12052018 BUSINESS

business@tribunemedia.net

WEDNESDAY, DECEMBER 5, 2018

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Cruise bid criticism ‘absolute rubbish’

Chamber confident ‘reason will prevail’ * Minister ‘not in slightest bit worried’ by claims in labour disputes * Tender vital to Nassau’s ‘survival as top port’

By NEIL HARTNELL * Harder to get passengers off newer vessels Tribune Business Editor nhartnell@tribunemedia.net

THE Chamber of Commerce’s chairman yesterday expressed optimism that “reason will prevail”, giving the Government a vote of confidence in its ability to prevent further industrial unrest.

Michael Maura, pictured, responding to Tribune Business’ questions via e-mail, said the Chamber and wider private sector were “today cautiously optimistic with respect to the industrial relations environment” despite the multiple disputes that have erupted in both the public and private sectors.

With the Bahamas Nurses Union (BNU) adding to the Government’s concerns by overwhelmingly voting to strike yesterday, Mr Maura added that the Chamber has faith they - as well as members of the Consultant Physicians Staff Association (CPSA) and Bahamas Doctors Union (BDU) “will be reasonable” over their increased salary and benefit demands.

“We believe that the doctors and nurses will be reasonable, and that they

SEE PAGE 3

Govt urged to exit utilities ownership

By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net GOVERNMENTS must start “divesting” their interest in state-owned utilities, an ex-Water & Sewerage general manager urged yesterday, with progress often stifled by changing administrations.

Glen Laville, pictured, who was sacked earlier this year in the wake of the Ernst & Young (EY) forensic audit’s findings, re-emerged as a panelist at yesterday’s Caribbean Infrastructure Forum (CARIF) to confirm how government interference and politically-led decision-making often resulted in state-owned utilities supplying services at a price that failed to cover their costs.

“One of the things that has been shown in a lot of other jurisdictions is that even if government owns the utility, and they establish an independent regulator to set tariffs, the Government does not allow the utility to submit a tariff request, meaning that the utility does not recover the

SEE PAGE 3

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

A

CABINET minister yesterday blasted criticism of the Nassau cruise port bidding process as “absolute rubbish”, adding that it was vital to the destination’s “survival as a premier Caribbean port”.

Dionisio D’Aguilar, pictured, minister of tourism and aviation, told Tribune Business that he was “not in the slightest bit worried”

NASSAU Cruise Port by claims that the Request for Proposal’s (RFP) fairness and transparency had been compromised through its origins in an “unsolicited proposal” submitted by a major international cruise port operator and its

Bahamian partner.

The minister argued that such concerns, raised anonymously just days before the December 7 deadline for bids to be submitted, represented an effort to discredit and derail a process

Top civil servant: Ministries ‘failing’ to manage staff

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

And the Commonwealth Union of Hotel Services and Allied Workers (CUHSAW), which acts for the line staff, had been asking for “over $3m” - a sum near-triple the Grand

A SENIOR civil servant has “unequivocally” warned that all government ministries are failing to properly manage and develop personnel, and have “major room for improvement” in both areas.

Elise Delancey, permanent secretary in the Ministry of Public Service, was quoted by a recent Inter-American Development Bank (IDB) report as revealing that ministries and departments are not living up to their “responsibilities” to effectively manage staff, The report, The state of the civil service in The Bahamas by Joan Underwood, highlights numerous weaknesses and deficiencies that make the Bahamian public service among the worst in the Caribbean, scoring only 19 out of 100 for civil service development and quality.

It said: “The permanent secretary [Ms Delancey] in the Ministry of Public Service stated unequivocally that all line ministries are failing in their personnel management responsibilities. Some internal stakeholders suggested that this was due, at least in part, to the practice of promoting human resources practitioners to fill the role of deputy permanent secretaries and

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vital to maintaining Nassau’s competitiveness as a major cruise port.

“My position is that the Government of The Bahamas wants to improve the condition of the cruise port at Prince George Dock, and it determined that an RFP was the fairest, and most open and transparent way, to solicit interest in the project,” Mr D’Aguilar told Tribune Business.

“That’s what we’re doing.

I don’t know how anyone can say we’re not open and transparent because we’re soliciting proposals from anyone who’s interested.

We’ve given people at least

SEE PAGE 4

End-of-week payout deal target for 227 Lucayan workers

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Grand Lucayan’s chairman yesterday said he is “aiming” to finalise voluntary separation packages for 227 staff by week’s end, after “substantially” narrowing differences with the unions.

Michael Scott, who heads the Government-owned special purpose vehicle (SPV) that controls the resort, confirmed to Tribune Business that the resort’s remaining workforce will be reduced by more than 50 percent by allowing those who wish to exit to do so.

Describing himself as “reasonably satisfied” with the latest financial and other terms proposed, the attorney said the Grand Lucayan and two trade unions representing its staff were “very close, very close” to finalising the deal.

“I’m certainly aiming for that result,” Mr Scott told this newspaper, when asked if he was seeking to finalise the voluntary separations by week’s end. “I’m having a bit of an issue with the line staff, but it will be resolved.

It’s very close. There will be more by the end of this week.”

Some 90 managerial and 137 line staff have indicated their willingness to accept the packages offered and move on, which will reduce the workforce at the Grand Lucayan’s sole remaining property, the 196-room Lighthouse Pointe, by more than half to “just under 200”.

Mr Scott added that reaching agreement on the separation packages would be a “massive” development, and agreed it was “a fair statement” to suggest that the resort and its two unions had made major progress in bridging the initial gulf between them.

The unions, on behalf of their members, had initially demanded $4.6m more in compensation than the Government/resort was willing to offer. The Bahamas Hotel Managerial Association (BHMA), which represents the Grand Lucayan’s middle management staff, was seeking a collective $5.4m payout for its members - double the $2.7m offered by the resort’s board.

