11172020 BUSINESS AND FEATURES

Page 1

business@tribunemedia.net

TUESDAY, NOVEMBER 17, 2020

$4.00

ROBERT SANDS

Baha Mar ‘unsure what caused’ halt in benefit payouts By NEIL HARTNELL AND YOURI KEMP Tribune Business Reporters A SENIOR Baha Mar executive was last night “unsure what caused” the delay in resort employees receiving their unemployment benefit but said the situation had been resolved at one of its properties. Robert Sands, Baha Mar’s senior vice-president of external and government affairs, told Tribune Business that “the Melia situation has been resolved” with the National Insurance Board (NIB) advancing the $100 per week benefit to the resort so it can be distributed to eligible furloughed employees. He added that the Cable Beach mega resort had also supplied a list of furloughed employees at its Grand Hyatt, SLS and Rosewoodbranded hotels to NIB some two weeks ago, and was working with the government and its agencies to resolve the matter. “We’ve finalised the list to the government,” Mr Sands said. “We continue to work with them on the Baha Mar side, and have forwarded the list to the government so we’re waiting on the outcome of that. “We’re trying to determine what the problem is. We’re not certain what caused it. It’s unfortunate that it got to this particular point, but we’re working to resolve it. It’s fair to say the government is in possession of our list. It’s been in for a couple of weeks.” One Melia Nassau Beach resort employees spoken to Tribune Business last night said they had yet to be notified that their $100 per week benefit had been sent or was in their bank account. “They aren’t saying anything to the employees,” they added. Mr Sands spoke out after Brensil Rolle, minister with responsibility for the public service and National Insurance, told Tribune Business that the Baha Mar had failed to supply the government with a list of still-furloughed employees at its Grand Hyatt, SLS and Rosewood brands as well as the Melia Nassau Beach resort.

SEE PAGE 6

$4.03

DPM targets ‘missing COVID puzzle piece’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

T

HE deputy prime minister yesterday pledged that the government’s upcoming Fiscal Strategy Report will seek to provide “the missing piece of the puzzle” to its COVID-19 economic recovery plan. K Peter Turnquest acknowledged to Tribune Business that the Minnis administration needed to “communicate a more detailed” strategy to the Bahamian people - especially how it would deal with the immediate short-term consequences if the tourism industry failed to fire as expected. Agreeing that there needed to be “more flesh” on near-term economic plans, Mr Turnquest said the report - which was due to be tabled in the House of Assembly tomorrow but has been delayed - will seek to fill in the gaps and provide a comprehensive strategy on the way forward. “I think it’s true to say that we have not communicated to the public as detailed a plan as they

• Concedes recovery strategy needs ‘more flesh’ • Says short-term alternatives to tourism missing • Again rejects new and/or increased taxes move

K PETER TURNQUEST might want and need,” he told this newspaper, “but, at the same time, we’ve been working with the Economic Recovery Committee to determine a strategy for the way forward. “I think the piece missing, if I were to criticise our efforts, is the immediate short-term piece: What do we do if tourism does not turnaround as we anticipate? What do we do in the interim while we wait?” Mr Turnquest said the recently-unveiled $5m grant funding partnership,

announced between the Small Business Development Centre (SBDC) and Ministry of Agriculture and Marine Resources, to boost production among farming and fisheries entrepreneurs was one component of the government’s short-term recovery plan. He identified another as the so-called “Blue Economy”, which involves maximising economic growth and environmental sustainability through controlled exploitation of this nation’s marine industry, and is the focus of the InterAmerican Development Bank’s (IDB) recent $200m loan to the government. “There are other pieces to that puzzle that need more flesh and to be communicated to the Bahamian people,” Mr Turnquest added: “That will hopefully address the short to medium term. That may be the part that needs more flesh to satisfy persons looking for that road map.”

AN Abaco resort manager yesterday warned the government it will “add insult to injury” if it fails to extend the Hurricane Dorian tax breaks that are due to expire at year-end 2020. Molly McIntosh, the Bluff House Beach Resort and Marina’s general manager, told Tribune Business the government needed to see a six-month to one-year extension of the Special Economic Recovery Zone benefits as an “investment” that would ultimately more than pay for itself by creating a stronger Abaco economy and therefore more revenues for the Public Treasury long-term. She revealed that residents and businesses are “are all going nuts” as they desperately race to

He said the Ministry of Finance “is working as we speak” on finalising the Fiscal Strategy Report, which sets out the government’s fiscal and economic projections. The deputy prime minister said the delayed tabling reflected the fact he is presently out of the country as well as the need “to wrap up consultation on various pieces of it”. The governmentappointed Economic Recovery Committee’s report largely focused on medium to long-term objectives, as opposed to the short-term. While many observers argue that The Bahamas’ tourism dependence means it has little choice but to hope for a strong, swift rebound in this sector, the committee’s near-term focus was largely on approving all feasible investment projects still in the pipeline.

SEE PAGE 6

‘Worrying’ growth in uninsured accidents By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net BAHAMAS First’s top executive yesterday revealed that COVID-19 restrictions have produced a “noticeable” drop in motor vehicle claims despite a “worrying” increase in uninsured driver accidents. Patrick Ward, the BISXlisted property and casualty insurer’s top underwriter, told Tribune Business that despite the overall decline in such payouts there had been a marked uptick in accidents involving drivers who lacked the proper coverage. Suggesting this was at least partially due to the pandemic’s impact on jobs and incomes, as well as negligence by owners when it come to letting others use their vehicles, Mr Ward said innocent victims were frequently being left with no recourse when it came to financing repairs to their cars and/or medical bills.

