THE Opposition’s finance chief yesterday asserted he is “at a loss” over why the Prime Minister is standing by the $70m full-year deficit target despite overshooting this more than five-fold after just six months.
Philip Davis KC, unveiling the mid-year Budget in the House of Assembly, sought to soothe concerns over the near-$400m deficit at end-December 2024 by reiterating the Government’s oft-stated position that “there is no need for alarm with respect to our ability to achieve our fiscal targets”.
To justify this stance, he argued that revenue and spending trends had left his administration “comfortable that we will stay in line with the Budget” and produce a yearend deficit equal to 0.5 percent of economic output or gross domestic product (GDP). Mr Davis also voiced confidence the Government will achieve its 23.3 percent revenue-to-GDP target following “record” half-year revenues of $1.44bn for the first six months.
However, while the Prime Minister touted both the revenue numbers and success of the Government’s tax enforcement/compliance initiatives, little was announced by way of new measures or actions that would help close the gap between the full-year and half-year deficits. Tribune Business previously reported that a fiscal surplus four times’ greater than the $72m generated in the 2023-2024 second half is needed to achieve this.
Kwasi Thompson, the Opposition’s finance spokesman, told this newspaper he heard
THURSDAY, FEBRUARY 27, 2025
targets Bahamas’ ‘junk’ escape
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
THE Government must transform some in the “bloated” civil service from “burners to earners” and generate annual 5 percent GDP growth to return The Bahamas to ‘investment grade’ status within three years.
Robert Myers, a former Bahamas Chamber of Commerce and Employers Confederation (BCCEC) chairman, yesterday told Tribune Business that the Prime Minister’s ambitions to escape ‘junk’ status with both Moody’s and Standard & Poor’s (S&P) in this timeframe is “achievable” if this nation can get movement “in both directions”.
this much-higher growth rate, Mr Myers renewed his and others’ calls for a renewed focus on improving the ease of doing business.
Reducing the public service’s size, and switching those impacted to private sector employment, would result in these persons generating tax revenues as opposed to these monies being spent on them - what Mr Myers describes as “from burners to earners”. And, to pull-off such a switch without causing economic hardship and dislocation, he reiterated that The Bahamas must break-out of its historical ‘low growth’ cycle.
Speaking after Prime Minister Philip Davis KC delivered the mid-year Budget in the House of Assembly, he told
this newspaper that consistent annual 5 percent growth was essential to not only absorb those impacted but would increase tax-generating economic activity. To achieve
Gov’t facing $552m guarantees for
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
THE Government potentially faces having to guarantee almost $552m on behalf of the very state-owned enterprises (SOEs) that the Prime Minister yesterday identified as a major “risk” to its financial well-being.
Information released with the mid-year Budget discloses that the “proposed
guarantees” required by nine separate SOEs range in size from $8m to $167m to reinforce Philip Davis KC’s warning that their reliance on the Government to underwrite financial support presents “considerable fiscal challenges”.
Besides the $8m that may be required by the Bridge Authority to finance bridge maintenance, Bahamasair is said to need $60.992m for the repair of aircraft engines
and to finance a new fleet. Then there is some $37.081m required by the Bahamas Development Bank (BDB) for “operational funding”; $20m sought by the Educational Loan Authority for similar reasons; and $49.192m for Water & Sewerage Corporation activities.
Other agencies named are the Public Hospitals Authority (PHA), which is seeking $35.316m to fund construction of a new Critical Care
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
Mr Davis yesterday disclosed that the Government has also hired a third credit rating agency, Fitch, to assess The Bahamas’ creditworthiness, fiscal position and economic prospect as part of the strategy to restore this nation to ‘investment grade’ status. And, as part of proving The Bahamas can still access the international bond and
SOEs
Block, plus the Clifton Heritage Authority which is eyeing $24m for “operational funding and development of the Clifton Heritage Park”. The two biggest potential guarantees, though, are being sought by the Bahamas Mortgage Corporation and Bahamas Resolve. The former is seeking to obtain $150m for “operational funding” while Bahamas Resolve, the bail-out vehicle, likely
THE Prime Minister yesterday revealed his response to International Monetary Fund (IMF) recommendations that The Bahamas increase its VAT rate to 15 percent was:
“Hell no.”
Philip Davis KC, unveiling the mid-year Budget in the House of Assembly, said the “record” $1.44bn revenues generated during the 2024-2025 fiscal year’s first half had occurred “despite the recommendation from the IMF to raise the VAT rate to 15 percent in line with what they call my regional colleagues. Hell no.
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
THE Government spent 73 percent, or more than two-thirds, of the $60.275m allocated for its Budget Reserve Appropriation fund during the 2024-2025 fiscal year’s first-half, it was revealed yesterday. Data released with the mid-year Budget showed some $29.387m was used to cover recurrent or fixedcost spending during the six months to end-December 2024, while another
“Let me put it this way,” he added. “It was their recommendation. They recommended it. It was for me to decide whether to accept it. We decided against raising it to 15 percent as was being planned. Thank God for September 16, 2021. We brought it down.” Mr Davis’s reference to the general election date implied that the Minnis administration was preparing to raise taxes had it been voted back into office, whereas his administration rejected the external
$14.893, was employed for capital expenditure purposes for a combined total of $44.281m. Of the recurrent sums, the greatest was $11.057m paid to the National Insurance Board (NIB) to cover costs associated with the National Prescription Drug plan. However, the use of other monies was somewhat vague, including more than $4m that was employed by the Prime Minister’s Office to cover “payment for supply of water” and
ROBERT MYERS GOWON BOWE
PHILIP DAVIS KC
KWASI THOMPSON
Bahamian cocktail bar gains ‘50 Best’ ranking
BON Vivants, the Bahamian café and craft cocktail bar, in the ‘50 Best Discovery’ rankings for 2025.
