2018 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

could be especially problematic for NAD given that they generate the revenue used to service the debt taken on to finance Lynden Pindling International Airport’s (LPIA) $409.5m redevelopment.

Captain Butler, meanwhile, said the CDB report had failed to account for The Bahamas’ unique geography and the additional taxes/fees incurred by passengers transiting Nassau on their way to the Family Islands.

He pointed to San Andros, a destination 12 minutes’ flight from Nassau, yet costing passengers $85 “each way” as one example of this cost burden. The Sky Bahamas principal also cited Freeport as “the only airport in the region that charges holiday fees, time-and-a-half, and you cannot pass it on to your passengers”.

The Bahamas at yearend 2017 had 11 air services agreements (ASAs) in place with countries ranging from Brazil to Australia, New Zealand and Qatar. These enable the movement of passengers and goods between countries, and the CDB study identified them as key to moving to “open skies agreements” where airlines can fly to any point in participating nations.

“Many studies from around the world have found that air service liberalisation led to increased competition in markets, providing greater choice and lower fares for passengers, both for business and for leisure,” the report added. “As a result, connectivity increased, which in turn created further opportunities for air traffic volumes to increase.

“The Caribbean is yet to experience such liberalisation, but some progress has been made. Although the

1996 CARICOM Multilateral Air Service Agreement (MASA) was not fully ratified, a revised MASA was signed by a number of CARICOM member states in February 2018, and the Heads of Government urged countries to take steps towards implementation.

“If fully implemented, the MASA will expand ‘the scope for airlines owned by CARICOM nationals to provide air services throughout the 15-member grouping’ and ‘allow for no restriction on routes, capacity or traffic rights’.”

Captain Butler, though, said The Bahamas appeared to be going in the opposite direction with tighter regulation and control. He added that changes to air fares, and the approval of new routes, still had to be approved by the Minister of Aviation and the Bahamas Air Transport Advisory Board.

“The rest of the world is going to open skies; we’re going to closed skies,” Captain Butler lamented to Tribune Business. He added that regulatory harmonisation was not being aided by The Bahamas’ decision to remain outside the Caribbean Aviation Safety and Security Oversight System (CASSOS), a body dedicated to achieving such objectives.

The Sky Bahamas chief said this nation’s aviation

sector was incurring higher inspection and other costs because it was unable to access the resource sharing available through CASSOS. “Aviation is, almost by definition, a global industry.

It is also highly regulated,” the CDB study said. “This creates a requirement for regulatory harmonisation to ensure efficient operations but also to avoid contradictions and inconsistencies, as well as duplication of cost and time.

“The regulatory framework across the region is not harmonised. The complexity of complying with different laws, regulations and regulatory practices adds to airline costs, and in some cases places direct limits on airlines’ ability to provide service.

“This lack of harmonisation is exacerbated by the proliferation of authorities and agencies that regulate different aspects of the aviation sector, meaning that airlines in the region interact on a day-to-day basis with a myriad of bodies.”

The report described this as “a tacit form of protectionism”, with airlines deterred from entering new markets by the time, cost and bureaucracy associated with obtaining regulatory approvals.

NOTICE

NOTICE is hereby given that MAUDE AUGUSTIN of Elizabeth Estate, 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 3rd day of July, 2018 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

MARKET REPORT THURSDAY, 5 JULY 2018

t. 242.323.2330 | f. 242.323.2320 | www.bisxbahamas.com

BISX ALL SHARE INDEX: CLOSE 1,986.97 | CHG -0.01 | %CHG 0.00 | YTD -76.60 | YTD% -3.71 BISX LISTED & TRADED SECURITIES 52WK HI 4.50 19.17 7.50 4.00 1.48 0.19 4.00 9.10 6.60 5.30 11.00 2.71 1.77 8.21 6.21 11.48 7.29 13.67 12.51

52WK LOW 3.50 17.43 7.50 3.32 0.90 0.12 3.00 8.50 6.00 3.15 9.00 2.30 1.40 7.25 6.00 9.50 5.67 3.25 12.50

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

1050.00 1000.00 1000.00 1000.00

1000.00 1000.00 1000.00 1000.00

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

PREFERENCE SHARES

1.00 103.00 100.00 106.00 105.00 103.00 100.00 10.00 1.01

1.00 100.00 100.00 100.00 100.00 100.00 100.00 10.00 1.00

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

E J K L M N

CORPORATE DEBT - (percentage pricing) 52WK HI 100.00

52WK LOW 100.00

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

SECURITY Fidelity Bank Note 22 (Series B) +

SYMBOL FBB22

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

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

BAHAMAS GOVERNMENT STOCK - (percentage pricing) 115.92 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

