10252021 BUSINESS

business@tribunemedia.net

MONDAY, OCTOBER 25, 2021

$5.10

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Gov’t $90m ahead of revenue target

Avoid furlough end ‘double whammy’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

• Union: Up to 45% of hotel staff still home

THE Government beat its 2021-2022 first quarter revenue targets by $90m, a top official has revealed, while also disclosing that the Government’s revised Budget will not increase the deficit.

Simon Wilson, the Ministry of Finance’s financial secretary, told Tribune Business that the Government’s lenders, creditors and the capital markets generally have all been informed that the supplemental Budget due to be presented to Parliament - possibly as early as this Wednesday - will not grow the deficit beyond

• Top official: Revised Budget won’t raise deficit • $700m sovereign bond delayed on US turmoil • Top official denies local conditions played part the originally projected $951.8m.

And he also disclosed that the Government’s “underwriters” have advised it to delay placing the $700m foreign currency bond that the former Minnis administration had designed as the centrepiece of its gross

$1.852bn borrowing plan for the current fiscal year.

No revised timeline for when it will be placed was given, but Mr Wilson said the advice to delay stemmed from international capital market uncertainties over US debt ceiling negotiations rather than any concerns peculiar

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

SIMON WILSON to The Bahamas or its economic performance.

And, while the delay will cause the Government to reshuffle its borrowing plans, he added that there is no danger it will run short of funds as it will simply bring Bahamian dollar-denominated

SEE PAGE 6

‘Practice what you preach’ call over climate change

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net ENVIRONMENTAL activists yesterday warned The Bahamas must “practice what it preaches” to secure financial assistance at an upcoming global summit to help minimise climate change impacts.

Sam Duncombe, reEarth’s president, told Tribune Business this nation “cannot have it both ways” by demanding funding from developed nations to assist with Hurricane Dorian rebuilding when it was guilty of similar practices blamed for contributing to global warming.

SAM DUNCOMBE While The Bahamas was correct to point the finger at major industrialised nations for the greenhouse

SEE PAGE 6

Fisheries backs Gov’t for ‘small detail’ focus

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Government was yesterday praised for focusing on “the small details” that could greatly improve the ease of doing business for Bahamian commercial fishermen.

Paul Maillis, the National Fisheries Association (NFA) director, told Tribune Business the Davis administration could make conducting commerce much easier for industry participants by altering the date on which their duty-free permits expire and ensuring that all agencies - especially

Customs - apply equal treatment to its holders.

Speaking after Clay Sweeting, minister of agriculture, marine resources and Family Island affairs, pledged to reduce the bureaucracy and red tape facing Bahamian fishermen, Mr Maillis said: “It would be extremely helpful to fishermen. There are small details that need to be fixed.

“The duty-free permit, for example, expires on July 31, which means that fishermen trying to be focused on the opening of the lobster season, which is August 1, they have to worry about

SEE PAGE 11

THE Grand Bahama Chamber of Commerce’s president has warned that the furlough period’s end must be “well thought-out” to avoid inflicting a “double whammy” on workers and businesses.

Greg Laroda told Tribune Business the Chamber and its members have begun internal discussions on potential alternatives to alleviate “hardship” for both employer and employee, after the Government last week signalled that the COVID-19 emergency orders will end on November 12 and not be renewed.

This will trigger, some 30 days later, an end to the

DARRIN WOODS furlough period for workers sent home by their employers due to COVID-19. The Employment Act provision, requiring employers to either recall or pay termination packages to workers some 90 days (13 weeks)

SEE PAGE 7

PAGE 2, Monday, October 25, 2021

THE TRIBUNE

BAHAMAS REQUIRES OPEN RECKONING ON CHALLENGES T

he economic recovery for The Bahamas must be urgent, broad-based, strategic and focused on multiple areas at the same time. Every effort must take on a holistic approach, designed to secure fundamental and sustainable fixes for the issues that have plagued the country for decades, and create economic growth but not just for the initial recovery.

Anything that is otherwise will be detrimental to the long-term well-being of the nation. In this piece, I look at some select areas of the recent Speech from the Throne.

The speech brought to life the pronouncements of the PLP’s manifesto, transforming the essential points into policies and plans upon which the administration will legislate. Effectively, therefore, the Blueprint for Change has now transformed into the fiscal, social, economic, health and other policy positions by which the country will be directed over the next five years. This, for me, is the essential foundation of the speech. It clearly delineates the administration’s thinking about the current crises and the management thereof to this point. It creates a clear demarcation of

Herbert Edwards what success represents in the minds of Bahamians, and delineates the path to economic recovery and resolution of the health crisis. No one should therefore be unclear as to what the thinking is. This path, though clearly stated, must obviously confront the pressures brought on by the existing narrow revenue space, heightened expenditure demand, the friction of a high and increasing deficit, and the uncertainly caused by a historic level of debt.

It is through this lens that accurate and objective assessments of government policy must be done. As an example, the plan to reduce

VAT by two percentage points will affect revenue, impact the deficit and, while beneficial to individuals and businesses, it will ultimately hold influence over the decision to borrow and the continued view of the country’s debt status.

