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TUESDAY, DECEMBER 31, 2019
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BPL fuel charge probe ‘first step’ over regulation By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A CHAMBER of Commerce director yesterday voiced optimism that regulators are poised to take “the first step” in ensuring Bahamas Power & Light (BPL) fulfills its obligations towards consumers. Debby Deal told Tribune Business she drew encouragement from the Utilities Regulation and Competition Authority’s (URCA) planned probe into how BPL calculates its fuel charge as a sign that it will increasingly bare its supervisory teeth towards the state-owned energy monopoly. The head of the Chamber’s environment and energy committee, she said URCA’s just-unveiled draft 2020 annual plan also explained that a lack of funding and staff with the necessary expertise had impeded its initial efforts to properly regulate BPL. “I can see now why URCA was not much in the picture as it didn’t have the resources to do what it needed to do,” Ms Deal added. “That’s good for us to know. A lot of us wondered why URCA was not in the picture - we saw a lot of fines for BTC on the communications side, but very little to do with BPL. They didn’t have the funds to hire the staff to do what they needed to do. “Now they will expand their staff we’ll be able to see better results, maybe, in the actions of BPL if they are questioned as to what they’re doing. Whether that happens is a whole different ball game.” Ms Deal added that URCA’s planned investigation into BPL’s fuel charge, which typically makes up 50-60 percent of consumer bills, was “good news even if they find nothing” as it suggested the regulator was prepared to act in the interests of consumers. “I’m very grateful that this might be the first step in making sure their [BPL’s] actual mandate comes to fruition. BPL is supposed to provide safe, reliable and cost efficient energy, and for 40 years they’ve not given us safe, reliable and cost efficient energy,” she told Tribune Business. “Now they can start looking into some of this stuff.” This newspaper reported last week that URCA is set to examine whether BPL customers have suffered “possible harm or mischief” after detecting
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‘Stop beating up on private sector’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
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HE government’s labour chief has been told by a prominent businessman to “stop beating up on the private sector” over The Bahamas’ long-standing workforce quality and “brain drain” woes. Robert Myers, chief executive of Caribbean Group Bahamas, told Tribune Business that John Pinder, director of labour, and the government should first fix the country’s education system before trying to make the business community responsible for addressing this nation’s illiteracy and semi-literacy problems. Effectively calling for the government to put its own house in order in response to Mr Pinder’s revival of the “Bahamian understudy” proposal, Mr Myers said he did “not need the law or government policy” to force his companies to do this as they already all have their own internal
• Can’t solve all ‘brain drain’, education woe • Businesses don’t need law to force training • ‘Understudy’ proposal needs clarification
ROBERT MYERS training programmes. Besides an education system that “has failed our young people for decades”, he added that the increasing tendency of Bahamian graduates to remain abroad after completing their college and university degrees meant there was simply an insufficient supply of qualified managers and skilled technicians to meet the economy’s demands. As a result, Mr Myers argued that both the private sector and the government are “scrapping” for the
same finite pool of talented Bahamians. Pledging that “if there were Bahamians available, I’d hire them”, he said the local labour market’s supply/demand imbalance frequently left his and other businesses with no choice but to engage expatriates for certain key positions. The ex-Chamber of Commerce chairman described Mr Pinder’s pre-Christmas remarks as a “very broad statement” that needed urgent clarification given the potential impact they may have for some Bahamian businesses if implemented. The labour director said labour certificates, which confirm there are no qualified Bahamians willing or able to take a particular job, will only be issued to companies that provide evidence they have identified a Bahamian “understudy” who will be trained to replace the expatriate
BAHAMIAN insurers yesterday urged the prime minister to “treat the industry with the respect it deserves” over its $2bn Dorian-related payout after he suggested it was “holding back” recovery efforts. Anton Saunders, RoyalStar Assurance’s managing director, told Tribune Business that Dr Hubert Minnis and his officials knew where to reach the Bahamas Insurance Association (BIA) and the industry’s “major players” if they had any issues with their role following the category five storm. Responding after the prime minister was reported to have said that demolition of unsafe buildings on Abaco and Grand Bahama is being delayed while the insurance companies complete their claims
worker once their work permit has expired. The director of labour suggested this will be a “mandatory” policy from January 2020 onwards, with companies given until the 2020 first quarter end to develop their training programmes. He added that the Department of Labour would conduct interviews and inspections to ensure these requirements were being met, and threatened that, while only a policy, it would be upgraded into statute law if there was too much resistance from Bahamian employers. Mr Pinder’s proposal is nothing new, since both Christie administrations first under Shane Gibson, then Fred Mitchell - also talked up the “Bahamian understudy” theme. However, the initiative never
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Most Bahamians to miss growth benefits By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A WELL-known businessman yesterday voiced fears that the “overwhelming majority” of Nassau residents may not feel the benefits even with the capital’s economy poised for “a good inning” in 2020. Sir Franklyn Wilson told Tribune Business that the increasing wealth gap between “the haves and have nots” appeared to be “off the radar” where the government was concerned, even though “fewer and fewer” Bahamians were seeing their share of national income increase. He argued that the cruise port’s $250m transformation, together with other multi-million dollar developments such as Baha Mar’s water-based theme park, The Pointe’s completion, the Gold Wynn and Hurricane Hole projects, and continued investment by the likes
• Sir Franklyn: Nassau poised for 2020 ‘good inning’ • But warns ‘fewer getting decent share’ of wealth • Urges DPM to follow the ‘Paul Adderley model’
SIR FRANKLYN WILSON of Albany would ensure New Providence’s economy enjoys “a good year” - but only at the macroeconomic level. “I believe New Providence is poised to have a good inning,” the Arawak Homes and Sunshine Holdings chairman told this newspaper. “I think there’s a reasonable basis to think that
New Providence will have a good year... “However, you know, while I say New Providence should have a good inning, those are macroeconomic numbers. While the macroeconomic numbers may be favourable, the impact on the majority of people may not necessarily follow as the gap between the haves and have nots continues to widen. “The pot as a whole is getting bigger, but fewer and fewer people are getting a decent share. Even when I say New Providence will have a good inning, I’m talking in macroeconomic terms which may not necessarily translate to the overwhelming majority of the population a year from now feeling any better off.