• Insurer sees rise in drivers with no coverage • But COVID causes ‘noticeable’ drop in claims • ‘Pushing’ to finish Dorian payouts by year-end

PATRICK WARD “It’s quite a noticeable difference in the frequency of claims,” Mr Ward told this newspaper, as Bahamas First unveiled its financial results for the nine months to end-September 2020. “We have less claims reported than would typically be the case for that period of time simply because there are less vehicles on the road.”

The insurer, in its message to shareholders, said the falloff had been “brought about by driving restrictions in response to the pandemic”. Lockdowns and curfews, together with the tourism industry’s closure and that of other businesses, and more staff working remotely from home, have all reduced the number of vehicles on New Providence’s overcrowded streets. While Mr Ward produced no figures for the decline in vehicle accident claims, he was quick to add: “One worrying concern is that even though that’s the case, we’ve seen quite a number of accidents where the other party does not have insurance either because coverage has expired or the driver is not

Don’t ‘add insult to injury’ over Dorian’s tax breaks By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

$4.03

• Abaco resort manager says extension an ‘investment’ • Says residents ‘all going nuts’ to beat concession end • DPM ‘comfortable’ vehicles will be taxed from year-end order essential home/office appliances, furnitures and fixtures within the remaining six weeks before the import duty and VAT exemptions expire, with many unlikely to obtain what they need before that deadline. Ms McIntosh explained that manufacturing delays and backlogs in the US, resulting from the COVID19 pandemic, meant increased waiting times pushing the arrival of goods that Abaconians require to outfit their homes and businesses back into 2021. Adding her voice to those of Ken Hutton, the Abaco Chamber of Commerce’s president, and Roscoe Thompson, the Marsh

Harbour/Spring City Council’s head, she pleaded with the Minnis administration to give the island more “to get back on its feet” given that Dorian-related reconstruction has been delayed by eight months of COVID19 related restrictions and lockdowns. Disclosing a letter she plans to send to both the Ministry of Finance and Ministry of Tourism, she told this newspaper: “We are all going nuts here in Abaco right now trying to purchase things we need to open or to get back in our homes for the New Year. Many people are finding it impossible to order and get things in before the end of the year.

“Due to COVID-19 restrictions and business closings and slow downs in the US and worldwide, manufacturing has been impacted and there are longer than normal waiting times for items to be shipped. If the duty and VAT exemptions could be extended for even six months it would help businesses, as well as home owners and renters, be able to start to get back to normal and operational in order to welcome tourists back to the area. “We are asking the government to look at extending the exemptions, and to see it as

SEE PAGE 5

covered under that particular policy. “We’ve seen a bit of an uptick in the number of those cases in recent times. Unfortunately, there are people driving who are not covered or drivers who are not covered by the policy attached to that particular vehicle.” Mr Ward said he was unable to provide figures for the number of such accidents, or the level of increase, adding: “There’s no benchmark. It’s a little bit more anecdotal in the sense that we’ve seen such accidents coming up more regularly than they normally would. “It’s a concern for the insurance industry, but even

SEE PAGE 4

$3.95 Water Corp debt to major supplier slashed to $15m By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Water & Sewerage Corporation managed to cut the debt owed to its main BISX-listed supplier by $3.3m in October after making zero progress during then first nine months of 2020. Consolidated Water, the operator of the two New Providence reverse osmosis plants that supply the water consumed by the stateowned utility’s customers, last night revealed that the debt owed to it had been cut to $15.1m at end-October 2020. Its corporate filings with the US Securities & Exchange Commission (SEC), disclosing its third quarter results, revealed that at end-September the sum owed by the Water & Sewerage Corporation was the same as it had started the year with -$18.4m. Consolidated Water also revealed that more than three-quarters of the sum owed to it was “delinquent”, meaning it is 90 days or more past due, with the $3.1m arrears reduction in October likely to have been paid on the Corporation’s behalf by the government using taxpayer monies. “Consolidated Water (Bahamas) accounts receivable balances (which include accrued interest) due from the Water and Sewerage Corporation of The Bahamas amounted to $18.4m as of September 30, 2020, and $18.4m as of December 31, 2019,” the company’s filings stated. “Approximately 77 percent of the September 30, 2020, accounts receivable balance was delinquent as of that date. The delay in collecting these accounts receivable has adversely impacted the liquidity of this subsidiary. As of October 31, 2020, Consolidated Water (Bahamas) accounts receivable from the Water & Sewerage Corporation totalled approximately $15.1m.” Consolidated Water added: “We believe the delays we have experienced in collecting Consolidated Water (Bahamas) receivables were extended due to the impact of Hurricane Dorian, which devastated the northern Bahamas in September 2019, and the severe economic impact of the COVID-19 pandemic on The Bahamas government’s revenue sources. “If Consolidated Water (Bahamas) continues to be unable to collect a

SEE PAGE 2


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.
11172020 BUSINESS AND FEATURES by tribune242 - Issuu