The administration, in the Speech from The Throne, indicates its full commitment to this. While there are expected benefits from the spin-off of increased buying power, positive impact on the velocity of money, and potential buoyancy in the economy, given that it will only last for one year, it remains a very delicate decision. I do not argue against the implementation; after all, there is no question that citizens can use the relief. The need for the measure as stated in the speech is “to fix a trail of unprecedented misery and bring immediate relief to businesses and persons”.

However, like other plans, which are yet to be fleshed out, there will be trade-offs and the effect on the overall state of the country’s finances cannot be ignored. One of the most humbling questions the administration will be faced with is how do we solve for the short-term, inclusive of delivering campaign promises, without imperiling

long-term well-being. As I have written before there is no painless resolution to the state The Bahamas finds itself in. Clearly, an important decision will be how to lessen that pain, but even more fundamental is: “Do we take the hurt now and solve the problems, or defer it with the risk of greater and more debilitating pain later?”

The first set of priorities stated in the speech focused on healthcare. This includes the management of future emergencies without the need for Emergency Orders, and what will be significant investments in infrastructure. This is one area where creativity must come to bear. The stated use of public-private partnerships (PPPs) is certainly the right way to go. However, given the depth of the health sector needs, likely much more significant than highlighted so far, funding and the attendant implications will be far-reaching.

One of the very first utterances of the minister of health is that there was a need for funding. The question that comes to mind is whether this is funding beyond that which has already been allocated. A careful analysis will show that the current budget is not aligned with the plans of the new administration. In fact, it would not be a stretch to say there is significant incongruence.

Ultimately, many of the plans of the current administration will turn on this and, as a result, we will now see a supplemental Budget.

One can argue that, taking into account the totality of the crisis, the speech could have been more clinical when addressing the resolution of the economic crisis. Overall, the directional thinking, in my opinion, is good. The efficacy will be evidenced when the details are presented. The rescue will naturally focus on regaining the $2bn in GDP lost over the last two years, and consequently there must be pinpoint strategies directed at the tourism industry that go well beyond the normal return of numbers to preCOVID levels.

Stated plans to seek diversification within this sector should go into full effect early to create momentum and time for maturation.

The coupling of tourism and Investment portfolios by the current administration holds great strategic value. One strategy that I believe must be employed is implementing programmes and initiatives that will retin a larger share of the tourist dollar in The Bahamas. It is often loosely said that 80 cents of each tourist dollar goes back out of the country. Setting a target of increasing the retention is a viable strategy that could work wonders, in my view.

Without any additional growth, success in this direction could pay great dividends by boosting allied sectors and buoying the efforts of domestic investors with the spillover effect of bolstering the public coffers. This must also necessarily direct attention to Abaco and Grand Bahama.

While we hope and pray for the return of tourism, we must not forget the productive capacity that was laid waste by Hurricane Dorian in these two islands. Failing to recapture, reengage and enhance this capacity will render the walk to true recovery sub-optimal with resiliency remaining elusive.

Restoring argues for normalcy, and what was. An important step on the path to the future, it is necessary but not sufficient. Our performance pre-COVID already had the country on a troublesome path to an uncertain future.

Restoration therefore must be growth centric. It demands marked increases in employment, especially in the youth category.

Restoration will require a sustainable increase in government revenue. This can be the result of growth, but if growth remains elusive then government may be forced to consider increased taxes. The restoration will necessarily see heavy focus on the social sector. The last 18 months have demonstrated the importance of having a secure safety net.

It has also provided clear insights into the vulnerabilities and weaknesses present in the current regime, which must be fixed.

Strengthening the economy will demand growth-centric moves and strategies. Given the critical mass of debt, perennial deficit spending, recent high deficits and a downgrade, the only truly sustainable path involves growth. Growth, however, will not come easily especially in the current global economic environment.

Addressing the facilitative infrastructure early is therefore crucial. Deep reforms are needed within the public sector to address issues highlighted in the 2018 IDB report, Building State Capacity in the Caribbean: The State of the Civil Service in The Bahamas, where the civil service scored worryingly low ratings in areas such as functional capacity and management capabilities. As uncomfortable as it will be, reforms in the area of taxation are inevitable and delays in doing so are simply “postponing the inevitable”.

To strengthen the economy, a settled position on taxation affecting the financial sector is needed in addition to addressing the sufficiency of government revenue. Committing to addressing the significant infrastructure needs of the country, page two of the speech states that the government “will pursue measures to stabilise public finances and increase public revenue”. What will be the sources of the increased revenue? Will new revenue be derived from new industries, integration or growth of existing ones? Will it come from taxes or as a result of investments (foreign and local)? As stated above, is there the possibility of leveraging existing sectors to create greater expansion, especially in domestic commerce, that leads to increased public revenue? Having regard for the latter question, I believe it was unfortunate that a broader position was not taken in the speech as it relates to agriculture. The statement of “achieving greater food security and reducing reliance in imports as a matter or priority” is a nod in the right direction, but I believe it requires a broader strategic signalling.

In my opinion, agriculture is the single greatest opportunity the country has for diversification, foreign exchange earnings and for gleaning greater domestic benefits from the tourism sector.

The speech highlighted other commitments for reforms, all necessary for the strengthening desired, in the areas of accountability

and transparency, fiscal responsibility, public financial management and procurement. It is my view that there are ripe opportunities for governance reforms or adjustments in practice as it relates to the operation and interaction of the legislature and executive. If the reforms stated above are to have the truest impact possible, efforts to maintain the balance of power in the legislature must draw careful and precise attention. The system of parliamentary committees must work effectively, and the voice of the opposition must be given heightened importance.