104.79 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

MUTUAL FUNDS 52WK HI 2.15 4.16 2.00 179.39 157.58 1.55 1.70 1.64 1.10 6.99 8.54 6.15 10.52 11.46 10.46

52WK LOW 1.67 3.04 1.68 164.74 116.70 1.49 1.62 1.58 1.07 6.41 7.62 5.66 8.65 10.54 9.57

LAST CLOSE 4.45 17.43 9.09 4.00 1.01 0.18 3.00 9.10 6.14 4.20 10.90 2.57 1.70 7.96 6.10 11.20 6.32 3.65 12.51

CLOSE 4.45 17.43 9.09 4.00 1.01 0.18 3.00 9.10 6.14 4.20 10.90 2.56 1.70 7.95 6.10 11.20 6.32 3.65 12.51

CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -0.01 0.00 -0.01 0.00 0.00 0.00 0.00 0.00

1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.40 100.00 100.00 100.00 10.00 1.00

1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.40 100.00 100.00 100.00 10.00 1.00

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

LAST SALE 100.00

CLOSE 100.00

CHANGE 0.00

107.54 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

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

107.54 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

FUND CFAL Bond Fund CFAL Balanced Fund CFAL Money Market Fund CFAL Global Bond Fund CFAL Global Equity Fund FG Financial Preferred Income Fund FG Financial Growth Fund FG Financial Diversified Fund FG Financial Global USD Bond Fund Royal Fidelity Bahamas Opportunities Fund - Secured Balanced Fund Royal Fidelity Bahamas Opportunities Fund - Targeted Equity Fund Royal Fidelity Bahamas Opportunities Fund - Prime Income Fund Royal Fidelity Int'l Fund - Equities Sub Fund Royal Fidelity Int'l Fund - High Yield Fund Royal Fidelity Int'l Fund - Alternative Strategies Fund

VOLUME

200 100 200

VOLUME

EPS$ 0.361 0.932 -0.306 0.283 -0.973 0.000 -0.996 0.638 0.573 0.171 0.627 0.102 0.231 0.000 0.545 0.679 0.610 0.277 0.631

DIV$ 0.080 1.130 0.000 0.230 0.000 0.010 0.000 0.320 0.220 0.120 0.620 0.060 0.070 0.084 0.320 0.500 0.200 0.120 0.580

P/E 12.3 18.7 N/M 14.1 N/M N/M -3.0 14.3 10.7 24.6 17.4 25.1 7.4 N/M 11.2 16.5 10.4 13.2 19.8

YIELD 1.80% 6.48% 0.00% 5.75% 0.00% 5.56% 0.00% 3.52% 3.58% 2.86% 5.69% 2.34% 4.12% 1.06% 5.25% 4.46% 3.16% 3.29% 4.64%

0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

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

INTEREST Prime + 1.75% 6.95% 4.00% 4.25% 4.25% 4.50% 4.50% 6.25% 6.25% 4.00% 4.25% 4.50% 6.25% 3.50% 3.88% 4.25%

NAV 2.15 4.12 2.00 179.39 153.02 1.55 1.69 1.64 1.09 7.15 8.14 6.41 11.26 11.68 10.24

YTD% 12 MTH% 1.55% 4.09% -0.45% 4.34% 0.84% 2.31% 0.39% 5.05% -0.25% 4.57% 1.29% 4.18% -0.61% 2.84% 1.02% 3.84% -0.87% 1.82% -1.08% 1.77% -5.96% -3.05% 1.90% 4.59% 7.24% 11.96% 2.77% 3.88% 3.94% 4.69%

Production Editor

MATURITY 19-Oct-2022 20-Nov-2029 30-Jul-2018 16-Dec-2019 30-Jul-2020 15-Dec-2021 30-Jul-2022 15-Dec-2044 30-Jul-2045 26-Jun-2018 26-Jun-2020 26-Jun-2022 26-Jun-2045 15-Oct-2018 15-Oct-2020 15-Oct-2022 NAV Date 31-May-2018 31-May-2018 31-May-2018 31-Mar-2018 31-Mar-2018 30-Apr-2018 30-Apr-2018 30-Apr-2018 30-Apr-2018 30-Apr-2018 30-Apr-2018 30-Apr-2018 30-Apr-2018 30-Apr-2018 30-Apr-2018

