08262016 business

FRIDAY, AUGUST 26, 2016

business@tribunemedia.net

QC ‘urges’ FNM: Fight Baha Mar secrecy in courts Smith: Judicial Review, other legal recourses open

Says deal should be open as people’s assets involved Cabinet ‘cannot hide disposal’ of land, taxes

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net The FNM and Baha Mar creditors were yesterday urged by a wellknown QC to use Judicial Reviews and other legal methods to challenge both the Government’s agreement with the Chinese and its sealing by the Supreme Court.

Fred Smith QC, the Callenders & Co attorney and partner, told Tribune Business that there were several potential legal recourses open FRED SMITH to those wishing to pierce the veil of secrecy placed around the deal to restart, and complete, Baha Mar’s construction.

A veteran of numerous successful challenges to previous deals struck between the Government and foreign developers, Mr Smith said the Christie Cabinet did not have the lawful authority to give away Crown/Treasury land, and the multitude of tax concessions, promised to the China Export-Import Bank and China Construction America (CCA).

He argued that only Parliament, and not the Government, had the power to grant land and tax incentives to developments such as Baha Mar. Yet the Christie administration had failed to seek Parliament’s approval for the Baha Mar agreement before concluding and announcing it, which Mr Smith suggested SEE PAGE THREE

Hotels endangered by ‘huge’ gratuities hit

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net The hotel industry fears that proposals to include gratuities in the Employment Act’s definition of wages will have an “astronomical” impact on its cost base, and could drive some properties “out of business”.

Robert Sands, president of the Bahamas Hotel and Restaurant Employers Association, told Tribune Business that the sector was “very concerned” about the proposed changes, and had expressed its views to both the Government and Chamber of Commerce.

Should the Christie administration move forward with the gratuity (tips) amendment, Mr Sands said it would have a “tremendous compounding” effect on benefits for many of the sector’s employees.

Combined with the recent minimum wage increase to $210 per week, which had increased labour costs for certain hotel worker categories by between 15-30 per cent, and the cur-

Fear impact of proposed wage definition change ‘May put some companies out of business’

Comes on top of 15-30% minimum wage rise effect rent “trading environment” facing the sector, Mr Sands warned some hotels may not survive a further increase in their cost base.

“We’ve made an intervention as an industry on that particular point with the Minister of Labour,” Mr Sands confirmed to Tribune Business.

“We have put our position in writing to the Minister of Labour on that, and the Tripartite Council.

We have used the vehicle of the Chamber of Commerce, who are the private sector’s representatives on the Council, to express our concern that gratuities should not be included as part of the definition of wages.”

Edison Sumner, the Bahamas Chamber of Commerce and Employers Confederation’s (BCCEC) chief executive, who is one of the private sector representatives on the Council, said the gratuities issue is set to

be discussed by the body next week.

“This is a matter being presented at a National Tripartite Council meeting next week,” Mr Sumner told Tribune Business. “Coming out of that, we will have the Tripartite Council make its recommendations to the Government.”

He expected the issue to consume much of the meeting’s agenda, but said the Chamber had a position that it would present on the matter, and was “making progress in dealing with it” to the private sector’s satisfaction.

The Bahamas Hotel and Restaurant Employers Association teamed with the Bahamas Hotel and Tourism Association (BHTA), Bahamas Out Island Promotion Board and the Grand Bahama Island Tourism Board to make its views known to Shane Gibson, minister of labour and immigration, on May

Robert Sands 24, 2016.

The BHTA’s July 2016 newsletter added that the industry was set to provide the Government with “more detailed information outlining the potential impact” of the proposed Employment Act changes, although it is unclear if this has yet been sent.

“The difficulty is that in our particular sector, graSEE PAGE FOUR

Union chief tones down strike threat

By NATARIO McKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net

CCA denies lawsuit tie to dismissal of contractor’s wife Says three-month gap between filing, termination

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net Attorneys for China Construction America (CCA) yesterday denied that a Bahamian contractor’s decision to launch legal action against it over alleged Baha Mar debts sparked the firing of his wife that same day.

Sean Moree, the attorney for Baha Mar’s main contractor, confirmed in a statement to Tribune Business that his client had indeed terminated the wife of Franklyn Robinson, the only local contractor known to have initiated legal ac-

tion over non-payment.

However, the McKinney, Bancroft & Hughes attorney and partner vehemently denied the initiation of legal action by the Ben Moore Toote Development Company’s principal had anything to do with his wife’s dismissal.

Mr Moree added that Mrs Robinson’s termination occurred in April 2016, some three months after Mr Robinson and Ben Moore Toote filed their writ.

“The writ filed by Ben Toote was filed on the 26 January, 2016,” he told this newspaper via e-mail, also SEE PAGE TWO

D’Aguilar: Baha Mar deal may hit Atlantis ‘viability’ Fears price squeeze from Chinese hotel domination And ‘Chinese checkers’ over buyer search Sarkis ousting ‘cut out Baha Mar’s soul’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A key Sarkis Izmirlian ally yesterday expressed fears that Atlantis’s “commercial viability” could be undermined if the Baha Mar agreement paves the way for China to dominate the Bahamian hotel industry.

Dionisio D’Aguilar, a former Baha Mar director, told Tribune Business that the China Export-Import Bank’s desire to be ‘made whole’ would likely result in the Cable Beach-based development being acquired by a Chinese buyer.

Together with China Construction America’s (CCA) SEE PAGE FOUR

A trade union leader last night toned down threats of industrial action to rival the 1958 General Strike, following a nearly three-hour meeting with the Prime Minister over the Sandals situation.

Obie Ferguson, the Trades Union Congress (TUC) president, told Tribune Business he believes the platform to resolve union grievances over the termination of Sandals Royal Bahamian’s 600 staff and related issues was in place following the meeting with Mr Christie.

Speaking outside the Prime Minister’s Office, Mr Ferguson was short on specif-

Met with PM on Sandals for three hours

Believes platform in place to resolve grievances Won’t act ‘just because we have the power’

ics regarding the TUC’s next move, but said: “We discussed the issues.

“The Prime Minister made some suggestions, one of which we will meet on with the Attorney General’s Office tomorrow [today] at 4.30pm. We will put some initiatives together in the interest of SEE PAGE FOUR

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PAGE 2, Friday, August 26, 2016

THE TRIBUNE

Employee coaching key to firm’s health Coaching is used in a variety of ways to help employees solve their problems. No workplace is without its share of issues, and no individual is immune from personal and professional roadblocks. Companies that invest in Employee Assistance Programmes, and prepare their managers to engage in responsible employee coaching and counselling, become leaders in the marketplace.

