12072021 BUSINESS

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TUESDAY, DECEMBER 7, 2021

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Tourism’s fears ‘knee jerk’ COVID reaction

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Government was yesterday urged to avoid “knee jerk reactions” to new COVID variants as hotels voiced fears that “across-the-board” PCR testing could undermine their Christmas trade.

Benjamin Simmons, proprietor of the The Other Side and Ocean View properties in Harbour Island/ Eleuthera, told Tribune Business that returning to

• ‘Large guest volume’ hit if PCR test ‘across the board’ • BHTA chief ‘more concerned about going backwards’ • ‘Very dicey and hair raising’ to gain test result in time a policy of requiring PCR tests for both vaccinated and unvaccinated tourists travelling to The Bahamas “would definitely discourage a large volume of our guests” from coming.

Given that current evidence regarding the latest Omicron COVID strain was inconclusive, especially as to whether it as deadly and infectious as the ‘Delta’ variant, he

ROBERT SANDS warned that the extra cost associated with PCR tests and the ease of obtaining them (and the results)

SEE PAGE 4

‘Rid yourselves of negative thoughts’ on $200m project

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net BAHAMIANS were yesterday urged to “rid themselves of any negative thoughts” as to whether the latest $200m effort to revive the Cotton Bay Club is for real.

Sir Franklyn Wilson, who heads the adjacent Jack’s Bay development, told Tribune Business that Bahamians needed to disabuse themselves of the notion that Colombian billionaire, Dr Luis Carlos Sarmiento, and his Cotton Bay Holdings team have been “dragging their feet” on the south Eleuthera project for 25 years.

Speaking after the Davis administration signed a revised Heads of Agreement with Cotton Bay Holdings, which will see the property branded

by Marriott International’s Ritz-Carlton Reserve

brand, he again blamed “terrible public policy” by the then-government for the project failing to proceed as far back as 1997.

Asked what should convince Bahamians, and

SEE PAGE 4

DANIEL ZULETA MARTINEZ, Local Manager, Cotton Bay Holdings Ltd., Eleuthera, signs Heads of Agreement between the Bahamas Government and Cotton Bay Holdings Ltd for the addition of The Ritz-Carlton to that South Eleuthera property.

The agreement was signed during a ceremony at the Office of the Prime Minister on Monday, December 6, 2021.

Looking on are the Hon. Chester Cooper, Deputy Prime Minister and Minister of Tourism, Investments and Aviation; the Hon. Philip Davis, Prime Minister and Minister of Finance; Lynn Holowesko, attorney; and standing, Phylicia Woods-Hanna, Director of Investments, Bahamas Investment Authority.

Photo:Kemuel Stubbs/BIS

Minnis: Give PI investor ‘all the help’ necessary

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE former prime minister urged his investments chief to give a Bahamian entrepreneur “all the assistance necessary” to ensure his success only to snub him 12 months later for Royal Caribbean.

Tribune Business has seen e-mails showing that Dr Hubert Minnis was extremely keen for Toby Smith’s $2m Paradise Island Lighthouse and Beach Club project to succeed when he contacted Candia

Ferguson, then-director of investments at the Bahamas Investment Authority (BIA), in early 20190.

Responding to Mr Smith’s request for meetings with multiple government agencies, including the Department of Lands and Surveys and Antiquities, Monuments and Museums Corporation (AMMC), in an effort to move his project forward, Dr Minnis wrote: “Candia, kindly ensure Toby receives all the assistance necessary... He

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IMF: 12% VAT rate ‘lowest in Caribbean’ • Fund selected 15% as ‘example’; not cast-iron • Added that system’s efficiency ‘matches’ peers • Minister: VAT’s efficiency fell to 84% with hike

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Bahamas’ soonto-be-repealed 12 percent VAT rate was branded “the lowest in the Caribbean” by the International Monetary Fund (IMF) in its much-debated report to the Government.

The Fund, in its assessment of tax policy reform

options delivered to the Minnis administration just prior to the September 16 general election, also appeared to give something less than a cast-iron recommendation to raise the VAT rate to 15 percent to sustain the system of ‘zero ratings’ and exemptions.

It gave 15 percent as an “example”, seemingly

SEE PAGE 5

Gov’ts 3% growth target below UoB ‘health’ goal

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A CABINET minister yesterday said the Government is targeting a five-year average growth rate that falls short of that recommended to restore The Bahamas to economic and fiscal “health”.

Michael Halkitis, in leading off debate on the supplementary Budget in the Senate, said the Davis administration is aiming for real economic (GDP)

growth “of at least 3 percent” for the duration of its five-year term in office.

“The Government is targeting potential real economic growth of at least 3 percent per year for the next five years, rather than the low growth rate previously experienced for decades of roughly 1.5 percent per year,” he said.

“This growth level would result in lower levels of unemployment and higher revenues for government.”

SEE PAGE 6

PAGE 2, Tuesday, December 7, 2021

THE TRIBUNE

BTC: FOREIGN HIRES KEY FOR ‘AGGRESSIVE’ ROLL-OUT

THE Bahamas Telecommunications Company (BTC) yesterday said the hiring of nine foreign specialists will benefit locals by achieving its “aggressive plan” to connect 10,000 extra homes by year-end.

The carrier, in a statement responding to social media claims, confirmed the fibre technicians were all engaged on threemonth work permits via “the standard Immigration process” to ensure BTC met the roll-out targets set for its fibre-to-the-home network (FTTH).