MARKET TERMS BISX ALL SHARE INDEX - 19 Dec 02 = 1,000.00 52wk-Hi - Highest closing price in last 52 weeks 52wk-Low - Lowest closing price in last 52 weeks Previous Close - Previous day's weighted price for daily volume Today's Close - Current day's weighted price for daily volume Change - Change in closing price from day to day Daily Vol. - Number of total shares traded today DIV $ - Dividends per share paid in the last 12 months P/E - Closing price divided by the last 12 month earnings

The Tribune is seeking a

YIELD - last 12 month dividends divided by closing price Bid $ - Buying price of Colina and Fidelity Ask $ - Selling price of Colina and fidelity Last Price - Last traded over-the-counter price Weekly Vol. - Trading volume of the prior week EPS $ - A company's reported earnings per share for the last 12 mths NAV - Net Asset Value N/M - Not Meaningful

The successful applicant will have; • At least ten years of senior management experience in newspapers with a regional daily or national paper, • Proven ability to lead and manage staff in a developing multi-media environment including video, internet and mobile, • Hands-on experience across all multi media platforms and strong social media background, •

First-class professional credentials including the ability to write well, oversee and design attractive broadsheet and tabloid pages and write eye catching headlines

• Full working knowledge of Apple Mac, InDesign and Photoshop software

Apply in writing, with full CV, examples of work, to

hr@tribunemedia.net TO TRADE CALL: CFAL 242-502-7010 | ROYALFIDELITY 242-356-7764 | FG CAPITAL MARKETS 242-396-4000 | COLONIAL 242-502-7525 | LENO 242-396-3225

before July 12, 2018.

THE TRIBUNE

Wednesday, July 11, 2018, PAGE 11

Competition watchdog won’t be a ‘lame duck’ FROM PAGE ONE

in several developing countries. Indeed, some procedural challenges owing to lack of understanding of competition law enforcement procedure in common law countries has led to competition authorities becoming ‘lame duck’ institutions.”

Mr Menns cited one case from Jamaica to illustrate his point, and added: “To curb those challenges, which can be costly, and to answer to the ever-present challenge of lack of financial resources to properly hire qualified persons or to train staff, the consultant has included detailed rules to guide every step of the case initiation, investigation and resolution/decisionmaking process.”

The government issued the updated Bahamas Fair Competition Bill 2018 for wide release late last week, following a series of late June workshops in its contents. The release also came after Michael Maura, the Chamber of Commerce’s chairman,

expressed concern to this newspaper about the contents of the original 2007 draft legislation when it was sent to him.

It is unclear why Mr Maura only received the 2007 draft, but the Ministry of Financial Services, Trade and Industry and Immigration said those concerns have been overtaken by the new bill. It revealed that Mr Menns, a competition lawyer, had been hired in late 2017 to draft the latest version following an assessment of existing Bahamian law, policies and industries.

The Ministry added that the legislation was needed for The Bahamas’ accession to full World Trade Organisation (WTO) membership, and also to fulfill its obligations under the Economic Partnership Agreement (EPA) signed with the European Union (EU) in 2008. Feedback is being requested by August 3 this year.’

The Bill, which proposes the creation of a Fair Trading Commission to act as

The Bahamas’ competition watchdog, is designed to protect Bahamians by guarding against abuses and distortionary practices from rogue businesses that undermine consumer welfare.

It is typically intended to prevent, and punish, practices such as collusion by firms that results in price-fixing or restricting the availability of particular products and services.

Abuse of a dominant market position, and mergers and acquisitions that may be against the public interest, are also covered by this legislation.

“Examples of the types of agreements that restrict or distort trade typically include: Price fixing agreements, production quota agreements, geographic market divisions, bid-rigging agreements, tied selling and collective arrangements among suppliers to directly or indirectly fix the resale price of a good or service,” the Bill’s footnotes state.

Mergers/acquisitions that result in the combined entity obtaining “at least 40 percent share of any market, or such other amount of the market as the Minister, acting in consultation with the Commission, may prescribe” is one of the criteria that will result in the deal being referred to the Fair Trading Commission for further scrutiny, according to the bill.

The legislation, according to the footnotes, will also apply to foreign mergers and acquisitions that affect the supply of goods into The Bahamas. “The conduct of multinational corporations—where those corporations sell goods in or into The Bahamas, is covered under this Act,” the footnotes state.

