09102018 BUSINESS

business@tribunemedia.net

MONDAY, SEPTEMBER 10, 2018

$4.90 Top negotiator: WTO ‘won’t hurt’ this economy

THE Bahamas’ newly-appointed chief negotiator yesterday pledged this nation “cannot join the WTO on terms that injure” its economy or any major industries.

Zhivargo Laing, pictured, who replaces Raymond Winder, sought to reassure the private sector and Bahamian public that the Government would only become a full World Trade Organisation (WTO) member if the accession terms can produce “a net gain” for the country.

The former Cabinet minister, who first submitted The Bahamas’ application for full membership back in 2001 under the then-Ingraham administration, also promised there was “no reason to fear” that WTO membership would result in an increased tax burden for consumers or businesses.

Speaking at a press conference to announce his appointment, Mr Laing said the need to eliminate or reduce numerous Customs duty lines merely meant a “shift” in where the Government obtained its revenues from - not an increase.

And, in response to arguments that The Bahamas should delay accession until it “puts its house in order” through energy and “ease of doing business” reforms, Mr Laing argued that WTO membership would provide a “platform” to achieve these goals by forcing this nation to modernise its economy.

The Bahamas has already submitted its goods and services “offers” to the WTO Secretariat ahead of the “Third Working Party” meeting on this nation’s accession bid, which is scheduled to take place in Geneva on September 21.

The Bahamian delegation, headed by Mr Laing and Brent Symonette, minister of financial services, trade and industry and immigration, will go through this nation’s positions and negotiate with both WTO officials and members of the working group - countries that have an interest in trading with this nation, such as the US, Canada, European Union

SEE PAGE 5

$4.94

Food store VAT exceeds forecast by double digits

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

$4.91

F

OOD stores’ early 12 percent VAT collections have exceeded predictions by double digits, with Super Value’s owner admitting: “We were all wrong about breadbasket sales.”

Rupert Roberts told Tribune Business that VAT “zero rated” food products were up to 30 percentage points below forecast as a percentage of total sales, resulting in supermarkets collecting significantly more Treasury revenue that forecast during the first six weeks of the 2018-2019 fiscal year.

He revealed that Super Value collected “54 percent more VAT than expected” for July, before the bread basket foods’ “zero rating” took effect. And tax

* ‘We were all wrong on bread basket sales’ * Super Value up 54% in July; 33% early August * Roberts: No govt credit reliance a ‘God send’

RUPERT ROBERTS revenues collected from consumers during the first two weeks of August, after the VAT exemption took effect, were 33 percent up

year-over-year.

These figures contrast sharply with Mr Roberts’ prediction to Tribune Business on July 20, 2018, that the “zero rating” of “bread basket food items would slash Super Value’s VAT take by two-thirds He based this on the estimate that at least 50 percent of Super Value’s product range would be VAT-free, and suggested this could apply to 100 percent of “Mom and Pop” food stores’ inventory, given that they typically sold only breadbasket items.

However, Mr Roberts conceded that his and industry predictions that breadbasket

A 50-STRONG Bahamian investor group says its “reimagination” of Nassau’s cruise port and downtown will fulfill demands “that we move away from cookie cutter proposals with no sense of place”.

Gerald Strachan, founder, president and chief executive of Culture Village (Bahamas), told Tribune Business in a statement that the group’s proposal for reviving both Prince George Wharf and the surrounding area would focus

GERALD STRACHAN

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

though, that the Government’s plan to put Prince George Wharf’s management out to bid through a public tendering process might result in any request for proposal (RFP) seeking to copy Culture Village (Bahamas) ideas by mandating that all offers have a a similar “Bahamianisation” flavour.

“To date we have been

SEE PAGE 7

SEE PAGE 5

SEE PAGE 4

* Cultural Village group’s ‘sense of place’ focus * Will serve as downtown Nassau ‘catalyst’ * Concern plan will ‘inform’ govt RFP on development consistent with this country’s heritage.

Speaking after this newspaper revealed the group had submitted a proposal to the Government to take over the cruise port’s management and operation, Mr Strachan said the project team included “award-winning” architects and designers from London, Hong Kong and Orlando who will work with Bahamian counterparts.

He expressed concern,

‘Go no further than have to’ over EU Bill

THE financial services industry wants The Bahamas “not to go further than it has to” in meeting Europe’s anti-tax avoidance demands and averting a potential “blacklisting”.

Michael Paton, pictured, a former Bahamas Financial Services Board (BFSB) chairman, told Tribune Business that the sector will meet today to assess and draw-up its collective concerns over legislation to address the European Union’s (EU) “economic substance” and “ring fencing” requirements.

The industry then plans to submit the issues raised over the Commercial Entities (Substance Requirements) Bill 2018 to the Government by week’s end, with Mr Paton questioning why September 19 appeared to be such “a hard and fast date” to have the legislation tabled in the House of Assembly.

Acknowledging that “the timelines are very constrained” for The Bahamas to pass, and enact, the legislation before the EU’s year-end deadline for compliance, the Lennox Paton attorney and partner said he expected changes will be made to the bill over the next nine days.

“There is going to be an industry-hosted forum on Monday [today] to get feedback, and go over feedback, in relation to the bill,” Mr Paton said.

“There’s been quite a flow

items would account for 50 percent of sales had proven widely inaccurate to-date.