* Resort, unions ‘substantially’ narrow divide * Managers send in ‘final proposal’ yesterday * Voluntary exits to cut staff more than 50%

MICHAEL SCOTT

OBIE FERGUSON

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THE TRIBUNE

FINANCIAL CENTRE MARKS BANK’S FIFTH ANNIVERSARY A BAHAMAS-BASED financial institution has celebrated its fifth anniversary with the inauguration of its financial centre to show its belief this nation can become a “top five” financial centre.

Capital Union Bank’s (CUB) headquarters unveiling was attended

by Brent Symonette, minister of financial services, trade and industry and Immigration, as well as John A Rolle, the Central Bank’s governor.

CUB’s Bahamian operations are part of a global network with $30bn in client assets under administration/management, overseen by some 200 staff.

The institution’s shareholders have also invested in establishing several Bahamian subsidiaries over the past five years.

These include Premium Life Insurance, an insurance company, and UCAP Bahamas, an asset manager.

CUB, in a joint venture

RIBBON cutting of CUB financial centre with government officials and CUB staff.

with Jean-Marie Formigé, also created Isles of Knight as a financial and corporate services provider, and are due to convert it into a local trust company during the next several months.

CUB’s equity investors have also quadrupled its issued capital base, while affiliated companies have established asset management and financial services entities in the

Cayman Islands, Bermuda, Hong Kong, Singapore, Taipei, Tokyo, Bangkok, New York, Miami, Geneva, Zurich and Luxembourg.

Other offices will shortly be opened in London, Los

Angeles and San Diego.

Lawrence Howell, CUB’s chairman, said: “We have committed ourselves financially through the quadrupling of our CUB capital base, and through

the move to our new premises, to helping to further develop The Bahamas into what we believe will become one of the world’s top five international financial centres”.

CANADA CELEBRATES CIBC pledges commitment AIR 70 YEARS IN THE BAHAMAS to Caribbean infrastructure ALMOST one-third of CIBC First Caribbean’s $1.8bn in financing for regional infrastructure projects over the past three years has gone to energy utilities in The Bahamas and elsewhere.

Colette Delaney, the bank’s chief executive, said utilities in Aruba, Curacao and Jamaica had also received funding as she yesterday delivered remarks at the opening of CARIF 2018 – the third Caribbean Infrastructure Forum - at Baha Mar. “We believe that as a leading regional bank we have an important role to play in this sector. Each of the projects we funded was created in response to some specific opportunity or need that existed somewhere in our region,” Ms Delaney said.

The decision to cosponsor the conference with KPMG is intended to underline CIBC FirstCaribbean’s ongoing commitment to the region. Ms Delaney said the two-day conference focuses on some of the major challenges and opportunities confronting the region in terms of infrastructure planning and development.

“These include climate change with its consequent rise in sea level and all that this portends for a region whose key earner is white sandy beaches; stronger

DR Hubert Minnis is shown at CARIF 2018 yesterday with Marie Rodland-Allen, CIBC managing director, left, and Colette Delaney, the bank’s regional chief executive. storms in areas where building codes are weak or non-existent; rising landfills and shrinking land space as islands struggle to cope with solid waste disposal,” she said. “These are some of the real challenges facing this region, which the right partnerships can turn into opportunities.

“Last year’s devastating hurricanes taught us some critically important lessons.

Chief among them was the very vulnerable nature of key infrastructure in the Caribbean. We all saw how storms can paralyse entire island-nations, many of which have one or two major highways, a single air and seaport, a single power plant and key government and private sector buildings clustered in one location.

Ms Delaney said Hurricanes Irma and Maria had a

direct impact on CIBC FirstCaribbean operations in five territories – Anguilla, Antigua, British Virgin Islands, Dominica and St Maarten.

She added that if the Caribbean is to continue to grow and maximise its potential then “regional bankers and builders, politicians and policymakers must ensure that future projects – roads, bridges, ports, office buildings and hotels - are not only constructed to withstand the super storms of the future but are also situated in locations that give due consideration to storm surges, overflowing rivers and landslides”.

“In addition, we must also ensure that insurance coverage to mitigate these risks is adequately implemented, regulated and maintained,” the CIBC chief continued.

She added that even

though the Caribbean is blessed with an almost infinite supply of sun, wind, water and thermal energy, they remain largely untapped resources.

Creative private-public partnerships (PPPs) for the development and diversification of the energy sector are needed for a more balanced use of green energy along with that derived from traditional fossil fuels.

“It is clear,” Ms Delaney said, “that both public and private investment in physical capital is crucial to driving Caribbean economic development and, consequently, the creation of wealth for its citizens.

“As an example, a quick look at a sample of 128 developed and developing countries suggests that the quality of a country’s seaport infrastructure and shipping logistics, coupled with widespread access to both telecommunications and electricity, are all highly correlated with a country’s GDP per capita and thus its overall level of development.

“Conversely, a lack of investment in critical infrastructure and essential services in a well-planned and executed manner can cripple a country’s economic growth and stifle business development opportunities and foreign direct investment.”

AIR Canada flight arrives at LPIA

BAHAMAS Tourism staff presents plague to Air Canada staff.

AIR Canada this week celebrated 70 years of continuous service to The Bahamas. An Air Canada flight is honoured as tourism and airline officials

celebrate with the Ministry of Tourism and Aviation’s deputy director-general of tourism, Ellison “Tommy” Thompson, centre right.

Photos: Kemuel Stubbs/BIS

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THE TRIBUNE

Wednesday, December 5, 2018, PAGE 3

PM: $5BN INFRASTRUCTURE PROJECTS IN THE ‘PIPELINE’

By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net THE PRIME Minister yesterday said The Bahamas has more than $5bn worth of infrastructure investment projects in the “pipeline”, amid its growing interest in “leveraging” public-private partnerships (PPPs).

Dr Hubert Minnis, pictured, delivering the opening address at the Caribbean Infrastructure Forum, said the delivery of “quality infrastructure” was “especially challenging” for small island nations such

as The Bahamas.