The business, in a statement, said the rankings are an extension of the globally-renowned 50 Best organisation, which publishes the celebrated World’s 50 Best Bars rankings. 50 Best Discovery features restaurants, bars and hotels based on the most recent round
of voting for its 50 Best rankings. “We are so thrilled to be part of 50 Best Discovery” said Kyle Jones, co-founder and managing director of Old Pal Hospitality, which includes Bon Vivants as well as The Dilly Club in Atlantis’ Marina Village
“This recognition is a testament to the incredible work and vision of our team, and the overwhelming support from both the local and international
community over the last five years. We’ve had a blast showcasing Bahamian hospitality and craftsmanship on the global stage, and we can’t wait to see what’s next.”
Bon Vivants said the recognition is a mark of distinction reserved for establishments that exemplify exceptional quality, innovation and hospitality on a global scale. Since opening in 2019 as a true craft cocktail
bar, Bon Vivants said it has achieved two regional top-ten honours from the globally-recognised Tales of The Cocktail Spirited Awards - one in 2020 as Best New International Cocktail Bar, and the other in 2024 as Best International Cocktail Bar. Both were for the Latin American and Caribbean region.
Bon Vivants serves locally-roasted espresso beverages by day and meticulously-crafted
cocktails by night, including many inspired by the culture and flavours of The Bahamas. It has a broad selection of pre-prohibition classic cocktails, and a range of some of the world’s best spirits.
Bon Vivants has partnered with top international bars and bartenders, including the World’s 50 Best-listed Scarfes Bar in London, Etérea in New York, and Christian ‘Suzu’ Suzuki.
PM PLEDGES SIMPLER TAX FILING VIA ‘ONETAX’ PORTAL
By NEIL HARTNELL
THE Prime Minister yesterday pledged the Government’s new “OneTax” portal will make paying taxes easier and simpler as he hailed the revenue generated by enhanced compliance and enforcement efforts.
Philip Davis KC, unveiling the mid-year Budget in the House of Assembly, asserted that the Department of Inland Revenue (DIR) is “taking a big step toward digital progress” via a new online portal that will make tax payments and their administration more efficient for all parties involved. He added that the tax authority is working with the KPMG accounting firm and an Indian company on the initiative.
“We’re taking a big step toward digital progress with the OneTax Bahamas Portal, a new online platform that will make paying taxes easier for everyone,” the Prime Minister said.
“We’ve partnered with KPMG and LTI Mindtree Ltd, a technology company from India, to build a simple and efficient system that will help the Department of Inland Revenue work better and more transparently.
“This will make it easier for businesses and individuals to pay their taxes,
improve collections and reduce paperwork. By using the latest technology, we’re making the tax system more efficient and accessible, helping with national growth and better tax compliance.”
While businesses will welcome any online portal that reduces the stress associated with filing tax returns, and making VAT, Business Licence and real property tax payments, they are likely to be wary of further reforms and changes especially coming so soon after the problems encountered with the Department of Inland Revenue’s current online portal when it was first introduced in 2024. Meanwhile, Mr Davis reiterated his complaint that the Government is not gaining its rightful revenue from VAT levied on high-end property sales - especially commercial buildings and those owned by foreigners. And he added that his administration was seeking to implement a real property tax relief initiative for individuals and families genuinely needing “financial assistance” but provided no details.
Real property tax revenues increased by 45.2 percent year-over-year during the first six months of the 2024-2025 financial year to hit $68.6m, equivalent to 29.8 percent of the full-year forecast. “This rise was driven by an 83.4
percent increase for collection of property taxes on commercial property, and a 77.9 percent increase from property taxes collected on foreign-owned undeveloped land,” Mr Davis said.
“Compared to the same six-month period three years ago, property tax collection this year has doubled, growing by $31.8m.”
He added, though, that the Government is seeking to implement tax relief for those struggling to meet their tax obligations while, at the same time, tightening the enforcement net on high-end property owners who it suspects of evading/avoiding VAT on the purchase.
“This administration is dedicated to implementing a property tax relief programme, designed specifically to provide assistance to individuals and families who find themselves in genuine financial need. Ultimately, this effort is part of a broader commitment to enhance the quality of life for all citizens and to foster a more inclusive economy where everyone has the opportunity to thrive, regardless of their financial circumstances,” Mr Davis said.
Then, turning immediately to compliance, the Prime Minister added: “Over the past three years, the real estate sector has publicly and consistently highlighted a growing
Cruise lines’ private islands ‘akin to many mega resorts’
By FAY SIMMONS Tribune Business Reporter
PRIME Minister Philip Davis said official growth estimates do not accurately reflect the “true scope” of the country’s economic activity and an assessment will be done on the full economic impact of the cruise industry.
During his mid-year budget contribution, Mr Davis said although the IMF predicts The Bahamas will have a 1.7 percent real GDP growth rate in 2025, he does not believe that it takes into account the fiscal and economic value of a large segment of the tourism industry.
He said a committee has been established to assess the economic impact of the industry that has already reviewed eight private destinations and collected data
that will be used to develop an “effective tax policy” for the industry.
“It is our belief that the official statistics presently available do not fully reflect the true scope of economic activity generated within The Bahamas,” said Mr Davis.
“One example is the growth in our cruise industry. We have established an inter-governmental committee entrusted with the task of assessing and analysing the economic and fiscal impacts of the cruise industry in our nation. To date, the committee has reviewed eight private destinations, and its findings will ultimately be integrated into our national economic data, thereby informing the development of a tailored and effective tax policy for the industry.”