We define ‘coaching’ as a method of directing, instructing and training a person or group of people, with the aim of achieving some goal or developing

specific skills. It can be accomplished in both a direct or indirect manner.

Perhaps the first question we must ask is who needs coaching at work? The simplest answer is: Everyone.

Everyone at some point in their career and life needs some form of coaching, counselling or intervention.

Leaders need it, company owners need it, and employees need it as well.

To be more specific, we coach when: * Work performance is poor, and both individuals and groups need a boost or reminder of the need for excellence.

Foreign Affairs Minister Fred Mitchell

* Attitudes on the team are poor, and individuals or groups need an adjustment in temperament. * There is stagnation of an individual or group, and something has to be done or introduced to help employees climb out of the rut. * The competition stiffens, and levels of productivity and efficiency need to be increased. * It is crunch time or before a major project/assignment, and the team needs to be revved up to meet the new challenge. * There are personal issues adversely impacting the individual’s ability to

attend to their professional obligations.

The coaching and counselling support that companies give to their employees sometimes ventures into some personal areas of their lives, and employers must navigate carefully.

Every good employer wants to create a work environment where employees are relaxed, comfortable and happy. A major part of this involves ensuring that emotional health and well-being is promoted.

When the physical or mental health of an employee is negatively affected by personal problems, such

as bullying, sexual harassment, depression, relationships, a medical crisis, financial stress, workplace bullying, substance abuse or any other vice, employers must get involved and coach their employees back to good emotional health.

• NB: Ian R. Ferguson is a talent management and organisational development consultant, having completed graduate studies with regional and international universities. He has served organsations, both locally and globally, providing relevant solutions to their business growth and devel-

Ian ferguson opment issues. He may be contacted at tcconsultants@ coralwave.com.

Participation in Dubai’s Expo 2020 ‘part of foreign policy outreach to Middle East’

BY NATARIO McKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net The Government’s participation in the Expo 2020 in Dubai is part of the Christie administration’s foreign policy outreach to the Middle East, according to Foreign Affairs Minister Fred Mitchell, who noted that the aim is to ultimately attract foreign

capital and market the nation as a tourist destination.

Some 180 countries are set to participate in the expo which is expected to draw some 25 million international visitors between the October 2020 and April 2021. This, according to Minister Mitchell, provides the perfect opportunity for the nation to market itself to the Middle East as a great place to invest and a tourist destination.

The Expo will be held under the theme “Connecting Minds, Creating the Future”, with sub-themes of Sustainability, Mobility and Opportunity and is expected to coincide with the United Arab Emirates Golden jubilee celebration. In preparation for the expo, the government has established a national committee for the expo, comprised of representatives from government agencies, academia cilvil society and the private sector. Sharon Brennen-Haylock, the director general of the Bahamas Foreign Service, will chair the committee.

“This is part of our foreign policy outreach decision

that was made at the start of this term,” Mr Mitchell said.

“We indicated that we were doing an outreach in the far east, namely China and the Middle East. We had indicated that there were three counties that we had identified there, namely Qatar, the United Arab Emirates of which Dubai is a part of and Saudi Arabia.

“The reason why we chose those countries is because they have excellent relations with the west and the United States.

“Secondly our country is in need of capital and the far east, China in particular and the Middle East, are areas of surplus capital.

“When you are hunting for capital you want to make an impression on those who have it, that The Bahamas is a good place to invest.

“The other thing we want to do is show The Bahamas is a good place for tourism.

Thats our number one sector.

The question is whether the Bahamas can use the opportunity as a means of attracting capital and putting itself on the map as far as tourism

FROM PAGE ONE attaching a copy of the document.

“Mrs Robinson was let go in late April, 2016. As can be seen, some three months elapsed between the filing of the writ and the termination of Mrs Robinson.”

Mr Moree declined to explain, though, why Mrs Robinson, a Chinese national who was employed by CCA as an accountant, was terminated.

“In deference to Mrs Robinson, and in keeping with company policy, CCA does not disclose the reasons for employees’ terminations,” the attorney added.

“Mrs Robinson has made no claims against CCA regarding her termination, and CCA wishes her the best in her future endeavours. As the action commenced by Ben Toote is currently extant [live], we have no comment, other than we look forward to actively defending the claim.”

Mr Robinson, in an interview with Tribune Business that was published yesterday (Thursday), alleged that he and his wife had been left “heartbroken” when she was fired the same day as Ben Moore Toote’s writ was served. ““The day that they were served with the writ, they fired her,” he told this newspaper.

“The same day.

“She received a notice of dismissal from their lawyers; there was not engagement with the human resources department.

It was so embarrassing, and she was very distressed with the action they took. They came to get her, and had security escort her

is concerned; those are the two main objectives.”

A construction design competition will be open to students of the College of The Bahamas for the Bahamas’ pavilion at the expo.

Expo Live is a EUR 100 million programme which aims to create partnerships and incentivise new solutions or scale up existing solutions that could benefit the lives of millions around the world.

Mr Mitchell noted that any Bahamian can participate in Expo Live and submit their ideas to be critiqued and possibly funded for display at the expo.

Tony Joudi, The Bahamas’ non-resident ambassador of The Bahamas to Qatar who serves as the Commissioner General in United Arab Emirates for the Expo 2020, said: “This will put The Bahamas on the world map. We are trying to expose what our capabilities are and what our culture is about. This is an opportunity to brand our country and make sure that this country is on par with all other major players in the word.”

CCA denies lawsuit tie to dismissal of contractor’s wife off the premises. No explanation, no nothing. Just get out. It was heartbreaking. She’s very hurt.”

Mr Robinson said his wife came to the Bahamas initially to work on the Airport Gateway roads project, before being transferred to CCA for Baha Mar and then The Pointe project at the British Colonial Hilton.

Following Ben Moore Toote’s shut down after the non-Baha Mar payment, Mr Robinson said he and his wife had been surviving on her salary until her dismissal.

Mr Robinson and his company are suing CCA for “breach of contract”, due to it having allegedly paid just 3 per cent of an agreed $178,862 for cleaning services at the Baha Mar project site.

Ben Moore Toote, which at its peak employed some 140 persons, has been forced to cease business, and Mr Robinson said CCA had failed to deliver on numerous promises that payment would be forthcoming.

However, in its April 12, 2016, defence to his claim, CCA challenged both the contract sum and whether Ben Moore Toote Development Company delivered the required standard and quality of work.