“Firstly the geographic position of our islands, added to low population density, inflates average infrastructure cost for the Government and complicates management and maintenance obligations,” he said. “Our

geographic profile also translates into disproportionately high infrastructure demands as air and sea services play a crucial role in inter-island transportation.”

Dr Minnis added that The Bahamas has some 56 airports, of which 29 are government-owned and maintained. All required investment to upgrade their facilities and ensure ongoing compliance with global aviation standards.

“With IDB support to the tune of $35m, The Bahamas is set to improve airport infrastructure in four of our

Talent shortages challenge on NHI

By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net CONTINUING industrial unrest in the Bahamian healthcare sector underscores the need for this nation to “retain, regain and increase” workforce talent so it can realise its Universal Health Care (UHC) ambitions.

Dr Mark Birtnell, the KPMG accounting firm’s global chairman and senior partner for healthcare, government and infrastructure, told the Caribbean Infrastructure Forum (CARIF) yesterday that achieving UHC will be impossible without an adequate supply of trained health professionals.

He warned that The Bahamas and other Caribbean nations will have to address increased demand

for trained health professionals, and said: “Only 40 percent of the world’s countries right now have universal health care.

“We are going to see a high demand for talent as countries try to find sufficient doctors and nurses.

That’s a pressing point looking at the doctors’ strike last week in The Bahamas and the threat of industrial action from nurses in The Bahamas. Simply too many people are being drawn to the United States.”

Dr Britnell, who worked on the National Health Insurance (NHI) scheme under the former Christie administration, said: “It’s same story in Jamaica and Barbados. Caribbean countries need to retain, regain and increase the talent in the health system. It would not be possible to provide universal health care if you

do not have an adequate supply of trained healthcare professionals.

“The race for nurses, doctors and allied health professionals is just going to get more severe. Countries need to wake up now because it takes on average ten years to implement universal health care.”

Dr Britnell added that universal health care was not a drag on the economy or costly to society. “Before you start providing free hospital care, just giving people access to basic primary care increases life expectancy, creates a a more productive workforce, development of infrastructure, skills training and creates more jobs,” he said.

“Over a 20-year period that would add five percentage points to the gross domestic product (GDP). That’s a conservative estimate.”

NATURAL RESOURCES BOOST VITAL TO MITIGATING STORMS

By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net CARIBBEAN COUNTRIES must combine “hard infrastructure” with increasing the “resilience” of the natural environment to combat natural disasters, a Bahamian engineer said yesterday.

Carlos Palacious, director of operations for Caribbean Coastal Services, told the Caribbean Infrastructure Forum (CARIF): “We often times focus on creating the hard infrastructure, such as sea walls, when we should also focus on increasing the resilience in our natural environment.

We need to look at replanting areas that have been

Chamber confident ‘reason will prevail’ in labour disputes FROM PAGE ONE

seek a mutually rewarding relationship,” the Chamber chairman said. “I and others in the BCCEC (Bahamas Chamber of Commerce and Employers Confederation believe Prime Minister Minnis will resolve the issues. His professional background naturally provides him with tremendous insight.”

Turning to the hotel industry, and the Bahamas Hotel, Catering and Allied Workers Union’s (BHCAWU) dispute with Atlantis over its new “12-point” disciplinary structure and shift system for housekeeping staff, Mr Maura said it was in the best interests of both sides to work together for the sector and property’s benefit - especially given Baha Mar’s presence.

“Atlantis is a seasoned operator and is very experienced in arriving at a solution,” he added. “It is in the interest of Atlantis and labour to work as partners through the ups and downs.

Atlantis is faced with the unpredictability of the business of tourism, and labour understands that there are times when the support must

devastated and reforesting areas that can help reduce inland flooding.

“We live in what is an ever-changing and evolving climate. We all know of the impact of the hurricane seasons. What we need to understand is the sensitivity and the connection that we have as people, and as a region, and how we are connected to the environment.

“One major take-home from the season is the value of our ecosystem services.

If we allow tourism-based developments, which often get major subsidies and which are sometimes able to circumvent best rules and practices, then we have to look at what long-term impact would that have.”

Mr Palacious added that

his firm has done coastal studies in seven Caribbean countries this year, and found similar results of environmental degradation.

“As a result of long-term damage we are seeing the consequences when we have these storms,” said Mr Palacious.

“As we talk abut advancing and adapting, we have to talk about a cultural shift and how we function as a region.” Mr Palacious said that just as preparations are made for “back-to-school”, similar planning should be made for the hurricane season. He also pointed to the need for programmes to ensure early warning systems and zoning of highly vulnerable areas or areas prone to flooding.

adjust with the ebb and flow of occupancy.

“The labour leadership are also very capable and experienced professionals. The addition of Baha Mar has changed the paradigm and requires a fresh look from both business and labour. We are confident that reason will prevail.”

Dionisio D’Aguilar, minister of tourism and aviation, told Tribune Business yesterday that while he “continues to be concerned” by the dispute the best approach was to let negotiations between Atlantis and the union “play out” in hopes they could reach an amicable settlement.

“I haven’t had a chance to speak to the union president [Darrin Woods] as yet, and think I should speak to them and engage them to really educate myself on the issues,” Mr D’Aguilar said.

“I know that they [the union] already have concerns and I encourage them to dialogue and talk and come to an amicable outcome.

“I’ve purposely stayed out of it to allow both parties to negotiate in good faith. I really have not gotten into the weeds of what the specific issues are. There’s a process the workers go through if they feel the workers are not meeting their demands, and to let it play out is, I guess, the best approach.

“Obviously as minister of

tourism I continue to be concerned by anything that will affect our ability to deliver excellent service and deliver an exceptional product, but as far as I’ve been advised the parties have not reached an impasse, are still talking and negotiating, and we’ll let the process play its way through,” Mr D’Aguilar continued.

