11222018 BUSINESS

business@tribunemedia.net

THURSDAY, NOVEMBER 22, 2018

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Deficit overshoots DPM’s final prediction by $105m

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

T

HE Government’s 2017-2018 fiscal deficit overshot the deputy prime minister’s year-end forecast by $105m due to a late spending “ramp up”, a top official admitted yesterday.

Marlon Johnson, the Ministry of Finance’s financial secretary, told Tribune Business there was “a much higher than anticipated spike” in spending towards the fiscal year-end because multiple government agencies were seeking to pay bills in the period when they were incurred.

He added that efforts to

New pilot licensing set for early 2019 in hacker attack

By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net AVIATION regulators will roll-out new pilot licensing requirements in the 2019 first quarter, its top executive revealing that a crack down on illegal charter operations is now a “matter of urgency”.

Charles Beneby, the Bahamas Civil Aviation Authority’s director-general, told Tribune Business: “We have been working constantly to develop, where necessary, new regulations that we intend to roll-out very soon regarding new licensing requirements for Bahamian pilots.

“We are looking to introduce a new security directive that puts certain requirements on all operators at LPIA (Lynden Pindling International Airport) initially, and then expanding out to other islands. It is very actively being worked on, and I

SEE PAGE 5

* ‘Thrown off’ by spending ‘ramp up’ * ‘Red ink’ totalled $415m, 30% above goal * Govt ‘tightens up oversight’ for accuracy

MARLON JOHNSON

KP TURNQUEST

prevent the “carry over” of unpaid spending obligations into the next fiscal year had

effectively blown KP Turnquest’s prediction, made on May 30 when he presented

THE first-ever fiscal strategy report was yesterday branded “a sea change” that will hold current and future administrations to account for their stewardship of The Bahamas’ finances.

Marlon Johnson, the Ministry of Finance’s financial secretary, told Tribune Business that the Report - tabled in the House of Assembly - will “set the standard” and establish the benchmark against which every government’s fiscal performance can be measured.

Besides complying with the newly-passed Fiscal Responsibility Act’s requirements,

SEE PAGE 5

Govt not adjusting web shop revenue forecasts

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Government has refused to adjust its gaming revenue projections despite the web shop industry’s legal challenge to the increased taxation, arguing that its case is “on solid ground”.

Its first-ever fiscal strategy report, tabled in the House of Assembly yesterday as part of compliance with the newly-passed Fiscal Responsibility Act’s requirements, admits that the web shops’ Supreme Court action “poses a potential threat” to its revenue forecasts.

However, the Minnis administration believes the strength of its case is sufficient reason not to adjust its estimates yet, with the gaming sector - hotel casinos as well as web shops - forecast to generate $70m in revenue for the Public Treasury this fiscal year.

“The recent litigation launched against the Government by the operators of the gaming houses poses some measure of threat to revenues as budgeted,” the fiscal strategy report acknowledges.

‘A sea change’ for fiscal accountability

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

the 2018-2019 budget, that the 2017-2018 deficit would come in at $310m.

The Government’s firstever fiscal strategy report, tabled in Parliament yesterday to ensure compliance with the newly-passed Fiscal Responsibility Act, confirmed that the actual 2017-2018 deficit was $414.9m - almost $105m higher than Mr Turnquest’s forecast made just five-anda-half months ago.

The outcome was also

Mr Johnson said the report also creates a heightened level of transparency that will enable all Bahamians to assess on a timely basis how the Government is using their tax dollars.

“It is a sea change,” he told Tribune Business. “I hope we see, in the quality of reporting and level of information that it is a real sea change.

It truly is a milestone for the professionals at the Ministry of Finance, who produced a real quality report and have set the standard for reporting in the future.

“It requires the Government, going forward, to annually document clear targets related to annual

SEE PAGE 10

•TAXATION CASE ‘ON SOLID GROUND’ •ADMITS SECTOR’S ACTION ‘POSES THREAT’ •TARGETING $79.1M REVENUE BY 2022 “However, the Government believes that it is on

solid ground as to the legality and feasibility of the new tax measures announced in the May budget. Accordingly, revenues from the gaming houses remain at the levels projected in the budget.”

Total gaming industry taxes exceeded 2017-2018 budget projections by 35.8 percent, coming in at $37.2m

SEE PAGE 6

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Govt pledges no more VAT hikes before election

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Government yesterday pledged there will be no further value-added tax (VAT) hikes before the next election, with the 12 percent rate deemed sufficient to achieve its revenue goals.

The newly-released Fiscal Strategy Report, tabled in the House of Assembly, said the 4.5 percentage point VAT rate increase should boost revenue yields as a percentage of Bahamian GDP to the point where they are sufficient to meet “the needs of modern governance”.

The Report projects that the rate hike will result in a 55.7 percent increase in VAT collections, which are forecast to rise from $680.6m in 2017-2018 to $1.06bn this current fiscal year, bringing The Bahamas’ revenue yields in line with those of other Caribbean nations.

“As amply demonstrated in recent years, the revenue yield of the tax system was grossly inadequate to the needs of modern governance,” the fiscal strategy report said. “The various revenue measures in the 2018-2019 budget, including the increase in the rate of VAT from 7.5 to 12 percent, are projected to secure a boost in revenue collections from 16.1 percent to 19.9 percent of GDP. “While lagging regional

•NO BUSINESS LICENCE ALTERNATIVE BEFORE 2020 •WTO TARIFF CUTS LIKELY TO START IN 2020-2021 •FIVE-YEAR TRANSITION TO TRADING REGIME norms at that level, the increase in the tax yield is nonetheless appreciable and is poised to make a significant contribution to the attainment of the Government’s key fiscal objectives.

As such, the Government is of the view that no further increases in the VAT rate will be entertained over the balance of its current mandate.”

That pledge is especially well-timed following yesterday’s protest outside the House of Assembly over rising living costs sparked by both the VAT increase and soaring electricity bills.

The Government has also tied its fiscal policy to political goals in other ways, namely by seeking to pay off the $360m in unfunded arrears payments by 2021 a year before it has to call a general election.

Outlining further revenue considerations, the fiscal strategy report reiterated that “no policy commitment” has been made to any business licence fee

SEE PAGE 4

PAGE 2, Thursday, November 22, 2018

THE TRIBUNE

DESIGNING THE FULL PRODUCT PACKAGE

L

ABELS are the most important part of a product package. Indeed, it is not an exaggeration to say “labels are the heart and soul of a product package”, especially when the product is a food item, medicine, machinery or a chemical product.

Label design is therefore essential to a company’s marketing efforts. Product choice by a consumer depends on a range of factors, such as income and taste. But the one concern that does not change for shoppers is the importance of information on a label.

I believe consumers will not even think of buying a product that is lavishly packaged but has no labels.

LABEL MEANING Consumers are the main target for any product, so it is necessary to understand everything related to this. Labels play a vital role in making or breaking a product’s image in the market.

ASSURANCE From a consumer perspective, what is on the outside is a clear reflection of what is inside. If a company fails to provide a good quality label, it will certainly fail to convince the customer that the product is a good quality item.