THE TRIBUNE

BusinesSes braced for stormy weather

By NATARIO McKENZIE Tribune Business Reporter

nmckenzie@tribunemedia.net

Businesses and residents in the southern Bahamas are bracing themselves for the possibility that a strong tropical wave expected to pass over The Bahamas becomes a serious threat, with one private sector representative telling this newspaper: “We don’t want to find ourselves in a situation as with Joaquin”.

Cheryl de Goicoechea, the Long Island Chamber of Commerce president told Tribune Business: “Yes, there is concern as we don’t want to find ourselves in a situation as with Joaquin, where it developed into a very strong hurricane overnight.

“People know that this weather system can change very quickly and in a very short time become a strong hurricane.

“Some homes are already being shuttered up and boats are being moved to safety although there are still several fishing boats out to sea at this time.”

A strong tropical wave is expected to dump three to four inches of rain and cause severe flooding as it passes over the Bahamas.The system could strengthen into a tropical depression or tropical storm as it passes over the southeast Bahamas. Severe flooding in the southeast Bahamas which includes Long Island, Ragged Island, Acklins, Crooked Island, Mayaguana and Inagua is possible.

Goicochea told Tribune Business: “Visitors to the island are departing or have already departed. There is a lot of conversation and all eyes are watching its path and conditions.

I am sure that everyone will be as ready as they possibly can if it does become a serious threat.”

Joaquin, a Category Four hurricane, with maximum sustained winds around 130 miles per hour, battered the southern and central Bahamas last October leaving massive devastation in its wake. The Government had pegged Joaquin’s damage at $60 million, but that has since been increased to $80 million and in December Prime Minister Perry Christie said that the figure was $100 million.

to advertise today in the tribune call @ 502-2394

Tourism: No Zika cancellations yet

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

BHTA president says visitor safety ‘top priority’

The Bahamas Hotel and Tourism Association (BHTA) yesterday said it had received no reports of booking cancellations as a result of the Zika outbreak, despite travel and health advisories issued by this nation’s two key visitor markets.

Stuart Bowe, the BHTA’s president, told Tribune Business that visitor and guest safety was “top priority”, and that it was closely monitoring social media and other communications for any fallout.

“To date, the BHTA has not received reports of travel cancellations,” Mr Bowe said. “However, we are monitoring social media and member communications with our industry partners.

“The safety of our visitors and residents is our top priority, and we recognize that every measure taken to protect our team members who reside here will by extension protect our guests.”

Mr Bowe confirmed that the BHTA was working closely with the Ministry of Health and the Ministry of Tourism in a bid to mitigate the spread of Zika in the Bahamas.

“We have informed our members to take preventative measures as outlined in the recent press release by the Ministry of Tourism,”he added.

“To our knowledge, the Bahamas continues to take the necessary FROM PAGE ONE meant it had no basis in law.

“The Cabinet cannot hide the granting of concessions, and the disposal of Bahamian assets, from the Bahamian taxpayer,” Mr Smith told Tribune Business.

“At the end of the day, the Crown Land and money in the Treasury belongs to the Bahamian citizens, and not the Cabinet’s to do with as it pleases.

“I would urge anyone so inclined, including the Official Opposition (FNM), to launch a Judicial Review challenging the legality of the [Baha Mar] agreement entered into on the basis that it is ultra vires for the Cabinet to do so.”

Mr Smith said Judicial Review was an especially valuable tool in the case of Baha Mar. Once the Supreme Court gave permission for such an action to be brought, it would impose an obligation on the Government “to make full and frank disclosure” of all related documents.

“Any taxpayer can bring a Judicial Review of the agreement,” Mr Smith told Tribune Business, “and can, by discovery in the Judicial Review process, force the Cabinet to provide all the documents so that the court can scrutinise whether this is a legal agreement in accordance with the constitution.

“Right now, this agreement is subject to Judicial Review because it’s ultra vires of Cabinet powers.

The constitution does not give the Cabinet or any minister the legitimate power to enter into this kind of agreement.”

Mr Smith said the Government should have first placed a draft of the Baha Mar agreement before Parliament, so that the legislative branch of government could scrutinise it and give its approval, before signing it.

“In the Baha Mar matter, Cabinet should have said they had entered into a draft agreement with the contractor and the develop-

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Friday, August 26, 2016, PAGE 3

precautionary measures against Zika through the application of vector control methods such as spraying and treating areas with settled water to prevent mosquito growth, educating the public, building awareness, and recommending preventative measures to extend to all areas of the country.”

Mr Bowe’s comments came after the US this week followed Canada’s lead in issuing health and travel advisories on the Bahamas, following confirmation of the Zika virus’s arrival on these shores.

The two countries are the Bahamas’ major tourism source markets, meaning that the advisories could deal a potentially major blow for the tourism industry, even though there appears to have been minimal impact to-date.

Canada last week warned pregnant women, and those planning on having children, to avoid travelling to the Bahamas.

In advice that was posted on the Canadian government’s official website, the Bahamas was added to the Public Health Agency of Canada’s list of countries to avoid as a result of the Zika virus.

The Canadian government is “recommending that Canadians practice special health precautions while travelling in affected countries. “Pregnant women and those considering becoming pregnant

should avoid travel to the Bahamas,” it added.

Such travel advisories are likely to both increase in number, and intensity, especially given that Dr Perry Gomez, minister of health, confirmed that two of the four Zika cases had resulted from transmission locally.

Health warnings are a major deterrent to visitors/tourists travelling to the subject countries, hence Mr Turnquest’s fears for the Bahamian tourism industry, the most important economic sector.

Florida’s tourism-reliant economy has also been impacted by an outbreak of Zika, with Miami Beach among the areas impacted.

Businesses in locations identified as ‘zones’ where the virus is present, such as Wynwood in Miami, have complained about a reduction in commerce and visitor numbers as a result of health-related concerns.

K P Turnquest, the Opposition’s deputy leader, warned that the outbreak of Zika in the Bahamas could “wipe out our tourism industry altogether”, and called on the relevant Government agencies to employ an “aggressive” approach to combating and eradicating the virus.

The Government already appears to have heeded Mr Turnquest’s advice for an “aggressive” approach.

Stuart Bowe Andrew Thompson, assistant director of the Department of Environmental Health Services, said officials had already begun mosquito fogging efforts on New Providence, and were focusing on the Pinewood Gardens and Carmichael Road areas.

Zika, which has been linked microcephaly in newborn babies, can be transmitted through sex. As a result, travel advisories such as Canada’s will not only deter women from coming to the Bahamas, but their partners and entire families, too.

Dr Duane Sands, the FNM Senator, while acknowledging the potential economic impact, called for Bahamians to be “concerned without being alarmist”.

