12082023 BUSINESS

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FRIDAY, DECEMBER 8, 2023

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Yacht broker alarm on ‘dismal’ winter charters

GOV’T: WE HAVE MATURING $300M US BOND ‘COVERED’

* Say VAT’s imposition has brought sector to ‘standstill’ * ‘Hardly any bookings’ for mega yachts in peak season ahamian yacht brokers yesterday warned * Bahamian businesses bearing brunt of decline in trade

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

B

charter bookings for the peak winter season are “dismal” with the sector “almost at a standstill” due to VAT’s imposition and lack of clarity on how it works.

A Bahamas Yacht Brokers Association (BYBA)

spokesperson told Tribune Business the drastic fall-off is not only impacting themselves and local marinas, with the brunt of the impact being felt by small providers and

entrepreneurs who provide cleaning, maintenance and other services to visiting yachts. They added that high net worth clients, who “love The Bahamas and spend a lot of money”

when here, are now being lost to cheaper Caribbean territories following VAT’s imposition on foreignowned yacht charter fees with the the 2022-2023 Budget’s passage. And,

besides the loss of price competitiveness, the Association spokesperson said a further deterrent to coming to The Bahamas is the lack

SEE PAGE B4

Gov’t wage bill’s $68m jump ‘not annual norm’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Ministry of Finance’s top official last night said the $68m yearover-year increase in compensation for government employees during the 2022-2023 fiscal year is “not an annual norm”.

Simon Wilson, the financial secretary, told Tribune Business that the 9.2 percent rise to $805.2m over the 12 months to end-June 2023 will “taper off over a period of time” as the multiple industrial agreements signed with various public sector unions typically “front load” improved compensation such as lump-sum payments.

With “close to 90 percent” of public sector industrial deals now completed, he added that the wage, benefits and

compensation agreed had been “kept within the fiscal framework” set by the Government as it sought to balance prudence and meeting Budget targets with maintaining productivity and morale.

Mr Wilson spoke out after the Ministry of Finance’s fourth quarter and full-year 2022-2023 fiscal report, unveiled yesterday, highlighted the impact of the multiple industrial agreement signings on the Government’s wage bill.

“Compensation of employees increased by $68m (9.2 percent) to $805.2m and represented 97.3 percent of the budget target,” the report said.

“The increase in the public sector wage bill reflects staff promotions, salary adjustments and additional hires for staffing needs in new and existing

WATER CORP MUST PAY FOR MANGROVE CAY ‘TRESPASS’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Water & Sewerage Corporation has been ordered to pay damages for trespass after it installed key network infrastructure for supplying Mangrove Cay on property which it did not own.

The Court of Appeal, in a unanimous verdict that overturned the initial Supreme Court ruling, said the loss-making water utility must pay extra monetary damages in return for not facing “a mandatory injunction to forthwith remove the water tank and

related apparatus” from the Andros property owned by Carla Braynen-Turnquest.

This penalty was imposed because the Court of Appeal recognised the hardship that could befall local residents if the Water & Sewerage Corporation was ordered to vacate, since its trespassing equipment “is also providing an essential service (water) to Mangrove Cay”.

Appeal justice Indra Charles, in a 28-page written ruling, did not specify the amount of damages to be awarded Ms BraynenTurnquest and instead

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PROMOTION BOARD PRESIDENT URGES 30% STOPOVER FOCUS

By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net THE Bahamas Out Island Promotions Board president yesterday urged the nation to near-double the proportion of stopover visitors that make up its tourism base to 30 percent.

Emanuel Alexiou told the Board’s annual general meeting (AGM) that The Bahamas needs to grow its stopover visitors, who currently account for only 18.5 percent of total tourists, because they spend significantly more per capita and

have a far greater economic impact.

He said: “Cruise visitors only spend approximately $84 per landed visitor but, at last count, made up at 81.5percent of our visits.

Air stopovers, who spend $2,700 per visit, accounted for only 18.5 percent of our business.

“If generating foreign currency expenditure is one of the true goals of Bahamas tourism, then the challenge for us in 2024 is the growth of our cruise visitors to air stopover ratio, changing it to at least 80/20

SEE PAGE B5

SIMON WILSON government ministries and agencies.”

The financial secretary, though, told this newspaper that the magnitude of the 2022-2023 increase is unlikely to be repeated moving forward. “That’s not an annual norm,” Mr Wilson said of the $68m

increase. “It’s because of the industrial agreements.

You front load a lot of payments in the industrial agreements, and arrears and the level of increase.

“The payments are frontloaded so they’re going to taper off over a period of time. Most of those agreements are three-year agreements. I would say we have completed close to 90 percent of it, and have to look forward to the next negotiating window. We have to just keep pushing forward.”

Asked whether the industrial agreement increases had been kept within reasonable limits, given the Government’s fiscal constraints, Mr Wilson replied: “Yes, yes, yes. We were able to keep them within the fiscal framework.

We feel comfortable with the agreements that have

been agreed; that they are affordable and fair. Affordable to us and fair to the employees.”

Elsewhere, the Ministry of Finance report affirmed that near-$500m, or half a billion dollars, in COVID19 related spending continues to wither. Just $12.3m of such expenditure, largely representing healthcare spending and small business loans, was incurred during 2022-2023, taking the total to $467.3m.

Mr Wilson confirmed that COVID-related spending in 2023-2024 will be “very, very minimal” if any.

The 2022-2023 fourth quarter and full-year report affirmed that the Government’s recurrent, or fixed cost, spending on the likes of wages and rents was held largely flat against the prior year in line with its overall

SEE PAGE B6

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Government is “very confident that we have covered” the $300m external US dollar bond due to mature in mid-January 2024, its top finance official said last night.

Simon Wilson, the Ministry of Finance’s financial secretary, told Tribune Business that funding has already been set aside to cover the payout that is coming due. He indicated that the $300m will be partially redeemed, and another portion rolled over or refinanced.

“The plan is that we have put aside the funding for that,” he said. “We feel very confident that we have that covered. We feel very confident, and that will be managed accordingly.”

Mr Wilson spoke after the Ministry of Finance’s report for the 2022-2023 fourth quarter and full-year, released yesterday, disclosed that the Government has made good on its pledge to finance the so-called ‘sinking funds’ created to accumulate monies for the redemption of The Bahamas’ foreign currency debt with collected tax arrears.

A fourth such fund has been set-up using monies obtained from delinquent taxpayers.

“During the quarter, contributions made to the ‘sinking funds’ established to retire future debt

SEE PAGE B5

THE TRIBUNE

Friday, December 8, 2023, PAGE 3

Young entrepreneurs to require these qualities YOUNG entrepreneurs do not necessarily have a lot of work experience - either because they just graduated from college, or entered the job market for the first time and want to start a new business venture. The encouragement they often receive is to get a job and work towards gaining experience that will later inform their entrepreneurial pursuits. The truth is that an early start on the road to enterprise can also prove beneficial to youth in business.

Youth brings with it a organic vigour and passion that bodes well for starting a business. You can stay motivated as a young entrepreneur by choosing an area that you are passionate on and researching your industry to learn as much about it as possible.

In the absence of years

of experience, a young entrepreneur can enjoy greater success by creating a realistic business plan with measurable goals and building a network of mentors and investors that will help them navigate the sometimes treacherous waters that start-ups encounter.

This week, our column focuses on helping teenagers and young people get off to a solid start as entrepreneurs by providing the tips they need to start their enterprise.

1. Find your passion The most successful start-ups are founded by people passionate about what they do. Focus on something you truly love.

You will be more focused and motivated.

2. Know your market Failing to understand your market is one of the

IAN FERGUSON top reasons new businesses fail. If you want any chance of success, you must thoroughly research your target market before launching your business.