PM told: ‘Treat $2bn insurers with respect’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
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Industry questions Minnis’ ‘holding back’ claim assessments, Mr Saunders reiterated that the extent of Dorian’s devastation was bound to make this process take slightly longer than in previous storms. He also pointed out that the industry, and its loss adjusters, had been denied access to the worst-hit parts of Abaco for the immediate fortnight post-Dorian by the government as it sought to make the area safe. “If the prime minister has information, he or his representatives should come to the BIA, call us to a meeting and discuss it,” Mr Saunders told Tribune Business. “I don’t know where he’s getting his information from. “If you have an organisation that’s spent $2bn, somebody needs to pick up the phone. The prime minister knows all the big players in the insurance industry; if
he has legitimate concerns with the insurance industry he’s the prime minister. He can summon us to a meeting and cure all this upset.” Dr Minnis had suggested, according to media reports, that the post-Dorian reconstruction and recovery effort was being “held back” because the insurance companies were still completing their claims adjusting work. “The insurance companies have not yet completed their job in terms of assessing and compensating individuals,” the prime minister said on Christmas Day. “So we are held back to some extent even by insurance companies... We cannot move buildings until they have been assessed by the insurance companies.” Asked subsequently for clarification, Dr Minnis said: “One of the challenges
we have with Abaco is you cannot do much, not even within the yards. You have to wait for clearance by the insurance companies those who have insurance - because if you were to demolish them then insurance companies can always argue that the building was not as bad as said. So you have to work hand in hand with them.” Bahamian property and casualty insurers earlier this month told Tribune Business that the industry’s total Dorian claims payouts are now estimated to come in at the upper end of the last $1.5bn to $2bn estimate, making the storm comfortably the largest ever loss event suffered by the sector and its reinsurance partners in this nation.
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The majority will not feel any better off.” Sir Franklyn said the government seemed to have forgotten the growing income inequality, and widening gap between rich and lower income Bahamians, given that none of its public statements or speeches had ever addressed the issue. “I have yet to hear any government minister make any statement that they see this as an issue,” he added. “I cannot think of any statement a cabinet minister has made which specifically addresses the imbalance between the haves and the have nots as a key public policy issue. This is not even on the radar of the authorities.”
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Private sector is ‘100% ready’ on plastics ban By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net MAJOR supermarket and fast-food restaurant chains yesterday pledged they are “100 percent ready” for single-use plastics ban that takes effect tomorrow despite the extra costs they will incur. Mario Cash, general manager of Restaurants Bahamas, operator of the Kentucky Fried Chicken (KFC) and Burger King franchises, told Tribune Business: “We are 100 percent prepared. The impact for us was on the Styrofoam. “We use the breakfast Styrofoam clamshell for the pancakes platter, and we had to switch to a platter that is now biodegradable that can handle the pancakes and the sauce etc... The actual cost increase on that platter alone was 68 cents to go to a biodegradable one.” He added: “If you think about any vendors that are using the regular Styrofoam lunch clamshell, they went to the paper thing and it doesn’t quite work for putting scrambled eggs and pancakes on one platter. “So what we had to do is go to a high-grade biodegradable plastic thing that gives us a better-looking image. We didn’t even have that option of going paper. Then we had the straws and coffee cups with the lids. We don’t have any bags that were plastic; we already used paper.” Mr Cash said the increased costs involved in complying with the ban had created some challenges, explaining: “I’m absorbing that cost, which is insane. How do I pass this on? How do I pass this on to the consumer? “All of this cost increase is surrounding breakfast heavily because you have the breakfast platter now, the coffee cup and also the coffee stirrer. So it’s a lot of cost for breakfast items we had to absorb. “The actual cost per month on this packaging is $1,000 per store, so I am looking at a $6,000 increase
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PAGE 2, Tuesday, December 31, 2019
THE TRIBUNE
UNIONS BACK WORK PERMIT ‘UNDERSTUDY’ By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net
UNION leaders yesterday gave their full backing to the “Bahamian understudy” proposal unveiled by the government’s labour chief, arguing that too many work permits are being issued unnecessarily. Obie Ferguson, the Trade Unions Congress (TUC) president, told Tribune Business that the scheme outlined pre-Christmas by John Pinder, director of labour, would not be too costly for employers to implement - as many in the private sector fear. He spoke out after Mr Pinder said labour certificates, which confirm there are no qualified Bahamians willing or able to take a particular job, will only be issued to companies that provide evidence they have identified a Bahamian “understudy” who will be trained to replace the expatriate worker once their work permit has expired. The director of labour suggested this will be a “mandatory” policy from January 2020 onwards, with companies given until the 2020 first quarter end to develop their training programmes. He added that the Department of Labour would conduct interviews and inspections to ensure these requirements were being met, and also threatened that, while only a policy, it would be upgraded into statute law if there was
