10302019 BUSINESS

business@tribunemedia.net

WEDNESDAY, OCTOBER 30, 2019

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Govt urged: ‘Dust off’ National Plan to solve our woes

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

AN EX-CHAMBER of Commerce director yesterday urged the government to rapidly “dust off” the National Development Plan, arguing: “It is 100 percent the solution to the issues we are facing.”

Roderick Simms, pictured, who previously chaired the organisation’s Family Island division, told Tribune Business he was at a loss to understand the Minnis administration’s reluctance to use a bi-partisan “playbook” that contained a “road map” for resolving the country’s ‘ease of doing business’ woes and other problems.

Pointing to the outcry over The Bahamas’ latest slippage in the World Bank’s ‘ease of doing business’ rankings, Mr Simms said individual commentators were focusing on single or collective issues without accounting for the bigger picture.

He argued that no one problem, such as the roadblocks and structural impediments to the smooth conduct of commerce, could be fixed in isolation and instead needed to be addressed through an all-encompassing, holistic approach - something that the National Development Plan attempted to do.

Warning that “all sectors” of the economy and public sector were coming under “increasing pressure”, Mr Simms said “75-80 percent” of government corporations were likely in the same condition as the blackout plagued Bahamas Power & Light (BPL).

Bemoaning the absence of “visionaries” able to understand the economic and social trends that The Bahamas is facing, and what is to come, he added that the government needed to “flush out” civil servants holding posts since the 1970s and 1980s who were now blocking the rise of young graduates possessing skill sets essential for the 21st century.

Taking the “ease of business” debate as an example, Mr Simms said the response to the latest World Bank rankings setback had largely focused on individual topics, such as productivity, the ease of starting a business or developing a land registry.

“We all have parts we are familiar with or would like to see improved,” he told Tribune Business, “but the country’s at a state where all systems have to be improved. One system touches on a another and cannot be improved in isolation.

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Dealers hope 28% rise ends ‘roller coaster hell’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

N

EW auto dealers yesterday voiced optimism that the industry’s 28.1 percent sales increase for the year to endSeptember indicates “one hell of a roller coaster ride” has finally ended.

Rick Lowe, the Bahamas Motor Dealers Association’s (BMDA) secretary, told Tribune Business that the sector was hoping the improvement driven largely by a 68.75 percent sales surge in the 2019 third quarter - is evidence that the “long, slow slog” to recover from the 2008-2009 recession is nearing its end.

He revealed that industry-wide sales for the three months to end-September were some 209 units up on 2018 figures, with the sector finding some 1,285 new car buyers for the first nine months compared to 1,003

benefits from the government’s excise tax rate cuts, spanning two successive budgets, and deferral of border tax via “bonded” facilities, were starting to take effect and had been “a tremendous help” in enabling the sector to achieve a competitive “level playing field” once again.

Mr Lowe, describing the improved momentum as “very badly needed” following a decade in which sales plunged as much as 70 percent from their prerecession levels, expressed hope that “it can be sustained all things considered with Dorian”.

“I think the reduction in import taxes has helped tremendously, and it’s finally now catching up,” he told Tribune Business. “The last

THE Bahamas’ main tourism promotion board yesterday said it had increased its marketing spend by 15 percent to “spike the message” that this nation remains open post-Hurricane Dorian.

Fred Lounsberry, the Nassau/Paradise Island Promotion Board’s chief executive, said its website “conversions” representing persons who visited it and subsequently booked a Bahamian vacation - had increased by nine percent year-over-year for the first three weeks of

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• Nassau/PI sees 9% website conversions rise • Board chief: ‘We’ve turned corner on Dorian’ • Minister confirms 14% September arrivals fall

DIONISIO D’AGUILAR

October to indicate bookings are on the rebound in time for the peak 2019-2020 winter season.

“Around the first week of October we saw traffic increased to our website,” he told Tribune Business. “In most cases all of our efforts are focused through our website. About the last three weeks we saw that our conversions and website activity is up over the last year, with conversions being people who visit

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

our website and are referred to a particular property and booked their vacation.

“We saw our website conversions up by nine percent from last year, with last year being a very, very strong year coming into the holidays. We have also increased our media spend by at least 15 percent from last year. We thought we had to spike the message correctly on The Bahamas

quarter was about equal to the year before, and this quarter has seen a dramatic rise. It was very needed.

“It depends on whether there’s any more fleet sales to come in, but there was a general upward trend which is important.”

The government slashed the excise tax rate for new autos with an engine size of 1.5 litres or less by 40 percentage points in the 2018-2019 budget, dropping the levy from 65 percent to 25 percent. Besides aiding the sector and individual dealers, it was intended to encourage consumers to switch to smaller, more fuel efficient and environmentally friendly Then, following industry

‘Spiking message’: Tourism board raises marketing 15%

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

Container port operator $600k ahead of target THE Nassau Container Port’s operator beat the profits forecast for its 2019 financial year by some 8.4 percent or almost $600,000, its just-released financial statements have revealed.

Arawak Port Development Company (APD), the BISX-listed manager for the commercial shipping facility on Arawak Cay, unveiled total comprehensive income of $8.03m for the 12 months to end-June 2019 compared to internal forecasts of $7.41m when the year began. It had initially predicted a $1.195m profits fall.

However, despite beating projections, APD’s bottom line was some 6.7 percent below the prior year’s $8.605m, with earnings per share (EPS) coming in at $1.61 compared to 2018’s $1.72 per share.

This, though, was not unexpected given that APD had adopted a “conservative” approach to budgeting and financial forecasting for the 2019 financial year, citing numerous potential local and international headwinds to economic activity that could impact import volumes.

Besides the value-added tax (VAT) increase “curbing consumer spending for the foreseeable future”, the port operator had warned in its 2018 annual report that other development/ construction projects were unlikely to fully replace the import activity associated with the rush to complete Baha Mar’s construction and full opening.

Michael Maura, APD’s then-chief executive, also warned that the US-China “trade war”, with both countries’ tariffs increasing the price of consumer goods, and the upward spike in global oil prices represented

• New auto sales up 68.75% in third quarter • Decade’s ‘slow slog’ to recovery near end • Tax rate cuts branded ‘win-win all around’

for the same period last year.

While “government fleet” purchases were likely to have boosted 2019 sales, Mr Lowe added that “there was a general slight upward trend” in the market as well.

