11302023 BUSINESS

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THURSDAY, NOVEMBER 30, 2023

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Gas retailers: ‘This is the Nygard scuttled $10m Bay Street time’ for margin increase wharf sale

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net BAHAMIAN petroleum retailers yesterday urged “this is the time” to grant a margin increase following last week’s 64-cent price drop with many said to be on the brink of “throwing away the keys”.

Raymond Jones, the Bahamas Petroleum Retailers Association’s (BPRA) president, told Tribune Business that implementing the industry’s long-desired margin increase of 25 cents per gallon now would still result in a “net” reduction in gasoline prices for consumers and fulfill the Government’s objective of not imposing further cost hikes in voters.

He reiterated that such an increase, which would be the first for 12 years,

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“The current situation is this,” Mr Jones told this newspaper. “The Government has maintained a position that it cannot do anything that drives the price up. In the last week,

we had a 64 cent decrease in the price of fuel in one day.

“It’s time to shake the tree a bit. The price has dropped significantly.

This is the time to give us an increase of 25 cents.

That’s a net, net win. The consumer will still see a 39 cents drop in the pump price. If you are waiting for it to drop, you got the drop. We don’t want the increase to take away the drop. We only want a

portion of that so it allows us to survive.

“Retailers are on the verge of closing down.

It’s almost impossible to operate with the current margins and current operating cost expenses.

We need relief, and are only asking for 25 cents a gallon. We understand the Government’s position, not wanting to put more cost on the public.

We understand that,” he added.

“But as business people we need to be able to maintain our employees, pay our bills and stay in business.” Mr Jones said the 25 cents increase in the gasoline margin that the Association and its members are now seeking would likely increase the average road user’s weekly fuel bill by less than $5.

SEE PAGE B5

Funeral chief’s partial win in stolen auto loan battle

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A FUNERAL home principal has won a partial victory in her legal appeal over a case where Bank of The Bahamas extended a combined $74,000 in auto loans despite knowing one vehicle was stolen.

The Court of Appeal, in a unanimous verdict, ruled on Tuesday that Denalee Penn-Mackey, Evergreen Mortuary’s principal, will not get extra time to challenge the initial Supreme Court verdict in favour of the BISX-listed institution because she has “no

prospects of success” and the delay is “inexcusable”.

However, Ms PennMackey was more successful in persuading the Court of Appeal to reinstate her claim against Kevin Saunders, who sold her both Cadillac Escalades for use in the funeral home business. Finding that her breach of contract claim is “unassailable”, the threejudge panel remitted that aspect of the case back to the Supreme Court for fresh determination.

Appeal justice Milton Evans, in a written verdict, said the Evergreen chief

SEE PAGE B4

Economic output beats pre-COVID by $295m

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net BAHAMIAN economic output for the 2023 firsthalf was last night said to have beaten pre-COVID comparisons by $295m in a signal that this nation is now moving beyond postpandemic reflation.

The official “advance estimates” for this year’s second quarter and firsthalf gross domestic product (GDP), unveiled by the Bahamas National Statistical Institute (BNSI), disclosed that economic output for the six months to end-June 2023 was 4.5 percent and 4.4 percent,

respectively, ahead of 2019 and 2018 comparisons.

Real GDP, a measurement which strips out inflation’s impact, stood at an estimated $6.827bn for the 2023 first-half as opposed to $6.532bn and $6.539bn for the same period in 2019 and 2018, respectively.

The Institute, in a brief analysis, said 2023 first-half GDP expansion was some 8.6 percent higher than last year’s $6.288bn output.

First and second quarter growth were 13.7 percent and 3.8 percent ahead of 2022’s performance.

“The first quarter of 2023 showed a 13.7 percent

SEE PAGE B5

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By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net PETER Nygard scuttled the $10m sale of a prominent Bay Street property that could play a vital role in downtown Nassau’s rebirth, a Supreme Court judge has revealed.

The fallen ex-Lyford Cay resident, who was earlier this month found guilty on four counts of sexual assault by a Toronto jury, has effectively left Union Wharf’s owner, a Bahamian financial services provider and local KC ‘holding the bag’ despite the trio being awarded a collective $567,019 in damages and costs over the affair.

IPG Family Office, which specialises in estate and inheritance planning, and

PETER NYGARD Gail Lockhart-Charles KC now face the task of collecting on this award given that the one-time fashion mogul likely has zero assets left in The Bahamas following the seizure and disposal of his former Nygard Cay property.

Justice Cheryl GrantThompson, in a November

SEE PAGE B7

PAGE 2, Thursday, November 30, 2023

THE TRIBUNE

BUSINESS CARDS NEVER LOSE THEIR IMPORTANCE A

IAN FERGUSON

lmost every business interaction, communication or networking is now digital. But what about the business card? Does it hold the same weight as it did in the past?

Business cards are relatively a cost-effective marketing tool for small and large companies, as well as entrepreneurs.

They are a mobile marketing tool, especially if your business requires you to travel frequently.

And they can establish

and maintain contacts that can lead to future business opportunities.

Networking is about making genuine connections, and is equally as effective as engaging in eye contact and actual conversation. E-mail marketing, search engine optimisation and paid media all do a great job of attracting leads, and the same applies to a business card exchange.

The experience of generating a potential lead or contact at trade shows, industry conferences or

airport lounges with business cards will ensure you never miss an opportunity to make a valuable business connection.

A business card is the first impression of your brand.

Therefore, you ought to always be prepared as the goal should be to make a first impression, and also act as a great ice breaker.

“Can I offer you my business card?”

Make it a habit to always end a conversation while handing over a business

card, as it will actually fuel the conversation even more. Simply put, business cards suggest you are prepared.

Have you ever had someone write his or her contact information on a cocktail napkin and hand it to you?

How about someone that had a mobile phone with a dead battery? It is not the most professional approach, is it?

Good things happen when preparation meets opportunity.

Never be caught unprepared. Your

business will thank you later. Until we meet again, fill your life with memories rather than regrets. Enjoy life and stay on top of your game.

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Opposition backs national property insurance scheme

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net THE Opposition’s finance spokesman yesterday backed the creation of a national property insurance scheme to combat the growing challenge many Bahamians face in protecting key assets against storms.

Kwasi Thompson, former minister of state for finance in the Minnis administration, told the House of Assembly that the escalating cost of purchasing property and casualty insurance was making coverage increasingly unaffordable for more and more Bahamians even as the threat posed by climate change-related catastrophic weather events rises.

Describing this as “highly relevant” to his east Grand Bahama constituents, given the devastation they suffered from Hurricane Dorian, he said of rising premium prices: “This is leading to decreased insurance coverage which, in the event of an extreme weather events, can potentially lead to significant losses for the population

KWASI THOMPSON and, ultimately, create large fiscal needs.

“The IMF (International Monetary Fund) also presented potential solutions.

Partial public funding of micro-insurance products could be expanded in combination with a public mandate to carry a minimum level of property insurance.

“We explored, and I support, the ability of a government programme to assist home and property owners to obtain at least a minimum level of insurance. This could take the form of a national insurance scheme for property owners.”

The IMF, in its recent statement on the annual Article IV consultation with The Bahamas, cited the affordability of property insurance for homes and businesses as a growing concern in The Bahamas.

“Property insurance premiums have been steadily increasing due to the high costs of reinsurance,” it said.

“This is leading to decreased insurance coverage which, in the event of an extreme weather event, can potentially lead to significant losses for the population and, ultimately, create large fiscal needs.

Partial public funding of micro-insurance products could be expanded in combination with a public mandate to carry a minimum level of property insurance.

“Increased fiscal buffers will be needed to provide some relief to those that may be affected in a future disaster. Finally, the authorities could consider designing financial instruments that incentivize private self-insurance.”

Mr Thompson, meanwhile, said the IMF “could not be clearer” in urging the Government to get spending by state-owned enterprises (SOEs) such as Bahamasair and the Water & Sewerage Corporation “in order” so as to reduce their annual demand on Bahamian taxpayer subsidies.

“Efficiency gains in spending programmes and improvements in the financial management of state-owned enterprises will be needed to offset some of the budgetary pressures arising from an aging population,” the IMF said.

“To improve longer-run growth and strengthen social inclusion, there will be a need to reorient spending priorities toward education, healthcare, targeted social transfers and infrastructure, particularly those which will increase resilience to the effects of climate change.”

“The less we have to spend on supplementing these the more we have to spend on education and healthcare and sea walls

like the one that is needed in High Rock.”

