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FRIDAY, OCTOBER 8, 2021
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Atlantis owner urged: Obey Bahamas’ laws * Union chief fears COVID testing ‘setting bad precedent’ * Making staff pay compromise with Brookfield policies * Ferguson: Multinationals cannot ‘disregard the law’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A trade union leader yesterday urged Atlantis’ owner to “obey the laws of The Bahamas” relating to COVID-19 testing, and warned the present situation “is setting a bad precedent”. Obie Ferguson, the Trades
Union Congress (TUC) president, told Tribune Business that the laws of a sovereign nation such as The Bahamas must take precedence over any worldwide policy implemented by Brookfield Asset Management and other multinational conglomerates with businesses and operations in this nation.
He added that the situation at Atlantis, involving the resort’s policy that unvaccinated staff must pay for their weekly COVID-19 tests, could encourage other major employers to “disregard the law” and follow suit SEE PAGE B4
TUC president Obie Ferguson.
$160M REVENUE CUT FROM VAT RATE SLASH
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
The Government’s planned VAT rate cut will slash revenues by $160m per year, an ex-Cabinet minister asserted yesterday, as he slammed its “silence” on how extra spending will be paid for. Kwasi Thompson, former minister of state for finance, said in an e-mailed statement that the Davis administration’s proposed two percentage point VAT rate cut to 10 percent would cost the Public Treasury some $800m if applied across its five-year term. The Progressive Liberal Party (PLP), while in Opposition, suggested the VAT rate cut would only initially be applied for one
* Gov’t ‘silent’ on how extra spending paid for * Ex-minister’s ‘fiscal irresponsibility’ accusation * Argues ‘not telling Bahamians the whole story’ year to see if it resulted in increased revenue by stimulating a greater volume of economic transactions. However, there was no mention of any one-year restriction or ‘trial’ in Wednesday’s Speech from the Throne. No empirical studies, though, have been produced to justify the move or show what impact it will have on government revenues and the overall fiscal position, as well as the wider economy. However, the newly-elected administration effectively doubled down on its VAT rate cut pledge during Parliament’s opening by promising that
$400M AIRPORT PPPS UNDER GOV’T ‘REVIEW’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
SOME $400m worth of airport upgrades are under review to determine if the process as designed aligns with the Davis administration’s strategy, a top aviation official said yesterday. Algernon Cargill, director of aviation, told Tribune Business that he and his officials “will have an answer soon” from Chester Cooper, deputy prime minister, and his team on whether the Grand Bahama and six Family Island airport public-private partnership (PPP) bidding processes will launch as envisaged by the former administration. Describing this review as a normal procedure any prudent incoming administration would initiate, given the sums of money involved and importance to Bahamian SEE PAGE B5
CREDIT ACCESS SLUMPS TO UNDER 50% OF GDP By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
Credit to the private sector continued its “longterm decline” during the COVID-19 pandemic to drop below a sum equivalent to 50 percent of GDP, Moody’s has revealed. The credit rating agency, in its just-published full country analysis on The Bahamas, highlighted the increasing difficulties companies and individuals are facing in accessing loans by disclosing a more than 15 percentage point slump in total outstanding credit over the past decade - a
trend that further worsened due to the fall-out associated with COVID-19. “Credit to the private sector has been on a longterm decline for years, with credit to the private sector falling from around 65 percent of GDP (gross domestic product) in 2010 to around 50 percent by end-2019,” Moody’s said. “The IMF credits the contraction in credit to more stringent lending standards, a low-growth environment keeping demand for credit low, and overall more caution from banks. This trend persisted SEE PAGE B5
it will be applied “across the board”. No specifics or timelines were given in the Speech from the Throne, with some observers wondering whether “across the board” means it will eliminate the complex and costly exemptions introduced by the former Minnis administration. The absence of details was cited yesterday by Mr Thompson, who accused the Government of preparing to pursue “fiscally irresponsible policies”. Questioning how the Davis administration’s will finance its expanded social initiatives, amid the worst economic
KWASI Thompson and fiscal crisis in The Bahamas’ history, when it is cutting the Public Treasury’s main source of revenue, Mr Thompson blasted: “The Speech makes it clear that there is a dramatic shift from the fiscally responsible policies that are required for a robust recovery. “The Fiscal Responsibility Act was introduced to SEE PAGE B4
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PRIVY COUNCIL HEARING COULD HALT GOV’T/DEVELOPER ‘SCUTTLING’ early 2000s, NGOs have repeatedly been met with what are extremely high security for costs orders AN OUTSPOKEN QC by the court. By the use was yesterday optimistic of these security for costs that an upcoming Privy mechanisms, civil sociCouncil case may set legal ety has been denuded precedent over tactics and deprived of its day in employed by the Govern- court. “There is the perception ment and developers to that once developers and “scuttle” court challenges. the Government Fred Smith QC, have entered into the Callenders & a Heads of AgreeCo attorney and ment, secretly partner, told Tribusually, the sacred une Business the cow of develophighest court in ment should not the judicial system be challenged by has granted perlegitimate, justified mission for his reasons, and strong Responsible cases by the NGOs Development for have been torpeAbaco (RDA) doed or foundered client to contest “the over-zeal- FRED SMITH, QC. on the rocks of security for costs.” ous protection” RDA is challenging a afforded by the Bahamian November 2017 ruling courts. Speaking after RDA by Supreme Court Jusobtained “leave to tice, Petra Hanna-Weekes, appeal” directly from the and which was subsePrivy Council, having quently upheld by the been denied this by the Court of Appeal, to pay Court of Appeal, he said the Abaco Club $150,000, the outcome could impact and the Government a both the magnitude and further $100,000, as a amount of so-called “secu- total $250,000 “security rity for costs” orders that for costs” relating to its have frequently been used challenge to the former’s to stifle public interest liti- marina in Little Harbour. “Security for costs” are gation in The Bahamas. Recalling cases where he effectively a bond, lodged has acted for Save Guana in escrow, that will be used Cay Reef Association, to cover a respondent’s Save the Bays, Water- legal costs - a well as comkeepers Bahamas and pensate them for time and reEarth, Mr Smith said: delay - should the appli“Many non-governmental cant in a Judicial Review organisations (NGOs) or similar action ultimately have been denied their day lose the case. Developers and the in court on the merits of their claim by the Govern- Government will likely ment and the developers argue they are justified joining forces and scut- in demanding “security tling what are meritorious for costs” payments given and substantial public the legal expenses they interest claims by using incur in combating Judiprocedural trench warfare cial Review challenges, such as security for costs many of which they view as frivolous and having no applications. “Regrettably, since the chance of success. For developers, in development of environrequiring mental jurisprudence in particular, The Bahamas since the SEE PAGE B7 By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
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Succession planning is vital to lasting success Whether you are a small family business or a large corporation, a business owner or a human resources manager, effective retirement and succession planning is vital for your company’s continuing success. Far too often we leave these matters to chance and blame the politics, and other biases, for our failure to identify emerging leaders who can assume key roles in the companies we serve. This column today focuses on strategies for successful succession. Here are some suggestions: Start early One of the most common problems is people not giving succession planning the time it deserves early enough. Unless forced to discuss it by an employee approaching retirement, many managers bury their heads in the sand, thus missing the opportunity to plan for a smooth transition well enough in advance. This can lead to intense pressure later on. Start thinking about it as early as possible. This
your company when they do. If you are considering a business leader or senior manager’s succession, could they work alongside their successor for six to 12 months, then continue parttime in a mentor-style capacity to support key decisions as and when required? Be sure to allow enough time for them to pass on their contacts, business and client insight, processes and tips, and to help smooth over any issues while they are still around. Could older workers at any level of the business help with inducting and training new staff? Whether the focus is on using equipment or customer service, their experience and insight can be invaluable, so do not waste it. is typically ten years ahead of an expected retirement within your sector or a specific post. Harness your senior workers’ expertise Think about how senior workers can pass on their skills and expertise so that it does not leave
Develop your deputies Do not assume succession is a simple matter of a deputy stepping up to a leadership position when a leader retires. Deputies can sometimes be more used to working in the wake of their leader, and have not had enough opportunity to be challenged in
a leadership role before actually stepping up to the position permanently. So invest in their learning, development and leadership training before that leader retires, and give them the opportunity to make key decisions - coached by their leader if necessary. Find an effective way for generations to learn from each other From younger workers training older colleagues in using technology and social media, to innovative approaches such as reverse mentoring, there are plenty of ways older workers can develop further to sharpen their talents and keep their skills fresh. Senior workers need the humility to accept that younger, less experienced colleagues may be able to see a faster, better way of doing something. It is not just about technology. From ideas generation to new approaches for customer service, older workers should embrace the fact that you are never too old to learn.