He said the economic impact of private destinations is “akin” to
megaresorts and noted that they often have higher occupancy levels than hotels.
“Many of today’s megaships have more cabins than Baha Mar has rooms. Their average occupancy per voyage exceeds 90 percent, and most of their passengers disembark at private destinations in The Bahamas, where they engage in the purchase of goods and services. The economic and fiscal impact of private destinations in The Bahamas is akin to multiple mega resorts within our nation,” said Mr Davis.
He said tourism numbers in 2024 increased by 16.2 percent and cruise passengers served as the “primary driver” of that increase growing by 20.3 percent.
“This level of growth highlights a clear trend in our tourism sector, which continues to be a major
interest in Bahamian properties. During this period, one real estate company has enjoyed over $2bn in sales.
“Despite such growth, the anticipated benefits have not been reflected in the Government’s fiscal accounts, particularly as the VAT on real estate has underperformed. At present, the most straightforward means of establishing property ownership in The Bahamas involves the payment of VAT on real estate and the proper registration of property documents.
“Regrettably, many individuals have overlooked these essential steps, resulting in significant revenue losses for the Government due to the failure to formalise property ownership.” To crack down on tax avoidance, Mr Davis said the Department of Inland Revenue is now “logging and tracking” VAT due on real estate transactions.
It is also collaborating with Bahamian real estate agents “to determine property ownership, verify if a property has been sold, and to ensure that there are no taxes outstanding as it relates to real estate transactions”. And, before approving residency permits for foreign real estate buyers, the Department of Immigration has to require that all conveyances are stamped to prove VAT has
contributor to the economy.
This steady upward trajectory suggests a positive outlook for the industry moving forward, reflecting growing interest and demand in our destination,” said Mr Davis.
He added that the 8.7 percent unemployment rate is the lowest it has been since 2008 and the inflation rate for 2025 is projected to be 1.6 percent.
“The latest unemployment rate published by
been paid and a tax assessment number is attached.
Mr Davis disclosed that the recent “amnesty” for VAT and, before that, Stamp Tax owed on real estate conveyances not brought forward for stamping and payment of due taxes had netted the Government an average $7,760 from 816 persons. This sum, he added, showed that few large or high-value properties had come forward.
“During the first half of the current fiscal year, a total of 1,679 conveyances were processed for VAT stamp tax. Companies and foreign individuals together represent 42.3 percent of these conveyances, and account for 79.4 percent of the total revenue from VAT stamp tax on conveyances,” the Prime Minister added.
“In contrast, Bahamian companies and Bahamian individuals together contribute only 20.6 percent of the total revenue collected from this tax. These statistics are important because they show that VAT on real estate, as well as property taxes, are primarily incurred for and paid by foreign owners.
“For instance, the average VAT on real estate paid by a Bahamian is $9,133 whereas the average paid by a foreign owner is 11 times as much at $104,384.... For the first half of the current fiscal year, a total of 1,679 conveyance
BNSI was 8.7 percent, close to the lowest level of unemployment since 2008, and is down sharply from the peak of 26.2 percent recorded by the IMF for 2021. The rate of unemployment is expected to remain relatively stable at this lower level in the near term based on sustained growth in tourism and foreign direct investments,” said Mr Davis.
“Furthermore, The Bahamas’ most recent inflation
documents have been processed for VAT. Of this, foreign companies make up only 9 percent of the total but contribute 52.2 percent of the total revenue collected from the VAT stamp tax on conveyances.”
Mr Davis continued:
“These figures really show why enforcement for VAT on stamp tax is so important. The buoyancy of the high-end real estate market should accurately be reflected in the Government’s revenue receipts. Since the highest level of payment for taxes on real estate are paid by foreign owners, it is increasingly vital for the Government to ensure that it is capturing the full potential of this revenue stream.
“What is owed to the Government and the people of The Bahamas should be paid, especially by those who can afford it. Proper enforcement of VAT on stamp tax not only helps maintain the integrity of the tax system, but also ensures that the benefits sought out by foreign owners from a thriving real estate market in The Bahamas are realised in terms of increased government revenue.
“This revenue is essential for funding public services and infrastructure, and contributing to the overall economic well-being of The Bahamas. This is why it is
data as at November 2024 revealed a 1 percent drop in costs as compared to a 2 percent increase during the same period in November 2023. Notable reductions were experienced for transport, and restaurants and hotels. The cost of gasoline and diesel also fell by 9.5 percent and 12.3 percent, respectively. Inflation is forecasted at 1.6 percent for 2025.”
Golden Yolk no joke - as plans revealed to lessen bird flu risk
By ANNELIA NIXON Tribune Business Reporter
THE Ministry of Agriculture is seeking to lessen the risk of bird flu by utilising tetra brown chickens for the Golden Yolk programme, which will be sold to wholesalers.
Justin Taylor, during a tour of D&T farm, yesterday, said the red chicken which produces around 250 brown eggs a year, is “hearty” and fears well against diseases, making a suitable choice given the bird flu outbreak occurring in the US.
“It is known to be a very prolific breed of chickens,” Mr Taylor said. “They’re very docile and hardy. When I say hearty, they’re resistant
to diseases. Like right now we have the great endemic in the United States with the bird flu.