Mr Thompson also reiterated previous calls for the Government to eliminate VAT from healthy foods as well as breadbasket items.

“We are saying to remove VAT off of breadbasket items, but I am shifting that to not just remove VAT off of breadbasket items. We need to remove VAT off of healthy foods,” he added.

Arguing that the Bahamian dollar does not stretch as far as in years past, Mr Thompson said: “Take VAT off of healthy food.

Increase the amount provided for social services and systems. Increase the amount of people who can be approved for these programmes.

“We also need to give more to social services lunch vendors.” These vendors are being provided the same amount of money to buy goods whose prices have markedly increased, Mr Thompson said.

To pay for this increase in funding for social services vendors, Mr Thompson advocated reinstating VAT back to “12 percent on property transfers over $1m”.

Noting that the IMF is estimating the 2023-2024 fiscal deficit is expected to equal 2.6 percent of gross domestic product (GDP), “considerably larger than that was expected in the Budget”, he said: “The IMF is projecting that the Government’s deficit for this fiscal year will approach $380m, which is almost 200 percent higher than the $131m deficit in the Government’s budget and the medium-term Fiscal Strategy.

“This massive spike in the deficit was also projected by the ratings agency, Standard and Poor’s (S&P).” Questioning the discrepancy between the IMF and S&P’s deficit projections, and that of the Government, Mr Thompson added: “The government must answer.”

He acknowledged the response by Michael Halkitis, minister for economic affairs, who described the differences as a “matter of opinion”, Mr Thompson said the “Bahamian people deserve a better answer than that”.

“The Government must state whether these projections, first by S&P and now by the IMF, are accurate, and if it is true that they are on track to blow the Budget’s deficit target by almost 200 percent,” Mr Thompson said.

“If this is so, the Government must follow the fiscal responsibility provisions of the Public Finance Management Act and come to Parliament with a plan on how they will curtail their extravagant, unnecessary spending so as to bring the budget back in line what Parliament had approved.”

THE TRIBUNE

Thursday, November 30, 2023, PAGE 3

EXCURSION BOOKER: OVER 50% VOICING BLUE LAGOON CONCERN

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net A FIRM that organises excursions and tours yesterday revealed that more than 50 percent of visitors have voiced concerns since the Blue Lagoon tour boat sank resulting in a tourist’s death.

Ms Cartwright, owner/ operator of Anchored Concierge and Activities Services, told Tribune Business that the fallout from

the November 14 sinking has been deterring prospective guests and leading to cancelled excursions.

“Business has been up and down coming out of slow season,” she said.

“It’s just now starting to increase, but there is still a damper because of the bad weather. The average tourist wants to experience the sun, sand and sea.

“With the cold front coming in now the weather isn’t at its calmest. I am hoping things would start to pick up in February where

the guests could actually enjoy the sun, sand and sea and boating experience.”

Ms Cartwright added: “Of course, in the slow season it’s limited bookings, but you do have a lot of guests. Since the Blue Lagoon incident we have had guests wanting to cancel. I wouldn’t say it is a big percentage because it is in the slow season and there is already limited bookings.

“But you do have a lot of guests, I would say more than 50 percent, who if they haven’t cancelled, they are

asking about it in terms of what happened and how they can ensure that the other companies would not experience the same tragedies.”

Ms Cartwright not only books boating excursions for 10 separate charter services, but ground transportation to and from the airport and to other destinations. She said the past four years since she has been in business have been “good” outside of the last few weeks, even for the slow season.

“We would have preferred to not have the bookings until the situation with Blue Lagoon blows over,” she said. “Unfortunately, this is all over TikTok and guests that were actually on the boat have posted videos of them screaming and their ‘in the moment’ experiences on the various social media platforms. “ Andoni Lisgaris, president of the Bahamas Excursion Operators Association, said he has not suffered a wave of

cancellations even for the traditionally slow season.

He also has not heard any of his members report the same.

“Cancellations are news to me, but I know it is the slow period right now. Usually after Thanksgiving and the beginning of December, it is usually a little slow period anyway, but I have still been getting inquiries and people booking and they haven’t been mentioning anything about Blue Lagoon,” he said.

Bahamas urged to back treaty to ban oil drilling ENVIRONMENTAL activists yesterday urged The Bahamas to join other Caribbean and Pacific states in backing a treaty that would halt exploration for oil and other fossil fuels.

Our Islands, Our Future, the group that has campaigned for The Bahamas to ban all forms of oil drilling within its territorial waters following the unsuccessful Challenger Energy Group (CEG) venture, called on this nation to take the next step by endorsing an initiative to create a Fossil Fuel Non-Proliferation Treaty.

Pacific Island nations, as well as Antigua and Barbuda, have already done so, and Our Islands, Our Future’s call comes amid a strong Bahamas’ presence at the United Nations Framework Convention on Climate Change conference (COP28) that begins today in Dubai. Our Islands, Our Future’s Chris Wilke and Rashema Ingraham are also attending.

Praising the stance taken by Prime Minister Philip Davis KC two years ago, in the aftermath of COP26, that he was “not minded” to allow oil drilling in Bahamian waters, the group is urging Mr Davis to announce The Bahamas’ endorsement of the Fossil Fuel Non-Proliferation Treaty Initiative at COP28.

The Treaty initiative aims to stop fossil fuel exploration and expansion, and phase out existing production, while supporting the transition to renewable energy. Its objectives are in line with the targets of the Paris Climate Agreement.

The treaty is said to have been endorsed by the Vatican, the World Health Organisation (WHO), the European Parliament, Nobel laureates, academics, researchers, activists and a growing list of governments and individual lawmakers.

Antigua and Barbuda is the first island nation in the Caribbean to endorse the treaty.

“The Davis administration has made several commendable commitments to environmental protection and resource conservation in the face of climate-driven threats to the local economy and our way of life,” said Casuarina McKinney, executive director of BREEF, a founding member of Our Islands, Our Future.

“It’s difficult to imagine a better way to solidify this dedication than by declaring support for the Fossil Fuel Non-Proliferation Treaty to protect our precious natural resources and preserve our coastal communities.”

Rashema Ingraham, of Waterkeepers Bahamas, another Our Islands, Our Future founding member, said: “This treaty is crucial for the future of The Bahamas, a coastal nation where the various threats from oil exploration and extraction could have a catastrophic impact.

“We have already seen this with the terrible Equinor oil spill in Grand Bahama and the recent spill in Exuma. The country also dodged a serious bullet when a recent attempt to drill an offshore oil well

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failed. We call upon our government to do everything possible to ensure that such a situation never arises again.”

Chris Wilke, of Waterkeeper Alliance, also an Our Islands, Our Future founding member, said the Treaty’s focus on renewable energy ties in well with the Government’s recent signing of an agreement with the Caribbean Centre for Renewable Energy and Energy Efficiency for the development of an Integrated Resource and Resilience Plan to aid in the efficient integration of renewable energy across the country.

“Our Islands, Our Future commends the Davis administration for its climate leadership and commitment to renewable energy goals,” he said. “We believe the Fossil Fuel NonProliferation Treaty is the perfect next step, and we encourage the Government of The Bahamas to take its

rightful place among world leaders in protecting global waterways and communities from climate disaster.”

Our Islands, Our Future says the agreement is in line with the Government’s stated National Energy Policy targets, which include transitioning to non-oil and renewable energy, including sourcing 30 per cent of its energy needs through renewables by 2030, providing financial incentives for household solar, and transitioning directly to solar on less populated islands.

Our Islands, Our Future’s ultimate goal is to encourage the Government to announce a permanent ban on all oil drilling within The Bahamas. The coalition researched Bahamian law and published a Pathway Toward an Oil Drilling Ban in 2022, identifying a temporary moratorium and a permanent ban as the best solution.

This strategy calls for a moratorium to be declared immediately as part of ministerial policy, followed by a Parliamentary Act that codifies this in law. Our Islands, Our Future cited similar moves in other countries, such as New Zealand, Costa Rica, Greenland, and Wales. Florida recently extended its moratorium on offshore oil drilling to protect their valuable tourism and fishing industries.

The Government earlier this year confirmed it had received a proposal from Challenger Energy Group, the former Bahamas Petroleum Company (BPC), suggesting how it could “monetise” its assets in this nation via an alternative to extracting any commercial oil discoveries.