Be prepared to experiment. Try new approaches and then evaluate how they worked, so both sides can learn from the experience. It will be positive. Be flexible Your succession plan does not have to be carved in stone; it is an evolving conversation, not a binding contract. Update it regularly as circumstances change. Both the business and the individual will need the flexibility to adapt to the unexpected, but doing this within a clear strategy is always more effective. • 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 development issues. He may be contacted at tcconsultants@coralwave.com.
FINANCIAL SERVICES URGED: TARGET ‘PROFITABLE NICHES’ A CABINET of the way so they minister has urged can do what they the Bahamian do best.” financial services Kevin Moree, sector to target BFSB’s chairman, “profitable niches” told the Septemwithin the global ber 30 AGM: “The industry in a bid to onset of the revive its growth COVID-19 panprospects. demic meant we Michael Halkihad to adapt our tis, minister of strategies to ensure economic affairs, we continued to told the Bahamas achieve our manFinancial Services MICHAEL Halkitis date of creating a Board’s (BFSB) greater awareness 23rd annual general meet- of The Bahamas as a premier ing (AGM) that “within the international financial centre. financial services sector itself, “With the support of our now is the time for industry members, and through colpartners to progressively har- laboration with government ness profitable niches. during the past year, BFSB “Widespread access to has been able to provide emerging opportunities input on The Bahamas’ within these growing sectors response to international will be essential to moving initiatives; maintaining a this country forward along a marketing and promotion path of exponential growth presence; and develop stratand progress,” he added. egies to reposition the “The Government will do its financial services sector. The part in spurring innovation sector remains resilient.” through our own digitisation Tanya McCartney, BFSB’S and ease of doing business chief executive and execuefforts, which my ministry tive director, in her report will lead the charge on. to members highlighted “We will roll out the tech- priority action areas that nologies that will allow include tracking internagovernment services to be tional initiatives impacting as efficient and effective as the sector and continued possible, while introducing promotion and marketing of policies that will empower the jurisdiction despite the entrepreneurs rather than COVID-19 pandemic. impeding them with bureauShe advised attendees that cracy and red tape. the BFSB has remained true “For too long we have to its mandate of promoting sat at the bottom half of a greater awareness of The global ease of doing business Bahamas’ strengths as an rankings. international financial centre. “It is time for us to level up This, coupled with advocacy by setting the stage for our for the industry on policy business owners to be suc- matters, had dominated its cessful and then stepping out agenda.
In the Estate of
Rinaldo Romani late of 29 Sandy Port in the Western District of the Island of New Providence NOTICE is hereby given that all persons having any claims or demands against the above-named Estate are requested to send the same duly certified to the undersigned on or before the 29th day of October A.D. 2021. NOTICE is hereby also given that at the expiration of the time above mentioned the assets of the deceased will be distributed among the persons entitled thereto having regard only to the claims of which the Administrator shall then have had notice. Holowesko Pyfrom Fletcher Attorneys for the Administrator Chambers Templeton Building, Lyford Cay Nassau, Bahamas
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GB BUSINESS OWNERS APPLAUD TAX BREAKS By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net An east Grand Bahama business owner wants a further extension to the Special Economic Recovery Zone’s (SERZ) tax breaks given the huge amount of recovery work still to be completed. Nolan Bartlett, owner/ operator of Shaniqua’s Lodging, told Tribune Business yesterday that he has consistently had problems accessing the tax concessions. “We never took advantage of the concessions. We have always heard about it and we saw other people getting things, but we never had the fortune of getting anything,” he said. Grand Bahama, along with Abaco, were made “tax free zones” in 2019 following the devastating impact of Hurricane Dorian. The tax breaks and concessions were extended several times due to the difficulties involved in rebuilding from the storm, which were worsened by the arrival of the COVID-19 pandemic. Mr Bartlett said: “East End still needs a lot of work. A lot of people are still displaced by the storm. A lot of communities are just empty, so any extension of the concessions would be great. Every time we ask for information, nobody seems to know what it is we are talking about. We keep getting the run around and no one seems to be able to help. We don’t know who to go to. “Before the election I hear some sip-sip that the Government is giving out grants for businesses, but when we started to check on it people never know what it is we were talking about so we left it alone.” Peter Taylor, general manager of Express Foodmart in West End, Grand Bahama, voiced optimism about the tax breaks that the Government said in the Speech from the Throne will be extended to all Grand Bahama. “If the Government will extend the tax free concessions for West End, Grand Bahama, that would be excellent.,” he added. “West End did not get as much damage as the East End; we were barely touched. We did not get hit that badly. The place that got touched was East Grand Bahama, but West End didn’t get any flooding or sustained any high winds.”
Friday, October 8, 2021, PAGE 3
SHELL ‘STILL COMMITTED’ TO BPL ENERGY DEAL
By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net
SHELL North America (NA) yesterday said it remains committed to sealing its energy partnership with Bahamas Power & Light (BPL) despite the deal being placed under review. The multinational energy giant, in a short statement to Tribune Business, said: “Shell is committed to working with the Government to develop a reliable, affordable and cleaner source of electricity for the people of The Bahamas.” Its comments came less than 24 hours after Alfred Sears QC, minister for works and utilities, reiterated that Shell’s liquefied natural gas (LNG) plant, fuel and power purchase agreement (PPA) with BPL, as well as the latter’s $535m rate reduction bond (RRB) refinancing, are receiving “priority review”. Mr Sears said: “We’ll be organising a meeting, and it’s not just Shell North America; it’s really the RRB. BPL has been engaged over the past several months in putting together a major bond issue to raise several hundred millions of dollars. My understanding from the briefing is that it went to the Government in
July and it was presented as an urgent matter, but did not get the approval. “Here we are. They’ve come to us and they said this is urgent, we need the approval. Certainly you cannot commit the Bahamian people to acquire over a quarter
MINISTER of Works and Utlities Alfred Sears. of a billion dollar commitment unless we first inform ourselves, and satisfy ourselves, that this is a prudent investment.”
