10132016 business

THURSDAY, OCTOBER 13, 2016

business@tribunemedia.net

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Sarkis submits last ditch Baha Mar bid

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net Sarkis Izmirlian yesterday made a last-ditch intervention to regain ownership of the $3.5 billion Baha Mar project, offering to acquire the property for a price “in excess” of what both its secured creditor and ultimate purchaser will pay.

Baha Mar’s original developer, unveiling an October 10 letter he sent to the China Export-Import Bank, has submitted another purchase offer that was branded as “superior economically” to all rivals, “and in the best interest of the Bahamas”.

The letter, which was copied to Prime Minister Perry Christie, also took a swipe at the ‘double standards’ with which Mr Izmirlian alleges he has been treated.

Couched in diplomatic language, the document said it was “very surprising” that the proposed Baha Mar purchaser had been discovered outside the formal sales process operated by the project’s receivers, the Deloitte & Touche accounting firm.

Mr Izmirlian, and his BMD Holdings vehicle, argued that they were informed “multiple” times that their offers would only be entertained if submitted through the receivers’ process, yet they - and the China Export-

baha mar development site

Offers to pay ‘in excess’ of bank’s SPV, buyer Slams ‘double standards’ treatment of his offers China likely to view 11th hour move as ‘publicity stunt’

Import Bank, as their employer - appeared to have performed a complete ‘u-turn’ on this condition.

Mr Izmirlian, in his letter to the China Export-Import Bank’s vicechairman, Liu Lange, said that the ultimate Baha Mar purchaser had been “found outside the receivers’ process”.

“This is very important and surprising,” he wrote. “As you must be aware, we previously were advised on multiple occasions by your receivers See pg b4

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Banks told: Show ‘flexibility’ over lending relaxation

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net The Chamber’s chief executive yesterday backed the Central Bank’s move to relax its lending guidelines so storm-ravaged businesses and homeowners could finance restoration, emphasising: “We need to have capital flowing.”

The regulator, in a statement, informed commercial banks that it was relaxing both borrower debt servicing ratios and equity contributions to better facilitate access to much-needed credit in Matthew’s aftermath.

The 15 per cent equity (downpayment) contribution that the Central Bank recommends all borrowers make, prior to receiving a loan, is being waived entirely for an undefined period.

And the maximum debt service ratio recommended by the Central Bank is being increased by at least 10 percentage points - from 4045 per cent to 55 per cent.

“In the aftermath of the See pg b4

Central Bank waives 15% borrower downpayment And increases debt service ratio advice to 55% Chamber chief: ‘We need capital flowing’ after storm

Edison Sumner

‘Support Bahamian’

Auto dealer supports storm fraud safeguard

Hurricane exposes BPL manager’s ‘inexperience’ in our hour of need

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

An auto dealer yesterday backed the Government’s safeguards for Hurricane Matthew automobile replacements, suggesting it would reduce the fraud and exploitation seen under previous ‘exigency Orders’.

Rick Lowe, Nassau Motor Company’s (NMC) director/operations manager, told Tribune Business that the absence of such controls previously had enabled persons to “replace an old piece of junk with a brand new vehicle”.

The new Matthew ‘exigency Order’, which will initially take effect for 180 days (six months) from October 7, 2016, says Customs Duty and Value-Added Tax (VAT) exemptions on autos imported to replace vehicles claimed by Hurricane Matthew will be based on ‘the market value of the vehicle destroyed on the date of the hurricane’.

“In the event the minimum value is less than $5,000 on the date of the

Tax breaks exploited prior in ‘junk for new car swap’ Fears ‘bureaucratic frustration’ for claimants Queries NEMA ability to verify all submitted claims hurricane, a value of $5,000 would be used. The destroyed vehicle must be turned over to the authority of the Customs Department in all instances,” the Government said.

Mr Lowe said these protocols were “the proper thing to do”, explaining that they would act as a safeguard against persons seeking to exploit Matthew’s devastation for personal gain and enrich themselves.

“Before, what was happening was that people who had an old piece of junk, See pg b4

Hurricane Matthew has exposed the “inexperience” of Bahamas Power & Light’s (BPL) management company in dealing with the aftermath of storms, a former Cabinet minister argued yesterday.

Phenton Neymour, who had ministerial responsibility for the then-Bahamas See pg b5

PowerSecure ‘buffers Govt from public outcry’ Ex-minister: Administration equally to blame Neymour: BEC resisted customer call centre

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

Consumers and businesses were yesterday urged by a senior Chamber executive “to support what is Bahamian” by shopping at home for the majority of hurricane relief and restoration supplies, so as to get the economy “back on the right footing”.

Edison Sumner, the Chamber’s chief executive, See pg b5

Chamber boss wants most relief shopping at home Will ‘spur economy back on right footing’ Negotiating further incentives for small business

PAGE 2 , Thursday, October 13, 2016

THE TRIBUNE

GB tourism comes ‘to a grinding halt’ The Minister of Tourism yesterday admitted that tourism on Grand Bahama had “come to a grinding halt” due to Hurricane Matthew, as his officials looked at ways to improve the product.

“We have to be honest about Grand Bahama because that’s the only way we can move forward,” Obie Wilchcombe said. “Tourism on the island has come to a grinding halt.

“Hotels, restaurants and tour operators have all been affected by Hurricane Matthew, but there is hope and Grand Bahamians are resilient. Everywhere you go on this island people are working. People are working on their homes; people are working at the hotels to fix those properties. Grand Bahama will rise again, better and stronger.”

Mr Wilchcombe added: “We are still assessing the full extent of the damage, and will know better later this week or early next week when Grand Bahama will be fully open for business.

“We have an incredible team here in Grand Bahama. The tourism team is already back to work and focusing on rebuilding the industry despite dealing with their own personal tragedies.”

The Ministry of Tour-

Island looking to ‘freshen product’ post-Matthew ism’s director for Grand Bahama, Betty Bethel, said there is a feeling of “optimism” among tourism stakeholders, who are hoping to open their resorts and businesses during the “winter season”.

“We are looking at the positives here. This is indeed an opportunity for Grand Bahama to freshen up its tourism product and to create some new product,” she said.

“The relaunch will reflect, I think, a different attitude, a different perspective in terms of tourism on Grand Bahama. We are now focusing on reinventing ourselves.

“After speaking with several of our partners they are very optimistic that with the restoration of power and water we actually can have a product within two months.”

Many of the resorts on the island have communicated that they expect to open either in November or December.

Based on initial damage assessments, Viva Wyndham Fortuna said it expects to open on November 14.

Minister of Tourism Obie Wilchcombe Castaways, which had roof damage resulting in 32 rooms being out of order, remains open. The hotel has water, wi-fi and limited electricity.

Pelican Bay had minor roof damage to its conference centre, which is currently being repaired. The property is taking corporate business and restoration teams only, and is not open to leisure guests. Its restaurant, Sabor, is also open.

“It is imperative that we get our island up and running,” said Magnus Alnebeck, Pelican Bay’s general manager. “My staff has been exceptional in keeping our doors open, guests as happy as they can be, and

we opened our signature restaurant Sabor two nights ago.

“Our roof damage has been secured and ‘made safe’ thanks to the quick work of local contractor, Freeport Construction. We were able to host the Government delegation twice this week, which included our Prime Minister, and our usual renters held their weekly Sunday church service here too.”

Mr Alnebeck added: “We are very pleased to be able to provide space for many of the companies that are involved in maintaining and restoring essential services.

“It is our hope we will be able to take booked guests and returning residents

shortly, but we will advise via our Facebook page when this can happen. We just want to get our Great Grand Bahama up and going.”

Work on Memories Resort is expected to begin soon, and the company said in a statement released on Tuesday it is expected to open on December 10. Until then, the 500 staff members will undergo extensive customer service retraining ahead of its proposed opening date.

The Grand Lucayan, which includes the Lighthouse Pointe and Breakers Cay, had water damage and roof damage. Lighthouse Pointe is expected to open November 7.

Flamingo Bay Resort had minor damage and is awaiting the restoration of power before opening.

Taino Beach Resort received extensive damage and officials there gave no timeframe for opening.

Old Bahama Bay Resort sustained minimal damage and will open once power and water have been restored.

A team of workers is currently assessing the damage to the Ocean Reef Resort and no opening date has been given at this point.

Treasure Bay Casino reported minor damage to its interior, although it suf-

fered major roof damage.

The property is proposing to open on October 31.

The clean-up of Port Lucaya Marketplace is underway. Businesses there are hoping to re-open soon.

Garden of the Groves had extensive damage to the landscape but restoration efforts are underway. Grand Bahama Nature Tours reported that it was able to secure all of its equipment and will be able to run jeep, bike, ATV and kayak tours as soon as all routes are assessed and cleared for safety. Tours are expected to recommence on October 31, the company said.

Bahamas Paradise Cruise Line is still carrying passengers to Freeport, and the company is looking to aggressively promote twonight Bahamas cruises in hopes of encouraging travel to the island.

Carnival Cruise Lines said it was reviewing upcoming itineraries to make adjustments.

Norwegian Cruise Lines said: “Our destination services team is in close contact with officials and operators in Freeport.

Assessments are ongoing and we will be communicating with our guests soon if there are any impacts or itinerary changes.”

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Graycliff ‘fares pretty well’ during Matthew

Graycliff yesterday said it escaped the worst devastation inflicted by Hurricane Matthew, although it currently remains on generator power.

“Graycliff fared pretty well; just landscape damage and we’re still on generator power. Although I have to admit in looking at the photos, you wouldn’t really know it,” Roberta Garzaroli told Tribune Business.

“During the storm we had a house full of hotel guests; most left on Monday. All services were available to guests during the storm.”

THE TRIBUNE

Power problems ‘tie private sector hands’ on storm restoration

By NATARIO McKENZIE

Tribune Business Reporter

and NEIL HARTNELL Tribune Business Editor

The private sector’s “hands are tied” over Hurricane Matthew restoration by the absence of electrical power and Internet access, the Chamber of Commerce’s chief executive said yesterday.

Edison Sumner told Tribune Business that business community frustration over the slow restoration of electrical supply continues to mount on New Providence, and he urged Bahamas Power & Light (BPL) to “move post haste” on the issue.

He added that the Chamber has received numerous calls from concerned and frustrated businesses, asking for help with BPL and

in having supplies restored to certain areas.