He suggested the true proportion could be less than 20 percent, meaning consumers are purchasing more VATable grocery products.

He added that the breadbasket percentage could even be as low as 15 percent in locations such as Abaco, due to the high number of second home owners, renters and yachters who were likely less VAT-conscious than Bahamians when it came to their shopping patterns.

Mr Roberts also revealed

Cruise port proposal ditches ‘cookie cutter’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

$4.94

Benchmark crypto tie-up ‘marriage made in heaven’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net BENCHMARK (Bahamas) last night hailed its newly-formed threeway alliance as “a marriage made in heaven” that will help position this nation as a leader on blockchain and crypto currency.

Julian Brown, the BISXlisted firm’s chief executive and president, said the company’s second financial technology (Fintech) deal within a week meant it was “in the leading pack” on developing a platform to

* BISX firm unveils second alliance * Wants to ‘spearhead’ regulatory regime * As Central Bank warns Bahamians facilitate peer-to-peer trading in digital currencies and initial coin offerings (ICOs).

Benchmark (Bahamas) announced it has signed a memorandum of understanding (MoU) with Dragon Industries, the provider of crypto currency and blockchain solutions for the entertainment industry, and the

DragonExchange (DGRx).

It can now put this together with the exclusive Bahamian licence for a blockchain/digital peerto-peer financial trading and processing exchange, which it obtained last week from UK-based Charteris, Mackie, Baillie & Cummins (CMBC), “to take this new frontier forward”.

Mr Brown said

Benchmark hoped to rapidly convert the MoU with DragonExchange into “an operating understanding”, with talks having already started and attorneys working on the necessary legal documents, ahead of an imminent meeting between the two sides in the UK. He described Benchmark’s three-way tie-up

JULIAN BROWN as “fantastic”, as it linked CMBC as technology provider and platform architect with DragonExchange, which has already raised

SEE PAGE 6

PAGE 2, Monday, September 10, 2018

COMFORT SUITES ADDS VALUE WITH EXCURSION

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE TRIBUNE

Cigar enthusiasts enjoy five-day Bahamas blow

swimming pigs.

The limited-time Sandy Toes offer is available to hotel guests who book A HOUSTON-based COMFORT Suites is stays of four nights mini- group enjoyed a fiveoffering a “book now mum in any room category day stay in The Bahamas and receive a free pri- for travel through Decem- where they were able to ber 15, 2018. indulge their passion for vate island The book- fine cigars and the assoexcursion for ing window ciated lifestyle with help two” special closes on from Graycliff. that gives September its guests The visit by the Westside 30, 2018. a full-day Smokers club came after Combeach excurits president, Jory Teno, fort Suites visited the Graycliff propsion to Sandy Paradise Toes private erties during a 2017 trip Island has in to The Bahamas and met island.

The offer is intended recent years invested more Paolo Garzaroli, one of the to enhance the value of than $11m in upgrades. owners.

As a result of that meetthe 223-room Paradise Guests can now experiIsland resort. Located ence its newly-rejuvenated ing, the group organised its on Rose Island, Sandy outdoor facilities, which first Westside Smokers of Toes is a private island include the refurbished excursion that is home to pool deck, pool and protected wildlife, includ- surrounding areas. All outing royal peacocks, curly door facilities received a tail lizards, ocean reef complete “facelift” and life and the world-famous were totally transformed.

CIBC FirstCaribbean International Bank has named Colette Delaney as its new regional chief executive from November 1, 2018, succeeding the retiring Gary Brown.

Ms Delaney has more than 30 years’ banking experience, having started her career with CIBC in 1987. Prior to that, she worked with National Westminster Bank. She holds a Master of Arts degree from St Anne’s College, University of Oxford, in the UK; an MBA from Cass Business School in London; and received the Success Plaza | Bernard Road designation of associate of the Chartered Institute of • Newly Constructed Plaza Bankers in the UK. • 11 spaces available now Ms Delaney joined CIBC FirstCaribbean in 2013, and • Sizes range from 1,194 sq ft to 9,829 sq. ft. first served as the bank’s • Located in high consumer trafficed area chief risk and adminis• Ample parking trative officer. She was subsequently appointed • Modern design

Houston trip to The Bahamas from 6-10 September, 2018.

The 35 cigar enthusiasts enjoyed the fine cigars from Graycliff, in addition to traditional Bahamian cuisine, hospitality and amenities. The group now plans to expand its event to include other cigar clubs, eventually growing it into an annual cigar summit.

Apart from Mr Garzaroli and Graycliff, the group’s visit was aided

by Dupree Smith from the Ministry of Tourism’s Houston office.

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chief operating officer, and is a member of the CIBC FirstCaribbean Board.

In her recent role, Ms Delaney has had responsibility for the performance of the bank’s regional business lines – retail and business banking; cards and customer relationship management; corporate and investment banking; and wealth management.

She was also responsible for the bank’s regional country management, including local regulatory and client relationships, and has led the marketing and communications and strategy functions since May 2017.

David Ritch, CIBC FirstCaribbean’s chairman, said: “Colette brings a wealth of experience and strong leadership to the bank. Given our strategic focus on client service excellence and growing our business, her appointment to the role of chief operating officer prepared her for this new role by giving her oversight of client service matters across the various areas of our business lines, with the additional

perspective of our country management teams who reported to her. She is certainly no stranger to the region, having interacted with our clients, employees, regulators and host governments over the past five years.”