As I made my way through the speech there are some points which I think must be drawn together to have a proper appreciation of the potential impact of what is laid out. The first is the reduction of VAT. Against this backdrop, there must be consideration of the increase in minimum wage and questions as to what a livable wage represents.

The increase in pension is an important aspect with both social and financial significance. Tax incentives and concessions for domestic investors, incentives under the Hotel Encouragement Act and for small and medium-sized enterprises.

These are spread throughout the speech but are some of the most important declarations with revenue relevance. They demonstrate the extensiveness of the thinking, and point to the complexity that implementation will require.

Except for the reduction in VAT, I would not argue against these measures in any way. I would only state, without any risk of an overstatement, that it is critical that implementation result in greater facilitation and does not in any way create adverse pressures for the current levels of revenue government takes in, or cause disruption to the private sector as it seeks to recover from the ravages of the twin crises.

In the final analysis there is no greater challenge facing the country than the extent to which there is an effective “debt management plan to address the historic debt burden and deficit”. In a real way, everything economic is a derivative of this, and the effectiveness of plan, initiative, strategy or programme impacts the veracity of this proposed debt management plan. Without belaboring the point, the reduction of VAT will increase the deficit and potentially the debt. The call for infrastructure works, regardless of PPPs, will demand additional debt. Failing to secure economic growth and properly manage public finances will exert pressure on any plan put in place through the actions of rating agencies. The outcome of a remedial plan itself holds implication for the productive capacity of government earnings considering currently upward of 18 percent of expenditure goes to pay interest on debt. So what will the plan entail? Will we be in a position to pay the $3.7bn in debt as it becomes due over the next few years?

Will the strategy employed include proactive restructures designed to reduce costs, make payments more manageable, secure debt forgiveness where available, and implement a robust debt redemption

SEE PAGE 8

THE TRIBUNE

Monday, October 25, 2021, PAGE 3

FARM SLAMS 29-YEAR WAIT FOR CROWN GRANT

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net AN Abaco farmer has slammed multiple administrations for “unkept promises” when it comes to providing a Crown Land grant for property they have spent more than 29 years developing.

Daphne de Gregory-Miaoulis, Abaco Neem’s chief operating officer, told Tribune Business she was “tired of the lip service” over whether the Government will provide security for the company’s investment

despite being told repeatedly a grant would be forthcoming.

She said: “We applied for the land under the first term of the Ingraham administration, then under Mr Christie, then under Dr Minnis. Prime Minister Minnis promised it would be granted to us and Abaco Big Bird as well, and it never happened; he never delivered on his promise. This is the fourth administration and we are hopeful that, finally, it will be granted.

“Abaco Neem is a wellestablished company and our products are sold throughout the country and

internationally through our website. We are one of a few companies that grows our crop, harvests and produces certified organic health products and that exports around the world.”

Calling successive governments out on their empty promises, Ms de Gregory-Miaoulis added: “There is a lot of talk about the need for food security and opportunities for farmers, but without ownership of the land there is little incentive for young people to devote their lives and resources to land that they won’t eventually own.

“And, after 29 years, we have reached an age where

we need to have a succession plan to ensure the continuation of our farm and business.” Without security of tenure, Abaco Neem and other farms are unable to use their land as collateral to obtain debt financing and further grow their business.

This has been especially problematic for Abacobased farms that have been trying to rebuild ever since Hurricane Dorian struck the island in September 2019. Ms de Gregory-Miaoulis said: “Our main concern is being able to develop agrotourism, eco-tourism and a holistic retreat supported

by one of the most valuable medical trees, the Neem Tree. We have developed 120 acres.

“The opportunities are endless but without land tenure how can we achieve our goals? We have identified potential investors to help make this a one-ofits-kind health retreat for our country but not owning the land makes it impossible. We have been totally frustrated by administration after administration and unkept promises.”

She added: “If we weren’t proud Bahamians we would have left the country and taken advantage of several opportunities offered from

Panama to Paraguay, where we participate in a plantation where, to-date, we have planted over 200,000 of our neem seeds.

“The opportunities are endless but it is time for our governments to stop just talking about the importance of agriculture and start supporting in a real tangible way. We have dedicated over 29 hard years, and weathered many storms and challenges. We have picked ourselves up each time, we have invested every penny that we have earned on this land, so I ask you: Are we not deserving of owning this land?”

KEITH DAVIES

DAVID SLATTER

INVESTORS WARNED TO LOOK BEFORE LEAPING

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net THE Bahamas International Securities Exchange’s (BISX) chief executive is urging investors to conduct proper risk assessments before parting with their capital.

Keith Davies, warning that all investments come with some amount of risk, added that mitigating those dangers prior to taking up the opportunity - in effect, de-risking - were vital to avoiding loss later on.

“People talk about what’s a safe investment. I would say it is the amount of work you put in prior to making the investment,” he explained “You would say that property is safe, so I’m going to buy a piece of land.

Well, if your land is going to be flood prone and we have global warming, if that piece of land on the coast is going to drop in the ocean real soon, what’s the value of that?”