3. Get your finances in order

Whether you go looking for angel investors, secure loan funding through the traditional lending institutions or self-finance, you should do everything possible to improve your financial situation. Start drafting your financial plan as early as possible and minimise the debt you encounter in your personal life.

4. Prepare to make sacrifices There is no such thing as an overnight success. Even the multi-million dollar start-ups that seem to pop up out of nowhere were the result of countless hours of hard work before they started making headlines.

Becoming a successful entrepreneur requires an intense level of dedication to your dream, and this means sacrificing time and money to make it happen.

5. Find a mentor Running a business requires a wide range of skills and expertise you likely have not mastered yet. You should not try to make challenging business decisions on your own. Because of this, finding a mentor is one of the most crucial things a young entrepreneur can do.

6. Tune up your business knowledge You may be passionate about your big idea, but creative energy is not enough.

Successful businesses require more than an innovative product. They need a competent team to manage finances, operations, manufacturing, marketing and all the other things that go into producing and selling a product.

Take time to improve your business IQ.

7. Take action Planning is necessary, but making those plans a reality is at the heart of entrepreneurship. Being a business owner means taking risks even when there is uncertainty. Even when your business gets going, you will need to continually scan for new growth opportunities and challenges, and take action to come out on top. Do not let a roadblock stop your stride.

UÊ \Ê > Ê ,Ê iÀ}ÕÃ Ê ÃÊ a talent management and organisational development consultant, having completed graduate studies with regional and international universities. He has served organisations, both locally and globally, providing relevant solutions to their business growth and development issues. He may be contacted at tcconsultants@ coralwave.com.

Water Corp must pay for Mangrove Cay ‘trespass’ FROM PAGE B1 ordered that this be determined by the Supreme Court registrar. Besides declaring that the Water & Sewerage Corporation “has no right, title or interest”, or right to occupy, the disputed property, it must pay damages “for each year of” its “unlawful use and occupation”.

That time period dates back at least 14 years, as the Court of Appeal judgment noted that Ms Braynen-Turnquest first became aware of the Water & Sewerage Corporation’s presence in 2009 when she inherited the property from her deceased father, Carl A. Braynen. However, the state-owned water supplier had previously provided evidence to the Supreme Court showing its tanks had occupied the site since 1983.

Ms Braynen-Turnquest had sought $1.227m in damages at the Supreme Court level, but Justice Diane Stewart, in a December 2, 2022, verdict found that the Water & Sewerage Corporation had established possessory title to the land.

She also ruled that Ms Braynen-Turnquest did not have documentary title to the property given the multiple “inaccuracies” in the paper trail.

However, the Court of Appeal overturned this verdict, finding that Ms Braynen-Turnquest had been held “to too high a standard”. The Supreme Court’s determination that she had to prove good and marketable title to the land was unnecessary in an action for trespass, as “her documentary title is superior to the respondent’s alleged possessory title”.

Detailing the background to the dispute, the Court of Appeal said Ms BraynenTurnquest’s father had told her he “owned the said acreage which he wanted to develop. Before they could visit the land, Carl died.

“After her father’s death, the appellant, through her company Mangrove Properties Ltd, hired a land

surveyor, Emile Ledee, and his company Bahama Geomatics between the years 2009 to 2011 to conduct a survey of the property,” Justice Indra Charles wrote.

“Mr Ledee prepared a survey plan and registered the plan with the Department of Lands and Surveys as Plan 600 AN. Its accuracy was confirmed by the learned judge. Mr Ledee advised the appellant that during his surveying of the property he discovered the presence of the respondent’s water holding tanks, pipes, fencing and related apparatus which occupied 15,192 square feet of the property.

“The respondent had also created an access road known as ‘Wellfield Road’ on the property for the purpose of ingress and egress to and from the tanks.”

This sparked Ms BraynenTurnquest’s complaint over the Water & Sewerage Corporation’s alleged “unauthorised use” of, and presence on, her land, and triggered a more than six-year back and forth between the two sides in an ultimately futile effort at resolution.

Ms Braynen-Turnquest first wrote to then-Water & Sewerage Corporation general manager, Glen Laville, on November 6, 2012, to assert her ownership and demand compensation for trespass and unauthorised use of her property. She also “offered to lease or sell a portion of the property to the respondent so that their operations may continue uninterrupted”.

Mr Laville responded by saying the Water & Sewerage Corporation would need time to investigate the land’s title and, after a further exchange of correspondence in early 2013, “there was a long hiatus” of just over three years before contacts resumed.

Mr Laville, via an April 22, 2016, letter confirmed that the utility was occupying 15,200 square feet, or just over one-third of an acre, but traced its title back to a Crown grant. He

also demanded that Ms Braynen-Turnquest provide proof of ownership.

“After receiving offers from the respondent, and having the property appraised at $44,000, the appellant offered by letter dated November 15, 2017, to lease the occupied portion of the property to the respondent for $4,000 per month and to accept mesne profits for the past unauthorised occupancy and usage at $4,000 monthly by a lump sum payment,” the Court of Appeal added.

The Water & Sewerage Corporation then invited Ms Braynen-Turnquest to submit an invoice for “partial settlement of claim”, and paid $20,000 via a May 25, 2018, cheque. However, Dywan Rodgers, the Meridian Law Chambers attorney acting for the Water & Sewerage Corporation, then said his law firm had conducted a title search and there was nothing to prove her ownership.

He demanded repayment of the $20,000 cheque, triggering the legal dispute that the Bahamian judicial system has to resolve. The Court of Appeal noted that, in a trespass claim, the plaintiff only has to show it has a better and stronger title to the disputed property than the defendant.

And it ruled the Supreme Court was mistaken to find Ms Braynen-Turnquest had to “prove a good and marketable documentary title” under the Conveyancing and Law of Property Act, finding this wholly unnecessary to resolve a trespass claim.

“What the respondent [Water & Sewerage Corporation] alleges is that it has a possessory title having been on the property since 1978, and has occupied it undisturbed, visibly and openly,” appeal justice Charles wrote.

“In our judgment, and based on sound legal principles, any documentary title put forth by the appellant (even with defects) was a better title than the respondent’s title.

“In our opinion, the learned judge erred in law by holding the appellant to too high a standard under section 3(4) of the Conveyancing and Law of Property Act in circumstances where there is no such requirement on an appellant relative to a claim in trespass since her documentary title is superior to the respondent’s alleged possessory title.”

And “it matters not that her title may not have been perfect.

The Court of Appeal also found that the Supreme Court was mistaken in relying on a 1983 Ministry of Works memorandum as the basis for the Water &

Sewerage Corporation’s possessory title.

“The respondent’s constant offers to purchase or lease the property (pending verification of the true owner), and the payment of the $20,000, could never be indicative of an intention by the respondent to exclude the true owner and the world from the property,” it added.

“The respondent was attempting to confirm who the owner of the property was so that it could rightfully pay the owner for its use and was not asserting ownership or title to the property. As we see it, the respondent lacked the necessary intention to possess

the property in its own name and on its own behalf to exclude the world at large, including the owner with the paper title.

“Thus, the finding by the learned judge that the respondent had a possessory title (if she so found) is plainly wrong.”

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THE TRIBUNE

FAMILY ISLAND RESORTS EYE RENEWABLE ENERGY PLANS

By FAY SIMMONS Tribune Business Reporter jsimmons@tibunemedia.net FAMILY Island resorts were yesterday introduced to an initiative designed to lower the upfront cost of renewable energy investments and make them more affordable.

Fidel Neverson, senior project manager at the Rocky Mountain Institute, acknowedged to the Bahamas Out Island Promotion Board’s annual general meeting (AGM) that solar installations costing up to an initial $300,000 were likely deterring small hotel properties from embracing renewable energy.

To counter this, the Institute is proposing an initiative where - rather than the resorts themselves incurring the upfront investment cost - this will be borne by the energy services provider doing the installation. The hotels would then reimburse the provider via a monthly fee.

