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WEDNESDAY, DECEMBER 6, 2017
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Port chief brands Nassau Irma helps Bahamas Harbour repairs ‘non-issue’ By NATARIO MCKENZIE Business Reporter nmckenzie@tribunemedia.net and NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
* Breakwater decline ‘no cause for alarm’ * Yet Minister says ‘absolutely critical’ * Official: Ships ‘unaffected’; time not right
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escape EU blacklist By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
assau Harbour’s deteriorating breakwaters are “no cause for alarm”, a senior official said yesterday, even though a Cabinet Minister has described repairs as “an absolutely critical project”. Captain Cyril Roker, the Port Department’s controller, downplayed fears raised in a recent Inter-American Development Bank (IDB) report that the damaged breakwaters “threaten the Bahamian economy’s viability” by impacting the flow of commercial and
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A VIEW of cruise ships in Nassau Harbour.
THE Bahamas was yesterday warned not to “rest on our laurels” after it escaped the European Union’s (EU) ‘blacklist’ largely thanks to Hurricane Irma. While the financial services industry and wider economy “dodged a potential bullet”, this resulted from the EU Council taking pity on this nation as a result of damage inflicted during the recently-closed hurricane season. The Council placed the Bahamas in an eight-nation
* FINANCIAL SECTOR ‘DODGES POTENTIAL BULLET’ * BAHAMAS GIVEN 12-MONTH REPRIEVE * BUT WARNED IT ‘CAN’T REST ON LAURELS’ grouping, along with the likes of the British Virgin Islands (BVI), Dominica and Turks & Caicos, that will be given a further 12 months to meet the EU’s demands for “fairer taxation”, transparency and
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GB CHAMBER CHIEF: MAKE ENTERPRISES BILL MORE ‘FLEXIBLE’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Commercial Enterprises Bill should be made more “flexible” by including “attributes” other than direct capital outlay in the $250,000 investment calculation, a businessman urged yesterday. Mick Holding, the Grand Bahama Chamber of Commerce’s president, told Tribune Business that the minimum investment threshold should be “less arbitrary”, with investors given ‘credits’ towards that benchmark for other aspects such as job creation and bringing new technologies/skills to the Bahamas. Arguing that direct capital outlay
* Basing $250k on just capital outlay ‘too arbitrary’ * Urges ‘credits’ for jobs, skills, technology * Backs work permit ‘certainty’, training should not be the only criteria used to determine whether qualifying start-ups have met the Bill’s criteria, Mr Holding welcomed the legislation as a further potential boost for Grand Bahama’s economy. “I’d like it to not solely be direct capital investment,” he suggested of the $250,000 threshold, “but also take into account job creation. Every job created would be worth ‘x’ towards that $250,000, and there’s also credit given to other things.
BAHAMAS ‘MUST RID ITSELF OF THE TAX HAVEN LABEL’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Bahamas “must rid itself of the ‘tax haven’ label”, a senior financial executive said yesterday, after it escaped any further correspondent banking losses at the European Union’s (EU) hands. Tanya McCartney, the Bahamas Financial Services Board’s (BFSB) chief executive, told Tribune Business that this nation needed to take “policy actions” that would enhance its “brand” after avoiding inclusion
* BFSB CHIEF: BLACKLIST WOULD HAVE HIT ‘DE-RISKING’ * HOPES THREAT ‘MOVES’ TAX REFORM DIALOGUE * WARNS LISTING THREAT WILL ‘ALWAYS LOOM’
on the EU’s 17-strong ‘blacklist’. Conceding that inclusion would have increased the Bahamas’ “risk profile” among the international
SEE PAGE 6
DPM: PROPER INTERNAL AUDITING WOULD HAVE SAVED GOV’T MILLIONS By NATARIO MCKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net THE Deputy Prime Minister yesterday said the Government could have saved Bahamian taxpayers millions of dollars if it had an effective internal audit programme. K Peter Turnquest, addressing a Bahamas Institute of Chartered Accountants (BICA) and Association of Certified Fraud Examiners (ACFE) semi-
* TURNQUEST: 1% GROWTH ‘WON’T DO’ * OUTLINES ‘FISCAL RULE’ PROPOSALS * TARGETS ‘BUSINESS EASE’ TOP HALF nar, stressed the need to strengthen this function. He added that an effective internal audit programme, and commitment by the Government to follow through on its
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“If the investment fits into a particular business we are seeking to attract that gets entered as another credit. If we’re trying to attract a certain industry, and a business invests $100,000 but creates 12 jobs and brings new technology to the island, they should get a credit for that. “It doesn’t have to be new technology that they bring, but a new skill or trade that doesn’t exist here and be of benefit to the Bahamas.”
Essentially, Mr Holding’s argument is that the Government should take a more holistic approach in assessing a company’s overall economic impact, rather than just its capital investment spend, when determining whether it has met the Bill’s minimum $250,000 threshold. Given that the Commercial Enterprises Bill has now been passed by both parliamentary chambers, and is now making its way to the Governor-General for
assent and passage into law, it is unlikely that Mr Holding’s suggestions will be incorporated. Still, he reiterated that “rather than leave it totally arbitrary” the Bill should be more flexible on its $250,000 ‘investment’ definition, adding: “It should recognise other attributes besides capital investment.” Mr Holding told Tribune Business that the Commercial Enterprises Bill would “go hand in hand” with the Government’s plans to make Grand Bahama an offshore ‘technology hub’ and the recent associated Summit, plus its impending repeal of the Grand Bahama (Port Area) Investment Incentives Act.