Eytan Uliel, Challenger’s chief executive, told shareholders it was pursuing a “parallel” path in The Bahamas with the carbon credits initiative put forward as an alternative to

the renewal of its four exploration licences for a three-year term that would involve the drilling of another exploratory well within this nation’s waters during that time.

“In relation to the Company’s licences in The Bahamas, we maintained ongoing dialogue with the Government of The Bahamas on two parallel options: The renewal of the licences into a third exploration period, given that we still see considerable long-term exploration potential in those licences, a joint initiative seeking to monetise those assets via an alternative approach based around carbon credits,” Mr Uliel wrote.

And, in the same report, Challenger affirmed: “The group is the 100 percent holder of four conjoined exploration licences offshore in The Bahamas. The Perseverance One exploration well was drilled in the licence area in early 2021,

and did not result in a commercial discovery at the drill location.

“However, a number of other structures and drill targets remain prospective across the licence areas, and the technical findings from Perseverance One indicate the potential of deeper jurassic horizons.

In March 2021, the group notified the Government of The Bahamas of its intent to renew the licences into a third three-year exploration period.

“This renewal remains pending, and the group is engaging with the Government on the renewal process. At the same time, the group is engaging with the Government and various third-party consultants on a joint initiative seeking to monetise the asset via an alternative approach based around carbon credits.”

PAGE 4, Thursday, November 30, 2023

THE TRIBUNE

Funeral chief’s partial win in stolen auto loan battle FROM PAGE B1 had applied for “an extension of time” in which to appeal then-justice Charles’ original Supreme Court ruling on April 13, 2023.

The extra time was sought because, while the original appeal notice was filed within the time stipulated by the Court of Appeal’s rules, it was submitted to the wrong court.

“According to the affidavit in support of the present application, a Notice of Appeal was filed on behalf of the applicant but it was inadvertently filed in the Supreme Court. This is verified by the copy of the notice which is exhibited to that affidavit,” appeal justice Evans wrote.

“It should also be noted that the applicant’s attorneys apparently did not realise that they had filed the notice in the wrong court until February 2023.

The applicant provides no reasonable explanation as to why it took over a year to realise that the notice was filed in the wrong court.”

Appeal justice Evans noted that one year and eight months had elapsed between the Supreme Court’s August 20, 2021, verdict and the April 13, 2023, extension of time request. A key factor in determining whether to grant the latter, he added, was whether Ms PennMackey’s appeal presented “an arguable case” and has any chance of succeeding.

Detailing the background to the dispute, the Court of Appeal noted: “The applicant was a customer of the second respondent [Bank of The Bahamas]. In January 2010, she observed the first respondent [Mr Saunders] driving a 2007 Cadillac Escalade. She offered to purchase the vehicle from him and obtained a loan from the bank to do so.

“The bank for its own internal purposes obtained a ‘Carfax’ report on the vehicle which stated that the vehicle had been reported stolen. Notwithstanding the contents of the report, the loan was approved for the

sum of $34,000 (the 1 percent loan).

“The applicant accordingly purchased the vehicle with the funds received from the bank under the 1 percent loan, which was secured by a chattel mortgage and promissory note. It was also a term of the chattel mortgage that the applicant as mortgagor ‘warrants that the property is free and clear of all lien and encumbrances’”.

Bank of The Bahamas extended that loan just three days after the Carfax reported the 2007 Cadillac Escalade was stolen in Florida on July 9, 2009. “In June 2010, the applicant once more approached [Mr Saunders] and purchased a 2008 Cadillac Escalade from him with the assistance of a loan from the bank,” the Court of Appeal noted.

“The loans were consolidated, and the applicant also gave the bank a chattel mortgage over the second vehicle. The bank also obtained a ‘Carfax’

report on the second vehicle which showed that the vehicle had a lien over it.

Notwithstanding the contents of the report the loan was approved for the sum of $40,000.

“In September 2011, both vehicles were seized by the Customs Department for non-payment of Customs duties...... The applicant averred that the Customs department seized the two vehicles on the basis that there was no evidence that the vehicles had cleared Customs in The Bahamas.

As a result, the applicant lost the vehicles but was left with the loan,” the judgment added.

“The applicant alleged that [Bank of The Bahamas] was negligent in failing to advise her of the defects in the title which they should have discovered by a proper investigation. She further alleged that the bank had results from Carfax reports which showed that one vehicle had been reported stolen and the other had a lien over it.

“These, she asserts, were never shared with her. Thus she asserted that the bank owed her a duty which they breached resulting in damages.”

Bank of The Bahamas, in its defence, “denied liability and claimed for the sums outstanding under the loans. They claimed that they had not advised Mrs Penn-Mackey as to the marketability of Mr Saunders’ title”.

The bank claimed a total $64,370, with some $60,743 of that representing the principal due on the consolidated auto loan as well as interest, late fees and penalties. While Ms PennMackey’s claim against Mr

Saunders was “not very clear”, it appeared she was suing him for breach of contract due to his failure to deliver good and marketable title to both autos.

Then-justice Charles found in Bank of The Bahamas’ favour on the basis that Ms Penn-Mackey should have conducted her own investigation to determine whether there was good and marketable title to both vehicles having pledged that they were “free and clear of all liens and encumbrances” as part of the loan terms.

As a result, the Evergreen Mortuary principal has been ordered to pay Bank of The Bahamas some $64,370 in principal on the outstanding auto loans. And, with Justice Charles imposing interest at 14 percent per annum (just over $9,000) for a nine-year plus period between March 2012 and August 2021, Mrs Penn-Mackey was to pay more in interest - over $81,000 - than principal that is due The funeral home chief only had use of the vehicles for 18 months, and she claimed their loss resulted in a collective $45,740 in loss and damages. Appeal justice Evans, though, found the Supreme Court was mistaken in finding that Ms Penn-Mackey had abandoned her claim against Mr Saunders, who did not participate in the trial.

Calling for her claim against the seller “to be retried as soon as possible”, he added that this was “unassailable”. However, the Evergreen Mortuary principal was less successful in her battle with Bank of The Bahamas, as appeal justice Evans rejected

the suggestion that the BISX-listed institution had assumed responsibility for confirming title to both vehicles was good.

“In my view there is no merit in the assertion that it was an implied term of the agreement between the parties that the bank had a duty to investigate the marketable title of the vehicles and to advise the applicant on the same. There was nothing in the nature of the transaction nor any document produced which supported such an assertion,” appeal justice Evans wrote.

“It is well known that a bank has a responsibility to protect its own interests. When they deal with a client, they determine whether they want to advance the loan or not and they investigate title for their own purposes.

“The person who is purchasing has an independent responsibility to ensure that what they are purchasing is free and clear and safe to purchase. The loan officer was saying nothing more than that before we commit to a loan we have to confirm title.”

Ms Penn-Mackey was the author of her own misfortune, the Court of Appeal ruled, as she should have conducted her own title investigation prior to obtaining the loans and signing the Bill of Sale with Mr Saunders. “It is that failure which resulted in her loss. In the absence of a duty owed by the bank to the applicant there could be no breach,” the Court of Appeal ruled.

“The final point raised by the applicant was that the bank, having received the Carfax information, were obligated to share the same with her. It is clear, however, that whatever the goodwill such a step would have produced that would not have assisted the applicant.

“As noted earlier, the applicant having already committed herself to the transaction by virtue of the bill of sale, her obligation to finance the vehicles already existed.” As a result, the Court of Appeal declined to grant the Evergreen Mortuary chief an extension to proceed with the Bank of The Bahamas’ appeal.”

Yvette McCartneyMeredith represented Ms Penn-Mackey, while FNM Senator, Michela BarnettEllis, acted for Bank of The Bahamas.

THE TRIBUNE

Thursday, November 30, 2023, PAGE 5

GAS RETAILERS: ‘THIS IS THE TIME’ FOR MARGIN INCREASE so frustrated. They want to stop all gas and diesel sales and close up. That’s not good for the economy as there will not be enough service stations to meet demand,” Mr Jones said.

“Twenty-five cents would be a small increase to keep these retailers and entrepreneurs in business. It’s been 12 years since the last margin increase, and look at all the costs that have gone up in that time. It’s absolutely ridiculous we’re at this point. We’ve been talking to this administration for the last two years for 25 cents per gallon. Something needs to change.”

The Government may not view a 25 cents per gallon increase as small. It has been consistent, ever since it began discussions with the retailers and their Association in March/ April 2022, that it will not agree to any solution that increases gas pump prices for Bahamian motorists, such as a margin increase.