David Slatter, RF Bank & Trust’s vice-president of investment management, told the same webinar that many people “fail” to appreciate what it takes to maintain real estate. They believe a duplex or triplex is an ideal scenario for investment, but do not look at the potential risks involved in becoming a landlord.

“There’s a lot of maintenance that is required. When it comes to renting, there’s also the risk that your tenants don’t pay and it’s very difficult to get them out of your property. So that’s what we call a counterparty risk,” he added.

Investment is all about assessing risks, Mr Slatter said, adding: “If you’re 20 and you retire at 65, you still have 45 years of employment. That means you’ve got a 45-year investment window which means you can take more risk.

“So you have the ability to take risk because you’re young, and you have a lot of earning years ahead of you. If you’re getting close

to retirement and you need your retirement funds in five years, you’ve got five years to work with so you need to take less risk.”

Mr Slatter said persons coming close to retirement need to take less risk. He added that investments such as real estate have “liquidity risks”, and it is very difficult to sell property and turn it into cash quickly.

“When it comes to investing that’s one of the things we look at. We want to make sure that you’re investing in securities that can be converted to cash quickly and with minimal costs, especially as you get to retirement,” he said.

“As you get older you want to have those kinds of investments in bonds, preferred shares, or common shares that pay a good dividend.”

Mr Davies added: “I think it is vitally important that we spend time to increase financial literacy, your knowledge about investing, your knowledge about saving and your

DEALER SAYS ELECTRIC AUTOS KEY IN CLIMATE CHANGE FIGHT

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net ELECTRIC cars will be vital in the fight against climate change, a Bahamian auto dealer says, while aiding the push to generate 30 percent of the

country’s energy needs from renewables by 2030.

Pia Farmer, Easy Car Sales principal, said: “As our country aims for our energy mix to include 30 percent of renewable sources by 2030, we especially want to see our homes and businesses powered by the plentiful Bahamian

sun, each with a solar-ready electric car in the driveway.

That is the vision. That’s what we would like to do.

“If we do that; if we harness the power of this bountiful sun, and we use electric cars, it will make us more resilient to the

SEE PAGE NINE

knowledge about putting your money to work.

“So if you have five years left to work and you have no savings, and you have a number of things that you have commitments on, you’re going to have a problem.”

Warning that multiple Bahamian generations “mortgage their future” without thinking about retirement, Mr Davies said you have to carefully assess the risks involved with daily living and take advice about your finances at an early stage.

PAGE 4, Monday, October 25, 2021

THE ART OF THE DEAL – TRUMP’S RETURN

By CHRIS ILLING

W

HILE mainstream in the US, the vehicle of a SPAC also found its way into Europe in the beginning of 2021 and changed the IPO (initial public offering) landscape.

DraftKings, Nikola and Virgin Galactic are among the big names that have set up a Special Purpose Acquisition Company (SPAC) to raise capital and list stocks for public trading on an exchange.

SPACs are known as “blank check” companies because they go public as companies without any economic activity. A SPAC company raises money to partner with or buy into a private company in the future.

The idea of a “blank check company” has been around for some time. However, since the upheavals and the resulting uncertainty in the market during the coronavirus pandemic, the instrument has become increasingly popular.

SPACs are listed companies that intend to take over another company (or several companies) at some point.

A SPAC first goes through the mandatory steps of an IPO. Hiring an underwriting bank to structure the IPO, filing an S-1 document with the Securities and Exchange Commission (SEC), and starting a roadshow to drive demand for its securities.

SPAC executives are required to explain to

potential investors that the company will later use the raised capital to buy another business. SPACs often tout their management group’s experience (in running companies and/ or technical mergers and acquisitions) as part of their value proposition.

Because of their unusual structure, SPACs typically issue “stakes” instead of “shares” when they go public. The stakes are a mixture of common shares and options that entitle the holder to purchase additional shares.

After a SPAC has raised money on an IPO, the management group begins looking for suitable companies.

In the event that the target company is more expensive than the money raised from the IPO, the SPAC must team up with other investors to raise more capital or to turn to other sources of funding such as debt issuance.

If the merger or acquisition is agreed by both parties, the target company and the SPAC, the publicly traded SPAC essentially transforms into the acquired company and in many cases even takes on a new stock market ticker.

The management team will typically play an active role on the new company’s board of directors and help run the company as a publicly traded company.

The reasons for a company going public are varied and numerous. Despite their complexity, SPACs generally provide an easier way for companies to raise capital and get public.

From the perspective of a company trying to go public, the IPO roadshow can be sobering. Introducing the business model to countless investors across the country takes a lot of work. Stock pricing also depends heavily on how well the IPO roadshow goes, which means there is great uncertainty about how much capital the company can raise.

SPACs provide a single point of contact for a company to get the capital that it envisions. The company can count on stable, secure income without being subject to large price fluctuations.

Europe has lagged the US with just 12 SPAC IPOs worth $3.9bn from January to May 2021. The number of deals has tripled, while the volume raised by these transactions has multiplied almost eight times (from $496m across four SPACs in 2020 to $3.9bn across 12 SPACs in 2021) The glut of deals in North America has led to fears about a bubble, and has even prompted the US market regulator to step in and caution retail investors against celebrityendorsed cash shells.

The latest celebrity SPAC deal came from

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the ex-president, Donald Trump, himself. Since he got banned by most social media giants, he decided to launch Trump Media & Technology Group and “rival the liberal media consortium”.