“Recovery is steady but slow,” Mr Sumner said. “A lot of businesses are without basic operating functions, such as power and Internet access. That’s a challenge for many.

“We’re challenged on several fronts. We also understand that stand-by generators are in short supply because they have to look after their own interests in the US coming out of a storm.

“They’re going to be very challenged, a lot of them, especially the small and medium-sized enterprises, to get back into business in a timely fashion,” the Chamber chief added.

“A lot of doors are still closed, and they’re boarded up. Once we get power, the process of restoration will

move much quicker, but right now, our hands are tied.”

Of BPL, Mr Sumner said: “I understand that they may have some challenges getting to some locations because of debris and that sort of thing, but I would have thought that by now, considering that they have such a large backing in PowerSecure, that we should have had a crew of people in here a day or two after the storm passed to assist in getting all this work done.

“Certain provisions should have been put in place with the expectation of this kind of work. We have been receiving numerous calls from the business community expressing frustration over the lack of power supply to their businesses. People have had to throw goods out, and and a

number of companies have not been able to open because they have no electricity.”

Mr Sumner continued: “I’m hoping that in the next day or two we can see a lot more homes and commercial businesses get their electricity restored. The longer these businesses are down, we will not be able to promote trade and commerce in in the country.

“It also limits the ability of persons to purchase products. We have to ensure that we get businesses back up and running, and I certainly urge them to move post-haste to get that done.”

BPL, in a recent statement, said it was making steady progress in New Providence, estimating that “just over 50,000 of its 80,000” residential See pg b5

BPL needs better communication, says ex-union president

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

The former head of the BEC management union yesterday added his voice to criticism of the utility’s Matthew restoration strategy, arguing that it could have quelled Bahamian frustrations through better communication.

Clinton Minnis, expresidnet of the Bahamas Electrical Utility Managerial Union (BEMU), described Hurricane Matthew’s impact as “an unusual challenge” for the energy provider.

“From the generation side we were challenged because a lot of our equipment were affected by water and wind. However we were able to have generation ready for when the distribution network came up. My electricity has been off for seven days because of complications with how Matthew really disrupted our network,” said Mr Minnis.

He argued that having assessed the areas impacted, Bahamas Power & Light (BPL), BEC’s operating successor, should have restored supply to those who could have power restored, then move on, giving focused attention to the more

Says utility’s manpower ‘stretched’ by storm Matthew has provided ‘unusual challenge’ challenging areas.

“The more difficult areas, for example, such as San Souci, South Beach, those areas will take focused attention,” he explained. “I think what needs to happen is that once BPL goes into an area where there is complication, identify the problem, have a team in place not only to assess but deal with the problem, and once it is confirmed that the area is ready for electrification, turn that area on.

“If there are small pockets that are challenged we should be committed to stay in that area until there is full electrification. Some places in my area have had electricity for a few days now and I’m just getting electricity.”

Mr Minnis said BPL could have done a better job communicating to the public on its challenges. “I think BPL could have done a better job communicating more technically and intentionally to the public as to why an area is off, what the challenges are, so that the integrity of the restoration process has happened,” he added.

“The public can’t see certain things that we can, but they are not being informed properly as to why some areas around them are on and they are not. When people don’t understand what’s

going on they become frustrated and angry.”

Mr Minnis also asserted that BEC doesn’t have sufficient resources to tackle the affected Family Islands outside New Providence, and as a result has had to bring in resources from the Cayman Islands, the British Virgin Islands and PowerSecure.

“Our man power is stretched. I worked 26 hours through the storm.

I must commend our staff who have been working around the clock,” Mr Minnis said.

Thursday, October 13, 2016, PAGE 3

E J Bowe

Price Control probes ‘gouging’ complaints

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

The Price Control Commission’s chairman yesterday said it was investigating reports of price gouging on New Providence and the Family Islands, having received several consumer complaint calls to-date E J Bowe told Tribune Business yesterday: “I know that we had several calls, and the inspectors who are based in the Family Islands and New Providence are out responding to those complaints.

“We have had several calls about price gouging in New Providence and the Family Islands. The inspectors have responded. I was out on the holiday trying to respond to complaints we had received from consumers. I have to now check with the chief price inspectors and those to see what their findings are as well.”

His comments come after the Democratic National Alliance’s (DNA) leader earlier this week urged the Government to enact anti-

price gouging laws “with teeth” to protect Bahamian against unscrupulous merchants in Hurricane Matthew’s wake.

Branville McCartney told Tribune Business he had heard of some businesses charging “three times’” the normal price for essential supplies post-Matthew, although he did not name the companies or products involved.

Gowon Bowe, the Bahamas Chamber of Commerce and Employers Confederation’s (BCCEC) chairman, indicated the private sector organisation had received no specific complaints about merchants exploiting postMatthew demand and supply shortages to hike prices.

However, he urged all in the private sector to behave with “integrity and morality”, warning that any attempts at exploitation would cost businesses customers for life.

“The last thing we said is that businesses have to act with integrity,” Mr Bowe told Tribune Business of the Chamber’s position.

PAGE 4 , Thursday, October 13, 2016

Sarkis submits last ditch Baha Mar bid From pg B1 that all offers were required to be tendered through the receivers’ process, and the multitude of bona fide offers we have made were not considered because of that.

“In fact, if our offers had been considered, it is very likely that Baha Mar would be open today, employing thousands of Bahamians.”

Mr Izmirlian added that “the potential acquisition of Baha Mar by an unidentified party via an offer outside the receivers’ process” had spurred BMD Holdings to submit a new offer that was “far superior economically, and in the best interest of the Bahamas”.

The new bid, which retains many of the elements of previous Izmirlian offers, pledges to submit “a price in excess” of the undisclosed offers made by both the China Export-Import Bank’s special purpose vehicle (SPV) and the ultimate purchaser.

This appears to be based on the contents of Justice Ian Winder’s judgment in the receivership proceedings, which Baha Mar’s original developer and his attorneys are barred from attending.

Mr Izmirlian’s letter, and revised offer, seem have been sparked by Tribune Business revealing that judgment, which disclosed that Baha Mar’s secured creditor has set up an SPV to acquire the project’s as-

sets ‘as is’ from the receivers.

China Export-Import Bank has been prompted to do this because none of the purchase offers for Baha Mar, including that from the proposed purchaser, have come “anywhere near” to making the $2.45 billion debt it is owed ‘whole’.

The SPV structure will also likely enable the China Export-Import Bank to ‘hide’ any loss on Baha Mar’s sale ‘off balance sheet’.

Because the sums offered by the SPV and the proposed purchaser have not been disclosed, Mr Izmirlian’s offer also does not include figures, only a promise to ‘top’ what they are offering.

A source familiar with Mr Izmirlian’s position described his offer as “a blank cheque”, and added: “Now it’s going to come down to dollars and cents.

“If the bank is actually able to gain more back, they’re going to have a fiduciary responsibility to pursue that option rather than hide their losses,” the source said, speaking on condition of anonymity.

“It’s a much better proposition than anyone has put forward by a mile. He’s [Mr Izmirlian] coming in at a substantially higher price point.”

Mr Izmirlian’s letter suggests that the Bahamas needs his offer, and an operational Baha Mar, more

than ever in the wake of the devastation inflicted by Hurricane Matthew.

The original developer’s proposal again pledges to pay “100 per cent of all substantiated Bahamian claims’, plus “all monies owed” to former Bahamian and expatriate Baha Mar staff.

Mr Izmirlian also promises to drop all his legal actions and appeals in the Bahamian courts if the offer is accepted, and pledges that he has “the full funding necessary in place for such a purchase price”.

Lennox Paton, the Bahamian attorneys for both the China Export-Import Bank and Baha Mar’s receivers, Deloitte & Touche, declined to comment when contacted by Tribune Business yesterday over Mr Izmirlian’s latest letter.

Raymond Winder, Deloitte & Touche (Bahamas) managing partner, told Tribune Business he had not seen the letter, and asked this newspaper for a copy, declining to comment further.

However, sources close to the receivership camp suggested that Mr Izmirlian’s latest letter - and offer - was likely nothing more than a publicity stunt.

For despite the seeming optimism of the Izmirlian camp, recent history suggests the latest offer is likely to be greeted in similar fashion to previous receptions - with a stony Chinese silence.

It is clear that the Beijing government, and its two entities at the centre of the Baha Mar saga, the China Export-Import Bank and China Construction America (CCA), the project’s general contractor, have no wish to deal with Mr Izmirlian and are determined to oust him as the developer.

Any deal with Mr Izmirlian would likely require CCA to be removed from the project, a demand that has always been a ‘no go’ for the Chinese, with protection of the contractor’s interests seemingly paramount throughout the past 18-month saga.

The Christie administration, too, will probably be reluctant to entertain Mr Izmirlian, both because Baha Mar’s fate is largely out of their hands and the project appears to be progressing to remobilisation and construction completion.

Many observers are likely to wonder why Mr Izmirlian has left his latest bid to the ‘11th hour’, given that the Government already appears far down the road with the Chinese, given the ‘Heads of Terms’ agree-

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Former Bahamian employees have already been paid out under this agreement, negating much of Mr Izmirlian’s promise to make all local creditors ‘whole’, while the China ExportImport Bank, as a government-owned policy institution, is under no obligation to deal with him or accept a higher offer.

All this means Mr Izmirlian is likely to remain on the outside looking in at the project that was his brainchild, with further questions arising over whether he has the wherewithal to pull off a Baha Mar purchase.

The October 10 letter does not disclose the identity of his financing sources, a recurring issue that the original developer has yet to answer. Observers have previously suggested that the China Export-Import Bank would have accepted his offers to make it ‘whole’, had money been put on the table.

Still, in calling on the China Export-Import Bank to “put our disagreements of the past year behind us”, Mr Izmirlian set out the bank’s strategy as he saw it.

“CEXIM has purchased the Baha Mar assets via a newly-established company. In essence, CEXIM has taken all the potential viable assets out, including the claim against CCA, and left behind all the obligations,” he wrote.

“It is our understanding that CEXIM then intends to complete the resort construction and proceed with a second transaction to sell the resort to an undisclosed Chinese party.”