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PICTURED from L to R: Dean Spychalla, senior vice-president, BHTA; Suzanne Pattusch, executive vice-president, BHTA; Stuart Bowe, immediate past president, BHTA; K Peter Turnquest, Deputy Prime Minister and minister of finance; Carlton Russell, BHTA president; Jamal Glover, BHTA treasurer; Leroy Browne, BHTA vice-president for Nassau/Paradise Island
Tourism’s annual meeting addresses industry issues THE Bahamas Hotel and Tourism Association’s (BHTA) recent annual general meeting (AGM) focused on issues affecting tourism, including reduced airlift to certain Family Islands as a result of inoperative airport fire/ safety equipment. The meeting heard from numerous presenters, including Fred Lounsberry, the Nassau/Paradise Island Promotion Board’s chief executive, who addressed industry performance and the outlook for destination marketing strategies and airlift development. Michael Reckley, executive vice-president of the Bahamas Hotel and Restaurant Employers Association, gave a report on recent developments surrounding the amendments to the Employment Act, which were passed in April 2017. He also spoke on the status and forecast for National Health Insurance/Universal Health Care.
Vernice Walkine, the Nassau Airport Development Company’s (NAD) president and chief executive, gave a report on the Lynden Pindling International Airport (LPIA) and its plans for 2018. Other presenters included an update from Basil Smith, executive director of the Association of Bahamas Marinas (ABM), and Dr Nicola Virgil-Rolle, director of economic development and planning in the Office of the Prime Minister, who gave an update on the Municipal Governance Study Mission. The keynote address came from K. Peter Turnquest, Deputy Prime Minister and minister of finance, who spoke on the state of the economy and its future outlook. Carlton Russell, the BHTA president, said: “We were pleased to hear the Deputy Prime Minister speak of areas of focus that are closely aligned with those of the Bahamas Hotel
and Tourism Association. The need to address connectivity throughout our archipelago in terms of accessibility and airlift, and to address issues with the supply and cost of electricity in the Bahamas. “These are key areas that we are committed to working with the Government to address. Also, we were pleased to hear Deputy Prime Minister Turnquest speak of the need to better embrace the elements of the Bahamas that make it unique and distinct, and how we need to leverage our culture, customs and artistry to create a sense of space. This is precisely the ethos behind our Tru Tru Bahamian Movement, the Tru Tru Bahamian Festival and, most recently, our efforts to support and propagate local sourcing within our economy to stem the significant outflow of funds outside of the country, and create linkages between our tourism industry and our creative entrepreneurs.”
THE TRIBUNE
Wednesday, December 6, 2017, PAGE 3
FISCAL RULES ‘NO PANACEA’, WARNS AN IDB ECONOMIST By NATARIO MCKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net
FISCAL rules are “not a panacea” but can prevent misplaced government spending priorities, an Inter-American Development Bank (IDB) economist said yesterday. Allan Wright, a Bahamas-based economist, speaking at a fiscal policy workshop hosted by the IDB and the Government, said fiscal rules have become “a popular mechanism by which to anchor fiscal policy, infuse fiscal discipline and promote credibility”. His comments came after Deputy Prime Minister, K Peter Turnquest, while speaking at the same workshop earlier this week,
confirmed the Minnis administration’s commitment to introduce fiscal rules legislation in February/March 2018 to prevent “runaway spending”. “The ultimate objective of fiscal rules is to promote sustainable growth, while at the same time controlling deficits and limiting debt accumulation,” said Mr Wright. “Ambiguities in the objectives and definition can lead to ineffective enforcement; hence a fiscal rule and its objective should be clearly defined. “In the context of Caribbean countries, a delicate balance must be struck between the short-term and long-term objectives in the creation of any fiscal rule(s),” Mr Wright continued.
Mr Wright said the economic, political and institutional characteristics of a country are integral to the design of any fiscal rule. “While there is no ‘onesize-fits-all’ approach, there are some broad principles that should guide the design of fiscal rules. Primarily, these include simplicity and transparency, credibility, and flexibility,” he added. Mr Wright said a country’s policy objectives and priorities will determine the precise type of rule introduced, and the nature of supporting Fiscal Responsibility legislation. “Countries that are highly indebted might require both a primary balance and a debt rule to firmly entrench mediumterm fiscal and debt
sustainability, as opposed to a country where only a spending rule might be fitting, given its relatively low level of indebtedness and little, if any, sustainability concerns,” said Mr Wright. “Institutional requirements will also vary by country. “For example, country-specific, mediumterm objectives and budgetary arrangements must be considered. Global good practices suggest that the strength of fiscal institutions and an effective supporting medium-term budgetary architecture contribute significantly to the success or failure of fiscal rules.” Mr Wright added that in establishing fiscal rules “political will” is vital, and public consultation as well as stakeholder buy-in, crucial.