The Art of Graphix

BY DEIDRE M BASTIAN

Knowledge of the brand name gives the customer a feeling of connection, which builds trust. Trust is the basis of all relationships, including the seller/ producer and the customer.

SAFETY When a consumer picks up a product from a shelf and finds no description of the contents, they will not feel safe using it. Many people have allergies, and if there is no information or ingredients listed, they may be sceptical about the purchase. So, how can a label design help you in creating a winning product?

ATTRACTIVE Keep the colour balance of the packaging design

easy on the eyes, yet eyecatching. If a product fails to attract customers to come and pick it up, they may never have had an opportunity to read the label or buy the product.

LEGIBLE After the attraction the customer gets to finally read the label. A bit of creativity in label design is good, but the fonts should be legible for easy reading.

LOGO RECOGNITION Your logo/brand name identity is your introduction to shoppers.

Therefore, ensure your logo design is clear and placed strategically on your product. The moment a shopper makes eyecontact with your product, they should know which brand’s product they are looking at.

After the recognition they will then proceed to check the price, manufacturing and expiry dates.

If your label information is playing hide and seek with the customer, they may place your product back on the shelf. Ensure information is easy to locate and designed with a different font from the surroundings.

IDENTITY No label means no identity. Why would a customer purchase your product with no identity? Can you

imagine a store full with toothpaste without labels?

How will a customer distinguish the brand?

If your product is wellpackaged but missing the identification label, the customer will not be assured that the product is safe and may not purchase it. Laws mandate manufacturers to put labels on their products for this very reason.

Labels ultimately play a vital role in making or breaking a product’s image in the market. If a company fails to provide a good quality label, it certainly fails in convincing the customer that the product is marketable. Until we meet again, fill your life with memories as opposed to regrets. Enjoy life and stay on top of your game!

NB: The columnist welcomes feedback at deedee21bastian@gmail.com.

ABOUT THE COLUMNIST: Deidre Marie Bastian is a professionallytrained graphic designer/ marketing co-ordinator with qualifications of MSc, BSc, ASc. She has trained at institutions such as: Miami Lakes Technical Centre, Success Training College, College of The Bahamas, Nova South Eastern University, Learning Tree International, Langevine International and Synergy Bahamas.

TOURISM’S RENEWED FOCUS ON ATLANTA TRAVEL MARKET

FROM left: Junkanoo performer; Nikki Barjon, The Barjon Group; Garbrielle Archer, Bahamas Tourist Office, Atlanta; Astra Armbrister-Rolle, consul general for The Bahamas in Atlanta; and Junkanoo performer.

US TRAVEL professionals were treated to the sights and sounds of Junkanoo as the Bahamas Tourist Office in Atlanta moved to generate increased business from the area.

The event, held at the Delta Flight Museum in Hapeville, Georgia, and organised by area manager, Garbrielle Archer, and her team was designed to update 100 Delta preferred travel agents, Bahamas specialists and media on new developments in The Bahamas.

Private sector partners gave updates on Nassau/Paradise Island, Grand Bahama and the Family Islands. Sponsor giveaways included prizes from partners including Viva Wyndham Fortuna Beach; Valentine’s Resort & Marina; Abaco Club at Winding Bay; and SLS Baha Mar. “Events like tonight are important, firstly, because they allow us to update the product and destination knowledge

of our travel agents, allowing them to be ‘in the know’ and well equipped to sell the islands of The Bahamas. Secondly, it allows us to interact one on one with our top producing agents, thank them for the outstanding job they are doing and encourage them to continue to sell The Bahamas,” said Ms Archer.

“The information given was very concise and I did learn a lot. The venue was amazing ... loved everything about it as I was exploring. The food was amazing; some of the best I’ve had at a travel event. The Bahamian Junkanoo performers were such a treat I video’d the entire thing up close.” said Jennifer Goza, owner of TimeOut Cruises and Tours.

Pushing the message that “It’s Better in The Bahamas,” the event was a part of the Ministry of Tourism’s ongoing efforts to reconnect and reengage with the travel agent community.

THE TRIBUNE

Thursday, November 22, 2018, PAGE 3

MORTON DETAILS ‘CONTINGENCIES’ FOLLOWING UNION’S STRIKE VOTE

By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net MORTON Salt (Bahamas) yesterday said it has “well-defined contingency plans” to cope with any industrial action after unionised line staff voted overwhelmingly in favour of a strike.

Jennifer Brown, president of the Bahamas Industrial, Manufacturers & Allied Workers Union (BIMAWU), speaking on the Tuesday strike poll, said: “We had 68 persons who voted ‘yes’ and two who voted ‘no’.

“Now we wait for our strike certificate, and we will do what we have to do.

Based on our last meeting with them they were not prepared to move on their offer, which to us is unacceptable. I could see if they were not making any money but they are.”

John Pinder, director of labour, confirmed the strike poll results and told Tribune Business: “As long as their matter is not before the Industrial Tribunal they can go ahead and do what they have to do, once they get the strike certificate, which is issued by the Minister of Labour.”

Morton Bahamas, responding to Tribune Business inquiries, warned that any industrial action threatened to undermine its competitiveness. Inagua’s largest employer said in a statement: “At Morton Bahamas, we’re committed to building productive working relationships with our employees. That’s why we are disappointed that we have not reached an agreement with the union

despite our good-faith negotiations to provide a comprehensive and competitive package.”

The company added: “Since February, Morton Bahamas met with union representatives in four separate sessions, with multiple meetings per session, in an effort to reach a new agreement and we’ve also worked together with the conciliator to help resolve the differences.

“Despite our many requests, the union has not presented a counter proposal to our offer and instead moved to a strike vote. This undermines our goal to remain a vibrant and competitive employer on the island, an economic engine in the region and a good corporate citizen as we’ve been for generations.”

Morton Salt said it has plans in place to minimise disruptions that might result from a work stoppage. “No one likes a work stoppage, but as the trusted authority on salt in North America with one of the largest production and distribution networks in the industry, Morton has the footprint and flexibility to continue delivering high quality products to our customers and consumers,” it added.

“We have very solid supply plan in place that leverages the broader Morton network, giving us the flexibility to adjust our production and distribution processes as appropriate.

Across all of the company’s facilities we have welldefined contingency plans in place to sustain our operations in the event of a work stoppage.”

$41m instant financing for Disaster Relief Fund

By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net THE Prime Minister yesterday said reform of the dormant bank accounts regime will immediately release $41.3m to help create a Bahamian Disaster Relief Fund.

Addressing the proposed changes to key financial services legislation, Dr Hubert Minnis said they would allow funds contained in accounts that have been unclaimed for “a minimum” 17 years to “be pooled, brought under the control of the Treasurer, and employed for the benefit of the people of The Bahamas”.

Pointing to the potential financial benefits, Dr Minnis said that at end-June 2018 there were 42,452 dormant accounts with a combined worth of $88.716m.

“Of the total number, 34,528 were Bahamian dollar accounts which were valued at $18.921m,” he told the House of Assembly. “Therefore, the average size for Bahamian dollar accounts was $548 compared with $7,837 for US dollar equivalent balances.