Mr Neverson said: “The programme that we are proposing to you, and is

actually being proposed to all hotels within The Bahamas, is what we call our solar energy savings programme. And this is where you will be able to subscribe to the programme, and as a member of the programme have these types of clean energy systems installed at your establishment to help you to reduce your electricity costs and become more sustainable.

“With the solar energy savings programme, what we’re trying to do is provide you with a solution that has no upfront cost and that, rather than you having to make investment yourself, we would get an energy services provider to make those investments, do the installation of those technologies at your establishment, and you will essentially be paying them at the base cost for the solution.”

Mr Neverson explained that the energy service provider will charge a monthly fee for the energy consumed similar to current Bahamas Power & Light (BPL) payments, but resorts will not have

to make the initial large investment into renewable infrastructure.

He added: “So basically the monthly fee will be paid to the energy services provider. They will do, in addition to the installation, all of the operation and maintenance of the system.

Therefore you are going to be paying a monthly fee in the same way that you will pay your electricity bill, as opposed to having to pay for that large upfront investment cost in order to get the system installed at your property.”

Mr Neverson said Family Island resorts have been quoted up to $300,000 for the installation of renewable energy systems that would cover their needs.

He added that these high costs exceed the budgets of many small resorts, while traditional lending institutions do not offer special interest rates to assist businesses in making the switch.

He said: “There are a lot of advantages to going to clean renewable energy, but there are also a lot of impediments. For those of you who may have

investigated this already, it is the high upfront costs.

So there’s a high investment cost.

“Based on what I’ve seen from information received from some of your hotels, you will probably need an installation costing between $20,000 and upwards to $300,000 if you want to make a significant dent in your electricity costs, so there is a high investment cost related to it. “Also, there could be unattractive financing options. You know, in my experiences, banks don’t tend to offer any special types of loans with lower rates that would allow you to invest in these types of solutions.

“And, you know, some of you may find the regulatory environment a little complex to navigate. So, you know, with these types of stuff, you know, you may shy away from it.”

Mr Neverson said energy costs on the Family Islands can be up to four times’ higher than those on the nearby Florida Cays, driving up their operational costs and making it “difficult to compete”.

He said: “We recognise that Caribbean hotels, including the hotels in the Family Islands, electricity cost is a major component of your operational costs.

If you just compare yourself to hotels in the Florida Cays, what you pay in terms of your electricity rate on the Out Islands is about four times what they would pay in Florida.

“So it makes it difficult to compete when you have such a major differential in costs.” Mr Neverson added that many Family Island hotels face energy shortages and have to rely on diesel generators, creating more costs and burning fossil fuels.

He said: “On small islands, just like on the outer islands, power quality is also a problem, and reliability of your power supply is also a problem.

Many of the hotels and Family Islands have to use diesel generators to produce either their own power full-time or for backup purposes and, of course, that’s a very noisy polluting proposition and also very expensive.

“So our idea is to help you to transition away from this 100 percent use of fossil fuels for your energy needs towards using clean energy to help support supplement those needs.”

Mr Neverson said the programme must have a number of hotels involved to work successfully, and that it can be way to reduce energy costs, improve reliability and be more environmentally sustainable.

He said: “What we’re trying to do is to help you to invest in these solutions so that you can reduce your energy costs, you can produce your energy more safely, you’re producing energy in a more sustainable, environmentally friendly way and, of course, in a more reliable way.

“What is very important in making this work, though, is aggregation. We need not just one or two hotels. We need a number of hotels involved. And that’s how we’re able to bring the cost down for everyone. By taking advantages of economies of scale.”

Yacht broker alarm on ‘dismal’ winter charters of certainty surrounding FROM PAGE B1 VAT

treatment

and

its

application to the industry, as well as perceived inefficiencies with the payment, filing and collection process.

Echoing concerns voiced previously by the Association of Bahamas Marinas (ABM), they also queried the status of the $3.355m contract awarded by the Government to DigieSoft Technologies for the development of an online portal to capture the 4 percent Port Department fee due on foreign yacht charters.

The Yacht Brokers Association spokesperson said that, apart from unresolved questions over the exact nature of services that the DigieSoft portal will provide, many in the industry are reluctant to work with the company given that there is no information about the firm, its principals and past work performed in the “open domain “ via the Internet.

Urging the Davis administration to consider either eliminating the Port Department fee or reduce the VAT rate in foreignowned yacht charters, they added that should it elect to do neither it at least must end “the duality of payments” with the two fees - equating to a combined 14 percent of the charter contract value - being paid to different agencies via separate processes.

“The first thing that I can truly tell you, without providing empirical data, is I can advise that from the second the VAT tax was introduced we’ve seen

dismal bookings on yachts over 120 feet in length, which we consider to be super yachts. That’s the market that really benefits the country with services such as cleaning and provisioning,” the Yacht Brokers Association spokesperson told Tribune Business.

“It’s actually been a dismal amount of charters contracted in country.

There were summers in the past before VAT was introduced where we would see some bookings; it’s not as busy as winter, but summer of this year was almost at a standstill.”

As a result, small businesses and entrepreneurs providing services to socalled super yachts and giga yachts, the latter defined as vessels more than 200 feet in length, either “had to stop their business entirely or pivot” to the domestic economy.

The Yacht Brokers Association spokesperson said this effectively meant service providers had to switch from “cleaning boats to now cleaning cars”, with the “return on investment not as great” as that available in the high-margin mega yacht segment.

“We’re now in the winter season, which is predominantly the busiest season,” they added. “We’ve seen it pick up a little bit, but nowhere close to prior years - that’s pre-COVID and post-COVID. The vast majority of the season is dismal for the charter business in the super yacht sector.

“I have access to the MLS (multiple listing system) when it comes to

yacht charters in-country for the super yachts and the giga yachts. You can see it’s dismal with bookings from December 8 going into April 30, 2024. Out of 100-200 yachts listed as Bahamas yachts, there are hardly any bookings for those yachts. There’s hardly any bookings on yachts of that size. It’s very dismal.”

The Government’s decision to impose 10 percent VAT on foreign-owned yacht charter contracts in the 2022-2023 Budget effectively more than tripled the sector’s tax rate from 4 percent to 14 percent when the already-existing Port Department fee was added in.

The Yacht Brokers Association spokesperson said industry feedback, including from international broker counterparts, all suggested that VAT’s imposition had made The Bahamas uncompetitive on price and is “affecting the booking of charters within the country”.

And, besides the cost impact, they also repeated concerns voiced by AB members that, contrary to other major boating jurisdictions, in The Bahamas foreign yacht charters are unable to offset or ‘net off’ the VAT incurred on their in-country supplies purchases against the 10 percent levy paid to the Government on the charter fee.

“The international community is used to paying VAT,” the Yacht Brokers Association spokesperson said. “They don’t want to be bothered with The Bahamas at the moment

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because the VAT process is really confusing. The process of filing VAT and claiming VAT back is very complicated for persons in the industry.”

Michael Halkitis, minister of economic affairs, had previously justified VAT’s imposition by arguing that the foreign yacht charter industry had for years “enjoyed a windfall at The Bahamas’ expense” by using this country’s marine environment and natural resources to earn millions of dollars without paying its fair share to the Public Treasury.

Revealing that they have personally encountered such concerns in dealing with high net customers, they added: “I had a conversation a few months back with a potential client of The Bahamas.

He booked a charter last year, and wanted to do it again. He was also open to chartering in the Leeward Islands.

“I sent him quotes for the Bahamas and the Caribbean. As soon as I sent those quotes, his executive assistant came back to me saying: ‘I see a new charge on Bahamas charter fees of 10 percent VAT’. After explaining that it was introduced earlier and had to be paid, they asked: ‘What changed in The Bahamas to make that justifiable?’