The Davis administration has also argued that part of the dealers’ plight stems from the rental rates, royalties and franchise fees they pay to their landlords, namely the oil majors of Esso (Sol Petroleum); Rubis; and FOCOL Holdings (Shell).

But Mr Jones, who spoke to Tribune Business after yesterday obtaining a banker’s draft to pay his wholesale supplier for a new shipment of fuel, reiterated that the industry’s price-controlled fixed margins, which are set by the Government, have been obliterated by increases in electricity rates, credit card fees, bank fees, the minimum wage, insurance, security and many other ordinary operating costs.

“We have to pay for our fuel in advance,” he added.

“The margin ain’t moving at all and everything is eating it up. To pay Bahamas Power & Light (BPL), we have to beg them so we

only pay a little bit, make a bit of money and then come back again and pay someone else.

“It takes so much of our business time just to stay in business because we don’t have no room in which to breathe. It’s gotten worse because costs have been going up. On top of that, the bank charges you... if you are depositing over $10,000 you have to pay them 4 percent of that.

“Listen to this now.

When the customer shows up and they use their credit card, because of the discount they get, 15 cents of the 54 cents margin goes on the credit card processing fee. We’re between a rock and a hard place,” Mr Jones continued.

“We like the digital banking because it speeds the process up, customers keep track of their money and there’s less cash handling but, at the same time, the cost to do that is very prohibitive if you are on a fixed

margin. We can’t adjust our prices like a bar or restaurant.

“The headline needs to be retailers need assistance now. Prices have dropped, so this is an opportune time to act and for the Government to give them the margins they desperately need.”

The Government has also ruled out reducing its petroleum industry taxes ti aid consumers, and counter the impact from a margin increase, as to do so would create a revenue shortfall it would have to cover elsewhere in its Budget.

“It’s been a difficult situation because if it was easy we still wouldn’t be talking about it now, and I’m not making light of it,” Michael Halkitis, minister of economic affairs, said in early October. “It’s a difficult situation and we understand the plight of the retailers and the conditions that they have to operate in, including the rents and franchise

fees and all sorts of things.

It makes it difficult.”

Mr Halkitis said the wholesalers - Esso, Rubis and Shell (FOCOL) - also want a margin increase, but did not indicate that a formal proposal is being considered. He added that the Government is examining the entire value chain in the petroleum sector, from when the wholesalers purchase their supplies down to when it gets to the pump, in an attempt to understand how best the Government can help lower the price of gasoline for consumers.

The government currently gets $1.70 out of every gallon of gas, while petroleum retailers get 54 cents and 33 cents on diesel.

“Government does not want to be the cause of gasoline prices going up,” Mr Halkitis reiterated.

ECONOMIC OUTPUT BEATS PRE-COVID BY $295M

about $70m-$75m in additional economic output.

While the latter figures should not be discounted, by comparison the IMF is predicting a fiscal deficit of around $379m, which would represent a near-$248m overshoot of the Government’s $131.1m forecast.

And the IMF is also forecasting that GDP growth will decline to 1.8 percent in 2025, bringing it down in line with The Bahamas’ historical 1-2 percent annual trend.

The IMF, in its Article IV statement on The Bahamas, said: “The Bahamas’

economy continued to rebound vigorously in 2022.

Real GDP growth reached 14.4 percent and unemployment fell to 8.8 percent with a broad-based expansion that was especially strong for tourism.

“However, labour force participation, particularly among men, remained below pre-pandemic levels.

In 2023, international flight and cruise arrivals rose well above their pre-pandemic levels leading to a projected 4.3 percent expansion in the year, bringing the economy back to estimates of potential output.

“After peaking at 7.1 percent in July 2022, inflation has fallen steadily to 2.3 percent in July 2023, largely driven by the fall in global energy prices.” However, the IMF added that all the economic risks facing The Bahamas are tilted towards the negative.

“Risks to the outlook are skewed to the downside. A fall in tourism demand, due to an economic slowdown in source markets, could weigh negatively on the growth outlook. Furthermore, renewed pressures on global food and oil prices could impose a burden on

lower income households and put pressure on the balance of payments,” the IMF added.

“Any associated fiscal measures to dampen the pass-through of global prices to the domestic economy would have to be well-targeted to mitigate further strain the fiscal position. Finally, The Bahamas is highly exposed to risks emanating from climate change and natural disasters. In the event that risks are realised, domestic financing challenges could increase.”

FROM PAGE B1 “We’re asking the Government to support us, help us out and give us an increase so we can survive,” he pleaded anew. “Many retailers have been talking about throwing away the keys. I said: ‘Hold on. The Government’s got to see a way through to give us an increase so we can survive’,” he added.

“This is the time. If they give a 25 cent per gallon increase the consumer will see a net decrease of 40 cents per gallon. We feel that if they do that the price will still go down significantly. This is the time to give us a margin increase so we have hope of staying in business.

“At the end of the day, petroleum retailers are very, very frustrated at not being able to make money and are simply spinning the wheels, paying the cost of electricity, paying the cost of operations. People are

FROM PAGE B1 increase, while the second quarter of 2023 revealed a 3.8 percent increase in real growth when compared to the same period of the previous year,” the Institute added. “The quarterly GDP trends for 2023 show the Bahamian economy also outperformed pre-pandemic levels.

“These combined gains for the first half of 2023 reveal a growth in the Bahamian economy which surpasses that of the same period in 2019. Domestic business activity in each quarter of 2023 reported more than $3bn in Real GDP, with the first quarter reporting the highest level of $3.44bn and the second quarter $3.39bn.

“The year-ending second quarter 2023 showed an increase of 11.5 percent nominal growth and 8.6 percent real growth when compared to the same period in 2022. These preliminary estimates reveal an overall nominal growth of $741m and real growth of $539m over the previous half year.”

The Institute’s analysis signalled that the post-COVID tourism rebound, plus construction and real estate activity linked to foreign direct investment (FDI) and second home buyers/ vacation rentals, continues to drive GDP expansion.

It said “accommodations and food services”, which is heavily dependent on tourism, led the way with a $162.1m or 32 per cent year-over-year increase for the 2023 first half when measured against prior year benchmarks.

Construction showed the greatest increase with a 42 percent, or $89.7m year-over-year jump, while real estate for owner-occupied and rentals was up 4 percent at $43.2m.

Financial services and insurance produced a 10 percent, or $53.8m, yearover-year increase in the value of its economic output, while the utilities industries - water, electricity and sewerage - generated a $41.4m or 25 per cent jump against 2022 benchmarks.

The release of the Institute’s figures is timely for the Government given that it is extremely eager to place the economic focus on The Bahamas’ GDP growth projections following the International Monetary Fund’s (IMF) Article Iv statement that effectively blew a hole in its fiscal forecasts by predicting the 2023-2024 deficit will come in almost three times’ higher than Budget estimates.

The data also dovetails with the IMF’s upward revision of The Bahamas’ growth forecast for 2024, which has been raised by 0.5 percentage points to 2.3 percent of GDP. Michael Halkitis, minister of economic affairs, said in a statement: “Previously they were estimating 1.8 percent.

Now they are estimating that the economy will grow in 2024 by 2.3 percent.

“That’s an increase of 0.5 percentage points To go from 1.8 percent to 2.3 percent they are raising their projected growth rate by 28 percent. That’s a massive revision.” In percentage terms, yes. But, based on the GDP estimates set out in the 2023-2024 Budget, that 0.5 percentage point increase is equivalent to

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PAGE 6, Thursday, November 30, 2023

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Finland closes last crossing point with Russia, sealing off entire border as tensions rise

By JARI TANNER Associated Press NATO member Finland on Wednesday closed its last remaining border crossing with Russia after the government decided to seal the entire border with its eastern neighbor amid rising political tensions.

The Cabinet of Finnish Prime Minister

Petteri Orpo decided to temporarily close the entire 1,340-kilometer (830-mile) border between the two countries a day earlier over concerns that Moscow was using migrants to destabilize the Nordic country in an alleged act of "hybrid warfare."

The Raja-Jooseppi crossing point in Finland's Arctic Lapland region, located

some 250 kilometers (155 miles) from the northern Russian city of Murmansk, closed at 2 p.m. Wednesday, according to the checkpoint's normal November schedule.

Ville Ahtiainen, a deputy commander with the Finnish Border Guard in Lapland, told reporters that the remote border crossing, located in the

middle of rugged wilderness, was quiet during the four hours it remained open Wednesday, with a handful of vehicles passing through on their way to and from Russia. The border cannot be crossed by foot.