Digital World Acquisition Corp, the SPAC that is taking former president Trump’s planned social media platform public, soared Friday following a massive rally in the previous session.

Trading in the stock was halted due to volatility multiple times in morning trading Friday.

The SPAC, which trades under the ticker DWAC on the Nasdaq, skyrocketed 216 percent before the latest trading halt. The stock surged more than 350 percent to close last Thursday at $35.54 in explosive trading volume and volatility.

Phunware, the advertising software start-up involved with Trump’s 2020 re-election campaign, jumped in unison with DWAC. The stock last traded up 1,099 percent to $16.82 per share Friday, bringing its week-to-date rally to nearly 1,700 percent.

Investors are enthusiastic but also see many red flags when it comes to Donald Trump and his history with bankruptcies. Make sure to keep a close eye on his latest deal.

THE TRIBUNE

Monday, October 25, 2021, PAGE 5

PAGE 6, Monday, October 25, 2021

THE TRIBUNE

GOV’T $90M AHEAD OF REVENUE TARGET

FROM PAGE ONE

financing planned for yearend forward.

“We had a very good first quarter in terms of revenue, so that has reduced our borrowing needs. On a cash basis, we did $90m above target,” Mr Wilson revealed to this newspaper.

As a result, borrowing for the 2021-2022 fiscal year will come down by “around a similar amount overall in the bigger scheme of things”.

The financial secretary did not mention whether the extra $90m will be used to reduce the projected $951.8m fiscal deficit, which measures by how much the Government’s spending exceeds revenue. Given The Bahamas’ track record, it may well be used to fund increased spending.

The Free National Movement (FNM), and members of the former Minnis government, will also likely seize on the $90m figure as further evidence that their post-COVID economic and fiscal recovery plans

were starting to bear fruit, and that the newly-elected Davis administration will now reap the benefits of its efforts.

The Prime Minister has indicated that he plans to present a supplemental Budget to Parliament so that spending allocations better align with the new administration’s priorities, and to ensure there is sufficient funding for the healthcare system’s continued fight against COVID-19.

Mr Davis has also argued that the 2021-2022 Budget was designed with the general election in mind, and that there are revenue line items with both under-estimates and over-estimates, although these have not been quantified or any explanation provided as to what this means.

Mr Wilson, though, indicated that the supplemental Budget will involve spending reallocations within the framework set by the Minnis administration, meaning there will

be no expansion of the deficit beyond the $951.8m approved by the last Parliament.

“We don’t expect it to alter,” he told Tribune Business. “That’s the message we’re telling investors: We will keep the deficit in line. Our view is that we will be able to put in the Government’s priorities without impacting the deficit. We know we can do it.”

Despite exceeding Budget revenue targets by $90m for the three months to end-September 2021, Mr Wilson said the Ministry of Finance was maintaining a conservative approach to its forecasting due to the uncertainties associated with COVID-19 even though the economy’s re-opening was likely to boost the Public Treasury’s income above predictions.

“What we expect is that as the economy continues to re-open, revenues will rise above forecast all things being equal,” he added.

“COVID-19 impacts, closures, those things impact

revenue. All things being equal, once the virus is under control revenues will continue to perform.

“But we’ve not baked into our projections anything more than the first quarter. Our projections do not reflect any increase in revenue beyond the first quarter....... We’ve factored in the advanced bookings seen from the Ministry of Tourism’s information. We expect a significant uptick in economic activity.

“It’s not a one-on-one line between advanced bookings, actual bookings and revenue. There’s a positive correlation, but we don’t know what that positive impact is as it trickles down.”

Mr Wilson, meanwhile, denied that domestic factors had delayed the placement of The Bahamas’ planned $700m foreign currency bond until possibly the New Year. This newspaper had been told by well-placed sources that Goldman Sachs, the Government’s advisers, had suggested a

delay until market sentiment towards The Bahamas improved.

They added that Christmas and New Year tourism data would also give potential investors a better read on the country’s postCOVID rebound, and state of the tourism industry and wider economy, thereby enabling The Bahamas to attract a lower interest rate (debt servicing costs) on the bond’s pricing.

Mr Wilson, though, said international factors were the primary drivers behind the advise received by the Government. He pointed, in particular, to ongoing US political uncertainties surrounding that country’s $29.8tr debt ceiling or government borrowing limit, with the risk of default set to loom again in December without agreement on Capitol Hill to raise it further.

Asserting that this was impacting bond prices for all countries, including The Bahamas, Mr Wilson said: “I think the best way to describe it is that the

underwriters believe this is not the time to go to the market. That’s what they see in terms of the general trends.

“Their view is that if you don’t have to go to the market, don’t go. They believe things will settle down..... It’s not to do with the domestic economy. They believe it’s not the best time. If you can afford delaying going to the market now, do it. We’re paying them big bucks, so we’ve got to listen to them.

We’ve just got to wait until the wise men say it’s time.”

Mr Wilson added that preparations for the $700m raise have been completed, but the delay will not impact the Government’s financing plans or leave it short of funding. He said Bahamian dollar financing would be brought forward from yearend, with the Government having recently gone out for $75m in bonds and another $394m in Treasury Bills. A significant portion of the latter will be rollovers.