“Then she looked at The Bahamas and Caribbean comparison, and made the assumption that I’d left out the VAT and Port fee for the Caribbean. When I explained I had not, she said: ‘Oh. That’s a much easier sell for the Caribbean’. It’s a much harder sell for The Bahamas,” the spokesperson added.

“If they love The Bahamas they will pay the 14 percent. If they want to travel and spend time on a yacht, location is not a

concern for them. Area and proximity does not affect them because they have access to private jets.... I had that conversation with a very affluent client. He spends a lot of money when he’s here and I think we have lost him to the Caribbean market.

“We definitely need some exposure in this regard because business has been dismal. We had a good industry, it was growing tremendously and it came to a standstill. We need some resolution.”

If the Government still elects to keep both VAT and the Port Department fee, the spokesperson said the industry needs one portal or location where it can pay both to boost the ease of doing business and efficiency.

Also calling for “more cohesion”, and the Government and private sector to work together on issues affecting the yachting/boating sector, they added: “We understand that persons should be taxed to a certain extent, and we understand other businesses are being taxed with respect to VAT. At the same time, this business brings additional revenue into the country. It is a financial driver....

“We just want persons on the outside to know that although the industry needs to be taxed a certain way, we don’t want to destroy the business and still bring in enough business to be a substantial driver. But right now we are at a standstill.”

The Yacht Brokers Association spokesperson also voiced concern that the DigieSoft portal, through which foreign-owned yacht charters were to pay their 4 percent Port Department fees, has yet to become operational despite moves to seemingly mobilise the contract from February this year.

“Nothing is listed on that particular entity,” they said of DigieSoft. “We don’t see any reviews of the work they’ve done, engagements they’ve done or intend to provide, so we’re reluctant to work with that company because we don’t know their work. There’s nothing listed with respect to DigieSoft in open domain.

That has us in a bit of awe.”

The Bahamas Yacht Brokers Association, in a statement yesterday on VAT’s impact on the sector, said: “Our research on the local market has found that the impact has been severe, driving a large percentage of international yacht business to other, more affordable destinations in the region.

“The recently-enacted VAT charge on yacht charters has been touted as a beneficial Bahamas policy as VAT is only charged on foreign-owned yachts.

However, the reality is this VAT policy has affected our Bahamian professionals the most, as many professionals who clean, service, provision or otherwise earn a living from charter yachts have seen a huge drop in business.

“Some may be forced to leave what was, until recently, a very lucrative industry for them. Many successive governments had great opportunities in the past to truly improve, revamp and to restructure the entire yachting business.

However, there have only been legislative changes that have affected the fee structure or the taxes to the industry - including the VAT taxes that are currently enforced on yacht charters that are booked out of country. This tax was also only implemented to charter yachts, and not to cruise ships or flight services which are also booked out-of-country.”

THE TRIBUNE

Friday, December 8, 2023, PAGE 5

FAMILY ISLAND LOCATIONS ‘BLOWING IT OUT THE WATER’

By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net A SENIOR tourism official yesterday said several Family Island destinations have been “blowing it out of the water” as the Government seeks to drive increased airlift to the destination.

Dr Kenneth Romer, the Ministry of Tourism’s director-general and director of aviation, told the Bahamas Out Island Promotion Board’s annual general meeting (AGM) that most locations are “holding their own” with positive numbers this year. Abaco’s overall arrivals are 32 percent

ahead of 2022 for the yearto-date, and 7.5 percent up on 2019 to signal the continued positive rebound after Hurricane Dorian. “When we look at the tourism performance, the outer islands are holding their own. We have seen positive growth and trends in all of our Family Islands,” Dr Romer said.

“You’ll be very pleased to know that, at the end of this cycle to October, Abaco is about 17 percent below what you saw in the best year ever. That is exceptional news. That’s your air arrivals. The overall arrivals on Abaco are 7.5 percent ahead 2019, and 32 percent ahead of last year. So good news for Abaco.”

Dr Romer added: “Andros has been just blowing it out of the water in terms of performance.

We have the Berry’s and Bimini still trending a tad bit behind for air arrivals, but for overall arrivals, we’re so proud.

“Cat Island is trending ahead, Eleuthera is trending ahead, Exuma is trending ahead. We see Long Island, Mayaguana, all of our islands are trending ahead, so the Family Islands are doing a phenomenal job.”

Dr Romer said airlift into the Family Islands is being expanded with new routes into Long Island, Eleuthera and Abaco. “In just a week we’re going to have historic

airlift into Stella Maris, Long Island, North Long Island. They’ve been crying out for that,” he added.

“We’re going to add additional seats into Marsh Harbour through JSX air carrier. American Airlines in February is adding a new service into Governor’s Harbour, Eleuthera.

“Western Air is adding additional seats into North Eleuthera, and so we are really committed to addressing the state of our Family Islands in terms of the airlift and also, at the same time, address Family Island infrastructure.”

Dr Romer added that Family Islands can often “get lost” as the majority of visitors arrive to New

Providence. However, airlift into the Family Islands is being diversified through helicopter and seaplane services, providing the Out Islands with a unique experience.

He said: “We were very, very pleased with the performance of our Family Islands. Sometimes the Family Islands could get lost because we have the greater number of stopover arrivals coming into Nassau.

“In July of this year we launched the first-ever Bahamas National Aviation strategic plan, and a strong component of that speaks to how we must diversify Family Island airlift. We are diversifying airlift to

the Family Islands through arrivals by seaplane and also helicopter.”

“The product is somewhat different, again from Nassau and Paradise Island, but then again, every airlift and passenger arriving to our Family Islands directly contributes in a very sustainable way to that economy,” Dr Romer added.

“We’re giving a lot of our support to Family Island airlift. Airlift speaks, again, to butts in your seats. It translates into heads in beds, and heads in beds translating into money in the pockets of our local entrepreneurs and stakeholders.”

GOV’T: WE HAVE MATURING $300M US BOND ‘COVERED’ FROM PAGE B1

a deal due to mature in February 2024, represent US Treasury bonds previously held in government-established ‘sinking funds’.

Mr Wilson, meanwhile, confirmed that the fourth and latest ‘sinking fund’ was created with proceeds from collected tax arrears towards the end of the 2022-2023 fiscal year. The move came in a year when the Government largely met its fiscal projections, with revenues, spending and the overall GFS fiscal deficit coming in very close to Budget targets.

“Revenue collection for the year totalled $2.856bn, surpassing the prior year by $246.5 m(9.4 percent), and equating to 99.9 percent of the Budget,” the Ministry of Finance report said. “Tax revenue receipts grew $312m (14.4 percent) to $2.474bn, accounting for 97.5 percent of the Budget.

“Strengthened collections

were noted in VAT, departure tax, excise duties and stamp taxes on financial and realty transactions. Conversely, non-tax revenue declined by $66.4m (14.9 percent) to $380.4m but exceeded the Budget target by 19.8 percent. The yearover-year decrease is partly explained by the impact of extraordinary payments in the prior year....

“For the review year, the Government experienced an overall deficit of $533.4m, which represented a decrease of $184m (25.6 percent) from the prior fiscal year. This fiscal deficit accounted for 92.7 percent of the annual Budget target.”

“We were pretty much on target,” Mr Wilson told Tribune Business. “We had a good year. But you are only as good as yesterday. We have to keep pushing. The focus is on now. Nobody is

going to give you any prizes for that. There are no prizes for that. We just have to keep pushing forward.”

The Ministry of Finance report made no mention of VAT revenues under-shooting their 2022-2023 forecast by $160m, instead focusing on comparisons with last year. Similarly, while government revenues and the deficit beat the original and December 2022 forecasts, they missed the revised targets unveiled when the 2023-2024 Budget was presented in May. While Tribune Business has already reported that the full-year deficit of $533m slightly exceeded the revised $520.6m, the Government’s $2.856bn in revenues also came in around $50m below the $2.909bn detailed in the May Budget book.