No migrants attempted to enter Finland in RajaJooseppi on Wednesday, he said.

Finnish authorities say some 1,000 migrants without visas or valid documentation have arrived at the border since August, with more than 900 in November alone. Finland makes up a significant part of NATO's northeastern flank and acts as the European Union's external border in the north.

The migrants hail from countries including Afghanistan, Eritrea, Ethiopia, Iraq, Pakistan, Somalia, Syria and Yemen, and the vast majority of them have applied for asylum in Finland once they reached the Finnish side on the border, authorities said.

Finland accuses Russia of deliberately ushering migrants to the border zone that is normally heavily controlled by Russia's

Federal Security Service, or FSB, on the Russian side.

The formal closure of Finland's entire eastern border with Russia takes effect at midnight Wednesday but, in practice, the Raja-Jooseppi crossing was the only point to remain open after the Finnish government closed seven other crossing points earlier this month.

The situation has escalated tensions between Helsinki and Moscow after decades of pragmatic friendly relations between the neighboring countries.

Those ties were broken by Finland's decision in May 2022 to join NATO, a direct result of Moscow's invasion of Ukraine that started in February 2022.

Finland became NATO's 31st member in April this year.

The Kremlin denies Russia is encouraging migrants to enter Finland and says it regrets the Finnish border closures. Russian Foreign Ministry spokeswoman Maria Zakharova said Finland on Wednesday formally notified Moscow that it has closed the last remaining northernmost

border checkpoint. In a comment earlier this week, Zakharova charged that by closing the border Finland is hurting its own citizens.

Asked to comment on NATO allies allegedly planning to deploy troops at the Finnish-Russian border, Kremlin spokesman Dmitry Peskov said Wednesday in a conference call with reporters that "no one and nothing is threatening Finland," calling the move "excessive."

At the same time, he warned that "tensions may arise during the concentration of extra troops on our border."

"We view the concentration of troops on our border as absolutely unprovoked and unfounded," Peskov said. "The Finns need to be clearly aware that a troop buildup on our border will pose a threat to us."

There are currently no NATO soldiers permanently stationed on the Finnish territory or along the Russia border apart from those foreign troops taking part in the military alliance's regular exercises with the Finnish military.

RED lights are seen at the Raja-Jooseppi international border crossing station in Inari, northern Finland, on Wednesday, Nov. 29, 2023. Finland says it will close its last remaining border crossing with Russia amid concerns that Moscow is using migrants as part of “hybrid warfare” to destabilize the Nordic country following its entry into NATO. Photo:Otto Ponto/AP

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Thursday, November 30, 2023, PAGE 7

Nygard scuttled $10m Bay Street wharf sale FROM PAGE B1 28, 2023, ruling disclosed how Mr Nygard successfully persuaded the Supreme Court to block Union Wharf’s proposed sale via an injunction that was issued on September 30, 2022. This was granted in response to claims that he was the Nassau harbourfront property’s true owner - an assertion that was denied and heavily disputed.

However, the embattled Canadian multi-millionaire, whose fashion empire was already in disarray and ruin, failed to comply with a Supreme Court Order that he provide a $2m damages “undertaking” as part of the terms for granting the injunction. And he subsequently also failed to abide by a further Order requiring him to pay a $100,000 ‘security for costs’ bond to cover the other side’s legal and other expenses.

Mr Nygard’s non-compliance with both Orders ultimately resulted in the dismissal of his claim to be Union Wharf’s true owner.

And, while the injunction was eventually discharged, its imposition triggered the “collapse” of Union Wharf’s sale to a corporate entity, Buccara Bahamas Ltd, resulting in the latter recovering its deposit.

The judge, slamming Mr Nygard for his “broken promise” on the damages undertaking, said she took “a dismal view” of his “blatant failure to deliver on any of the financial sanctions

and safeguards imposed by court order”.

The Union Wharf episode is thus another example of how Mr Nygard’s toxic legacy continues to plague The Bahamas, as his efforts have delayed and tied-up the sale of a large waterfront property whose redevelopment could play a critical role in the revitalisation of downtown Nassau.

Justice Grant-Thompson’s verdict revealed that the former Nygard Cay owner initiated legal proceedings to block Union Wharf’s sale on July 14, 2022. The defendants were named as Nygard Foundation, an irrevocable charitable purpose trust whose assets were contributed by Mr Nygard, but which he no longer controlled, and IPG Family Office. The latter likely provided trustee and protector services to the Foundation.

Besides seeking damages for alleged “breach of fiduciary duties” and breach of contract, the fallen fashion mogul also sought a Supreme Court declaration that he was Union Wharf’s beneficial owner by virtue of having “paid the purchase money to Galaxy Group”.

The latter is the corporate entity registered as the Bay Street waterfront’s owner.

While Mr Nygard initially succeeded in blocking the sale via the Supreme Court’s injunction, his failure to provide the required $2m damages undertaking resulted in a further March 6, 2023, Order. It stipulated hat unless he paid $100,000

in “security for costs” by 4pm on April 7 this year, his action would be dismissed.

“Peter Nygard, having failed to provide the undertaking in the amount of $2m, also failed to provide the security for costs in the amount of $100,000 as ordered by this court in an Unless Order. The substantive action was therefore dismissed due to the plaintiff’s non-compliance with these two crucial financial Orders relative to these proceedings,” Justice Grant-Thompson wrote.

The injunction was also discharged but too late to save Union Wharf’s sale.

IPG Family Office, whose founder and principal is Andrew Law, a former managing director of Credit Suisse Trust (Bahamas) and also an ex-Association of International Banks and Trusts (AIBT) chair, subsequently claimed a total $656,018 in damages to cover “loss of opportunity” from the aborted sale together with legal and other costs.

Sidney Collie, the former Cabinet minister and MP who was acting as Mr Nygard’s attorney, asserted that the damages/costs claim should be dismissed but this was rejected by Justice Grant-Thompson.

Mrs Lockhart-Charles, acting for Nygard Foundation, IPG Family Office and Galaxy Group, countered that the claim “brought into sharp focus the damages which loomed, accumulating since the sale

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of the Union Wharf property teetered on the brink of collapse”.

Taran Mackey, IPG Family Office’s managing director, alleged in an affidavit: “The injunction order has prevented Galaxy from closing the sale of the Union Wharf property in accordance with the agreement for sale, and Galaxy has now been served with a notice to complete, which requires it to complete the sale by November 28, 2022, failing which the contract will be terminated and Galaxy will be required to return the deposit to the purchaser.”

That is exactly what happened. “The Union Wharf property was under contract for sale for the agreed price of $10m. That sale collapsed as a result of the imposition of the injunction requested by [Mr Nygard],” Justice Grant-Thompson wrote.

“Mr Mackey detailed and defined in testimony his personal involvement in the preparation of the agreement for sale, obtaining the requisite Investment Board approval, futile attempts

to obtain an extension of time - when Galaxy Group was faced with a notice to complete but could not complete because of the injunction - the eventual collapse of the sale and the return to Buccara of the deposit.”

CFAL, the Bahamian investment firm, estimated “the value of loss of opportunity” to Galaxy Group from the $10m sale’s collapse at $241,842. “Due to the enforcement of the original injunction, the defendants were forced to abruptly halt the sale of the Union Wharf property, which resulted in a loss of opportunity,” Justice GrantThompson ruled.

“It is clear to this court that the conduct of the applicant was in fact in defiance of the court’s Orders, which resulted in damages which were a direct consequence of the granted Injunction. The respondents are fully entitled to compensation/damages.”

While accepting CFAL’s $241,842 “loss of opportunity” calculation, Justice

Grant-Thompson nevertheless trimmed the $225,000 claimed by IPG Family Office for services provided to Galaxy Group by $75,000 to $150,000. And she cut a second set of billings from IPG Family Office to Galaxy Group from $114,000 to $100,000. Legal fees of $75,176 were also awarded.

“We were successful in getting the injunction set aside and the action dismissed,” Mrs Lockhart-Charles told Tribune Business, “and getting a court Order against Peter Nygard so that he pays the costs and gives compensation for the damages caused by the action he filed.”

Enforcing the damages and costs award will be the hard part. Besides a likely lengthy jail term in Toronto, the embattled 82 year-old Mr Nygard still faces similar sexual assault charges in three other jurisdictions including New York. He is presently fighting extradition to the US.