OBIE FERGUSON too much resistance from Bahamian employers. “Basically that was a policy that was in effect when AD Hanna, the former deputy prime minister, was in charge of immigration,” Mr Ferguson said. “That’s going way back in the PLP (Progressive Liberal Party) era. So I see no reason why we should have moved it; it makes sense. It makes sense that a Bahamian always understudies someone who has a particular skill, or a speciality, that a Bahamian can easily adapt to.” Dismissing suggestions it would be too expensive for employers to hire an “understudy” as well as the expatriate, Mr Ferguson said: “It wouldn’t be costly because normally it would be employees within their employ; they would have already been employed. “Let’s say, for example, you have a food and beverage director in one of the large hotels. If a Bahamian is a convention manager, or an assistant food and beverage manager, with the proper coaching and counselling
and a hands-on situation, within a very short period of time the Bahamian can acquire the practical skills necessary to function in that particular job.” As for arguments there are insufficient willing and able Bahamians to act as understudies, Mr Ferguson said: “That don’t make no sense. Because today you have Bahamians who have all sorts of degrees in accounting, in engineering, in hotel management, in banking; the main industries that drive this economy. “We have Bahamians by the thousands, so I don’t think that would be an issue. I think what is more of an issue is to find some persons who can adapt to the image or the philosophy of the particular company, but in terms of academic skills I think that sort of an argument is moot.” Recalling past efforts to implement an “understudy” policy, Mr Ferguson argued: “I would not say it failed, but it is just that those persons who were responsible for policing it did not continue to operate it. I can recall, as president of the Bahamas Hotel Managerial Association (BHMA), we were notified by the late Clement T Maynard, former deputy prime minister and minister of tourism, of all vacancies that occurred at the exchange department. Those vacancies were sent to us and we were invited to submit to Immigration, or the Department of Labour,
Bahamians who were qualified for those positions. “For some reason the Department of Labour discontinued it, and we got no further information from them, so I am glad they have decided to reintroduce it again. In other words we were a part of the exercise; the unions were a part of it, my union, the BHMA, we dealt with managerial and supervisory workers in the hotel industry. “We were notified every month, and we were not only able to deal with people who were involved in the hotel industry but people who were involved in other industries like banking and so on. So it’s a good thing, but you have to have the unions involved because we are the representatives of those workers. “We would know of availability and when they occur. We would know of dismissals, we would know of a number of persons who have been made redundant but have the skills, so it is a matter of adapting. So I wouldn’t want to say it failed, but what I can say is that the architects and those who were responsible for administering the policy, they seemed to have gotten a little lax.” Theresa Mortimer, president of the Bahamas Financial Services Union (BFSU), said she “totally agrees” with the intent behind Mr Pinder’s proposal. She said: “I think too many work permits go
out there for foreigners and there is no Bahamian understudying. Most of the time, Bahamians can get these jobs. “I find that, especially in the financial sector, a lot of people get let go just for them to bring their [foreign] peers in, and when their peers come in they have to pay for housing, they have to pay for a car, they pay for everything for their counterparts that come from these foreign places, while in Nassau our people suffer. “So I totally agree with it. I feel like this was something that should have been said a long time ago. Even in the commercial banks, where you have persons coming even though they come from Barbados or Trinidad, the point is they are coming here but why can’t someone here do the work, and what are they doing that someone here cannot do?” Responding to concerns that an “understudy” programme would raise employer costs, Ms Mortimer said: “I don’t think so, because my thing is when you bring a foreigner here you have to pay for a work permit, but when you get someone here from home you aren’t paying for a work permit, so that’s a saving within itself. I don’t see bringing a foreign here driving up the cost - it’s driving up the cost for the foreigner, but not for the locals at home. “We have too many of
our young people coming back with degrees. Just earlier this year a young lady said to me: ‘How am I ever going to get the experience if no one gives me a chance?’ She has the degree and she is saying to me I don’t have the experience. I keep telling people you can’t have the experience and the degree; you have to suffer one for the other. “But the point is if they have the degree, why not give them a chance. Let’s say give them a six-month training. Let’s see how this can work out. But you find some people can work without the paper, and you find some people who have the paper and can’t work.” Ms Mortimer added: “I think our problem is we need to learn to meet our people on a scale. We look like we are willing to take a chance on a foreigner but not a Bahamian on the scale. “I said this to the immigration man (former minister for immigration, Brent Symonette) the other day. I feel before you even give out a work permit for a foreigner to come in and take up the work, we need to look at our people; we need to give our own people a chance. “I don’t think Bahamians get a chance at showing their skills or showing what they can do because they are told too often they don’t have the experience.”