And while it was too early to assess any potential impact from Hurricane Dorian, he said his own dealership had already concluded several vehicle replacement sales to clients on Abaco and Grand Bahama.

Fred Albury, the Bahamas Motor Dealers Association’s (BMDA) president, echoed Mr Lowe in telling this newspaper that the data suggested the new auto industry has finally “bottomed out” and is starting to trend upwards following “a rough ten years”.

He added that the

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BOB signs deal to sell $103m trust business

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

BANK of The Bahamas has signed a deal to sell its $103m trust portfolio, the BISX-listed institution’s just-released 2019 financial statements have revealed.

Virtually no details are provided about the sale, such as price and buyer identity, other than one sentence in the “subsequent events” section of the bank’s audited accounts which states: “On July 31, 2019, the bank signed the agreement for the sale of its trust portfolio.”

Kenrick Braithwaite, Bank of The Bahamas managing director, could not be reached for comment yesterday but it appears that the majority governmentowned institution is exiting

• KPMG auditors warn on ‘material uncertainty’ • Over 25% of loan portfolio still non-performing a non-core subsidiary and business line as it seeks to build on its turnaround strategy.

The financials show Bank of The Bahamas Trust Company as having some $102.912m in assets under administration at the endJune 2019 year-end, up slightly from $102.275m the year before.

Established some ten to 15 years ago, and originally headed by ex-Chamber of Commerce president Tanya Wright, the trust company sought to target high net worth Bahamians in the domestic economy with similar estate planning and wealth management services that are offered to this

nation’s offshore clients.

“Most of the assets are real estate and insurance policies,” one financial services source, speaking on condition of anonymity, told Tribune Business. “You get life insurance and put it into a trust.”

While the potential purchaser was not identified, the source speculated that the A. F. Holdings (former Colina) group and its Ansbacher (Bahamas) entity were among the “best fits” for the business along with possibly Leno Bahamas or a Bahamas-based international bank wanting to break into the domestic market.

While Bank of The Bahamas’ financial statements

indicate that the trust portfolio’s sale has yet to be consummated, given that the directors signed-off on them on October 22, most such deals take around three months to close following the sales agreement’s signing. Given that the latter event occurred on July 31, completion is likely close.

Meanwhile, the KPMG accounting firm qualified its audit opinion on Bank of The Bahamas by pointing to a “material uncertainty” related to the institution’s ability to continue as a “going concern” due to the $136.363m worth of total accumulated losses sitting on its balance sheet at the June 30, 2019, year-end.

“The bank experienced significant operating losses for the several years prior to the fiscal year ended June 30, 2018, and has an accumulated deficit as at June 30, 2019, of $136.363m,” KPMG wrote.

While that number represented a more than $2m decline from the prior year’s $138.9m in “red ink”, the accounting firm added: “Although the bank has experienced operating profits for the fiscal years ended June 30, 2018, and June 30, 2019, the accumulated deficit and lack of a consistent, sustained period of profitability indicate that a material uncertainty exists that may cast significant doubt on the bank’s ability to continue as a going concern.

“Management has

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PAGE 2, Wednesday, October 30, 2019

THE TRIBUNE

BTC expands GB NIB moves to combat contribution backlog restoration teams

BTC providing backpacks to UB students as it also continues in humanitarian efforts.

THE Bahamas Telecommunications Company (BTC) yesterday said it has expanded its Grand Bahama recovery team as it seeks to fully restore communications services to the island.

Besides restoring landline, internet, TV and mobile services, BTC added that it was also upgrading customers to its fibre-to-the-home (FTTH) infrastructure to provide faster broadband speeds and an improved TV product. The upgrades are being done free of charge to customers.

André Foster, BTC’s senior director of technical operations, said: “We have increased manpower on the ground in Grand Bahama as we work to restore all landline, Internet and television services as quickly as possible.

“The progress is encouraging and we are working to have all services restored.

Billing for fixed-line services has been suspended for customers in Grand Bahama and Abaco since September.”

André Knowles, director of BTC’s business-to-business (B2B) category, added: “We are working to restore normalcy to our business

and residential customers in the fastest time possible. In many instances, to facilitate communications, we are forwarding their fixed-line numbers to their mobile phones while we repair services.

“We’ve been contacted by many of our customers who want to add new services, especially broadband and television. In the last week alone we’ve had more than 100 requests for new services. Most of our customers in the fibre footprint are operational.”

BTC said civil works are currently in progress, and cables being rerouted, from the company’s McKenzie Street central office to Pioneer’s Way. A temporary mobile tower has been erected at the Freeport Container Port while restoration efforts continue.

BTC’s technical teams last week also canvassed the Lucaya, Lincoln Green 10, Glenburn Drive, Jansel Court, Lucaya Towers, Chesapeake, VOPAK, Swann Drive, Blockade Drive, Dundee Bay Drive, Arden Forest, Bartlett Hill, Bootle Bay, Deadman’s Reef, Holmes Rock, Lewis Yard, Malaboo Reef, Martin Town, Park Royal, Pinder’s Point, Royal

Bahamia, Silver Cove, West End and Oceanhill communities to restore landline and Internet services.

Staff will continue to visit communities, and BTC encouraged customers to follow the company’s social media pages for upcoming restoration dates in Grand Bahama.

“We’re also continuing to make steady progress in Abaco, and are grateful that many of our technical team members have returned to the island to drive the restoration efforts. We are also currently restoring fibre to Dundas Town, Central Pines, Bustic Bright, the Government complex, Thurston Bay, Treasure Cay, Green Turtle Cay, Hope Town, Man-O-War, Coopers Town, Guana Cay and Bakers Bay,” Mr Foster added.

As BTC restores services, it has also continued its humanitarian efforts.

It recently provided backpacks and school supplies to students from The University of The Bahamas.

BTC has also continued visiting residents in various communities in Grand Bahama, providing food and relief supplies.

THE National Insurance Board (NIB) yesterday unveiled a new digital upgrade aimed at eliminating bottlenecks such as the recent 266,000-strong contribution backlog.

The social security system announced the launch of the Employer’s SelfService (ESS) portal, an internet-based solution that will enable companies to manage their contribution payments and compliance in a manner that eliminates bureaucracy and red tape.

The portal is a website where Bahamian employers can log-on from anywhere, and at any time, to manage their NIB accounts.

They will be able to submit the “c10” contribution forms; make contribution payments using a debit/ credit card (Visa or Mastercard only); and manage their employee register.