“With the potential impact of this Zika outbreak on our tourism product and economy, we should all be concerned without being alarmist,” he told Tribune Business.

“The single most important thing is effective public health and environmental campaigns by the Bahamas government.”

QC ‘urges’ FNM: Fight Baha Mar secrecy in courts er, that these were the proposed terms, and go to the legislative branch responsible for tax concessions and get its authority to enter into the agreement,” he added.

The Callenders & Co partners added that he was also bewildered by the request from Baha Mar’s receivers, backed by the Government, for the Supreme Court to place all documents related to an agreement negotiated on the Bahamian people’s behalf under seal.

“In addition to the Judicial Review, anyone who has an interest in the current [Baha Mar] provisional liquidation process, either as a creditor, developer or some other way of being joined as an interested party, can seek disclosure of those documents to protect their interests,” Mr Smith added.

He argued that the FNM needed to stand up and take the lead in challenging the Baha Mar agreement through the courts, unless the Christie administration soon became more forthcoming.

“It is the job of the Official Opposition to hold the Government accountable and launch proceedings,” Mr Smith said, calling on it to stand up for the interests of the Bahamian public and creditors.

The ‘sealing’ of Supreme

Court files is not unusual, and is often done to protect sensitive personal, financial and commercial information from getting out into the public domain, where it might jeopardise both the interests of justice and the parties involved. Tribune Business is even aware of one matter where the case file was ‘sealed’ to prevent persons tampering with the records.

But in Baha Mar’s case, Mr Smith instead argued that details of the Government’s agreement with the two Chinese state-owned entities should have been made public, and not sealed, on the grounds that the Bahamian people’s assets (land and tax revenues) were involved.

Both the China ExportImport Bank’s court-approved receivers, Deloitte & Touche, and the Government have argued that there were sound reasons for obtaining the Supreme Court Order to ‘seal’ all details of the construction completion agreement.

Raymond Winder, Deloitte & Touche(Bahamas) managing partner, said the move was sparked by the need for “commercial confidentiality”.

The Government, for its part, added that the sums of money involved - coupled with the sensitivity of ongoing negotiations with both the Chinese and potential

Baha Mar buyers - made it prudent to shroud the agreement in secrecy.

A third explanation came from Wayne Munroe QC, who is representing the Gaming Board and other government creditors of Baha Mar, who argued that the ‘sealing’ was essential to prevent the original developer, Sarkis Izmirlian, from seeking to sabotage any resolution.

Mr Smith, though, blasted: “You can’t govern in secrecy. That’s not legally permissible in our constitution. We are not a Prime Ministerial dictatorship under the law.

“We are a Westminster model of constitutional accountability, and the problem in the Bahamas is that

very rarely is the executive held to account.”

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PAGE 4, Friday, August 26, 2016 FROM PAGE ONE ownership of The Pointe and British Colonial Hilton, Mr D’Aguilar said this could potentially give Beijing government-owned entities - and private groups beholden to it - control of a significant portion of Bahamian GDP. While acknowledging that the agreement between the Government and Baha Mar’s main creditor might deliver “short term” benefits, in terms of the project’s physical completion and payment of Bahamian creditors, Mr D’Aguilar expressed misgivings over the long-term consequences.

He added that the Chinese could use their domination of New Providence’s hotel product to drive down room rates and prices, thereby imposing a commercial squeeze on Atlantis and other rivals, who lacked the same financial means to respond.

Explaining why, after some consideration, he was unhappy with the Government’s agreement with the China ExportImport Bank, Mr D’Aguilar told Tribune Business: “You have basically signed away Cable Beach to an entity that does not operate with the same normal democratic norms that we do.

“They have no shareholders to report to, they’re not motivated by profit, and their management executives are not subject to elections. It’s basically a dictatorship. They’re not culturally the same as us.”

“Think about it long-term,” Mr D’Aguilar added. “In the shortterm, you get things moving. But long-term, when you it trouble, they will run you because they own such a large portion of your

THE TRIBUNE

D’Aguilar: Baha Mar deal may hit Atlantis ‘viability’

GDP and hotel product.

“They can reduce prices, drive down the quality of the tourism product, and threaten the commercial viability of Atlantis and any other major hotel project here. They can drive every other company out of this market, and scare off investors from coming into a market where there’s a player not motivated by profit.”

Mr D’Aguilar is no t the first to raise fears that China co uld use its extensive ho tel o wnership interests to impose a ‘price squeeze’ on Atlantis and o ther companies, similar concerns having been previo usly expressed to Tribune Business by former deputy prime minister, Brent Symonette.

The former Baha Mar director added that these concerns were exacerbated by the fact that the pro ject’s ‘buyer’ was likely to be a Chinese entity or gro up, given that they were the only candidates likely to meet the ExportImport Bank’s demand to be ‘made whole’.

With Baha Mar’s $2.45 billion secured creditor having agreed to finance the development’s completion, Mr D’Aguilar said that anywhere between $600 million-$1 billion could be added to the purchase price, pushing this towards the $3.5 billion level.

FROM PAGE ONE tuities are already a significant proportion of the sector’s remuneration,” Mr Sands explained, “and the compounding of that particular element on total benefit costs would have a tremendous impact on many, many companies in terms of accrued benefit costs.”

Gratuities (tips) form the bulk of worker income in many hotel industry employment categories, and Mr Sands said the “compounding” effect of including them in the definition of wages would dramatically increase the vacation pay, redundancy pay and sick pay staff are entitled to.

He added that the proposed Employment Act change was following swiftly behind, and on top of, the recent minimum wage increase. Given that many ‘tipped’ employees’ base salaries are at or near the minimum wage, hotel labour costs rose then.

Mr Sands confirmed that “the industry has absorbed a significant increase in terms of the minimum wage rise”, which boosted the earnings of employees who were “already receiving significant gratuities.

“The increase in minimum wage has impacted various companies with anywhere from a 15 per cent to 30 per cent increase [in labour costs] across different worker categories,” the Bahamas Hotel and Restaurant Employers Association chief said.

“Obviously, this [gratuity]increase will have a compounding impact in terms of benefits. When you add that in with other factors, the compounding impact of that is

And he suggested that potential Chinese buyers, such as the Fosun Group, were deeply connected to both the Beijing government and Chinese communist party.

“Are we playing Chinese checkers here, where we are moving it from one balance sheet to another,” Mr D’Aguilar asked of Baha Mar’s fate.

“The only people who are going to pay, if the bank wants to be made whole to $3.5 billion or whatever they want, is another Chinese company my gut tells me. Playing Chinese checkers is not a good deal; not a good deal at all.”