Driven by the postCOVID tourism rebound and recovering consumer

demand, the Ministry of Finance report said of the Bahamian economy’s performance: “Travel demand from major source markets remained strong, with arrivals totaling nine million for the 12 months to June 2023, representing a 91.3 percent gain over the corresponding period a year earlier and surpassing the 2019 comparison by 26.8 percent.

“Alongside these results, the local short-term home rental market had occupancy of 64 percent at end June 2023, a 10.5 percent improvement when compared to the prior year.

These favourable outturns in economic activity translated into improvement in employment conditions, with the jobless rate lower at 8.8 percent in May 2023 after surging to 25.9 percent in 2021 and below the 9.5 percent recorded in May 2019.”

Turning to the 2022-2024 revenue performance, the Ministry of Finance report said: “Taxes on specific services (gaming taxes), which totalled $63.9m, were $12.6m (24.5 percent) above the prior year and an elevated 121.2 percent of the Budget....

“Reflecting the strong gains in tourism activity and domestic demand, taxes on international trade and transactions improved by $163.7m (32 percent) to $675.4m compared to the prior year and exceeded the Budget projections by 9.6 percent.

“Excise and export duties increased by $75.9m (42.8 percent) to $253.5m or 94.1 percent of the budget target.

Departure taxes doubled to $172.2m, an increase of $87.3m (102.8 percent) and eclipsed the Budget target by 77.6 percent.”

STOPOVER

over eight million for 2023 there is still much work to improve business for Family Island tourism.

He added that customer service, operational costs and the ease of conducting business must improve on the Family Islands to “unveil new growth opportunities”.

“This past Monday, we announced eight million visitors to The Bahamas, but I would not be true to myself if I did not dive deeper into the way we do business and development,” Mr Alexiou said.

“Yes, it certainly is cause for celebration. But we still have much work to do, especially in the areas of improving customer experience, cutting business operational costs and eliminating some of the uncertain

friction of doing business in The Bahamas. And only by tracking the known challenges together, we begin to unveil the growth opportunities.”

Mr Alexiou said many Family Island operators have complained about the level of service provided by energy, telecommunications and water utilities, and face inadequate airlift due in part to the poor state of their airports.

He said: “We continue to have to and from the Family Islands, some via LPIA, especially for us southern islands, like Acklins, Crooked Island and Long Island, a need for improving general airlift. And also with the state of our Family Island airports our inability

to be more aggressive in soliciting new airlift.

“The increasing cost of safe reliable, sustainable and affordable electricity, reliable Internet on the Family Islands in an online world.

There is almost nothing to do any more without connectivity and Internet connectivity. The on again, off again water flows we experience on a frequent basis on the Family Islands, and the time it takes to complete an annual hotel licensing review process.”

He added that tourists have complained about the high cost of goods and ground transportation as well as slow service times and early closing times.

“The feedback we receive from visitors from around

the islands are the high cost of ground transportation.

It’s too expensive, service

establishments close too early and service time is too slow,” Mr Alexiou added.

obligations totaled $87.9m. Such contributions are inclusive of those made to a fourth ‘sinking fund’ recently established with proceeds from the collection of tax arrears,” the Ministry of Finance report said.

“At end-June 2023, the four arrangements earmarked for scheduled retirement of external bonds held a cumulative value of $378.6m. Of this, $141.3m is subject to the February 2022 repurchase agreement in which external bonds were sold for repurchase in two years.”

That refers to the ‘repo’ deal which saw the Government transfer almost $236m worth of its US bond holdings to Goldman Sachs in return for $206.5m in cash, providing it with instant US dollar and foreign currency liquidity. The assets transferred to Goldman Sachs, in

FROM PAGE B1

and eventually 70/30 30 percent of our business being stopover business.”

Similar sentiments were voiced by Robert Sands, the Bahamas Hotel and Tourism Association’s (BHTA) president, who said at that body’s AGM this week: “Taking into account the cruise visitors average expenditure per trip versus stopover passenger average expenditure per trip, if we converted just 10 percent of our cruise passengers to stopover passengers, we could be poised to inject into our economy over $1.5bn.”

Mr Alexiou, meanwhile, said that while The Bahamas should be celebrating the milestone of welcoming

NOTICE

Lgbotelho Ltd. Incorporated under the International Business Companies Act, 2000 of the Commonwealth of The Bahamas.

Registration Number 210848 B (In Voluntary Liquidation)

Notice is hereby given that the above-named Company is in dissolution, commencing on the 6th day of December A.D. 2023.

Articles of Dissolution have been duly registered by the Registrar. The Liquidator is Mr. Luis Gustavo Botelho whose address is R Natal, 706 – Apto 1904, 18AND, CEP: 85810060, Cascavel, PR, Brazil. Any Persons having a Claim against the above-named Company are required on or before the 21st day of December A.D. 2023 to send their names, addresses and particulars of their debts or claims to the Liquidator of the Company, or in default thereof they may be excluded from the benefit of any distribution made before such claim is proved.

Dated this 6th day of December A.D. 2023.

LUIS GUSTAVO BOTELHO Liquidator

NOTICE THIMPHU HOLDINGS LIMITED N O T I C E IS HEREBY GIVEN as follows: (a) THIMPHU HOLDINGS 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 7th December, 2023 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 8th day of December, A. D. 2023. ________________________ Bukit Merah Limited Liquidator

NOTICE INTERNATIONAL BUSINESS COMPANIES ACT, 2000

BLUESEE INVEST SA (IN VOLUNTARY LIQUIDATION)

NOTICE IS HEREBY GIVEN that in accordance with section 138(6) of the International Business Companies Act, 2000, as amended, the winding up and dissolution of BLUSEE INVEST SA is complete.

Kim D Thompson Sole Liquidator Address: Equity Trust House Caves Village West Bay Street P O Box N-10697 Nassau, Bahamas

PAGE 6, Friday, December 8, 2023

THE TRIBUNE

Reforms to keep Bahamas off EU, OECD tax blacklists

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net A CABINET minister yesterday said the latest reforms to the economic substance reporting regime are designed to remove The Bahamas from, and keep it off, tax-related blacklists.

Senator Michael Halkitis, in his contribution to the Senate debate on the Commercial Entities (Substance Requirements) Amendment Bill 2023 and the Register of Beneficial Ownership Amendment Bill 2023, said amendments to the former are necessary to address recommendations from the Organisation for Economic Co-Operation and Development’s (OECD) forum on harmful tax practices.

The OECD forum, in its October review, determined that The Bahamas’ economic substance reporting regime is “not harmful” but called on this nation to fulfill three recommendations

that the latest regulatory reforms are designed to meet. Most critical among the three is the demand that The Bahamas bring its exchanges of economic substance information with other countries up to the required “standard”.

The Bahamas needs to “undertake the required exchanges of information under the standard (with respect to all relevant entities, as required for jurisdictions without a fully equipped monitoring mechanism (FEMM)”, Mr Halkitis said of the OECD’s core recommendation.

The Paris-based body, which represents the world’s wealthiest and most industrialised nations, called on The Bahamas to better verify its statistical data with respect to economic substance reporting.

And the OECD forum also urged this nation to strive for greater compliance that goes “beyond” desk based reviews.

This is particularly for “entities that claim

to be out of scope, pure equity holding companies (PEHCs) and foreign tax residence claims.

Besides ensuring The Bahamas remains compliant with the OECD’s demands, adopting the latter’s recommendations into law is also critical to the country’s prospects of escaping the European Union’s (EU) blacklist of nations considered non-cooperative for tax purposes when the 27-nation bloc next meets to review that initiative in February 2024.

The EU initiative largely takes its cue from the OECD’s forum, given that both bodies’ tax and “economic substance” initiatives overlap to some extent, so fully embracing and adopting the latter’s information exchange recommendation is also vital to a favourable review from the European bloc.