‘PRACTICE WHAT YOU PREACH’ CALL OVER CLIMATE CHANGE FROM PAGE ONE gas emissions that are driving climate change and sea level rise, she argued that it needed to demonstrate it was committed to the same standards that it is demanding of others.

Calling for words to be turned into actions ahead of the United Nations’ (UN) COP26 climate summit in Glasgow later this months, Mrs Duncombe argued that The Bahamas needed to abandon any oil exploration and refining; steer away from cruise industry-led development; and reduce Bahamas Power & Light’s (BPL) reliance on fossil fuels via a renewable energy switch.

“It’s an opportunity for us to put a strong message forward,” she told this newspaper of COP26, “but in my opinion we cannot

go to these international forums and beg for money when we are doing the same thing ourselves.

“I find it enormously hypocritical for us to go to any global forum to ask for help and money when we are literally complicit in our own demise.” Mrs Duncombe argued that The Bahamas needed to seek “some sort of trade off for keeping oil in the ground”, and not permitting exploration in its waters, much as former environment minister, Romauld Ferreira, had suggested.

And she also suggested that The Bahamas pivot away from the multiple cruise industry investments that the Minnis administration had been promoting, such as Disney’s Lighthouse Point project; ITM/Royal Caribbean’s Grand Lucayan agreement; and Carnival’s

Grand Bahama private port, describing the sector as the “most highly-polluting tourism product we can offer”.

Also pointing to the highly-controversial Oban oil refinery project for Grand Bahama, which she hoped was “dead, although these things have a habit of coming back”, Mrs Duncombe also took issue with BPL’s plan to use liquefied natural gas (LNG) as a generation fuel for its Clifton Pier plant via its proposed deal with Shell North America.

Acknowledging that LNG was a cleaner fuel than the traditional fossilbased products employed

by BPL, she argued that “from extraction to exhaust it’s a major polluter. LNG stays in the atmosphere for 20 years. It’s a major green house gas, and has major

implications for climate change and sea level rise”.

Prime Minister Philip Davis will lead The Bahamas’ delegation to COP26, with a major focus on participating in talks to develop a financing mechanism that would be used to calculate compensation for countries such as this nation which has already been hit by climate change fall-out via Hurricane Dorian.

International media reports yesterday suggested that COP26 will seek to develop a financing plan to help poorer countries cope with climate change, although it is unclear whether The Bahamas would qualify because it is seen as a relatively developed country due to its high per capita income.

However, Mrs Duncombe argued: “We have

to practice what we preach.

You cannot go out there and ask for money to help you if you’re not helping yourself. I’m really hoping this administration gets it, and the people around them really help them to understand, the Prime Minister, that we are in crisis at the moment.

“We have to show the world that while we want their help we are committed as a country to moving beyond the situation we are in. That means a serious revamping of how we develop, what we develop, and the kind of development projects we take on.

“I get that we are very happy to point our fingers at the developed countries and say: ‘You are the reason why we are here’.

I totally accept and agree with that. But we are also part of the reason why we are there. You cannot have it both ways. You cannot go begging for money for something you are doing too,” Mrs Duncombe added.

“Money is the reason why we are here because it always trumps science and common sense. We know what we need to do, but if money trumps every single decision we’re doomed.

All we’re doing is kicking the can down the road and letting the next generation deal with the mess we left because we didn’t have the political and ethical fortitude to do the right thing.”

She was backed by Joe Darville, Save the Bays chairman, who said The Bahamas and world appeared to have made little progress since the first climate-related accords were agreed in Paris in 2015.

Calling on the Prime Minister to “cease that nonsense” about permitting oil drilling in Bahamian waters, Mr Darville added that this nation was “allowing a lot to happen in our air and seas” due to lack of enforcement and regulation.

“If we want to be able to get, as they’ve been begging, to get financial support from developed countries to deal with our problems, we need to demonstrate we are doing something to protect our environment from climate change, sea level rise and so forth,” he said, adding that The Bahamas would “look like a damn fool” if it was not doing what it is demanding of other nations.

LIQUIDATION SALE OF PARTS INVENTORY Detailed Parts Inventory listing can be found at

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MICHAEL JOHN SPENCE CHAPMAN LIQUIDATOR 8840 TERRENE CT., B102 BONITA SPRINGS FL 34135-9533

THE TRIBUNE

AVOID FURLOUGH END ‘DOUBLE WHAMMY’

FROM PAGE ONE

after they have been sent home, will thus take effect once again on December 13.

The furlough period was always intended to end eventually, given that some workers will by have been at home for nearly 21 months due to COVID-19 come mid-December. Its cessation will thus give such employees closure and certainty, knowing that they will now either be recalled or handed termination packages.

However, while many workers will doubtless welcome receiving full severance pay after a long struggle to survive, they may also struggle to find new jobs in a shrunken economy with high unemployment.

As for employers, many may struggle to finance the termination packages mandated by law, following the devastation inflicted on revenues, cash flow and profits

by COVID-19.

Noting the challenges facing both sides, Mr Laroda told this newspaper: “Businesses will now have to make a call as to what they do, and if that means letting people go they will have to come up with termination packages, which a lot of them do not have the funds for.

“Small businesses and a lot of medium-sized businesses will not be able to come up with the money for

GREG LARODA termination packages. My concern is that a lot of them will fold up and everybody will be left holding the bag.

We need to come up with an alternative to that, I agree.”