Some cynics, though, will likely argue that it was Mr Izmirlian and Baha Mar themselves that set this in motion by bringing in the Chinese as the project’s financiers and contractors back in 2011.

Not wishing to “rain on Mr Christie’s parade” or appear “a sore loser”, Mr D’Aguilar said he, like every other Bahamian, wanted to see Baha Mar completed and open given the tremendous economic benefits it promises to deliver.

He acknowledged that it was also positive that the Bahamian contractors, former Baha Mar staff and other local creditors

Hotels endangered by ‘huge’ gratuities hit astronomical, and may put some companies out of business.”

He implied that the issue was not necessarily the proposed treatment of gratuities by itself, but the combined impact of this together with the recent imposition of Value-Added Tax (VAT) and other costs, plus the continued mediocre business climate facing the Bahamian hotel industry.

“It’s something that we have to be very concerned about,” Mr Sands told Tribune Business of the proposal to include gratuities in the definition of wages, “especially in a trading environment that is not growing as robustly as we’d like it to grow.

“At this point in time we have increased competition in terms of rooms available in the destination. The Marriott Courtyard (former Nassau Palm) has come online, the Warwick is about to come on line, and Baha Mar will come on line at some point.

All this will have an impact on the trading environment in the short-term.”

“We have to be concerned,” Mr Sands continued. “We are price sensitive to the trading environment we are in. While there has been some daylight in trending down of utility costs, they’re still not at the level we need them to be.

“VAT has taken some of the slack, as now it is on most items in our sector.”

Previously, the hotel industry only faced a room occupancy tax of 10 per cent. Now, the 7.5 per cent VAT has been added to virtually all its products and services, broadening the tax burden it faces.

had been promised by the Prime Minister that they would be paid, although both the dollar figures and percentages remain unknown.

However, detailing the second of his three reasons as to why the agreement was “bad for the Bahamas”, Mr D’Aguilar told Tribune Business that Mr Izmirlian’s removal had “cut the soul out of the project”.

“Who’s running this project now,” he queried.

“You have some soulless bureaucrat from the Chinese bank running it.

“You don’t have that passion, vision and drive from a developer like Sarkis Izmirlian.

“What makes all successful developments is that they have a developer there, driving it. You’ve cut the soul out of this project. There’s no passion now.”

The China Export-Import Bank and its Deloitte & Touche receivership are still pursuing buyers for the Baha Mar, with Prime Minister Perry Christie still hoping that a deal can be sealed, and the property’s key assets open in time for the late 2016-2017 winter season - an outcome most informed observers view as unlikely, if not impossible.

Mr D’Aguilar, though, argued

that the move by the receivers/ Government and their attorneys to successfully persuade the Supreme Court to ‘seal’ all details of the agreement suggested there were some specifics they wanted to hide.

“It lacks transparency,” he charged. “We don’t see what they had to give up to get $70 million for the contractors and open the project.

“They don’t want us to see it because obviously they’re probably embarrassed.

“They took the bits of the deal they liked and revealed those, and those they didn’t, they subjected to a veil of secrecy.”

The Christie administration has vehemently denied all this, and has pledged that details of the agreement with the China Export-Import Bank will eventually be made public in due course, although no specific timeline has been given.

However, Mr D’Aguilar concluded: “This agreement that Christie and his group have put together is a really bad deal for the Bahamas.

“It’s good that the creditors will get paid, but I don’t see any other positives coming from it.

They can run on about it all they want, but it’s a bad, bad deal.”

Union chief tones down strike threat FROM PAGE ONE trying to dispose of it.”

He added: “The specifics will be disclosed tomorrow afternoon [today] around 4.30pm. We are charged with the responsibility of preparing some documents to reflect the understanding that was reached today, bearing in mind that the focus of our efforts is to ensure that the Sandals workers return to work. The Prime Minister appeared to be prepared to have discussions along those lines.”

The TUC and the National Congress of Trade Unions (NCTU) on Wednesday warned that they were prepared to “shut the country down” with a repeat of the 1958 General Strike, unless the Prime Minister met with them in the next 48 hours to resolve the Sandals situation. This he has now done.

Mr Ferguson also appeared to tone down the supposed strike threat last night. “In all fairness to the process we would want to ensure that every initiative is considered objectively and fairly before we decide to do any action,” he said.

“You act when you have to, not because you have the power to do so, and you do it in the interest of Bahamian workers. As long as we can get the maximum result

Trade Union Congress President Obie Ferguson out of this for the workers, I think we would be doing the workers a great service.”

Mr Ferguson added of the meeting: “The attendance was very good on both sides. The participation, I think, was very rich coming from the various persons who spoke on both the Government side and our side. I think the foundation is there for us to reach some kind of understanding.”

The TUC and its Bahamas Hotel, Maintenance and Allied Workers Union (BHMAWU) affiliate previously blasted Sandals Royal Bahamian for its abrupt closure earlier this month, arguing that it was a ‘union busting’ move.

The resort chain, though, has repeatedy argued that the closure, which resulted in 600 employees being made redundant, was es-

sential for much-needed $4 million repairs to take place at the Cable Beach property.

The BHMAWU has since 2009 been seeking to negotiate an industrial agreement for workers at Sandals Royal Bahamian, and has grown increasingly frustrated at its failure to do so, despite having been recognised as the bargaining agent.

However, Tribune Business’s review of its files shows that Sandals Royal Bahamian and its attorneys, Lennox Paton, have been challenging the “very basis” for the Bahamas Hotel, Maintenance and Allied Workers Union’s (BHMAWU) existence on technical grounds.

The resort previously filed a Judicial Review seeking a court order that would force the Registrar of Trade Union’s to cancel the union’s registration.

Sandals Royal Bahamian’s case was that the BHMAWU has breached the Industrial Relations Act on two counts - failing to hold nominations for its executive positions, and the nonpublication of its annual returns.

And it is alleging that the Registrar of Trade Unions (the director of labour), despite discovering these irregularities and giving the BHMAWU two months to correct the problems, had failed to take action over the union’s continued noncompliance.

The other thrust of Sandals Royal Bahamian’s action was that the union’s executives were not elected in accordance with the BHMAWU’s constitution, and it has therefore been seeking a Supreme Court declaration that they have no authority to act on its behalf.

The Judicial Review action thus might explain why Sandals Royal Bahamian is still refusing to negotiate an industrial agreement with the trade union, and why the latter’s frustration has boiled over into road blockages and the filing of criminal complaints against the resort’s executives.