“There were 32,542 accounts, or 77 percent of the aggregate number of accounts, having a value of $500 or less for a total of $3.875m in dormant funds.

Of this total, Bahamian Dollar accounts represented 80 percent or $3.116m.”

He added that dormant bank accounts with funds exceeding $500, and meeting the proposed 17 years dormancy threshold, totalled 5,724 with a collective value of $37.4m. “Of this amount, Bahamian dollar balances numbered 2,994 at a value of $7.584m, which represented 52.3 percent of the total number of accounts, but only 20.3 percent of the value,”

PRIME MINISTER DR HUBERT MINNIS Dr Minnis said.

“By comparison, balances in US dollar equivalents, at $25m and 2,519 in number, accounted for a lesser 44 percent of the number of accounts but a dominant 67 percent of the value.”

He added: “Since inception, that is, since 1989, claims have totaled $29.8m or approximately onequarter of the $118.5m in original balances transferred to the Central Bank. The corresponding percentage for Bahamian Dollar claims is 19.2 percent and, for the US dollar equivalent component, 22 percent.

“We are advised by the Central Bank that, based on these legislative proposals, the Treasurer would receive an initial flow of at least $41.3m assessed at the end of June 2018, and a further steady stream of transfers as funds meet the 17-year threshold for extinguishment of claims should they not be claimed.”

Dr Minnis said these funds will be used to finance the proposed Disaster Relief Fund, rather than for the Government’s normal budgetary operations, given the urgency with which The Bahamas needs to create

a buffer against the multimillion dollar reconstruction costs inflicted by increasingly frequent and strong hurricanes.

“It is not my Government’s intent to view this as a windfall for use in meeting normal budgetary operations,” the prime minister confirmed. “As a responsible Government, we are proposing that these funds be utilised for establishing the proposed Disaster Relief Fund that was foreshadowed in the most recent budget exercise.

“As a country, we are faced with the increased incidence and severity of hurricanes, which adversely affect fiscal sustainability and economic resilience. Members will

recall that the International Monetary Fund (IMF), in its recent Article IV Report on The Bahamas, has placed the optimal size of such a fund at between two percent and four percent of GDP; that is, some $200 to $400m.

“We constantly receive inquiries from credit rating agencies, investors in the Government’s international bond and institutional lenders about definitive measures being taken by the Government to mitigate the risks associated with natural disasters, which could create havoc on our fiscal situation.”

Dr Minnis said insurance provided through the Caribbean Catastrophe Risk Insurance Facility (CCRIF) is not sufficient to meet all The Bahamas’ needs, and added: “Unfortunately, what used to be one in 100 year tropical events are now one in ten year tropical events.

“So for The Bahamas it is unfortunately not a matter of ‘if’ we will be hit by a major storm in the medium term, the question is only ‘when’. Any responsible government must plan accordingly and, when presented with an opportunity such as this, it must resist the temptation for shortterm measures, and instead do the right thing with this windfall, and for the right reasons.”

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PAGE 4, Thursday, November 22, 2018

THE TRIBUNE

Govt pledges no more VAT hikes before election FROM PAGE ONE alternative amid private sector/accountant concerns that the new regulations represent an attempt to introduce a corporate income tax regime by stealth.

“Business licence is one area that has long been

the target of dissatisfaction on the part of the private sector, partly because it taxes turnover irrespective of profitability,” the fiscal strategy report conceded. “It has been argued that this tax, as structured, effectively represents an inefficient tax on consumption and has no role where an efficient VAT is in place.

“Suggestions have been advanced that a business income tax should be introduced to replace the business licence tax and would represent an improvement in the efficiency and fairness of the tax system. In an exploratory initiative, the Government commissioned a private sector consulting

firm (Deloitte & Touche UK) to undertake a detailed assessment of the appropriateness of, and options for, alternative forms of business tax.

“As was highlighted in the 2018-2019 budget, the objective is to obtain an empirically based assessment of tax options and to canvass the views of a

full range of Bahamian stakeholders. No policy commitment has been made to the introduction of any alternate form of tax at this juncture.”

The fiscal strategy report said the level of development work required before any business licence alternative was implemented meant it cannot be introduced in the short-term, and ant replacement will “very likely extend beyond the time horizon of the 2019-2020 budget”.

Identifying other potential revenue reforms, it added that “it may be prudent to assume” that some import tariff rates could be cut as early as the 20202021 fiscal year due to The Bahamas’ planned accession to full World Trade Organisation (WTO) membership.

Rules-based trading regimes regard import tariffs as barriers to commerce rather than revenueraising mechanisms, and The Bahamas will have to lower its average Customs duty rate from 32 percent to around 15 percent “in a relatively short transition period” lasting no longer than five years.

The Government, seeking to soften the blow of its VAT hike, promised to return $100m to Bahamian citizens and businesses through import and excise tax reductions as a reward for accepting austerity measures that will enable the Government to pay off $360m in unfunded arrears debts.

In reality, WTO membership was always likely to force such reductions.

Still, the fiscal strategy report said: “These reductions will be designed to

advance the objective of rebalancing the tax burden between the provision of goods and services and reduce the attendant distortionary impacts. They will also accommodate the reductions in import taxes attendant upon accession to the WTO. “The current Customs duty rate structure averages approximately 32 percent, and could be subject to an aggregate reduction to around 15 percent over an anticipated relatively short transition period. While negotiations are still underway, it may be prudent to assume that the duty reductions could begin as of the 2020-2021 fiscal year and be completely implemented within five years.

“The revenue losses stemming from these reductions will, to some extent, be compensated with revenue measures in other areas, so that the net revenue impact is contained.”

The fiscal strategy report exposed how next year’s 2019-2020 budget will have to “address other fiscal pressures looming on the horizon”, including those driven by the WTO and other external forces.

Besides membership in rules-based trading regime, The Bahamas also faces demands to align its tax system with the European Union (EU) and Organisation for Economic Co-Operation and Development’s (OECD) anti-tax evasion offensives.

This will force The Bahamas to remove so-called “ring fencing, and to ensure that any incentives or preferential treatment is linked to significant activity in The Bahamas”.

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THE TRIBUNE

Deficit overshoots DPM’s final prediction by $105m FROM PAGE ONE $94.6m higher that the $320.2m deficit projected in the initial 2017-2018 budget, coming in 29.6 percent above target, and meaning the Government incurred considerably more “red ink” than initially thought. As a result, it will have to work much harder to meet this year’s $237m deficit goal and comply with the Fiscal Responsibility Act’s mandate.

Mr Johnson, though, described the frequent eight and nine-figure differences between the Government’s fiscal year-end deficit estimates and the actual outturn as “a chronic issue” that had plagued multiple administrations.

To correct this, he revealed the Ministry of Finance is now meeting with key government agencies on either a monthly or bimonthly basis to better track their spending and head-off negative trends “we believe to be unwise”.

The financial secretary added that it was also working closely with the Ministry of Works, and other agencies that received capital funding, to “reforecast” spending projections as the fiscal year progressed while also “monitoring the commitment ledger much more closely”.