The $535m bond refinancing will generate proceeds that will enable BPL to upgrade its weakening transmission and distribution system, while paying off around $321m in existing debt. The funding may also be used to take care of BPL’s estimated $100m pension fund deficiency, and legacy environmental liabilities. However, investors who purchase BPL’s bonds will have to be repaid by the electricity monopoly’s consumers via a new charge that will be added to their bills. This, BPL’s chairman previously said, would be a sum equivalent to 15 percent of their existing bills, and is likely to make any government nervous because of the likely social and political fallout. Mr Sears, meanwhile, added: “In the Blueprint for Change, we have committed to diversifying the generation of power to include renewable and solar to at least 30 percent [of the country’s energy mix] by 2030. “So we have to review that particular project [the bond] out of necessity because we don’t have the information. “We’re just wrapping our heads around it. “It’s been framed as an urgent matter, but in order to make a
responsible decision we need to be properly briefed. We need to be convinced that it’s in the national interests of the country, so that’s basically an immediate issue we’re dealing with right now.” The Shell North America deal would see the energy giant acquire from BPL some 225 megawatts (MW) of generation assets that have been built, or are due to shortly be constructed, at Clifton Pier. A liquefied natural gas (LNG) regasification terminal is to be located nearby to provide fuel to the plant, which would have sold electricity to BPL via a 20-25-year power purchase agreement (PPA). Several sources, speaking on condition of anonymity, previously told Tribune Business that the Minnis administration felt Shell was charging BPL too high a price for the energy provided by the new power plant and wanted the rates to be lower. It was also said to believe that the talks with the energy giant were dragging out too long and wanted to explore other options, especially after the exclusivity contained in Shell’s Memorandum of Understanding (MoU) with BPL expired in late 2020. However, the two sides have kept on talking.
BUILDING CODE ‘WAY BEHIND THE CURVE’
By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net
CONSTRUCTION industry professionals yesterday backed the Government’s plan to upgrade a Bahamas Building Code that is “way behind the curve”. Quentin Knowles, the Bahamas Society of Engineers (BSE) president, speaking after the Government promised during Wednesday’s reopening of Parliament to “introduce a new and progressive Building Code to increase resilience in the face of climate change, said this has been promised but never delivered - by multiple administrations. He added: “Numerous administrations had been talking about updating the building codes. The Bahamas Building Code, in particular, was published in 2003, and those building codes and related codes are typically updated every four years maximum for obvious reasons. They quickly become out-ofdate, and irrelevant and not applicable.” Mr Knowles said it was troubling that The Bahamas’ building codes have not been revised in almost 20 years. “Considering all of
the new energy efficient requirements and sustainability requirements, and all of the fancy buzzwords you hear, The Bahamas Building Codes are, quite frankly, way behind the curve,” he added. “Therefore it is very encouraging to see that the new administration has committed to updating it and building in the sustainability requirements that everybody is talking about nowadays.” Michael Pratt, the Bahamian Contractors Association’s (BCA) president, said of the promised Building Code upgrade: “I think the process for revising the Building Code has already been put in place, and they just have to continue the process.” Craig Delancey, deputy director at the Ministry of Works, was tasked in 2020 with leading efforts to revamp the Bahamas Building Code in the aftermath of Hurricane Dorian. It was felt that part of Dorian’s devastating impact on housing in Abaco and Grand Bahama was due to weak building codes and a lack of enforcement of their provisions. Mr Delancey was supposed to report on the progress he had made by the end of 2020, but nothing was ever brought forward. Mr Pratt, when asked
about what the possible new codes would look like, said: “I haven’t seen the enhancement. I’m sure that
whatever Mr Delancey is doing will accommodate hurricanes of a higher category. To me that would
be the common sense approach to it, but to what level he is going to I don’t know.”
PAGE 4, Friday, October 8, 2021 FROM PAGE ONE - something he is “very concerned” about. Mr Ferguson spoke after the Prime Minister said on Wednesday that he had asked Atlantis to reconsider this policy amid concerns from both the private sector and labour movement that it violates the Health and Safety at Work Act’s section nine, which seemingly stipulates that all expenses associated with maintaining a healthy workplace be paid for by the employer. This, in essence, means such costs - including weekly COVID19 testing - should not be passed on to employees. However, Mr Davis said he was informed by Atlantis executives that the unvaccinated worker testing policy was effectively a compromise devised by the resort given that Brookfield has mandated that all its worldwide employees be inoculated to continue in their jobs. “She appreciates the concern we have about mandatory vaccination,” Mr Davis said of his meeting with Atlantis president, Audrey Oswell, “and she reached a compromise with her corporate office that at least if they were to ask persons who wanted to continue to work with Atlantis that they pay for their testing that might encourage them to get vaccinated The situation highlights how a multinational investor’s own worldwide corporate policies may clash with, and run afoul FROM PAGE ONE prevent arbitrary shifts in economic policy. The reduction in VAT will result in an estimated $160m [less in] annual revenue - or $800m over five years - at a time when the country’s resources are strained. The PLP policies have only signalled more and more spending but have been silent on how it is to be paid for. “The Government must account to the people, as is required by law, how they intend to justify the reduction in revenue. The PLP seems determined to pursue fiscally irresponsible policies to accomplish a reduction
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ATLANTIS OWNER URGED: OBEY BAHAMAS’ LAWS of, Bahamian law. The Prime Minister’s comments indicate the Government has elected not to take a harsh line with Atlantis/Brookfield, which alongside Baha Mar is The Bahamas’ largest private sector employer and is playing a key role in the postCOVID recovery. Mr Davis indicated that the Government is hoping its ‘free’ COVID testing plan, which has yet to be defined or rolled out, will help alleviate the Atlantis situation. However, no such testing is truly ‘free’ as it will simply mean that the financial burden is switched from those currently paying to the taxpayer. And the incident is also providing an early test of the Government’s memorandum of understanding (MoU) with the two umbrella union bodies, and its labour-friendly pledges. However, Mr Ferguson, one of the MoU’s key signatories, told this newspaper: “I can’t say what the Government should or shouldn’t do. “What I can say is that these multinational companies must be made to follow the laws of The Bahamas. The Bahamas’ laws must take precedence. Any multinational companies coming to The Bahamas must be guided and governed by the local laws. “Unless changed or amended, those laws must be applicable to
all employers, whether domestic or international. Whether you are trans-national or multinational, it doesn’t matter. The laws of the land must be the law that governs
PRIME Minister Philip “Brave” Davis. the contract between employer and employee,” he continued. “It’s important we have a working relationship, but you cannot cherry-pick. Either the laws apply and are recognised, or what you’ll be doing is setting a bad precedent for employers that they can disregard the law of the land. I’m very concerned about that.” While The Bahamas is heavily reliant on foreign direct investment (FDI) in its tourism
and other major industries, the TUC president said the rights of investors and their desire to maximise profits must be balanced with the constitutional rights of Bahamians. “Equally important is for them to have respect for, and be bound by, our laws,” Mr Ferguson added. “I do understand multinationals have policies, and some policies conflict with the laws of countries in which they do business. “But every contract I have reviewed, be it insurance or whatever contract, notwithstanding what is in the contract is governed by the laws of your country. The Health and Safety at Work Act’s section nine governs how you behave in a situation of this nature. You cannot arbitrarily introduce a policy that contravenes it.” Atlantis and other employers have also argued that they have little choice but to make unvaccinated staff pay for their weekly COVID tests as they have a responsibility to ensure a safe environment for guests, customers and staff, and simply cannot carry the financial burden any longer given the relatively strong vaccine hesitancy in The Bahamas. Making unvaccinated staff pay for their weekly tests is also being viewed as an incentive for them to become inoculated, but trade unionists are countering that
such a policy is illegal because the Health and Safety at Work Act’s section nine forbids Bahamian employers from imposing any financial “levy” on staff to ensure they comply with this law’s stipulations. Labour representatives have also argued that making unvaccinated staff pay for their weekly COVID tests would amount to an illegal arbitrary, unilateral variation of employee working terms and conditions, while also potentially pushing minimum wage workers below the legal take-home limit if they have to use their salaries to cover testing costs. Mr Ferguson reiterated: “We have a constitution, we are sovereign. Yes, we are a tourism-based economy and we want to work with investors to see that their investment is secured and they get maximum returns, but equally important must be the requirement to protect the citizens of our country. “The first obligation of a country is to protect its citizens. We have laws in this country we have to follow. “Bahamians are required to follow the law of the land. We can’t allow companies to come in and say they have a worldwide policy. Major organisations must abide by the rule of law, and evading it is a serious matter.”