Andre Foster, BTC’s chief executive, affirming that the company plans to equip 10,000 homes with “a superior broadband

experience” via this new network infrastructure before the year ends, said seven Bahamian companies and multiple local contractors have also been hired to work on the project.

“Combined with BTC’s existing internal construction expertise, the local construction contractors represent a total workforce of over 60 Bahamians building The Bahamas’ network of the future,” Mr Foster added, defending the expatriate hiring.

“The supplemental international contractors bring the total amount of teams on the ground to over 70 people, and represent the largest active

ANDRE FOSTER telecommunications construction currently in the country.”

Mr Foster that the international technicians’ mandate also requires them to train their Bahamian counterparts, who are less familiar with the fibreto-the-home technology given BTC’s prior reliance on its legacy, outdated copper systems.

“In addition to the assistance with fibre installation, the international company is providing training and upskilling for BTC’s independent copper contractors, as the company moves towards a fully ‘fiberised’ network,” the BTC chief added.

“BTC remains committed to its employees, and we take our responsibility to care for our colleagues

very seriously. During this global pandemic, when many companies were forced to downsize and reduce salaries, no BTC employees were furloughed, no salaries were reduced and Christmas bonuses and increments were paid.

“Additionally, BTC remains committed to growth and advancement, and this year alone more than 40 employees were either promoted or transitioned from temporary to full-time status.”

Mr Foster continued: “Three employees were promoted to the senior leadership team, one of which is our first female director of technology

operations. Several team members were promoted to leadership positions at the C&W (Cable & Wireless) regional level and, just recently, an employee from Grand Bahama was appointed as head of technology operations for Flow Cayman.

“BTC is the only company in the country, and the first in the region, to introduce an enhanced parental leave policy, which provides 16 weeks of paid leave to mothers, eight weeks of paid leave to fathers, and eight weeks of paid leave to adoptive parents.”

SPICE ENTREPRENEUR MAKES PALM BEACH BREAKTHROUGH PLANTATION Hill seasoning spices, blended in The Bahamas by entrepreneur Julie Hoffer, will featured at this weekend’s Palm Beach Food & Wine Festival.

They will be showcased in the preparation of Caribbean-inspired dishes

by Chef Larry Forigone and his son, Chef Marc Forigone, at the festival which is being held from December 9-12.

The tie-up resulted after Chef Larry and Ms Hoffer met at the Summer Fancy Food Show, held at the Javitts Centre, some years ago. Ms Hoffer said: “Chef Larry had one of the more popular booths. It was constantly swamped with people at the show, and so I waited until he took a bathroom break and just accidentally bumped into him, on purpose.

They struck up an enduring friendship that Ms Hoffer has nurtured over the years, dropping in to see the Forigone family whenever she visited New York on her travels. Chef Larry owns a restaurant in New York called American Place.

The menu that will be served at the Palm Beach Food & Wine Festival is Potcake Rice, a crispy, spicy dish created with the Plantation Hill spice blends, together with smoked duck marinated in Plantation Hill’s mango papaya jam glaze.

Potcake Rice developed from stories that Julie shared over the years about the tasty, cakey residue left on the bottom of a pot of peas ‘n rice. The name came from dogs which belong to an unusual breed known as the Royal Bahamian Potcake.

This special breed of dog has been the inspiration for an elegant Pinot Noir called Potcake Saga, produced from grapes grown on an estate called Potcake Farms in Dundee Hills, Dayton, in the US. Janet Johnson, the Tourism Development Corporation’s chief executive/executive director, said: “Julie casually mentioned to me that she was going to the festival this week, and that her spices were being featured in this way, and I am so excited for her and to see tourism linkages manifested in this way. It’s

amazing what creativity and perseverance will do.”

“This is a quantum step forward for Bahamian entrepreneurs,” said Senator James R. Turner, the Tourism Development Corporation’s chairman. “Bahamians are demonstrating their culinary prowess, blending seasonings that have universal appeal and showcasing the range of their capability of producing world class products that are being sought after and used in recipes by world class chefs.”

Plantation Hill products are sold in Super Value and AML Foods’ Solomon’s Fresh Market stores.

Its Pasion Tea brand, and range of jams, jellies and sauces, are carried in fine dining restaurants in Nassau and Paradise Island as well as hotel gift shops throughout The Bahamas.

CABLE BLAMES BPL FOR WEEKEND’S DISRUPTION CABLE Bahamas yesterday blamed weekend service disruptions on a Bahamas Power & Light (BPL) electricity spike that knocked out key equipment.

The BISX-listed communications provider’s REV TV, Internet and fixedline voice subsidiary, in a statement apologised to customers for the power failure that impacted

its head-end and video services.

Those services included its channel guide and back office systems “as a result of a BPL spike that impacted one of” the company’s Uninterrupted Power Source units (UPS).

“Customers would have experienced service disruption on Saturday and Sunday for short periods,” Cable Bahamas said. “Our restoration teams were

immediately deployed to troubleshoot all relevant equipment, and were able to identify the hardware fault in our UPS system.

The root cause of the issue has been identified.”

The company said it was hoping to resolve all issue “during the maintenance window” yesterday.

Coralwave mail customers were also impactedand expectedto be fully restored yesterday.

THE TRIBUNE

Tuesday, December 7, 2021, PAGE 3

MINIMUM WAGE INCREASE ‘DEFINITELY’ WILL BE STUDIED

By NEIL HARTNELL and YOURI KEMP Tribune Business Reporters

THE National Tripartite Council will “definitely be looking” at a potential minimum wage increase, its vice-chair said yesterday, after the Government requested that it study the matter.