“From a scientific point of view, the bird flu is mainly passed through the migratory pathway of birds. So it started off in the west coast, California. So when it started off the west coast, actually what happened was birds started from the west and they continue east. And then when they continue east, farms were affected with 1 million, 2 million chickens. So a farm at 1 million, 2 million is so hard in terms of biosecurity. What I’m saying is biosecurity is, let’s say you could actually identify sick birds here, but if you have a 2m flock, it’s impossible. So we have small infection pressure here. And again part of this layer programme is, we’re
going to actually establish between Freeport, Grand Bahama in the north, we’re going to do the Central Bahamas and Grand Cay, Farmers Cay, we’re going to do Cat Island, Eleuthera. And so we’re going to be resilient. So let’s say if we have impact like our Dorian destroyed Abaco, we have other islands we could be resilient on so you can mitigate those risks.”
He added that the shelf life will last longer and eggs will be fresher than imported eggs.
“Much different. Because why? No traceability? The states have a last in, last out. So where they have some farms of 10 million chickens, they’re not going to sell you today’s egg with us today. So they’re going to get rid of those eggs like two months or whatever. Some
of the companies, they may not have the date when produced. The older the egg is, the less nutrients. You lose nutrients. So when you get these eggs today, you get all the vitamin B12s, the vitamin B complex, some called thymine lutein and the flaxseed which is rich in omega 3. These are actually good for cardiovascular diseases. So you getting as fresh as possible.”
Revealing 10,000 birds were brought in for the egg production industry, Minister of Agriculture Jomo Campbell said the selected vendors for the programme will sell their eggs to BAMSI or BAIC and they will be resold to the public at a cheaper rate. The programme is to aid in the reduction of the food import bill by 25 percent. Explaining the advantage of being
an archipelago building an egg production industry, he added that if one island experiences a problem with its chicken, the other islands can make up for it. “So now we have several different locations, islands and cays that are going to be totally self-sufficient with eggs,” Mr Campbell said. “So unlike some of our brothers and sister countries that are one landmass, when they’re impacted by a disease like bird flu, it wipes out everything. Fortunately for us in The Bahamas, if we have an outbreak in Andros, we’re able to alleviate that with our other islands that are separated by bodies of water. So we want to show people not just the natural sun, sand and sea beauty of it, but the fact that we have an advantage in an industry to ensure that what
policy framework that includes eligibility criteria, credit risk evaluations and guarantee fees.
we provide to the general public is safe and sound and will be consistent. And that’s the key for us.”
During the tour, the location of the feedmill was revealed. Mr Campbell said he does not want the Golden Yolk programme to be seen as a “golden joke,” adding that it is “real”.
He explained the benefits of the Bahamas being an archipelago versus a country that is one landmass, and how that helps to boost and bolster the egg production industry.
“The birds are real, the infrastructure is real, the land is real, the people are real and the benefits, the most important part for the Bahamian people, is as real as [it] could ever be.”
needs the Government to back stop the $167m bond injected into Bank of The Bahamas’ balance sheet because it has been unable to sell sufficient real estate securing the toxic commercial loans transferred to it. There is nothing to confirm that the Government will agree to guarantee all these financing needs and, certainly given their collective size, not all in this present fiscal year. The near-$552m represents a 153 percent, or more than
doubling, of the $218m in guarantees being sought at the same time in the 20232024 fiscal year.
The Davis administration, though, yesterday tabled resolutions seeking Parliament’s approval to guarantee some $150m in bank borrowings on behalf of four SOEs. One of these is to facilitate the PMH’s borrowing of $75m from a consortium of banks, headed by CIBC Caribbean (Bahamas), to finance “construction of the [new] Grand Bahama hospital and
repairs to the Princess Margaret Hospital (PMH)”.
Another is to guarantee a $50m loan from Scotiabank (Bahamas) to a special purpose vehicle (SPV), owned by either the Government or Water & Sewerage Corporation, “for the purpose of acquiring, upgrading and expanding Family Island water production operations”.
The remaining two loans, for $25m and $10m from the Bank of The Bahamas, are designed to assist the University of The Bahamas
(UoB) and Bahamas Technical and Vocational Institute (BTVI) with “accreditation”.
Mr Davis said yesterday: “Financial losses from state-owned enterprises and undisclosed liabilities present considerable fiscal challenges to the Government. The Government faces a fiscal risk by being a guarantor for loans linked to SOEs because the responsibility for interest payments inevitably shifts on to the national budget, creating a significant fiscal burden.
“We are tackling these problems head-on. The Government has commenced training for directors of SOEs, and established a guarantee
“Additionally, reforms are being considered for the water and healthcare sectors. The major reforms we are implementing in the energy sector will also play an important role, as they will dramatically reduce, and eventually end, the reliance of that sector on the Government.”
The Prime Minister added that legislation to reform civil service pensions, and begin to tackle the Government’s multi-billion dollar unfunded liabilities, will be brought to the Parliament by the time the 2025-2026 Budget is introduced at the end of May.
“The projected pension liabilities of the Government for public service employees are expected to
reach $3.5bn by 2030, and pension and gratuity payments now account for 5.8 percent of the recurrent expenditure budget,” he warned. “This has prompted the drafting of a new pension legislation aimed at shifting to a funded defined contributory pension plan.
“Prior to tabling this Bill, a white paper on the Pension Bill will be circulated to fully clarify the importance of taking action now. The tabling of the Pension Bill will be done during the upcoming Budget.” Mr Davis then identified cyber attacks as another major threat facing the Government and wider Bahamian economy.
“In 2025, every nation must consider the risks of cyber attacks, and we are no different. Cyber attacks have the potential to impact our national security, to cause substantial economic losses, and to affect our ability to provide public services,” he warned.
“We take the risk of cyber attacks very seriously for good reason. In fact, earlier this month a ransomware attack shut down the network at the University of The Bahamas, which they have since successfully worked to recover from with the support of the Government and industry partners.
