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FRIDAY, AUGUST 17, 2018
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$4.93 Symonette: ‘public needs to be cautious’ with ATMs
Dept of Labour investigates Club Land’Or debacle By NATARIO MCKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net
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ABOUR Minister Dion Foulkes yesterday confirmed he has launched an investigation into claims workers at Club Land’Or are not being paid, stating: “If you work you should be paid”. Speaking with Tribune Business, Mr Foulkes said: “I actually met previously with one of the owners. He basically said to me the hotel is losing money and is basically a liability to them. They acknowledge that they owe the employees
CLUB LAND’OR ON PARADISE ISLAND
money and have agreed to allow the employees to find alternative employment without losing their benefits. I told him at the time they have to comply with the Employment Act and all of the labour laws of The Bahamas and have to pay their employees.” He continued: “For about six months or so I hadn’t heard any complaints from the hotel. I got a letter two weeks ago from one of the employees stating the salaries and stopped. I asked one of my investigators to go over there and do an investigation. I’m still waiting on that report but under no circumstances
MINISTER DION FOULKES can we have Bahamians being employed, offering their labour and not being paid. I am very connected that the workers there have not been paid. As soon a I get the report I will rewrite the owners and request a meting. If you work you should be paid, it’s as simple as that.” Labour Director John Pinder told Tribune Business
Tribune Business Reporter
nmckenzie@tribunemedia.net THE Government will find it “very difficult” to hit its projected growth targets given the impact of the value-added tax (VAT) rate rise and steep expenditure cuts, a former finance minister has suggested. James Smith, also a former Central Bank governor, commenting on Moody’s latest credit opinion on this nation told Tribune Business: “Moody’s pretty much restated their position and the previous rating. A lot of it they pinned on the fiscal consolidation efforts the government has underway which, I think, includes an outlook for economic growth at a little over two percent over the next year. I think that’s going to
JAMES SMITH be a very difficult target for the government to meet, the growth in GDP.” Moody’s said earlier this week strengthening in The Bahamas’ tourism sector and continued foreign direct investment projects will help sustain growth in the range
Peak periods only pressure on flight availability to Exuma By NATARIO MCKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net THE Ministry of Tourism and Aviation said yesterday the total number of international airline seats available to Exuma this year is “comfortably above” the number required to fill available rooms, while acknowledging challenges of “higher and higher demand” for seats during holidays and weekends. The MOTA in a statement yesterday took issue with sentiments expressed by Exuma MP Chester Cooper in a Nassau Guardian article earlier this week, in which the Opposition deputy leader contended that a lack of airlift into the Exumas is holding the area back in terms of tourism growth. The MOTA said this assertion was “factually inaccurate”. Mr Cooper had commended Bahamasair for increasing its frequency into Great Exuma for the next month, but contended there needs to be substantive changes in the amount of airlift to the island. In response, MOTA said yesterday: “The Ministry of Tourism & Aviation would like to advise that the total amount of international airline seats to Exuma in 2018 is comfortably above the number required to fill available rooms. This calculation is measurable. And it takes into account scientific metrics which are
DIONISIO D’AGUILAR easily verifiable.” According to Tourism Minister Dionisio D’Aguilar, airlift into the Exuma has been one of Bahamas tourism’s success stories. “This has been achieved through the efforts of successive governments,” MOTA said. “The Ministry of Tourism & Aviation has been successful in attracting nonstop flights to Exuma by American Airlines (AA), Delta Air Lines (DL), and Air Canada (AC) from their respective hubs of Miami, Atlanta and Toronto. As a result, Exuma now has the ability to attract visitors on connecting same-day itineraries from North America, Latin America, Canada and Europe. This matches the tremendous market access enjoyed by Nassau, Grand
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of 1.5 to two percent over 2018-2019. Despite this, the credit ratings agency - in its updated credit opinion on this nation yesterday - maintained the country’s Baa3 credit rating with a negative outlook. This outlook, it said, “reflects potential downside risks to the fiscal consolidation process posed by weaker-than-expected growth, exposure to climaterelated shocks in the form of hurricanes, and implementation risks associated with measures to rein in expenditure growth and increase revenue intake”. Moody’s’ warned that absent successful fiscal consolidation, The Bahamas’ fiscal and credit profile would likely weaken. Mr Smith pointed out that government expenditure is a significant portion of GDP. “They are cutting back on
government expenditure as part of the effort and government expenditure is a very important part of GDP. If you’re reducing government expenditure and laying off people as they have done in the public service and also reduce the capital budget, government’s normal input into our GDP growth from a policy standpoint is being restrained,” he said. “In addition to that we have increased the VAT rate by 60 percent. Without income increases across the board that that basically shrinks the level of consumption which is the largest item in GDP. “While the fiscal consolidation is meant to meet targets for reducing the deficit it also has an unintended effect I suppose of reducing the rate of growth of GDP. I think all things
By NATARIO MCKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net
being equally they’re not going to meet that two to 2.5 percent growth in GDP and they also may not meet the fiscal targets because the VAT increase impact will likely lead to a reduction in imports.” Moody’s has warned that it would downgrade the rating if, over the next 12-18 months, it observes that government’s fiscal consolidation efforts are “unlikely to reduce deficits to levels that would reverse the trend of rising debt ratios and lead to a stabilisation in government debt metrics”. “... We would change the negative outlook to stable if the government’s efforts to reduce the fiscal deficit lead to the reversal of the debt trend such that The Bahamas’ fiscal strength
FINANCIAL Services Minister Brent Symonette said yesterday that Bahamians will have to exercise greater “caution” when utilising ATMs, calling the recent Royal Bank of Canada “skimming” incident “unfortunate”. Mr Symonette said that while the incident was “unfortunate” it should be put in perspective. “It’s not something unusual, it happens in a number of places,” he said. “I think what we need to do is, as The Bahamas moves forward and it’s more difficult to go to a bank and cash a cheque, we have to be more vigilant. It’s unfortunate but I think patrons will just have to have more caution when using the ATMs.” RBC confirmed earlier this week that some of its Bahamian Visa debit and Visa credit card holders had fallen victim to “skimming”, with some irate customers reporting “thousands of dollars” having been wiped off their accounts. Jacqueline Taggart, RBC’s director of strategic and corporate communications for the Caribbean, responding to Tribune Business inquiries, said: “RBC confirms that we have identified a skimming incident that has victimised a number of our VISA debit
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Growth targets could be “very difficult” to reach By NATARIO MCKENZIE
BRENT SYMONETTE