Arguing that he offered a better alternative, Mr Izmirlian said: “My team can conclude this transaction with CEXIM with the fewest surprises in the shortest period of time. We can complete Baha Mar with the soonest opening of all other options.

“We are in the best position to re-engage the people of the Bahamas as passionate supporters of Baha Mar and its stakeholders. And we can pay the highest price for the benefit of the bank and all its stakeholders.

“Together, we can move ahead to a swift and mutually beneficial resolution for Baha Mar, which will result in the resort being open as soon as possible to serve the best interests of the Bahamas, as well as the bank. Now more than ever the country, in its time of need, requires us to come together.”

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THE TRIBUNE

Banks told: Show ‘flexibility’ over lending relaxation From pg B1 damages caused by Hurricane Matthew, and to facilitate access by households to credit facilities for relief purposes, the Central Bank of the Bahamas announces the temporary relaxation of lending guidelines to domestic banks,” the Central Bank said, adding that this would be subject to continual monitoring.

Edison Sumner, the Bahamas Chamber of Commerce and Employers Confederation’s (BCCEC) chief executive, praised the Central Bank’s action as “a good move” towards stimulating economic activity in Matthew’s wake.

However, he emphasised that the alterations were merely to ‘guidelines’, not law or policy that was ‘set in stone’, meaning that it would be up to the discretion of each commercial bank as to how they treated borrowers post-Matthew.

“The fact the Central Bank took the move they did to relax the debt service ratios for persons needing to go to the bank to borrow money is a good thing,” Mr Sumner told Tribune Business.

“But it’s for the banks themselves to agree. They will still have to take applications on a case-by-case basis, depending on the borrower’s history and creditworthiness.

“It’s a good thing that the Central Bank has done that, but it doesn’t necessarily mean the banks are going to commit. At least the opportunity’s there.”

The regulator’s move is designed to improve access to credit for hard-pressed businesses and homeowners requiring emergency fi-

nancing to repair premises/ inventories in Matthew’s wake.

Some commercial banks already go beyond the ratios suggested by the Central Bank, depending on a borrower’s history and ability to repay, and Bahamians will have to hope they take the Central Bank relaxation to heart.

“If they have to restructure existing loans and give small loans, they can increase that by 10 percentage points and give them access,” Mr Sumner said of the Central Bank’s move.

“All that is going to spur economic activity.”

The Chamber chief said restarting commerce, and getting the economy moving, was the best way for the Bahamas to recover from Matthew, as employment and the associated income would help to finance recovery - especially for those who are either uninsured or underinsured.

“Whilst this has been a very devastating hurricane for the country, particularly for New Providence, Freeport and Andros, it’s going to generate some activity in the economy, particularly for a lot of people who will be employed in construction,” Mr Sumner told Tribune Business.

“The only way that happens is if we have capital flowing through the economy. If capital freezes, we have a problem, and that leads to depressions.

“If capital flows, the economy looks better, so we hope the banks show flexibility and understanding to allow customers to get their homes repaired, with similar monies being handed out to the business community.”

Auto dealer supports storm fraud safeguard From pg B1 they were getting brand new vehicles,” Mr Lowe told Tribune Business of previous hurricane exigency Orders.

“They’re now doing what they didn’t do last time.

People were getting new car replacements and they ran into problems issuing duty refunds to people. They eventually caught it and corrected it.”

Mr Lowe said the auto industry’s valuation standards were that vehicles depreciated in value by 15-20 per cent per annum from the date of purchase.

This formula, he added, would be applied to autos written-off by Hurricane Matthew, using their date of manufacture or sale as the starting point, and assuming the vehicle was not previously “in bad condition and mashed up”.

Mr Lowe, though, suggested that the 180-day tax exemption period set by the Government for the islands of New Providence, Grand Bahama, Andros and the Berry Islands was “not enough”, given that there was “so much damage” to deal with.

Given that the National Emergency Management Agency (NEMA) must also verify all claims for hurricane relief-related exemptions, Mr Lowe also questioned whether it had sufficient manpower and resources for the task.

He warned that Bahamians were likely to become “frustrated by the bureaucracy” involved, and the time required to process claims.

“I think that it’s noth-

ing more than a goodwill gesture,” he told Tribune Business of the ‘exigency Order’. “People are going to be frustrated by the bureaucracy.

“I don’t think they’re going to be able to cope with all the claims coming in, as you have to have prior approval from NEMA. To put all the ducks in a row, and make sure it’s a legitimate claim, is going to take plenty of effort.

“If the Government is serious about accountability, they’ve got to closely check and they’ve got to have the manpower. It could be overwhelming for NEMA, as claims will be coming out of the woodwork. I can’t see six months being enough.”

Mr Lowe also expressed concern about the impact Hurricane Matthew will have on the Bahamas’ already hard-pressed fiscal position.

“We’re already in a precarious financial position, the country is,” he said.

“How close to the precipice is this going to push us?”

The exigency Order says: “Customs Duty and VAT exemptions will be granted to registered charitable organisations, and individuals whose loss by Hurricane Matthew has been verified

by NEMA “All other authorised donations will be deemed a gift to the Government and will be received and distributed by NEMA.” Prime Minister Perry Christie has the ability to extend the exigency Order beyond its April 4 deadline.

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THE TRIBUNE

Thursday, October 13, 2016, PAGE 5

‘Support Bahamian’ in our hour of need From pg B1 told Tribune Business he hoped that once the Government’s Hurricane Matthew ‘exigency Order’ was posted, it would incentivise a ‘buy Bahamian’ drive “to spur” commerce back to life.

“I think that’s going to be very helpful for the residential and business communities,” Mr Sumner said of the Order.

“Once it is read, we’re looking for incentives to be in place for the business community, so that not everybody is looking to go abroad to import the goods they need, be it building materials, furniture, appliances.

“We want to encourage as much of the shopping as

possible to be done at home.

It’s important to show support for the business community, many of whom are closed, and many of whom may not re-open, because the loss is too severe.”

Mr Sumner said the Chamber was especially focused on small and mediumsized enterprises(SMEs), which are widely regarded as the backbone for many economies, but often lack the insurance coverage or financial reserves to recover from storms such as Matthew.

He disclosed that the private sector organisation was in discussion with the Government and providing further storm-related incentives that would be targeted at SMEs, and the wider busi-

ness community, although he declined to identify them.

“We believe that based on the work done by the Chamber with the Government, there will be incentives for businesses to participate on the exigency Order,” Mr Sumner told Tribune Business.

“The Chamber will articulate this position fully in the next day or so, that people are fully aware. We have a level of partnership to ensure we support this economy, particularly the small business sector, while we recover from this devastating storm and get the economy back on the right footing.”

Mr Sumner added that provisions would be made for Bahamian small businesses to access credit lines and financing, so they could repair properties, replenish inventory and become operational again.

He acknowledged that government institutions,

Hurricane exposes BPL manager’s ‘inexperience’ From pg B1 Electricity Corporation (BEC) under the former Ingraham administration, said PowerSecure International was also providing a “buffer” for the Government’s own failings.

He suggested that the slow restoration of electrical services on New Providence stemmed at least partly from the Christie administration itself failing to follow set “policies and programmes” left in place by previous governments.

Mr Neymour said a ‘checklist’ of pre- and poststorm steps for BEC to take had long existed, but these were “clearly not followed” in the case of Matthew, hindering efforts to restore power to thousands of Bahamians.

He added that restoration efforts were being further hampered by BPL’s poor customer communications, a tradition that stretched back to BEC days and before PowerSecure’s hiring as the monopoly utility’s manager.

Revealing that he himself was without electricity, Mr Neymour echoed calls by others for BPL to provide details on its restoration plan and the timeline for reconnecting specific areas, explaining that this would eliminate much of the frustration and complaints.

He also disclosed that the then-BEC successfully fought-off his efforts for it to implement a customer

call centre, something that has now been adopted by the Water & Sewerage Corporation.

“I’m extremely disappointed in BPL in terms of their performance,” Mr Neymour told Tribune Business. “It’s clear that they were not properly prepared for this hurricane.

“It also shows that some of the experience BPL has had in the past in dealing with hurricanes, they’ve either lost some of it or they chose not to adhere to the policies and programmes we left in place.”

Mr Neymour suggested that BPL’s woes stemmed from one or a combination of these factors, and added: “What is evident is that...PowerSecure’s inexperience in dealing with the hurricane’s aftermath is being demonstrated at this point in time.

“I’ve always stated that to procure PowerSecure on a management contract only serves to buffer the Government from public outcry.

PowerSecure is taking the brunt of the Government’s lack of preparation.”

The former minister of state for environment thus suggested that PowerSecure is serving as a convenient scapegoat for the Christie administration’s failure, as BPL’s ultimate 100 per cent owner, to properly prepare for electricity restoration in Matthew’s aftermath.

“I blame the Government for not knowing what to do,

Power problems ‘tie private sector hands’ on storm restoration From pg B3 customer connections had been restored.

It added that it not only appreciates, but understands, the frustration of local residents who have been without power supply in some cases for a week.

The press statement read: “Bahamas Power and Light Company (BPL) is making steady progress in New Providence following Hurricane Matthew.

“So far, BPL has restored supply to more than half of its residential customers on the island, and supply has also been restored to the majority of the company’s commercial customers.

“BPL estimates that just

over 50,000 of its 80,000 residential connections have been restored, and the company is moving aggressively to have the vast majority of customers back on supply by the end of the week.”

It added: “Company officials say they not only appreciate but fully understand the frustration of local residents who have been without supply, in some cases, for a week.

“Efforts are underway to ramp up the restoration progress by using local support as well as assistance from other Caribbean utilities and BPL’s management company, PowerSecure. International help arrives on the island on Wednesday.”

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Phenton Neymour and not knowing their backside from their elbow in that regard,” Mr Neymour told Tribune Business.

“They themselves have failed to carry out most of the activities we traditionally did. Prior to hurricanes, we ensured the power company carried out hurricane preparation programmes, and that the resources were in place.”

The ex-Cabinet minister said this involved ensuring rental generators were available, and ready for installation, should they be required in a storm’s aftermath.

“We also ensured BPL’s equipment was operational, and they had cherry pickers; lift equipment available, and available on the islands where it was needed,” Mr Neymour added.

“Exuma was always a problem child. We’d ensure

such as the Bahamas Entrepreneurial Venture Fund (venture capital fund) and the Bahamas Development Bank (BDB), would “be part” of this initiative.