“As of January 2024, our Government’s firewall had blocked 75 million malicious threats. It is estimated that the cost of one data breach could total $34.9m. This is why we are investing in cyber security” including “construction of a new tier three data centre to be owned by the Government”.
MARINE SECTOR NOT PAYING ENOUGH COMPARED TO OTHER VISITORS - PM
By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net
THE government will move forward with a strategic plan for the management of moorings, said Prime Minister Philip Davis yesterday, as he said the marine sector is “underrepresented” in revenue collections.
During his mid-year budget contribution, Mr Davis said marine areas are “economic assets and ecological sanctuaries” and policies must ensure the environment is protected.
He said foreign charters choose to anchor in the seabed instead of utilsing marinas and paying taxes like other cruise or stop over visitors and should compensate the government through mooring fees.
“This is perhaps a good moment to address a related issue, that of the placement, use, and maintenance of moorings throughout our archipelago. Our vast marine areas are both critical economic assets and ecological sanctuaries, and our policies must balance the needs of island residents, recreational boaters, and marina owners, while
PM
taking into consideration at all times the need for environmental protection and marine conservation,” said Mr Davis.
“Here again, we confront a situation in which our waters are being utilised, at a cost to Bahamians, but frequently without compensation to Bahamian business owners or Bahamian taxpayers. For example, consider the foreign charter who enters our waters, and does not dock at one of our marinas, but instead anchors on our seabed. Hotel and cruise visitors pay fees and taxes, and our position is that all visitors who cross our borders and enjoy our waters should do so.”
Mr Davis noted the Maritime Taskforce has brought in over $20m in additional revenue since it began inspecting vessels, recovering outstanding commercial dock fees, and reassessing coastal properties and mariners traversing our waters must “pay for that privilege” and although the government has cracked down on the industry the charter business is “thriving”.
He said placing and managing moorings is a “very expensive undertaking” and the short lived deal
explains
with Bahamas Moorings had to be terminated due to the company installing moorings before obtaining the necessary permits.
“The placement, inspection, and ongoing maintenance of hundreds of moorings over vast distances is a very expensive undertaking. There are multiple mooring sites throughout our Family Islands – for example, in Abaco, Eleuthera, and the Exumas. Those who manage the moorings earn the revenue generated from their use,” said Mr Davis.
“As many know, our government recently granted a Bahamian-owned company the right to install and operate moorings at specified locations in the Exumas, outside of our national marine reserve area. However, some moorings were installed before the company obtained necessary permissions, and a ceaseand-desist order was issued. The company has agreed to voluntarily relinquish their leases, and to remove any moorings already placed.”
He noted that “many Bahamians” were in favour of implementing and effectively managing moorings and broad consultation will be done with stakeholders
high expenditure as ‘front-loaded’ capital spending
By FAY SIMMONS Tribune Business
PRIME Minister Philip Davis said his administration “front-loaded” capital expenditure during the first half of the 2024/2025 fiscal budget leading to record expenditure early in the budget cycle.
During his mid-year budget contribution, Mr Davis said major capital expenditure was used to facilitate the construction of hospitals in Grand Bahama and New Providence, renovate the Princess Margaret Hospital, conduct roadworks, improve housing access and education investments.
He noted that capital expenditure accounted for 63.9 percent of this year’s fiscal budget, more than 60 percent of those funds were spent over the first half of the fiscal year, compared to the 30 percent that is usually spent in that timeframe. “As a result, major capital spending was
front-loaded within the first half of this fiscal year, and has been a key driver for the growth of expenditure. Capital expenditure for the first half of the fiscal year totalled $220.1m, an $86m increase over the same period in the previous year. Capital expenditure accounted for 63.9 percent of the annual budget target,” said Mr Davis. “Over the last ten years, capital spending has accounted for an average of approximately 30 percent of its budget within the first half of the fiscal year. This year was the first in over a decade where capital spending has been over 60 percent of its budget target in the first half of the year; nearly double the historical norm”
He said the majority of capital spending was done early in the budget cycle to ensure projects are completed on time and he intends to meet all budget targets as the majority of projects have already been funded.
“This administration made it a priority to
improve the efficiency of capital funding where we no longer wait until the last moment to start capital projects, causing fiscal distortions,” said Mr Davis.
“Although we have frontloaded capital funding in the first half of the fiscal year to begin and more efficiently execute projects, we intend to remain within the capital expenditure budget target for the remainder of the fiscal year since projects have already been mostly funded or have planned funding arrangements.”
Mr Davis said major capital expenditure during the first half of the fiscal year included: $36.8m for major roadworks; a $26.8m payment for capital subscriptions, inclusive of $25m to the Development Bank of Latin America and the Caribbean (CAF) as the first tranche in a $50m membership fee; $44.5m for building maintenance and repairs of educational facilities and construction of schools, along with an additional $11.4m for building repairs; $26.3m for acquisition of assets
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to develop a national stragic plan to manage moorings.
“As this matter has been discussed over the last few days, many Bahamians spoke in favour of improving participation in and oversight of the process governing moorings. That makes a lot of sense – our waters belong to all of us, and our marine policies can only benefit from broader and deeper public consultation. It is important to me that we have policies which Bahamians can contribute to and trust, which is why we have committed to moving forward with developing a new national strategic plan for the management of moorings,” said Mr Davis.