$160M REVENUE CUT FROM VAT RATE SLASH in VAT, a further reduction in business-related taxes to be provided as incentives, and proposed social and infrastructure spending.” Mr Thompson, while still minister of finance, said earlier this year that the then-Opposition’s VAT cut plan would cost the Public Treasury some $100m per year. He did not explain how it had increased to $160m per year, but yesterday pointed to the omission of any strategy to cut the $440m annual taxpayer subsidies that keep struggling state-owned enterprises
(SOEs) afloat. “The Speech [from the Throne] fails to address the seriousness of our fiscal situation. It does not address the ongoing necessity for tax reform, and for reform of the SOEs that are critical to fiscal consolidation over time,” the former minister added. “The PLP has again promised to reduce VAT without providing any clear plans on how the reduced revenue will be replaced. It failed to provide a timeline on when this will be done. The PLP has promised to increase old age pension benefits but has not said how the same will be funded. Do they intend to increase NIB rates? Why didn’t they say so? “The PLP has promised to introduce a catastrophic health insurance plan. Do they intend to have all Bahamians pay a monthly insurance premium to cover this insurance? Why didn’t they say so? The Speech also provides for exponential increases in expenditure without a clear plan, or even mention, on how they are going to pay for such a dramatic increase in
expenditure.” Mr Thompson said the new administration appeared to be trying to pull-off “an impossible calculus” where spending was increased despite a reduction in revenues - an action that, in theory, will maintain huge fiscal deficits and corresponding national debt increases despite the latter already being greater than the size of the economy. However, Prime Minister Davis signalled he is fully aware of the fiscal realities during Parliament’s opening, when he said “the day of reckoning is here” and that multiple problems which have been “postponed” for too long must be tackled now. The Government’s Blueprint for Change campaign manifesto hinted that it would seek to make up for tax revenues foregone in a VAT cut via better enforcement/compliance, and collection of existing taxes, as well as real property tax revenues from high-end, luxury properties. Still, Mr Thompson argued: “The Speech [from the Throne] says little on the difficult but necessary
decisions about tax enforcement or tax reform, which are still required to make our tax system more equitable. “There was little discussion on the critical reforms necessary to our SOEs, which continue to be a drain on the public purse. How will they enhance revenue, and what programmes will be cut to sustain the additional spending proposed? There was also no commitment not to raise taxes, which is telling given the plans for significant increases in spending....... “Details are critical. This is especially true on the matters of tax reform and fiscal policy, where the Government must explain how it intends to both cut taxes sharply and introduce major new spending initiatives. Either they are not telling Bahamians the whole story - that we will have to pay more taxes and fees to cover their promises - or they do not intend to keep the promises they have made.” The Davis administration, via the Speech from the Throne, pledged to
“enhance social assistance” and continue alleviating the devastating impact from Hurricane Dorian and COVID-19, although it was again light on details and how this extra spending will be financed. In particular, its promise to increase senior citizen pensions and benefits for persons with disabilities will seemingly impose an extra burden on the National Insurance Board (NIB) just as it is trying to replace the $100m-plus in liquidity drained from it via COVID19 benefits payouts. And actuaries have consistently warned that NIB’s $1.6bn reserve fund will be exhausted come 2031 unless contribution rates are increased, benefits cut or a combination of the two. Mr Thompson also accused the new administration of rebranding several initiatives that the former Minnis administration had initiated, with the 52-week jobs programme now known as a ‘First Job’ programme. And the retooled Bahamas Investment Authority (BIA) is to be called Bahamas Invest instead of Invest Bahamas.
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Friday, October 8, 2021, PAGE 5
FROM PAGE ONE infrastructure and tourism, Mr Cargill said it was “not on the backburner” and officials will “determine the exact course very soon”. While the pre-qualification phase for the Grand Bahama International and Family Island airport PPPs is “ready to go” as soon as the review is completed, and go-ahead given, the aviation chief told this newspaper he was unable to comment yet on how exactly that will happen. “We’re having a meeting with the minister to determine the strategic direction,” Mr Cargill said. “It’s a process. I imagine the Government wants to review the process and see if they agree with the strategy. We are in discussions and will have an answer soon. “As far as I know, the PPPs are going ahead. Is it going to be exactly as planned? I can’t say. That’s a government policy decision and is outside my scope.” Mr Cargill said all feedback received to-date from Mr Cooper, who is minister for tourism, investments and aviation, and his team had been positive. The request for qualification process, where bidders on the airport upgrades are assessed and qualified for the actual bidding
FROM PAGE ONE in 2020 and 2021, with total outstanding credit in June 2021 flat relative to December 2020, and 4 percent below that of December 2019. “Private sector nonperforming loans (NPLs) were 9.5 percent of private sector loans as of June 2021. According to the Central Bank, the loan deferral programme [it] authorised in 2020, which allowed deferred loans to not be classified as non-performing, is now almost completely concluded.” Moody’s added that when it came to domestic demand, “private consumption and investment have been very volatile, weighed down by high rates of unemployment (exceeding 10 percent in 2019), households’ debt overhang and tighter lending policies. “The contraction in credit coincided with a rise and then drop in the non-performing loan ratio, which peaked at 16 percent at year-end 2014,” the rating agency continued. “Banks have reacted to the rise in non-performing loans. In June 2021, the ratio of arrears to provisions was 75 percent, while the ratio of non-performing loans to provisions was 112 percent.
$400M AIRPORT PPPS UNDER GOV’T ‘REVIEW’ or Request for Proposal (RFP) phase, was supposed to have been launched in mid-September. While the general election and its outcome have now intervened, Mr Cargill said the request for qualification is “ready to go” and will be released once the formal meeting with the deputy prime minister results in a positive conclusion. “It’s certainly understood that the Government has to assess the programme and ensure that as designed it meets their strategy. Until that is done we fully understand and support the Government’s direction,” he added. “We fully understand the Government’s direction to review and confirm the programme is aligned with their strategy. “It’s not as if it’s on the backburner, so we expect to be able to determine the exact course very soon.” Mr Cargill’s comments came as several sources suggested the Family Island airport PPPs could be adjusted based on the Speech from the Throne. In particular, they noted the absence of any mention of Long Island, even though it was previously thought to be the next
ALGERNON CARGILL location where works could start after Exuma. “The Government will expedite the development of the airports in Exuma, Grand Bahama and North Eleuthera, and will advance the development of all major airports across The Bahamas through Public-Private Partnerships (PPPs),” the Speech from the Throne said, thus leaving the door open to Abaco, Long Island and others.