NIB, in a statement, said the reforms will digitise and simplify the process of submitting c10s and making contribution payments. It added that this will eliminate long lines and unnecessary trips to NIB for employers, while aiding the social security system by eliminating contribution backlogs since employers can upload information directly into the system.

Manual data entry by NIB personnel will also

NICOLA VIRGILL-ROLLE cease, with the portal placing employers in control and simplifying the process. “Our goal is to eliminate contribution backlogs, which is expected to result in a higher level of compliance in the future,” NIB said.

“Contributions are at the heart of NIB’s operations, and are used to accurately calculate benefits and determine claim eligibility. In May 2018, the board commenced the ‘v3’ stabilisation project. Since then, some 260,000 c10s was placed in the backlog processing system.

“These represent backlogs from April 2016 to October 31, 2018, of which some 245,000 have been digitised and about 188,000 of these have been posted to employer and employee accounts. With the implementation of a special initiative geared toward reducing the accumulation of excess contribution forms, this number was significantly reduced.”

Nicola Virgill-Rolle, NIB’s director, added that the roll-out and eventual

full implementation of the Employer Self-Service portal was part of its newly-developed fiveyear strategic plan, called Towards a Sustainable NIB 2019-2024: Creating a World Class Organisation.

“At NIB, we recognise the need to effectively deliver services to our customers whether it is in-person, online or via telephone. NIB is therefore committed to customer engagement with the use of customer-centric technology for an overall positive customer experience,” Mrs Virgill-Rolle said.

NIB said 41 companies are participating in the portal’s test phase, which began yesterday with training for the first nine firms.

It is expected to last for a three-month period. The 41 employers included in the pilot programme represent small, mediumsizes and large companies with varying numbers of employees and contribution payment amounts.

By working with a crosssection of employers during the test stage, NIB is able to analyse how different employers interact with the system. At the end of the pilot programme, employers will be able to share key findings as a result of the experience gained from using the portal to manage their NIB accounts.

BAHAMAS Tourist Office staff collaborate with Howard Alan Events and their team. From left: Debra Caicedo, director of sponsorship, Howard Alan Events; Idanya Clarke, Bahamian artist; Adrian Kemp and Phylia Shivers, Bahamas Tourist Office Florida; Malinda Ratliff, director of marketing, Howard Alan Events; Howard Alan, founder, Howard Alan Events.

BAHAMAS PROMOTED AT FLORIDA ART SHOW THE Bahamas this weekend used an annual art show in Fort Lauderdale to continued to market itself as open for business post-Dorian.

Hosted by Howard Alan Events, the show took place from October 19-20 on Las Olas Boulevard with hundreds of exhibitors’ works on display and thousands of passers-by on foot.

Though this is the second year that The Bahamas has participated, Howard Alan

invited it to participate free of charge to further help hurricane relief efforts.

The works of young Bahamian artist, Idanya Clarke, were on display at The Bahamas booth during the outdoor art event, and were well received by visitors. She was one of some 200 artists whose works were displayed, offering at prices varying from $5 to $50,000, and her appearance was sponsored by the Ministry of Tourism

and Aviation.

Phylia Shivers, sales manager at The Bahamas Tourist Office’s Florida office, said: “It’s always a pleasure to work with local talent; it is indicative of the beauty of The Bahamas.

But this is much bigger than art and bigger than a sales initiative. This is about culture and love of country, and collaborating with persons with whom we have a common goal to show our country some love.”

THE TRIBUNE

Wednesday, October 30, 2019, PAGE 3

$250M TRANSFORMATION FROM ‘BREAK EVEN’ PORT

By YOURI KEMP

A CABINET minister yesterday described Nassau’s cruise port as a “break even operation” as Parliament debated legislation to facilitate its $250m transformation.

Renward Wells, minister

for transport and local government, said the Harbour Dues Amendment Bill would enable the transition to the public-private partnership (PPP) between the government and Global Ports Holding for the overhaul of Prince George Wharf.

RENWARD WELLS

GLOBAL Ports Holding’s rendering of the proposed Nassau Cruise Port transformation.

He told the House of Assembly that, through the government’s current ownership and management of the facility via the Port Department, annual tax and fee income just about covers operational costs.

“About $2.6m in revenue is derived from various taxes at Prince George Wharf,” Mr Wells said. “As it relates to annual expenditure, the Port Department and the Ministry of Tourism spends approximately $2.5m a year for port security, operations for their facility, capital expenditure and for repairs.

As a result of this, operations at the Prince George Wharf break even every year.”

The Bill identifies three revenue/income streams that will enable Nassau Cruise Port Ltd, the Global Ports Holding subsidiary that will manage and operate Nassau’s cruise port for 25 years under the terms of the deal with the government, to recoup and earn a return on its $250m investment.

“The amendment to the Harbour Dues Act will accommodate a publicprivate partnership that the government promised as a part of its mandate,” Mr Wells said. “The amendment will create a designated cruise ship port area, where the operator will be able to levy and collect three

types of charges.

“One, a port facility charge for costs to ships and services to ships that does not attract value-added tax (VAT). Secondly, a passenger facility charge which covers the services provided to passengers while in the port area that does attract VAT, and other services charges for utility usage such as water, electricity and garbage collection and so on.”

Mr Wells recalled that the government had selected Global Ports Holding as the top bidder for the redevelopment of Prince George Wharf, but reiterated: “The government will retain ownership of the port.”

He added: “With the takeover by Nassau Cruise Port Ltd, the operator will collect a rental fee from Global Ports Holding each year as a part of its operating contract. Under this arrangement the government will net $2m a year during construction, and a minimum of $2.5m when the port becomes operational.”

“While Nassau Cruise Port Ltd pays, we will be a subsidiary of Global Ports Holding’s $250m investment that will transform the Wharf into a state-ofthe-art port and water front destination.”

“Under the 25-year lease agreement, Global Ports Holding will own 49 percent

of the Nassau Cruise Port Ltd, and another 49 percent will be owned by the Bahamas Investment Fund (BIF) for the fund to serve as an investment vehicle to allow Bahamians to become shareholders in the project. The final two percent will start the YES Foundation, with YES standing for Youth, Education and Sports.”

Mr Wells outlined how Prince George Wharf’s transformation will also allow for partnerships with Bahamian stakeholders, development of an entertainment venue and initiatives to improve the ambience and appearance of downtown Nassau to improve the passenger experience.