“It’s obviously concerning but let the negotiations continue and see where they get to.”

Multiple labour disputes have erupted throughout The Bahamas in the past several weeks, covering virtually the entire nation from Inagua in the south to New Providence and all islands beyond.

Trade unions, especially in the public sector, have begun to flex their industrial muscles and put the Minnis administration - which is grappling with an ongoing fiscal crisis and cash flow issues - to the test with increased salary and benefits demands.

The overriding concern, especially among businesses and the private sector as well as the Government, will be to avoid any disruption to the economy that may result from the heated union environment especially as it heads into the key Christmas tourism and retail shopping season.

Family Islands,” the prime minister said. “Beyond transportation, The Bahamas government also has responsibility for the nearcomplete electrification of the country.”

Dr Minnis added that some of the country’s urgent infrastructure needs include modern schools; hospital and clinics; improved digital infrastructure; and repairs to airports, roads, docks and this nation’s sea defenses.

“It is a fair statement that The Bahamas, like many countries in the region, has infrastructure needs that

go beyond our fiscal capacity given our competing claims on the budget,” said Dr Minnis.

“We are interested in leveraging PPPs as a means of implementing priority investment and infrastructure projects that are aligned with the Government’s development objectives.

The Bahamas currently has a pipeline of over $5bn in infrastructure investment projects, several of which are being executed under PPP arrangements.”

On New Providence, he noted that these include

the Gold Wynn project; the landfill remediation; the Nassau Airport Development Company’s (NAD) airport hotel; and the Prince George Wharf redevelopment programme.

Dr Minnis said the “mere action” of identifying private sector investment is “not a panacea for closing our investment gaps”.

“We acknowledge our responsibility to provide an appropriate enabling environment for private sector investment through sound and sustainable public policies,” he added.

Govt urged to exit utilities ownership

time what we have seen is that when administrations change, each administration feels that there is a better way to do something, so they stop everything that has been done, thereby losing some of the progress.”

The former Water & Sewerage Corporation general manager is understood to be taking legal action against both the utility and the Government over his dismissal, having disputed the numerous findings against him while arguing that the report’s disclosure had caused morale at the Corporation to plummet.

Speaking on the MIYA Bahamas project to reduce the leakage from the corporation’s distribution system, Mr Laville said: “Over the last six years about six billion

gallons of water has been saved. The project goes into 2022.

“Assuming all the targets are met, which they have met or exceeded so far, 12 billion gallons should be saved.

We were able to bring on Baha Mar without having to increase any production capacity. Right now we have spare capacity so we can take on any additional customers.”

Miya, a wholly-owned subsidiary of the Arison Investment Group, signed a ten-year, $83m contract with the Water and Sewerage Corporation (WSC) to reduce the leakage from its distribution system. The corporation was previously said to have been losing close to seven million gallons of water a day, which cost it more than a $16m a year.

FROM PAGE ONE

cost of service,” Mr Laville, who will have had great experience of this at the Water & Sewerage Corporation, said.

“If you don’t recover the cost of service it means the [quality] of service goes down, government has to subsidise more and, at the end of the day, you pay one way or another. It’s better to have it run efficiently and independently. If government has to subsidise individuals who need assistance financially let it be done that way so it’s more transparent.”

Mr Laville added: “Over

PAGE 4, Wednesday, December 5, 2018

CRUISE BID CRITICISM ‘ABSOLUTE RUBBISH’ FROM PAGE ONE two months to put it together, and when the bids come in they will be evaluated on their merits by an evaluation committee.”

Mr D’Aguilar conceded that such a committee, which will contain civil servants and persons with expertise in the cruise port field, has yet to be formed even though the RFP gives it just 21 days following the December 7 deadline to select a preferred bidder.

This means that the winning bidder will likely be chosen before year-end 2018, although the tender document provides for the Government to select the two best offers to compete against each other in a second round “run off”.

“It’s open and transparent.

There’s no predisposition to select anyone, as we don’t know who will ultimately bid,” Mr D’Aguilar told Tribune Business in defence of the process. “To say we’re leaning one way or the other is absolute rubbish.

“I don’t see how people can be opining on the fairness of the process when it’s not been completed yet.

Let us review the bids, go through the process and

then people can complain as to whether it is fair or not.

“We think this is very fair, and we will make a decision in the best interests of the Bahamian people. We ultimately need to improve conditions at the port; that’s the bottom line.”

Mr D’Aguilar hit back after unnamed parties expressed concerns that the cruise port RFP favoured the consortium whose initial proposal triggered the launch of the formal bidding process.

Tribune Business heard similar views last week, which appeared to have been triggered by clause 10.1 in the 11-page RFP. This says: “The RFP is being issued by the Government following upon an unsolicited proposal submitted to it for the project.

The unsolicited proposer is seeking the exclusive right to design, build, operate and maintain the Nassau cruise port.

“The Government acknowledges that the project, having arisen out of the unsolicited proposal, has been of considerable benefit for the development of the Government’s aspirations for

THE TRIBUNE the facility becoming a world-class cruise port.”

The “unsolicited proposal” came from Global Ports Holding, which operates multiple cruise ports in Europe and the Far East, together with its Bahamian partners - BISX-listed Arawak Port Development Company (APD) and CFAL (formerly Colina Financial Advisors).

The consortium’s 49-page proposal, previously exclusively revealed by Tribune Business, said its plans to transform Nassau’s cruise port will give the economy a $16bn boost spread over 30 years. It added that a $285.7m upgrade of Prince George Wharf through a waterfront entertainment park would inject an extra $216m into the Bahamian economy in the first year alone.

This appears to have sparked fears among some rivals that the Global Ports Holding consortium has an “inside track” on a deal to take over the cruise port’s operations and management, and finance its transformation into a world-class port destination experience.

Private sector sources close to the bidding process, while agreeing that the “unsolicited proposal” likely played a key role in helping the Government to craft the RFP and informing it on what to seek, backed Mr D’Aguilar in dismissing concerns over fairness and transparency.