CREDIT ACCESS SLUMPS TO UNDER 50% OF GDP “The banking sector remains well capitalised, with the capital adequacy ratio reaching 31 percent at year-end 2020, well in excess of the regulatory requirement of 17 percent. Liquid assets made up 32 percent of total assets last year. “Banks are depositfunded and have limited exposure to wholesale and inter-bank funding. Foreigncurrency lending by onshore banks is restricted to domestic borrowers who generate foreign-currency revenue, such as hotels.” As for the Government’s fiscal position, Moody’s added that the significantly elevated borrowing requirements sparked by the twin devastating impact from Hurricane Dorian and COVID-19 had seen the debt taken on more than double as a percentage of The Bahamas’ GDP or economic output. “The coronavirus outbreak has led to a substantial increase in gross borrowing needs from historical levels of about 7 percent of
Under the current structure, RFP documents will only be issued to groups and bidders that satisfy the pre-qualification process. Besides Grand Bahama, the six Family Island airports included in their own separate package are Exuma, North Eleuthera, Abaco, Long Island, San Salvador and Great Harbour Cay. Construction work on Exuma’s $65m transformation has already begun, while the $15m worth of upgrades to Great Harbour Cay are almost finished. A recommendation had been supplied to the Minnis Cabinet as to the winning contractor for the $15m Deadman’s Cay revamp. And the Government was said to have been “in the negotiating stage” with RF Bank & Trust over the $140m financing line it will provide for the airport upgrades. Jim Lew, managing director of LeighFisher, the aviation consultants hired by the Government to develop the PPP process for outsourcing the airports to private developers/managers, previously said the financing for the six Family Island airports will be separate from that for Grand Bahama International Airport. With the North Eleuthera and Exuma airport revamps estimated to
GDP per year,” Moody’s said. “In fiscal year 20192020, the fiscal year ending in June 2020, gross borrowing requirements reached 13 percent GDP and peaked at 19 percent in fiscal year 2020-221. “We expect them to average 12 percent of GDP over fiscal year 2021-2022 and fiscal year 2022-2023. The rise in borrowing requirements has led the Government to rely more heavily on the external capital markets, with the
government issuing a 2038 bond for a total of $825m over two operations in October and December 2020. “This was the Government’s first external debt issuance since 2017...... External bonded debt now accounts for 26 percent of total debt, compared to 14 percent in at end-2016. Market borrowing costs increased sharply in March 2020 as the coronavirus spread, but have since settled, albeit at higher levels than pre-pandemic,” it continued. “The recent issuance and the decline in yields suggests that the Government retains market access, although at a higher cost than historically. External financing from multilaterals has also
PUBLIC NOTICE
INTENT TO CHANGE NAME BY DEED POLL The Public is hereby advised that I, YVONNE ANITA SEALEY-HARRIS of #12 Summerdale Road, Chichester, United Kingdom intend to change my name to YVONNE ANITA HARRIS. If there are any objections to this change of name by Deed Poll, you may write such objections to the Chief Passport Officer, P.O.Box N-742, Nassau, Bahamas no later than thirty (30) days after the date of publication of this notice.
involve $65m each, the $10m price tags for San Salvador and Abaco, as well as $18m for Long Island and $15m for Great Harbour Cay, take total projected capital investment costs to $183m - well above the $140m-$150m to be raised by RF Bank & Trust. As for Grand Bahama, Mr Lew said “significant investment” is required by the successful bidder on both “the ground side and the air side” to not only rebuild Grand Bahama International Airport but make it sufficiently resilient to withstand future natural disasters. He added that “around $200m” is needed to “replace the facilities and ground infrastructure to capture the growth sorely needed at this site”. This was reiterated in the accompanying project information memorandum, which added: “The airport suffered extensive damage during Hurricane Dorian in 2019. “An FBO (fixed base operation) building was repurposed as a temporary terminal. “A comprehensive site-wide redevelopment solution (around $200m) is required to replace damaged facilities, unlock commercial potential, and operate the airport as a profit centre.”
increased: The government plans to tap multilaterals for around $240m in funding, substantially higher than the multilateral financing received in pre-pandemic years.” As for the Government’s access to domestic capital markets, Moody’s said: “Domestic financial markets have, in the past, provided significant financing. Domestic sources accounted for 69 percent of gross financing in the five years prior to the
coronavirus pandemic. In addition, banks currently have substantial liquid assets, suggesting ample lending capacity. “The Government, however, has only budgeted domestic sources to provide for around 50 percent of its gross borrowing requirements, and 25 percent of net financing needs, in fiscal year 2021-2022. It is unclear how much capacity the domestic financial system has to finance the Government.”
NOTICE NOTICE is hereby given that WATSON RASHIO NORELIEN of Murphy Town, Abaco, 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 1st day of October, 2021 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
MARKET REPORT www.bisxbahamas.com
THURSDAY, 7 OCTOBER 2021
BISX ALL SHARE INDEX: BISX LISTED & TRADED SECURITIES 52WK HI 6.70 33.95 1.76 2.90 1.69 6.00 8.50 3.60 6.92 3.76 6.26 12.00 2.71 9.00 11.06 10.08 14.50 4.10 9.33 16.50
52WK LOW 3.80 22.65 1.46 1.62 1.30 5.00 6.00 2.80 4.25 2.47 5.00 9.75 2.10 5.60 9.50 8.35 13.00 3.42 8.00 15.20
1.00
1.00 1000.00 1000.00 1000.00 1000.00
1.00 10.00 1.00
1.00 10.00 1.00
52WK LOW 100.00 100.00
%CHANGE
YTD
YTD%
2096.30
1.04
0.05
3.84
0.18
SYMBOL AML APD BBL BFH BOB BPF BWL CAB CBB CBL CHL CIB CWCB DHS EMAB FAM FBB FCL FIN JSJ
Bahamas First Holdings Preference Cable Bahamas Series 6 Cable Bahamas Series 8 Cable Bahamas Series 9 Cable Bahamas Series 10 Colina Holdings Class A Fidelity Bank Bahamas Class A Focol Class B
BFHP CAB6 CAB8 CAB9 CAB10 CHLA FBBA FCLB
CORPORATE DEBT - (percentage pricing) 52WK HI 100.00 100.00
CHANGE
SECURITY AML Foods Limited APD Limited Benchmark Bahamas First Holdings Limited Bank of Bahamas Bahamas Property Fund Bahamas Waste Cable Bahamas Commonwealth Brewery Commonwealth Bank Colina Holdings CIBC FirstCaribbean Bank Consolidated Water BDRs Doctor's Hospital Emera Incorporated Famguard RF Bank & Trust (Bahamas) Limited Focol Finco J. S. Johnson
PREFERENCE SHARES 1000.00 1000.00 1000.00 1000.00
CLOSE
SECURITY Fidelity Bank (Note 22 Series B+) Bahamas First Holdings Limited
SYMBOL FBB22 BFHB
BAHAMAS GOVERNMENT STOCK - (percentage pricing) 115.92 100.00 100.00 100.00 100.00 100.00 100.00 102.00 100.00 100.00 100.52 91.66 100.47 100.37 100.47
104.79 100.00 100.00 100.00 100.00 100.00 100.00 100.00 94.12 89.62 100.00 84.59 100.09 99.98 100.09
MUTUAL FUNDS 52WK HI 2.46 4.52 2.18 202.18 190.86 1.71 1.81 1.79 1.07 8.92 10.81 7.44 16.64 12.76 10.57 10.00 10.43 14.89
52WK LOW 2.11 3.30 1.68 164.74 116.70 1.68 1.73 1.75 1.03 6.41 7.62 5.66 8.65 10.54 9.57 9.88 8.45 11.20