He added that the cruise port’s proposed new terminal building will facilitate upgraded retail and food and beverage facilities, and will further integrate the port into the downtown area by acting as a catalyst for the entire area’s redevelopment.

The new terminal will also include an electric tram service transporting passengers from cruise ship to terminal, as well as the use of renewable energy. Nassau Cruise Port is expected to complete construction of the new cruise port within 24 months of starting construction.

PAGE 4, Wednesday, October 30, 2019

THE TRIBUNE

NIB staff seek court Govt urged: ‘Dust off’ National Plan to solve our woes order for strike poll FROM PAGE ONE

OBIE FERGUSON

By YOURI KEMP NATIONAL Insurance Board (NIB) employees will today seek a Supreme Court ruling that the minister of labour acted illegally when he cancelled their strike poll last week.

Obie Ferguson, attorney for the Union of Public Officers which represents NIB line workers, argued that Dion Foulkes had acted “ultra vires” and breached the Industrial Relations Act when he deemed Friday’s strike poll invalid.

The Trades Union Congress (TUC) president confirmed to Tribune Business that he and the union are due to appear before Supreme Court justice Indra Charles today in a bid to obtain an Order requiring the minister of labour to conduct the strike poll.

Mr Ferguson said: “We are making an application to the court that the minister acted ultra vires via the Industrial Relations Act when he stopped the union from conducting a poll to determine whether or not the workers are desirous of going on strike.

“Before the vote he cancelled the poll that would have determined if the workers wanted to strike or whether they didn’t. The union poll was scheduled for October 25 at 10am, and on the afternoon of October 24 he cancelled it.

“So we are going to court to seek an order of mandamus ordering the minister to conduct a poll to allow the members of the

bargaining unit to decide whether they want a strike or whether they don’t want it,” Mr Ferguson continued.

“A proper union properly instructed would call a meeting and give the minister two clear days’ notice advising him of the date, time and place of the poll, and the minister is obligated by law to have a designated officer to appear and supervise the poll.”

John Pinder, director of labour, last week explained that the strike poll was deemed invalid because there were technical deficiencies with the union’s application.

Yet many workers still went ahead and voted unaware of the Department of Labour’s decision.

Meanwhile, Dr Nicola Virgill-Rolle, NIB’s director, said there had been no disruptions to NIB’s operations as a result of the union’s “work to rule”, which means that employees will not go beyond their job descriptions in terms of the tasks they perform.

“We continue to take in claims to do our normal processing and function.

That is key because the whole point of what we do is to serve the public,” she said.

“We are serving people who are in need of a retirement benefit, maternity benefit and in need of sickness benefit. It’s a very important role NIB plays and we are focused on maintaining customer focused through this difficult time.”

PUBLIC NOTICE

“The National Development Plan concentrates on four pillars, and touches on the broadest components of reform. All of these are inter-connected, all of them are dependent on one another, none of them are independent of themselves...

“Every time something happens everyone provides feedback on what should and should not be done, but we have a road map. The road map is the National Development Plan,” Mr Simms continued.

“It’s good that everyone speaks their mind but there are certain sectors in the country that are at a critical state, and we need a plan to address the whole country. We cannot touch one part of a complex issue and solve it by itself. It’s economics, social. It’s all interdependent.”

A veil of silence appears to have settled over the National Development Plan and its fate in recent months, with virtually no mention being made of it by the prime minister or members of his Cabinet.

Much work was done on developing the Plan under the former Christie administration, and the effort was designed to be non-partisan, with the then-FNM opposition and other parties brought into the fold so that their input was incorporated and to ensure it survived changes in the political cycle.

It is unclear whether the National Development Plan has been discarded because it is perceived as a “PLP creation”, but the secretariat that was formed to

develop it appears to have been largely disbanded. It was headed by Dr Nicola Virgill-Rolle, who was subsequently moved to head the National Insurance Board (NIB) as its director.

“As far as I know the Plan is complete and just sitting there,” Mr Simms told Tribune Business yesterday.

“The idea was to use it as a yard stick for improving the country as a whole, and for country-wide reform.

“I would hope it didn’t disappear into a black hole.

I would hope it’s being read somewhere, looked at and being contemplated as coming into play to deal with all the moving parts.

I hope that someone has thought about it, considered it, dusted it off and is looking at it as the next playbook.

“It is the solution to the current dilemmas we are facing today. It is 100 percent the solution to the issues we are experiencing today. We need to enact the plan and hit the road. It’s going to be painful, there’s going to be some changes, but at the end of the day the country will be in a better position,” he added.

“The National Development Plan is the key. We already have a plan, but I don’t understand what’s going on. We’re reluctant to use this plan even though both parties were instrumental in developing it. I sat at the table with Dr Minnis at some of the meetings.

“I don’t care which government the plan started under; it doesn’t make a difference. We have to think about country now and move it forward. I hope the different sectors involved with the plan come forward and be a champion of it, but

it’s quiet. We don’t have to reinvent the wheel, don’t have to go to someone with a crystal ball. We have a plan. Let’s use it.”

The National Development Plan represented the first ever co-ordinated effort to plan the Bahamas’ development in a systematic manner using empirical data and analyses, while also obtaining input from private sector and civil society organisations.

Labelled “Vision 2040”, the National Development Plan aimed to break with the Bahamas’ past ad-hoc approach to national growth by setting a clear path towards a more sustainable future.

It also set out a “road map”, containing measurable goals and objectives for The Bahamas to attain, so that this nation’s progress towards achieving its development targets can be judged according to set timelines.

Vision 2040 focused on four main policy pillars - the economy, governance, social policy and the environment, both natural and built - in its first 400-page draft, which was publicly disclosed.

Mr Simms, pointing to the increasing pressures on the Bahamian economy and wider society, said The Bahamas had suffered from numerous missed reform opportunities. He cited as one example the failure to rebuild Ragged Island some two years after Hurricane Irma’s passage, arguing that it could have become a model for renewable energy and green living which could now serve as a template for Marsh Harbour’s reconstruction.

“We missed the boat on

banking,” he added. “We think banking is changing, but it changed 20 years ago and we keep missing the boat. We need visionaries, people who are creative and have foresight.

“We don’t do a good job in collecting data to understand the trends we are passing through and what is to come. We know what our problems are. We don’t need someone from the outside to tell us that; we just don’t want to address it.

“Take BPL. The BPL situation is at a critical level.

Why do we know that? We use electricity every day.