GOV’T ‘CAREFULLY LOOKING’ TO DEFUSE $2.2BN LIABILITY By NATARIO MCKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net THE Deputy Prime Minister yesterday said the Government was “looking very carefully” at how to defuse the ticking timebomb that is its $2.2 billion unfunded civil service pension liability. K P Turnquest said the Minnis administration knew it had to make the situation “more sustainable”, given the implications for the Government’s finances and national debt. He said: “We recognise that the pension liability is a significant consideration,
and we are looking at ways to deal with it and manage it. We are still early in that process. I would say we are looking very carefully at the reforms we need to make to ensure that the Government pension system is more sustainable.” The International Monetary Fund (IMF) has warned that the Government’s unfunded $2.2 billion pension liabilities are “a significant fiscal risk” that could undermine efforts to get the public finances back on a sustainable footing. The Fund earlier this year said it was “inevitable” that the Government would have to reform both public sector pensions and the
National Insurance Board (NIB) to defuse a potential social time bomb. It warned that unless corrective action was taken, both schemes would become an unsustainable burden on the Bahamian taxpayer and society, with ageing populations and a reduced workforce exacerbating the problem. “Pension payments have trended up to an estimated 1.1 per cent of GDP in fiscal year 2017, and population aging will increase them further,” the IMF had warned. “Staff recommended transforming the civil servants’ pension system into a contributory regime in the near term, with contributions
commensurate with benefits, and with a view to move to a defined-contribution scheme in the medium term. Setting contributions at 5 per cent of wages for pensionable employees could yield revenues for 0.3 per cent of GDP.” The saving would be equivalent to $25.2 million per annum, based on an $8.4 billion GDP and the IMF’s figures. The KPMG accounting firm previously estimated the unfunded, ‘pay-as-you-go’, civil service pension liabilities at around $1.5 billion. These liabilities are set to increase to $2.5 billion by 2022, and $4.1 billion by 2032, unless reforms are enacted.
DPM CONFIDENT ON S&P VISIT OUTCOME By NATARIO MCKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net THE Deputy Prime Minister has reaffirmed his confidence in the Government’s growth and fiscal plans following a “very productive meeting” with Standard & Poor’s (S&P). “We believe that we are on track with the measures that we put in place and where we expect to be at this time,” K P Turnquest told Tribune Business following his encounter with
the credit ratings agency. “I don’t anticipate what the result will be, but feel confident that the programmes we have put forth and the trends we are currently on will lead to a successful outcome. What is success we will determine, but at this point we feel that we are on the right track with respect to growing the economy, introducing concepts to make the Bahamas more attractive to foreign direct investment as well as Bahamian investment.” Mr Turnquest added: “We are on track in terms
of containing our costs, reigning in some of these over-inflated contracts and the bloating in the public service.” S&P last December handed the Bahamas a ‘junk’ creditworthiness downgrade, justifying it on the basis that the Bahamian economy would only grow by 0.3 per cent in 2016 down from its 1.2 per cent estimate that April. Opposition leader,Philip Davis, recently said his party holds “grave concerns” over the outcome of S&P’s visit to the Bahamas
this week and its subsequent review. Mr Davis said this was due to what he called the “knee jerk reactions” of the Ministry of Finance and “the many confusing, misleading and contradictory statements by the Minister of Finance and the acting financial secretary, Marlon Johnson, to-date”.
NOTICE
NOTICE is hereby given that BAILNIV GUSTAVE of Savannah Sound, Eleuthera, 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 6th day of December, 2017 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
NOTICE
NOTICE is hereby given that JOSEPH PHARISIEN of Joe Farrington Road, 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 29th day of November, 2017 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
NOTICE
NOTICE is hereby given that ODNER SIMILIEN of St. Charles Vincent 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 6th day of December, 2017 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
INTERNATIONAL BUSINESS COMPANIES ACT, CH, 309, SEC 138(4) AND THE INTERNATIONAL BUSINESS COMPANIES (WINDING UP AMENDMENT) ACT, 2011 Notice of Voluntary Winding Up Second Pyramid Ltd. (In Voluntary Liquidation) Registration No. 157302 B TAKE NOTICE that the above-named Company was put into liquidation on 16th November 2017, by a Resolution of Members passed on the 12th day of November 2017. AND FURTHER TAKE NOTICE THAT Edmund L. Rahming of Intelisys Ltd, Caves Village, Unit 15, Blake Road and West Bay Street, P. O. Box SP-6404, Nassau, Bahamas has been appointed Liquidator of the Company. Dated this 16th day of November 2017 Edmund L Rahming Liquidator
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NOTICE
NOTICE is hereby given that ANGELINE EMILE of Hawksbill, Grand Bahama, 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 6th day of December, 2017 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
NOTICE
NOTICE is hereby given that KENCI JOSEPH of 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 29th day of November, 2017 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
NOTICE
NOTICE is hereby given that SONLESS NOEL ESTIME of #2a Langton Avenue, Freeport, Grand Bahama, 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 6th day of December, 2017 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
NOTICE
NOTICE is hereby given that JULIAN A. STEWART of Cable Beach, P.O.Box N-10273, 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 29th day of November, 2017 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
NOTICE
NOTICE is hereby given that GUERMO EMILE of Outlaw, Midshipment Drive, Freeport, Grand Bahama, 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 6th day of December, 2017 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
NOTICE
NOTICE is hereby given that NIKENSON VITAL of #27 Poitier Ave., Chippingham, 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 29th day of November, 2017 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