Ms Delaney added: “I am strongly committed to our values of trust, teamwork and accountability, and to continuing to build an engaging environment where all employees are respected and recognised for their unique talents and perspectives.

“I’ve been working with our staff throughout the region, and I am proud of the talent and professionalism they demonstrate every day. My task as chief executive will be to continue to strengthen our focus on our clients and to foster our team’s sense of pride in the work we do each and every day”.

Mr. Ritch also expressed the bank’s appreciation to retiring chief executive,

COLETTE DELANEY

Gary Brown, who has led its operations since January 2016. He added: “Gary changed the trajectory of our bank in a number of important ways, not the least of which has been three years of growth in revenues at FCIB. “He has steered the organisation toward maintaining a focus on our clients at all times. Through his leadership we have improved client service and the day-to-day experience of our employees who serve them. We wish Gary a long and happy retirement with his family as they resettle in the US.”

THE TRIBUNE

Monday, September 10, 2018, PAGE 3

You cannot ‘makeup’ BPL’s real questions DEAR EDITOR,

I have, admittedly, never been the least bit inclined to comment on “you say, I say” situations. Hence, though repeatedly asked to comment on the “he say, she say” scenario that eventually led to the dismissal of the Bahamas Power & Light (BPL) board (all but one), my answer was an unequivocal “no”. I don’t intend to comment now.

Something has, however, been thrust into the public domain, whether intended or not, that is indeed deserving of commentary.

The general nature of the contract BPL intends to enter with Shell for construction of a new power plant has not yet been disclosed. However, based on all that has been made public I believe one would reasonably have been led to conclude that Shell would build, own and operate the plant, and would sell electricity to BPL via a power/purchase agreement (PPA) or some similar instrument. I certainly presumed as much. Kindly note that I deliberately chose “presume” rather than “assume” lest in conclusion I make an ASS of U and ME. The disclosure that has come to light is that BPL’s former board, or at least some significant members, were willing - in fact, seemingly desirous - of BPL investing up to $100m in the proposed plant.

That disclosure strongly suggests a mindset that Shell would build, own and operate the LNG (liquefied natural gas) storage and regasification facility, and that Shell would build

Letters to The Business Editor the power plant, but that BPL would own and operate it. Furthermore, the protestations being made on General Electric’s (GE) behalf suggest the power plant will be diesel enginedriven. That decision might well be deserving of review for several reasons. I will detail a few.

Clifton Pier was the first location anywhere in the world where a stationary (land-based) slow speed diesel engine-driven power plant, burning number six fuel oil/heavy fuel oil/ Bunker “C”, was constructed. The Bahamas Electricity Corporation’s (BEC) record of maintaining its diesel engine-driven power plants has, however, been abysmal. And, yes, I did serve as chief generation engineer in the 1970s, and later as chairman for a grand total of 27 months.

In digression, my employment history also includes service as general manager of Freeport Power; general manager of Electrical Utilities Company and West End Power and Light; and as chief technical officer of Jamaica Public Service Company (JPS), a wholly-integrated electric utility serving more than half a million customers.

To dispel the oft-repeated BEC/BPL complaint that the organisation’s plant is old and under-maintained, I offer the following brief facts regarding equipment age and maintenance expenditure.

Regarding age, two

MICHAEL MOSS number six fuel oil burning, slow speed diesel engine-driven generators, supplied and installed by the same company that supplied BEC’s large diesel engine-driven generators, were installed at the Jamaica Private Power Company (JPPC) in the same timeframe as the BEC units. The JPPC units have, however, recorded approximately 50 percent more operating hours - and produced approximately 50 percent more electricity for the Jamaican grid - compared to BEC’s units. Further, JPPC only recently signed a contract to continue producing and supplying a similar annual quantum of units to the Jamaican electricity grid over the next five years.

BPL is invited to publicly disclose those comparative numbers.

Putting the foregoing in everyday parlance, two individuals purchase identical vehicles at the same time. Over a five-year period, one vehicle amasses more than 150,000 miles

while the other accumulates somewhat less than 100,000 miles. Yet the owner of the vehicle with lesser miles claims the vehicle is old and ready for retirement (BPL’s posture), while the owner of the vehicle with significantly greater miles indicates the vehicle is still in excellent condition and available for continued, reliable service (JPPC’s posture).

Regarding maintenance expenditure, a brief perusal of the report produced by consulting firm, Fichtner, will reveal that: “BEC consistently spends significantly more than the industry norm maintaining its diesel engine-driven plant, yet plant performance is significantly worse than the industry average”.

It is noteworthy that the Fichtner report further states that BEC had been spending less than the industry average maintaining its simple cycle and combined cycle gas turbine plant, yet the plants’ performances have eclipsed

industry norms (Fichtner did, however, note that protracted underspending might lead to problems in future).

Diesel engines remain the prime mover of choice for small power plants, though solar has emerged as a viable alternative. For larger power plants, especially those exceeding 100 megawatts (MW), gas turbine plants, particularly combined cycle gas turbine power plants, are a decided base load alternative.