There are other government agencies in the same state, but because we don’t use them every day we don’t know it. We saw the direct impact of the BPL meltdown, and I would say 75-80 percent of government corporations are in the same state.”

Describing The Bahamas as “stuck”, Mr Simms added: “We don’t have perpetual movement of people into and out of the system. The persons graduating from college today have learnt new methods and tools for solving and confronting problems, but we have people still in the system from the 1970s.

“There’s no flushing out and the country is stuck.

That’s why we have this brain drain. If people don’t see the way forward in this country they will not return. government corporations with the same people from the 1970s and 1980s, we have to flush them out and find ways to move people out so those with new skills and tools come in from college every year.”

BOB signs deal to sell $103m trust business FROM PAGE ONE implemented a strategic plan to sustain the operations and financial viability of the bank that will support the bank’s continuing ability to operate as a going

concern. As such, management does not expect that the accumulated deficit will impact the bank’s continuing ability to operate as a going concern. Our opinion is not modified in respect of this matter.”

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL

INTENT TO CHANGE NAME BY DEED POLL

The Public is hereby advised that I, SHONELL CLEARE of Acklins Street, New Providence, Bahamas P.O.Box N-1431, Parent of BETHEL CHINAGORUM WILLIAMS OKEZIE intend to change my child’s name from BETHEL CHINAGORUM WILLIAMS OKEZIE to BRYON CLEARE. If there are any objections to this change of name

by Deed Poll, you may write such objections to the Deputy 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, RONALD ALFONSO BEAN of the Eastern District, Nassau, N.P., The Bahamas, intend to change my name to RONALD ALFONSO BAIN. 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, N.P., Bahamas no later than thirty (30) days after the date of publication of this notice.

Bank of The Bahamas’ non-performing loans remain elevated at three times’ the commercial banking industry’s preDorian average, standing at 25.37 percent of its net credit portfolio at year-end.

While this represented a decline from the prior year’s 28.92 percent nonperforming ratio, it still means that one out of every four dollars lent by Bank of The Bahamas remains non-performing.

This compares to the industry’s 8.4 percent average in August 2019, and indicates ongoing credit quality problems despite being rescued by two taxpayerfinanced bail-outs totalling

more than $267m.

While the Bahamas Resolve transfers seemingly resolved Bank of The Bahamas’ commercial loan woes, taking it almost entirely out of that business, it still has an issue with residential mortgage loans - some $65.98m of which were non-performing as at end-June 2019.

And, without the remaining $167m worth of bonds injected into its balance sheet, Bank of The Bahamas would be technically insolvent given that liabilities would exceed assets despite earning $3.289m in total comprehensive income for the 2019 financial year.

THE TRIBUNE

Wednesday, October 30, 2019, PAGE 5

Dealers hope 28% rise Container port operator $600k ahead of target ends ‘roller coaster hell’ FROM PAGE ONE representations on behalf of dealers who had no inventory in that category, the Minnis administration enacted further reforms to “level the playing field” between dealers by cutting the excise tax rate for vehicles with engine sizes between 1.5 and two litres to 45 percent.

And it has also enabled Bahamian auto dealers to defer excise tax and VAT normally payable at the border on imported vehicles until such time as they are sold through the use of socalled “bonded” facilities.

Mr Lowe said these measures had combined to revive a long-struggling industry, now that dealers had been able to adjust product lineups and inventory ordering cycles to suit the new taxation structure.

“It’s a huge difference,” he told Tribune Business. “So far it has held our projections true that with lowering the import tax rate we’ll do more volume.... They’ve [the government] been very understanding of the plight of the local industry, which is a positive thing, without giving direct cash incentives - something I don’t think is a good thing.

“As long as the economy can hold there should be some growth. It takes time once policy changes are made for it to take full effect.”

Recalling the debilitating effects of the industry’s post-recession struggles, Mr Lowe added: “It’s been a long slog, my friend, a long slow slog. Minimal profits, expenditures increasing, so it’s nice for a change to see things trending in a different direction.

“It’s been a constant cut expenditure, cut expenditure, don’t maintain this and put something off a bit

to catch up some cash flow.

That’s where not paying the import taxes at the port has been a huge, amazing help to us, and it doesn’t seem to have impacted government revenues. There seems not to have been a decline. I thought there would be a dip at first, but there wasn’t.

“Hopefully the industry and our associates will be better off in the next six to eight months if things continue. What we’ve been through has not been easy, but has been worth it. We had hoped they would give us a bonded facility for parts, but that has not materialised.”

Mr Albury, meanwhile, agreed that sales trends had been “a bit upbeat” due to a combination of fleet sales to the government and hurricane replacements, as well as the positive impact from the recent tax changes.

“It’s been a tremendous help,” he said of the latter.

“It’s brought a lot of product into the price range that people can afford. It’s been very encouraging for persons to buy new vehicles. Some dealers do not have vehicles at 25 percent, but have stuff at 45 percent, so it’s levelled the playing field for everyone. Everybody has product to sell at a reasonable price.

“The government made a good decision because they’re realising more revenue from VAT, due to increased sales of high-priced new vehicles compared to the used car market, so their revenues

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should be a lot stronger.

“I think it’s been a winwin all around. Consumers are happy with it, the government is getting more revenue and dealers are selling more product to keep their doors open.”

Voicing optimism that the Bahamian new auto market had “bottomed out and, if anything, is starting to bump up again”, Mr Albury added of the past decade: “It’s been a hell of a roller coaster ride.

It’s been mostly going down.

It’s been a rough ten years, a really rough ten years. It’s a little more encouraging where we are today.

“But the industry is changing constantly with hybrids, plug-in hybrids and electric cars and so forth. We have to contend with that situation. It’s an ever-changing situation in the auto industry right now. We’re in a new technology era. Toyota next year is going to showcase a lot of new technology which I’m looking forward to seeing.”

THE CONTAINER port at Arawak Cay. FROM PAGE ONE further challenges for the Bahamian economy and cargo volumes.

Still, APD’s revenue projections were spot on, with the port operator’s $30.913m

top-line just short of the $30.996m that was forecast at the year’s beginning. Revenues finished the financial year down just two percent compared to the prior year’s $31.532m.

The port operator’s expenses remained largely

October 29, 2019

flat year-over-year, rising marginally to $17.786m compared to $17.615m in 2018. This, too, resulted in earnings before interest, depreciation and amortisation finishing flat at $13.126m compared to $13.916m in 2018.