And, while workers may welcome being able to finally move on, the GB Chamber president said they, too, faced potential downsides. “They’d be out of a job,” he added. “And that’s to the extent the companies they work for are able to give them termination packages. They may have to wait for those, and that would be a double whammy.

“Certainly this is something that needs to be well thought-out. We don’t want to impose any additional hardship on companies, business, but equally we don’t want workers to feel the burden where they are terminated and can’t receive separation packages. Both sides will be impacted by it.”

Mr Laroda added that it “remains to be seen how

the Government is going to handle it”, although Clint Watson, the Prime Minister’s press secretary, last week said the new administration expected companies to follow the law and pay due severance to impacted workers once the furlough period ends.

He added that Mr Davis had reiterated this to “a major employer”, which he did not name, if it had to “move to the next stage” and issue termination packages. Mr Laroda said the GB Chamber had “started to discuss” alternatives to a hard furlough end internally, but had not gone into any details yet.

Once the process was completed, he added that a possible recommendation would be made to the Government on another way to address the matter.

“Sometimes you do things with the best of intentions, but you can do some harm in the cause of doing something good, and I hope the

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Government considers that part of it,” Mr Laroda added.

“Once we have a chance to discuss it more internally, and get an idea of what the Government plans to do, we can make a recommendation as to how we think it can be addressed.” Among the industries most likely to be impacted is the hotel and tourism sector, where its union president estimated that between 35 percent to 45 percent of workers remain on furlough.

Darrin Woods, the Bahamas Hotel, Catering and Allied Workers Union’s (BHCAWU) president, told Tribune Business he was “hoping for the best” when it came to the furlough period’s end - especially given the timing just before the Christmas holiday period, and start of the industry’s traditional peak winter season.

“What it means is that the employer then has to make a decision on whether to bring persons still on furlough back to work or give them severance packages,” he added. “There are some indications that things are turning around a little bit,

Monday, October 25, 2021, PAGE 7

and that may mean less persons will be affected.

“The thing was to get past September, October and the first part of November.

We will be starting to ramp up for Christmas, which will pretty much take us into the busy season for the hotel industry. It may offset it or reduce the numbers. It’s not going to eliminate it [terminations].

“It looks like there are 35 percent on the low end, and 45 percent on the high end, still out on furlough. It’s still a significant amount, and we’re trying our best to get those persons in. We’re trying to ascertain the exact numbers now.”

Robert Sands, the Bahamas Hotel and Tourism Association’s (BHTA) president, previously told this newspaper the resort industry was on pace to recover 85 percent of its pre-COVID volumes by 2021 year-end, and that it expected to be back to prepandemic business levels during the peak winter 2022 season.

Mr Woods, meanwhile, added that the hotel union was due to meet Ministry of Tourism officials

this week for a briefing on arrivals and bookings forecasts, adding: “We hope it translates into stopover room nights, which will give employees an opportunity to get back to work and be fully engaged. We’re just hoping for the best.”

While terminated workers will be entitled to a severance package, Mr Woods argued that they would be “back to square one” and having to compete for jobs amid mass unemployment and multiple persons vying for the same job.

“Most persons are asking for closure so that they know either way what is happening to them,” Mr Woods said.

He voiced optimism that the Davis administration would enforce the law to ensure terminated workers received their full severance package upfront, adding that the former government had “allowed some things” it should not.

The union chief said it was urging the hotels to select furloughed workers who were close to retirement or wanted to leave for termination packages, rather than younger staff who wanted to stay.

PAGE 8, Monday, October 25, 2021

THE TRIBUNE

BAHAMAS REQUIRES OPEN RECKONING ON CHALLENGES FROM PAGE TWO programme? When the debt management plan is considered how will the Government approach deficit spending in order to restrict loan growth? Will there be austerity measures to help curtail expenditure?

The issues faced by this administration are very

complex and complicated to solve. In my experience The Bahamas has demonstrated a desire to fix challenges without any appetite for the attendant investment of discomfort and pain.

The current circumstances are so perilous and intricately intertwined that the simple act of resolution in

PUBLIC NOTICE

one area will impose great adverse impacts in others.

Therefore, I anticipate a very clear and pointed discourse from the Prime Minister’s first address in the next sitting of the House of Assembly, primarily outlining where we are, where we are going, and a refining of promises that may not

align with realities. It is my sincere view that the bones of a robust legislative programme have been laid, but one that will require lots of fleshing out. Undoubtedly, the main determinant of what strategies and plans will be employed is the state of the country’s finances. More importantly,

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL

INTENT TO CHANGE NAME BY DEED POLL

The Public is hereby advised that I, RIMECKA KRISTINA DENISE SMITH of #7 Black Sun Avenue off Carmichael Road P.O. Box N-9637Nassau, The Bahamas, intend to change my name to RIMECKA KRISTINA DENISE BESAY. If there are any objections to this change of name by Deed Poll, you may write such objections to the Chief Passport Officer, P.O.Box N-742, Nassau, Bahamas no later than thirty (30) days after the date of publication of this notice.