‘Stop beating up on private sector’ FROM PAGE ONE really seemed to move beyond talk and fizzled out both times. Mr Myers said he understood and appreciated Mr Pinder’s intent when talking about middle management and line staff positions, but questioned how the “understudy” idea would work in practice for upper management and executive posts - especially those that required undergraduate and master’s degrees needing four to six years’ worth of university study. Questioning whether such a policy would require companies to finance someone’s tertiary education, Mr Myers said of the proposal: “It’s a very broad statement. It needs a bit more clarity. In senior management positions most companies want people with ten to 15 years’ experience, and a diploma
and specialisation. “I understand it in the more minimal positions, but not in senior executive management positions. It’s not realistic. Who am I going to name? I’m not putting someone through school, and if there’s not a Bahamian with a degree for that position where am I finding that understudy? “What if they don’t want to work for my company or are not a graduate? What if I need a structural engineer and there’s no one available or, if there is, they don’t have the experience needed? It strikes me what he’s referring to is middle management and line staff, and I don’t have a problem with that.’ Mr Myers argued that what Mr Pinder was proposing was unnecessary since many Bahamian companies, including his own, already have internal
training programmes providing upward mobility for their staff. “My companies already do that,” he told Tribune Business. “We have internal training programmes. We don’t do that because the law or some government policy requires us to do that... Those persons have upward mobility and something to look forward to with promotion. I don’t need government to tell me that; we’re doing it already. “In upper and executive management, if there were Bahamians available I’d hire them. There’s just not enough people. Sixty percent of graduates are not coming back to The Bahamas because it’s too small a market. Tell him [Mr Pinder] to try and start getting some of those graduates to come back. “You’re making it like the private sector is only
interested in hiring foreigners. We want to hire competent people, and there are not enough competent people in The Bahamas. We’re not actively trying to hire foreigners; it will be fabulous to hire Bahamians if they are competent and suitable to work in our environment,” Mr Myers continued. “Otherwise we create entitlement through the same policy, and we have a big problem with productivity, efficiency and things like that. A broad statement like that is concerning to the private sector. Your still throwing your weight around and it just doesn’t do any good.” While Mr Pinder’s intent is likely to ensure that Bahamians are equipped with the skills necessary for upward mobility in the workforce, and that qualified local workers obtain
jobs that match their qualifications once they become available, employers may view it as unwarranted government interference in trying to dictate their hiring practices. They will also be concerned as to whether they will still be able to hire the specialist and skilled expatriate labour they need for the smooth running of their operations - something Mr Myers said is critical not only to individual company productivity but wider Bahamian economic growth. “We should be free to hire who we want. If we can find suitable Bahamians we’ll hire them,” Mr Myers said. “The problem we’ve had, including the Government, is we can’t find the right people. Only 30 percent of young adults have a ‘C’ BGCSE grade, and of those only 30 percent go to college. And, of those, 60 percent don’t come back. “We’re scrapping for a few people, and that is predominantly because the education system is failing, and has failed our young people for decades. There’s a brain drain going on, coupled with the inadequacies in the education system to provide cognitive, literate and numerate people with upward mobility in the workforce. “He [Mr Pinder] should start looking at education and stop beating up on the
private sector. This is an education problem, not a private sector problem. Tell him to give Jeff Lloyd [minister of education] a call if he wants to improve education standards and stop beating up on the private sector like it’s our problem because it’s not,” he told Tribune Business. “Most businesses are doing their best to train people internally to meet our demand for workers. Lack of people is causing a lack of growth in the country.... Growth is hampered by the fact there are not enough people that are literate, numerate and have cognitive skills to learn on the job in the work environment. These guys are just unbelievable.” Tribune Business understands that private sector leaders, including the Chamber of Commerce, were sufficiently alarmed by the content and timelines laid out in Mr Pinder’s comments to meet with him and other labour officials on the day they were published. This newspaper was told that Mr Pinder was to release a statement “clarifying” his remarks and their intended meeting, but nothing has been issued in the week since they were made. Tribune Business was told that the director of labour was on leave when it tried to contact him yesterday, and that he is due to return to office today.
ORDER BY DEMAND TO CEASED AND TO DECIST AND TO ACKNOWLEDGE HEIRSHIP/JUS IN RE PROPRIA NOTICES (In Ref. To Real Property, Lot 75)
THIS ORDER BY DEMAND NOTICES IS TO EVERY ONE AND ANY ONE TO CEASE AND TO DECIST, AND TO VACATE THE PREMISES, SITUATED ON FIRE TRAIL ROAD, IN THE WESTERN DISTRICT OF NEW PROVIDENCE, NASSAU, BAHAMAS (LOT SEVENTY-FIVE, LOT 75). An Affidavit of “Heirship/Jus In Re Propria, which gives Winnifred Ferguson, the Successor to the late Miriam Ferguson Brice, “All Rights and Interest, “Civil and Legal Over Land itself, and shall Hereby be against any one and every one, Absolutely. (See Affidavit of Heirship Jus In Re Propria dated March 5, 2019 ACTION No 2010/PRO/CPR/00037 and Case # 18-CIV-60253-WPD IN THE U.S. District Court.
THE TRIBUNE
XMAS JEWELLERY SALES BETTER THAN EXPECTED
By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net
MANY Bahamian jewellery retailers shrugged off early holiday season pessimism to report “good” Christmas sales that beat 2018 figures by up to eight percent. Denise Cooper, area retail manager for Colombian Emeralds, told Tribune Business: “This is our best year yet. Best one we have had in a little while. We were up eight percent from last year with our smaller items moving more than the larger ones. “We’re hoping that this would carry on into the New Year, but the majority of our sales - some 90 percent of our sales - came from locals. You know that in January locals don’t really spend, so we have to go back and depend on our tourists. Last year we had 75 percent of our sales that
came from locals, with the rest from our tourists.” Ms Cooper added: “Bear in mind I include our Freeport stores in this increase as well, and you know the situation in Freeport with Hurricane Dorian, which attributed to a small increase, but overall it is still an increase and we are happy.” Andrew Parker, marketing manager for the Coin of the Realm, said of the Christmas season: “The volume is up and it is a good year.” He was unable to give a percentage on how much sales had increased compared to the prior year, and added: “We haven’t calculated that yet. We won’t calculate that until after New Year’s Eve for the end of the month.” Navin Biswal, chief financial officer for Park Lane Jewellers, said: “Christmas sales were good, but it is down from last year. I don’t
have the numbers by how much it was down compared to last year, but I can say that smaller items were moving more than the larger items this year.” Prior to Christmas Eve, some downtown Nassau jewellers had told Tribune Business they were concerned the festive spending season will be a softer than usual, with one saying: “We were a bit concerned because Christmas falls during the middle of the week, and whenever that happens business is normally a little different.” Another told this newspaper that their Christmas season forecast was “not particularly outstanding”, blaming this on “a combination of things” from Hurricane Dorian to the value-added tax increase, in addition to the gap between the cost of living and what persons have to spend “widening”.