“There’s going to be further provisions and incentives given out for small companies impacted by the hurricane to access other lines of credit and funding to get their businesses up and running,” Mr Sumner told Tribune Business.

“Once the exigency Order is signed and posted, it will incentivise people to spend most of their dollars at home to spur on the local economy.

“It’s going to be important for everybody to support what is Bahamian, and support our local economy, especially in those impacted Family Islands.”

He continued: “Micro and macro businesses may need to go outside to replenish supplies, but we want to en-

courage people to shop at home as much as they can; retailers and small companies to buy from wholesalers, and to buy from hardware and building materials supply stores, taking full advantage of the exigency Order.”

The exigency Order proposed by the Government in the wake of Hurricane Matthew will last for 180 days from October 7, and allow Bahamians and businesses to import key recovery items free of Customs duty and ‘border’ Value-Added Tax (VAT).

The Order, which only applies to the impacted islands of New Providence, Grand Bahama, Andros and the Berry Islands, is focused on providing ‘tax breaks’ for key restoration items building materials, automobiles, heavy-duty appliances and food/water.

Goods that will be tax exempt include building mate-

rials; electrical fixtures and materials; plumbing fixtures and materials; household furniture; furnishings and appliances; bottled water; generators; and motor vehicles.

Bottled water imports will only be allowed for 60 days, and the Prime Minister has the option to extend the exigency Order beyond its April 4, 2017, expiry.

Departure tax on flights bringing in relief supplies, and associated Customs processing fees, will only be waived for the three-month period starting on October 7, 2016.

Mr Sumner said the Chamber’s Board would meet today to determine its “contribution” to Matthew relief efforts, and what it will seek in negotiations with the Government on the private sector’s behalf.

those items were in place prior to a hurricane. We’d ensure there were plans and procedures for shutting down the system in phases, and to return to operations.

These things the Government ensured were in place prior to the hurricane.

“We had them outlined at various stages - hurricane watch, hurricane warning - things for the power company to do. This clearly was not done in this case.”

In BPL and PowerSecure’s defence, Hurricane Matthew has been among the most powerful and devastating storms to hit Nassau in decades, leaving the monopoly utility provider facing a much larger restoration task than in previous storms.

It is grappling with downed poles and power lines, and the presence of collapsed trees in the vicinity of much of this destruction has complicated recovery efforts.

Still, many Bahamians are likely to question why BPL did not seek to more quickly supplement its existing workforce with former and retired employees, and third-party contractors, to speed up power restoration.

And, while it has sought assistance from other Caribbean utilities via CARILEC, the regional association of power providers, some observers are likely to

query why it has taken PowerSecure more than a week since the storm’s passage to ramp up its assistance.

In a newly-released video on BPL’s Facebook page, Pam Hill, its chief executive, said PowerSecure would be moving to “double” the company’s line crews and equipment come Friday.

However, it is unclear why BPL has seemingly not reached out to PowerSecure’s owner, the Atlantabased utility giant, Southern Company, for more aid especially given that the latter is in close proximity to the Bahamas.

Many are likely to draw unfavourable comparisons with Grand Bahama Power Company, which has also ready received support from the Tampa and Canadian affiliates of its majority shareholder, Emera.

Mr Neymour, meanwhile, said problems with Matthew restoration efforts had been exacerbated by BPL’s “extremely poor” customer service, a legacy of its BEC days.

As a result, New Providence residents were not being adequately informed about the areas BPL was concentrating on, and “the sequence of operations” and reconnection.

“I’m still without electricity. I’m struggling like everyone else,” Mr Neymour told Tribune Business. “I only want to know when

they will get to my area.

Once they tell me that, I will be satisfied.”

He continued: “When I was minister, I had challenges with them that they themselves chose not to address with their customer service issues.

“BPL has already been poor in that area, and it’s getting worse. In my time, I had challenges putting in call centre operations. BPL fought against that, and made life extremely difficult to improve that system.”

Dr Hubert Minnis, the FNM’s leader, also called yesterday for the Government and BPL to publish a restoration timeline.

“Bahamians have a right to know the schedule that BPL plans to follow in their efforts to restore power to the entire island,” he said.

“Right now, too many Bahamian families and businesses have been left in the dark – both literally and figuratively. They need this information so they are able to make plans and start their own restoration efforts.

“Many Bahamians are still staying with family and friends with no knowledge of when they can return to their homes. As of Wednesday morning, about 40 per cent of New Providence was still without power, and these residents’ only request is to know a tentative timeline of when they can return home.”

MARKET REPORT WEDNESDAY, 12 OCTOBER 2016

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

BISX ALL SHARE INDEX: CLOSE 1,947.34 | CHG 0.01 | %CHG 0.00 | YTD 123.39 | YTD% 6.76 BISX LISTED & TRADED SECURITIES 52WK HI 4.25 17.43 9.09 3.50 4.70 0.18 8.30 8.50 6.10 10.60 15.50 2.72 1.60 5.80 9.00 11.00 8.26 6.90 12.25 11.00

52WK LOW 2.47 17.43 9.09 3.15 1.77 0.12 6.09 7.25 5.50 7.00 13.05 2.25 1.31 5.55 6.00 9.85 6.12 6.23 11.80 10.00

PREFERENCE SHARES 1000.00 1000.00 1000.00 1000.00

1000.00 1000.00 1000.00 1000.00

1.00 106.00 100.00 106.00 105.00 105.00 100.00 10.00 1.01

1.00 105.50 100.00 100.00 105.00 100.00 100.00 10.00 1.01

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 Famguard Fidelity Bank Finco Focol ICD Utilities J. S. Johnson Premier Real Estate

SYMBOL AML APD BPF BWL BOB BBL CAB CIB CHL CBL CBB CWCB DHS FAM FBB FIN FCL ICD JSJ PRE

LAST CLOSE 4.06 15.85 9.09 3.50 1.96 0.12 6.47 8.50 5.83 10.44 14.00 2.18 1.53 5.80 8.78 10.95 8.26 6.61 11.93 10.00

CLOSE 4.06 15.85 9.09 3.50 1.96 0.12 6.47 8.50 5.83 10.44 14.00 2.19 1.53 5.80 8.78 10.95 8.26 6.61 11.93 10.00

CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.01 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Cable Bahamas Series 6 Cable Bahamas Series 8 Cable Bahamas Series 9 Cable Bahamas Series 10 Colina Holdings Class A Commonwealth Bank Class Commonwealth Bank Class Commonwealth Bank Class Commonwealth Bank Class Commonwealth Bank Class Commonwealth Bank Class Fidelity Bank Class A Focol Class B

CAB6 CAB8 CAB9 CAB10 CHLA CBLE CBLJ CBLK CBLL CBLM CBLN FBBA FCLB

1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.00 100.00 100.00 100.00 10.00 1.01

1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.11 100.00 100.00 100.00 10.00 1.01

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

SECURITY Fidelity Bank Note 17 (Series A) + Fidelity Bank Note 18 (Series E) + Fidelity Bank Note 22 (Series B) +

SYMBOL FBB17 FBB18 FBB22

LAST SALE 100.00 100.00 100.00

CLOSE 100.00 100.00 100.00

CHANGE 0.00 0.00 0.00

Bahamas Note 6.95 (2029) BGS: 2014-12-3Y 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

BAH29 BG0103 BG0203 BG0105 BG0205 BG0107 BG0207 BG0130 BG0230 BG0303 BG0305 BG0307 BG0330

115.18 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

115.33 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

0.15 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

E J K L M N

CORPORATE DEBT - (percentage pricing) 52WK HI 100.00 100.00 100.00

52WK LOW 100.00 100.00 100.00

BAHAMAS GOVERNMENT STOCK - (percentage pricing) 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

113.70 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

VOLUME

11,400

VOLUME

EPS$ 0.304 1.351 1.086 0.220 -1.134 0.000 0.185 0.551 0.508 0.541 0.528 0.094 0.166 0.510 0.612 0.960 0.650 0.703 0.756 0.000

DIV$ 0.090 1.000 0.000 0.160 0.000 0.000 0.187 0.260 0.200 0.360 0.610 0.060 0.040 0.240 0.275 0.000 0.280 0.120 0.640 0.000

P/E 13.4 11.7 8.4 15.9 N/M N/M 35.0 15.4 11.5 19.3 26.5 23.3 9.2 11.4 14.3 11.4 12.7 9.4 15.8 0.0

YIELD 2.22% 6.31% 0.00% 4.57% 0.00% 0.00% 2.89% 3.06% 3.43% 3.45% 4.36% 2.74% 2.61% 4.14% 3.13% 0.00% 3.39% 1.82% 5.36% 0.00%

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 7.00% 6.00% Prime + 1.75%

MATURITY 19-Oct-2017 31-May-2018 19-Oct-2022

6.95% 4.00% 4.00% 4.25% 4.25% 4.50% 4.50% 6.25% 6.25% 4.00% 4.25% 4.50% 6.25%

20-Nov-2029 15-Dec-2017 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

MUTUAL FUNDS 52WK HI 1.99 3.90 1.92 167.58 138.35 1.45 1.67 1.55 1.09 6.94 8.65 5.92 9.94 11.15 10.46

52WK LOW 1.67 3.04 1.68 164.74 116.70 1.39 1.60 1.50 1.03 6.41 7.62 5.66 8.65 10.54 9.57

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

NAV 1.99 3.90 1.92 167.58 136.68 1.45 1.67 1.55 1.09 6.94 8.65 5.92 9.59 11.15 9.57

YTD% 12 MTH% 2.33% 4.05% 3.34% 6.09% 1.63% 2.99% 3.41% 5.18% 2.95% -0.58% 2.51% 3.84% 2.48% 4.47% 2.20% 3.79% 5.03% 3.89% 4.05% 8.28% 5.93% 13.53% 2.73% 4.73% 3.97% -3.53% 2.96% 4.33% -4.26% -6.22%

NAV Date 31-Jul-2016 31-Jul-2016 27-Jul-2016 30-Jun-2016 30-Jun-2016 31-Aug-2016 31-Aug-2016 31-Aug-2016 31-Aug-2016 31-Jul-2016 31-Jul-2016 31-Jul-2016 31-Jul-2016 31-Jul-2016 31-Jul-2016

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

PAGE 6 , Thursday, October 13, 2016

THE TRIBUNE

US Marines headed to hurricane-ravaged Haiti with relief

German Minister of Labour and Social Affairs Andrea Nahles arrives for the weekly cabinet meeting of the German government at the chancellery in Berlin, yesterday. (AP Photo)

Germany to limit jobless benefits for other EU citizens

BERLIN (AP) – The German government on Wednesday approved legislation that would prevent citizens of other European Union nations who haven’t worked in Germany from claiming full jobless benefits in their first five years as residents.