Mr Johnson said the “tightened up oversight” will ensure the Government’s year-end fiscal forecasts are more accurate, while pointing out that the $415m deficit for 2017-2018 still represented a “substantial cut” of more than one-third to the “red ink” incurred by the Christie administration during its final year in office.

The explanation for the latest deficit overshoot may not satisfy everyone, though, given that the revenue and spending figures detailed in the fiscal strategy report largely match those outlined by Mr Turnquest when he made his budget presentation.

“Provisional data on the fiscal outturn for fiscal year 2017-2018 reveal that the performance was somewhat weaker than projections presented at the time of the 2017-2018 budget,” the Government’s Fiscal Strategy Report said.

“The deficit widened to an estimated $415m relative to the budget of $320m, and equated to an estimated

3.3 percent of GDP compared to the forecasted 2.6 percent. However, this still represented a sharp improvement from the $661m budgetary shortfall in 2016-2017, which stood at an elevated 5.5 percent of GDP. Overall, the revenue outcome was some 5.1 percent below budget expectations, while total expenditures were lower by 0.7 percent.”

The deficit outcome, which measures by how much government spending exceeds its revenue income, was also much higher than the deputy prime minister’s May 30 prediction.

“The GFS deficit outturn in 2017-2018 is projected at $310m, a net improvement of $13m over the budget forecast of $323m,” Mr Turnquest said then.

Mr Johnson told Tribune Business yesterday that the expanded deficit resulted from government ministries and agencies ensuring that all spending commitments made during the 2017-2018 fiscal year were met before the period ended.

“The reality is that towards the end of the year we saw a ramp up in expenditure in May and June, with agencies trying to meet the ministry’s mandate to come current with commitments made in that year,” he explained.

“We wanted to avoid the carry over effect which led to that $300m unpaid arrears situation [from the 2016-2017 fiscal year]. As agencies made sure they utilised the funding available, and paid off as much of their obligations as possible, we saw a much higher than anticipated spike in the last few months which threw the estimates off.”

Mr Johnson said the gulf between the Government’s year-end deficit estimate and actual performance was nothing new, with the Ministry of Finance now taking action to better align budget forecasts with outturn.

“The ministry is doing quite a bit to avoid this chronic issue,” he added.

“We see this phenomenon where the Government comes with a budget presentation, makes a prediction, and the prediction does not pan out. We have to do a better job in forecasting what the actual spending and deficit will be.”

Research by Tribune Business uncovered that the former Christie

administration encountered similar problems, most notably for 2014-2015, when then-prime minister Perry Christie projected that the deficit would be $198m.

It ultimately came in at $381m, a negative variance of $183m.

This pattern was repeated for 2015-2016, when the $310m deficit was more than double Mr Christie’s year-end forecast of $150m.

Mr Johnson said the Ministry of Finance “feels confident” that the “operational changes” it has made, with more controls and interaction with all other government agencies, will rein in unanticipated capital and fixed-cost spending.

And he suggested that the higher-than-expected deficit for 2017-2018 still represented some positives, given that it was still much lower than the prior year’s outcome and indicated that government ministries were taking seriously instructions to pay off bills in the years they were incurred.

“We feel pretty confident that the level of carry over has been minimised,” Mr Johnson told Tribune Business, noting that this had contributed to the $661m fiscal deficit in 2016-2017.

“We’re still seeing some carry over, but want to make sure that’s managed.

“What we’ve found happening is that spending in the current year is used to address bills from the previous year, and we’re managing that much more closely. We’ve tightened up the oversight quite a bit to make sure we’re doing a better job forecasting spending patterns towards the end of the year.”

The Financial Secretary added that 2017-2018’s $415m deficit still represented a more than one-third, or 37.2 percent, year-over-year decline on the $661m deficit run-up by the last Christie administration.

“It really was a substantial step,” Mr Johnson said

Thursday, November 22, 2018, PAGE 5 of the narrowed deficit.

“The next step is [a deficit of] $237m. Even though we were off we were very encouraged that the deficit is substantially reduced and continues to trend downwards.”

The fiscal strategy report blamed last year’s “fiscal underperformance” on “the less buoyant outturn for recurrent revenue” even though the economy grew by 1.4 percent in line with forecasts. Total revenues were $110m below forecast at $2.042bn, equivalent to 16.3 percent of GDP as opposed to the target 17.2 percent.

While VAT and motor vehicle taxes exceeded forecast, “licences to conduct special business activities (in large measure business licences) were some $53m, or 32 percent, lower than projected and excise taxes were $18m under forecast”.

“Below budget outcomes were also posted for taxes on international trade and transactions, of $41m (8.6 percent), and taxes on property of 14 percent or $20m. Such lacklustre performance of revenue is a matter of pressing concern that is aggressively being addressed by the Ministry of Finance and its Revenue Enhancement Unit.”

These trends were noted in the May budget presentation, along with recurrent spending coming in $55m

below target as a result of the Government’s acrossthe-board ten percent spending cut relative to 2017-2018 allocations.

“As a result, expenditure on the wage bill was reduced during the fiscal year by some $62m, or eight percent, from budget,” the Fiscal Strategy Report said. “Interest payments, however, exceeded the budgeted allocation by $21m, primarily consequent on commitments arising from new debt obligations incurred during the period.

“Outlays on goods and services were $31m or seven percent above budget, and considerably exceeded the initial savings foreshadowed during the 2017-2018 mid-year budget presentation. The hike in outlays during the closing month of the fiscal year reflected the Government’s insistence on agencies settling their payment obligations within the appropriate fiscal year, to the extent possible, as to minimise ‘carry over’ into the ensuing fiscal period.”

As a result, the Government’s direct debt increased by $372.4m to $7.245bn during the 2017-2018 fiscal year. As a percentage of Bahamian gross domestic product (GDP) it rose by 2.9 percentage points, from 54.8 percent to 57.8 percent - putting it further away from the 50 percent target set in the Fiscal Responsibility Act.

New pilot licensing set for early 2019 in hacker attack FROM PAGE ONE think it will be in the first quarter of next year.”

Following a plane crash off Andros in January 2018, which claimed the lives of six people, the Bahamas Civil Aviation Authority pledged an unprecedented effort to clamp down on illegal charter operations by embracing technology, involving law enforcement and increasing surveillance to identify and prosecute law-breakers in the aviation industry.

Captain Beneby said: “We have a number of initiatives that we will roll-out in the next few months.” He acknowledged that some of those initiatives have come in the wake of the Andros crash, adding that “I can say that but it is also an evolution”.

Speaking further to the illegal charter or “hacking” issue, Captain Beneby said: “It’s a problem that has been around a lot longer than I have been here and we agree that, as a matter of urgency, we have to do something about it.”

Sky Bahamas chief executive, Captain Randy Butler, has long called for a “crackdown” on illegal hackers, warning of the potential safety risk for both Bahamians and tourists.