Mr Halkitis yesterday explained: “There are cross-cutting issues with respect to the measures that

The Bahamas has to take to satisfy the requirements of the forum on harmful tax practices and the EU. “The new provisions contained within these Bills will address the concerns of the harmful tax practices secretariat and EU Code of Conduct Group.

However, the purpose is to have The Bahamas’ name and recommendations removed from the EU and forum on harmful tax practices secretariat’s list.

“The proposed amendments to the Commercial Entities (Substance Requirements) Act will allow The Bahamas to conduct exchanges on all relevant entities as required for jurisdictions without a FEMM. The Bahamas is currently exchanging information utilising a Standard Monitoring Mechanism designation,” he added.

“The amendments would allow The Bahamas to fulfill its international obligations under the standard and be in a better position to request an assessment

MARKET REPORT www.bisxbahamas.com

THURSDAY, 7 DECEMBER 2023

BISX ALL SHARE INDEX:

CLOSE

CHANGE

%CHANGE

YTD

YTD%

2848.53

3.16

0.11

203.47

7.69

52WK LOW 3.88 40.06 2.55 2.00 2.56 6.30 8.69 3.80 10.21 3.30 8.50 10.65 2.74 10.00 9.16 3.67 17.00 3.65 11.00 15.76

SECURITY AML Foods Limited APD Limited Benchmark Bahamas First Holdings Limited Bank of Bahamas Bahamas Property Fund Bahamas Waste Cable Bahamas Commonwealth Brewery Commonwealth Bank Colina Holdings CIBC FirstCaribbean Bank Consolidated Water BDRs Doctor's Hospital Emera Incorporated Famguard Fidelity Bank (Bahamas) Limited Focol Finco J. S. Johnson

SYMBOL AML APD BBL BFH BOB BPF BWL CAB CBB CBL CHL CIB CWCB DHS EMAB FAM FBB FCL FIN JSJ

LAST CLOSE 4.50 41.19 2.76 2.00 4.32 7.00 10.62 4.21 11.00 5.45 10.20 13.30 7.25 10.50 8.80 3.95 17.75 4.75 12.73 15.82

CLOSE 4.50 41.19 2.76 2.00 4.32 7.00 10.62 4.21 11.00 5.45 10.20 13.30 7.28 10.50 8.90 4.17 17.75 4.75 12.73 15.82

CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.03 0.00 0.10 0.22 0.00 0.00 0.00 0.00

1.00 1.00 10.00 1.00

1.00 1.00 10.00 1.00

0.00 0.00 0.00 0.00

LAST SALE 100.00 100.00

CLOSE 100.00 100.00

CHANGE 0.00 0.00

107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.09 100.05 100.41 100.12 100.10 96.10 99.87 100.00 100.81 97.15 100.14 100.03 100.23 100.36 100.65

107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.09 100.05 100.41 100.12 100.10 96.10 99.87 100.00 100.81 97.15 100.14 100.03 100.23 100.36 100.65

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 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

VOLUME

700 20,000 233

EPS$ 0.239 0.932 0.000 0.140 0.070 1.760 0.369 -0.438 0.140 0.184 0.449 0.722 0.102 0.467 0.646 0.728 0.816 0.203 0.939 0.631

DIV$ 0.170 1.260 0.020 0.080 0.000 0.000 0.260 0.000 0.000 0.120 0.220 0.720 0.434 0.060 0.328 0.240 0.540 0.120 0.200 0.610

P/E 18.8 44.2 N/M 14.3 N/M N/M 28.8 -9.6 78.6 29.6 22.7 18.4 71.4 22.5 13.8 5.7 21.8 23.4 13.6 25.1

YIELD 3.78% 3.06% 0.72% 4.00% 0.00% 0.00% 2.45% 0.00% 0.00% 2.20% 2.16% 5.41% 5.96% 0.57% 3.69% 5.76% 3.04% 2.53% 1.57% 3.86%

PREFERENCE SHARES 1.00 1.00 10.00 1.00

1.00 1.00 10.00 1.00

Bahamas First Holdings Preference Colina Holdings Class A Fidelity Bank Bahamas Class A Focol Class B

BFHP CHLA FBBA FCLB

0.000 0.000 0.000 0.000

0.000 0.000 0.000 0.000

0.000 0.000 0.000 0.000

0.00% 6.25% 7.00% 6.50%

CORPORATE DEBT - (percentage pricing) 52WK HI 100.00 100.00

52WK LOW 100.00 100.00

SECURITY Fidelity Bank (Note 22 Series B+) Bahamas First Holdings Limited

SYMBOL FBB22 BFHB

VOLUME

INTEREST Prime + 1.75% 6.25%

MATURITY 19-Oct-2022 30-Sep-2025

6.95% 4.50% 4.50% 6.25% 6.25% 4.50% 6.25% 4.25% 4.53% 4.38% 4.62% 4.65% 4.27% 5.60% 6.40% 4.88% 4.87% 5.40% 4.40% 4.69% 4.56% 4.33% 4.53%

20-Nov-2029 15-Dec-2021 30-Jul-2022 15-Dec-2044 30-Jul-2045 26-Jun-2022 26-Jun-2045 15-Oct-2022 18-Jan-2025 10-Dec-2028 22-Sep-2031 22-Sep-2032 26-Jul-2024 15-Jun-2040 15-Feb-2051 26-Jul-2035 26-Jul-2037 13-Oct-2036 19-Oct-2030 22-Sep-2033 4-May-2026 26-Jul-2028 7-Sep-2025

BAHAMAS GOVERNMENT STOCK - (percentage pricing) 115.92 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.09 100.05 100.41 100.56 100.10 96.61 98.80 100.78 100.81 97.34 100.14 100.03 100.23 100.51 100.65

104.79 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.09 100.05 100.41 100.12 100.05 96.61 98.80 100.00 100.81 97.34 100.14 100.03 100.23 100.30 100.65

Bahamas Note 6.95 (2029) BGS: 2014-12-7Y BGS: 2015-1-7Y BGS: 2014-12-30Y BGS: 2015-1-30Y BGS: 2015-6-7Y BGS: 2015-6-30Y BGS: 2015-10-7Y BGRS FL BGRS76025 BGRS FL BGRS90028 BGRS FL BGRS84031 BGRS FL BGRS84032 BGRS FL BGRS98024 BGRS FX BGR138240 BGRS FX BGR142251 BGRS FL BGRS81035 07/26/2035 BGRS FL BGRS81037 07/26/2037 BGRS FX BGR112036 10/13/2036 BGRS FL BGRS89030 10/19/2030 BGRS FL BGRS84033 09/22/2033 BGRS FL BGRS77026 05/04/2026 BGRS FL BGRS88028 07/26/2028 BGRS FL BGRS75025 09/07/2025

BAH29 BG0107 BG0207 BG0130 BG0230 BG0307 BG0330 BG0407 BSBGRS760257 BSBGRS900283 BSBGRS840315 BSBGRS840323 BSBGRS980244 BSBGR1380405 BSBGR1420516 BSBGRS810359 BSBGRS810375 BSBGR1120363 BSBGRS890302 BSBGRS840331 BSBGRS770264 BSBGRS880287 BSBGRS750258

MUTUAL FUNDS 52WK HI 2.64 5.00 2.29 192.48 199.29 1.80 2.05 1.91 0.98 10.20 13.51 7.80 16.64 12.84 10.77 16.27 11.22 14.89