The decision to install diesel engine-driven plants in preference to gas turbine plants has historically been skewed by the fact that diesel engines, especially larger ones, could burn relatively inexpensive number six oil whereas gas turbines could only burn more expensive number two oil/diesel/ automotive diesel oil or gas. Until recently, gas supplies have

been unavailable at many plant sites. Installation of an LNG storage/regasification facility will mean both types of plant will burn the same fuel; hence the issue of relative fuel cost is eliminated.

Eliminating fuel cost, the factors that ought to govern plant selection are: Capital cost, heat rate (efficiency), maintenance cost and reliability. Fichtner has already presented the case regarding maintenance cost and reliability for BPL’s various plants. BPL might care to publish the comparative numbers. Also, the heat rate (efficiency) of the BEC Clifton Pier diesel engine-driven plant and its Blue Hills combined cycle/STAG plant are quite similar. Again, BPL might wish to publish historical numbers.

The only very current numbers I don’t have are comparative capital cost figures. I do have a rather good idea regarding the numbers, but opt not to disclose lest in conclusion I do make an ASS of U and ME. Sincerely, Michael R Moss Freeport September 7, 2018

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PAGE 4, Monday, September 10, 2018

THE TRIBUNE

Food store VAT exceeds forecast by double digits FROM PAGE ONE that another “terrible concern” for the retail industry - that they would be unable to “cover” the 12 percent VAT paid on imported inventory at the border, thus requiring the Government to pay them a refund - had also failed to materialise to-date.

The sector had feared the Government would be unable to effect timely refunds, thus impairing their cash flow, and Mr Roberts described its ability to cover the “border VAT” as “a God send”.

The Super Value chief branded the immediate results from 12 percent VAT as all-around “good news”, since retailers’ cash flows were not impaired; the Public Treasury was likely earning more revenues than anticipated; and the lowerthan-expected breadbasket sales percentage would aid

Dr Duane Sands’ quest to make these foods healthier.

“I think we were all wrong about the amount of bread basket items we’re selling,” Mr Roberts told Tribune Business. “Definitely the Retail Grocers Association (RGA), of which I’m secretary, we’re wrong.

“I’m pleasantly surprised that I’m wrong and how low it is. I say that because I thought it could run up to 50 percent, but I know it’s now going to run under 20 percent. I know it’s going to be under the 20 percents, and hopefully in the range of 15 percent.”

Mr Roberts expressed hope that “the whole country” would follow Abaco, where bread basket items were on target to hit 15 percent of total sales. “In Abaco they have the tourism; they have the foreign residents and the yachters that are out buying from local stores, and they’re not buying the bread

basket items,” the Super Value chief added.

“They’re [Abaco’s bread basket percentage] is going to come in lower than New Providence, which is great.

We’re selling to the tourists in this country at 12 percent and they’re paying our taxes.”

As for Super Value’s experience, Mr Roberts told Tribune Business: “In July, we collected 54 percent more VAT than expected.

And, in the first couple of weeks of August, we collected 33 percent more VAT than last year.

“Therefore, the 50 percent bread basket estimate was wrong. For the last 50 years we’ve been promoting bread basket items in the newspaper, the radio and TV. Now, the good news is we expect bread basket items to be less than 20 percent of sales, and hopefully they will be in the vicinity of 15 percent.

“We’re collecting 33

percent more, which is indicative we over-estimated the percentage of bread basket items we are selling.”

The 2018-2019 budget “zero rated” so-called “breadbasket” food items as one of the protections designed to insulate lower income Bahamians from the VAT increase’s impact, meaning the 12 percent has not been added to the final sales price from August 1.

This also benefits food stores, wholesalers and all elements in the local supply chain, as they also do not have to pay the new 12 percent rate. If a product has “zero rating” status, businesses are exempt from paying VAT on their input costs in proportion to the amount of inventory accounted for by these items - in a food store’s case, the bread basket.

Mr Roberts, meanwhile, expressed surprise that retailers had largely been

able to cover the “border VAT” on imported inventory without having to resort to government credit or refunds.

“We’re covering 12 percent of VAT at the port, which means merchants do not require a refund.

That was a big concern of merchants,” he explained.

“We’re collecting the VAT to cover it, and that’s a God send.

“We don’t want the Government owing us and they’re not able to pay, which strangles cash flow and puts small and big merchants out of business.

This was a terrible concern among merchants that the Government would start owing us money they were not able to pay, summed up in one word: Barbados.”

Mr Roberts also revealed that Super Value had to resort to using its bond, “without paying the duty” immediately, to move

imported inventory from the dock after Customs’ reclassification of codes and tariff headings - without informing major importers and brokers - caused temporary clearance issues earlier this summer for the private sector.

Still, Mr Roberts praised the Ministry of Finance and government revenue agencies for working with retailers, wholesalers and others to accomplish the transition to 12 percent VAT and associated “zero ratings” with a minimum of fuss - something he described as “a first time in 50 years” event.

He added that there was “a great difference” between this government’s approach and that taken by the Christie administration, as the current one was “not penalising us for mistakes” but working with the private sector to get it right.

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THE TRIBUNE

Monday, September 10, 2018, PAGE 5

‘Go no further than have to’ over EU Bill FROM PAGE ONE

of comments in, and I expect there to be some changes to the bill before it gets tabled in Parliament.

“I know there are some concerns in some sectors as to how they are impacted by the bill. We’re trying to get industry concerns and put them in a coherent submission to the Government that will be provided by the end of next [this] week.