“It doesn’t invalidate the process,” one source,

speaking on condition of anonymity, said. “The process is saying: ‘This is what it is, see if you can match it’.

Everybody has to submit a bid in accordance with the RFP.” Indeed, the Government would have left itself wide open to accusations of unfairness and lack of transparency if it had failed to disclose the RFP’s origins - and the existence of Global Ports Holding’s unsolicited offer - in the tender document.

And, had it not launched an open public tender process, it would have been exposed to claims of a “fix” if the cruise port management contract had been handed to the company and its Bahamian partners.

The RFP is also consistent with the Government’s recently-launched publicprivate partnership (PPP) policy framework, which makes clear that - in the case of “unsolicited proposals” - it reserves the right to seek competing, rival bids through a public tender process.

Mr D’Aguilar, meanwhile, said that following his recent voyage to Nassau on Royal Caribbean’s Symphony of the Seas vessel, the world’s largest cruise ship, “you immediately get why it’s very important to improve conditions at the cruise port” and help secure the hundreds of businesses and jobs that depend upon it in the Bay Street/downtown Nassau area.

He added: “Those boats

are absolutely fantastic, and make it very difficult for people to come off that boat. They have a wide array of slides, restaurants and a ‘surf the water’ contraption.

“You come off that boat and get bombarded by the very sub-standard offering of the Nassau cruise port.

We need to do something.

Everybody is trying to find an angle why not to go forward. It needs to go forward if we’re going to survive as the premier cruise port of the Caribbean.

“There are a lot of naysayers trying to nail this whole approach,” Mr D’Aguilar continued, hinting that political and vested interests might be involved, “but the Government of The Bahamas does not have the funds to do what needs to be done to improve it. We have to enter into a PPP, and use private sector funds to improve the cruise port.”

Further explaining the Government’s rationale for going the RFP route, the minister said: “We received it [the Global Ports Holding bid]. It got into the public domain, everybody knows what it is. We said stop, let’s do an RFP process, and make it fair and transparent.

“I’m not in the slightest way worried that this is not an open and transparent process. There’ll be a lot of people out there trying it on. We have to wait and see who puts in a proposal.

I don’t know who will, but I’m as eager as you to find

Top civil servant: Ministries ‘failing’ to manage staff FROM PAGE ONE other senior administrative roles.

“It is noteworthy that while this practice has supposedly depleted the human resources talent pool, it has not been associated with a commensurate improvement in capacity within the deputy permanent secretary ranks.

“In addition to the concerns expressed by the Ministry of Public Service, internal stakeholders suggested that the human resources units focused more on their administrative functions than on duties related to human resource development. There appears to be significant room for improvement in both areas of responsibility.”

The IDB report ignited significant discussion when its contents were revealed

by Tribune Business last week, not least the assertion that The Bahamas’ top civil servant, Camille Johnson as Cabinet secretary, branded deputy permanent

secretaries - the second highest rank in the public sector - as “extraordinarily weak”.

She also revealed that the civil service is “overstaffed by as much as 40 percent”, prompting politicians from both sides - those inside government and outside to rush to the defence of public sector workers by blaming each other for the deficiencies.

Criticism in the IDB report also cut both ways, with the Ministry of Public Service said to be falling massively short of its “vision” and “mission statement” by persons inside the Government and those on the outside.

Describing the ministry’s structure and operations as “aspirational” because key posts, such as director of training, are currently vacant, the report added: “The Ministry of Public Service received very low ratings from both internal and external stakeholders.

“The published vision and mission statements

were described as inspiring.

However, the consensus is that they are not currently being operationalised.”

The ministry’s “vision” is “to be a model organisation delivering first-class human resource services”, while its mission goal is to “maximize productivity in the public service by providing efficient, effective, and equitable human resource services to public officers and the community through the formulation and dissemination of policies”.

The IDB report, meanwhile, raised concerns about the lack of co-ordination between the Ministry of Public Service and the Public Service Commission, finding they had not met since the May 2017 general election with the former having more contact with other ministries.

“In addition to recruitment, promotions, and transfers, the Public Service Commission has responsibility for discipline,” the report added. “However,

some elements of that function are delegated to permanent secretaries and department heads.

“The Public Service Commission has expressed concern about the exercise of that delegated authority. The concerns relate primarily to tardiness in addressing or resolving disciplinary matters and failure to comply with the provisions contained in the General Orders, union agreements and regulations.

“Delays in resolving disciplinary matters have a financial impact, since interdicted officers receive half their salaries while their cases are pending. There are reported cases of officers remaining on interdiction for years (even until their retirement) without the substantive matter being addressed or resolved.”

The Public Service Commission also “categorically rejected” accusations of “political interference and a lack of transparency” in its operations and decisionmaking, with “extreme delays in processing appointments, transfers, and promotions” one of the major concerns.

“However, in responding to these concerns, the Public Service Commission pointed out that delays were often associated with the Ministry of Public Service’s failure to submit all the requisite documentation, thereby necessitating the return of the file to rectify the deficiencies,” the IDB report said.

It added that the Bahamas Public Services Union (BPSU), which represents civil servants, “expressed concern about the

independence of the Public Service Commission and the Public Service Board of Appeal (PSBOA)” as bodies where workers can contest disciplinary decisions.

The union suggested that “officers must appeal to the Supreme Court to procure justice”, leading the IDB report to state: “It is not clear whether this is a contributing factor in the relatively small number of cases lodged with the board or whether the volume of appeals lodged is a reflection of officers’ acceptance of the validity of the Public Service Commission’s decisions.

“Justice Milton Evans, whose three-year appointment as chairman of the PSBOA expired on January 31, 2018, indicated that only about ten cases were brought before the PSBOA during his tenure...