52WK LOW 2.11 3.30 1.68 116.70 199.29 1.74 1.84 1.83 0.93 6.41 7.62 5.66 8.65 10.54 9.57 9.88 8.45 11.20

FUND CFAL Bond Fund CFAL Balanced Fund CFAL Money Market Fund CFAL Global Equity Fund CFAL Global Fixed Income Fund Leno Financial Conservative Fund Leno Financial Aggressive Fund Leno Financial Balanced Fund Leno Financial Global Bond Fund RF Bahamas Opportunities Fund - Secured Balanced Fund RF Bahamas Opportunities Fund - Targeted Equity Fund RF Bahamas Opportunities Fund - Prime Income Fund RF Bahamas International Investment Fund Limited - Equities Sub Fund RF Bahamas International Investment Fund Limited - High Yield Income Fund RF Bahamas International Investment Fund Limited - Alternative Strategies Fund Coralisle Bahamas Fund - Class D Coralisle Bahamas Fund - Class E Coralisle Bahamas Fund - Class F

NAV 2.64 5.00 2.30 192.48 199.29 1.80 2.05 1.91 0.96 10.23 13.54 7.82 13.45 12.24 10.69 N/A 9.19 14.10

YTD% 1.95% 2.16% 1.36% 6.85% 1.07% 1.47% 3.58% 1.46% 0.59% 0.48% -0.50% 1.08% 2.47% 1.49% 0.71% N/A 3.00% N/A

12 MTH% 3.87% 3.79% 2.85% 8.83% N/A 2.82% 7.12% 2.87% -0.60% 8.25% 13.68% 3.07% -6.88% 0.87% 0.53% N/A 25.60% N/A

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 | CORALISLE 242-502-7525 | LENO 242-396-3225 | BENCHMARK 242-326-7333

Register of Beneficial Ownership Act, Mr Halkitis said the Ministry of Finance will now be able to “procure information first hand” from the system in order to allow for prompt compliance via the International Tax Co-operation Act and Commercial Entities (Substance Requirements) Act. “Through the aforementioned amendments, The Bahamas would have a comprehensive legal framework capable of responding to the ebbs and flows of the financial services industry, thereby enabling The Bahamas to sustain its competitive nature and position as a leading international financial services centre (IFC),” Mr Halkitis explained.

WAGE BILL

percent),” the Ministry of Finance report said.

“Subsidies, which include transfers to governmentowned and/or controlled enterprises that provide commercial goods and services to the public, receded by $31.2m (6.3 percent) to $464.7m, which surpassed the budget target by 7.5 percent.

“Subsidies to public non-financial corporations declined by $34.4m (7.3 percent) to $439.2m, paced primarily by the $26.9m contraction in COVID19 support to the Public Hospitals Authority following the end of emergency orders. Subsidies to private enterprises and other sectors rose by $3.2m (14.6 percent) to $25.5m, owing to higher equity contribution payments to Baha Mar ($2.8),” it added.

“Social benefit payments declined by $58.4m (20.4 percent) to $227.4m, which corresponded to 98 percent of the annual budget.

Social assistance benefits contracted by $67.6m (56.2 percent) to $52.8m, primarily explained by the cessation of the COVID-19 emergency orders and the need for related assistance.

“Pension and gratuity payments increased by $9.2m (5.6 percent) to $174.6m, largely attributed to the recent cost of living increase granted to pensioners... Payment of insurance premiums decreased by $55m (40.5 percent) to $80.7m (96.8 percent of Budget) compared to the prior year.”

FROM PAGE B1

fiscal strategy of containing costs. “During the 12 months to end-June for the 2022-2023 fiscal year, total recurrent expenditure increased by $18.9m (0.6 percent) to $3.062bn compared to the same period in the prior year, representing 99.6 percent of the targeted spend,” the Ministry of Finance report said.

“Spending on the use of goods and services was higher by $32.7m (5.1 percent) at $671.7m, which corresponded to 99.6 percent of the annual budget.

Rental costs increased by $22.4m (26.7 percent) to $105.9m, mostly comprising payments for office lease and rent, vehicle leases and living accommodations.

Rental costs during the period surpassed the budget target by 2.5 percent.”

The Ministry of Finance report added that the Government’s spending on services was higher by $90m (45.4 percent) at $288.3m, driven by higher outlays for consultancy services and operation of facilities. This exceeded the Budget target by 3.2 percent.

“Public debt interest payments expanded by $21.3m (3.9 percent) to $573.1m, which surpassed the Budget target by 2.3 percent. By currency, payments on foreign currency obligations totaled $316.5m (56.1 percent), while payments on domestic debt obligations totaled $256.6m (45.5

NOTICE

(242) 323-2330 (242) 323-2320

BISX LISTED & TRADED SECURITIES 52WK HI 6.95 50.00 2.76 2.70 5.74 7.00 10.80 4.70 12.21 5.50 10.25 14.50 5.48 10.60 11.67 4.17 18.25 4.75 12.80 17.33

for FEMM designation in the April 2024 meeting of the forum on harmful tax practices.”

Mr Halkitis added: “The amendments will allow the Authority responsible for the Commercial Entities (Substance Requirements) Act to successfully undertake the procedures involved with the exchange of information under the Act, in addition to the exchange of information under the International Tax Co-operation Act or Multilateral Convention on Mutual Administrative Assistance in Tax Matters, without being in breach of the confidentiality provisions of the Act.” Explaining how this is linked to reforms to the

NAV Date 30-Jun-2023 30-Jun-2023 30-Jun-2023 30-Jun-2023 30-Jun-2023 30-Jun-2023 30-Jun-2023 30-Jun-2023 30-Jun-2023 24-Jul-2023 24-Jul-2023 24-Jul-2023 24-Jul-2023 24-Jul-2023 24-Jul-2023 31-Mar-2023 31-Mar-2023 31-Mar-2023

NOTICE is hereby given that JOSE MIDJINA IMBERT, Blackwood, North Eleuthera, The Bahamas 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 8th day of December 2023 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE NOTICE is hereby given that JAMESLY BASTIEN of Wentworth 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 8th day of December, 2023 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

NOTICE NOTICE is hereby given that TINESHA EUPHEMIA DUNCAN, #24 Kent Avenue, Nassau East South, Nassau, The Bahamas 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 8th day of December 2023 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

PAGE 8, Friday, December 8, 2023

THE TRIBUNE

BPL addresses Briland woes with fuel supplier fuel supplier to make sure that this does not happen in the future.”

BPL earlier this week said it had launched an investigation into contaminated fuel that was delivered to its Harbour Island plant, leading to the failure of four generator units on the island. Contaminated fuel threatens serious damage to engines, often causing parts to be replaced, which can take time to accomplish.

“You have to replace injectors, change filters, etc… and then you have to drain the contaminated fuel, flush it and replace it

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net BAHAMAS Power & Light (BPL) yesterday said it is speaking to its supplier to ensure the fuel contamination that has disrupted Harbour Island’s electricity over the past three weeks ceases.

Toni Seymour, the state-owned utility’s chief operating officer, said: “We had several fuel contamination issues on Harbour Island within the last two weeks. We have been in communication with our

with good fuel,” Ms Seymour said. “As for BPL, we apologise to the residents of Harbour Island who have experienced this repeatedly within the last two weeks, and we have worked expeditiously to prevent it from happening again.”

BPL has been plagued with fuel contamination problems over the past several months as a similar incident happened in North Andros in July 2023, leaving that island without power for over a week.

FOCOL, the fuel supplier, said it was assisting BPL with its investigation

into that incident. Ms Seymour added: “We did have an issue in Acklins recently where one of our generators was damaged. Because Acklins is far away we did procure a replacement generator the same day that the incident happened, but the boat takes a while to get there.

“The Royal Bahamas Defence Force assisted us with transporting the engine and, once we got it there, we installed it and restored supply.”

There were only 75 customers in Salina Point, Acklins, that were disrupted.

AG: TACKLING SUBSTANCE REPORTING WOES IS CRITICAL Beneficial Ownership Act, said the former legislation took effect in January 2019. However, at the end of 2021 shortly after the Davis administration took office, the Government received notice from the EU that there were “deficiencies” with the Act’s implementation.

“In November 2022, the EU added The Bahamas to its list of non-cooperative jurisdictions,” he recalled.