Peter Goudie, who represents employer interests on the body charged with addressing all labourrelated matters in The Bahamas, told Tribune Business that the Council will likely form a committee to research the minimum wage issue when it meets on December 14, 20121.

The Progressive Liberal Party (PLP), in its election campaign manifesto, pledged to raise the private sector minimum wage by 19 percent - increasing it from $210 to $250 per week.

“He’s asked us to take a look at it,” Mr Goudie said of the Prime Minister, “and we will take a look at it.

“We haven’t formed a committee yet. That will happen on December 14, when we have a National Tripartite Council meeting to set the agenda for the next three years. We’ll definitely be looking at the minimum wage. That’s what they want. We will form a committee and do the research on it.

“We’ll decide our priorities on December 14 and go from there. We have to look at what we’re going to do tomorrow, what we’re going to do a year from now, that kind of stuff. We’re moving.” Mr Goudie said yesterday’s Decent Country Work Programme (DCWP) signing had “all been very positive, and there was lots of support. It was all wonderful”.

PETER GOUDIE

PHILIP DAVIS QC

The minimum wage was last increased by 40 percent in 2015 by the former Christie administration, which took it from $150 per week to $210 per week in the wake of Value-Added Tax’s (VAT) introduction.

While another increase would raise incomes for the lowest wage earners in Bahamian society, and thus help to somewhat offset the impact of rising inflation on

the most vulnerable families, a minimum wage hike can come with unintended consequences.

For it increases employers’ marginal employment costs and, if raised too high, could disincentivise companies from hiring young, low-skilled labour at a time when the economy needs every job it can get in trying to recover from COVID-19.

Philip Davis QC, the Prime Minister, speaking at the Memorandum of Understanding’s (MoU) signing, said: “I’m extremely pleased to advise that my government and the National Tripartite Council have finalised the national policy on labour relations.”

Part of this policy includes the adoption of the DWCP. Mr Davis added: “There will also be the adoption of a child labour policy. The application of ILO Convention 159.” ILO 159 is the International Labour Organisation’s (ILO) vocational rehabilitation and employment for disabled persons convention.

“There will be the establishment of the national productivity council, the enactment of legislation to establish a livable wage, and a comprehensive review of the minimum wage and an increase in the national

minimum wage,” the Prime Minister said, although he gave no figure on what the latter will be increased to.

Mr Davis also promised to enhance the Industrial Tribunal to make its decision more binding and final.

The Tribunal’s rulings still need be taken to the Supreme Court for enforcement, which can end up costing parties thousands of dollars in extra legal fees.

The Prime Minister added: “In preparation for the development of The Bahamas’ second generation DWCP, the Ministry of Labour in conjunction with the National Tripartite Council and the ILO Decent Work team will be focusing on consulting with their partners and their social partners, and other national and regional stakeholders, to ensure the widest public consultation process to develop the second generation DCWP.”

‘DECENT WORK’ NEEDS STRONGER LABOUR LAWS

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net A TRADE union leader yesterday said The Bahamas’ latest five-year Decent Work Country Programme (DWCP) will demand a “strengthening” of current labour laws.

Bernard Evans, the National Congress of Trade Unions of The Bahamas (NCTUB) president, told Tribune Business

that the signing of the Memorandum of Understanding (MoU) between the International Labour Organisation (ILO), the Government and the various social partners - employers and unions takes the initiative into the implementation phase.

“There’s a number of briefings that we will do with the various stakeholders, and to deal with human resource personnel, to let them know what it means to have decent work and

DPM ASSESSES ABACO PROJECTS, INFRASTRUCTURE CHESTER Cooper, deputy prime minister and minister of tourism, investments and aviation, assessed the Marsh Harbour and Treasure Cay airports, Spring City Township, Bakers Bay development, and tourism infrastructure and investments in the pipeline during a recent visit to Abaco.

Included in his delegation were Senator Randy Rolle, consultant at the Ministry of Tourism, Investments and Aviation; Phylicia Hanna-Woods, director of investments, Ministry of Tourism, Investments and Aviation; Algernon Cargill, director of aviation; Niko Davis, senior superintendent for Family Island airports; and Alex Storr, executive chairman of the Disaster Reconstruction Authority (DRA).

Upon his arrival, Mr Cooper was met in Marsh Harbour by Jobeth ColebyDavis, minister of transport and housing; John Pinder, parliamentary secretary, Ministry of Tourism, Investments and Aviation; Kirk Cornish, parliamentary secretary in the Office of the Prime Minister (Abaco); and senior government and local government officials.

Photos:Kemuel Stubbs/BIS

what it really enshrines,” Mr Evans said.

Decent Work Country Programmes (DWCPs) have been established as the main vehicle for delivering ILO support to multiple countries. They often feature as a key component in national development strategies.

They also place ILO knowledge, instruments, assistance and co-operation at the service of governments, employers and organised labour.

Present at the MoU signing

were representatives from both the ILO and the Government, Khrystle Rutherford-Ferguson, the Bahamas Chamber of Commerce and Employers Confederation’s (BCCEC) chairman, and trade union leaders.

Mr Evans said: “There are four pillars of the DWCP. One, that a worker has a right to organise and socialise with management in terms of anything that concerns them and their well-being. Whether it is safety issues, it’s wages.

Whether it’s health or pensions, or all of the stuff, without being chastised or facing repercussions because of it.