Bahamas Note 6.95 (2029) BGS: 2014-12-7Y BGS: 2015-1-7Y BGS: 2014-12-30Y BGS: 2015-1-30Y BGS: 2015-6-7Y BGS: 2015-6-30Y BGS: 2015-10-7Y BGRS FX BGR118037 BGRS FX BGR131249 BGRS FL BGRS88037 BGRS FX BGRS94031 BGRS FL BGRS97033 BGRS FL BGRS99032 BGRS FL BGRS97033
BAH29 BG0107 BG0207 BG0130 BG0230 BG0307 BG0330 BG0407 BSBGR1180375 BSBGR1312499 BSBGRS880378 BSBGRS940313 BSBGRS970336 BSBGRS990326 BSBGRS970336
LAST CLOSE 6.48 39.95 1.70 2.39 1.54 6.00 8.25 3.15 6.92 2.75 5.95 11.26 2.31 9.00 11.32 10.00 14.50 4.00 9.33 15.50 1.00 1000.00 1000.00 1000.00 1000.00 1.00 10.00 1.00 LAST SALE 100.00 100.00 107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 94.12 100.00 100.03 91.66 100.09 100.50 100.22
CLOSE 6.48 39.95 1.70 2.39 1.69 6.00 8.25 3.15 6.92 2.75 5.95 11.26 2.29 9.00 11.34 10.00 14.50 4.00 9.33 15.50 1.00 1000.00 1000.00 1000.00 1000.00 1.00 10.00 1.00
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
VOLUME
2,000
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
CLOSE 100.00 100.00
CHANGE 0.00 0.00
107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 94.12 100.00 100.03 91.66 100.09 100.50 100.22
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
FUND CFAL Bond Fund CFAL Balanced Fund CFAL Money Market Fund CFAL Global Bond Fund CFAL Global Equity Fund Leno Financial Conservative Fund Leno Financial Aggressive Fund Leno Financial Balanced Fund Leno Financial Global Bond Fund RF Bahamas Opportunities Fund - Secured Balanced Fund RF Bahamas Opportunities Fund - Targeted Equity Fund RF Bahamas Opportunities Fund - Prime Income Fund RF Bahamas International Investment Fund Limited - Equities Sub Fund RF Bahamas International Investment Fund Limited - High Yield Income Fund RF Bahamas International Investment Fund Limited - Alternative Strategies Fund Colonial Bahamas Fund Class D Colonial Bahamas Fund Class E Colonial Bahamas Fund Class F
MARKET TERMS
CHANGE 0.00 0.00 0.00 0.00 0.15 0.00 0.00 0.00 0.00 0.00 0.00 0.00 (0.02) 0.00 0.02 0.00 0.00 0.00 0.00 0.00
(242) 323‐2330 (242) 323‐2320 EPS$ 0.239 0.932 0.000 0.110 0.070 1.760 0.369 -0.438 0.140 0.184 0.449 0.722 0.102 0.467 0.646 0.728 0.816 0.203 0.939 0.631 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
VOLUME
35 62
NAV 2.46 4.52 2.18 202.18 190.86 1.71 1.78 1.79 1.04 8.92 10.81 7.44 16.64 12.73 10.57 N/A 10.43 14.89
DIV$ 0.170 1.260 0.020 0.030 0.000 0.000 0.260 0.000 0.000 0.120 0.220 0.720 0.434 0.060 0.328 0.240 0.540 0.120 0.200 0.610 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
INTEREST Prime + 1.75% 6.25% 6.95% 4.50% 4.50% 6.25% 6.25% 4.50% 6.25% 4.25% 5.22% 5.60% 4.42% 4.35% 4.31% 4.30% 4.31% YTD% 12 MTH% 2.92% 4.51% 1.94% 2.13% 1.79% 2.78% 0.14% 5.02% 3.25% 31.13% 1.83% 1.51% -0.64% -0.76% 1.45% 1.33% -0.97% -1.76% 5.11% 6.98% 7.77% 9.88% 2.28% 3.71% 19.64% 29.95% -0.81% -0.62% 5.19% 2.28% N/A N/A 3.00% 25.60% 7.90% 48.70%
P/E 27.1 42.9 N/M N/M N/M N/M 22.4 -7.2 49.4 14.9 13.3 15.6 22.5 19.3 17.6 13.7 17.8 19.7 9.9 24.6 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
YIELD 2.62% 3.15% 1.18% 1.26% 0.00% 0.00% 3.15% 0.00% 0.00% 4.36% 3.70% 6.39% 18.95% 0.67% 2.89% 2.40% 3.72% 3.00% 2.14% 3.94% 0.00% 0.00% 0.00% 0.00% 0.00% 6.25% 7.00% 6.50%
MATURITY 19-Oct-2022 30-Sep-2025 20-Nov-2029 15-Dec-2021 30-Jul-2022 15-Dec-2044 30-Jul-2045 26-Jun-2022 26-Jun-2045 15-Oct-2022 13-Oct-2037 15-Jul-2049 26-Jul-2037 16-Jul-2031 17-Apr-2033 23-Sep-2032 17-Apr-2033
NAV Date 31-Aug-2021 31-Aug-2021 27-Aug-2021 31-Mar-2021 31-Mar-2021 31-Aug-2021 31-Aug-2021 31-Aug-2021 31-Aug-2021 31-Aug-2021 31-Aug-2021 31-Aug-2021 31-Aug-2021 31-Aug-2021 31-Aug-2021 31-Mar-2021 31-Mar-2021 31-Mar-2021
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 | CORALISLE 242-502-7525 | LENO 242-396-3225 | BENCHMARK 242-326-7333
THE TRIBUNE
Friday, October 8, 2021, PAGE 7
PRIVY COUNCIL HEARING COULD HALT GOV’T/DEVELOPER ‘SCUTTLING’ FROM PAGE ONE
environmentalists and other activists to make such payments into escrow is also a means by which they can secure compensation for costs and time-related delays that are incurred if they have to cease construction activity. Mr Smith, though, said “security for costs” were now being demanded by the Government and developers in almost every Judicial Review challenge. The Bimini Blue Coalition, in its opposition to Resorts World’s dredging, had initially been ordered to pay $850,000 as “security for
costs” although this was later cut to $650,000 on appeal. Describing this as “an impossible bar”, the Callenders & Co attorney and partner noted that Waterkeepers Bahamas and its partners were also required to come up with $200,000 recently to continue with their fight against the former Bahamas Petroleum Company’s (BPC) oil drilling in local waters. Mr Smith said this had resulted in public interest litigants being denied access to the judicial system and having “their day in court” - something that he argued was guaranteed by
the constitution. “I hope that this is a new day for NGOs, and the respect that ought to be accorded to them in having their right to be heard in a trial,” he told Tribune Business. “RDA is very pleased to have been given the opportunity by the Privy Council to address what is an unconstitutional block to their right of access to trial, and to review and challenge what appears to be an over-zealous protection of developers and the Government by the courts in ordering security for costs. “The Little Harbour case was particularly egregious because the developer was
not sued by RDA. They were allowed to join the action on the eve of the trial, and the Government and the developers in a pincer move together applied for security for costs and derailed the trial days before it was supposed to happen.” Mr Smith conceded that security for costs demands were allowed, but they should “not be relied upon just as a tool to prevent the hearing of the trial”. And he added that RDA’s complaint, the lack of public consultation on the Abaco Club’s project, had been addressed by legal reforms ushered in by the Environmental Planning and
Protection Act. RDA is opposing The Abaco Club’s construction of a 44-slip marina, along with a supplies shop, private restaurant, 6,000 square foot covered car park, generator, desalination plant and waste treatment facility. The development will measure 320 feet across the outside piers, 210 feet between the two parallel main piers, and will extend 270 feet into Little Harbour, with the intent for it to accommodate boats up to 60 feet. However, RDA fears that if the project goes ahead it will completely change the environment and
THE WEATHER REPORT
5-Day Forecast
TODAY
ORLANDO
High: 88° F/31° C Low: 74° F/23° C
TAMPA
SATURDAY
SUNDAY
MONDAY
TUESDAY
Clouds and breaks of sun
Becoming cloudy
Cloudy with a thun‑ derstorm
A passing shower or two
Mostly cloudy with a heavy t‑storm
Mostly cloudy, a shower and t‑storm
High: 88°
Low: 76°
High: 84° Low: 75°
High: 85° Low: 74°
High: 87° Low: 75°
High: 86° Low: 74°
AccuWeather RealFeel
AccuWeather RealFeel
AccuWeather RealFeel
AccuWeather RealFeel
AccuWeather RealFeel
AccuWeather RealFeel
95° F
85° F
94°-81° F
93°-80° F
94°-80° F
95°-79° F
The exclusive AccuWeather RealFeel Temperature® is an index that combines the effects of temperature, wind, humidity, sunshine intensity, cloudiness, precipitation, pressure and elevation on the human body—everything that affects how warm or cold a person feels. Temperatures reflect the high and the low for the day.