The Cabinet’s decision followed a federal court ruling last year that nationals of the other 27 EU countries can seek jobless and other welfare payments after six months.

Labor Minister Andrea Nahles’ plan, under which foreign EU claimants who haven’t worked would be entitled only to “bridging payments” for one month,

requires parliamentary approval.

EU countries must allow full labor market access to other members’ citizens.

However, the EU’s highest court has ruled in previous cases that Germany was entitled to refuse or cut off unemployment benefits to EU immigrants who made little or no effort to find work.

With the decision, “we are strengthening trust in the European idea one if its greatest achievements: freedom of movement for workers,” Nahles said in a statement. “And we are protecting our municipalities, which have to shoulder welfare payments, from ex-

cessive financial demands.”

Concern about perceived abuse of EU workers’ freedom of movement and of welfare systems has mounted in recent years, particularly in Britain.

In February, then-British Prime Minister David Cameron secured concessions on the payment of child benefits to other EU countries’ citizens to help persuade Britons to stay in the EU. Still, British voters narrowly voted to leave the bloc in a June referendum.

New British Prime Minister Theresa May has signaled that she’s prepared to prioritize immigration curbs in exit negotiations with the EU.

ABOARD THE USS IWO JIMA (AP) — A U.S. Navy warship is bringing hundreds of Marines and sailors, along with power generators, water purifiers and bulldozers, to bolster relief efforts in Haiti, where Hurricane Matthew has left at least 750,000 people desperately in need of assistance.

Navy Capt. James Midkiff, commander of the USS Iwo Jima, said the eight helicopters on the ship will start ferrying food and medical supplies for aid organizations upon arrival, which is expected as early as Wednesday. The Iwo Jima can also provide medical help in Haiti, where hundreds have died, the injured languish unattended in hospitals, doctors warn of a surge in cholera and anger is rising in remote communities still awaiting aid a week after the hurricane struck.

The Iwo Jima is carrying more than 1,100 sailors and 600 Marines, and with them the number of U.S. military personnel in Haiti to provide relieve will rise to about 2,500.

While the Marines and sailors have yet to be given their marching orders about what they will be doing, the plan is to “alleviate some of the suffering that is going on and prevent any additional loss of life,” said Lt. Col. Christopher Hafer, the commanding officer of the Marines’ Combat Logistics Battalion 24.

Matthew has officially left 473 people dead as of Tuesday, according to the National Civil Protection headquarters in Port-auPrince. But local officials in one southwestern region, Grand-Anse, said the death toll there alone tops 500.

The U.N. humanitarian agency in Geneva has made an emergency appeal for nearly $120 million in aid, saying that about threequarters of a million people in southwest Haiti alone will need “life-saving assistance and protection” in the next three months.

Speaking from his cabin aboard the ship, Midkiff said the Iwo Jima dodged

A woman walks to a shelter with her son as they leave after their home was destroyed by Hurricane Matthew in Jeremie, Haiti on Sunday, Oct. 9, 2016. Jeremie appears to be the epicenter of the country’s growing humanitarian crisis in the wake of the storm.

Hurricane Matthew twice and Tropical Storm Nicole as it collected Marines and supplies and headed for Haiti. The ship left its home port in Mayport, Florida, as the base was being evacuated ahead of Matthew.

“It sounds like I’m making some of this stuff up,” he said.

Tthe Navy then directed the Iwo Jima to Norfolk, Virginia, to pick up some Marines and head for Haiti.

Along the way it encountered the outer bands of Matthew and then the swells from Nicole, which later strengthened into a hurricane. It also collected some Osprey aircraft and more Marines from the USS George Washington, an aircraft carrier whose orders to help out in the storm-hit Bahamas were cancelled. The Iwo Jima will relieve the USS Mesa Verde, another U.S. ship that has been helping in Haiti but needs to prepare for a future deployment.

Standing in one of the hallways of the Iwo Jima, Matthew Estes, a 31-yearold Navy medic from Corryton, Tennessee, said he’s excited to help Haitian civilians who are “devastated down there.”

“Before I left, I was nervous, anxious and overwhelmed with excitement,” he said. “I’m doing the job that I want to do — that I joined to do.”

He was an emergency

medical technician in Tennessee as well as a landscaper before joining up.

“My wife was a little upset, but she understands the pick-up-and-go,” he said.

“She cried a little on the phone but then texted me and said this is what you joined to do, what you love to do.”

Marine Lance Cpl. Zachary Younts, 20, of Dallastown, Pennsylvania, said he usually works on trucks as a diesel mechanic.

“I hate sitting in a bay working on an engine all day,” he said. “I love this.

This is awesome. It gives me a sense of doing something in my career.”

Younts said he’s excited to hand out food to civilians or ship out equipment, whatever is asked of him. He didn’t know he was going to Haiti when he boarded a bus on Friday night from Camp Lejeune in North Carolina.

“I just knew I was going somewhere,” he said.

Marine Lance Cpl. Shawn Durrell, 20, of Compton, California, said he expects to work hard.

“It’s one of the biggest experiences of my life,” he said. “Not only are we going to a different country, we’re seeing what we can do. And we’re here to help. One of the biggest things in life is to help.”

U.S. soldiers unload foods from a helicopter in Jeremie, Haiti, Sunday, Oct. 9, 2016. Aid has begun pouring into the hard-hit town, where thousands of homes were damaged or destroyed and many people were running low on food and facing an increased risk for cholera. (AP Photos)

THE TRIBUNE

Thursday, October 13, 2016, PAGE 7

Trump is not alone: How some tax policy favours the rich

By AP Personal Finance Writer Donald Trump's taxes still have many people scratching their heads: How did he incur such massive losses? What happened in other tax years? Is what he did legal? And how is this even possible?

The U.S. tax code is notoriously complex. But in general, federal income tax is progressive — those who earn less face lower taxes and those who earn more face higher taxes. There are many ways to legally reduce or even eliminate that tax burden.

A 2011 study from the nonpartisan Tax Policy Center found about 46 percent of Americans paid no federal income tax (it estimates 44 percent will not pay any this year). About half of those not paying federal income tax had no taxable income, while the other half took advantage of measures in the law that allow them to wipe out their tax liabilities.

The latter primarily benefit lower- and middleincome groups, thanks to things such as the earned income tax credit, child credits or education tax credits. However, many high-income individuals are also able to benefit from tax policy.

Tax experts say the code is full of loopholes that may be available to everyone, but tend to benefit the rich.

That is part of what has made The New York Times' recent revelation, raised again at the most recent debate, so intriguing. According to tax documents leaked to the newspaper, Trump claimed more than $900 million in losses in 1995, enough to potentially and legally reduce his tax bill to zero for as many as 18 years.

Trump has yet to release his taxes, although he said he will when his audit is complete.

But it appears to have been done through one of many elements in the tax

code favoring real estate developers. But there are many other legal paths for anyone of significant means to lower their tax payments.

The Republican presidential candidate and his supporters call his tax moves smart, others say they're unfair.

“It's emblematic of the way most people feel about the tax system,” said Matt Gardner, executive director of the Institute on Taxation and Economic Policy, a nonprofit and nonpartisan research organization. “It favors those who have the resources.”

The public sees the nation's tax system as deeply flawed. A 2015 survey by the Pew Research Center found that 59 percent of Americans say there is so much wrong with the system that Congress should completely change it. It also found that 61 percent feel that some wealthy people don't pay their fair share.

The Associated Press spoke to a few experts about some of the ways that the wealthy can work within the law to lower their federal income tax. Here are a few:

NET OPERATING LOSS Trump has brought this common accounting practice into the spotlight.

It allows businesses to count losses, including real estate depreciation, against other income to lower their taxes. This could potentially wipe out their tax payment completely for the year. And if losses exceed income, they can carry that balance forward to future years to reduce their tax burden.

It is designed to smooth the ups and downs in a company's profitability over the years to help them stay afloat. But the loophole exists when you can burst outside of the business loss and apply it against any kind of income, Gardner said.

Toyota recalls 340,000 Prius hybrid cars for faulty brakes TOKYO (AP) — Toyota Motor Corp. recalled 340,000 gas-electric hybrid Prius cars around the world Wednesday, 212,000 of them in Japan and 94,000 in North America, for a defect in their parking brakes.

Toyota acknowledged receiving reports of crashes, injuries and deaths. The

Japanese automaker refused to provide details, saying it was still looking into the reports.

Toyota said the parking brake cable can disengage unexpectedly, causing the brakes to stop working properly. So if the car is left in any gear other than park, it could start rolling away,

with money” as he once wrote in a New York Times op-ed, so their income is primarily subject to capital gains tax rate. Meanwhile, middle and lower-income Americans are paying taxes based on wages, which face a different and sometimes higher rate.

In fact, tax experts are quick to point out that any review of federal income tax does not reflect the full amount that Americans pay in taxes. We face taxes every day — gas tax, property tax, local and state taxes — and they often weigh heavy on the lower and middle class.

CARRIED INTEREST Republican presidential nominee Donald Trump speaks during the presidential debate with Democratic presidential nominee Hillary Clinton at Hofstra University in Hempstead, N.Y. A recently published glimpse of Trump’s taxes left many people scratching their heads, wondering how he incurred such massive losses and what happened in other tax years, as well as the legality of what he did. Tax experts say the code is full of provisions that may be available to everyone, but tend to benefit the rich. (AP Photo) Tax code changed in the '80s to disallow people from exploiting this opportunity and generating losses to count against personal income. But the provision remained in place for professional real estate developers, such as Trump.

“If ever there was a gig that was rigged against regular folks, this is it,” said Neil Buchanan, an economist and tax law professor at George Washington University.

DEDUCTIONS A more common way for higher-income people to lower their personal taxes is through deductions, such as donations to charity, unreimbursed business expenses and even mortgage interest deductions on second homes.