• ••• • • •• •• • • ••• •••••

BLOWOUT SALE

20% Children’s Books and Bibles 20% Toys 25% Bags just to name a few 50% Novels

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PAGE 6, Thursday, November 22, 2018

THE TRIBUNE

Govt not adjusting web shop revenue forecasts FROM PAGE ONE

compared to initial projections of $27.4m. There is little doubt that the Government sees web shops as an important and lucrative revenue source, while also professing that the new “sliding scale” tax structure and five percent “patron

tax” are intended to curb the sector’s growth and antisocial impact.

The Ministry of Finance is forecasting a steady increase in combined casino/web shop revenues over the next three fiscal years, with the industry’s contribution to the Public Treasury increasing by $9.1m or 12.9 percent compared to the

2018-2019 fiscal year.

The Government’s medium-term revenue estimates show gaming revenues growing steadily to $73.5m in 2019-2020, before increasing further to $76.5m in 2020-2021 and $79.1m in 2021-2022.

Its confidence in its revenue projections comes despite missing out on

between $8m to $12.6m in extra web shop taxation during the 2018-2019 fiscal year’s first quarter as a result of the legal battle mounted by leading chains.

“Gaming tax receipts of $6.2m tracked moderately below the $8.9m of the prior year, and excluded the potential uplift from the new schedule of taxes on gaming houses and the five percent stamp tax on patrons because of implementation delays,” the Ministry of Finance revealed in its first quarter update. “In combination, these new measures are budgeted to yield an incremental $4.2m monthly in receipts.”

Dionisio D’Aguilar, the Cabinet minister responsible for gaming, yesterday indicated in the House of Assembly that web shops were still being taxes under the previous structure. Both himself and Carl Bethel QC, the attorney general, have tabled amendments in the House of Assembly designed to bring the “sliding scale” structure into effect and address the “wrong terminology” used in the previous version.

The definition previously employed to describe the basis for calculating what web shops should pay could

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have been interpreted as meaning that the different sliding scale rates, from 20 percent up to 50 percent, should be applied to “all the money” that patrons pay - rather than, as the Government intended, be based on that sum minus the winnings paid out by web shops.

However, the Government and web shop industry have yet to resolve their differences over the five percent stamp duty levy on customer deposits and overthe counter lottery ticket sales. Attorneys Wayne Munroe QC and Alfred Sears QC, who represent the industry, confirmed this weekend that no progress will be made until the latter returns from an overseas trip and is able to meet with the Government.

The Minnis administration, meanwhile, is predicting that its consolidation strategy will exceed the deficit targets set in the Fiscal Responsibility Act, with the Government achieving its first-ever budget surplus by 2020-2021 if all goes to plan.

“For the outer years of the budget forecast, the projected outcomes are slightly better than the targets,” the fiscal strategy report said. “In 2019-2020, a deficit of 0.8 percent of GDP is projected against a target of one percent and, in 2020-2021, a small surplus is expected to be posted versus a deficit target of 0.5 percent of GDP. “A further small budget surplus, amounting to an estimated 0.1 percent of GDP, is projected for 2021-2022. Further, the debt-to-GDP ratio is poised

to decline steadily from its peak of 57.8 percent in 2017-2018 to around 52.4 percent in 2021-2022.”

The Government conceded that its fiscal projection were not without risk, given that some key factors are outside its control. Economic, or gross domestic product (GDP), expansion is key to hitting financial forecasts given that it drives government revenues, but The Bahamas has limited ability to influence its growth because it is heavily dependent on the US and global economy.

The fiscal strategy report also acknowledged how vulnerable The Bahamas is to being blown off course by hurricanes and other natural disasters, saying: “As we have seen in recent years, natural disasters - especially hurricanes - can also wreak havoc on projections for revenue.

“To mitigate the impact of such events, as was announced in the 2018-2019 budget, the Government will be establishing a Disaster Relief Fund over the medium-term horizon.”

Other factors influencing the outcome of the Government’s revenue projections include the Revenue Enhancement Unit’s success in generating $80m in extra income per annum from the existing system.

Should the Government’s forecast materialise, the fiscal deficit will shrink from $237.6m this year to $115.6m in 2019-2020 before turning into modest surpluses (revenues/income exceeds spending) of $9.4m and $15.1m in 2020-2021 and 2021-2022 respectively.

PAGE 10, Thursday, November 22, 2018

THE TRIBUNE

‘A sea change’ for fiscal accountability FROM PAGE ONE deficit and debt levels. It is a benchmark against which future budgets will be assessed, and any variations from that will have to similarly be explained to the citizenry.

“As has been seen in

Fiscal Responsibility legislation and reporting elsewhere in the world, it does help hold governments to account as to why they have certain outturns and what strategies they took when they saw these things coming.”

The Fiscal Responsibility Act mandates that the fiscal strategy report, which

reviews prior year performance and sets out the Government’s immediate and short-term fiscal and budgetary goals, together with a road map for getting there, be tabled in Parliament by the third Wednesday in November every year.

The Minnis administration

met this goal, and wrote in the report: “The coming into force of the Act and the publication of this 2018 fiscal strategy report represent a watershed moment in the history of The Bahamas. It heralds the dawn of a new era of public financial management that is marked by enhanced transparency, accountability and responsibility on the part of the Bahamian Government.

“As explained at the time of the 2018-2019 budget, given the vital importance of promptly redressing the undesirable state of the nation’s public finances, the

Government developed the budget to be fully consistent with the key principles and articulated fiscal objectives of the Fiscal Responsibility Act, even though it had not yet been enacted.”

Mr Johnson said the Government was looking to the VAT rate increase, together with other budget measures such as the increased web shop taxation, to drive revenue growth together with enforcement and collection initiatives.

This, he added, will involve “minimising tax evasion, minimising smuggling, and doing those things

to collect revenues on the books”. Spending will be “kept within the Government’s target of 20 percent of GDP” by stricter oversight from the Ministry of Finance of all other ministries, agencies and departments.

Mr Johnson said there was “a high level of comfort” within the Ministry of Finance that The Bahamas’ economic growth projections will be met, notwithstanding internal pressures resulting from increased taxes and higher energy costs, and global forces impacting the financial services industry.

National growth ‘remarkable’ coming from 18% of income

By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net THE Bahamas has achieved “remarkable national development” that has been financed with just 18 percent of national income, an ex-finance minister and Central Bank governor says.

Sir William Allen, addressing a University of The Bahamas Government and Policy Institute Forum featuring himself and three other former Central Bank governors, said: “We have been funding our national development, our governance, by about 18 percent of national income. It is not likely happening anywhere else on the globe.

“That we have actually achieved some respectable level of nation development is remarkable. The real crisis may be that we have achieved so much by so little that the argument for change may be undercut, but the case for change is real.”

Pushing back against criticism of the Bahamian economy, Sir William, who served as Central Bank governor from 1980-1987, said: “I take issue with much of the criticism levelled at the Bahamian economy, most of the time especially regarding its lack of diversification and its perceived weakness in its revenue-generating capacity.