“When you see a union will now have industrial agreements, all the tenants of those agreements, we have those same protections that the DWCP has called for. If you fall outside of a union, where you can’t negotiate, you don’t have a right to sit down with an owner of a company or the chief executive, you

somehow don’t have those guarantees.

“So sometimes the fundamental right to organise is really shunned upon and really telling you that you can’t have it. So this is a violation of not only the DWCP agenda, but of our constitution that says you have a right to organise.

We expect legislation to be strengthened. Legislation is there but there is a lack of penalties if an employer reneges. It is not really carried through.”

PAGE 4, Tuesday, December 7, 2021

THE TRIBUNE

TOURISM’S FEARS ‘KNEE JERK’ COVID REACTION FROM PAGE ONE within the present five-day pre-travel window could act as a travel deterrent just prior to the critical festive period.

Speaking after Dr Michael Darville, minister of health and wellness, revealed that the Government is considering whether to introduce mandatory PCR testing for all travellers regardless of vaccination status, Mr Simmons said: “The concern was expressed that depending on what part of the US you are coming from, it could be difficult to get one.

“I think that is a concern, and that would definitely discourage a large volume of our guests. As far as I know, the conditions associated with the Omicron variant are generally pretty mild. Unless proven otherwise, it’s a bit of a knee jerk reaction that could be damaging to the economy if we implement the requirement of a PCR test for all.”

Joy Jibrilu, the Ministry of Tourism, Investments and Aviation’s directorgeneral, recently said up to 70 percent of The Bahamas’ hotel guests are arriving fully vaccinated against COVID-19. Presently, those persons just

need to produce a rapid antigen test taken within five days of travel to enter this nation. It is only the unvaccinated that must take a COVID PCR test.

However, Dr Darville told local media that the Government is mulling whether to mandate RT-PCR testing for all travellers, vaccinated and unvaccinated, due to Omicron’s emergence.

Implementing such a policy would thus increase costs, and obstacles to travel, for some 70 percent of The Bahamas’ tourism customers.

Mr Simmons said persons would struggle to take the PCR test, and obtain the results, within the fiveday travel window that is stipulated. “I would be concerned if they’re going to go to across-the-board PCR testing,” he told Tribune Business.

“I don’t know if Omicron has proven to be as deadly as the Alpha or Delta variants. I’d leave it up to the doctors to decide, but as a businessman I’d definitely be concerned for that outcome [OCR testing for all] unless absolutely necessary.

That didn’t go so well last time.

“I’m not a medical professional, but everything I’ve

KERRY FOUNTAIN heard so far is inconclusive as to whether it’s a more deadly variant, whether it’s more contagious, whether are more hospitalisations. I’m hopeful we’re approaching the endemic cycle of COVID-19 and can just get on with it.”

Robert Sands, the Bahamas Hotel and Tourism Association (BHTA) president, yesterday said the industry was set to discuss the Omicron variant and possible changes to the COVID testing regime at its meeting this week. He

suggested that narrowing the testing window from the present five days may be a better solution than mandating PCR tests for all incoming travellers.

“Certainly the health and welfare of our tourism sector is paramount,” the BHTA chief told Tribune Business. “We will certainly engage the Government if we feel this will become a deterrent to business, and the pace of business in the ongoing recovery of tourism in The Bahamas.

“There’s no question in my mind that there needs to be a balance between implementation of health protocols to ensure the safety of the tourism sector and ensuring a prolonged recovery. This is a very difficult position we find ourselves in. Certainly, I’m sure the Government is also reviewing the other issues that may impact this, which would be the shortening of the window for testing.

“That would be, in our opinion, a better approach then the PCR test, which is not necessarily readily available in the time period required.” Mr Sands pledged that the hotel and tourism industry will “engage and collaborate” with the Ministry of Health on the matter as needed.

“We don’t want anything that could possibly retard growth but we don’t want to do anything by lack of action that could cause the demise of, and retard, growth in this sector,” he reiterated. “It has to be a balanced approach, and I think whatever decision is made will address the two issues: Safety and also not retarding the ongoing recovery.”

Acknowledging that “tough decisions” will continue to arise as The Bahamas works its way through the COVID-19 pandemic, the BHTA president declined to comment on the likely impact for the sector’s Christmas and New Year business, and peak winter 2022, if mandatory PCR testing was reimposed for all incoming Bahamian and tourist travellers.

“I don’t want to jump to any conclusions and be a naysayer on that particular issue,” he added. “I am more concerned about The Bahamas going backwards rather than forwards. We have to continue to rely on the science, and the scientific advice, but also consult on the next steps that may or may not be taken.

“We also have to look at what other responsible jurisdictions are doing as

well, especially in the Caribbean. We have to look at best practices, and see what will work and what is in the best interests of all parties in The Bahamas.”

Kerry Fountain, the Bahamas Out Islands Promotion Board’s executive director, told Tribune Business that while “anything that protects the country and our industry from contracting COVID is, generally speaking, good”, the requirement for all to take a PCR test “adds to the expense of the vacation” by several hundred dollars depending on how many are travelling.

And, while rapid antigen test results were often available within 10-15 minutes, those for PCR tests often took two-three days to come through, thereby making it “very dicey and hair raising” as to whether persons could obtain them - and an approved Bahamas health travel visa - within the required five-day window.

The availability of PCR tests, and the ability to access timely results, was also questionable in Family Islands such as Long Island, San Salvador, Acklins and Crooked Island given the lack of regularly scheduled airlift.