“During the period 2014–2016, nine appeals were made. The decisions of the commission were overturned in six of those nine cases, and one of the remaining three cases was withdrawn. Most of the decisions that were challenged related to dismissals, and reinstatement orders were issued when the Public Service Commission decisions were overturned. Factors cited included the lack of timely processing of matters and failure to adhere to relevant procedures.”

The IDB report noted that one case was delayed for eight years, and it also highlighted BPSU concerns over “a perceived lack of urgency” in dealing with government buildings plagued by mold and other health issues.

PUBLIC NOTICE

Debra Cooper is no longer employed with Glendas Uniform & Robe Co. and is not authorized to conduct any business on behalf of the company.

out. I know of one or two who have expressed an interest, but who comes to the table with a meaningful proposal we will see on Friday.”

Given the specialist, capital-intensive nature of cruise port operations, Tribune Business sources have suggested that the Government is likely to attract three to four serious bids that meet its criteria.

This newspaper previously revealed that besides Global Ports Holdings, another likely contender is the 50-strong Bahamian investor group, Cultural Village (Bahamas). Headed

by Gerald Strachan, the former Family Guardian president, and ex-tourism minister, Vincent Vanderpool-Wallace, they are understood to have partnered with a group of cruise lines featuring Royal Caribbean.

Another component to the Cultural Village (Bahamas) offering is Royal Fidelity Merchant Bank & Trust, the Bahamian investment bank, which will raise local financing for the project should the consortium be successful.

Tribune Business also understands that another Bahamian investment house, Providence Advisors, headed by Kenwood Kerr, is also partnering with another group to submit a bid. All prospective bidders are now racing to finalise the terms of their offers and partnerships with just 48 hours left before deadline.

End-of-week payout deal target for 227 Lucayan workers FROM PAGE ONE Lucayan’s $1.1m proposal. The two unions had thus initially asked for a total $8.4m payout, which represents a sum more than double, or 121 percent higher than the resort’s total $3.8m offer.

The lower the compensation payout, the greater the savings for the Bahamian taxpayer who has ultimately financed the Grand Lucayan’s $65m acquisition and a series of subsequent multimillion dollar payouts to former owner, Hutchison Whampoa, along with $3.5m in renovation costs.

Mr Scott, meanwhile, said settling the voluntary separation packages would allow the Government to fulfill its promise of permitting all staff wanting to leave to do so while simultaneously reducing the Grand Lucayan’s operating costs.

Besides the wage bill savings, he added that completing this process will also allow the board and management to focus on operational efficiency and minimising expenses as they prepare Freeport’s sole remaining “anchor property” for sale to a private buyer.

“It allows the Government to keep one of its undertakings and promises,” Mr Scott told Tribune Business, “and allows us to move on with the next phase of the resort; its operations for the next six months and moving into the pre-sale phase. It also allows us to operate relatively cost efficiently.”

Obie Ferguson, the Trades Union Congress (TUC) president, who is representing the BHMA in the separation package negotiations, told this newspaper that the management association had sent Mr Scott “a final proposal” yesterday.

Expressing optimism that a resolution will be agreed “very shortly”, Mr Ferguson confirmed that the previous multi-million dollar difference between the two sides over the financial terms has been narrowed “substantially”.

“I just sent the chairman [Mr Scott] a proposal today, outlining the position of the members of the bargaining unit in the hotel,” he said.

“I’m writing to him that we are proposing to settle the matter on that basis. He’s received it, and will get back to me tomorrow and let me know.

“We are progressing, and I’m somewhat optimistic we will have a resolution very shortly. It’s a final proposal from the members of the bargaining unit for settlement. We say it’s a final one because we think it’s a very reasonable mechanism we agreed with the members for the chairman and the Board to consider.

PAGE 10, Wednesday, December 5, 2018 LONDON Associated Press BRITAIN’S Parliament dealt Prime Minister Theresa May’s government two bruising defeats yesterday, and that was before lawmakers began an epic debate that will decide the fate of May’s European Union divorce deal and her political career.

Opening five days of debate on the Brexit agreement, May said that since the British people voted in 2016 to leave the EU, it was the “duty of this Parliament to deliver on the result” of the referendum.

Despite her entreaties, the government appeared to be on a collision course with an increasingly assertive Parliament.

Minutes before May rose to speak, lawmakers delivered a historic rebuke, finding her Conservative

THE TRIBUNE

UK Parliament delivers rebuke to government over Brexit government in contempt of Parliament for refusing to publish the advice it had received from the country’s top law officer about the Brexit deal.

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL

The Public is hereby advised that I, FERNAND PETITHOMME of New Providence, Bahamas intend to change my name to FERNAND JOSEPH. 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 the publication of this Notice.

LEGAL NOTICE INTERNATIONAL BUSINESS COMPANIES, ACT 2000 NOTICE IS HEREBY GIVEN in accordance with Section 138 (4) of the International Business Companies Act, 2000 as follows:a) SAFRA PRIVATE EQUITY I FUND LTD. is in dissolution under the provisions of the International Business Companies Act, 2000. b) The dissolution of the said Company commenced on 23rd November 2018 when its Articles of Dissolution were submitted to and registered by the Registrar General. c) The Liquidator of the said Company is Israel Borba, whose address is 204 Church Street, Olde Towne, Sandyport, CB-10988, Nassau, Bahamas.

AMICORP BAHAMAS MANAGEMENT LIMITED Bahamas Financial Centre, 3rd Floor Shirley & Charlotte Streets P.O. Box N-4865 Nassau, Bahamas

The reprimand, while largely symbolic, marks the first time a British government has been found in contempt of Parliament.

The 311-293 vote demonstrated the fragility of May’s government, which does not have a majority in Parliament.

Labour Party Brexit spokesman Keir Starmer called the contempt finding “a badge of shame”.

The government said that in light of the vote it would publish the advice from Attorney General Geoffrey Cox. He and other ministers also could face reprimands or suspension from Parliament.