I do believe there will be changes and we’ll have to see how that plays out.”

Detailing industry concerns, Mr Paton said these included how physical presence requirements in existing Bahamian laws and regulatory regimes - such as the Banks and Trust Companies Act - will be accommodated by the new bill.

“Is that sufficient,” he said of existing laws, “or are you going to require me to do something more? What’s the degree and nature of reporting that has to be done? How do you show you are compliant, and what do you have to report? It’s going to be the reporting aspect, the physical presence issue. That’s what people want to get a better understanding of and how it’s going to play out.

“The industry wants the bill not to go further than it has to to meet the EU.” KP Turnquest, deputy prime minister, told Tribune Business last week that the Minnis administration aims to lay the bill in Parliament on September 19, when the House resumes sittings following its summer break.

He said the Government was in the last stages

of consultation with the financial services industry, and seeking to handle the sector’s final questions, as it strives to meet the tight timeline for passing and implementing the legislation ahead of the EU’s threatened “blacklisting” of jurisdictions deemed uncooperative in the fight against tax avoidance.

Agreeing that The Bahamas faces a tight timeline, Mr Paton nevertheless said: “I don’t know why that’s [September 19] a hard and fast date. I don’t know why the bill has to be tabled on that date, but I hope if we need more time we will get more time.”

He suggested that the bill needed to be passed by November, so it could be “bedded down and everything be in effect by January 1”. The attorney added that a transition period, giving all affected a time to adjust, was not unreasonable although it remains to be seen how the EU will react to that.

The Commercial Entities (Substance Requirements) Bill is designed to address the EU’s demand for all nations to impose “economic substance” regimes that effectively require companies to have a physical presence - and do “real business” - in a jurisdiction.

It wants corporate profits, revenues and assets to be taxed in the jurisdictions where they are generated.

They are thus aiming to prevent companies, especially multinational corporations, from exploiting gaps in tax types, rates and rules to artificially shift profits from jurisdictions where they are generated to low or “no tax” jurisdictions, thus lowering their tax bill.

The EU also wants the elimination of “ring fencing”, or preferential tax regimes for non-resident entities and foreign investors, which are not offered to their Bahamian

NOTICE

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counterparts. A particular concern here is the preferential stamp tax regime for International Business Companies (IBCs), already in existence, and which investors have a legitimate expectation of enjoying.

Mr Paton said The Bahamas needed to move swiftly, and decisively, in developing tax and incentive regimes to attract the business and industries it wanted to these shores once the EU’s concerns were addressed.

He explained that the EU’s demands should “level the playing field for economic substance” between most countries, meaning that The Bahamas will have to look to tax policies to “differentiate” itself in the eyes of international investors.

“We’ve got a lot of highlevel planning that needs to be done, and hopefully that will be done in a coherent manner to attract business to The Bahamas,” Mr Paton told Tribune Business. “Tax is going to be a driver for that.

“If we’re trying to attract a particular business to The Bahamas we’re going to have to attract it for other reasons other than physical presence and substantive activities in the jurisdiction.

If we’re going after shipping companies and headquarters, we have to put in place incentives to get them to come, have a reason to come.

“It can’t be on the basis of compliance and having substantive economic presence requirements. That’s not going to be the leverage.

It’s going to be the other tax concessions provided.”

TOP NEGOTIATOR: WTO ‘WON’T HURT’ THIS ECONOMY FROM PAGE ONE (EU), UK and CARICOM members.

Mr Symonette said the delegation would include Marlon Johnson, acting financial secretary, given that some 6,000 tariff lines will be discussed to determine which will be reduced or eliminated, by how much, and over what timeframe.

The Bahamas will also seek carve outs, or exemptions, for certain tariffs - such as those that protect local industry or retail.

Ministry of Agriculture and Fisheries officials will also be present in Geneva given the potential implications WTO membership has for those two sectors, but Mr Symonette said The Bahamas had long been preparing for tax reform and the need to reduce/ eliminate Customs duties that were pared down from 1,500 to 29 categories under the last Ingraham administration.

The minister added that the amount of revenue lost, and needing to be replaced, as a result of WTO accession was “a fear we don’t know yet” given that it now depends on the skills of Bahamian negotiators to determine which tariffs this nation will give ground on. Yet he said many tariff lines generated “under $100,000 a year” for the Government, meaning the impact of their elimination will be negligible.

“There’s no reason to fear WTO accession will cause

an increase on taxation of the public of business community,” Mr Laing said, arguing that it would merely cause “a shift” to other tax forms such as VAT. “The WTO would represent a beneficial change to this extent,” he added. “If businesses import goods they pay duty to the Government on those goods without a single item being sold. That’s tying up cash flow.”

With WTO membership mandating such “barriers to trade” be addressed, Mr Laing added: “From the business point of view, it’s a freeing up of cash, capital for other purposes to allow this cash to be used more productively in the economy.”

Many Bahamians, both in the private sector and outside, believe the case for The Bahamas to join the WTO - especially now - has not been made. Mr Laing acknowledged there were still “anxieties” over the move, but said they were much reduced compared to when he had ministerial responsibility for trade in the last two Ingraham administrations.