PM told: ‘Treat $2bn insurers with respect’ FROM PAGE ONE Mr Saunders yesterday said he wanted to avoid getting into any ‘blame game’ or finger-pointing in relation to the prime minister’s comments, but revealed that he “just laughed” when he saw them in the newspaper. “Treat the insurance industry with the respect it deserves and call a meeting,” the RoyalStar chief told Tribune Business. “We’re all big boys. The industry didn’t even get access to Abaco for the first two weeks because the government, rightfully so, said they didn’t want us there until they did what they had to do. “If the prime minister has a problem with the insurance industry he has all the resources to call a meeting with all its executives, some
Most Bahamians to miss growth benefits
FROM PAGE ONE
Concerns over income inequality, and a widening gap between rich and poor stemming from a middle class ‘squeeze’, have been voiced periodically ever since the 2008-2009 recession. Real per capita incomes took ten years to recover to their pre-recession levels, hitting this mark only in 2017. Sir Franklyn, meanwhile, suggested that K Peter Turnquest, deputy prime minister, may come under pressure from his Cabinet colleagues to loosen spending and other fiscal controls in a bid to shore up the government’s popularity just over half-way through its term in office. Asked about the government’s ability to avoid a further sovereign credit rating downgrade post-Dorian, he replied: “Minster Turnquest, he is really giving it a good shot. He is trying. I’m sure he will do his personal best to try and avoid it. “I get the sense that there’s some restlessness within the Cabinet. They sense the popularity of the government is
of whom he knows personally, and ask us what the hell is going on.” Sir Franklyn Wilson, RoyalStar Assurance’s chairman, told Tribune Business he, too, was unsure what the prime minister meant by his remarks that the insurance industry’s processes were “holding back” post-Dorian reconstruction. “I see the prime minister making comments that the insurance industry is slow, but in the case of RoyalStar where I am chairman we’ve done yeoman’s work. I don’t know what the prime minister is alluding to, but most of our adjusters were set to go home before Christmas because their work, their task was effectively done,” Sir Franklyn added yesterday. Mr Saunders had earlier this month told Tribune Business that RoyalStar
had settled around 80 percent of its roughly 1,800 Dorian claims, while his Bahamas First counterpart, Patrick Ward, had revealed that 50 percent of its 2,000 claims had been paid out and agreed. “The industry has proven its weight and value,” Mr Saunders said then, “and doesn’t get as much credit as it deserves for being an economic stabilising force in The Bahamas. Imagine if the insurance industry was not here. Who else is going to pay that additional $2bn. “Every claim we are responsible for internally, all of our reinsurers, all of our network partners, we have a gross reserve of $325m. All in we have a total of 1,800 claims, and of those 1,800 claims we have satisfied and settled 80 percent of those. We’re slightly ahead of expected pace.”
not trending in a favourable direction, so they will push the minister of finance to do things which may not be consistent with avoiding that downgrade. I think a lot truly depends on the extent to which the Minister of Finance can be strong in the face of pressure from his own Cabinet colleagues.” The government previously revealed it will have to seek Parliamentary approval to borrow an extra $508m to finance post-Hurricane Dorian reconstruction, blowing out its projected 2019-2020 fiscal deficit to $677.5m from the initially projected $137m. Its Fiscal Strategy Report also shows it borrowing a further $499m in 2020-2021, and $301.2m in 2021-2022, meaning that the Minnis administration is forecasting it will need to borrow some $1.479bn over its final three years in office and taking the national debt to nearly $9.5bn. The likes of Standard & Poor’s (S&P) and Moody’s have effectively taken a waitand-see approach, though, seemingly preferring to assess how The Bahamas manages the post-Dorian fall-out and whether it can restrain any unnecessary spending before moving to again narrow the deficit. Sir Franklyn yesterday urged Mr Turnquest to follow
“the Paul Adderley model” and “put country before party” in how he handles the public finances in the aftermath of the category five storm. He added that it was “likely to be significant” that Mr Turnquest was finance minister, rather than the prime minister, which was the structure employed by all Dr Hubert Minnis’ predecessors. “Thank God that we do not have that model where the prime minister is the de facto minister of finance,” Sir Franklyn told Tribune Business. “Experience has shown whether it was Pindling, Ingraham or Christie, it’s hard under that model to resist pressure to open up the purse. “Thank God we don’t have that model today. Hopefully, the deputy prime minister has the ability on his part to say: ‘Man, let’s not look at this thing in the short run’. The late Paul Adderley increased taxes right before the 1992 general election. He had to know that what he was doing was good for the country even if it was bad for the party. “I say to Mr Turnquest: ‘Keep in mind the Paul Adderley model’. Do the right thing. If you do the right thing for the country it may not be good for the party, but country first.”
Tuesday, December 31, 2019, PAGE 3
Govt urged: ‘Get a move on’ over post-Dorian plan By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net THE Abaco Chamber of Commerce’s president yesterday urged the government to “get a move on” in developing a comprehensive plan for the island’s post-Hurricane Dorian revival. Ken Hutton reiterated to Tribune Business that there will be no major improvement in Marsh Harbour until its main strip is fully cleared of all debris, and a structured road map for its reconstruction is agreed by all stakeholders. “The longer we take to put together a plan then the harder it will be to control things moving forward,” he said. Mr Hutton added that the government also needed to control “persons rebuilding sub-standard
BPL fuel charge probe ‘first step’ over regulation FROM PAGE ONE
“troubling trends” in how it has been calculating fuel charges. The regulator, in its justreleased 2020 draft annual plan and budget, pledged to impose “clear regulatory oversight” over how BPL determines this portion of customer bills given that it can create “inefficiencies causing significant cost to consumers”. Identifying this as a major 2020 priority, URCA revealed it plans to “develop a comprehensive methodology” for how such fuel charges are calculated and applied at both BPL and throughout the wider Bahamian energy industry. It admitted it had wanted to undertake such a “regulatory intervention” in 2019, but was thwarted by a “lack of available resources” - something that has plagued URCA’s efforts to oversee the Bahamian energy industry ever since it took on this responsibility in 2016. However, the regulator said its New Year’s objectives are to ensure “the fuel charge accurately reflects the actual cost of fuel used by BPL in providing electricity to its customers”, and that “the fuel charge only reflects the fair and efficient
accommodations”, and prevent them from “rebuilding in places where they shouldn’t be, and repairing structures that may not be structurally sound”. Mr Hutton said his message to the government was “to encourage them to get a move on”, while acknowledging that the sort of rebuilding plan required by Abaco takes time to develop and will not materialise overnight. The Abaco Chamber chief said more than 80 percent of homes in
central Abaco have been destroyed by Hurricane Dorian, and added: “The housing situation is precarious at best. They are being repaired, but are they being repaired to the standard? Is there mould remediation taking place? Are they adhering to a better building code, or are people just putting things together just to move into somewhere?” Mr Hutton, though, backed the government’s intention to make crown land available for the development of housing subdivisions so Abaconians can rebuild. “I think it is an excellent idea for the government to make crown land available for subdivisions,” he added, suggesting it can help control the “wayward construction” that may occur as a result of the current situation.