PAGE 6, Friday, August 26, 2016

THE TRIBUNE

WhatsApp is going to share your phone number with Facebook Global messaging service offers 30-day window for opt out

By BRANDON BAILEY, AP Technology Writer SAN FRANCISCO — Global messaging service WhatsApp says it will start sharing the phone numbers of its users with Facebook, its parent company. That means WhatsApp users could soon start seeing more targeted ads and Facebook friend suggestions on Facebook based on WhatsApp information — although not on the messaging service itself.

The move is a subtle but significant shift for WhatsApp, used by more than 1 billion people around the world. When it was acquired

by Facebook for an eye-popping $21.8 billion two years ago, executives promised privacy would be safeguarded.

“This is a strong-arm tactic on the part of Facebook,” said Jeff Chester, executive director of the Center for Digital Democracy in Washington, D.C. “They continue on a campaign on to run roughshod on our privacy rights.”

WhatsApp is giving users a limited time to opt out of sharing their information with Facebook,

although they must take the extra step of unchecking a box to do so.

It also says Facebook won’t post phone numbers online or give them out to anyone.

But the giant social network has been looking for ways to make money from WhatsApp since it bought the service two years ago.

At the same time, Facebook has pledged not to interfere with a longstanding promise by WhatsApp’s co-founders to respect users’ privacy and keep ads off its messaging platform.

WhatsApp on Thursday offered a glimpse of its plans for turning on the money spigot, releasing new documents that describe the company’s privacy policy and the terms of service that users must agree to follow. The documents are the first revision of those policies since 2012, before Facebook acquired WhatsApp. One change follows through on previous hints by WhatsApp executives, who have said they’re exploring ways for businesses to communicate with customers on WhatsApp. That could include using WhatsApp to provide re-

ceipts, confirm a reservation or update the status of a delivery.

Companies could also send marketing offers or messages about sales to individual customers, according to the new documents, which note that users will be able to control or block such messages. WhatsApp says it will continue to bar traditional display ads from its service.

“We do not want you to have a spammy experience,” the company tells users in a summary of the new policies.

Another change is potentially more controversial: WhatsApp says it will begin “coordinating” accounts with Facebook by sharing WhatsApp users’ mobile phone numbers and device information, such as the type of operating system and other smartphone characteristics. The company says Facebook will employ the phone number internally to better identify WhatsApp users on Facebook, so it can make friend suggestions or show targeted advertising.

The ads would come through a Facebook program called “Custom Audiences,” which lets a

business upload lists of customers and phone numbers or other contact information the business has collected from warranty cards or other sources. Facebook matches the list to users with the same information and shows them ads.

Facebook says it doesn’t give out users’ information to advertisers.

WhatsApp phone numbers are valuable to Facebook. While the social network already has many phone numbers, it doesn’t require users to provide them, and doesn’t always have the most current number for everyone on Facebook.

But anyone on WhatsApp must provide a current phone number because that’s how WhatsApp knows where to deliver messages.

The coordination of accounts may draw fire from privacy advocates. WhatsApp has long promised not to employ user data for advertising. Its acquisition by Facebook two years ago sparked complaints from activists who worried the new owner would start mining WhatsApp accounts.

Though both companies pledged WhatsApp would operate separately from its parent, the Federal

Trade Commission warned them publicly, in a 2014 letter, against changing how they employ WhatsApp user data without users’ consent.

WhatsApp says current users have up to 30 days to accept the new policy terms or stop using the service.

Once they accept, they have 30 more days to opt out of sharing with Facebook.

Privacy groups have praised WhatsApp for building powerful encryption into its services, making it impossible for the company or anyone else to read users’ messages.

WhatsApp promises that encryption will remain, so neither WhatsApp nor Facebook would be able to use message content for advertising purposes.

But privacy activists also criticised the 30-day window to opt out.

“Very few people opt out, it should be an informed opt in,” Chester said. “No data should be used unless people are informed honestly about how it’s going to be used.”

Discount stores report weak sales growth

A shopper leaves a Dollar Tree store in Encinitas, Calif. (AP)

NEW YORK (AP) Discount-store rivals Dollar General and Dollar Tree reported weaker-than-expected sales figures Thursday, as struggling lower-income shoppers spent less at their stores.

Shares of both companies fell sharply.

Dollar General said a cut in food-stamp benefits in several states kept its customers away. It said sales at stores open at least a year, which is considered an important measure of a retailer’s health, rose 0.7 percent in its second quarter. That’s

far below the 2.7 percent increase analysts were expecting, according to FactSet. At Dollar Tree, the company said food stamp cuts had less of an impact on its sales but said some of its Family Dollar customers were “under pressure.”

Dollar Tree said sales at stores open at least a year rose 1.2 percent in its second quarter.

Analysts expected growth of 2.4 percent, according to FactSet. Both companies also released financial results for the quarter on Thursday.

Dollar General’s results were below what Wall Street analysts expected, while Dollar Tree’s were mixed.

Dollar General, based in Goodlettsville, Tennessee, has about 13,000 stores around the country.

Chesapeake, Virginiabased Dollar Tree has more than 14,000 stores, including Family Dollar, which it bought last year.

Shares of Dollar Tree Inc. fell $9.43, or 9.9 percent, to close Thursday at $85.50.

Dollar General Corp. fell $16.18, or 17.6 percent, to $75.61.

NOTICE TAKA INVESTMENTS LIMITED N O T I C E IS HEREBY GIVEN as follows: (a) TAKA INVESTMENTS LIMITED is in voluntary dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000. (b) The dissolution of the said company commenced on the 24th August, 2016 when the Articles of Dissolution were submitted to and registered by the Registrar General. (c) The Liquidator of the said company is Repulse Bay Limited, The Bahamas Financial Centre, Shirley & Charlotte Streets, P.O. Box N-3023,Nassau, Bahamas Dated this 26th day of August, A. D. 2016 _________________________________ Repulse Bay Limited Liquidator NOTICE BALAKOT LIMITED N O T I C E IS HEREBY GIVEN as follows: (a) BALAKOT LIMITED is in voluntary dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000. (b) The dissolution of the said company commenced on the24th August, 2016 when the Articles of Dissolution were submitted to and registered by the Registrar General. (c) The Liquidator of the said company is Leeward Nominees Limited, Akara Building, 24 de Castro Street, Wickhams Cay 1, Road Town, Tortola, British Virgin Islands.