PAGE 10, Thursday, November 30, 2023

THE TRIBUNE

GM SAYS IT CAN HANDLE RISING LABOR COSTS AS IT ANNOUNCES HUGE SHARE BUYBACK AND DIVIDEND INCREASE

By TOM KRISHER AP Auto Writer

UNITED Auto Workers members join the picket line, in Detroit, Friday, Sept. 15, 2023. General Motors says pretax earnings took a $1.1 billion hit this year from a six-week strike by autoworkers, but the company expects to absorb the costs of a new contract and is even raising its dividend.

The Detroit automaker on Wednesday, Nov. 29, 2023 reinstated its full-year earnings forecast that was withdrawn after the United Auto Workers began targeting the factories of Detroit automakers with strikes on Sept. 15.

Photo:Paul Sancya/AP

CLEARLY frustrated with its languishing share price, General Motors on Wednesday announced a massive stock buyback plan, raised its dividend and told investors it can absorb increased labor costs from a six-week autoworkers strike.

The Detroit company said it lost production of 95,000 vehicles due to the United Auto Workers walkouts, costing the company $1.1 billion. But due to $2 billion worth of annual efficiency gains and cost reductions expected by the end of next year, the company said it can can handle $9.3 billion in labor cost increases from U.S. and Canadian union contracts through April of 2028.

The deals, GM said, will increase costs per vehicle by $500 next year and $575 by the end of the contracts, but analysts say competition will limit the company's ability to raise prices.

"We are finalizing a 2024 budget that will fully offset the incremental costs of our new labor agreements, and the long-term plan we are executing includes reducing the capital intensity of the business, developing products even more efficiently and further reducing our fixed and variable costs," CEO Mary Barra said in a prepared statement.

On a conference call with analysts, Barra called GM's stock price "disappointing to everyone" even with record profits and cash flow.

The shares, which were trading around $28 before Wednesday, were priced 15% below the 2010 initial public offering price when the company emerged from bankruptcy, she said.

The company said it plans to buy back $10 billion of its shares over the next year, about one quarter of its $44 billion market value, with $6.8 billion coming immediately. A spokesman says GM expects the stock buyback to end up at about 20% of the company's outstanding shares, based on an expected price increases.

In January, GM will raise its dividend by a third to 12 cents per share, another maneuver aimed at boosting the share price.

The plan worked, at least on Wednesday. At midday, GM stock rose almost 13% to $31.71. But the shares

are still down over 20% in the past year.

GM also reinstated its full year earnings forecast that was withdrawn after the UAW began targeting the factories of Detroit automakers with strikes on Sept. 15. Those strikes continued at GM until Oct. 30.

The company now predicts full-year net income of $9.1 billion to $9.7 billion, down from its previous outlook of $9.3 billion to $10.7 billion. But GM expects to generate more cash for the full year. It expects free cash flow of $10.5 billion to $11.5 billion, an increase from a previous forecast of $7 billion to $9 billion.

To get there, GM plans to cut capital spending, including a slowdown in spending on electric vehicles and at Cruise, its troubled autonomous vehicle unit. California regulators revoked the San Francisco-based subsidiary's robotaxi license last month after one of its vehicles dragged a pedestrian to the side of a street after the person was hit by another car.

Barra blamed some of the stock price slide on problems at Cruise. She expects the pace of Cruise's expansion to slow when driverless taxi operations resume, with spending down hundreds of millions of dollars next year compared with this year.

GM had big plans for Cruise, which it bought eight years ago. The company had predicted $1 billion in annual revenue by 2025 — a big jump from the $106 million last year. During the first nine months of this year Cruise posted pretax losses of $1.9 billion.

GM has replaced Cruise's management after allegations that it wasn't forthcoming with regulators about the pedestrian crash.

Barra said she's awaiting the results of independent reviews of Cruise's technology and response to the crash before announcing further action.

Barra also told investors in a letter that she's disappointed in the pace of GM's electric vehicle production, which she attributed to difficulties in assembling batteries.

But she wrote that GM has made organizational improvements, and the company expects higher EV production and improved margins next year.

"While the rate of growth for EVs is slowing in the near term, it is projected to accelerate and grow substantially in the long term as customers have more EV choices, and the public charging network expands," Barra wrote.

Earlier in the year GM delayed electric pickup truck production at a factory north of Detroit until 2025 as the growth rate in electric vehicle sales slowed.

In June of 2022, electric vehicle sales were growing about 90% year over year, but by the same month this year, the growth rate had slowed to about 50%.

Automakers fear sales will slow further with consumers having reservations about EV prices, how far they can travel and whether charging stations will be available.

Barra wrote in a letter to investors that GM has a strong cash balance due to record profits from selling gas-powered vehicles and more efficient internal combustion and electric vehicle operations.

"We have a clear path forward that includes greater operating and investment efficiency," she wrote.

Barra also tried to allay investor concern over the cost of new labor contracts that she said were higher than the company expected, but not significantly.

GM, as well as rivals Ford and Jeep maker Stellantis, agreed to new contracts with the UAW that raise top assembly plant worker pay by about 33% by the time the deals expire in April of 2028. The new contracts also ended some lower tiers of wages, gave raises to temporary workers and shortened the time it takes for full-time workers to get to the top of the pay scale.

At the end of the contract top-scale assembly workers will make about $42 per hour, plus they'll get annual profit-sharing checks.

UAW President Shawn Fain said during the strike that labor costs are only 4% to 5% of a vehicle's costs, and that the companies were making billions and could afford to pay workers more.

THE TRIBUNE

Thursday, November 30, 2023, PAGE 11

CONSUMER REPORTS: ELECTRIC VEHICLES LESS RELIABLE, ON AVERAGE, THAN CONVENTIONAL CARS AND TRUCKS

By TOM KRISHER AP Auto Writer ELECTRIC vehicles have proved far less reliable, on average, than gasoline-powered cars, trucks and SUVs, according to the latest survey by Consumer Reports, which found that EVs from the 2021 through 2023 model years encountered nearly 80% more problems than did vehicles propelled by internal combustion engines.

Consumer Reports said EV owners most frequently reported troubles with battery and charging systems as well as flaws in how the vehicles’ body panels and interior parts fit together.

The magazine and website noted that EV manufacturers are still learning to construct completely new power systems, and it suggested that as they do, the overall reliability of electric vehicles should improve.

“This story is really one of growing pains,” said Jake Fisher, senior director of auto testing at Consumer Reports. “It’s a story of just working out the bugs and the kinks of new technology.”

Still, Consumer Reports noted that lingering concerns about reliability will likely add to the issues that give many buyers pause when considering a switch to the new technology, joining concerns about higher costs, too few charging stations and long charging times.

The growth of electric vehicle sales has slowed sharply since last year. In June 2022, EV sales were growing about 90% year over year. By June of this year the 12-month growth rate had slowed to about 50%, and automakers have become increasingly fearful that the pace will weaken further.

Reflecting that concern, about 3,900 U.S. auto dealers this week signed a letter to President Joe Biden, asking him to rethink what the dealers called unrealistic fuel economy and emissions requirements that could require electric vehicles to reach 67% of total U.S. vehicle sales by 2032.

Consumer enthusiasm for EVs, their letter warned, has stalled.

“They are not selling nearly as fast as they are arriving at our dealerships, even with deep price cuts, manufacturer incentives and generous government incentives,” the letter said.

The Consumer Reports survey also concluded that plug-in hybrids, which can

travel on battery power before a gas-electric powertrain kicks in, are more problem-prone than fully electric vehicles. Plug-ins, Fisher pointed out, contain two separate and complex power systems in which glitches can arise. He also noted that brands that over time have proved less reliable, in general, such as Jeep and Volvo, have started mass-producing plug-in hybrids.

But tried-and-true integrated gas-electric hybrid systems are more reliable than gasoline vehicles, largely because they have been in use for about a quarter-century and the bugs have mostly been worked out, Fisher said.

Consumer Reports derived its survey data from subscribers who owned EVs from the 2021 through 2023 model years and compared them with other vehicle types. In calculating a vehicle’s average problem rate, the organization assigned extra weight to serious problems such as battery or engine failures.

EVs from the 2021 and 2022 model years overall had more than twice the problem rates of internal combustion vehicles. The rates were more closely aligned in the 2023 model year: Those EVs had only 21% more problems than gasoline vehicles, Fisher said.