“Arrangements involving moorings have traditionally been handled ad hoc, and one at a time, within the existing legal and regulatory framework, but as science and technology and the climate are all in flux, we can benefit from updating and more clearly defining and implementing our country’s policies. We intend to move forward quickly to seek advice and input from citizens, local government officials, boaters, fishermen, marine owners, marine conservation experts, and others.”
for software, digitisation, and government services; $10.6m for machinery and equipment; $9.2m for Family Island development; $5m for sporting infrastructure development; $5m for airport infrastructure investment; $5m equity contribution to the Grand Bahama Health Centre Development Company; $3.4m for the removal of sunken vessels; and $3.2m on land improvement inclusive of parks and school ground improvements.
Country to stay ‘alert’ over US disputes with partners
By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net
THE Bahamas will “remain alert” for potential disruptions from trade disputes between the US and other global partners, Prime Minister Philip Davis said yesterday.
During the mid-year budget presentation, Mr Davis noted tensions between the US, our largest trading partner, and other countries could lead to an increase in the cost of imports and the overall cost of living for Bahamians. He said in addition to potential supply chain interruptions, any slowdown of the US economy could impact our tourism numbers and dampen exports to that market.
“It is crucial to recognise the impact that the potential trade disruption between major global economies, especially between the US and its trading partners, could have on our nation,” said Mr Davis.
“The US is our largest trading partner, accounting for a significant portion of our imports and exports, particularly in tourism, agriculture, and manufactured goods. Rising trade barriers or tariffs could increase the cost of imports, disrupt supply chains, and negatively affect the cost of living for Bahamian consumers. Moreover, any slowdown in US economic growth, which may result from these tensions, impacting consumer confidence could lead to reduced demand for our exports and a potential decline in tourism numbers.”
Mr Davis said in addition to monitoring the situation,
CIBC Caribbean Bank (Bahamas) Limited
we must diversify trading partners and strengthen regional trade relationships.
“We must remain alert, diversifying our markets, strengthening regional trade relationships, and exploring new trade opportunities to mitigate the potential effects of this global uncertainty on our economy,” said Mr Davis.
During the contribution, Mr Davis also announced his administration plans to secure an investment grade credit rating over the next three years and has engaged Fitch Ratings to assess the nation’s financial standing alongside Moody’s and S&P.
“Reaching this milestone would affirm The Bahamas’ strong creditworthiness and low investment risk, reinforcing our commitment to sound financial management. We intend to implement the necessary reforms to make this vision a reality,” said Mr Davis. He added that achieving investment grade will allow the country to access the international market without credit enhancements.
“Another aspect of achieving investment grade is to demonstrate that we can access the international market without credit enhancement and under normal conditions. In this regard, we will be tabling a borrowing resolution at the end of this communication for approval to access the international capital market at an appropriate time,” said Mr Davis. After his contribution, Mr Davis tabled a resolution seeking Parliament’s approval to borrow $300m to fund national development objectives, including infrastructure development projects.
Notice of Annual General Meeting
When: Thursday, March 20, 2025 at 4:00pm Bahamas time Where: Bahamas: https://web.lumiconnect.com/22203545
Meeting ID and Password: Shareholders who wish to attend the annual general meeting must contact us by March 18, 2025 at bahamasagm@cibcfcib.com to register and obtain credentials to join the meeting.
NOTICE is hereby given that the thirtieth annual general meeting of the shareholders of CIBC Caribbean Bank (Bahamas) Limited (the “Company”) will be held in The Bahamas on Thursday, March 20, 2025 at 4:00pm Bahamas time for the following purposes:
1. To receive audited accounts for the year ended October 31, 2024 and the report of the directors and auditors thereon.
2. To elect the following directors to serve until the next annual general meeting of the Company:
(i) Mr. Mark St. Hill
(ii) Dr. Jacqueline Bend
(iii) Mr. Brian Clarke
(iv) Mrs. Willie Moss
(v) Mr. Felix Stubbs
(vi) Mr. Craig Gomez
3. To appoint Ernst & Young Ltd. as auditors and to authorise the directors to fix their remuneration.
4. To discuss any other business which may be properly considered at the annual general meeting.
BY ORDER OF THE BOARD
Sherrylyn Bastian Legal Counsel & Corporate Secretary February 26, 2025
of meeting,
form.
‘At a loss’: But Davis sticks to $70m deficit
nothing in Mr Davis’ presentation to justify or explain the Government’s seeming confidence that it can come close to eradicating the $325m ‘gap’ separating the $394.8m half-year deficit from the full-year target of $69.8m during 2024-2025’s final six months.
And, pointing out that the $394.8m first-half deficit has occurred despite the Government’s record revenue income, the east Grand Bahama MP argued that this “tells the story as to the economic hole that The Bahamas is in”.
“We expected to hear the Government justify why they are sticking to their targets,” Mr Thompson said. “Unfortunately, I did not hear any explanation, we did not see any credible evidence as to why they are sticking to these targets.”
The Ministry of Finance last week blamed the $394.8m deficit for the six months to end-December 2024 on “front-loading” capital spending outlays for school repairs and critical roadworks. These expenditures were not broken down, but it hinted that this trend, which saw capital spending
increase by $86m or 64.1 percent to $220.1m yearover-year during the first six months, will not be repeated during the second half. However, it gave no explanation for the rampup in fixed cost spending during the 2024-2025 first half. Recurrent expenditure on civil salaries, rents and goods/services rose by $192.2m, or almost $200m, to strike $1.619bn during the six months to end-December 2024 when compared to the same period in the prior year.
Much of the $192.2m increase, some $94.9m or close to half, came from a 37.7 percent year-over-year rise in the Government’s spending on goods and services, which jumped to $346.6m compared with $251.7m during the same period in the prior fiscal year. Mr Davis, while affirming these numbers yesterday, gave no further insight into the spending increase other than to say it was within Budget limits.