“For example, if GLAXO-SMITH KLINE is merging with a North American company, and that company sells pharmaceuticals, for example, in or into The Bahamas, then that merger may be subject to the merger review and

control procedures under this Act.” The Ministry added in its statement: “Competition law and policy is an essential element of markets working efficiently. It seeks to promote competitiveness and brings important benefits to consumers by encouraging efficiency of firms, enterprise, innovation, and a widening of choice; enabling consumers to purchase better quality products and lower prices; and creating opportunities for small and medium-sized businesses to grow.

“These benefits are achieved through the enactment of three main rules, namely a rule prohibiting abusive market conduct by a single dominant player in the market; a rule prohibiting anti-competitive agreements which restrict trade in the market; and a rule requiring that mergers that can lead to a reduction of competition in the market be subject to review and resolution by the competition authority.”

Govt urged: Treat fiscal responsibility like VAT hike

the country’s fiscal affairs.

“Last year, Mr Turnquest committed to implementing ‘fiscal rules’ ahead of the 2018-2019 budget cycle to address issues of expenditure and financial management, and to bridge the trust gap between the people and their government,” said Mr Aubry in a statement.

“We applaud that a Fiscal Responsibility Bill was introduced in March of this year, and that time was allotted for review and feedback from the private sector, civil society and the people. However, in keeping with the spirit of the Minister’s intentions to usher in a new era of fiscal discipline and accountability with the new budget, we hope to see the revised legislation tabled and debated in the House of Assembly in the coming weeks.”

He added that the Fiscal Responsibility Bill’s passage had been made even

more urgent by the VAT rate increase and additional hardship being imposed on the Bahamian people.

“As the budget has, on relatively short notice, required a sacrifice from the Bahamian people in the way of higher taxes, it is only fair that the government match it with equal priority and swiftness in the implementation of a Fiscal Responsibility Bill’ to ensure the sound governance of this additional revenue,” Mr Aubry said.

ORG also called for a more robust, codified system of penalties/incentives to be included in the revised draft as a means to crack down on irresponsible fiscal behaviour.

“We are hoping to see in the new legislation that civil society feedback has been thoughtfully considered and incorporated, particularly ORG’s suggestions to strengthen the Bill through the development of

penalties and the reinforcement of the Fiscal Council,” Mr Aubry said.

“ORG’s analysis of the Bill collected feedback from ORG expert committees, members, civil society partners, and members of the public, and expresses the anxiety that many feel that the bill, if left without punitive measures, may end up unenforced like the Public Disclosure Act and other similar legislation.”

ORG previously warned that the Fiscal Responsibility legislation could be “ineffective” without tougher sanctions due to “The Bahamas’ poor history of non-compliance with similar laws”.

It also called for the independent, five-member Fiscal Responsibility Council that currently has just an oversight and advisory role to have more power to “proactively contribute to fiscal strategy and decisions, and enforce its

advice, recommendations and decisions”.

“Throughout the Bill there is a noticeable lack of reference to penalties or incentives to encourage compliance and rectify behaviour in the implementation of fiscal responsibility and discipline processes,” ORG said. “Where there is mention of penalty, said penalties are not defined or codified and are left to Ministerial discretion, allowing room for uneven or unfair application, or the perception thereof...

“Given The Bahamas’ poor history of compliance with similar reporting laws, such as public disclosure, there is concern that without methods of enforcement there is a risk that the Fiscal Responsibility Bill could ultimately be ineffective despite its thorough reporting mandates and methodically outlined goals.”

developing world that have relatively low financial resources to implement a law, attract suitably qualified human resources and to undertake extensive knowledge transfer and training required of its competition agency staff and judiciary, require a more detailed/expansive rules framework to curb procedural mistakes that can lead to a nullification of a decision of the competition authority or the court,” Mr Menns wrote.

“It is the practice of legal practitioners in the developing world to hinder the development of competition law practice through the use of procedural hurdles and challenges to bad legal procedure (or ‘ultra vires’ actions on the part of the competition authority) to thwart the substantive conclusion of a case.

“This practice has led to failure to achieve the goals of competition law

FROM PAGE ONE

“Those comments were being evaluated now, and there would be a revised draft coming out soon.

We’ve had a chance to talk to him, and he’s acknowledged some of the stuff sent in. I know they’ve got recommendations from the Bar and others.”

Mr Aubry said the government had shown every sign of realising this was “a critical piece of legislation they need to get in place, and added: “The deputy prime minister and others seem very focused on this.

“We’re hoping it moves as expeditiously as possible, and we’re looking forward to seeing what comes out of this so we have strong and enforceable Fiscal

Responsibility legislation in place for the coming year.”

ORG, though, in a statement released yesterday, urged: “The implementation of the Fiscal Responsibility Bill should be treated with at least the same level of urgency as the short-notice imposition of the VAT increase.”