The Public is hereby advised that I, WILLIAM STIRRUP of #7 Lane Maxwell Nassau, The Bahamas, intend to change my name to WILLIAM PRATT. If there are any objections to this change of name by Deed Poll, you may write such objections to the Chief Passport Officer, P.O.Box N-742, Nassau, Bahamas no later than thirty (30) days after the date of publication of this notice.

however, the ultimate success of The Bahamas, and the current administration, will demand precise adherence to the third statement in the speech from the Throne – “committed to work in partnership... with our local communities and,

most importantly, with the Bahamian people to address the challenges these crises pose”. To be effective this commitment must start with a full, open and honest “understanding” of exactly what the unvarnished challenges of the country are.

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THE TRIBUNE

Monday, October 25, 2021, PAGE 9

DEALER SAYS ELECTRIC AUTOS KEY IN CLIMATE CHANGE FIGHT FROM PAGE THREE

galloping effects of climate change, to which our archipelago is especially vulnerable.”

Ms Farmer, speaking at the launch of the BYD HAN sports vehicle, added: “This is the first time the

Han is being launched and presented internationally outside of China. And this is a big deal for us in The Bahamas. That means that we’re on the map.”

The launch event for the BYD HAN was live streamed to over 50

countries, and is the first time persons outside China are seeing the vehicle.

Easy Car Sales’ entry into the electric vehicle market helped The Bahamas in 2020 to enjoy the world’s eighth highest year-overyear increase in electric car

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sales, albeit starting from a low sales base, as it the dealership started outfitting Bahamas Power & Light (BPL) and others with the vehicles.

Ms Farmer said: “We at Easy Car realised that the world would inevitably move away from gas, move away from diesel and the combustion engine, and that we should start preparing for the revolution in

transportation taking place around the world.

“We began our search for a quality brand of electric vehicles to offer the Bahamian market. We found that BYD was far ahead of the competition in EV (electric vehicle) technology, battery technology, in style, in quality and in a range of models that we could offer the Bahamian public.”

Neva Zhang, sales manager for BYD for the Central American and Caribbean region, added: “We are only 26 years old as we started in 1995, and now we’ve grown up to be one of the pioneers in this revolution into the future. It has been a long journey, but we are happy that we are starting to get our dreams and the dreams of others.”

THE TRIBUNE

Monday, October 25, 2021, PAGE 11

FISHERIES BACKS GOV’T FOR ‘SMALL DETAIL’ FOCUS FROM PAGE ONE their duty-free permit expiring,” he explained. “The permit should expire at the end of the season (endMarch) or end of the year.

It should at least expire at the end of the season, not before it starts.”

The permit allows commercial fishermen to import key equipment and other items duty-free, rendering it an important tax incentive and concession for their businesses. However, Mr Maillis said many fishermen were encountering other bureaucratic impediments and obstacles to its use.

“A lot of fishermen are being told by various departments that they need a letter of approval from the Ministry of Finance before

they can use the duty-free card,” he explained. “What’s the point of the duty-free card if you have to go to the Ministry of Finance every time you want to use it?”

Mr Maillis added that Customs also needed to be aware of the duty-free permit’s existence and how it can be used. He revealed there have been “many times” he has tried to use it but officers are unaware that it exists and demand validation that he is entitled to use it.

The NFA director added that such problems could be solved by allowing fishermen to produce their commercial licences to prove they are qualified to use the duty-free card, rather than having to go back to the Ministry of

Finance for approval each time.

“We see varying opinions coming from varying government departments,” Mr Maillis said, adding that Customs’ approach was inconsistent. Officers who were aware of the duty-free permit allowed fishermen to go about their business, while others required that Ministry of Finance approvals be obtained.

Mr Sweeting, a commercial fisherman by profession, said a primary goal was to make interactions between the industry and Department of Fisheries smoother to boost the ease of doing business, with access to documentation a critical issue.

“In my own experience, I realised that was a major issue for fishermen – to get

access to permit applications and duty-free permits, and all of these things are small issues that we are looking at digitising to allow fishermen access to apply online, pay for the permit online, and be able to print it from whatever island they reside from,” he said.

“The Department of Marine Resources is larger than what most people think, and it’s not just permits and applications. It also deals with export of seafood and what companies are up to standard to export. And so we are looking at not just modernising, but enhancing the staff there to ensure that we put a renewed focus on the Department of Marine Resources.”

Mr Sweeting added that he is also seeking to

increase The Bahamas’ seafood exports as a means to diversify the economy and raise foreign exchange earnings. “We would like to see an increase in exports in sustainable products such as lobster and stone crab,” he said.

“We can look at products that we haven’t even focused on because the sea bed is very vast. There are a lot of products that we don’t even understand that we can export. So we also need to look at other products so that we can find ways to grow the industry and not just focus on crawfish and stone crab, but other products that fishermen are able to make money from.”

Mr Sweeting visited Tropic Seafood, one of The Bahamas’ largest seafood exporters, which recently announced it was harvesting American Red Snapper as part of its product offering.

It also harvests Spiny Lobster for export.

“When you look at what they want to do and varying into different prospect markets… I must commend them and thank them for investing and diversifying the fishing economy because it is very important that we find ways to redevelop and modernise the industry, and aquaculture is a way that you can do that,” Mr Sweeting said.

“I am looking forward to working with them handin-hand to ensure that their part in aquaculture, and the business that they are trying to grow, is successful and to ensure that what they do in that department is really able to benefit Bahamians and create more opportunities for persons. It is something that I am excited about and really hope that this is a game-changer to what this ministry is about.”