‘RID YOURSELVES OF NEGATIVE THOUGHTS’ ON $200M PROJECT FROM PAGE ONE especially Eleuthera residents, that Dr Sarmiento’s project is now ‘a go’ after several previous efforts stalled, Sir Franklyn said of yesterday’s agreement signing: “This is tremendously good news for the Commonwealth of The Bahamas and Eleuthera in particular.

“The Sarmiento people are of the very highest quality, and that is not just a function of the family being considered to be of very substantial means. These are people of the highest standard. They’ll be great for the country.

“I encourage all Bahamians, particularly from Eleuthera, who in any way think these people are dragging their feet, and are having any negative thoughts about them, to rid themselves of it,” he blasted.

“The project did not start in 1997 because of terrible public policy; terrible public policy. I say that four times. Terrible public policy. Those responsible for it owe an apology to the country for terrible public policy.”

Sir Franklyn did not identify who he was blaming, although given that the

Hubert Ingraham-led Free National Movement (FNM) was in office at the time this is likely to be who he is pointing the finger at.

Asked to explain what he meant by “terrible public policy”, and give specifics, the Jack’s Bay principal replied: “The way they treated Sarmiento, the father. There was no explanation for it. It was terrible public policy.

“Those people were ready and willing to go, but bad public policy, bad public policy and governance, this is what derailed this thing in 1996 and 1997 and, in my humble opinion, triggered the recession Eleuthera has not come out of,” Sir Franklyn said.

“If it’s for real or not for real, it’s not because of Sarmiento. It’s because of our governance and, in particular, our governance in 1996-1997. This is what the terrible governance of that period triggered; the depression in south Eleuthera.

“These are great people; people of the highest standards, and who the country should welcome with open arms. The question of whether it’s for real is a function of other things.

SIR FRANKLYN WILSON It isn’t a function of these people.”

While Sir Franklyn’s “terrible public policy” assertion will likely be challenged, especially by the then-government, the relationship between Dr Sarmiento and ex-prime minister, Hubert Ingraham, was certainly strong just prior to the latter’s 2012 election defeat.

The latter revealed during a May 2012 campaign rally at Governor’s Harbour that the Government was “very close” to sealing a deal with the Colombian billionaire, reputedly the South American nation’s richest man with a $10.3bn fortune obtained from banking.

“I was very pleased yesterday, ladies and gentlemen, as my final act with Cabinet in the Bahamas, to finally give the approval to the Sarmiento development at Cotton Bay,” Mr Ingraham said then. He added that the project was first conceived in the 1990s but did not make much progress as Dr Sarmiento wanted to buy more land but the Government would not allow it.

“I flew into Bogota, Colombia, met with Dr Sarmiento and we now have a deal,” Mr Ingraham said. “The project has changed over the years but I’m happy to be able to tell you that we’ve very close to completing the final arrangements for the centre piece hotel.”

That Heads of Agreement, which involved a Four Seasons-branded property, was left for the subsequent Christie administration to sign in 2015. However, the development again failed to move forward, and little had been heard of it until yesterday’s revised Heads of Agreement signing at the Prime Minister’s Office that replaced Four Seasons with a Ritz-Carlton Reserve.

Daniel Zuleta Martinez, Cotton Bay Holdings’

Bahamas country manager, said some 500 persons will be employed over a four-year construction build-out that will take place in three phases. While no start date was given, the property will feature 90 rooms including a 60-villa Ritz-Carlton Reserve, with 200 full-time jobs set to be created upon completion.

The Prime Minister, who was present at the Heads of Agreement signing with deputy prime minister, Chester Cooper, said a compliance unit will be created to ensure the developer meets its commitments and that Bahamians are given first preference for jobs.

Describing the Cotton Bay project as “an igniting of the past”, Philip Davis added: “Investments have been the lifeblood of the economy. We have been restoring and bringing in new investments.”

Mr Cooper said the developers were proceeding because “the environment is now ripe for investment”.

He added: “It is an important beginning and a bright future for residents of South Eleuthera in terms of job creation, new business opportunities and economic growth.

“We have seen increased interest in investment. The Ritz-Carlton brand is good for Eleuthera and we are seeing the light at the end of the tunnel.” Some 34 persons currently work at Cotton Bay. Mr Zuleta added: “We have been a part of the Bahamian landscape for over 25 years, working alongside the Government of the Bahamas and the community of South Eleuthera to create opportunities for growth and development.

“We are very excited to now partner with Marriott International to combine world-class hospitality with island magnificence, and the stunning natural beauty of The Bahamas. We believe that this project will transform the economy of Eleuthera.

“We chose Marriott because we wanted to work with the best brand in the world to develop this island sanctuary in Eleuthera, and Marriott, but specifically The Ritz-Carlton Reserve, is the perfect brand to harness the magic and seclusion of Eleuthera.”

THE TRIBUNE

Tuesday, December 7, 2021, PAGE 5

MINNIS: GIVE PI INVESTOR ‘ALL THE HELP’ NECESSARY FROM PAGE ONE

must be assisted to ensure success.”

That e-mail was sent on January 22, 2019, which is almost exactly one year prior to the then-Minnis administration’s decision to hold-off signing Mr Smith’s Crown Land lease for a total five acres - one two-acre parcel around the Paradise Island lighthouse, and another three acres further east - after Royal Caribbean expressed its interest in obtaining the latter parcel for its Royal Beach Club.