He pointed to a recent Bahamas Chamber of Commerce and Employers Confederation (BCCEC) seminar, where “at least half” of attendees signalled they either understood or supported the need to join WTO. “That could not have been the case when I started this process in 2001,” Mr Laing said.

Mr Symonette yesterday

said WTO membership would position the Bahamian economy such that it would lower the cost of business, reduce the price of consumer goods, enhance export opportunities and provide certainty for persons engaging in trade with this nation.

He added that this would lead to higher Bahamian GDP growth and employment, boost local ownership of the economy, and lead to “increased prosperity”.

“If negotiations and the terms of WTO membership prove to be mutually beneficial, The Bahamas intends to join the WTO in late 2019 or mid-2020,” Mr Symonette added. He indicated that The Bahamas could not afford to be isolationist as the only western hemisphere nation yet to become a full member of the body that oversees the world’s rules-based trading regimes.

Mr Laing said The Bahamas would only advance to full membership if the accession terms “enhance the nation’s development and economic prosperity”, allow for a reasonable period for the economy to adjust and adapt, and provided “mutual satisfaction” for The Bahamas’ trading partners.

“If these cannot be addressed, membership cannot be achieved,” Mr Laing said, promising to promote and protect Bahamian interests first.

Emphasising that the process must result “in a net gain” for The Bahamas, he added: “The Bahamas ought not, and cannot, join the WTO on terms that injure this economy, injure significant business parcels in this economy.”

Mr Laing, who oversaw The Bahamas’ entrance to the Economic Partnership Agreement (EPA) with the European Union (EU) during 2007-2008, the only rules-based trading regime of which it is currently a member, said fears about that agreement’s impact on the economy and private sector had proven unfounded.

With the WTO accession process “less stringent” than the EPA, Mr Laing suggested there was “really very little reason for people to believe” the former would have an impact that the European agreement did not.

He added that the Government would again meet with the Chamber of Commerce and private sector before heading to Geneva, with Mr Symonette saying further consultations had addressed concerns that businesses had been unable to properly advise on the negotiating positions The Bahamas should take.

The minister added that the Government was addressing concerns over energy reform and the “ease of doing business” “simultaneously” with the WTO accession process, rather than delaying the latter until the former had been achieved.

PAGE 6, Monday, September 10, 2018

THE TRIBUNE

JOB VACANCY A leading Law firm with offices located in Nassau, is seeking to fill the following position: FILING CLERK Applicant must possess the following:

Benchmark crypto tie-up ‘marriage made in heaven’ FROM PAGE ONE

· High School Diploma / BGCSE - English & Math · Typing skills – at least 60 wpm · Proficiency in Microsoft Office Word and Excel · Self-motivated and ability to work without supervision · Ability to multi-task.

Medical Insurance and Pension Plan offered (Contributory).

Salary commensurate with skill and experience.

Interested persons are to send a cover letter and resume to humanresbahamas@gmail.com NO LATER THAN 17TH SEPTEMBER, 2018.

monies through an initial coin offering (ICO) of its DragonToken.

Describing the alliance as “unique”, Mr Brown said it “speaks wonders for how this type of development will happen in the future” with Benchmark and The Bahamas providing a “well-regulated financial jurisdiction” where such crypto/blockchain activities can be based.

The company’s alliance came as the Central Bank of The Bahamas, responding to a rash of companies promoting ICOs and crypto/ blockchain solutions, moved to warn Bahamians of the risk involved in investing in an unregulated, still-evolving industry.

“The Central Bank of The Bahamas wishes to advise the public that no licence has been granted to crypto currency operators by the bank or any other financial regulator to offer digital currency, or to provide such services such as cryptocurrency exchanges, crypto loans or crypto and fiat processing in or from within The Bahamas,” the regulator warned.

“Persons investing in such products and services do so at their own risk.”

The Central Bank added that crypto/digital currencies were not legal tender in The Bahamas, are not issued or backed by it, and are not legal foreign currency either.

“The Central Bank does

To advertise in The Tribune, contact 502-2394

MARKET REPORT THURSDAY, 6 SEPTEMBER 2018

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

BISX ALL SHARE INDEX: CLOSE 1,953.45 | CHG -5.54 | %CHG -0.28 | YTD -110.12 | YTD% -5.34 BISX LISTED & TRADED SECURITIES 52WK HI 4.50 19.17 7.50 4.46 1.26 0.19 3.92 9.17 6.60 5.30 12.50 2.71 1.77 8.21 6.21 13.00 7.00 4.50 13.50

52WK LOW 3.50 19.17 7.50 3.32 0.90 0.12 2.50 8.55 6.09 3.49 9.00 2.30 1.40 7.25 6.00 9.50 5.67 3.25 12.50

1050.00 1000.00 1000.00 1000.00

1000.00 1000.00 1000.00 1000.00

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

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 Cable Bahamas Series 6 Cable Bahamas Series 8 Cable Bahamas Series 9 Cable Bahamas Series 10 Colina Holdings Class A Commonwealth Bank Class E Commonwealth Bank Class J Commonwealth Bank Class K Commonwealth Bank Class L Commonwealth Bank Class M Commonwealth Bank Class N Fidelity Bank Class A Focol Class B