“It has taken until now to be able to satisfy the OECD

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net THE Attorney General yesterday said The Bahamas must address alleged deficiencies in its economic substance reporting regime to escape the European Union’s (EU) tax blacklist.

Ryan Pinder KC, speaking during the Senate debate on reforms to the Commercial Entities (Substance Requirements) Act and the Register of

(Organisation for Economic Co-Operation and Development) and the EU of compliance with the economic reporting standards because of the grave level of non-compliance that we met on coming to office.”

Mr Pinder argued that it was “non-compliance that was perpetuated by poor decisions of the former FNM administration”. He reiterated previous assertions that the economic substance reporting portal was “not interactive”,

THE WEATHER REPORT

5-DAY FORECAST

TODAY

TONIGHT

SATURDAY

SUNDAY

MONDAY

TUESDAY

UV INDEX TODAY

Cloudy

Mainly cloudy

Mostly sunny and nice

Breezy, humid; a stray p.m. t-storm

Cloudy; breezy in the afternoon

Windy with low clouds

The higher the AccuWeather UV IndexTM number, the greater the need for eye and skin protection.

High: 78°

Low: 71°

High: 80° Low: 73°

High: 83° Low: 72°

High: 80° Low: 72°

High: 80° Low: 72°

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

77° F

70° F

83°-74° F

88°-73° F

84°-70° F

77°-71° F

ORLANDO

High: 77° F/25° C Low: 63° F/17° C

TAMPA

High: 76° F/24° C Low: 65° F/18° C

E

W

ABACO

S

N

High: 75° F/24° C Low: 72° F/22° C

8-16 knots

S

WEST PALM BEACH High: 78° F/26° C Low: 70° F/21° C

8-16 knots

FT. LAUDERDALE

FREEPORT

High: 78° F/26° C Low: 72° F/22° C

E

W S

E

W

High: 76° F/24° C Low: 68° F/20° C

MIAMI

High: 79° F/26° C Low: 72° F/22° C

8-16 knots

Ht.(ft.)

Today

3:58 a.m.

4:05 p.m.

2.5 2.2

10:17 a.m. 0.6 10:18 p.m. 0.2

ALMANAC

Saturday

4:43 a.m.

4:52 p.m.

2.7 2.2

11:07 a.m. 0.4 11:00 p.m. 0.0

Statistics are for Nassau through 1 p.m. yesterday Temperature High ................................................... 75° F/24° C Low .................................................... 68° F/20° C Normal high ....................................... 80° F/26° C Normal low ........................................ 68° F/20° C Last year’s high .................................. 82° F/28° C Last year’s low ................................... 70° F/21° C Precipitation As of 1 p.m. yesterday ................................. 0.00” Year to date ................................................ 50.86” Normal year to date ................................... 38.79”

Sunday

5:27 a.m.

5:38 p.m.

2.9 2.2

11:54 a.m. 0.2 11:43 p.m. -0.1

Monday

6:10 a.m.

6:23 p.m.

3.0 2.3

12:40 p.m. 0.1 ---------

Tuesday

6:54 a.m.

7:08 p.m.

3.2 2.3

12:26 a.m. -0.3 1:25 p.m. 0.0

Wednesday 7:40 a.m.

7:55 p.m.

3.3 2.3

1:11 a.m. -0.4 2:12 p.m. -0.1

Thursday

3.3 2.4

1:58 a.m. -0.4 2:59 p.m. -0.2

ELEUTHERA

NASSAU

High: 78° F/26° C Low: 71° F/22° C

Forecasts and graphics provided by AccuWeather, Inc. ©2023

High: 78° F/26° C Low: 74° F/23° C

N

KEY WEST

High: 79° F/26° C Low: 73° F/23° C

Ht.(ft.)

SUN AND MOON Sunrise Sunset

High: 79° F/26° C Low: 72° F/22° C

N

S

E

W

8-16 knots

S

10-20 knots

ANDROS

Shown is today’s weather. Temperatures are today’s highs and tonight’s lows.

8:26 a.m.

8:44 p.m.

Low

6:43 a.m. Moonrise 5:21 p.m. Moonset

2:29 a.m.

2:16 p.m.

New

First

Full

Last

Dec. 12

Dec. 19

Dec. 26

Jan. 3

CAT ISLAND

E

W

TIDES FOR NASSAU High

The exclusive AccuWeather RealFeel Temperature® is an index that combines the effects of temperature, wind, humidity, sunshine intensity, cloudiness, precipitation, pressure and elevation on the human body—everything that affects how warm or cold a person feels. Temperatures reflect the high and the low for the day.

N

N

while the data accumulated needed to be vetted and reviewed manually, and was not freely accessible in digital format through the portal.

“We had to build a new and operational enforcement division, so we could demonstrate that not only we have the necessary laws and the necessary reporting mechanisms, but we also have the ability and actually inspect for compliance and enforce when there is non-compliance.”

SAN SALVADOR

GREAT EXUMA

High: 79° F/26° C Low: 73° F/23° C

High: 79° F/26° C Low: 76° F/24° C

N

High: 79° F/26° C Low: 74° F/23° C

E

W S

LONG ISLAND

TRACKING MAP

High: 80° F/27° C Low: 76° F/24° C

10-20 knots

MAYAGUANA High: 80° F/27° C Low: 75° F/24° C

Shown is today’s weather. Temperatures are today’s highs and tonight’s lows.

CROOKED ISLAND / ACKLINS RAGGED ISLAND High: 80° F/27° C Low: 78° F/26° C

H

High: 80° F/27° C Low: 77° F/25° C

GREAT INAGUA High: 83° F/28° C Low: 77° F/25° C

N

E

W

E

W

N

S

S

12-25 knots

12-25 knots

MARINE FORECAST ABACO ANDROS CAT ISLAND CROOKED ISLAND ELEUTHERA FREEPORT GREAT EXUMA GREAT INAGUA LONG ISLAND MAYAGUANA NASSAU RAGGED ISLAND SAN SALVADOR

Today: Saturday: Today: Saturday: Today: Saturday: Today: Saturday: Today: Saturday: Today: Saturday: Today: Saturday: Today: Saturday: Today: Saturday: Today: Saturday: Today: Saturday: Today: Saturday: Today: Saturday:

WINDS E at 8-16 Knots ESE at 10-20 Knots E at 8-16 Knots E at 8-16 Knots E at 10-20 Knots E at 10-20 Knots ENE at 12-25 Knots ENE at 12-25 Knots E at 8-16 Knots E at 10-20 Knots E at 8-16 Knots ESE at 8-16 Knots E at 10-20 Knots E at 10-20 Knots NE at 12-25 Knots ENE at 15-25 Knots E at 10-20 Knots ENE at 12-25 Knots ENE at 12-25 Knots ENE at 12-25 Knots E at 8-16 Knots E at 8-16 Knots NE at 12-25 Knots ENE at 12-25 Knots E at 10-20 Knots E at 10-20 Knots

WAVES 4-7 Feet 4-7 Feet 1-2 Feet 1-2 Feet 4-8 Feet 4-8 Feet 4-7 Feet 4-8 Feet 5-9 Feet 4-8 Feet 2-4 Feet 2-4 Feet 1-2 Feet 1-2 Feet 3-6 Feet 4-7 Feet 3-5 Feet 4-7 Feet 5-9 Feet 5-9 Feet 1-3 Feet 2-4 Feet 3-5 Feet 4-7 Feet 2-4 Feet 2-4 Feet

VISIBILITY 5 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 5 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 5 Miles 6 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles

WATER TEMPS. 78° F 78° F 76° F 73° F 81° F 81° F 82° F 82° F 80° F 80° F 75° F 74° F 78° F 77° F 83° F 83° F 82° F 82° F 82° F 82° F 79° F 79° F 81° F 81° F 81° F 81° F