The main thrust of Cox’s advice is already known — the government released a 43-page document about it on Monday in a bid to fend off the contempt motion.

In another sign of the government’s weakness, lawmakers also passed an amendment giving Parliament more say over the government’s next steps if the assembly rejects the divorce deal in a vote set for Dec 11.

Many lawmakers saw the government’s defeats as developments of huge significance — a tipping point in the EU saga.

“This feels like the fall of the ‘ancien regime’,” Stewart M McDonald of the Scottish National Party said, using the French term once applied to the political system in pre-Revolution France.

The deal, endorsed last

month by the 27 other EU leaders, lays out the terms of Britain’s departure from the bloc on March 29 and sets the framework for future relations with the EU. Rejecting it would leave the UK facing the prospect of a chaotic “no-deal” Brexit, but May’s chances of winning majority backing for the deal appear slim.

Politicians on both sides of Britain’s EU membership debate oppose the agreement — pro-Brexit legislators because it keeps Britain bound closely to the EU, and pro-EU politicians because it erects barriers between the UK and its biggest trading partner.

“The numbers in the Houses of Parliament look pretty formidable for Theresa May,” said Alan Wager, a research associate at the UK at the Changing Europe think tank. “Over 100 Conservative MPs have said they are not going to back the deal, the Labour Party have said they are not going to back the deal. So it looks like the deal won’t pass next week.”

May acknowledged the proposed deal her government negotiated and approved was not perfect, but called it “an

MARKET REPORT TUESDAY, 4 DECEMBER 2018

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

BISX ALL SHARE INDEX: CLOSE 2,012.26 | CHG -15.41 | %CHG -0.76 | YTD -51.31 | YTD% -2.49 BISX LISTED & TRADED SECURITIES 52WK HI 4.50 20.91 7.50 4.90 1.20 0.56 3.92 9.30 6.60 4.93 12.50 2.74 1.78 8.21 6.30 13.20 6.98 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

SYMBOL LAST CLOSE AML 4.45 APD 17.43 BPF 7.00 BWL 4.90 BOB 1.20 BBL 0.52 CAB 2.30 CIB 9.30 CHL 6.16 CBL 4.14 CBB 12.42 CWCB 2.51 DHS 1.78 EMAB 8.27 FAM 6.30 FBB 12.85 FIN 6.75 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) 115.92 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

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

MUTUAL FUNDS 52WK HI 2.19 4.18 2.02 182.41 158.55 1.59 1.71 1.67 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

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 4.90 1.20 0.56 2.30 9.30 6.16 4.14 11.25 2.46 1.78 8.34 6.30 12.85 6.75 3.62 13.01

CHANGE 0.00 0.00 0.00 0.00 0.00 0.04 0.00 0.00 0.00 0.00 -1.17 -0.05 0.00 0.07 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

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

VOLUME 100

3,500

28,641 1,600 1,122 1,552

1,000

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 15.5 N/M N/M -3.9 13.3 14.0 26.9 17.9 24.1 8.5 N/M 9.4 18.3 11.7 13.1 20.6

YIELD 2.25% 7.23% 0.00% 4.90% 0.00% 1.79% 0.00% 7.63% 3.57% 2.90% 5.51% 2.44% 3.37% 1.01% 4.44% 3.89% 2.22% 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%

NAV 2.19 4.18 2.02 182.41 158.55 1.59 1.71 1.67 1.09 7.41 8.57 6.55 10.68 11.65 10.62 9.92 8.69 11.79

YTD% 12 MTH% 3.23% 4.04% 1.03% 1.38% 1.92% 2.39% 2.08% 3.47% 3.35% 5.94% 3.67% 4.43% 0.73% 0.96% 2.88% 3.53% -0.53% 0.27% -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

MATURITY 19-Oct-2022 20-Nov-2029 30-Jul-2018 16-Dec-2019 30-Jul-2020 15-Dec-2021 30-Jul-2022 15-Dec-2044 30-Jul-2045 26-Jun-2018 26-Jun-2020 26-Jun-2022 26-Jun-2045 15-Oct-2018 15-Oct-2020 15-Oct-2022 NAV Date 31-Oct-2018 31-Oct-2018 26-Oct-2018 30-Sep-2018 30-Sep-2018 31-Oct-2018 31-Oct-2018 31-Oct-2018 31-Oct-2018 31-Oct-2018 31-Oct-2018 31-Oct-2018 31-Oct-2018 31-Oct-2018 31-Oct-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

BRITAIN’s Prime Minister Theresa May speaks in parliament at the start of a five-day debate on the Brexit European Union Withdrawal Agreement, yesterday. The British government received a historic rebuke from lawmakers yesterday over its Brexit plans, an inauspicious sign for Prime Minister Theresa May as she opened an epic debate in Parliament that will decide the fate of her Brexit divorce deal with the European Union. honourable compromise.”

“We should not let the search for the perfect Brexit prevent a good Brexit,” she said.

Leaving the EU without a deal would end more than 40 years of free trade and disrupt the flow of goods and services between Britain and the EU. The Bank of England says a no-deal Brexit could plunge Britain into a severe recession, with the value of the pound falling by 25 percent as unemployment and

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inflation soared.

Pro-EU lawmakers said Tuesday they had made the prospect of a “nodeal” Brexit less likely by securing the amendment giving Parliament more power to guide the government’s next steps if the deal is rejected.

If the agreement doesn’t win approval, the government is required to come back within 21 days and say what it plans to do. The amendment, which also was backed by two dozen Conservative lawmakers, stipulates that Parliament can change the government’s statement — effectively telling the government what to do. Since most lawmakers oppose a no-deal Brexit, they could essentially take that option off the table.

In a boost to campaigners seeking to stop Brexit, a top official at the European Union’s highest court advised Tuesday that Britain can change its mind about leaving the European Union if it wants.

Advocate General Manuel Campos Sanchez-Bordona told the European Court of Justice that EU law “allows the unilateral revocation of the notification of the intention to withdraw”.