N
almanac
E
W
ABACO
S
N
High: 85° F/29° C Low: 78° F/26° C
4‑8 knots
S
High: 88° F/31° C Low: 74° F/23° C
4‑8 knots
FT. LAUDERDALE
FREEPORT
High: 88° F/31° C Low: 77° F/25° C
N E S
E
W
WEST PALM BEACH
W
High: 88° F/31° C Low: 74° F/23° C
MIAMI
High: 89° F/32° C Low: 77° F/25° C
4‑8 knots
Statistics are for Nassau through 2 p.m. yesterday Temperature High ................................................... 88° F/31° C Low .................................................... 74° F/23° C Normal high ....................................... 86° F/30° C Normal low ........................................ 74° F/23° C Last year’s high ................................. 90° F/32° C Last year’s low ................................... 83° F/28° C Precipitation As of 2 p.m. yesterday ................................. 0.12” Year to date ............................................... 25.50” Normal year to date ................................... 30.39”
ELEUTHERA
NASSAU
High: 88° F/31° C Low: 76° F/24° C
Forecasts and graphics provided by AccuWeather, Inc. ©2021
High: 85° F/29° C Low: 79° F/26° C
N
KEY WEST
High: 87° F/31° C Low: 80° F/27° C
High: 86° F/30° C Low: 79° F/26° C
N
S
E
W S
7‑14 knots Shown is today’s weather. Temperatures are today’s highs and tonight’s lows.
The higher the AccuWeather UV IndexTM number, the greater the need for eye and skin protection.
tiDes For nassau High
Ht.(ft.)
Low
Ht.(ft.)
Today
9:45 a.m. 10:04 p.m.
3.8 3.3
3:28 a.m. ‑0.1 4:09 p.m. 0.0
Saturday
10:34 a.m. 10:55 p.m.
3.8 3.1
4:14 a.m. ‑0.1 5:01 p.m. 0.2
Sunday
11:28 a.m. 11:49 p.m.
3.7 2.9
5:04 a.m. 5:58 p.m.
0.0 0.3
Monday
12:25 p.m. ‑‑‑‑‑
3.6 ‑‑‑‑‑
5:58 a.m. 6:59 p.m.
0.2 0.6
Tuesday
12:50 a.m. 1:29 p.m.
2.7 3.4
6:58 a.m. 8:05 p.m.
0.4 0.7
Wednesday 1:58 a.m. 2:37 p.m.
2.6 3.3
8:06 a.m. 9:14 p.m.
0.6 0.8
Thursday
2.6 3.2
9:18 a.m. 0.8 10:20 p.m. 0.8
3:10 a.m. 3:45 p.m.
sun anD moon Sunrise Sunset
7:05 a.m. 6:49 p.m.
Moonrise Moonset
9:16 a.m. 8:40 p.m.
First
Full
Last
New
Oct. 12
Oct. 20
Oct. 28
Nov. 4
ANDROS
SAN SALVADOR
GREAT EXUMA
High: 86° F/30° C Low: 79° F/26° C
High: 86° F/30° C Low: 80° F/27° C
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High: 87° F/31° C Low: 78° F/26° C
S
LONG ISLAND High: 87° F/31° C Low: 79° F/26° C
H
E
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tracking map
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uV inDex toDay
CAT ISLAND
E
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6‑12 knots
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| Go to AccuWeather.com
TONIGHT
High: 88° F/31° C Low: 76° F/24° C
character of Little Harbour, a 50-home community that runs entirely off solar power. Besides its environmental concerns, RDA is claiming that the relevant government agencies did not hold proper consultation with the Little Harbour community before issuing the grants, permits and approvals required by the Abaco Club for the project’s construction. The group is also alleging that the Government agencies have withheld information, thereby depriving it of its statutory rights and/or legitimate expectations to contribute to any consultation process.
7‑14 knots
MAYAGUANA High: 86° F/30° C Low: 80° F/27° C
Shown is today’s weather. Temperatures are today’s highs and tonight’s lows.
CROOKED ISLAND / ACKLINS RAGGED ISLAND High: 86° F/30° C Low: 80° F/27° C
High: 86° F/30° C Low: 80° F/27° C
GREAT INAGUA High: 88° F/31° C Low: 80° F/27° C
N
E
W
E
W
N
S
S
7‑14 knots
7‑14 knots
marine Forecast ABACO ANDROS CAT ISLAND CROOKED ISLAND ELEUTHERA FREEPORT GREAT EXUMA GREAT INAGUA LONG ISLAND MAYAGUANA NASSAU RAGGED ISLAND SAN SALVADOR
Today: Saturday: Today: Saturday: Today: Saturday: Today: Saturday: Today: Saturday: Today: Saturday: Today: Saturday: Today: Saturday: Today: Saturday: Today: Saturday: Today: Saturday: Today: Saturday: Today: Saturday:
WINDS E at 4‑8 Knots NNE at 4‑8 Knots NE at 6‑12 Knots ENE at 4‑8 Knots ENE at 7‑14 Knots E at 4‑8 Knots ENE at 7‑14 Knots ESE at 6‑12 Knots ENE at 6‑12 Knots E at 4‑8 Knots E at 4‑8 Knots ENE at 4‑8 Knots NE at 7‑14 Knots E at 4‑8 Knots NE at 7‑14 Knots E at 6‑12 Knots ENE at 7‑14 Knots E at 4‑8 Knots ENE at 7‑14 Knots ESE at 6‑12 Knots ENE at 6‑12 Knots ENE at 4‑8 Knots NE at 7‑14 Knots E at 4‑8 Knots NE at 7‑14 Knots E at 4‑8 Knots
WAVES 2‑4 Feet 2‑4 Feet 0‑1 Feet 0‑1 Feet 3‑5 Feet 2‑4 Feet 2‑4 Feet 2‑4 Feet 3‑5 Feet 2‑4 Feet 1‑2 Feet 1‑2 Feet 1‑2 Feet 0‑1 Feet 2‑4 Feet 1‑3 Feet 2‑4 Feet 1‑3 Feet 3‑6 Feet 3‑5 Feet 1‑2 Feet 0‑1 Feet 2‑4 Feet 1‑3 Feet 1‑2 Feet 1‑2 Feet
VISIBILITY 10 Miles 6 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 6 Miles 10 Miles 10 Miles 10 Miles 10 Miles 7 Miles 10 Miles 10 Miles 10 Miles 7 Miles 10 Miles 10 Miles 10 Miles 10 Miles 6 Miles 10 Miles 10 Miles
WATER TEMPS. 85° F 85° F 85° F 85° F 84° F 83° F 85° F 85° F 85° F 85° F 85° F 86° F 85° F 85° F 85° F 85° F 85° F 85° F 85° F 85° F 87° F 87° F 85° F 85° F 85° F 85° F
PAGE 8, Friday, October 8, 2021
THE TRIBUNE
DEFAULT CRISIS DODGED — FOR NOW — WITH DEM-GOP DEBT ACCORD By KEVIN FREKING, ALAN FRAM and ALEXANDRA JAFFE Associated Press
WASHINGTON (AP) — Senate leaders announced an agreement Thursday to extend the government’s borrowing authority into December, temporarily averting an unprecedented federal default that experts say would devastate the economy. “Our hope is to get this done as soon as today,” Senate Majority Leader Chuck Schumer declared. Republican leader Mitch McConnell, whose party has been blocking the debt limit extension, said, “The Senate is moving forward.” The first crucial vote on the measure was cleared Thursday night as Republican leaders put up the votes needed to advance it. Passage through the Senate was expected soon after. In their agreement, the Republican and Democratic leaders edged back from a perilous standoff over lifting the nation’s borrowing cap, with Democratic senators accepting an offer from McConnell. McConnell made the GOP offer a day earlier, just before his Republicans were prepared to block longer-term legislation to
SENATE Majority Leader Chuck Schumer of N.Y., speaks with reporters as he walks to his office on Capitol Hill, Thursday, in Washington. (AP Photo/Alex Brandon) suspend the debt limit and as President Joe Biden and business leaders ramped up their concerns that a default would disrupt government payments to millions of people and throw the nation into recession. The White House signalled the president’s support, with principal deputy press secretary Karine Jean-Pierre issuing a statement that the president would sign a bill
to raise the debt limit when it passed Congress. Earlier, she called the short-term deal a “positive step,” even as she assailed Republicans for blocking Democratic efforts. “It gives us some breathing room from the catastrophic default we were approaching because of Sen. McConnell’s decision to play politics with our economy,” she told reporters. Wall Street rallied modestly on the news. The agreement sets the stage for a sequel of sorts in December, when Congress will again face pressing deadlines to fund the government and raise the debt limit before heading home for the holidays. The agreement will allow for raising the debt ceiling by about $480 billion, according to a Senate aide familiar with the negotiations who spoke on condition of anonymity to discuss them. That is the level that the Treasury Department has said is needed to get to Dec. 3. “Basically, I’m glad that Mitch McConnell finally saw the light,” Bernie Sanders, the independent senator from Vermont, said late Wednesday. McConnell portrayed it differently.