CORPORATE DEBT - (percentage pricing) 52WK HI 100.00

52WK LOW 100.00

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 ##########

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

SYMBOL LAST CLOSE AML 3.89 APD 17.43 BPF 9.09 BWL 4.45 BOB 1.01 BBL 0.18 CAB 2.60 CIB 9.17 CHL 6.15 CBL 3.68 CBB 12.40 CWCB 2.68 DHS 1.75 EMAB 7.63 FAM 6.21 FBB 13.00 FIN 6.31 FCL 3.65 JSJ 13.01 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)

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 LAST SALE 100.00 108.39 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

CLOSE 3.89 17.43 9.09 4.45 1.01 0.18 2.50 9.17 6.15 3.65 12.40 2.84 1.75 7.67 6.21 13.00 6.31 3.65 13.01

CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 -0.10 0.00 0.00 -0.03 0.00 0.16 0.00 0.04 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

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

CLOSE 100.00

CHANGE 0.00

107.77 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

-0.62 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

VOLUME

8,000 1,000 5,000

12,154 50

VOLUME

EPS$ 0.268 0.932 -0.306 0.317 0.059 0.000 -0.996 0.700 0.441 0.171 0.627 0.102 0.231 0.000 0.670 0.679 0.719 0.277 0.631

DIV$ 0.100 1.130 0.000 0.230 0.000 0.010 0.000 0.710 0.220 0.120 0.620 0.060 0.070 0.084 0.280 0.500 0.200 0.120 0.590

P/E 14.5 18.7 N/M 14.0 N/M N/M -2.5 13.1 13.9 21.3 19.8 27.8 7.6 N/M 9.3 19.1 8.8 13.2 20.6

YIELD 2.57% 6.48% 0.00% 5.17% 0.00% 5.56% 0.00% 7.74% 3.58% 3.29% 5.00% 2.11% 4.00% 1.10% 4.51% 3.85% 3.17% 3.29% 4.53%

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%

MATURITY 19-Oct-2022 ############### 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

MUTUAL FUNDS 52WK HI 2.17 4.16 2.01 180.30 157.58 1.57 1.70 1.65 1.10 6.99 8.54 6.15 10.52 11.46 10.46 10.00 8.45 11.20

52WK LOW 1.67 3.04 1.68 164.74 116.70 1.51 1.62 1.59 1.08 6.41 7.62 5.66 8.65 10.54 9.57 9.88 8.45 11.20

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 Colonial Bahamas Fund Class D Colonial Bahamas Fund Class E Colonial Bahamas Fund Class F

NAV 2.17 4.14 2.01 180.30 155.10 1.57 1.68 1.65 1.09 7.27 8.32 6.48 11.32 11.71 10.31 9.93 8.45 11.20

YTD% 12 MTH% 2.24% 4.15% 0.03% 4.59% 1.23% 2.26% 0.90% 3.44% 1.11% 6.05% 2.50% 4.38% -0.75% 3.51% 1.75% 4.07% -0.52% 1.03% -1.08% 1.77% -5.96% -3.05% 1.90% 4.59% 7.24% 11.96% 2.77% 3.88% 3.94% 4.69% -0.61% 0.75% 1.13% N/A 2.95% N/A

NAV Date 31-Jul-2018 31-Jul-2018 27-Jul-2018 30-Jun-2018 30-Jun-2018 31-Jul-2018 31-Jul-2018 31-Jul-2018 31-Jul-2018 30-Jul-2018 30-Jul-2018 30-Jul-2018 30-Jul-2018 30-Jul-2018 30-Jul-2018 30-Jun-2018 30-Jun-2018 30-Jun-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

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

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

not regulate or supervise virtual currencies, nor has the bank authorised any entity to operate a virtual currency platform,” the Central Bank reiterated. “The public is further advised to seek professional advice with respect to matters regarding savings and investments from legitimate and licensed financial institutions.”

Backing the Central Bank’s warning, Mr Brown said Benchmark planned to “spearhead” efforts to work with the Central Bank and other regulators, such as the Securities Commission, to develop an appropriate regulatory/licensing regime for the sector.

Pointing out that Barbados is already facilitating ICOs, he told Tribune Business: “We’d like to do the same thing here, and look to assist the Central Bank and Securities Commission.

“We have every intention of making an application to the Central Bank’s request for interest on creating a digital Bahamian dollar.

We have the skill set, we have the platform, and are well-poised to be successful in getting that going and winning the contract if the Government decides to move aggressively in that direction.”

Mr Brown described crypto currency and blockchain, together with peer-to-peer trading, as the “new financial services future, and we have to get on this rail”.

“We’re there with the major leaders in other

financial services jurisdictions, and are happy to make sure The Bahamas participates,” he added.

“It’s a global world. We’re in the leading pack. We’re leading, not following, developing a platform for blockchain, crypto and peer-to-peer, which is where the world wants to go in the financial sector.”

Mr Brown said Benchmark’s efforts, and the blockchain/crypto sector generally, offered “significant opportunities” for The Bahamas in the legal, administrative and regulatory sectors, as well as the issuance and launch of ICOs. He added that Benchmark was investing between $250,000 to $500,000 in the venture.

Dragon Group’s chief executive, Paul Moynan, said in statement: With Dragon’s upcoming launch of our exchange we have found the right home for it in The Bahamas. The quality of The Bahamas’ financial services industry is recognised worldwide, and Benchmark Advisors’ offer of its CMBC developed digital peer-to-peer blockchain trading platform made The Bahamas the premier jurisdiction for us.