NOTICE
NOTICE is hereby given that MARIE LOUISE ALCIME of Roberto Dr., Ridgeland Park, P.O. Box N7060, 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 6th day of December, 2017 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
NOTICE
NOTICE is hereby given that ANTHONIDE CAMILLE CHARLES of Market Street, Palmetto Avenue, 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 29th day of November, 2017 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
NOTICE
NOTICE is hereby given that JOSUE MELLE of Prince Charles, 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 29th day of November, 2017 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
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Wednesday, December 6, 2017, PAGE 5
Irma helps Bahamas escape EU blacklist FROM PAGE 1 compliance with the fight against tax avoidance by multinational companies. The Council’s official 38-page statement said it had suspended “the screening process” for the Bahamas and other seven, but warned that the process will resume in February 2018 “with a view to resolving these concerns by the end of 2018”. The Bahamas has thus effectively been given a 12-month temporary reprieve during which it will have to meet the EU’s demands, thanks to the devastation wrought by Category Five storms Irma and Maria in the wider Caribbean. Some observers will see this ‘benefit’ as perverse, given all the grief caused by hurricanes, while others are likely to point to the EU’s seeming lack of geographical knowledge, given that the Bahamas was among those nations least damaged by Irma (Ragged Island, Inagua and Acklins excepted). Emmanuel Komolafe, the Bahamas Insurance Association’s (BIA) chairman, told Tribune Business that while the entire financial services industry was yesterday “breathing a sigh of relief” at having escaped the EU ‘blacklist’, it recognised further reforms lay ahead. He warned that this nation does “not have the luxury of time” to “rebrand the Bahamas” and eliminate the outside world’s ‘tax haven’ perceptions, given that its exclusion from the EU list was “more to do with an act of nature” than its own actions. “We’ve dodged a potential bullet, but any kind of celebration and pat on the back is premature,” Mr Komolafe told Tribune Business. “Our exclusion from this list has little to do with what we have done so far; it’s more to do with an act of nature. “Even though we don’t want hurricanes, we were spared from this listing by a hurricane. We breathe a sigh of relief straight across the industry, but shouldn’t rest on our laurels and put the brakes on. There’s a lot we need to do in a short period of time, and we must move quickly to address the issues.” The Government, not surprisingly, took a slightly different position yesterday as it hailed its efforts to comply with the OECD’s automatic tax information exchange and Base Erosion and Profit Shifting (BEPS)
K P TURNQUEST, DPM and Minister of Finance for generating the “good news” of an EU ‘blacklist’ escape. K P Turnquest, Deputy Prime Minister and minister of finance, acknowledged the role played by Irma and Maria in helping the Bahamas - for the moment - to avoid the adverse listing, but argued it was also evidence that the Government’s proactive response to international regulatory initiatives had worked. “You can term it that way,” Mr Turnquest replied, when Tribune Business pointed out that the EU Council’s release showed the Bahamas escaped by virtue of the 2017 hurricane season. “We believe we’ve put in the work, and are being proactive about being a compliant jurisdiction,” the Deputy Prime Minister said. “We recognise it as another interim step in the continued march to change the rules and international paradigm, but it does reference, we believe, our commitment communicated to the OECD to be co-operative with respect to the automatic exchange of tax information.” The House of Assembly will today debate a package of Bills designed to facilitate the Bahamas’ switch to the multilateral approach to automatic tax information exchange. Their passage into law will enable Mr Turnquest and Brent Symonette, minister of financial services, to next week head to San Marino and sign treaties that will ensure compliance with the OECD’s Common Reporting Standard (CRS), now the global standard for tax information exchange. Compliance with the Organisation for Economic Co-Operation and Development’s (OECD) CRS initiative is one of the three criteria being employed by the EU to determine whether a nation should be included on its ‘blacklist’. Another is compliance with the BEPS initiative, and Mr Turnquest said the Bahamas had signalled its intention to meet “the minimum standard” - without having to implement a
corporate income tax - to the OECD. “We are committed to signing up to the minimum standard,” he told Tribune Business, “and, to the extent we are not able to comply, we have committed to doing our best to providing the required information.” The Bahamas’ main obstacle on BEPS compliance is that it has no corporate income tax. One of the four ‘minimum standards’ it is seeking to meet is no so-called ‘harmful tax practices’, yet the OECD defines a corporate income tax rate of less than 10 per cent as just such a ‘harmful practice’. Many observers believe this may force the Bahamas to adopt a low-rate corporate income tax, which has already been advocated by the International Monetary Fund (IMF) and some in the financial services industry. Mr Turnquest’s comments, though, indicate the Government is looking for a way around this. Pledging that the Minnis administration was placing the financial services industry “front and centre”, Mr Turnquest said: “The Government are working very hard to make sure we’re ahead of any further requirements. “We are being proactive to ensure we put the industry front and centre, and demonstrate to the international community we continue to be a wellregulated and compliant jurisdiction. We have been doing a tremendous amount of work, from the Attorney General’s Office to my office and the Ministry of Financial Services, working very hard and diligently to get this done.” Mr Komolafe said that while the financial services industry had “generally breathed a sigh of relief” at escaping the EU blacklist, it knew that legislation and other issues relating to the sector needed addressing to remain excluded. “It buys us time, the fact we were kind of spared in this current exercise, but we don’t have the luxury of time to address these issues,” he told Tribune Business.