costs of fuel used, and does not pass on costs resulting from failures by BPL to properly manage its electricity system”. “Over the course of 2019, URCA has reviewed the gazetted rules pertaining to the calculation and application of the fuel charge, and tracked the posted fuel charge for the period,” it said, “noting trends which are of concern to URCA, particularly in relation to costs experienced during BPL’s period of supply challenges in New Providence during 2019. “In reviewing the need to address any possible harm and/or mischief that may have been caused to consumers through the fuel charge during the period, URCA is currently seeking to address BPL’s power quality deficiencies during 2019 through a comprehensive investigation.” URCA added that this probe will be able to address “any fuel charge impact” that BPL consumer suffered in 2019, and unveiled its “fuel cost recovery” regulation project for the new year. “Moving forward, and noting that the fuel charge mechanism can result in inefficiencies causing significant cost to consumers, URCA considers it necessary to ensure that there is clear regulatory oversight of the fuel charge approach wherever it is employed in The Bahamas,” URCA said. “URCA therefore
proposes during 2020 to develop a comprehensive methodology for the derivation and application of fuel charges within the sector.” The “fuel charge” portion of BPL bills is designed as a pass-through, meaning that the utility passes on to consumers the full costs associated with purchasing the fuel used to generate electricity. It is supposed to be a ‘cost recovery’ mechanism, meaning that BPL earns no profits from the fuel charge. However, there have long been suspicions that BPL uses the “fuel charge” to disguise inefficiencies elsewhere in its operations, and wraps other items into this levy that further burden Bahamian businesses and households besides the pure costs of fuel. The language in URCA’s draft 2020 annual plan will likely reinforce such fears, and suggests there may be some credibility to these concerns. The issue is a vital one for Bahamian households and businesses, especially if they are being forced to unduly pay for BPL’s inefficiencies, given the portion of customer bills that the fuel charge typically accounts for. URCA’s ambitions are also likely to be greeted with some scepticism given its confession that the energy sector has operated without effective regulatory scrutiny despite being handed this responsibility in 2016 with passage of the Electricity Act.
KEN HUTTON
LEGAL NOTICE
Notice International Business Companies Act (No. 45 of 2000)
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Legal Notice
NOTICE
Gritstone Investments Ltd. NOTICE IS HEREBY GIVEN as follows: (a) GRITSTONE INVESTMENTS LTD. 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 30th December, 2019 when its Articles of Dissolution were submitted to and registered by the Registrar General. (c) The Liquidator of the said Company is Delco Investments Limited of Deltec Bank & Trust Limited, Deltec House, Lyford Cay, P.O. Box N-3229, Nassau, Bahamas.
TONMARA HOLDINGS INTERNATIONAL LTD. In Voluntary Liquidation
Notice is hereby given that, in accordance with Section 138 (4) of the International Business Companies Act, (No. 45 of 2000), TONMARA HOLDINGS INTERNATIONAL LTD. (the “Company”) is in dissolution. The date of commencement of the dissolution is December 16, 2019. Jürg Lehmann is the Liquidator and can be contacted at Wilfriedstr. 7, 8032, Zurich, Switzerland. All persons having claims against the abovenamed Company are required to send their names, addresses and particulars of their debt or claims to the Liquidator before January 15, 2020. _____________________ Jürg Lehmann Liquidator
PUBLIC NOTICE THIS IS TO INFORM THE GENERAL PUBLIC THAT THE PRIVATE ROADWAYS AND PARKING AREAS SITUATED IN THE HARBOUR BAY SHOPPING CENTRE BETWEEN EAST BAY STREET AND SHIRLEY STREET WILL BE CLOSED ON WEDNESDAY, 1ST OF JANUARY, 2020 IN ORDER TO PRESERVE THE RIGHT OF OWNERSHIP THEREOF.
Dated this 30th day of December, A.D. 2019 Delco Investments Limited Liquidator
THE OWNERS
PAGE 4, Tuesday, December 31, 2019
THE TRIBUNE
Private sector is ‘100% ready’ on plastics ban FROM PAGE ONE
per month for this. So it is heavy. Let’s not forget we have the knife, fork and spoon that are also going, along with this same breakfast platter, which is now biodegradable also. But we have already started to transition,” he continued. “All of our inventory is in, and we have started to phase out, for example, a couple of sizes of the coffee cups and we have already moved to new ones. We have already transitioned to the breakfast platters, so as the old inventory phases out we already have the new inventory already sitting there waiting to transition over to. “I don’t know how the other folks are absorbing these costs. Did the government really think this through?,” Mr Cash asked. “I mean this is truly a real cost for this breakfast platter; this is the coffee cup, the platter, the knife and the fork. That is real cost. “For any vendor on the side of the road or anywhere, that new paper clamshell they are using, that is a new cost on a biodegradable knife and fork in the morning. So for them
LEGAL NOTICE
NOTICE
NOTICE
RD HOLDINGS LTD.