The advice of the advocate general is often, but not always, followed by the full court, which is expected to issue a final verdict on the question within weeks.

May insisted that Brexit could not, and should not, be reversed.

In an appeal to Parliament that sounded at times like her political eulogy, the prime minister defended the divorce deal against the steady criticism of louder, brasher opponents.

May said she had reached a deal with the EU “through painstaking hard work”.

“I didn’t play to the gallery,” May said. “I have never thought that politics was simply about broadcasting your opinions on the matter at hand.

“Don’t let anyone here think that there’s a better deal to be won by shouting louder,” she said.

THE TRIBUNE

Wednesday, December 5, 2018, PAGE 11

White House intensifies confusion and fear on US-China deal WASHINGTON Associated Press THE Trump administration raised doubts yesterday about the substance of a US-China trade cease-fire, contributing to a stock market plunge and intensifying fears of a global economic slowdown.

Investors had initially welcomed the truce that the administration said was reached over the weekend in Buenos Aires between Presidents Donald Trump and Xi Jingping — and sent stocks soaring on Monday.

But yesterday, after a series of confusing and conflicting words from Trump and some senior officials, stocks tumbled, with the Dow Jones sinking as much as 800 points.

White House aides have struggled to explain the details of what the two countries actually agreed on. And China has not confirmed that it made most of the concessions that the Trump administration has claimed.

“The sense is that there’s less and less agreement between the two sides about what actually took place,” said Willie Delwiche, investment strategist at Baird.

“There was a rally in the expectation that something had happened. The problem is that something turned out to be nothing.”

Other concerns contributed to the stock sell-off, including falling long-term bonds. That suggested that investors expect the US economy to slow, along with global growth, and possibly fall into recession in the coming year or two.

Trump and White House aides promoted the weekend deal as an historic breakthrough that would ease trade tensions and potentially reduce tariffs.

They said that China had

WHITE House chief economic adviser Larry Kudlow, left, and Treasury Secretary Steve Mnuchin talks with reporters about trade negotiations with China, at the White House on Monday in Washington.

Photos: Evan Vucci/AP agreed to buy many more American products and to negotiate over the administration’s assertions that Beijing steals American technology. But by yesterday morning, Trump was renewing his tariff threats in a series of tweets.

“President Xi and I want this deal to happen, and it probably will”, Trump tweeted. “But if not remember, I am a Tariff Man. When people or countries come in to raid the great wealth of our Nation, I want them to pay for the privilege of doing so.”

Trump added that a 90-day timetable for negotiators to reach a deeper agreement had begun and that his aides would see “whether or not a REAL deal with China is actually possible”.

The president’s words had the effect of making the weekend agreement, already a vague and uncertain one, seem even less likely to lead to a long-lasting

trade accord.

“We expect the relationship between the world’s two largest economies to remain contentious,” Moody’s Investors Service said in a report. “Narrow agreements and modest concessions in their ongoing trade dispute will not bridge the wide gulf in their respective economic, political and strategic interests.”

Among the conflicting assertions that White House officials made was over whether China had actually agreed to drop its 40% tariffs on US autos.

In addition, Treasury Secretary Steven Mnuchin said yesterday on the Fox Business Network that China agreed to buy $1.2tn of US products. But he added, “if that’s real” — thereby raising some doubt — it would close the US trade deficit with China, and “we have to have a negotiated agreement and have this on paper”.

Many economists have

expressed skepticism that very much could be achieved to bridge the vast disagreements between the two countries in just 90 days.

“The actual amount of concrete progress made at this meeting appears to have been quite limited,” Alec Phillips and other economists at Goldman Sachs wrote in a research note.

During the talks in Buenos Aires, Trump agreed to delay a scheduled escalation in US tariffs on many Chinese goods, from 10% to 25%, that had been set to take effect Jan 1. Instead, the two sides are to negotiate over US complaints about China’s trade practices, notably that it has used predatory tactics to try to achieve supremacy in technology. These practices, according to the administration and outside analysts, include stealing intellectual property and forcing companies to turn over technology to gain access to China’s market.

In return for the postponement in the higher US tariffs, China agreed to step up its purchases of US farm, energy and industrial goods, the White House said.

Most economists noted that the two countries remain far apart on the biggest areas of disagreement, which include Beijing’s subsidies for strategic Chinese industries, in addition to forced technology transfers and intellectual property theft.

Kudlow acknowledged those challenges in remarks yesterday morning.

“China’s discussed these things with the US many times down through the years and the results have not been very good,” he said. “So this time around as I said, I’m hopeful, we’re covering more ground than ever... So we’ll see.”

Complicating the challenge, Trump’s complaints strike at the heart of the Communist Party’s stateled economic model and its

plans to elevate China to political and cultural leadership by creating global champions in robotics and other fields.

“It’s impossible for China to cancel its industry policies or major industry and technology development plans,” said economist Cui Fan of the University of International Business and Economics in Beijing.

On Sunday, Trump had tweeted late Sunday that China had agreed to “reduce and remove” its 40% tariff on cars imported from the US. Treasury Secretary Steven Mnuchin said on Monday that there was a “specific agreement” on the auto tariffs.

Yet Kudlow said later that there was no “specific agreement” regarding auto trade, though he added, “We expect those tariffs to go to zero.”

Shares of US and overseas auto companies rose on the announcement, though it’s unclear how much companies like GM or Ford will actually benefit. Nearly all the cars they sell in China are made there.

Details regarding China’s pledge to buy more American products — one that it has made before — remain scant.

Kudlow said the ultimate amount China will purchase will depend on market prices and the health of China’s economy.

Regarding the $1.2tn figure, “I would think of that as a broad goal,” he said.

State-run Chinese media has described the agreement very differently from how the Trump administration has. It has made no mention of any changes to its auto tariffs. And it has said nothing about a 90-day deadline for the talks.