“This partnership will lead in to the launch of products in several vertical markets under Dragon as well as our ICO platform. Benchmark’s human resources team bring a wealth of experience, and we look forward to working with them soon.”

ALIBABA’S JACK MA TO STEP DOWN AS CHAIRMAN IN SEPTEMBER 2019 BEIJING Associated Press

JACK MA, who founded e-commerce giant Alibaba Group and helped launch China’s e-commerce boom, announced on Monday he will step down as the company’s chairman next September.

In a letter released by Alibaba, Ma said he will be succeeded by CEO Daniel Zhang, an 11-year veteran of the company. Ma handed over the CEO post to Zhang in 2013 as part of what he said was a longplanned succession process.

Ma, a former English teacher, founded Alibaba

in 1999 in an apartment in the eastern city of Hangzhou to connect Chinese exporters with foreign retailers. It expanded into consumer retailing, online finance, cloud computing and other services, becoming the world’s biggest e-commerce company by total value of goods sold across all its platforms.

Ma, who turned 54 on Monday, became one of the world’s richest entrepreneurs and one of China’s best-known business figures. The Hurun Run report, which follows China’s wealthy, estimates his net worth at $37bn.

NOTICE

AKELEY INVEST & TRADE S.A. (In Voluntary Liquidation) Company No. 139386

NOTICE is hereby given pursuant to Section 204, subsection (1)(b) of the BVI Business Companies Act, 2004 that the Company is in voluntary liquidation. The voluntary liquidation commenced on 17th July, 2018. The Liquidator is Martin Elzi of Talstrasse 83, 8001 Zurich, Switzerland.

Dated 17th July, 2018 (Sgd.) Martin Elzi Voluntary Liquidator

THE TRIBUNE

Monday, September 10, 2018, PAGE 7

Cruise port proposal ditches ‘cookie cutter’ FROM PAGE ONE

fairly quiet about our submission because, as far as we can tell, it alone captures the culture, history and heritage of The Bahamas, which will give visitors to the redeveloped Prince George Dock a sense of place while solving the most critical problems expressed by our residents, our visitors and the cruise companies,” Mr Strachan said.

“Beyond that, we see our proposal as a critical catalyst for the redevelopment of the downtown area, and its elements will provide an invitation for our residents and for our visitors from both Cable Beach and Paradise Island to frequent a far less congested city centre.”

Mr Strachan said Nassau and its cruise port “both demand and deserve experiences, elements and features that are recognised as being of The Bahamas, while serving the needs of our visitors and residents.

“Once our proposal is presented, you will see the philosophy of the Culture Village Group at its core,” he added. “The people of The Bahamas are demanding that we move away from the cookie cutter proposals that have no sense of place, and that we create instead structures that become a proud part of the built heritage of our country. That is our plan.”

Mr Strachan said nondisclosure agreements (NDAs) prevented him from revealing the identities of Culture Village (Bahamas) partners, but added: “You may recall that the membership of our Culture Village Group is comprised of 50 prominent and quite successful Bahamians from across a broad spectrum of professionals and business careers.

NASSU CRUISE SHIP PORT

“And our recommendations and solutions for the redevelopment of Prince George Dock reflects that spectrum. Further, the consortium that we have created for the project includes award-winning and world-renowned architects and designers from Orlando, London and Hong Kong, whose talents have been combined with award-winning Bahamian architects, artists and designers, all of whom you will recognise and whose work both the local and international communities will recognise.”

The former Family Guardian president, though, expressed concern over how Cultural Village (Bahamas) proposal may be used to inform the Government’s RFP. He said: “Now that an outline of our proposal has been seen by the BIA (Bahamas Investment

Authority), our concern with the RFP is that it will require other bidders to ‘Bahamianise’ their proposals, thereby addressing what we have seen as the most significant deficit between ours and those that have been touted publicly.”

Mr Strachan’s group will almost certainly face competition from the consortium headed by Global Ports Holding, which operates multiple cruise ports in Europe and the Far East, together with BISX-listed Arawak Port Development Company (APD) and CFAL (formerly Colina Financial Advisors).

That group’s 49-page proposal, obtained by this newspaper, said its plans to transform Nassau’s cruise port will give the economy a $16bn boost spread over 30 years. It added that a $285.7m upgrade of Prince George Wharf through a

waterfront entertainment park would inject an extra $216m into the Bahamian economy in the first year alone.

Cultural Village (Bahamas) efforts have spanned three administrations, both FNM and PLP. A Tribune Business article, dating from October 2010, reported on how Mr Strachan and his group were preparing to submit their proposal to the

then-Ingraham Cabinet.

The “cultural village” plan was reported as an $80m project, covering 30-35 acres at Arawak Cay, and billed as creating 500 construction jobs and some 150-200 full-time posts.

The group’s plans had to be adjusted, though, after the Government ultimately decided to relocate Nassau’s shipping companies from Bay Street to Arawak Cay. The Nassau Container

Port subsequently took up much of the real estate eyed for the “cultural village”, which was intended to provide an authentic Bahamian cultural and historic experience for locals and visitors.

A 2014 report quoted Mr Strachan as saying just 2.5 acres remained available on Arawak Cay. Yet it also revealed the group’s plan to propose a privately-managed cruise port at Festival Place from then.

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