PAGE 6, Wednesday, October 30, 2019

THE TRIBUNE

‘Spiking message’: Tourism board raises marketing 15% FROM PAGE ONE being still open for travellers.”

Mr Lounsberry added: “Now we are on full blast with our full regular message that we are ready and available for the winter season. We have done a lot of television spots in order to continue to express that Nassau/Paradise island is still open.

“We started television spots on 14 October, and this week we are putting a new creative out there.

So, we are moving quickly while continuing to be sensitive about the storm matters. But it really is time to get our normal messaging back in place.”

The Nassau/Paradise Island Promotion Board executive continued: “We talk to airlines pretty frequently and they are telling me the bookings are coming back. All of our partners and properties are engaging the public with us.

The timing now is to keep the messaging strong and positive.

“We are cautiously optimistic that we have turned the comer on Hurricane

ATLANTIS PARADISE ISLAND

Dorian. We are seeing positive signs that we are back on track. We are keeping vigilant on the marketing;

we have no intention on easing up.

“We keep building month-by-month from

October to after every season, and no different. This critical time to be

Easter this is is our in the

NOTICE

NOTICE

NOTICE is hereby given that WALTO BATHELUS, of Gribbs Corner, Off East Street, P.O.Box SS-5529 Nassau, New Providence, The Bahamas is applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twentyeight days from the 23rd day of October, 2019 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE is hereby given that ALLISON PETIT-HOMME, of Eneas Jumper Corner, Nassau, New Providence, The Bahamas is applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 30th day of October, 2019 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

MARKET REPORT www.bisxbahamas.com

(242) 323-2330

TUESDAY, 29 OCTOBER 2019

(242) 323-2320

ALL SHARE INDEX: CLOSE: 2,204.33 | CHG: 0.14 | %CHG: 0.01 | YTD: 94.88 | YTD%: 4.50 BISX LISTED & TRADED SECURITIES 52WK HI 4.45 22.65 7.00 5.92 2.60 2.00 5.47 11.75 6.17 4.64 12.40 2.81 3.85 10.21 7.51 16.50 9.40 3.64 14.20

52WK LOW 3.70 20.91 4.90 4.46 1.01 0.22 2.00 9.25 6.15 3.95 6.75 2.35 1.76 7.51 6.10 12.10 6.20 3.01 13.01

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 Emera Incorporated Famguard Fidelity Bank Finco Focol J. S. Johnson

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

1000.00 1000.00 1000.00 1000.00

1000.00 1000.00 1000.00 1000.00

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

CAB6 CAB8 CAB9 CAB10 CHLA FBBA FCLB

PREFERENCE SHARES

1.00 10.00 1.00

1.00 10.00 1.00

CORPORATE DEBT - (percentage pricing) 52WK HI 100.00

52WK LOW 100.00

115.92 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

104.79 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

52WK HI 2.27 4.31 2.07 194.86 158.57 1.65 1.82 1.74 1.21 8.01 9.60 6.83 11.39 12.30 10.68 10.00 8.69 11.79

52WK LOW 1.67 3.04 1.68 164.74 116.70 1.58 1.69 1.66 1.09 6.41 7.62 5.66 8.65 10.54 9.57 9.88 8.45 11.20

SECURITY Fidelity Bank Note 22 (Series B) +

SYMBOL FBB22

Bahamas Note 6.95 (2029) BGS: 2015-1-3Y BGS: 2014-12-5Y BGS: 2015-1-5Y BGS: 2014-12-7Y BGS: 2015-1-7Y BGS: 2014-12-30Y BGS: 2015-1-30Y BGS: 2015-6-3Y BGS: 2015-6-5Y BGS: 2015-6-7Y BGS: 2015-6-30Y BGS: 2015-10-3Y BGS: 2015-10-5Y BGS: 2015-10-7Y

BAH29 BG0203 BG0105 BG0205 BG0107 BG0207 BG0130 BG0230 BG0303 BG0305 BG0307 BG0330 BG0403 BG0405 BG0407

BAHAMAS GOVERNMENT STOCK - (percentage pricing)

MUTUAL FUNDS

MARKET TERMS

LAST CLOSE 3.70 17.43 6.00 5.92 2.46 1.80 4.70 11.06 6.16 4.12 8.01 3.35 3.85 10.13 7.51 16.50 9.33 3.54 14.20

CLOSE 3.70 17.43 6.00 5.92 2.46 1.80 4.70 11.06 6.16 4.12 8.01 3.43 3.85 10.21 7.51 16.50 9.33 3.54 14.20

CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.08 0.00 0.08 0.00 0.00 0.00 0.00 0.00

1000.00 1000.00 1000.00 1000.00 1.00 10.00 1.00

1000.00 1000.00 1000.00 1000.00 1.00 10.00 1.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00

LAST SALE 100.00

CLOSE 100.00

CHANGE 0.00

107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

FUND CFAL Bond Fund CFAL Balanced Fund CFAL Money Market Fund CFAL Global Bond Fund CFAL Global Equity Fund Leno Preferred Income Fund Leno Growth Fund Leno Diversified Fund Leno Global USD Bond Fund Royal Fidelity Bahamas Opportunities Fund - Secured Balanced Fund Royal Fidelity Bahamas Opportunities Fund - Targeted Equity Fund Royal Fidelity Bahamas Opportunities Fund - Prime Income Fund Royal Fidelity Int'l Fund - Equities Sub Fund Royal Fidelity Int'l Fund - High Yield Fund Royal Fidelity Int'l Fund - Alternative Strategies Fund Colonial Bahamas Fund Class D Colonial Bahamas Fund Class E Colonial Bahamas Fund Class F

BISX ALL SHARE INDEX - 19 Dec 02 = 1,000.00 52wk-Hi - Highest closing price in last 52 weeks 52wk-Low - Lowest closing price in last 52 weeks Previous Close - Previous day's weighted price for daily volume Today's Close - Current day's weighted price for daily volume Change - Change in closing price from day to day Daily Vol. - Number of total shares traded today DIV $ - Dividends per share paid in the last 12 months P/E - Closing price divided by the last 12 month earnings