“Over the last several years we’ve had a lot of discussion on the taxation model, and whether as part of rebranding the Bahamas as an international financial centre (IFC) we need to look at some form of corporate taxation and whether that would work in the current environment.” Mr Komolafe continued: “We all know being branded a ‘tax haven’ has a lot of negative connotations attached to it, and in the past we’ve talked about entering into double taxation agreements [via a corporate tax]. “An honest discussion needs to take place in that regard to see what we have an appetite for in that regard, and how we implement it. A lot of thought and discussion has to go into this. It’s not going to be an easy one.” The BIA chairman agreed that “inclusion on a blacklist or ‘grey’ list is not good for the jurisdiction”, while arguing that the Bahamas was “late in addressing” the OECD’s BEPS initiative. “We now have to rush it, and can’t have comprehensive analysis, review and discussions with industry,” he added. “The Government and industry just need to move ahead, and do things in a proper timeframe.” The EU’s ‘blacklist’ included 17 nations, who are American Samoa, Bahrain, Barbados, Grenada, Guam, South Korea, Macau, Marshall Islands, Mongolia, Namibia, Palau, Panama, Saint Lucia, Samoa, Trinidad and Tobago, Tunisia and United Arab Emirates (UAE). A 47-nation ‘grey list’ of nations that have committed to comply with EU standards, but have yet to do so, was also published.
This included many of the Bahamas’ Caribbean IFC rivals, including Bermuda and the Cayman Islands, plus the likes of the Isle of Man, Guernsey and Jersey. Anti-tax avoidance campaigners yesterday criticised the EU ‘blacklist’ on the grounds that it is not properly backed by sanctions and their enforcement, and that numerous nations which should have been included were not.
The EU failed to include its own members, such as Ireland and Luxembourg, which groups such as Oxfam had called for, while the UK was accused of again protecting its own overseas territories. And US states such as Delaware, Nevada and Wyoming, which maintain the strict beneficial ownership anonymity the Bahamas has been forced to shed, were also excluded from the listing.
PUBLIC NOTICE INTENT TO CHANGE NAME BY DEED POLL The Public is hereby advised that We, KENRICO RASHAD WRIGHT and SHANTE MICHELLE SANDS of New Providence, Bahamas intend to change the male child born to us name KENRICO RASHAD WRIGHT JR. to KEVIN ALEXANDER SANDS. If there are any objections to this change of name by Deed Poll, you may write such objections to the Chief Passport Officer, P. O. Box N-742,Nassau Bahamas no later than Thirty (30)days after the date of publication of this notice.
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Port chief brands Nassau Harbour repairs ‘non-issue’ FROM PAGE 1 cruise shipping coming into the Bahamas’ capital city. Concerns over the breakwaters were also raised in a Caribbean Development Bank (CDB) report last year, but Captain Roker told Tribune Business: “The breakwater has been like that for years. The ships coming into the harbour are not affected. There may be an issue at Arawak Port, but 95 per cent of the time that is not an issue. It is only when we have a cold front; when we have huge swells, they are affected by the breakwater. The breakwater as it is right now was damaged years ago by a hurricane and it was not repaired. It is not affecting the exit and entrance into the harbour.” The CDB report suggested that the Port Department’s “financial constraints” were preventing it from carrying out essential $20 million repairs, and recommended that institutional reforms transfer the legal responsibilities for these from the government-run agency to Arawak Port Development Company (APD). The report, entitled ‘Transforming the Caribbean port services industry’, said such reforms would allow the Nassau Container Port’s BISX-listed operator to cease paying port dues to the Port
Department. Captain Roker, however, contradicted the CDB report by saying: “Money was not the issue.” He reiterated: “It doesn’t affect the transit of the ships. What has been damaged is the eastern breakwater. It can be repaired. “It has been that way for such a long time that it just became a common practice that persons coming into the harbour would pay attention to that. That issue for us is a non-issue.” Captain Roker’s comments appear to place him at odds with Desmond Bannister, minister of works, at least when it comes to the importance of repairing Nassau harbour’s breakwaters. Describing the repairs as “a critical challenge”, Mr Bannister told Tribune Business in a recent interview that the Government was aiming to include the work as part of a $35 million Inter-American Development Bank-financed (IDB) project to upgrade the Bahamas’ coastal management and infrastructure. “It’s a critical challenge, and the Government is cognisant of it,” the Minister revealed. “We are fully committed to ensuring that we get this work done. We are committing to an IDB loan with respect to what needs to be done for the breakwater, the harbour, the whole works. It’s part of that loan. “I can tell you that I have it all on my desk. Everything is