“On a per capita basis it is difficult to imagine a more diversified economy than The Bahamas with its very large-scale tourism facilities, a very large-scale transshipment operation, very influential financial services, one of the largest ship repair facilities on earth, a domestic aviation industry with seven independent operators and a myriad of small and medium-sized services that support the rest of the economy and, of course, the public sector. It is difficult for me to understand the concept of The Bahamas needing to diversify.”

Julian Francis, who served as Central Bank governor from 1997-2005, said that while he did not entirely disagree with Sir William’s view, this nation was not producing opportunities for its people.

“Enterprising young Bahamians are looking outside The Bahamas for opportunities,” he added. “If we ask ourselves why this is, I think we come to the conclusion that our economy is not producing opportunities for our people, generally speaking.”

He continued: “There are many Bahamians throughout this country living below the poverty line, in some cases abject poverty, and in some cases there are enclaves where there is great wealth.

Our economy certainly, for at least a decade now, and probably much longer than that, has been slowing down and grinding to virtual halt. The question then becomes how do we look at revamping the policies and the underpinnings which have guided the economy up to this point.”

THE TRIBUNE

Thursday, November 22, 2018, PAGE 11

British PM hails Brexit progress, but still no breakthrough To advertise in The Tribune, contact 502-2394

LONDON Associated Press BRITISH Prime Minister Theresa May said yesterday that she has made fresh progress in Brexit talks at a meeting with European Commission President Jean-Claude Juncker, as negotiators try to pin down an agreement that EU leaders can rubber-stamp this weekend.

The UK and the European Union agreed last week on a 585-page document sealing the terms of Britain’s departure, but are still working to nail down a separate political declaration on their future relations after Brexit on March 29.

“Further progress has been made,” May said in a brief statement after her meeting in Brussels with Juncker, but she added that “there are some further issues that need resolution”.

May said the two sides have “given sufficient direction to our negotiators. I hope to be able to resolve the remaining issues, and that work will start immediately.”

The meeting with Juncker lasted just over 90 minutes.

May said she will return to Brussels on Saturday for more talks, including with the Commission President, “to discuss how we can bring to a conclusion this process and bring it to a conclusion in the interests for all our people”.

An EU summit is planned for Sunday, but May shed no light on whether it will still go ahead.

As wrangling continued over issues including Gibraltar and fishing rights, European Commission Vice President Valdis Dombrovskis said yesterday that the text on future relations was “not there yet”.

He said diplomats would

EUROPEAN Commission President Jean-Claude Juncker, left, pats British Prime Minister Theresa May on her back upon her arrival at EU headquarters in Brussels, yesterday.

Photo: Olivier Matthys/AP meet on Friday to prepare Sunday’s summit, and “they will need to see a final text before then”.

“The Commission stands ready to consider the text and take any action at any time,” he said.

At home, May is under intense pressure from proBrexit and pro-EU British lawmakers, with large numbers on both sides of the debate opposing the divorce deal. Brexiteers think it will leave the UK tied too closely to EU rules, while pro-Europeans say it will erect new barriers between Britain and the bloc — its neighbour and biggest trading partner.

May fended off a barrage of criticism from both opposition and government legislators yesterday during her weekly Commons question-and-answer session dominated by Brexit.

Opposition Labour Party leader Jeremy Corbyn branded the agreement “half-baked” — and said his party could negotiate a better one — while Conservative Andrew Rosindell urged May to ditch the plan and remove “the tentacles of the EU over our cherished island nation”.

May replied that “we want to ensure we continue to have a close trading relationship with the European Union” after Brexit.

She said the alternative to the agreement was either “more uncertainty, more division or it could risk no Brexit at all”.

Madrid has raised objections to wording in the agreement about Gibraltar, the tiny territory at the tip of the Iberian Peninsula that was ceded to Britain in 1713 but is still claimed by Spain.

Last year’s EU guidelines on the Brexit negotiations effectively gave Spain veto powers over future relations between the bloc and the British overseas territory, and the Spanish government says it will vote against the Brexit deal if Gibraltar’s future isn’t considered a bilateral issue between Madrid and London.

Spanish Prime Minister Pedro Sanchez said Tuesday that his government “cannot accept that what will happen to Gibraltar in the future depends on negotiations between the UK and the EU”.

But May reassured British lawmakers that “we will not exclude Gibraltar from our negotiations on the future relationship”.

Spain’s EU Affairs State Secretary, Luis Marco Aguiriano, said there was still time to “legally clarify” the agreement before Sunday.

PAGE 12, Thursday, November 22, 2018

THE TRIBUNE

KOSOVO SETS TARIFFS ON SERBIA, BOSNIA AS TIES STRAIN TIRANA, ALBANIA Associated Press KOSOVO’S government says it will put a 100-percent import tax on all goods imported from Serbia and Bosnia as diplomatic tensions rise.

Yesterday’s decision appears to be retaliation against what Deputy Prime Minister Enver Hoxhaj said was Serbia’s “aggressive campaign against Kosovo on the international stage”.

A day earlier, Kosovo failed to join Interpol because of what it claimed was campaigning by Serbia.

“That was a very aggressive stand from Serbia,” Prime Minister Ramush Haradinaj told a news conference.

The tariffs come into force immediately. They

KOSOVO Prime Minister Ramush Haradinaj, centre back, with his cabinet voting during the government meeting yesterday, in Kosovo capital Pristina. Kosovo’s government has decided to introduce a 100 percent import tax on all goods imported from Serbia and Bosnia Herzegovina. don’t apply to international brands produced in the two neighbouring countries.

Haradinaj said that Serbia and Bosnia had never respected the Central

European Free Trade Agreement, or CEFTA, rules in trade relations with Kosovo, causing significant financial losses.

Earlier this month, Kosovo introduced a ten-percent tax on goods from Serbia and Bosnia, neither of which have

recognised Kosovo’s 2008 independence.

Serbian President Aleksandar Vucic called a meeting of the national security council, Serbia’s top security body, to address the issue. He said after the meeting that Kosovo’s move amounted to a de-facto trade ban, but that Serbia won’t retaliate.

“The consequences could be catastrophic and destructive for relations in the entire region,” said Vucic, urging international pressure on Kosovo to revoke the decision. “This has to stop, there is no other option.”

Despite simmering tensions between Serbia and Kosovo, business ties have grown and Serb imports to Kosovo amount to about 400 million euros ($460m) a year, while Kosovo’s exports to Serbia are much lower.

Serbian Trade Minister Rasim Ljajic said Kosovo’s move was as a result of its failure to get an Interpol seat.

Bosnian Foreign Minister

Igor Crnadak likewise called the tariff “payback” for the Interpol decision.

EU foreign policy chief Federica Mogherini called on Kosovo to revoke the decision, saying it “is a clear violation of the Central European Free Trade Agreement and of the spirit of the Stabilization and Association Agreement between the European Union and Kosovo.”

Zahir Tanin, head of the UN Mission in Kosovo, also expressed his “concern regarding the potential impact on the people of Kosovo as well as the political implications on the dialogue and normalisation of relations between Belgrade and Pristina.”