The contents, and timing, of that e-mail are likely to raise fresh questions over whether a Bahamian entrepreneur, whose Crown Land lease request was submitted first, was jettisoned in favour of the cruise line giant and to make way for its rival development.

For Nicole Campbell, then permanent secretary in the Prime Minister’s Office, wrote to Richard Hardy, director of lands and surveys, on November 14, 2018, affirming that the minister responsible for Crown Lands (Dr Minnis) had agreed to negotiate a 21-year lease with Mr Smith for the five acres plus a portion of the seabed for “recreational and entertainment facilities”.

This, she added, had resulted from decision taken previously by the National Economic Council (NEC), really the Cabinet or a Cabinet sub-committee. However, although Mr Smith received a copy of that lease on January 7, 2020, via a letter from Mr Hardy, and returned it signed several days later, the Government never

signed and executed it on its return.

For five days earlier, on January 2, 2020, Ms Ferguson had informed Royal Caribbean’s attorney, Campbell Cleare at McKinney, Bancroft & Hughes, that the grant of a Crown Land lease “in the vicinity of Colonial Beach” had been approved by the NEC. Royal Caribbean had steadily amassed around 13.5 acres on Paradise Island’s western end by buying out private landowners in the area, but its efforts to lease seven extra Crown Land acres brought it into conflict with Mr Smith as both are seeking the same three acres.

Mr Smith’s subsequent Supreme Court action, which remains live, is alleging that he was granted a valid Crown Land lease over both parcels,

including the lighthouse and the area at Colonial Beach, for his “beach break” destination, and that agreement is now legally binding.

The case is based on the letter from Mr Hardy, which was headlined “approval for crown land lease” over the two tracts he wanted. This lease was agreed over a year before Dr Minnis signed off on Royal Caribbean’s controversial May 2021 lease deal.

That lease yesterday came under fire from activist group, Protect Our Island Funds (POIF), which said the potential 150-year length “makes it clear that, on the environment and economics aspects, the Paradise Island project is a bad deal for The Bahamas”.

It added in a statement: “The lease mandates that the Government renew

every 25 years while ensuring Royal Caribbean only pays a fraction of what they expect to profit off the project. How will Royal Caribbean guarantee that money is reinvested in the Bahamian people whose Crown Land they are profiting off of?

“The answer is simple – they can’t. We have seen Royal Caribbean take advantage of Bahamians with the promise of opportunities for everyone and then fail to deliver before.”

The group also questioned how the Royal Beach Club will impact downtown Nassau and other businesses that rely on the cruise industry.

“Will a beach club on Paradise Island only divert cruise passenger spend into the hands of Royal Caribbean and away from downtown shops, vendors

IMF: 12% VAT RATE ‘LOWEST IN CARIBBEAN’ FROM PAGE ONE

the system of ‘zero ratings’ and exemptions.

It gave 15 percent as an “example”, seemingly selecting that number on the basis that this was the Caribbean region’s average VAT rate. The Fund suggested that raising VAT to 15 percent would generate extra revenue equivalent to 1.7 percent of gross domestic product (GDP) - around $170m to $180m per annum.

And the IMF also said VAT’s efficiency, under a regime set to be replaced in the New Year with a broad-based, lower 10 percent rate, was “in line” with tourism-dependent peers The Bahamas is typically compared to. It added that the tax breaks afforded to so-called ‘breadbasket’ food items and medicines could be reviewed once the COVID-19 pandemic eased.

“Raising the VAT rate, for example, to the regional average of 15 percent is estimated to increase revenue by up to 1.7 percent of GDP,” the IMF said in an excerpt of its report seen

by Tribune Business. “The current VAT rate of 12 percent in The Bahamas is the lowest in the Caribbean, and on the lower end of comparator countries.

“The efficiency of the VAT in The Bahamas is generally in line with peers that are highly reliant on tourism. Still, zero rates and exempted items can be reviewed post-pandemic. Their estimated tax expenditure is about 1 percent of GDP.” The IMF, while appearing in that excerpt to suggest that The Bahamas had scope to increase the VAT rate further, does not appear to have given a set-in-stone recommendation that the country must implement a rate hike to 15 percent if the structure implemented by the Minnis administration was to be sustained.

While the section seen by this newspaper raises questions as to whether the Davis administration placed the IMF report’s findings in context, and properly represented them when accusing its predecessor of planning a VAT hike to 15 percent if it won reelection, this is impossible to properly judge as neither side has released the full document despite this newspaper’s requests.

Both possess the IMF report, and Michael Pintard, the Opposition’s leader, read out wordfor-word in the House of Assembly the same section detailed today by Tribune Business. However, he did not take the bait offered by government MPs, who challenged him to lay the full IMF report in Parliament.

Mr Pintard argued that the Ministry of Finance already has a copy.

Still, the IMF report was again yesterday used as a stick with which to beat the former Minnis administration. Ryan Pinder, the attorney general, alleged ex-prime minister, Dr Hubert Minnis, assertion that he had not seen the document showed he was

“not fit for the job” of leading The Bahamas.

He argued that the former Minnis administration held a snap election because it was not prepared to take on the tax increase recommended by the IMF without getting a fresh mandate from the electorate. This was despite the former prime minister’s denials that a 15 percent VAT rate was ever planned.

“The way they managed the VAT administration of this country would have resulted in having to raise the rate again to 15 percent,” Mr Pinder said.

“The former Prime Minister commissioned a report from the IMF to study the VAT regime of this country in response to how they were managing it with multiple exemptions and multiples in the zero-rating category. That IMF report came back with a recommendation to raise the rate to 15 percent.”