set out in the arrangement we’ve made, and we’re confident we can do what we have to do with the funding we have.” Mr Bannister backed the importance attached to the repairs by the IDB and CDB reports, given that the breakwaters impact a harbour that facilitates both the Bahamas’ largest cruise port and New Providence’s only commercial shipping port. “It is a critical project for the country,” he told Tribune Business. “It’s critical for commerce in the Bahamas. It’s critical to protect our harbour and city, and it’s something the Government is fully committed to. We know the risks, we know the dangers, and are going to make the repairs.” Mr Bannister said he was unable to provide a timeline for when the project would start, and how long it would take to complete. But he reiterated: “It’s critical to the Government, absolutely critical. We’re not going to overlook it all. We’re not going to sit on it.” The Minister’s concern and focus likely stems from the fact it was Ministry of Works personnel who told IDB representatives about the urgency and importance of repairing Nassau Harbour’s breakwaters. An economic analysis, accompanying the $35 million IDB project, warned that the harbour’s deteriorating breakwaters
were affecting the flow of ships to both Prince George Wharf and Arawak Cay. It added that Ministry of Works personnel had described the breakwaters’ repair as “a top project priority”, given the potential impact to the Bahamas’ main cruise passenger gateway and the sole entry point to New Providence for commercial goods. “From the perspective of stakeholders at the Ministry of Works and Urban Development (MOWUD), rehabilitation of breakwater infrastructure for the Port of Nassau and cruise terminal is a top project priority,” the report by Dr Craig Landry, a natural resource economist at the University of Georgia, revealed. “The eastern breakwater is currently in a heavily degraded state, and the western breakwater has several breaches, complicating navigability of cruise ships and commercial freighters. By limiting the flow of imports and exports, and inhibiting tourism arrivals, this situation threatens the viability of the Bahamian economy.” But Captain Roker told Tribune Business: “Even with the swells, vessels are able to dock at Arawak Cay. Does the breakwater need repair? Not the western wall, but the eastern wall,” “Is that a cause of concern that we should be spending money on that? Not at this time. We have had many storms since that. It was
damaged back in the 80s or early 90s. “If there are ships that can’t come to Prince George Dock, it has to be under serious conditions where hurricane force winds or tropical force winds are imminent. We don’t see it as being a cause for alarm. Ships have been been coming in for years unaffected.” Yet Dr Landry’s study further reinforced the critical importance of enhancing the Port of Nassau’s infrastructure, pointing out that sea arrivals accounted for 77.2 per cent of the Bahamas’ 6.11 million visitors in 2015, with some 47.8 per cent coming through Prince George Wharf. “Stakeholders at the Ministry of Works indicate that maintenance of navigation infrastructure at the port and cruise terminal in Nassau are critical for maintaining tourism and commodity flows,” the IDB economic analysis reiterated. “The breakwaters, in particular, are of primary importance for viability of navigation within the harbour, but they are currently in very poor shape, with numerous breaches in the eastern section and weaknesses in the western section. “Investments in coastal infrastructure can include upgrading and augmenting the current breakwaters to provide for enhanced serviceability and sustainability for the Port of Nassau and cruise terminal.”
BAHAMAS ‘MUST RID ITSELF OF THE TAX HAVEN LABEL’ FROM PAGE 1
financial and business community, she added that this nation needed to “get beyond the threat of blacklists” to instead focus on growth and reforming its business model. Ms McCartney said that while reform should not be driven by outside pressures, she hoped that the EU ‘blacklist’ and related OECD initiatives would “help move the dialogue along” on whether the Bahamas’ current taxation model was suitable for the financial services industry’s future needs. Declining to say whether the EU/OECD offensives were pushing the Bahamas
towards introducing a corporate income tax, she said this was a discussion the Bahamas needed to have in its own interests and on its own terms. “We never want to be on any adverse listing,” Ms McCartney told Tribune Business, after Hurricane Irma’s devastation spared the Bahamas’ the EU’s wrath (see other article on Page 1B). “Industry worked closely with the Government to ensure steps were taken to avoid being on any list, and the Government had given an indication to us that they had managed it adequately and thought we would avoid any listing. I guess that’s evidenced today.”
The BFSB chief executive indicated that the EU’s action was unlikely to be the last such initiative faced by the Bahamas, and warned: “The risk of these adverse listings always looms in this environment. “We have to be in a state of continual improvement, and ensure we’re always aligned with international standards. The work doesn’t stop. We know what the focus is. The focus is on tax transparency and co-operation, and the need for us to rid ourselves of the perception and label of being an ‘offshore tax haven’. “We need to ensure policy actions are taken to get us out of this category. From my perspective and
the industry’s perspective, we are committed to ensuring policy positions are taken to reposition and remove this ‘tax haven’ perception that continues to bedevil us as an international financial centre (IFC).” Apart from reputational damage, Ms McCartney said inclusion on the EU’s ‘blacklist’ could have resulted in a further loss of correspondent banking relationships for the Bahamas due to a higher “risk profile”. Financial institutions in this nation have experienced the severance of relationships with foreign counterparts, due to global ‘de-risking’ trends, and a
MARKET REPORT MONDAY, 4 DECEMBER 2017
t. 242.323.2330 | f. 242.323.2320 | www.bisxbahamas.com
BISX ALL SHARE INDEX: CLOSE 2,070.55 | CHG 0.01 | %CHG 0.00 | YTD 132.34 | YTD% 6.83 BISX LISTED & TRADED SECURITIES 52WK HI 4.38 19.17 9.09 3.70 1.77 0.16 5.60 8.60 6.30 5.30 13.50 2.59 1.60 6.01 10.55 11.00 4.50 7.25 12.51 11.00