Kosovo and Serbia have been in European Unionmediated negotiations for seven years. The EU has told the two sides they must normalise relations as a precondition to entering the bloc. Vucic has said that Serbia won’t take part in talks until Kosovo lifts its recently introduced taxes.

THE TRIBUNE

INVESTORS SEEK STABILITY AS THEY BAIL OUT OF TECH STOCKS NEW YORK Associated Press GOODBYE iPhones and Facebook feed. Hello power plants and bleach.

Since stocks began tumbling two months ago, investors haven’t abandoned the market. At least, not all of it. In recent weeks, as they’ve pulled money out of funds that invest in go-go technology companies, they’ve also been buying utilities, companies that make everyday necessities for consumers and other stocks that tend to have smaller swings in price than the rest of the market.

It’s part of a big shift in investor behaviour as fears about rising interest rates, a global trade war and slowing economic growth around the world have roiled markets. The S&P 500 plunged a combined 3.4 percent on Monday and Tuesday, with technology stocks again suffering particularly sharp losses, and the index has lost 9.6 percent since setting its record on Sept 20.

Technology stocks’ fall marks a big turnaround from earlier this year, and from much of the bull market that began nearly a decade ago. After leading the market higher on the backs of their strong profit growth, Facebook and other big-name tech companies have recently stumbled on concerns that increased government regulation will dent their profits, on top of all the other concerns dragging on the rest of the market.

Apple has slumped particularly hard on fears that its newest crop of iPhones isn’t as popular as expected after phone-part suppliers gave discouraging forecasts.

Apple has plunged 19.7 percent since the S&P 500 set its record two months ago,

nearly double the loss of the index. Amazon, the thirdmost valuable US company after Apple and Microsoft, has fallen 21.3 percent over the same time, during which it gave a forecast for revenue growth this holiday season that fell short of Wall Street’s high expectations.

After their years of eyepopping returns, those stocks had become some of the most popular to own among hedge funds, mutual funds and other investors.

But just as they bought the stocks together on the way up, investors are now heading for the exits en masse as well.

“There’s no doubt that tech companies are widely owned, people have made a lot of money on them and we’re finally seeing for the first time where the rotation is having some legs,” said Nate Thooft, senior portfolio manager at Manulife Asset Management.

“They’re selling the winners and redeploying the money somewhere else.”

For now, at least, that somewhere else has been areas of the stock market seen as holding steadier during economic downturns.

Last week, for example, investors plowed $1.47bn into exchange-traded funds that focus on utility stocks.

The thinking is that utilities’ customers will continue to turn on their lights and buy power regardless of how many tariffs get placed on Chinese goods.

Utility stocks have not only held up better than the rest of the market in recent weeks, they’ve been among the few areas to thrive.

Shares of Duke Energy and Xcel Energy have both climbed more than seven percent since the S&P 500 began its downturn after Sept 20.

Besides utilities, investors have also been putting money into real-estate stocks and companies that make everyday items for consumers, such as Church & Dwight. The maker of Arm & Hammer baking soda and Oxiclean stain fighters has climbed nearly ten percent over the last two months. Clorox, which last month reported stronger profit than analysts expected, is up 5.1 percent.

All these companies are common fodder for “lowvolatility” ETFs that have surged in popularity in recent weeks as investors seek out stocks that have historically had smaller price swings than the rest of the market. Last week, $1.3bn went into “low-volatility” ETFs. At the same time, nearly $500m left technology stock ETFs. It’s a huge aboutface in interest. As recently as two months ago, these ETFs had attracted $8bn in net investment for 2018. But subsequent waves of selling mean they’re now down to $525.9m in net investment for the year, according to Jefferies.

“These things had outperformed the S&P by a mile over the last three years,” said Mark Hackett, chief of investment research at Nationwide Investment Management. But that’s changed now. “On good days they’re not the leaders, and on bad days they’re the laggards.”

Thursday, November 22, 2018, PAGE 13

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PAGE 14, Thursday, November 22, 2018

THE TRIBUNE

PUBLIC NOTICE

NOTICE STURGESS HOLDINGS LTD. In Voluntary Liquidation

INTENT TO CHANGE NAME BY DEED POLL

The Public is hereby advised that I, ERIC OSAGIE OKHAROBO of Pinewood Gardens intend to change my name to ERIC OSAGIE. 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 the publication of this Notice.

Notice is hereby given that in accordance with Section 138(4) of the International Business Companies Act. 2000, STURGESS HOLDINGS LTD. is in dissolution as of November 19th, 2018.

Legal Notice

NOTICE

International Liquidator Services Inc. situated at 3rd Floor Withfield Tower, 4792 Coney Drive, Belize City, Belize is the Liquidator.

NOTICE IS HEREBY GIVEN as follows: (a) KEMPTEN CO. LTD. is in dissolution under the provisions of the International Business Companies Act 2000 (b) The Dissolution of said Company commenced on November 21, 2018 when its Articles of Dissolution were submitted and registered by the Registrar General.

LIQUIDATOR ______________________

(c) The Liquidator of the said company is Zakrit Services Ltd. of 2nd Terrace West, Centreville, Nassau, Bahamas. (d) All persons having Claims against the above-named Company are required on or before December 21, 2018 to send their names and addresses and particulars of their debts or claims to the Liquidator of the company or, in default thereof, they may be excluded from the benefit of any distribution made before such debts are proved.

November 21, 2018 ZAKRIT SERVICES LTD. LIQUIDATOR OF THE ABOVE-NAMED COMPANY

NOTICE DAISYBELL FIELDS INC. In Voluntary Liquidation Notice is hereby given that in accordance with Section 138(4) of the International Business Companies Act. 2000, DAISYBELL FIELDS INC. is in dissolution as of November 19th, 2018.

International Liquidator Services Inc. situated at 3rd Floor Withfield Tower, 4792 Coney Drive, Belize City, Belize is the Liquidator.

COLUMBIA Associated Press THE US Army Corps of Engineers yesterday announced the release of more than $40m to help deepen a South Carolina harbour, bringing total federal funding for the project to $108m thus far.

The Army Corps announced that it was dedicating $41.4m to deepen the Charleston Harbour to 52 feet, a project that will make it the deepest on the East Coast.

Local maritime interests have long wanted the channel deepened to at least 50 feet so the Port of Charleston can handle a new generation of larger container ships that are becoming more popular in global shipping.

South Carolina State Ports Authority President and CEO Jim Newsome has said that handling larger ships without waiting for high tides so they can reach the docks is a key to the competitiveness of the state’s ports, a sentiment he echoed in a statement yesterday.

“This depth advantage is vitally important for significant long-term volume growth and the deployment of large container ships,” Newsome said. “We are very grateful for the dedication and hard work by many to keep this project moving forward at record speed.”

In 2014, the Army Corps released a long-awaited draft feasibility study and environmental impact statement on a deepening

project, proposing that it would cost just over a half-billion dollars, higher than the $350m previously suggested. Officials have estimated the project could take anywhere from three to six years.

Construction to deepen the Charleston Harbor Entrance Channel to 54 feet (16 meters) began in February after the first two dredging contracts were awarded.