The narrower gap in problems between EVs and combustion vehicles in the 2023 model year, Fisher said, suggested that the reliability of EVs, in general, is improving. Still, he noted, newer vehicles tend to have lower problem rates that rise as they age.

Among the EV owners who have had problems with their vehicles is Michael Coram of Lockport, New York, near Buffalo. In July, intent on reducing his commuting costs, Coram bought a 2023 Chevrolet Bolt electric SUV, attracted by its sporty handling. Coram, 44, a heating and air conditioning technician, said he ran into one annoying problem: On a chilly day in mid-November, his Bolt wouldn’t shift into drive.

Eventually, after Coram had turned the car on and off 10 or 12 times, the problem fixed itself, and he hasn’t experienced it since.

Other owners on a Bolt social media forum told Coram that he might have

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shifted into drive before the SUV’s computer had finished its startup sequence.

“It kind of is a bit too much for the computer to handle,” he said.

Now, Coram waits for all of the dashboard lights to go out before pushing the drive button. He said his dealer told him that mechanics will check the Bolt when a loaner car is available for him.

In 2021, General Motors recalled its popular electric Bolt from the 2017 through 2022 model years to replace the batteries because of manufacturing defects that could cause fires. Fisher said Bolt owners had to limit how much they charged the batteries and had to park them outdoors until replacement batteries became available. Repairs were still being made this year, Fisher said, causing some Bolt owners to report problems in the Consumer Reports survey.

In addition, owners of Hyundai’s Ioniq 5 EV reported battery and charging issues related to a charging control computer, which, in some cases, caused the vehicles to stall.

Rivian, an upstart manufacturer of electric pickup trucks and SUVs, had trouble getting body panels to line up correctly and with broken interior parts, Fisher said.

Tesla, the EV sales leader, which now has years of experience building vehicles, showed improvement in reliability, Fisher said.

This was largely because a high proportion of Tesla’s sales involve the relatively small and less-expensive Model Y SUV and Model 3 cars. Those are simpler to build and lack the glitchprone new technology that Telsa offers in its more expensive vehicles, the Models S and X. Tesla ranked 14th out of 30 automotive brands in the 2023 survey, up from 19th in 2022.

Lexus, Toyota’s luxury brand, was the most reliable in the survey, followed by Toyota, Mini, Acura and Honda. The five lowest-ranking brands were Jeep, Volkswagen,

Rivian, Mercedes-Benz and Chrysler.

The most reliable segment of the market was compact cars, followed by sportscars, small pickups, midsize and large cars, luxury midsize and large

cars. Electric cars, electric SUVs, full-size pickups, midsize pickups, and electric pickups had the worst reliability.

Consumer Reports says its survey of subscribers, representing 330,000

vehicles, took place last spring and summer. It asked owners of vehicles from the 2000 through 2023 model years, with a smattering of 2024 models, about problems they had experienced in the previous 12 months.

PAGE 12, Thursday, November 30, 2023

THE TRIBUNE

Biden visits Boebert’s district to reject Republican criticism of green policies

By FATIMA HUSSEIN AND CHRIS MEGERIAN Associated Press PRESIDENT Joe Biden used a backdrop of the world's largest facility for wind tower manufacturing to sharpen his criticism of Republicans Wednesday, saying the company's expansion validates an environmental agenda his political opponents want to undo.

The company that Biden visited, CS Wind, is on the home turf of Rep. Lauren Boebert of Colorado, who has described the president's climate policies as "a massive failure."

"Did you all know that you're part of a massive failure?" Biden said to the workers and local officials gathered for his speech as he touted hundreds of new jobs fueled by tax incentives for clean energy initiatives.

"None of that sounds like a massive failure to me. How about you?"

Biden's rebuttal to Boebert was fresh evidence of the Democratic president's intention to more aggressively push back against what he calls "MAGA Republicans." He has been struggling with low approval ratings, and Democrats are anxious for him to gain ground politically ahead of a likely rematch against Donald Trump next year.

Boebert, who has cultivated a national reputation as a right-flank insurgent, taunted Biden from Washington, where she said, "I hope there's not a silver alert that goes out for him" during his trip. The alerts can be sent for missing elderly people with dementia.

Pueblo, a city of about 110,000 south of Denver, is one of the anchors of Colorado's sprawling 3rd Congressional District, which covers more ground than Pennsylvania. Boebert won her seat in 2020 and barely held on to it during the 2022 midterms.

Democrats are eyeing it as one of their top pickup opportunities as they aim to retake control of the U.S. House of Representatives, which is narrowly controlled by Republicans.

Boebert suggested, "Joe Biden coming to my district probably helps me win reelection."

She recently suffered an embarrassing episode when she was kicked out of a musical production of "Beetlejuice," where she was spotted vaping.

She faces a likely rematch against Democratic candidate Adam Frisch.

During his speech in Pueblo, Biden rejected criticisms that his policies are a form of socialism.

"My plan is rooted in what has always worked best for this country: Investing in America. Investing in Americans," Biden said, putting his hand on the shoulder of a worker wearing a bright yellow safety vest.

Biden was originally scheduled to visit Pueblo on Oct. 16, but the trip was postponed so he could remain in Washington to focus on the conflict in the Middle East. Two days later he went on a last-minute trip to Israel to show support for the country after the Oct. 7 attack by Hamas.

CS Wind is undergoing a $200 million expansion that is expected to create 850 jobs by 2026 with help from the tax benefits in Biden's Inflation Reduction Act, which included hundreds of billions of dollars of financial incentives.

In addition, a new analysis from the Treasury Department said clean energy investments have mostly flowed to communities with below-average wages and above-average child poverty. The White House said the data indicated that Biden's policies are expanding economic opportunity.

Biden arrived in Colorado on Tuesday after attending a memorial service in Atlanta for Rosalynn Carter, the former first lady and wife of former President Jimmy Carter. He spoke at a Tuesday night fundraiser in Denver, where he said Trump and Republicans want to abandon his administration's efforts.

"We're now investing in America," he said.

Biden in recent weeks has been taking an increasingly confrontational stance toward Republicans. For example, during a White House event focused on supply chains on Monday, he unleashed a broad critique.

PRESIDENT Joe Biden speaks at CS Wind, Wednesday, Nov. 29, 2023, in Pueblo, Colo., as workers stand on the stage with him.

Photo:Jack Dempsey/AP

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL The Public is hereby advised that I, RIQI KRISTINIQUE FOUNTAIN of P.O. Box AB-20353, Curry’s Lane, Murphy Town, Abaco, Bahamas, intend to change my name to RIQI KRISTINIQUE FOUNTAIN TINKER. 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, The Bahamas no later than Thirty (30) days after the date of publication of this notice.

NOTICE NOTICE is hereby given that BRENDA GLADYS PRUDHOMME of Hay Street, New Providence, 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 November, 2023 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

PAGE 14, Thursday, November 30, 2023

THE TRIBUNE

Emirati-designated COP28 leader forcefully denies report UAE wanted to seek oil deals in summit COP28 President Sultan al-Jaber walks through the venue for the COP28 U.N. Climate Summit, Wednesday, Nov. 29, 2023, in Dubai, United Arab Emirates.

Photo:Kamran Jebreili/AP

By JON GAMBRELL AND MALAK HARB Associated Press THE Emirati presidentdesignate for the upcoming United Nations COP28 climate talks forcefully denied Wednesday a report alleging his nation planned to use the summit to strike oil and gas deals.

Sultan al-Jaber, who also leads the massive staterun Abu Dhabi National Oil Co., called the allegations from a BBC report "an attempt to undermine the work of the COP28 presidency" before the talks were set to begin on Thursday. The report cited what it described as "leaked briefing documents" the broadcaster said showed the Emirates planned to discuss oil, gas and renewable energy deals with several nations.

"These allegations are false, not true, incorrect and not accurate," al-Jaber told a small group of journalists gathered for a news conference that also was aired live. "I promise you never ever did I see these talking points that they refer to or that I ever even used such talking points in my discussions."

He added: "So please for once, respect who we are, respect what we have achieved over the years and respect the fact that we have been clear open and clean and honest and transparent on how we want to conduct this COP process."

Asked for comment, the BBC said: "The investigation was rigorously researched according to the highest editorial standards." The broadcaster did not elaborate regarding the report, which it published with the Center for Climate Reporting.

Immediately after the remarks, a faked news release sent to The Associated Press described al-Jaber as having agreed to resign. COP28 organizers with the UAE delegation later confirmed it was false

and al-Jaber would continue in his role.