It called for the legislation to be passed by Parliament before the summer recess, a target that is also in keeping with the deputy prime minister’s goal. Mr Turnquest told Tribune Business he wanted the bill passed by then, or immediately following its return in the fall, given the “trust deficit” that has arisen between the government and Bahamian people over management of

PAGE 12, Wednesday, July 11, 2018

THE TRIBUNE

UK prime minister seeks to stem Cabinet exodus over Brexit woes LONDON Associated Press BRITISH Prime Minister Theresa May insisted yesterday that her plan to retain close ties with the European Union “absolutely keeps faith” with voters’ decision to leave the bloc, as she tried to restore government unity after the resignations of two top ministers over Brexit.

May has spent the past few days fighting for her political life as first Brexit Secretary David Davis and then Foreign Secretary Boris Johnson quit, saying May’s plans for future relations with the European Union did not live up to their idea of Brexit. On yesterday, two more lawmakers followed them out the door.

Johnson sent an incendiary resignation letter on Monday accusing May of killing “the Brexit dream” and flying “white flags” of surrender in negotiations with the European Union.

May, who has tried to keep calm and carry on, replaced Johnson with a loyalist, former Health Secretary Jeremy Hunt, and gave Davis’ job to Dominic Raab in a bid to shore up her authority.

She held a meeting of her new Cabinet on yesterday before attending a Western Balkans summit in London with other European leaders.

May’s plan seeks to keep the UK and the EU in a free-trade zone for goods, and commits Britain to maintaining the same rules as the bloc for goods and agricultural products.

At a news conference on yesterday, May maintained her plan “absolutely keeps faith with the vote of the British people”, ending free movement of people

BRITISH Prime Minister Theresa May has met with her Cabinet as she tries to restore government unity after the resignations of two top ministers over Brexit. Yesterday’s meeting comes after Foreign Secretary Boris Johnson and Brexit Secretary David Davis quit, saying May’s plans for future relations with the European Union don’t live up to their idea of Brexit. from the EU, taking Britain out of European court jurisdiction and saving the “vast sums of money” that Britain pays as a member.

“But we will do this in a way which will be a smooth and orderly Brexit, a Brexit that protects jobs, protects livelihoods and also meets our commitment to no hard border” between the UK’s Northern Ireland and EU member Ireland, she said.

Many pro-Brexit lawmakers are furious at a plan they say will stop Britain forging an independent economic course. Two Conservative lawmakers, Maria Caulfield and Ben Bradley, quit as vice-chairs of the party on yesterday over opposition to May’s

proposals. Bradley called on May to “deliver Brexit in spirit as well as in name”.

But senior pro-Brexit Cabinet ministers said they supported May and would not resign. Asked if he was planning to quit, environment Secretary Michael Gove said “absolutely not.”

Conservative lawmaker Michael Fallon, an ally of May, dismissed Johnson’s “Brexit dream” rallying cry.

“Dreaming is good, probably for all of us, but we have to deal with the real world,” he said.

Under Conservative Party rules, a confidence vote in a leader can be triggered if 15 percent of Conservative lawmakers — currently 48 — write a

letter requesting one.

Fallon warned Conservative rebels that a challenge to May’s leadership is “the last thing we need”.

Two years after Britain voted 52 percent to 48 percent to leave the European Union, May is trying to find a middle way between two starkly differing views — within her party and the country — of the UK’s relationship with Europe.

Pro-Europeans want to retain close economic ties with the bloc and its market of 500 million people, while some Brexit supporters want a clean break to make it possible to strike new trade deals around the world.

The British government

is due to publish a detailed version of its plans on tomorrow. The EU says it will respond once it has seen the details.

“It’s a good thing that we have proposals on the table,” German Chancellor Angela Merkel said at the Balkans summit in London.

She said the 27 other EU nations would “table a common response to those proposals”.

The resignations rocked May in a week that includes a NATO summit starting today and a UK visit by US President Donald Trump beginning tomorrow.

The trans-Atlantic relationship has had some awkward moments since Trump’s election. He has

criticised May over her response to terrorism and approach to Brexit, and infuriated many in Britain when he retweeted a farright group.

Asked yesterday whether May should be replaced as prime minister, Trump said it was “up to the people, not up to me”.

“I get along with her very well, I have a very good relationship,” he said.

He was more enthusiastic about Johnson, calling him “a friend of mine”.

“He’s been very, very nice to me, very supportive. Maybe I’ll speak to him when I get over there,” Trump said.