The IMF’s actual thinking emerged as Senator Michael Halkitis, minister of economic affairs, told the Senate during the supplemental Budget debate that VAT’s collections/compliance efficiency had dropped from 99 percent, when the rate was at 7.5 percent with few exemptions, to 84 percent in 2018-2019 once it rose to 12 percent with multiple zero ratings and tax breaks.

Pointing out that revenue collected had only risen by 28 percent, despite the rate being hiked by 60 percent, Mr Halkitis said the Government had not “got the full effect” of the increase.

“We are on the right track,”

he added of the reversion to a lower rate, broad-based model.

“According to detailed studies conducted by the University of The Bahamas (UB) and the Ministry of Finance, the reduction of VAT from 12 percent to 10 percent, alongside a permanent elimination of zero-rated categories, will allow the Government to provide immediate tax relief, induce minimal contraction in GDP estimates over the medium term, and is likely to improve tax revenue collection by 2.3 percent by 2024.”

Arguing that the VAT rate cut will “have a positive effect” on consumer spending and savings, Mr Halkitis argued that the Minnis administration

increased the rate to 12 percent to help pay for the zero ratings and exemptions imposed on breadbasket food items and medicines.

He added that the VAT breaks on food such as rice, for example, had benefited hotels, restaurants and high income earners - those who did not need the benefit of a tax cut - as well as the low income families it was designed to assist.

“In order to have the VAT free items, the rate on everything else must be higher,” Mr Halkitis said.

“Our view, supported by research, is that it is better, more effective, to have a lower rate with minimal exemptions, and for those vulnerable in society they be given direct cash assistance.

So, in seeking to give relief to lower income households by making an item VAT free, you are giving that that same relief to higher income households and businesses that do not need or want the relief. The best policy is to keep a flat, low rate, and provide direct assistance to the most vulnerable.”

He was challenged by Darren Henfield, former foreign affairs minister and leader of Opposition business in the Senate, who argued it was “patently

and onshore excursion operators?” it asked.

“Our nation’s hair braiders, straw market vendors, artisans, musicians, taxi cab drivers, tour operators and other tourism-related entrepreneurs should be concerned about what access to tourists did the Minnis administration secure for them with the Royal Caribbean deal.

“Will access to the Royal Beach Club be for a chosen few or for all who seek to pursue the Bahamian dream of being a self-sufficient, productive member of society? And if Bahamians are allowed to participate, will the burden of costs of carrying thousands or even millions of dollars in insurance in order to be able to offer their services to cruise line passengers be feasible for the average business owner?”

unfair” to suggest the former administration hiked the VAT rate to 12 percent to afford zero ratings for the likes of grits, flour and rice.

The Minnis administration said at the time that the VAT hike was necessary to pay-off $360m in arrears and bills for which no funding was allocated. However, Mr Halkitis argued that the broad-based rate cut to 10 percent will reduce taxes and costs on a much wider range of items than those previously enjoying zero ratings, thus resulting in net benefits and savings to consumers.

NOTICE

REJUVE HOLDINGS LIMITED N O T I C E IS HEREBY GIVEN as follows: (a) REJUVE HOLDINGS LIMITED in voluntary dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000. (b) The dissolution of the said company commenced on the 2nd December, 2021 when the Articles of Dissolution were submitted to and registered by the Registrar General. (c) The Liquidator of the said company is Bukit Merah Limited, The Bahamas Financial Centre, Shirley & Charlotte Streets, P.O. Box N-3023, Nassau, Bahamas Dated this 6th day of December, A. D. 2021 ________________________________ Bukit Merah Limited Liquidator NOTICE

CADILLAC LIMITED N O T I C E IS HEREBY GIVEN as follows: (a) CADILLAC LIMITED is in voluntary dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000. (b) The dissolution of the said company commenced on the 2nd December, 2021 when the Articles of Dissolution were submitted to and registered by the Registrar General. (c) The Liquidator of the said company is CST Administration (Bahamas) Limited of The Bahamas Financial Centre, Shirley and Charlotte Streets, PO Box N-3023 Nassau, Bahamas.

Dated this 6th day of December, A. D. 2021 ________________________________ CST Administration (Bahamas) Limited Liquidator

NOTICE

EDDIE-JO MANAGEMENT LIMITED N O T I C E IS HEREBY GIVEN as follows: (a)

EDDIE-JO MANAGEMENT LIMITED is in voluntary dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000.

(b)

The dissolution of the said company commenced on the 2nd December, 2021 when the Articles of Dissolution were submitted to and registered by the Registrar General.

(c)

The Liquidator of the said company is CST Administration (Bahamas) Limited of the Bahamas Financial Centre, Shirley & Charlotte Streets, Nassau, Bahamas.

Dated this 6th day of December, A. D. 2021 ________________________________ CST Administration (Bahamas) Limited Liquidator

PAGE 6, Tuesday, December 7, 2021

THE TRIBUNE

GOV’TS 3% GROWTH TARGET BELOW UOB ‘HEALTH’ GOAL FROM PAGE ONE While Mr Halkitis’ target may be more realistic, and is still double the average annual economic expansion rate achieved in the years prior to COVID and Hurricane Dorian, it is also well below that called for by the University of The Bahamas’ (UoB) Public Policy Institute in a study commissioned by the Ministry of Finance.

The UoB study warned that The Bahamas needs to achieve an average 5 percent annual gross domestic product (GDP) growth rate over the next decade to return the Government’s finances and the economy to “a healthy state of affairs”.