“While recurrent spending for this year is higher than the previous year, it is important to note that all essential recurrent expenditures were carefully
planned and incorporated into the 2024-2025 Budget. So the recurrent spending, as you have heard, remains well within the expected and acceptable range of its established Budget target,” the Prime Minister said.
Instead, he sought to shift the focus to the capital spending jump, asserting that the Government had “made it a priority to improve the efficiency of capital funding where we no longer wait until the last moment to start capital projects, causing fiscal distortions”. Thus the increase in 2024-2025 first-half capital spending to 63.9 percent of the full-year’s $344.5m allocation as compared to the ten-year historical average of 30 percent.
“Over the last ten years, capital spending has accounted for an average of approximately 30 percent of its Budget within the first half of the fiscal year. This year was the first in over a decade where capital spending has been over 60 percent of its Budget target in the first half of the year - nearly double the historical norm,” Mr Davis said.
“Although we have frontloaded capital funding in
the first half of the fiscal year to begin and more efficiently execute projects, we intend to remain within the capital expenditure Budget target for the remainder of the fiscal year since projects have already been mostly funded or have planned funding arrangements.”
Mr Thompson, though, did not buy the Prime Minister’s explanation especially given that it avoided fully explaining the rise in the Government’s recurrent or fixed-cost outlays on items such as civil service salaries, rents, subsidies to stateowned enterprises (SOEs) and interest payments related to its debt.
“The information that was provided by the Prime Minister about front-ending capital expenditure, again, it did not make a lot of sense to me and was incomplete in that, while you may have front-ended [an extra] $86m of additional capital expenditure, he said nothing - and could not justify - why you spent $192m extra for recurrent,” the east Grand Bahama MP said. “That is far more.
“There was nothing to state, no explanation at all to state, why they had spent
‘FROM BURNERS TO EARNERS’: PM TARGETS BAHAMAS’ ‘JUNK’ ESCAPE
FROM PAGE B1
credit markets under
“normal conditions” without the support of multilateral agency debt guarantees and those from others, the Government tabled a resolution seeking the House of Assembly’s permission to borrow $300m in foreign currency to finance infrastructure projects. The proceeds from such borrowings, which could
come by way of bonds or other debt securities, or more conventional bank loans, would go into the National Investment Fund.
“This administration announces an important new objective: Securing an ‘investment grade’ credit rating for The Bahamas within the next three years,”
Mr Davis said yesterday. “To support this goal, we have engaged Fitch Ratings as a third credit rating agency to assess our
N O T I C E
Inter Caribbean Shipping (Bahamas) Ltd.
NOTICE IS HEREBY GIVEN in accordance with Section 138(4) of the International Business Companies Act, (no. 45 of 2000) as follows:
(a) Inter Caribbean Shipping (Bahamas) Ltd. (the “Company”) is in dissolution under the provisions of the International Business Companies Act, 2000.
(b) The dissolution of the said Company commenced on the 18th day of February 2025 when its Articles of Dissolution were submitted to and registered by the Registrar General.
(c) The Liquidator of the said Company is Mr. Brian Selvadurai.
Dated the 25th day of February 2025.
H&J CORPORATE SERVICES LTD. Registered Agent for the above-named Company
financial standing alongside Moody’s and S&P. Achieving an ‘investment grade’ rating requires a minimum of ‘Baa3’ from Moody’s and ‘BBB-’ from both S&P and Fitch.
“Reaching this milestone would affirm The Bahamas’ strong creditworthiness and low investment risk, reinforcing our commitment to sound financial management. We intend to implement the necessary reforms to make this vision a reality.” This will involve much work on both the Government and wider Bahamian economy’s part.
Tribune Business research shows The Bahamas is currently rated as ‘B1’ by Moody’s, needs to jump four rating steps to escape its present ‘junk’ or noninvestment grade status. At this level, Moody’s considers The Bahamas as “speculative” and “subject to higher credit risk”.
As for S&P, The Bahamas is at ‘B+’ - still two grades away from ‘investment grade’ status. That rating agency currently views The Bahamas as “more vulnerable to adverse business, financial and economic conditions, but currently has the capacity to meet financial commitments”. Both rating agencies, though, have The Bahamas on a ‘stable’ outlook, meaning no further downgrade is
$192m more than they did the previous year in the same timeframe. I believe Bahamians do not feel any relief, are not feeling any different as a result of the extra $192m that the Government has spent. I am at a loss as to why they are confirming these same targets.”
And, despite the Government taking credit for a strong 2024-2025 first-half revenue performance, Mr Thompson added: “The sad part about it is I don’t believe they have recognised the position that we are unfortunately in: That we have record revenue but a deficit in six months of almost $400m with this record revenue. “Record revenues and a $400m deficit in six months. That, to me, is unfortunately telling the story as to the economic hole The Bahamas is in.” The Opposition finance spokesman sought to argue that, when the $122.415m in unpaid invoices and arrears as at December 31, 2024, was added to the $394.8m, the ‘real deficit’ stands at more than half a billion dollars or over $500m.
However, the Government’s cash-based
expected in the next six to 12 months.
Restoring The Bahamas’ to ‘investment grade’ status would signal that the country’s creditworthiness and ability to repay its obligations has significantly improved, thereby giving the Government better access to international capital markets and the ability to borrow at lower interest rates, reducing the burden on Bahamian taxpayers. It would also boost foreign and Bahamian investor confidence.
Mr Davis yesterday said the Government has already taken “decisive action” to achieve this goal through reforms that have narrowed the annual fiscal deficit; sought to mitigate the impact of climate change; overhaul the country’s energy sector; changes to the Bahamian dollar debt market to enhance “capacity and liquidity”; and moves to diversify the tax base “and align with international best practices”.