52WK LOW 4.06 17.43 8.19 3.50 1.09 0.12 3.50 8.40 5.83 3.15 9.00 2.18 1.40 5.82 8.78 5.75 3.35 6.61 12.01 10.00
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 Famguard Fidelity Bank Finco Focol ICD Utilities J. S. Johnson Premier Real Estate
1000.00 1000.00 1000.00 1000.00
1000.00 1000.00 1000.00 1000.00
Cable Bahamas Series 6 Cable Bahamas Series 8 Cable Bahamas Series 9 Cable Bahamas Series 10 Colina Holdings Class A Commonwealth Bank Class Commonwealth Bank Class Commonwealth Bank Class Commonwealth Bank Class Commonwealth Bank Class Commonwealth Bank Class Fidelity Bank Class A Focol Class B
PREFERENCE SHARES
1.00 103.00 100.00 106.00 105.00 103.00 100.00 10.00 1.01
1.00 100.00 100.00 100.00 105.00 100.00 100.00 10.00 1.00
SYMBOL AML APD BPF BWL BOB BBL CAB CIB CHL CBL CBB CWCB DHS FAM FBB FIN FCL ICD JSJ PRE
E J K L M N
CORPORATE DEBT - (percentage pricing) 52WK HI 100.00 100.00
52WK LOW 100.00 100.00
CAB6 CAB8 CAB9 CAB10 CHLA CBLE CBLJ CBLK CBLL CBLM CBLN FBBA FCLB
SECURITY Fidelity Bank Note 18 (Series E) + Fidelity Bank Note 22 (Series B) +
SYMBOL FBB18 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 2.10 3.98 1.97 176.30 149.66 1.52 1.69 1.61 1.10 6.99 8.54 6.15 10.52 11.46 10.46
52WK LOW 1.67 3.04 1.68 164.74 116.70 1.46 1.62 1.56 1.04 6.41 7.62 5.66 8.65 10.54 9.57
LAST CLOSE 4.31 17.43 9.09 3.70 1.09 0.15 3.70 8.60 6.10 4.93 9.01 2.63 1.51 6.01 10.55 6.29 4.49 7.01 12.50 10.00
CLOSE 4.31 17.43 9.09 3.70 1.09 0.15 3.70 8.60 6.10 4.93 9.01 2.65 1.51 6.01 10.55 6.29 4.49 7.01 12.50 10.00
CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.02 0.00 0.00 0.00 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
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
LAST SALE 100.00 100.00
CLOSE 100.00 100.00
CHANGE 0.00 0.00
108.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
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
108.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
FUND CFAL Bond Fund CFAL Balanced Fund CFAL Money Market Fund CFAL Global Bond Fund CFAL Global Equity Fund 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
VOLUME
150
VOLUME
NAV 2.10 3.98 1.97 176.30 149.66 1.52 1.69 1.61 1.09 6.97 8.00 6.25 10.96 11.60 10.08
EPS$ 0.444 0.932 -0.223 0.540 -1.220 0.000 -1.462 0.611 0.583 0.196 0.631 0.102 0.392 1.217 0.729 0.484 0.310 -0.668 0.543 0.000
DIV$ 0.080 1.130 0.000 0.230 0.000 0.000 0.000 0.300 0.220 0.120 0.570 0.060 0.050 0.290 0.500 0.000 0.120 0.140 0.580 0.000
P/E 9.7 18.7 N/M 6.9 N/M N/M -2.5 14.1 10.5 25.2 14.3 26.0 3.9 4.9 14.5 13.0 14.5 -10.5 23.0 0.0
YIELD 1.86% 6.48% 0.00% 6.22% 0.00% 0.00% 0.00% 3.49% 3.61% 2.43% 6.33% 2.26% 3.31% 4.83% 4.74% 0.00% 2.67% 2.00% 4.64% 0.00%
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 6.00% Prime + 1.75%
MATURITY 31-May-2018 19-Oct-2022
6.95% 4.00% 4.25% 4.25% 4.50% 4.50% 6.25% 6.25% 4.00% 4.25% 4.50% 6.25% 3.50% 3.88% 4.25%
20-Nov-2029 30-Jul-2018 16-Dec-2019 30-Jul-2020 15-Dec-2021 30-Jul-2022 15-Dec-2044 30-Jul-2045 26-Jun-2018 26-Jun-2020 26-Jun-2022 26-Jun-2045 15-Oct-2018 15-Oct-2020 15-Oct-2022
YTD% 12 MTH% 3.29% 4.48% 1.69% 2.22% 1.77% 2.42% 4.66% 3.89% 5.58% 6.65% 3.57% 4.29% 1.59% 2.22% 2.65% 3.25% 3.83% -1.09% -1.08% 1.77% -5.96% -3.05% 1.90% 4.59% 7.24% 11.96% 2.77% 3.88% 3.94% 4.69%
NAV Date 30-Sep-2017 30-Sep-2017 30-Sep-2017 30-Sep-2017 30-Sep-2017 31-Oct-2017 31-Oct-2017 31-Oct-2017 31-Oct-2017 30-Sep-2017 30-Sep-2017 30-Sep-2017 30-Sep-2017 30-Sep-2017 30-Sep-2017
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
‘blacklisting’ could have both exacerbated and accelerated this problem. “An increased risk profile would impact ‘de-risking’ and just not be good for our brand,” Ms McCartney told Tribune Business. “It’s not good for your brand to be on any of these lists, and the main impact would have been reputational risk and an increased risk profile that could impact correspondent banking relationships.” She added that the financial services industry would continue to work with the Government to “ensure our reputation remains intact” and also begin dialogue on potential tax reform. “Where you don’t have corporate income tax is something that is looked upon unfavourably,” Ms McCartney said of the EU/ OECD. “I’m not going to say the criteria is pushing us to look at that, but we as an industry have been asking for discussions on this, and a review of the tax structure, outside of the EU listing and OECD processes.” The BFSB previously commissioned a study by Deloitte & Touche’s UK arm that benchmarked the Bahamas’ tax structure against rival IFCs “to see where we stand”, and lay
out possible policy options for reform. “We looked at this in particular as a way to enter into double taxation agreements, to enter into investment treaties, and hopefully this [the EU listing] will help move that dialogue along,” Mr McCartney told Tribune Business. “We’ve talked to successive administrations on it, and continue to do so to ensure policy positions are taken so we can compete. We need to get beyond the threat of blacklisting.” Ms McCartney added that the entire economy and society needed to be involved in any tax review, emphasising that discussions could not involve the financial services industry alone. “We’re not asking for new taxes to be implemented,” she added. “We’re saying we have to improve efficiency in the existing tax structure, and what can we do in amending the framework. Is there an opportunity to reform Business License fees? “We’re asking for a serious dialogue with a view to determining policy positions on the way forward. We need broad stakeholder dialogue on this question of tax reform and review of the tax system. We believe we’re in an environment where that has to happen.”