Dated this 26th day of August, A. D. 2016 _________________________________ Leeward Nominees Limited Liquidator

NOTICE EDT INVESTMENT CORPORATION N O T I C E IS HEREBY GIVEN as follows: (a) EDT INVESTMENT CORPORATION is in voluntary dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000. (b) The dissolution of the said company commenced on the 24th August, 2016 when the Articles of Dissolution were submitted to and registered by the Registrar General.

NOTICE MIRAMARO LIMITED N O T I C E IS HEREBY GIVEN as follows: (a) MIRAMARO LIMITED is in voluntary dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000. (b) The dissolution of the said company commenced on the24th August, 2016 when the Articles of Dissolution were submitted to and registered by the Registrar General.

(c) The Liquidator of the said company is Bukit Merah Limited, The Bahamas Financial Centre, Shirley & Charlotte Streets, P.O. Box N-3023, Nassau, Bahamas

(c) The Liquidator of the said company is Leeward Nominees Limited, Akara Building, 24 de Castro Street, Wickhams Cay 1, Road Town, Tortola, British Virgin Islands.

Dated this 26th day of August, A. D. 2016

Dated this 26th day of August, A. D. 2016

_________________________________ Bukit Merah Limited Liquidator

_________________________________ Leeward Nominees Limited Liquidator

THE TRIBUNE

Friday, August 26, 2016, PAGE 7

Global stocks fall as markets await comment from Federal Reserve chair TOKYO (AP) — Global stocks fell Thursday in lackluster trading as investors awaited a speech

by Federal Reserve chair Janet Yellen on Friday for hints on a possible further interest rate increase.

KEEPING SCORE: Germany’s DAX dropped 0.9 percent to 10,529 after a survey showed business confidence fell unexpectedly in August, possibly in a delayed reaction to Britain’s decision to leave the European Union.

The CAC 40 of France lost 0.7 percent to 4,403. The FTSE 100 of Britain fell 0.3 percent to 6,815.

Dow and S&P futures were down 0.2 percent and 0.1 percent respectively, suggesting Wall Street might extend losses following a selloff of drugmakers on Wednesday.

MYLAN’S TROUBLE: Outrage over price increases by Mylan for its EpiPens, medical devices used to deliver adrenaline to a patient suffering from a potentially fatal allergic reaction, have pulled pharmaceutical companies lower.

Mylan bought the rights to the product in 2007 and has raised the price from roughly $100 for two pens to roughly $600. Presidential candidate Hillary Clinton issued a statement Wednesday calling Mylan’s price increases “outrageous” and called for the company to slash prices for EpiPens.

FED WATCH: Investors are awaiting Yellen’s speech at an annual conference of central bankers in Jackson Hole, Wyoming.

The Fed is expected to hold off on raising interest rates at its September meeting, but Yellen’s

the statue of George Washington on the steps of Federal Hall faces the facade of the New York Stock Exchange. (AP) comments may offer clues on the likelihood and timing of a future hike.

ANALYST VIEWPOINT: “Low volumes and cautious trade are likely to dictate markets in the lead up to Janet Yellen’s speech on Friday,” Angus Nicholson of IG said in a market note.

ASIA’S DAY: Japan’s Nikkei 225 index fell 0.3 percent to

16,555.95, while the Shanghai Composite index lost 0.6 percent to 3,068.33. The Hang Seng in Hong Kong was almost unchanged at 22,826.87 and South Korea’s Kospi was flat at 2,042.92.

India’s Sensex lost 0.2 percent to 28,007.25, while shares in Southeast Asia were mixed. Australia’s S&P/ASX 200 lost 0.4 percent to 5,541.90.

ENERGY: Benchmark crude

oil fell 7 cents to $46.70 a barrel in electronic trading on the New York Mercantile Exchange. It fell $1.33 on Wednesday. Brent crude, which is used to price oil internationally, edged 15 cents lower to $48.90 in London after falling 91 cents the day before.

CURRENCIES: The dollar weakened to 100.42 yen from 100.48 yen, while the euro rose to $1.1295 from $1.1263.

Yellen could send signal about next hike WASHINGTON (AP) — The job market is humming, and so are the U.S. financial markets, with major stock indexes near record highs.

All that would normally trigger a green light for the Federal Reserve to raise interest rates — especially when they’re barely above all-time lows. Yet the Fed, still casting a wary eye on the economy, has yet to signal that it will resume raising rates soon.

That signal, though, could come as soon as Friday, when Fed Chair Janet Yellen will address the annual meeting of the world’s central bankers in Jackson Hole, Wyoming.

Fed leaders have sometimes used the Jackson Hole event to announce major policy shifts. In 2010, for example, Chairman Ben Bernanke signaled that the Fed was considering a new round of bond purchases to try to help a struggling economy emerge from the wreckage of the Great Recession. The Fed’s purchases were intended to shrink long-term loan rates to spur borrowing and spending.

Some economists say they think conditions are ripe for Yellen to alert investors that the central bank may be inclined to act at its next policy meeting Sept. 20-21 — especially in light of recent remarks from other Fed officials.

Two close Yellen allies — William Dudley, president of the Federal Reserve Bank of New York, and Stanley Fischer, the Fed’s vice chairman — have suggested in the past week that a strengthening economy will soon warrant a resumption of the rate hikes the Fed began in December.

That was when it raised its benchmark lending rate from near zero, where it had been since the depths of the financial crisis in 2008.

“We’re edging closer towards the point in time where it’ll be appropriate to raise interest rates further,” Dudley said in an interview with Fox Business Network.

And in a speech, Fischer offered an upbeat economic

view, saying, “We are close to our targets.” Fischer added that, apart from volatile energy and food prices, chronically low inflation is now “within hailing distance” of the Fed’s 2 percent target.

Sung Won Sohn, an economics professor at California State University, Channel Islands, interpreted the officials’ comments to suggest that support is growing among Yellen and others on the Fed’s policymaking board for another rate increase as early as next month.

“The probability of a hike at the September meeting has gone up and will go up more after Yellen speaks,” Sohn said.

David Jones, chief economist at DMJ Advisors, agreed that the chances of a September rate hike are rising, especially if forthcoming economic data, including next week’s jobs report for August, show strength.

But other economists say they think December remains a more likely time for a resumption of rate increases.

And some say that if the Fed does decide to act in September, it would need to further prepare investors. According to data from the CME Group, investors foresee only about a 24 percent probability of a rate hike in September and only about a 56 percent chance by December.

Diane Swonk, chief economist at DS Economics, suggested that one reason U.S. stock averages established highs so soon after Britain’s June vote to leave the European Union escalated global economic fears is the belief among many that the Fed will leave rates alone until perhaps year’s end.