The federal share of the more than $500m total project cost is an estimated $166m, and Newsome has said the port needs about $90m in federal funds each year for three years to stay on schedule.

The South Carolina General Assembly has put aside $300m for the work, plus made available a $50m loan to be paid back by the federal government.

Both US Sens Lindsey Graham and Tim Scott lauded the effort. In a news release, Gov Henry McMaster said the port expansion is “an investment in our entire state’s future”, with so many goods moving through the area.

“When companies see that we are committed to our infrastructure, they have reason to be more confident in their investment in our communities, which means more jobs for our people,” McMaster said.

“The Charleston Harbor becoming the deepest on the East Coast will one day be seen as one of the most impactful moments in South Carolina’s prosperous economic future.”

PUBLIC NOTICE

LIQUIDATOR ______________________

INTENT TO CHANGE NAME BY DEED POLL

MARKET REPORT WEDNESDAY, 21 NOVEMBER 2018

Army Corps dedicates $41M to deepen South Carolina harbour

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

The Public is hereby advised that I, LEVERON MCKENZIE, of No.1, Saxon Street, Golden Gates No.2, P.O. Box N-7695, intend to change my name to LEVERN MCKENZIE. 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.

BISX ALL SHARE INDEX: CLOSE 2,003.80 | CHG 2.63 | %CHG 0.13 | YTD -59.77 | YTD% -2.90 BISX LISTED & TRADED SECURITIES 52WK HI 4.50 20.91 7.50 4.46 1.22 0.52 3.92 9.30 6.60 4.93 12.50 2.74 1.78 8.21 6.30 13.20 6.79 4.49 13.50

52WK LOW 3.50 19.17 7.00 3.32 0.90 0.16 2.25 8.60 6.10 3.54 9.00 2.30 1.50 7.25 6.00 10.10 5.67 3.25 12.50

1050.00 1000.00 1000.00 1000.00

1000.00 1000.00 1000.00 1000.00

PREFERENCE SHARES

1.00 103.00 100.00 106.00 105.00 103.00 100.00 10.00 1.01

1.00 100.00 100.00 100.00 100.00 100.00 100.00 10.00 1.00

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 Cable Bahamas Series 6 Cable Bahamas Series 8 Cable Bahamas Series 9 Cable Bahamas Series 10 Colina Holdings Class A Commonwealth Bank Class E Commonwealth Bank Class J Commonwealth Bank Class K Commonwealth Bank Class L Commonwealth Bank Class M Commonwealth Bank Class N Fidelity Bank Class A Focol Class B

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 ##########

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

SYMBOL LAST CLOSE AML 4.45 APD 17.43 BPF 7.00 BWL 4.46 BOB 1.01 BBL 0.52 CAB 2.30 CIB 9.30 CHL 6.16 CBL 3.98 CBB 12.42 CWCB 2.52 DHS 1.78 EMAB 8.00 FAM 6.30 FBB 12.98 FIN 6.41 FCL 3.62 JSJ 13.01 CAB6 CAB8 CAB9 CAB10 CHLA CBLE CBLJ CBLK CBLL CBLM CBLN FBBA FCLB

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)

1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.40 100.00 100.00 100.00 10.00 1.00 LAST SALE 100.00 107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

CLOSE 4.45 17.43 7.00 4.46 1.01 0.52 2.30 9.30 6.16 4.00 12.42 2.50 1.78 8.05 6.30 12.98 6.41 3.62 13.01

CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.02 0.00 -0.02 0.00 0.05 0.00 0.00 0.00 0.00 0.00

1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.40 100.00 100.00 100.00 10.00 1.00

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

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

VOLUME

31,470

3,200

VOLUME

EPS$ 0.214 0.932 -0.306 0.317 0.059 0.000 -0.588 0.700 0.441 0.154 0.627 0.102 0.209 0.000 0.670 0.701 0.578 0.277 0.631

DIV$ 0.100 1.260 0.000 0.240 0.000 0.010 0.000 0.710 0.220 0.120 0.620 0.060 0.060 0.084 0.280 0.500 0.150 0.130 0.600

P/E 20.8 18.7 N/M 14.1 N/M N/M -3.9 13.3 14.0 26.0 19.8 24.5 8.5 N/M 9.4 18.5 11.1 13.1 20.6

YIELD 2.25% 7.23% 0.00% 5.38% 0.00% 1.92% 0.00% 7.63% 3.57% 3.00% 4.99% 2.40% 3.37% 1.04% 4.44% 3.85% 2.34% 3.59% 4.61%

0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

0.00% 0.00% 0.00% 0.00% 6.25% 6.25% 6.25% 6.25% 6.25% 6.25% 6.25% 7.00% 6.50%

INTEREST Prime + 1.75% 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%

MATURITY 19-Oct-2022 ############### 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

MUTUAL FUNDS 52WK HI 2.18 4.16 2.02 182.41 158.55 1.58 1.70 1.66 1.10 6.99 8.54 6.15 10.52 11.46 10.46 10.00 8.69 11.79

52WK LOW 1.67 3.04 1.68 164.74 116.70 1.52 1.68 1.61 1.08 6.41 7.62 5.66 8.65 10.54 9.57 9.88 8.45 11.20

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

NAV 2.18 4.16 2.02 182.41 158.55 1.58 1.69 1.66 1.09 7.36 8.47 6.53 11.32 11.67 10.54 9.92 8.69 11.79

YTD% 12 MTH% 2.90% 4.07% 0.44% 4.38% 1.70% 2.35% 2.08% 3.47% 3.35% 5.94% 3.22% 4.22% -0.38% 3.34% 2.39% 4.01% -0.38% 0.53% -1.08% 1.77% -5.96% -3.05% 1.90% 4.59% 7.24% 11.96% 2.77% 3.88% 3.94% 4.69% -0.71% 0.16% 3.96% 7.75% 8.34% 14.88

NAV Date 30-Sep-2018 30-Sep-2018 28-Sep-2018 30-Sep-2018 30-Sep-2018 30-Sep-2018 30-Sep-2018 30-Sep-2018 30-Sep-2018 30-Sep-2018 30-Sep-2018 30-Sep-2018 30-Sep-2018 30-Sep-2018 30-Sep-2018 30-Sep-2018 30-Sep-2018 30-Sep-2018

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

YIELD - last 12 month dividends divided by closing price Bid $ - Buying price of Colina and Fidelity Ask $ - Selling price of Colina and fidelity Last Price - Last traded over-the-counter price Weekly Vol. - Trading volume of the prior week EPS $ - A company's reported earnings per share for the last 12 mths NAV - Net Asset Value N/M - Not Meaningful

TO TRADE CALL: CFAL 242-502-7010 | ROYALFIDELITY 242-356-7764 | FG CAPITAL MARKETS 242-396-4000 | COLONIAL 242-502-7525 | LENO 242-396-3225

NOTICE Notice is hereby given that KENEL BRAVE of Cow Pen Road, 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 signed statement of the facts within twenty-eight days from the 22nd November, 2018 to the Minister responsible for Nationality and Citizenship, P.O.Box N7147 Nassau, The Bahamas.