The IRS publishes data annually on the individual tax returns of people who report income of $200,000 or more. It showed highincome people found many ways to reduce their tax burden, the most common and possibly crash.

Toyota said 17,000 Prius vehicles were recalled in Europe, and the rest in Australia and other regions.

The problem models were manufactured from August 2015 through October 2016.

The company said all the vehicles were manufactured at its Tsutsumi plant in Toyota city, Japan, the company's headquarters, one of a handful of plants around the world that make the Prius.

of which in 2013 — the most recent year available — was total miscellaneous deductions.

It's still not common for high-income individuals to face zero tax though.

That same IRS report showed that of the 5.6 million income tax returns with an adjustable gross income of $200,000 or more in 2013, only 12,517 faced no U.S. income tax liability that year. That is roughly 0.2 percent of high-income returns filed that year. By comparison, nearly 18.6 million taxpayers with incomes under $50,000 faced zero U.S. income taxes that year— roughly 20 percent of that income group.

There are limits on deductions though, even for the rich.

Warren Buffett, the famed billionaire investor who was called out by

Trump in the last debate for over deductions, said he could only claim about $3.5 million of his nearly $2.9 billion in charitable deductions because of caps in place per tax law.

Buffett also pointed out that he has paid federal income tax every year since he was 13.

CAPITAL GAINS Capital gains are the profit from the sale of an investment. And while there is one set of tax rates for wages, there is another for capital gains, running from zero to 20 percent.

Buffett, for example, has previously noted that he is taxed at a lower rate than his secretary, another issue that raised its head at the debate. This is due in part to capital gains taxes. He and his peers “make money

Popular with hedge-fund and private-equity managers, this allows some of their pay to grow and only face taxes when they cash out.

These partners and managers' compensation often comes from gains on the money they manage. They are paid a fee on the assets under management, plus a cut of the profits, known as carried interest. The fees are taxed as ordinary income but carried interest is taxed at capital gains rate.

It has often come under scrutiny and the U.S. Treasury has estimated that taxing carried interest at ordinary income rates would raise about $18 billion over 10 years.

“It's become the poster child of things that are unfair,” said Kyle Pomerleau of the Tax Foundation. But he argues it's not a significant loophole in terms of total dollars that could be recovered if it were closed.

“These sorts of exemptions or deductions or credits are throughout the tax code,” he said.

PAGE 8 , Thursday, October 13, 2016

Gina Miller poses for a portrait near the Houses of Parliament in London, yesterday. Financial entrepreneur Gina Miller’s landmark lawsuit begins with a simple question: can Theresa May’s government invoke Article 50 and trigger the exit from the European Union without an act of Parliament. (AP Photo)

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UK lawsuit challenges British PM Theresa May on Brexit LONDON (AP) — The case is considered the most important constitutional matter in a generation: can Prime Minister Theresa May start negotiating Britain’s exit from the European Union without an act of Parliament?

Financial entrepreneur Gina Miller’s lawsuit against the government seeks to answer this as well as much bigger questions about where power lies in this nation’s democracy and whether rights can be revoked without a vote of lawmakers.

May says the June 23 referendum on EU membership gave her a mandate to take Britain out of the 28-nation bloc and that discussing the details of her strategy with Parliament would weaken the government’s negotiating position.

May has announced plans to invoke Article 50 of the EU treaty, starting talks on Britain’s future relationship with the single market, by the end of March.

The lawsuit, hearings on which begin Thursday at the High Court in London, could derail those plans.

But Miller, who supported the campaign to stay in the EU, says the case isn’t about blocking Brexit — a British exit from the EU — or keeping Britain in the bloc.

“It’s about democracy,” she said. “To my mind, the most dangerous precedent we’d be setting is that a government can overrule Parliament and not consult it when we are making decisions about people’s rights.

And that to me is a very,

very dangerous place.”

Andrew Blick, an expert on the Magna Carta at King’s College London, said the case involves an argument that dates back almost 400 years to the English Civil War as to whether power ultimately rests in the executive or Parliament.

“It’s a long, long running dispute,” he said. “It goes back to the clash between the king and the representatives of the subjects. This is just another installment of it.”

Underscoring the importance of the case, May put Attorney General Jeremy Wright in charge of the legal team fighting the suit.

That announcement was made with a flourish at the recent Conservative Party conference as May underscored she would “make a success” of taking the country out of the EU. Wright argues the suit is an attempt to put a legal obstacle in the way of enacting the referendum result.

“There must be no attempts to remain inside the EU, no attempts to re-join it through the back door, and no second referendum,” he said in a statement. “We do not believe this case has legal merit. The result should be respected and the government intends to do just that.”

At issue is May’s attempt to use Royal Prerogative, historic powers officially held by the queen, to trigger Article 50. The powers, which have in reality passed to politicians, enable decisions to be made without a vote of Parliament and

Russia's Putin: Moscow is not meddling in US election MOSCOW (AP) — Russian President Vladimir Putin is rebuffing accusations that Moscow is meddling in U.S. elections through hacking and says the identity of the cyber-criminal is unimportant.

U.S. officials accused Russia last week of coordinating hacks of the Democratic National Convention and other U.S. institutions.

Putin says Wednesday in Moscow that “hysterics have been whipped up to distract the attention of the

American people from the essence of what the hackers released ... For some reason nobody talks about this.

They talk about who did it.

Is it really that important?”

Putin said U.S. politicians were “abusing anti-Russian rhetoric” ahead of the Nov. 8 election, but called the attention flattering.

He says “Problem No. 1 in the electoral campaign is Russia. That’s all they talk about. This, of course, very pleasant.”

cover matters as grave as declaring war or as basic as issuing passports.

Historically, Royal Prerogative has also applied to foreign affairs and the negotiation of treaties.

Miller argues that Parliament should decide whether to invoke Article 50 — after a full debate and vote — because the rights of individuals in Britain are being revoked in the process. The freedom of movement, the freedom of trade and the freedom to vote in European elections are among the rights that will change when Britain leaves the EU. “You’re taking away individual rights as a matter of national law,” said Miller, 51, who runs SCM Direct, an online investment manager, and is also a lawyer.

britain’s brexit strategy Politically, though, there’s growing cross-party pressure to give Parliament a say on Britain’s Brexit strategy before Article 50 is invoked. A motion debated Wednesday in the House of Commons demands that lawmakers have a chance to “properly scrutinize” the Brexit strategy before the formal exit process begins.

May faced a rebellion from members of her own party and was forced to concede that Conservative lawmakers could support the opposition Labour Party’s motion on Wednesday.

But she insisted on amendments stating that the result of the EU referendum must

be respected and that the government’s negotiating position should not be undermined.

Further complicating matters for lawyers on both sides of the issue is the fact that the U.K. constitution is not a single document as in other countries, such as the United States. Instead, it is a collection of laws and precedents established over centuries, leaving gray areas that need to be decided by the courts.

Regardless of how the High Court rules, the Supreme Court has cleared a place on its calendar in December to hear an appeal.

David Allen Green, a senior consultant at the law firm of Preiskel & Co., said the litigation may be “the most important constitutional case of a generation,” due to the magnitude of the EU debate and because talented constitutional lawyers are involved on both sides.

“But its main importance is because it deals squarely with many legally unexplored areas at the very heart of constitutional law,” said Green, who isn’t involved in the lawsuit.

He said those areas include “the exact scope of executive power in regard to treaties, the impact of referendums, the proper roles of Parliament and the courts in such matters, the protection or removal of rights of UK and EU citizens, and the relationship of all of these with the devolved governments in Northern Ireland and Scotland.”

“It could be mind-blowing stuff,” he said.

Putin praises ‘stabilization’ of Russian economy MOSCOW (AP) — Russian President Vladimir Putin praised the “stabilization” of the Russian economy Wednesday but said more can be done to promote growth.

Russia’s economy contracted by 3.7 percent last year on the back of Western sanctions and a slump in the price of its oil exports.

It has stabilized somewhat since then thanks to a rebound in energy markets, but remains weak — the IMF predicts a contraction of 0.8 percent this year before growth of 1.1 percent in 2017.

Speaking to Russian and foreign business leaders in Moscow, Putin praised drops in inflation and capital outflows but said “the stabilization that has been achieved has not yet transformed into steady growth.”

Putin added that Russia still needs to increase labor productivity and limit government spending.

Earlier Wednesday, two leading ministers disagreed publicly on possible privatizations. Finance Minister Anton Siluanov saying only “modest plans” were in place for the period through 2019, while Economic Development Minister Alexei Ulyukaev said selling parts of government stakes in the VTB bank and the Russian Helicopters company was possible and would be attractive for investors.

The dispute comes days after the planned privatization of a majority government stake in oil producer Bashneft led to the government approving the sale to larger oil firm Rosneft, which is itself majority state-owned. The deal, worth over $5 billion, was defended Wednesday by Putin, who said that because Rosneft has minority foreign investors, it was not simply a transfer of assets from one part of the state to another.

Russian President Vladimir Putin gestures while speaking at the 8th annual VTB Capital “Russia Calling!” Investment Forum in in Moscow, Russia, yesterday.Russia’s economy has been on its way down since it slipped into recession at the start of last year. (AP Photo/Ivan Sekretarev)

THE TRIBUNE

Thursday, October 13, 2016, PAGE 9

US reserves right to punish China firms working with N Korea WASHINGTON (AP) — The United States reserves the right to punish Chinese companies that violate U.N. sanctions on North Korea if Chinese authorities don’t take action, a senior U.S. official said Wednesday.

Top U.S. diplomat for East Asia, Daniel Russel, said that since most of North Korea’s illegal activities are conducted through neighboring China, companies are “going to have to tighten up and shut down operations.” The U.S. is looking to cooperate with international partners in cutting revenue sources for the North’s nuclear and missile programs.

North Korea has conducted two nuclear test explosions and more than 20 missile launches this year, intensifying concern that it is closer to having a nuclear-tipped missile that could reach America.

The Justice Department

last month unsealed criminal charges against a Chinabased company, Dandong Hongxiang Industrial Development Company, and four of its executives for conspiring to evade sanctions, and the Treasury Department barred them from business dealings with the U.S. Chinese authorities have also said they were investigating Hongxiang on suspicion of unspecified “serious economic crimes.”