“Investors are not pricing in a Fed tightening,” Swonk said. “We still have uncertainty coming from abroad, and there are a lot of land mines out there. I think Yellen will want to keep her options open in her Jackson Hole speech.”

Yellen is the lead-off speaker Friday for an annual conference attended by members

NOTICE

NOTICE is hereby given that JUVINS THELUSMA of Bernard 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 26thday of August, 2016 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

NOTICE

NOTICE is hereby given that KEVIN EVANS of Soldier 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 19th day of August, 2016 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

of the Fed’s board of governors in Washington, officials from the Fed’s 12 regional banks and monetary leaders from around the world.

The conference’s theme is “Designing Resilient Monetary Policy Frameworks for the Future,” and Yellen may address whether the global economy has become trapped in a slump of low growth and low inflation and, if so, how central banks might respond.

John Williams, president of the Fed’s San Francisco regional bank, has suggested that the Fed might need to consider raising its 2 percent inflation target to provide more leeway for its efforts to accelerate growth.

Mark Zandi, chief economist for Moody’s Analytics, explained the idea this way: “We lost a lot of ground during the Great Recession, so maybe it makes sense to run the economy on the hot side for a while.”

Still, Zandi and other analysts say the Fed seems far from making any major policy changes given the time it would take to build a consensus.

Before the formal conference got underway, a group of Fed officials led by Esther George, head of the Kansas City Fed, met with about 100 activists with the Fed Up coalition, which is seeking to change how the Fed’s regional

banks operate and how they choose their top officials.

The activists, many wearing green t-shirts with the slogan, “We Need a People’s Fed,” presented their case to keep interest rates low until more low-income communities feel the benefits of the current expansion.

The group is also campaigning to expand opportunities for minority groups to have representation on the boards of the Fed’s 12 regional banks.

“We asked the Fed presidents to keep distressed communities in mind when they make their interest-rate decisions,” said Dan Crawford, a spokesman the liberal Eco-

Federal Reserve Chairman Janet Yellen. (AP) nomic Policy Institute, one of the organisations in the coalition. “Residents from communities who have not seen the full effects of the recovery talked about their experiences.”

PAGE 8, Friday, August 26, 2016

THE TRIBUNE

$4BN overhaul of LaGuardia Airport causes turbulence for PASSENGERS NEW YORK (AP) — There could be turbulence for travellers during the multibillion dollar renovation of New York’s LaGuardia Airport.

Vice President Joe Biden said the aging LaGuardia reminded him of a “Third World country” — and that was before a massive traffic tie-up related to a $4 billion overhaul prompted passengers to abandon their cabs and cars and walk to the terminals.

Officials at the Port Authority of New York and New Jersey, which runs the airport, say they hope not to repeat the debacle of last Monday, when Twitter was flooded with images of bedraggled travelers hauling children and suitcases along the Grand Central Parkway because private cars and taxis couldn’t get anywhere near the departures area to drop them off.

“Monday was a very challenging day for us,” Richard Smyth, the Port Authority executive in charge of the LaGuardia renovation, acknowledged Thursday.

The redevelopment of the airport that serves 28 million passengers a year started this summer with the demolition of a parking garage where a new main terminal will be built and the realignment of roads to make way for a new parking garage.

Smyth said the road realignment was one factor in Monday’s chaos, but others included backed up air traffic because of bad weather Sunday and a security breach that forced

a lockdown of the main terminal. Going forward, Smyth said the authority hopes to alleviate traffic congestion through measures like promoting bus service to LaGuardia and encouraging passengers to use a remote drop-off lot with shuttle service to the departure area.

“Our goal is, No. 1, to work in such a way that Monday’s events do not happen,” he said.

But critics say the Port Authority must do more to ensure that the airport functions smoothly during the prolonged redevelopment.

“They’re just not doing a very good job right now, the traffic situation is spiraling out of control,” said Joe Sitt, chairman of the Global Gateway Alliance, which advocates for improving air transportation in New York and New Jersey.

Sitt said the Port Authority must keep travelers informed about buses to LaGuardia and parking options if they choose to drive, preferably with an app that would provide real-time traffic data.

“They need to do a better job of promoting the alternatives that they’re already talking about,” he said.

A Port Authority spokeswoman said the airport’s website is updated regularly and alerts about flight and traffic delays are sent via social media.

It was during a 2014 speech about the nation’s crumbling infrastructure that Biden, a Democrat, said that if a blindfold-

Taxis line up to pick up arriving passengers near Terminal B at LaGuardia Airport in New York, where a $4 billion renovation is underway. (AP)

ed man were brought to LaGuardia he would think he was in “some Third World country.”

Biden later joined New York Gov. Andrew Cuomo, also a Democrat, for last June’s ceremonial groundbreaking for the $4 billion LaGuardia upgrade.

The new 1.3 millionsquare-foot central terminal with 35 gates, a new parking garage and connection to trains and subways is scheduled for completion by 2022.

The consortium that’s building the new terminal, LaGuardia Gateway Partners, has promised a smooth transition from the old facility to the new one.

“Our objective is to preserve and improve the passenger experience throughout construction,” said Stewart Steeves, the CEO of the consortium.

The new main terminal will be moved 600 feet from the footprint of the existing facility to give planes more acreage at the cramped

airport. Steeves said there have been “teething challenges” as the roads are realigned but steps are being taken to make the traffic patterns more manageable, such as synchronizing stoplights and placing traffic officers at key junctions.

But Monday’s gridlock left some travelers sceptical.

Faith Reel, who works for a talent scout agency, said she flies into and out of LaGuardia as often as once a week, but she may switch to Newark or Kennedy next time.

Reel said she arrived at LaGuardia from a trip to Minnesota on Monday and her husband tried to pick her up as usual. “He couldn’t get to me,” she said.

“He would get to a ramp and they would close it randomly.”

Reel said she joined hundreds of other travelers pulling their luggage outside of the airport toward Queens streets and trying

a Port Authority customer care representative helps a passenger find a temporary taxi pickup location outside of Terminal B at LaGuardia Airport in New York. (AP)

to catch a cab or connect with a ride. “It wasn’t safe at all,” she said.

Two days after Monday’s chaotic scene at LaGuardia, the Transportation Security Administration issued an advisory recommending that the airport’s travelers arrive at least 2 to 2 ½ hours before their scheduled departures.

Sitt said LaGuardia pas-

sengers shouldn’t have to arrive 2½ hours before their flights.

“A lot of the flights at LaGuardia are an hour, hour and a half,” he said.

“You’re doubling the amount of travel time.

“You’re supposed to make it easier for folks to travel in the modern era, not make it more difficult.”