VOLUME

VOLUME

NAV 2.27 4.30 2.07 193.72 158.42 1.65 1.82 1.74 1.19 8.23 10.10 6.85 11.24 12.28 10.74 9.92 8.68 11.38

EPS$ 0.239 0.932 1.760 0.369 0.070 0.000 -0.438 0.722 0.449 0.184 0.140 0.102 0.467 0.646 0.728 0.816 0.939 0.203 0.631

DIV$ 0.170 1.260 0.000 0.250 0.000 0.020 0.000 0.720 0.220 0.120 0.000 0.434 0.060 0.328 0.240 0.540 0.200 0.120 0.610

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

P/E 15.5 18.7 N/M 16.0 N/M N/M -10.7 15.3 13.7 22.4 57.2 33.6 8.2 15.8 10.3 20.2 9.9 17.4 22.5 0.0 0.0 0.0 0.0 0.0 0.0 0.0

YIELD 4.59% 7.23% 0.00% 4.22% 0.00% 1.11% 0.00% 6.51% 3.57% 2.91% 0.00% 12.65% 1.56% 3.21% 3.20% 3.27% 2.14% 3.39% 4.30% 0.00% 0.00% 0.00% 0.00% 6.25% 7.00% 6.50%

INTEREST Prime + 1.75%

MATURITY 19-Oct-2022

6.95% 4.00% 4.25% 4.25% 4.50% 4.50% 6.25% 6.25% 4.00% 4.25% 4.50% 6.25% 3.50% 3.88% 4.25%

20-Nov-2029 30-Jul-2018 16-Dec-2019 30-Jul-2020 15-Dec-2021 30-Jul-2022 15-Dec-2044 30-Jul-2045 26-Jun-2018 26-Jun-2020 26-Jun-2022 26-Jun-2045 15-Oct-2018 15-Oct-2020 15-Oct-2022

YTD% 12 MTH% 2.77% 3.84% 1.38% 3.46% 2.03% 2.76% 4.99% 6.20% 7.18% -0.08% 2.88% 3.80% 4.56% 6.50% 3.35% 4.17% 5.77% 7.89% 7.17% 8.76% 11.07% 12.58% 3.50% 4.96% 8.92% -0.97% 5.22% 5.44% 2.95% 2.64% -0.71% 0.16% 7.40% 2.70% 10.20% 1.30%

NAV Date 30-Sep-2019 30-Sep-2019 27-Sep-2019 30-Sep-2019 30-Sep-2019 30-Sep-2019 30-Sep-2019 30-Sep-2019 30-Sep-2019 30-Sep-2019 30-Sep-2019 30-Sep-2019 30-Sep-2019 30-Sep-2019 30-Sep-2019 30-Mar-2019 30-Mar-2019 30-Mar-2019

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 | COLONIAL 242-502-7525 | LENO 242-396-3225 | BENCHMARK 242-326-7333

marketplace before our competition takes our business from us.”

Mr Lounsberry’s comments came as Dionisio D’Aguilar, minister of tourism and aviation, said the 14 percent decline in visitor arrivals for September - the

month Dorian struck Abaco and Grand Bahama - were not as bad as expected.

“The numbers are in for September, and we have to say obviously that the number of foreign visitors coming to The Bahamas declined in September by 14 percent. That is significant, but we thought it would have been a lot worse. So we are pleased that it was not as bad as what we had initially thought it would have been,” Mr D’Aguilar said.

“As the memory of the hurricane fades from the listening public, especially in the United States, it becomes easier and easier to reengage them on making a vacation to The Bahamas. We are delighted it is not in the news as much any more, as people are now thinking about Thanksgiving and Christmas and beginning to re-engage in thinking about a holiday in The Bahamas.

“We are engaging a lot more with the media houses. As a country we are engaging with a lot of media houses. I’m about to go on a major tour of all of Canada to re-engage the Canadian public to come to The Bahamas... The Bahamas is getting a lot of increased travellers from Canada.”

NOTICE NOTICE is hereby given that MINUS MURAT , of Queens Highway Andros, The Bahamas is applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 30th day of October, 2019 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE NOTICE is hereby given that GABRIELLE SWANN, of Sandilans Village Road Nassau, New Providence, The Bahamas is applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 23rd day of October, 2019 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE NOTICE is hereby given that DWAYNE JAVADO LAWRENCE, of Pine Wood Gardens, Cotton Wood Street Nassau, New Providence, The Bahamas is applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twentyeight days from the 23rd day of October, 2019 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE NOTICE is hereby given that KENDY ALEXIS, of Rolle Avenue, Nassau, New Providence, The Bahamas is applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 23rd day of October, 2019 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

THE TRIBUNE

Wednesday, October 30, 2019, PAGE 7

Senators grill Boeing CEO over plane involved in two crashes

By DAVID KOENIG Associated Press BOEING CEO Dennis Muilenburg faced withering questions from senators yesterday about two crashes of 737 Max jets and whether the company concealed information about a critical flight system.

“We have made mistakes, and we got some things wrong,” Muilenburg conceded.

Some members of the Senate Commerce Committee cut Muilenburg off when they believed he was failing to answer their questions about a key flight-control system implicated in both crashes.

Boeing successfully lobbied regulators to keep any explanation of the system, called MCAS, from pilot manuals and training. After the crashes, the company tried to blame the pilots, said Sen Richard Blumenthal, D-Conn.

“Those pilots never had a chance,” Blumenthal said.

Passengers “never had a chance. They were in flying coffins as a result of Boeing deciding that it was going to conceal MCAS from the pilots.”

Sen Tammy Duckworth, D-Il, said Boeing “set those pilots up for failure” by not telling them how the response to a nose-down command on the Max differed from previous 737s.

“Boeing has not told the whole truth to this committee and to the families and to the people looking at this ... and these families are suffering because of it,” a visibly angry Duckworth said as she pointed to relatives of passengers who died.

Muilenburg denied that Boeing ever blamed the pilots. Several times this spring and summer he said

the system’s ability to push a plane’s nose down less powerful.

Chicago-based Boeing hopes to win Federal Aviation Administration approval by year end to return the plane to flight.

The FAA is also coming under scrutiny for relying

PEOPLE holding photos of those lost in Ethiopian Airlines Flight 302 and Lion Air Flight 610 listen as Boeing Company President and Chief Executive Officer Dennis Muilenburg, front left, waits to testify at a Senate Committee on Commerce, Science, and Transportation hearing on Capitol Hill in Washington yesterday, about “Aviation Safety and the Future of Boeing’s 737 MAX”.

Photo: Susan Walsh/AP the accidents were caused by a “chain of events”, not a single factor. The comments were widely seen as deflecting blame, including to the pilots.