DPM: PROPER INTERNAL AUDITING WOULD HAVE SAVED GOV’T MILLIONS FROM PAGE 1 recommendations, could have prevented significant losses. Mr Turnquest, who is also minister of finance, also said the Auditor General’s department needed strengthening from both a staffing and capacity standpoint. “Our internal audit functions need strengthening. It has been overlooked,” the Deputy Prime Minister. “That is something we are focusing on, and want to ensure that we have the right people and right number of people. “If the Government had an effective internal audit programme, and the willingness and commitment to follow the recommendations made, we would have saved millions over the last couple of years.” Turning to the economy and fiscal measures, Mr Turnquest said the Bahamas’ current rate of GDP growth “won’t do”. “The average over the last decade, when we take the peaks and valleys out, is 1 per cent. It won’t do,” he reaffirmed. Mr Turnquest said the Government was also aiming to move the Bahamas from the bottom third and into the top half
of the World Bank’s ‘ease of doing business’ rankings. “I do not accept that we are any slower or less aggressive than anyone else in the region,” said Mr Turnquest. Underscoring the need for expenditure controls and ‘fiscal rules’, Mr Turnquest said all the revenue gained from Value-Added Tax’s (VAT) introduction will evaporate due to an increase in government spending. “Programmes were implemented that didn’t have the necessary controls in place, nor did they have well-defined missions, resulting in runaway spending,” said Mr Turnquest. He added that the Minnis administration was committed to introducing legislation for ‘fiscal rules’ before the next Budget cycle. Mr Turnquest said the rules could include capping debt-toGDP, targeting the level of concessions given to foreign direct investment (FDI), and also domestic investment, as a percentage of GDP. “We want to look at wages as a percentage of GDP to ensure we put in some guidelines to help build-in the kind of discipline we need to arrest this debt slide we have, and bring it down eventually as the economy expands,” said Mr Turnquest.
THE TRIBUNE
Wednesday, December 6, 2017, PAGE 7
GB Chamber chief: Make Enterprises Bill more ‘flexible’ FROM PAGE 1 Suggesting that the ‘technology hub’ plans had probably helped drive the Commercial Enterprises Bill’s creation, the GB Chamber chief said the latter would tackle a longstanding problem he had identified. “I’ve argued for some time that the $500,000 capital requirement for foreign investors is somewhat arbitrary,” he told this newspaper. “It’s been reduced in this case to $250,000, but I always thought the absolute requirement for a $500,000 investment was inflexible and didn’t take into account other important factors. “You can have a new technology business that requires just a half dozen chairs and desks, and half-a-dozen computers. That doesn’t stack up to a $500,000 investment.” A similar point was made by Brent Symonette, minister of financial services, trade and industry and Immigration, who explained that the lower $250,000 investment threshold was selected because some of the targeted industries - call centres, maritime brokerage and technology start-ups - did not require significant upfront capital. Mr Holding, meanwhile, also supported the certainty that would be created by the Commercial Enterprises Bill’s ‘fast track’ work
permit process, which mandates that the Immigration Department approve permits for senior executives of targeted industries within 14 days. “I’ve seen too many cases in the past where businesses have come to the Bahamas, but they find it very difficult to start up operations because they can’t get work permits for senior executives,” he told Tribune Business. “The timeline is important so that when people come to invest they can say: ‘I’m good to go’. Fourteen days is reasonable because Immigration can still say ‘no’.” The Bill provides for work permits to be issued for up to three years, and renewed for a similar term, with the Government arguing that six years should be sufficient for companies to train up Bahamian understudies to replace the expatriates. Mr Holding agreed that the process “can’t be carte blanche”, with companies obtaining as many work permits as they liked, and backed ‘knowledge transfer’ and training for Bahamians. Yet, describing the Bill as “a boost”, he added: “I think it will dovetail in quite nicely. Having launched the Grand Bahama Technology Summit, and invited companies to come here and start businesses here, to make some steps to say
we’ve made it easier with this Commercial Enterprises Bill sends a strong message to them I would have thought.” Mr Holding added that the Commercial Enterprises Bill would also complement the Government’s Grand Bahama (Port Area) Extension of Tax Exemptions Bill, which will provide a ‘blanket’ 20-year renewal of expired tax exemptions for Freeport’s licensees and homeowners, not just the Port Authority and Hutchison Whampoa. “We at the Chamber of Commerce had lobbied for that for most of 2017, so we were very happy to see that happen,” he told Tribune Business of the new legislation. “It gives 20 years of certainty to any business looking to invest in Freeport with these tax concessions. “Prior to that, where you were left to apply and there was uncertainty as to the length of concessions, that meant businesses wanting to invest didn’t know what their costs and liabilities were going to be. “It’s all about creating an environment of certainty. The work permits work into that as well. If licensees know they have the tax concessions, they can plan on 20 years, and plan on having the work permits for three years. It creates certainty.”
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THE TRIBUNE