“To the extent that the Chinese authorities themselves take action against North Korea malefactors or Chinese companies that are collaborating with North Korea then there’s no cause for action by the United States or others,” Russel told reporters.

“Where they don’t take action, the United States reserves the right under U.N. Security Council resolution 2270 or under our own national authorities to take

action,” he said, referring to the most recent sanctions resolution against North Korea, adopted in March.

Russel said while there’s “frustration and differences of view” between Washington and Beijing, they do cooperate on North Korea. The U.S. is constantly “scanning the horizon” for evidence of sanctions violations and makes a point of sharing with China first any information they have about “bad actors” there, he said.

China is the North’s traditional ally and main trading partner. The U.S. is currently pushing for tighter U.N. sanctions that would impose additional restrictions on North Korea’s exports of coal that account for about one-third of its export income and mostly go to China.

A succession of U.N. sanctions resolutions and U.S. sanctions have failed

Assistant Secretary of State for East Asian and Pacific Affairs Daniel Russel meets with reporters after the meeting with South Korean senior officials at the Foreign Ministry in Seoul, South Korea. Russel said that Washington reserves the right to punish Chinese companies that violate U.N. sanctions on North Korea if Chinese authorities don’t take action. (AP Photo) to stop North Korea’s weapons development and to force it to return to negotiations on giving up its nuclear program in exchange for aid. The North argues that it needs nuclear weapons to deter a U.S. invasion. Russel called that “absurd.”

He argued that the nu-

clear program has only diminished the security of North Korea and its dictatorial leader Kim Jong Un and hurt its diplomatic and economic standing.

“Put yourself in Kim Jong Un’s place. That is not a good place to be. Perhaps he’s got an enhanced capac-

ity to conduct a nuclear attack and then immediately die. But that can’t be plan A,” Russel said.

The U.S. retains 28,000 troops in South Korea, a legacy of the 1950-53 Korean War which ended without a formal peace treaty.

Federal Minister of Economics Sigmar Gabriel waits for the start of the trials regarding the emergency appeal against the trade agreement CETA in Karlsruhe, Germany, yesterday. (Uli Deck/dpa via AP)

Top German court hears Canada trade deal injunction calls BERLIN (AP) — Germany’s highest court heard calls Wednesday from opponents of a European Union-Canada trade deal for an injunction aimed at putting the signing of the accord on ice. The country’s vice chancellor warned that the consequences could be serious.

The Federal Constitutional Court held a hearing on four complaints against the trade deal with Canada, known as CETA. Tens of thousands of citizens joined in two of those complaints.

A ruling is expected on Thursday.

The plaintiffs want the government to be forced to vote against approving the accord at an EU meeting Oct. 18 pending full consideration by the court of their contention that it violates the principles of democracy.

Current plans call for CETA to be signed at the end of this month and for much of it to take effect on a provisional basis.

Its opponents are deeply suspicious of a proposed trade deal — the TransAtlantic Trade and Investment Partnership, or TTIP — with the United States, which is still being negotiated, and view CETA as a blueprint for that accord.

Vice Chancellor Sigmar Gabriel, who is also Germany’s economy minister, told the court that putting off CETA’s signing could effectively torpedo the accord, news agency dpa reported.

“I don’t want to imagine

what that could mean for Europe,” he added, arguing that the rest of the world would no longer have any confidence in Germany’s and the EU’s ability to stick to deals.

Gabriel has swung his

center-left party, the junior partner in Chancellor Angela Merkel’s governing coalition, behind CETA but has argued that negotiations on the proposed U.S. deal have effectively failed.

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PAGE 10 , Thursday, October 13, 2016

SEOUL, South Korea (AP) — The fiasco of Samsung’s fire-prone Galaxy Note 7 smartphones — and its stumbling response to the problem — has left consumers from Shanghai to New York reconsidering how they feel about the South Korean tech giant and its products.

Samsung Electronics said this week that it would stop making the Note 7 for good, after first recalling some devices and then recalling their replacements , too.

Now, like the makers of Tylenol, Ford Pintos and other products that faced crises in the past, it must try to restore its relationship with customers as it repairs damage to its brand.

Samsung shares plunged as much as 8 percent in Seoul, their biggest one-day drop since the 2008 financial crisis, after the company apologized for halting sales of the Note 7 .

“I’m in a state of ‘I don’t know,’” said Pamela Gill, a 51-year-old who works at Pratt Institute, a college in New York City, and likes her replacement Note 7.

“You’re thinking, ‘Do I have to turn it in? Is it going to blow up?’” she said.

A BRIEF HISTORY OF FIRE Samsung, South Korea’s biggest company by far, announced a global recall of the devices last month. It said a subtle manufacturing error in the batteries made the phones prone to catch fire. It offered to replace the devices.

But South Korea’s safety agency says a new, still unidentified problem with the

Note 7 fiasco leaves Samsung’s smartphone brand in question Workers clean a window at Samsung Electronics shop in Seoul, South Korea, yesterday. The fiasco of Samsung’s fire-prone Galaxy Note 7 smartphones and Samsung’s stumbling response to the problem - has left consumers from Shanghai to New York reconsidering how they feel about the South Korean tech giant and its products.

(AP Photos)

replacement devices makes them also likely to overheat.

Some consumers blame Samsung for not dealing decisively with the issue. Hahm Young-kyu, a 43-year-old South Korean office worker in Seoul whose wife is still using the Note 7, exclaims in frustration that the manufacturer tried to “cover up” the Note 7’s failings.

Samsung’s initial recall had a rocky start. After the first reports of overheating devices, it offered replacements, but not refunds. It waited a week before advising consumers to stop using the affected devices.

And critics complained that

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some retailers didn’t have up-to-date information until Samsung made a coordinated announcement with the U.S. Consumer Product Safety Commission.

“Ultimately they did the right thing, which was to announce a full recall,” said Jan Dawson, a tech industry analyst with Jackdaw Research. But when the replacement devices ran into trouble too, he added: “That all goes out the window.

Samsung’s claims about fixing the problem are no longer reliable.

“Now they’ve got to demonstrate why potential buyers shouldn’t worry about future Samsung devices,” Dawson said.

As one of the world’s largest tech conglomerates, Samsung can afford to discontinue the Note 7, which was not its biggest-selling phone. While the cost of recalling devices and halting production will be enormous, it makes far more than that every quarter on sales of components for smartphones and computers.

But analysts say the new, unexplained Note 7 problems will still inevitably hurt.

On Wednesday, the company slashed its forecast for third-quarter profit to 5.2 trillion won ($4.6 billion), down from the 7.8 trillion won estimate it released Friday. If Samsung’s full financial results due later this month are in line with that forecast, Samsung will log its lowest quarterly profit in two years.

MYSTERY DEFECTS A screen shows an internal design drawings of Samsung Electronics Galaxy S7 smartphone at its shop in Seoul, South Korea, yesterday.

“A company’s brand is their promise to consumers,” said John Jacobs, an expert on reputation and crisis communications at Georgetown University. “If you break that promise, you lose the customers, you lose their loyalty.”

Initially, the Note 7 got glowing reviews for its size, features and big battery capacity. Now the company is struggling to figure out what exactly is wrong.

“They have to comprehensively check everything from the very basics, outside the battery and inside the phone,” said Park Chul Wan, a former director of the next generation battery research center at the state-owned Korea Electronics Technology Institute.

Park has long argued that Note 7’s problems appeared to be more than a simple battery defect. “This is a truly difficult problem. It was Samsung’s mistake to have underestimated it,” he said.

South Korean safety regulators says they are examining components other than the batteries to try to puzzle out why even the replacement phones Samsung made using different batteries are so fire prone.

“The improved product does not have the same defect. That’s why we think there is a new defect,” said Oh Yu-cheon, a senior official at the Korean Agency for Technology and Standards.

BREATHING ROOM Samsung needs to win back consumers’ trust by the time it launches its next high-end phone, the Galaxy S8, likely early next year, Dawson said. “They have that time to come up with a convincing story and a set of actions that will reassure customers that when they buy an S8, it’s going to be safe.”

Kim Young Woo, a tech analyst at SK Securities, believes Samsung could accelerate the launch of the S8 to make up for abandoning the Note 7, but it cannot afford to start from scratch, and it has to find the cause of the overheating.

The Note 7 has cuttingedge features like an electronic stylus and an irisscanning security feature seemingly suited for a James Bond movie. “Samsung’s best, latest technologies are all in the Note 7,” Park said.

“If it releases the next phone, it has to use the technologies in the Note 7.”

The company is the most popular maker of Android phones and the world’s leading smartphone maker, selling over 77 million phones in the second quarter of 2016.

But in the prized U.S. market, it lags behind Apple, whose iPhone models are more popular, according to International Data Corp.

THE TRIBUNE

Thursday, October 13, 2016, PAGE 11

UK lawmakers press government for vote on Brexit talks LONDON (AP) — British lawmakers pressured the Conservative government Wednesday to give Parliament a vote on the negotiating terms for the U.K.’s exit from the European Union, as uncertainty about what kind of deal the U.K. is seeking with the EU rattles business leaders and currency markets.

Government ministers, however, insisted it would not be wise to give too much away while Britain’s stance is still being worked out.

The opposition Labour Party forced a parliamentary debate and vote on a motion calling for lawmakers “properly to scrutinize” Britain’s position.

Labour Brexit spokesman Keir Starmer agreed that Britons had voted June 23 to quit the 28-nation bloc,

but said there was no consensus on the terms.

“That question was not on the ballot paper,” Starmer said.

“It’s frankly astonishing that the government proposes to devise the negotiating terms of our exit from the EU, then to negotiate and then to reach a deal without a vote in this House,” he added.

Prime Minister Theresa May has said she will invoke Article 50 of the EU treaty — triggering two years of official exit talks — by March 31, but has declined to reveal details of Britain’s negotiating hand.

Opposition lawmakers — and some from May’s own Conservative Party — say Parliament should be given a role in approving Britain’s terms. They worry the government has

decided to seek a “hard Brexit,” which means leaving the bloc’s single market of 500 million consumers in order to exercise more control over immigration.

Signs that Britain may be headed for a “hard Brexit” have alarmed some business leaders and contributed to a slide in the pound, which has lost almost a fifth of its value against the dollar since June 23.

