08042020 BUSINESS

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business@tribunemedia.net

TUESDAY, AUGUST 4, 2020

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GB small businesses need $15m ‘bail-out’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE government was yesterday urged to make a $15m “bailout” fund available immediately to prevent Grand Bahama small businesses already “on their last legs from going belly up”. Carey Leonard, pictured, the Callenders & Co attorney, speaking ahead of the

two-week national lockdown imposed last night by the prime minister, said many entrepreneurs on the island - now in the second week of its own shutdown were staring “three strikes and your out” squarely in the face. Having been hit by both Hurricane Dorian and the initial COVID19 restrictions, followed by

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Gas station dealers eye 45-50% margin growth By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net PETROLEUM dealers want “at least a 45-50 percent” margin increase if gas stations are to remain open once the COVID-19 pandemic has come to an end. Vasco Bastian, the Esso station owner at East Street and Soldier Road, told Tribune Business: “We still want that margin increase after COVID-19. If you want all of these gas stations to remain open in The Bahamas you have to consider the margin increase sooner rather than later. “We are here to provide a service to the Bahamian people. We need at least a 45 to 50 percent margin increase, or convert the current formula to a percentage base, bearing in mind we have a minimum percentage base and factoring any type of gross operation growth or additional operational cost over time in the future. So you have to convert the fixed margin to a percentage base, based on the future price index and the future cost increase.” “We in this business are heavily regulated by

government,” Mr Bastian added. “So government basically sets the price of gas. Government gets nearly $2 per gallon of gas, the wholesalers get 33 cents and the retailers get 54 cents. It is similar on diesel. “At the end of the day, you may as well say we are working for the government indirectly. The government is reaping more benefits from the petroleum people than the actual people who have invested their money, the time and the effort.” Gas station operators are effectively in a volume business due to the price controls imposed by the government on their business. However, while margins have remained fixed, dealers have had to contend with minimum wage and national insurance increases and the rising cost of purchasing fuel. Mr Bastian added: “The last time we had an increase was when Hubert Ingraham was prime minister, so it had to be at least eight or nine years ago. We had a margin increase and he still owes us five percentage points from that. He said he would

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Economy ‘dodges bullet’ over Isaias By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

C

ABINET ministers and private sector executives yesterday said the Bahamian economy had “dodged a bullet” after Hurricane Isaias inflicted minimal damages and loss on this nation. K Peter Turnquest, deputy prime minister, told Tribune Business that the storm had “for sure given us quite a reprieve” with no indication yet that it will cause any adjustments to

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K PETER TURNQUEST

• DPM hails ‘reprieve’ for public finances • Chamber chief brands ‘gift of the year’ • But Bahamas facing new lockdown

the government’s spending plans and allocations just one month into its 20202021 fiscal year. He was echoed by Jeffrey Beckles, the Bahamas Chamber of Commerce and Employers Confederation’s (BCCEC) chief executive, who described the storm’s outcome as “the gift of the year” given that the private sector and wider country

had all been bracing for a major hit given initial projections of its path and intensity. That collective assessment, though, occurred before the prime minister announced a new two-week national lockdown even tighter than the restrictions initially imposed in late March and early April in a bid to counter the second

wave of COVID-19 infections now spreading rapidly through New Providence, Grand Bahama and multiple other islands (see other article on Page 1B). Mr Turnquest acknowledged any further lockdown, which included “limitations on commerce”, would have an impact on the

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Hope for ‘strategic’ lockdown dashed By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

CALLS for the prime minister to avoid a “one-size fits all” national lockdown to curb COVID-19’s second wave were dashed last night after he imposed more severe restrictions than in

the first shutdown. Robert Myers, the Organisation for Responsible Governance’s (ORG) principal, told Tribune Business prior to Dr Hubert Minnis’ national address that the government should instead opt for the “strategic” ROBERT MYERS

DR HUBERT MINNIS

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