MAEKO INVESTMENTS INC.
NOTICE
Notice is hereby given that the above-named Company is in dissolution, commencing on the 20th day of December, 2019. Articles of Dissolution have been duly registered by the Registrar. The liquidator is AMICORP BAHAMAS MANAGEMENT LIMITED, of Nassau, Bahamas.
KISHMILL INC.
(In Voluntary Liquidation)
Notice is hereby given that the above-named Company is in dissolution, commencing on the 19th day of December, 2019. Articles of Dissolution have been duly registered by the Registrar. The liquidator is AMICORP BAHAMAS MANAGEMENT LIMITED, of Nassau, Bahamas.
Dated this 30th day of December, 2019
Dated this 23rd day of December, 2019 AMICORP BAHAMAS MANAGEMENT LIMITED LIQUIDATOR
AMICORP BAHAMAS MANAGEMENT LIMITED LIQUIDATOR
(242) 323-2330
NOTICE
(242) 323-2320
ALL SHARE INDEX: CLOSE: 2,210.32 | CHG: 5.33 | %CHG: 0.24 | YTD: 100.87 | YTD%: 4.78 BISX LISTED & TRADED SECURITIES 52WK HI 4.45 22.65 7.00 6.10 2.60 2.00 5.47 11.75 6.17 4.50 11.01 2.81 4.35 10.21 7.90 16.99 9.40 3.63 14.20
52WK LOW 3.35 20.91 4.90 4.46 1.45 0.22 2.00 9.50 5.60 3.95 6.75 2.35 1.76 8.00 6.25 12.15 6.80 3.01 13.01
SECURITY AML Foods Limited APD Limited Bahamas Property Fund Bahamas Waste Bank of Bahamas Benchmark Cable Bahamas CIBC FirstCaribbean Bank Colina Holdings Commonwealth Bank Commonwealth Brewery Consolidated Water BDRs Doctor's Hospital Emera Incorporated Famguard Fidelity Bank Finco Focol J. S. Johnson
SYMBOL AML APD BPF BWL BOB BBL CAB CIB CHL CBL CBB CWCB DHS EMAB FAM FBB FIN FCL JSJ
1000.00 1000.00 1000.00 1000.00
1000.00 1000.00 1000.00 1000.00
Cable Bahamas Series 6 Cable Bahamas Series 8 Cable Bahamas Series 9 Cable Bahamas Series 10 Colina Holdings Class A Fidelity Bank Class A Focol Class B
CAB6 CAB8 CAB9 CAB10 CHLA FBBA FCLB
PREFERENCE SHARES
1.00 10.00 1.00
CORPORATE DEBT - (percentage pricing) 52WK HI 100.00
52WK LOW 100.00
115.92 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
104.79 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
SECURITY Fidelity Bank Note 22 (Series B) +
SYMBOL FBB22
Bahamas Note 6.95 (2029) BGS: 2015-1-3Y BGS: 2014-12-5Y BGS: 2015-1-5Y BGS: 2014-12-7Y BGS: 2015-1-7Y BGS: 2014-12-30Y BGS: 2015-1-30Y BGS: 2015-6-3Y BGS: 2015-6-5Y BGS: 2015-6-7Y BGS: 2015-6-30Y BGS: 2015-10-3Y BGS: 2015-10-5Y BGS: 2015-10-7Y
BAH29 BG0203 BG0105 BG0205 BG0107 BG0207 BG0130 BG0230 BG0303 BG0305 BG0307 BG0330 BG0403 BG0405 BG0407
BAHAMAS GOVERNMENT STOCK - (percentage pricing)
LAST CLOSE 3.59 17.43 6.00 6.10 2.35 1.80 4.40 11.06 6.16 4.31 8.01 3.31 4.35 10.37 7.60 15.05 9.33 3.51 14.00
CLOSE 3.59 17.43 6.00 6.10 2.35 1.80 4.40 11.06 6.16 4.35 8.01 3.29 4.35 10.42 7.60 15.05 9.33 3.51 14.00
CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.04 0.00 -0.02 0.00 0.05 0.00 0.00 0.00 0.00 0.00
1000.00 1000.00 1000.00 1000.00 1.00 10.00 1.00
1000.00 1000.00 1000.00 1000.00 1.00 10.00 1.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00
CLOSE 100.00
CHANGE 0.00
107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
LAST SALE 100.00 107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
VOLUME 100
100,000
VOLUME
EPS$ 0.239 0.932 1.760 0.369 0.070 0.000 -0.438 0.722 0.449 0.184 0.140 0.102 0.467 0.646 0.728 0.816 0.939 0.203 0.631
DIV$ 0.170 1.260 0.000 0.260 0.000 0.020 0.000 0.720 0.220 0.120 0.000 0.434 0.060 0.328 0.240 0.540 0.200 0.120 0.610
0.000 0.000 0.000 0.000 0.000 0.000 0.000
0.000 0.000 0.000 0.000 0.000 0.000 0.000
P/E 15.0 18.7 N/M 16.5 N/M N/M -10.0 15.3 13.7 23.6 57.2 32.3 9.3 16.1 10.4 18.4 9.9 17.3 22.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0
YIELD 4.74% 7.23% 0.00% 4.26% 0.00% 1.11% 0.00% 6.51% 3.57% 2.76% 0.00% 13.19% 1.38% 3.15% 3.16% 3.59% 2.14% 3.42% 4.36% 0.00% 0.00% 0.00% 0.00% 6.25% 7.00% 6.50%
INTEREST Prime + 1.75%
MATURITY 19-Oct-2022
6.95% 4.00% 4.25% 4.25% 4.50% 4.50% 6.25% 6.25% 4.00% 4.25% 4.50% 6.25% 3.50% 3.88% 4.25%
20-Nov-2029 30-Jul-2018 16-Dec-2019 30-Jul-2020 15-Dec-2021 30-Jul-2022 15-Dec-2044 30-Jul-2045 26-Jun-2018 26-Jun-2020 26-Jun-2022 26-Jun-2045 15-Oct-2018 15-Oct-2020 15-Oct-2022
YTD% 12 MTH% 3.06% 3.81% 1.91% 3.39% 2.23% 2.75% 4.99% 6.20% 7.18% -0.08% 2.88% 3.80% 4.56% 6.50% 3.35% 4.17% 5.77% 7.89% 10.91% 11.57% 17.57% 18.60% 4.72% 5.08% 13.44% 13.49% 5.38% 5.44% 3.28% 3.80% N/A N/A 10.80% 2.60% 10.40% -4.00%
NAV Date 31-Oct-2019 31-Oct-2019 25-Oct-2019 30-Sep-2019 30-Sep-2019 30-Sep-2019 30-Sep-2019 30-Sep-2019 30-Sep-2019 30-Nov-2019 30-Nov-2019 30-Nov-2019 30-Nov-2019 30-Nov-2019 30-Nov-2019