The pound sank even further Wednesday, losing another 0.8 percent to reach 1.217 to the dollar before recovering some of the lost ground.

The government insists a vote in Parliament is not required before Article 50 is triggered.

But the issue has split the Conservatives, and Tory lawmakers loudly heckled one another during the six-

Britain’s Prime Minister Theresa May leaves 10 Downing Street for the House of Commons for her weekly Prime Minister’s Questions, in London, yesterday. (AP Photo)

hour debate.

In a bid to head off a Conservative revolt, May promised that lawmakers would get a say, as long as it “does not undermine the negotiating position of the government.”

Starmer welcomed May’s change of position, but said it was not enough.

He said ministers had to “show that they actually have a coherent plan, agreed across the govern-

ment, before they embark on the Article 50 process.”

Brexit Secretary David Davis told lawmakers the government was still “putting together our negotiating strategy” and could not reveal too much.

“We’ve had people talking about ‘hard’ Brexit and ‘soft’ Brexit, which means very little,” he said. “We have not started the negotiation with the European Union yet and there is a

whole spectrum (of outcomes) from a free trade area to a customs union to the single-market arrangement.”

The government’s amendment promising lawmakers a voice, if not a vote, on Brexit terms helped secure support for Labour’s motion, which passed unopposed. It is not binding on the government.

US job openings fall to lowest level in eight months WASHINGTON (AP) — U.S. employers posted the fewest jobs in eight months in August, a sign job gains will likely remain modest in the coming months.

The Labor Department said Wednesday job openings dropped nearly 7 percent to 5.4 million, down from 5.8 million in July. That month’s total had been a record, but was revised lower.

The data adds to recent evidence that hiring may be slowing a bit from the robust pace of the previous two years. Yet the economy is still generating enough jobs to lower the unemployment rate over time. And most economists have expected job gains to taper as the number of unemployed has dwindled.

The biggest declines in job openings occurred in professional and business services, which includes accountants and engineers as well as temp workers, and manufacturing.

The number of people who quit their jobs remained mostly un-

a “Now Hiring” sign hangs in the window of a Dollar General store in Methuen, Mass. Yesterday, the Labor Department reports on job openings and labor turnover for August.

(AP Photo)

changed at nearly 3 million. That’s up 4.4 percent in the past year, though the total has flattened in recent months. Quitting is a sign that Americans are more optimistic about the job market and their chances of finding work.

It also can push up wages, as people are more likely to quit for a new job at higher pay.

Layoffs declined slightly and remained near pre-recession lows.

Many employers say they are having trouble finding the new employ-

ees they need, which suggests they are more likely to hold onto their current staffers.

“Nearly two-thirds of job separations are people voluntarily quitting rather than getting laid off or fired,” Jed Kolko, chief economist

at job site Indeed. “That’s a good indicator that workers are confident they’ll find new jobs.”

The figures come after last Friday’s jobs report, which showed that employers added just 156,000 jobs in September, while the unemployment rate ticked up to 5 percent. Job growth has averaged a solid 178,000 a month this year, but that is down from about 230,000 last year.

Wednesday’s report, known as the Job Openings and Labor Turnover survey, or JOLTS, provides a more detailed reading of the job market than the Friday employment numbers.

The JOLTS shows that total hiring in August slipped less than 1 percent to 5.2 million. That hiring figure is a gross total. Friday’s jobs report calculates a net total of gains after subtracting those who quit, retired or were laid off. Gross hiring was 3 percent higher in August compared with a year ago.

PAGE 12 , Thursday, October 13, 2016

THE TRIBUNE

US stocks edge higher as investors buy big dividend payers NEW YORK (AP) — U.S. stocks finished slightly higher on Wednesday as investors picked stocks that pay big dividends, like real estate and phone companies. Energy companies fell with the price of oil and health care stocks continued to slide.

Stocks barely budged for most of the day. The top gains went to the biggest dividend-payers, which are seen as relatively safe investments. The price of oil, which reached a 15-month high on Monday, inched lower for the second day in a row. Health care stocks continued to lose ground after health insurer Humana said its bonus payments from Medicare could be reduced.

Investors opted for safety a day after some weak earnings reports sent stocks sharply lower.

“People were worried that we’d continue to see investors shy away from what might be an erratic earnings season,” said Kate Warne, an investment strategist for Edward Jones. “It’s good

the New York Stock Exchange. Technology stocks led a broad reverse in global markets on Wednesday after Samsung downgraded its profit estimates and networks company Ericsson warned on its outlook. Investors will later look to the minutes of the U.S. Federal Reserve’s last meeting for hints on how quickly interest rates might be raised. (AP Photo) news that investors are a little more optimistic and looking forward.”

The Dow Jones industrial average edged up 15.54 points, or 0.1 percent, to 18,144.20. The Standard & Poor’s 500 index added 2.45 points, or 0.1 percent, to 2,139.18. The Nasdaq composite slipped 7.77 points, or 0.1 percent, to 5,239.02.

Investors bought big dividend payers like real estate investment trust and utilities. Those stocks are the worst performers on the market over the last three months. Early in the year those stocks soared as investors looked for safe picks while the market tumbled.

Real estate investment trust Crown Castle Inter-

national added $2.45, or 2.8 percent, to $91.45 and American Tower Corp. picked up $2.60, or 2.4 percent, to $111.54. Verizon led phone companies higher with a gain of 40 cents, or 0.8 percent, to $50.30 and utility WEC Energy gained 83 cents, or 1.5 percent, to $57.42.

Stanley Black & Decker agreed to buy the tools business of consumer products maker Newell Brands for $1.95 billion. The deal will give Stanley Black & Decker brands including Irwin and Lennox and will help Newell Brands simplify its business after its purchases of Jarden and Elmer’s within the last year. Stanley Black & Decker gained $3.39, or 2.9 percent, to $121.05 and Newell Brands rose $1.08, or 2.1 percent, to $51.42.

Health insurer Humana said its plans received lower ratings from the Centers for Medicare and Medicaid Services, and weaker ratings could reduce the bonus payments the company gets from the government.

For 2018, the company said 37 percent of its members are in plans rated 4 stars or higher, That’s down from 78 percent a year ago. The stock fell $9.09, or 5.1 percent, to $168.44 Other health care companies including drugmakers Allergan, Biogen and Endo also fell, as did health insurer Cigna and genetics research company Illumina.

Companies that make and sell household necessities joined in the gains. Supermarket Kroger jumped $1.08, or 3.6 percent, to $31.19 and CVS Health rose $1.07, or 1.2 percent, to $87.47.

Wireless equipment maker LM Ericsson plunged after it forecast disappointing quarterly results and said it doesn’t expect improvement any time soon. Its stock lost $1.46, or 20.8 percent, to $5.54. Also struggling were Cisco Systems, which lost 70 cents, or 2.3 percent, to $30.34 while Juniper Networks gave up 46 cents, or 1.9 percent, to $23.48.

Benchmark U.S. crude oil

slid 61 cents, or 1.2 percent, to close at $50.18 a barrel in New York. Brent crude, the international standard, fell 60 cents, or 1.1 percent, to close at $51.81 a barrel in London. That sent energy companies lower. Chevron lost 89 cents to $102.15 and National Oilwell Varco shed 88 cents, or 2.4 percent, to $36.08.

Bond prices fell. The yield on the 10-year Treasury note climbed to 1.77 percent from 1.76 percent.

While bond yields are low by historic standards, they’re currently at their highest levels since the beginning of June as investors grow more certain that the Federal Reserve will raise interest rates in the coming months.

Network security company Fortinet fell after it released disappointing thirdquarter estimates. The company said its customers are taking their time before buying, and its new sales organization struggled in North America. The stock shed $3.43, or 10.1 percent, to $30.66.

Hotline set up to help farmers affected by pipeline protests BISMARCK, N.D. (AP) — North Dakota’s Agriculture Department has set up a hotline to help farmers and ranchers south of the Bismarck-Mandan area who’ve been affected by protests against the Dakota Access oil pipeline.

Many producers need to finish seasonal work before winter sets in, and they’re having problems trying to find willing truck drivers and custom silage-chopping services, Agriculture Commissioner Doug Goehring said Wednesday.

“We are appealing to those who can provide these services to contact the hotline,” he said.

The protests have drawn thousands of people to the area where Texas-based Energy Transfer Partners is trying to wrap up construction

on the $3.8 billion, 1,200mile pipeline from North Dakota to Illinois. Opponents of the pipeline worry about potential impacts to drinking water on the Standing Rock Sioux reservation and further downstream, as well as destruction of cultural artifacts.

A protest camp spokesman says the notion that protesters are harassing farmers or farm workers is “not true.”

“We’ve had quite a few farmers and ranchers stop by the camp to show their support and thank us for taking a stand against Big Oil,” spokesman Cody Hall said.

Rancher Matthew Rebenitsch told The Associated Press earlier this month that many people are locking their doors and carrying guns. And Morton County

Sheriff Kyle Kirchmeier has said his office has received reports of people in rural areas being stopped on roads and intimidated, a claim Hall denied.

Goehring said the Farm/ Ranch Emergency Assistance Hotline (701-4258454) is aimed at helping producers and those looking for work to connect with one another. Department employees will answer calls weekdays from 8 a.m. to 5 p.m., and callers can leave messages on evenings and weekends.

Goehring also said the Morton County Sheriff’s Department will work to “assist in providing safe passage” to farmers who need it in the course of their fall work.

The protest also has drawn concern from teachers who

Excavators are in place as work resumed yesterday, on the four-state Dakota Access pipeline near St. Anthony, N.D. A federal appeals court ruling on Sunday cleared the way for work to resume on private land in North Dakota that’s near a camp where thousands of protesters supporting tribal rights have gathered for months. (AP Photo) work in nearby St. Anthony.

Barry Chathams, director of the Burleigh County Special Education unit in Bismarck, said Wednesday in a letter to state Superintendent Kirsten Baesler that one of his workers was shadowed by someone in a pickup truck for 15

minutes as she tried to drive to work.

“If harassed on the way to St. Anthony, they are instructed to return to the central office,” Chathams wrote.

Standing Rock Sioux Tribal Chairman David Archambault II issued a state-

ment Wednesday calling for President Barack Obama to take action against the pipeline, but Archambault wasn’t specific. The chairman said Obama has the power “to change the fate” of 17 million people who stand to lose clean water.

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