The CEO told senators yesterday that Boeing has always trained pilots to respond to the same effect caused by an MCAS failure — a condition called runaway trim — which can be caused by other problems.

Muilenburg and Boeing’s chief engineer for commercial airplanes, John Hamilton, spent about 80 minutes at the witness table.

The committee then heard from two safety officials who helped shape reports about the Boeing plane.

The hearing took place exactly one year after a 737 Max crashed off the coast of Indonesia and more than seven months after a second crash in Ethiopia. In all, 346 people died. Muilenburg’s testimony was the first by a Boeing executive since the crashes. The CEO is scheduled to testify before a House committee today.

Indonesian investigators say Boeing’s design of MCAS contributed to the

crash of a Lion Air Max last October. Ethiopian authorities are continuing to investigate the second crash, involving a plane flown by Ethiopian Airlines, which led to a worldwide grounding of the plane.

“Both of these accidents were entirely preventable,” said Committee Chairman Roger Wicker, R-Miss.

More than a dozen relatives of passengers who died in the accidents attended the hearing. Wicker invited them to stand and hold up large photos of their relatives, which they had carried into the room. Muilenburg turned in his seat to look at them.

In Indonesia, the CEO of Lion Air vowed yesterday to follow recommendations from a probe into the disaster. Relatives of victims scattered flowers on waters where the aircraft went down a year ago.

Muilenburg told senators that Boeing is in the final stages of updating flight software to improve safety by adding redundancy — tying MCAS to a second sensor and second computer at all times, and making

on Boeing employees to perform some certification tests and inspections. It’s an approach FAA has followed for many years.

“We need to know if Boeing and the FAA rushed to certify the Max,” Wicker said.

The committee didn’t get

an answer to that question.

Sen Jon Tester, D-Mont, indicated he won’t wait for one, accusing Boeing of cutting corners on safety.

“I would walk before I was to get on a 737 Max,” Tester told Muilenburg. “When issues like this happen, it costs your company huge.”

PAGE 8, Wednesday, October 30, 2019

THE TRIBUNE

US finalising rule to allow farmers to legally grow hemp DES MOINES Associated Press US agriculture officials said yesterday a rule that allows farmers to legally grow hemp will be finalised this week, a move that many states have awaited for months so they can begin widespread hemp production.

The rule is set to be published this Thursday and effective immediately. It establishes requirements for licensing, maintaining records on the land where hemp will be grown, testing the levels of THC — the active ingredient in marijuana that causes a high — and disposing plants that don’t meet the requirements.

In addition, a national hemp-growing programme that Congress authorised in the 2018 farm bill will be launched by the rule.

Hemp and marijuana are both cannabis plants but have different levels of THC. Industrial hemp can be used in food, fibre, paper, beauty products and other products, and the industry estimates it could grow nationally to be a $1.9bn market by 2022.

Jumping into hemp

growing may not be a simple task for traditional farmers.

Minnesota hemp farmer David Connor said growing 26 acres of hemp this year was labour intensive with planting, harvesting and drying all done by hand.

New equipment is coming out that will ease some of the manual labour, he said, but it’s not as easy as growing row crops like corn and soybeans.

Connor, who runs Paw Paw Hemp Co with a partner, grows for CBD products, a market that has expanded exponentially in recent years. CBD, a compound found in the hemp plant, is used in a wide assortment of foods and as pain relievers, as well as for other medical conditions.

Extracting it is legal in some states but not others.

And in April, the Food and Drug Administration issued warning letters to companies for making unapproved health claims about CBD products.

Some farmers may not find it profitable to grow for the CBD market. For example, farmers in Iowa where CBD extraction is not legal would have to ship their plants elsewhere for CBD oil extraction.

Those who hope to grow

WORKERS at MERJ farms unload hemp plants during the first harvest at the Sullivan County farm, in Bristol, Tenn. US agriculture officials say a rule that allows farmers to legally grow hemp will be finalised this week. It’s a move that many states have awaited for months so they can begin widespread hemp production. The rule establishes requirements for licensing, maintaining records on the land where hemp will be grown, testing the levels of the ingredient in marijuana that causes a high, and disposal of plants that don’t meet the requirements. for the industrial hemp market for products that could replace plastic or for fibre may find scarce buyers.

“I am only aware of three active fibre plants, two in Kentucky and one in North Carolina,” said Robin Pruisner, a state entomologist who’s focused on hemp production for the Iowa Department of Agriculture.

“We need that infrastructure for processing and manufacturing to evolve for it to become a long-term viable crop.”

Her advice for hemp farmers it to have a signed contract from a buyer before they begin production.

Some states have grown hemp on a smaller scale under the 2014 farm bill pilot programme. The 2018 law removed industrial hemp from the list of illegal drugs and required the USDA to set up a national

hemp growing programme.

The rule establishes testing of plants that must be done in a Drug Enforcement Administration-registered laboratory, raising initial concerns that could create a bottleneck in the process if there aren’t enough labs available.

Iowa, for example, currently has just one state laboratory that will do the testing.

USDA officials say nationally there are as many as 250 labs and the agency may allow private labs to become certified for hemp testing.

Sampling must be conducted within 15 days of harvest by a sampling firm or law enforcement agent, the rule says. The concentration of THC must be below 0.3%.

Plants measuring too high must be destroyed.

At least 47 states have

passed laws to establish hemp production programmes, according to the National Conference of State Legislatures. Exceptions include South Dakota, Idaho and Mississippi.

The rule to be published Thursday is an interim rule.

The USDA can change it if necessary to make the program run efficiently. The interim rule ends in two years, at which time the USDA will release a final rule.

“We will use the 2020 growing season as a chance to test drive the interim rule to guide any adjustments that are made in the final rule,” said Greg Ibach, the USDA undersecretary for farm production and conservation.

US Agriculture Secretary Sonny Perdue said farmers should speak up if they have suggestions.

Ibach said about 120,000 acres of hemp was grown under the federal pilot program rule in 2018. He said he’s seen estimates of 500,000 acres grown this year.

The USDA hasn’t tracked hemp acres, so the figures are only estimates, he said. It will begin to collect data on acres planted like it does for other major crops grown in the US next year.

“We have already seen a large growth in hemp production in the United States,” Ibach said. “I think the experience that producers have this fall with harvesting their crop, handling their crop, finding buyers for their crop is going to be very instructive as to whether or not we see continued growth in the hemp industry or whether or not producers take a step back.”