To achieve this, it added that the country needed to attract “significant” investment in multiple industries at levels far higher than it has traditionally done so, while recommending that there be a major focus on renewable energy to reduce electricity costs and thus keep inflation under control.

It revealed that, based on an August 12, 2021, note from outgoing BPL chairman, Dr Donovan Moxey, the state-owned energy monopoly has estimated a $451m investment is required if it is to generate 33 percent of its energy from renewable sources by 2030.

“To reverse its current economic and fiscal trajectories, and achieve targets

that represent a healthy state of affairs for the country, The Bahamas must generate economic growth levels averaging about 5 percent over the next ten years,” the UoB study said, while conceding “that this has not been achieved previously but must be targeted moving forward.

“To achieve such high levels of growth, the country must attract significant direct investment over multiple economic sectors. Of the five economic sectors under review, the highest yields come from investments in the “transformation and trade” sectors while the largest impact on GDP comes from the tourism sector.

“Reducing inflationary pressures from high levels of investments that generate a significant number of jobs, and therefore tightens the job market, a significant investment in renewable energy is necessary to curtail price increases,” the report continued.

“To optimise the benefits of a growing economy to the country’s fiscal outcomes, reducing government tax expenditures, i.e.concessions, is necessary. And in alternative scenarios where there is no direct investment, increased dependency on non-renewable energy, and increases in tax expenditures occur, the economic and fiscal circumstances of the country deteriorate below the baseline.”

NOTICE NOTICE is hereby given that SHARANO SHAVON WILSON of Murphy Town, Abaco, The Bahamas, is applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 30th day of November, 2021 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

The International Monetary Fund (IMF) is currently projecting that The Bahamas’ post-COVID GDP growth will peak at 8.5 percent in 2022, following a modest 2 percent rebound in 2021.

Thereafter it will gradually decrease, having recovered much of what was lost in COVID with 4 percent and 3.5 percent growth in 2023 and 2024, respectively, before the country returns to its longrun average of 1.8 percent and 1.5 percent economic expansion in 2025 and 2026.

Meanwhile, Mr Halkitis pledged that the reconstituted Revenue Enhancement Unit (REU) will not “hound” struggling businesses and taxpayers unable to pay their debts and will focus on

higher-yielding delinquents who can afford to do so.

“To shore up revenue, the reestablishment of a fully resourced Revenue Enhancement Unit (REU), as established in our first term in office, will be supported by local and international management consultants and have as its goal increasing the tax base by minimising tax avoidance and fraud,” he said.

“Within a two-year period, it is expected that the unit would account for $200m over the five-year period in additional taxes or about 2 percent of GDP at the current levels. When fully up and running, this is a unit tasked with ensuring that what is owed to the Government is paid, and those who can afford to pay, do pay.

“It is not the intent of this unit to hound businesses and individuals who are still struggling.” The minister indicated that payment plans will be used to help collect tax arrears.

Mr Halkitis added that the Government is targeting a 25 percent revenue-toGDP target to ensure the Government is not “hamstrung in its ability to deliver services to the Bahamian people”. And it is also aiming for annual capital spending equivalent to 3.5 percent of GDP to help underpin economic growth, arguing that this has “fallen short” and “been lagging in the past”.

The minister also promised that the Government was “not abandoning” capital works projects, as might be indicated by its capital

NOTICE NOTICE is hereby given that NANA JOSEPH of, Firetrail Road Nassau, Bahamas, is applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 30th day of November, 2021 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

spending cuts in the supplementary Budget, but is instead realigning Budget allocations to when they will likely be executed. Those that cannot be executed this year have had their funding removed, and delayed to another fiscal period.

Asserting that The Bahamas was now seeing “some light at the end of the tunnel” with respect to its COVID recovery, Mr Halkitis said: “Signs point to an improving economy.

We remain cautiously optimistic that we have seen the worst of the pandemic, but we know that we must remain vigilant in our health precautions and disciplined in our fiscal management because as Omicron has shown us, we are not out of the woods as yet.... It’s not over.”

NOTICE NOTICE is hereby given that ROBENS ALTIDORT of, East Street North P.O.Box N9426 Nassau, Bahamas, is applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 30th day of November, 2021 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE NOTICE is hereby given that RALPH FRITZ AUGUSTE of Cambridge 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 twentyeight days from the 7th day of December, 2021 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE Pursuant to the provisions of Section 138(4), (a), (b) and (c) of The International Business Companies Act 2000, of The Commonwealth of The Bahamas, notice is hereby given that:(a) OXFORD BUSINESS CORP. is in dissolution; (b) The date of commencement of the dissolution is the 3rd day of December, 2021; and (c) The Liquidator is Michael J. Freeman of 153 Sevilla Avenue, Coral Gables, Florida 33134.

KING & CO. Attorneys for the above-named Company ________________________________________ Monique Cartwright

NOTICE Pursuant to the provisions of Section 138(4), (a), (b) and (c) of The International Business Companies Act 2000, of The Commonwealth of The Bahamas, notice is hereby given that:(a) JOTORAM CORPORATION HOLDINGS LTD. is in dissolution; (b)

The date of commencement of the dissolution is the 3rd day of December, 2021; and

(c) The Liquidator is Michael J. Freeman of 153 Sevilla Avenue, Coral Gables, Florida 33134.

KING & CO. Attorneys for the above-named Company ________________________________________ Monique Cartwright