MUTUAL FUNDS 52WK LOW 1.67 3.04 1.68 164.74 116.70 1.58 1.69 1.66 1.09 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 Bond Fund CFAL Global Equity Fund Leno Preferred Income Fund Leno Growth Fund Leno Diversified Fund Leno Global USD Bond Fund Royal Fidelity Bahamas Opportunities Fund - Secured Balanced Fund Royal Fidelity Bahamas Opportunities Fund - Targeted Equity Fund Royal Fidelity Bahamas Opportunities Fund - Prime Income Fund Royal Fidelity Int'l Fund - Equities Sub Fund Royal Fidelity Int'l Fund - High Yield Fund Royal Fidelity Int'l Fund - Alternative Strategies Fund Colonial Bahamas Fund Class D Colonial Bahamas Fund Class E Colonial Bahamas Fund Class F
NAV 2.27 4.32 2.08 193.72 158.42 1.65 1.82 1.74 1.19 8.29 10.16 6.91 11.76 12.32 10.72 N/A 8.98 11.40
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
Notice is hereby given that in accordance with Section 138(4) of the International Business Companies Act. 2000, KISHMILL INC. is in dissolution as of December 27, 2019.
L I QU I D A T O R
www.bisxbahamas.com
MONDAY, 30 DECEMBER 2019
In Voluntary Liquidation
International Liquidator Services Inc. situated at 3rd Floor Whitfield Tower, 4792 Coney Drive, Belize City, Belize is the Liquidator.
MARKET REPORT
52WK HI 2.27 4.32 2.08 194.86 158.57 1.65 1.82 1.74 1.21 8.31 10.26 6.91 11.76 12.32 10.74 10.00 8.98 11.79
for a plastic bag but they say that for five years people have been bringing down tote-bags to pack groceries.” Mr Roberts said the cost of switching from plastic bags to environmentally-friendly options was about “a third or 50 percent more. I believe in my mind it’s about from $50 to $70 per 2,000.” He added: “I thought five years ago that scientists said they would accept biodegradable. I thought five years ago biodegradable would be accepted and we switched to biodegradable and, of course, you take them in your workshop or you put something in them and you hang them up, and in six months they are in half-inch pieces. But now the compostables would disintegrate into powder. “One of the things that our generation has been used to, and fortunately the youth are being taught, and I think they think a lot different from us; they would never discard a plastic bag or throw a piece of plastic into the ocean. I think the crowd coming up behind us, if we don’t save the world they will, and that is very encouraging. “They are more thoughtful than us and are going to do better than us. That helps the situation. It just seems that everybody is on board, and you hear a lot of fun and jokes and a lot of negativity, but the people with the fun and jokes and negativity, they are on board and they know we have to go in this direction.”
LEGAL NOTICE
(In Voluntary Liquidation)
1.00 10.00 1.00
that is at least a 25 cent cost increase. I don’t know what that clamshell is going to cost, but that knife and fork is going to get up there.” However, Rupert Roberts, Super Value’s principal, told Tribune Business: “We are ready and prepared, and we think it’s going to go well.” Responding to concerns that the switch from singleuse plastic bags to more environmentally-friendly ones will drive up grocery costs, Mr Roberts said: “I don’t know. If a customer spends $200 and it gets in one bag, it will be 25 cents, and if it gets in two bags it will be 50 cents. “So I don’t think it’s going to be a biggie. I really think in six months, when the plastics are out of the way, we’ll be using compostable and we should go back to free bags, unless government wants to do something on that. “We do have compostable bags coming in in May; that’s the earliest we can get them, but we do have six months to get rid of plastics and we should be able to go back to free. But it’s hardly a percentage on the grocery shopping. We won’t be able to get compostable bags until May or June, so our customers will be spending 25 cents per bag up until May or June. When we were aware of what we had to do we ordered, and that’s when we expect them to come in,” added Mr Roberts. “We are very late and should have acted earlier.. I checked with Canada yesterday, and they are charging
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 | COLONIAL 242-502-7525 | LENO 242-396-3225 | BENCHMARK 242-326-7333
30-Sep-2019 30-Sep-2019 30-Sep-2019
NOTICE is hereby given that NATASHA SIMON of London Avenue off Carmichael Road, New Providence, Bahamas is applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 31st day of December, 2019 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
NOTICE NOTICE is hereby given that FERDINAND WALTER WINGENROTH of 20985 Main Street, P.O.Box L7K1R6 Caledon Ontario, Canada 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 24th day of December 2019 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
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