Each year, the country hosting the U.N. negotiations known as the Conference of the Parties — where COP gets its name — nominates a person to chair the talks. Hosts typically pick a veteran diplomat as the talks can be difficult to steer between competing nations and their interests.

The nominee's position as "COP president" is confirmed by delegates at the start of the talks, usually without objections.

However, activists' ire over al-Jaber's selection could still see a turbulent start to the negotiations.

ADNOC, the state oil company, has plans to increase its production of crude oil from 4 million barrels a day up to 5 million, boosting its production of carbon-emitting crude oil and natural gas.

Al-Jaber, a 50-year-old longtime climate envoy, is a trusted confidant of UAE leader Sheikh Mohammed bin Zayed Al Nahyan. He's been behind tens of billions of dollars spent or pledged toward renewable energy in the federation of seven sheikhdoms on the Arabian Peninsula. Al-Jaber escorted Sheikh Mohammed through the COP28 site on Wednesday ahead of his remarks.

But the fact that al-Jaber repeatedly defended himself and the country from activists' criticism is telling in the Emirates, an autocratic nation that while a key U.S. business and military ally still tightly controls speech, bans political parties and criminalizes labor strikes.

U.S President Joe Biden, who has attended the last two COP meetings in Scotland and Egypt, will not attend this summit amid the Israel-Hamas war. Vice President Kamala Harris will attend in his place.

ARGENTINA’S LIBERTARIAN PRESIDENTELECT PICKS A FORMER CENTRAL BANK CHIEF AS HIS ECONOMY MINISTER

By DANIEL POLITI Associated Press ARGENTINA'S president-elect, Javier Milei, announced Wednesday he has chosen Luis Caputo, a former finance minister and Central Bank chief known as an expert in markets, to lead the Economy Ministry when the right-wing leader takes office on Dec. 10.

The pick confirms that Milei, a libertarian outsider, is building a more orthodox team to manage Argentina's economy, which is suffering from red-hot inflation running at an annual rate of 143%.

"Yes, the economy minister is Luis Caputo," Milei said in a radio interview shortly after landing from a two-day trip to the United States, where he met with officials from the Biden administration.

As the first finance minister in former conservative President Mauricio Macri's government, Caputo was in charge of a debt restructuring and later became Central Bank chief.

Macri's party backed Milei in a Nov. 19 presidential runoff election, and his allies now are jockeying for Cabinet positions, leading to some tensions with the president-elect's traditional libertarian allies.

The market has welcomed signs of Milei's more orthodox choices for key Cabinet positions. Argentine stocks and bonds have increased while the local currency, the peso, has appreciated slightly in financial markets since he won the election.

The choice of Caputo is "a wise choice in order to bring some kind of favorable expectations for markets regarding what economic policy is going to look like, at least in the short run," Nicolás Saldías, a senior analyst at the Economist Intelligence Unit for Latin America and the Caribbean, said. "He'll be very orthodox, and he understands the financial markets quite well."

Milei had previously said he was going to hold off until his inauguration to unveil the post of economy minister, because he feared his choice could get blamed for any economic woes before he even takes office.

Caputo nonetheless faces challenges on multiple fronts. Milei is warning Argentines to expect a painful period of high inflation and slow growth even as he seeks put many public companies into private hands and to reduce the size of the state more broadly.

"There will be stagflation because when you carry out the fiscal restructuring, it will negatively impact economic activity," Milei said in a radio interview Wednesday.

"What we are doing is creating all the mechanisms to stop the money supply and put an end to inflation within a span of 18 to 24 months."

One of Milei's main campaign promises involved getting rid of the Central Bank of Argentina as he said the country's three-digit inflation rate was largely due to the monetary authority's penchant for printing money.

PAGE 16, Thursday, November 30, 2023

THE TRIBUNE

Wall Street drifts to a mixed close, weighed down by Big Tech A MAN passes the "Fearless Girl" statue in front of the New York Stock Exchange in New York on Friday, November 3, 2023. Shares opened lower in Europe after a mixed day in Asia on Tuesday as investors waited for updates on inflation and how American consumers are feeling about the economy.

Photo:Ted Shaffrey/AP

By DAMIAN J. TROISE AND ALEX VEIGA AP Business Writers WALL Street capped a choppy day of trading with a mixed finish Wednesday as a late-afternoon pullback among several Big Tech companies offset gains elsewhere in the market.

The S&P 500 closed 0.1% lower after having been up by 0.7% earlier in the day.

The Dow Jones Industrial Average had been up 0.5% before finishing with a gain of just 0.1%. The techheavy Nasdaq composite fell 0.2%.

Facebook parent company Meta fell 2%, Google's parent company Alphabet gave up 1.6% and Microsoft dropped 1%.

Still, gainers outnumbered decliners by a nearly 2-to-1 margin on the New York Stock Exchange.

Automakers were among the bright spots. General Motors surged 9.4% after the company announced a big stock buyback, raised its dividend and told investors it won't have any trouble absorbing the costs of its new labor contract. The stock is still down 6.1% for the year, while the S&P 500 is up more than 18%.

GM and its rivals agreed to new contracts with the United Auto Workers and Canadian auto workers in late October following strikes that lasted more than a month.

Ford rose 2.1% and Jeep maker Stellantis rose 5.3%.

All told, the S&P 500 fell 4.31 points to 4,550.58, the Dow rose 13.44 points to 35,430.42, and the Nasdaq dropped 23.27 points to 14,258.49.

Stocks rose in Europe and were mixed in Asia.

Treasury yields fell, taking more pressure off of stocks. The yield on the 10-year Treasury, which influences mortgage rates, slipped to 4.26% from 4.33%. The yield on the 2-year Treasury fell sharply to 4.66% from 4.75%.

Wall Street also received another encouraging economic update Wednesday.

The U.S. economy grew at a brisk 5.2% annual pace from July through September, the government reported Wednesday, an

upgrade from its previous estimate of 4.9%.

The revision helps give more credence to the argument that a recession was always unlikely in 2023, said Jamie Cox, managing partner for Harris Financial Group. Fears about a recession have been waning throughout the year amid strong economic reports.

"Below the surface though, you're starting to see some cracks in the data," he said. "Consumer spending having a negative impact on GDP is an unusual circumstance."

Consumer spending, the lifeblood of the economy, rose at a 3.6% annual rate from July through September. That's still healthy, but a downgrade from the previous estimate of 4%.

The report follows an encouraging survey on consumer confidence released Tuesday.

The broader economy has remained resilient partly because of strong consumer spending, despite lingering pressure from inflation. Wall Street will be closely watching retailers as they move through the important holiday shopping season. A record 200.4 million consumers shopped online and in stores over the holiday weekend, according to the National Retail Federation.

Sneaker and athletic apparel retailer Foot Locker rose 16.1% after reporting strong thirdquarter earnings and giving investors an encouraging update on its financial forecast. Several other big retailers also gained ground.

Nike rose 1.5% and Lululemon Athletica rose 2.5%.

Investors will get another key economic update on Thursday when the government releases its October data on the Federal Reserve's preferred measure of inflation. Economists expect that measure to continue easing, as it has been since the middle of 2022. The Federal Reserve will meet again in December to update its interest rate policy.

Wall Street expects the Fed to keep its benchmark interest rate steady and is betting that it is finished hiking rates, which remain at their highest levels in two decades. The central bank has said it will base future rate decisions on the latest economic data, though recent statements from officials have boosted hopes that the most aggressive round of rate hikes is at an end.

Christopher Waller, a member of the Fed's Board of Governors, signaled Tuesday that the central bank is likely finished raising rates and could cut rates as early as spring. Wall Street is betting that the Fed will start cutting rates by the middle of 2024.

Several stocks rallied Wednesday after delivering strong financial updates.

NetApp jumped 14.6% after easily beating analysts' forecasts for earnings in its latest quarter and raising its outlook for the year.

TurboTax maker Intuit rose 2.2% and software maker Workday gained 11% following encouraging results and forecasts.

On the losing end was Spam maker Hormel foods, which fell 4.6% after giving investors a weak profit forecast.

Meanwhile, Las Vegas Sands slid 4.9% after Miriam Adelson, the casino operator's controlling shareholder, sold some $2 billion in stock. The move came ahead of an announcement Wednesday that Adelson's family have agreed to buy a majority stake in the Dallas Mavericks NBA franchise, which is owned by Mark Cuban.