“The pathway our Democratic colleagues have accepted will spare the American people any near-term crisis, while definitively resolving the majority’s excuse that they lacked time to address the debt limit through (reconciliation),” McConnell said Thursday. “Now there will be no question: They’ll have plenty of time.” Congress has just days to act before the Oct. 18 deadline when the Treasury Department has warned it would quickly run short of funds to handle the nation’s already accrued debt load. McConnell and Senate Republicans have insisted that Democrats go it alone to raise the debt ceiling. Further, McConnell has insisted that Democrats use the same cumbersome legislative process called reconciliation that they used to pass a $1.9 trillion COVID-19 relief bill and have been employing to try to pass Biden’s $3.5 trillion measure to boost safety net, health and environmental programs. McConnell said in his offer Wednesday that Republicans would still insist that Democrats use the reconciliation process for a long-term debt limit extension. However, he said Republicans are willing to “assist in expediting” that process, and in the meantime Democrats may use the normal legislative process to pass a short-term debt limit extension with a
fixed dollar amount to cover current spending levels into December. Sen. Lisa Murkowski, R-Alaska, was among those voting to advance the bill. “I’m not willing to let this train go off the cliff,” she said. On Wednesday, Biden enlisted top business leaders to push for immediately suspending the debt limit, saying the approaching deadline created the risk of a historic default that would be like a “meteor” that could crush the economy and financial markets. At a White House event, the president shamed Republican senators for threatening to filibuster any suspension of the $28.4 trillion cap on the government’s borrowing authority. He leaned into the credibility of corporate America — a group that has traditionally been aligned with the GOP on tax and regulatory issues — to drive home his point as the heads of Citi, JP Morgan Chase and Nasdaq gathered in person and virtually to say the debt limit must be lifted. “It’s not right and it’s dangerous,” Biden said of the resistance by Senate Republicans. His moves came amid talk that Democrats might try to change Senate filibuster rules to get around Republicans. But Sen. Joe Manchin, D-W.Va., reiterated his opposition to such a change Wednesday, likely
taking it off the table for Democrats. The business leaders echoed Biden’s points about needing to end the stalemate as soon as possible, though they sidestepped the partisan tensions in doing so. Each portrayed the debt limit as an avoidable crisis. “We just can’t wait to the last minute to resolve this,” said Jane Fraser, CEO of the bank Citi. “We are, simply put, playing with fire right now, and our country has suffered so greatly over the last few years. The human and the economic cost of the pandemic has been wrenching, and we don’t need a catastrophe of our own making.” Ahead of the White House meeting, the administration warned that if the borrowing limit isn’t extended, it could set off an international financial crisis. “A default would send shock waves through global financial markets and would likely cause credit markets worldwide to freeze up and stock markets to plunge,” the White House Council of Economic Advisers said in a new report. “Employers around the world would likely have to begin laying off workers.” Once a routine matter, raising the debt limit has become politically treacherous over the past decade or more, used by Republicans, in particular, to rail against government spending and the rising debt load.
IMF CHIEF FACING DATA-RIGGING ALLEGATIONS DEFENDS ACTIONS
By MARTIN CRUTSINGER AP Economics Writer
WASHINGTON (AP) — The head of the International Monetary Fund said Thursday that a report alleging she had a role in datarigging at the World Bank when she was a top official there was not an accurate representation of events. The statement came a day after IMF Managing Director Kristalina Georgieva appeared before the agency’s executive board, which is investigating allegations that in 2018 World Bank employees were pressured to alter data affecting its business-climate rankings of China and other nations. The bank’s “Doing Business” report ranked countries after evaluating its tax burdens, bureaucratic obstacles, regulatory systems and other business conditions. High rankings in the report were coveted by governments seeking to attract investment. “I am pleased that I finally had the opportunity to explain to the IMF board my role in the Doing Business report and how I respected the integrity of the report,” Georgieva said in a statement released Thursday. In addition to the statement, Georgieva’s lawyers released the 11-page statement she delivered to the board on Wednesday in a meeting that lasted over five hours. The board is scheduled to meet again on the matter Friday. Georgieva has denied any wrongdoing in the matter amid calls that she should resign from her position at the IMF. She served as chief executive officer of the World Bank from January 2017 to September
2019, before taking the top job at the 190nation IMF, succeeding Christine Lagarde, who is now head of the European Central Bank. The allegations of data-rigging come from a review conducted by the WillimerHale law firm that alleged Georgieva pressured the bank’s economists to improve China’s ranking at a time when she and other bank officials were attempting to persuade China to support a boost in the World Bank’s funding resources. The law firm’s report prompted the World Bank to discontinue issuing the annual Doing Business report. It also fed into complaints that China’s the world’s second largest economy, has too much influence over global financial institutions. As the world’s largest economy, the United States is the largest shareholder at the IMF and World Bank, which are both based in Washington. Asked if the Biden administration had taken a stand on whether Georgieva should step down from her IMF job, Alexandra LaManna, a Treasury spokesperson, said, “There is a review currently underway with the IMF Board and Treasury has pushed for a thorough and fair accounting of all the facts. Our primary responsibility is to uphold the integrity of international institutions.” In her statement to the IMF’s 24-member executive board, Georgieva said, “The WilmerHale Report does not accurately characterize my actions with respect to Doing Business 2018, nor does it accurately portray my character or the way that I have conducted myself over a long professional career.”