Several observers, though, voiced scepticism that the Government can effect the progress required to persuade Moody’s and S&P to lift The Bahamas back to ‘investment grade’ status within the required timeframe despite it being the correct and noble ambition. “Let’s put it like this,” Kwasi Thompson, the Opposition’s finance spokesman, told Tribune Business
“To even begin to talk about achieving that goal they have to at the very least meet this year’s fiscal targets which they have placed in jeopardy.” Besides hitting the 2024-2025 deficit target of $69.8m, the Government will also likely have to achieve - or come close to - the $448.2m and $457.8m Budget surpluses they are also forecasting for 2025-2026 and 2026-2027.
Gowon Bowe, Fidelity Bank (Bahamas) chief executive, said achieving the Prime Minister’s ambition “requires a significant reversal of our fortunes in recent times” from a fiscal perspective. “This is the one where the Bahamian vernacular says ‘mouth can say anything’,” he told this newspaper.
“It’s one of those where that sounds very positive but that requires a significant reversal of our fortunes in recent times on the fiscal front. If you read Moody’s, S&P, even the IMF’s Article IV, it doesn’t matter who we use; they all have the same approach. We’ve not gotten to where the rating agencies have a positive outlook, meaning there’s the possibility of an upgrade in six to 12 months.
“I think that [the Government’s goal] talks to there being a Budget surplus, that talks to post-election. We know there is an election coming up and governments open the purse more than normal. When we make these types of promises, what is the basis for them?”
Mr Myers, though, struck a slightly more positive tone. “That has everything to do with them securing the deficit, being able to refinance the debt and meeting some of the fiscal targets that have been set out,” he told Tribune Business of the ambition to achieve an improved Bahamas credit rating.
“It’s very achievable if we get the inefficiency out of the system. If we can get all the waste and inefficiency out of the Government system then it’s very doable. You don’t have to do much in both directions to get a surplus. It’s not big - 3 percent, 4 percent, 5 percent. If you can cut waste and inefficiency by 5 percent a year, and grow the economy by 5 percent a year, very quickly you end up with a surplus.
accounting system only recognises expenditure when it is made, not when the liabilities, debt or payment obligation is actually incurred. Mr Davis, meanwhile, said that as a result of the the first-half deficit and related financing activities some $451.1m was added to the Government’s debt during the final six months of 2024.
“As a result of net borrowing activities, central Government debt increased by $451.1m to $11.7bn, which equated to 79.2 percent of GDP at the end of December 2024, a significant improvement when compared to the 100.4 percent debt-to GDP ratio at the end of June 2021,” the Prime Minister said.
“Mr deputy speaker, over the past six months of this fiscal year the financing mix included the following transactions. On the domestic front, a net borrowing of government securities totaling $209.4m, bank loans totaling $42.9m and Central Bank advances amounting to $169m. In terms of foreign currency, a net borrowing of $315.8m in loans from international financial institutions.”
“If we do that year-overyear for three or four years, we’re in the money and everything changes. The Government also has more tax revenue. It’s very achievable but we have to have the courage to do it and the people to do it. It’s not monumental; it’s a little but over time. That’s all. Just efficiency and prudence in government expenditure...
“You’re shifting from burners to earners; taking people out of the Government that are burners of tax revenue and moving them to the private sector where they are earners of tax revenue. We move them from burners to earners. They earn the Government money, not spend it.” As for generating the required economic growth, Mr Myers said The Bahamas must “make the ease of doing business much, much better”. He added: “Right now the ease of doing business is awful. Getting a Business Licence, permits, bank accounts is such a pain in the ass. Anything you have to do in setting up a business is a massive pain.
“NIB, Ministry of Works permits, the BIA, a certificate of occupancy, it just gets more difficult and the left and right hand don’t talk to each other. None of it is codified, none of it is computerised or streamlined. It’s just a mess. That’s where we have to focus the Government’s energy to have efficient ease of doing business and increase GDP. We can fix this thing in three to four years.”
“We have got to move people out of the bloated public sector and into the private sector so they become earners and generate taxes instead of burning taxes” via salaries and other government spending. “We have to increase GDP,” Mr Myers added. “If we get people out of the public sector, put them in the private sector and get 5 percent growth, then we are going to - in several yearshave a significant change.
PM: ‘Hell no’ to IMF’s 15% VAT suggestion
pressure and cut the VAT rate from 12 percent to 10 percent - something the Government is likely to increasingly remind Bahamians of as the next general election draws near.
And the Prime Minister also suggested that the Government had gained more fiscal “headroom” by lowering The Bahamas’ debt-to-GDP ratio to 79.2 percent, again comparing it to the 100.4 percent that it struck in June 2021 just prior to the general election as the economy was emerging from the COVID pandemic.
Using comparisons with 2018-2019, which he described as the last “normal” year before “the twin disasters” of COVID and Hurricane Dorian, and a time when the Minnis administration was in office, Mr Davis said: “For the first six months, preliminary total revenue collections are estimated at $1.4bn, reflecting a $138.9m increase compared to the same period last year.
“So far, revenue collections have accounted for 40.7 percent of the annual Budget target. When compared to fiscal year 2018-2019, the last normal year before the twin disasters, total revenue for the first half of the year has grown by 42.4 percent or $429.3m. This was achieved without any appreciable increase in taxes since this administration came into office.
“The revenue intake for the first half of this fiscal year stands as the highest revenue level this country has ever experienced for this period. This achievement can be attributed to several key factors, including more rigorous enforcement measures and a significant improvement in compliance, particularly in respect of real property taxes.
“As well, we have seen an increase in revenue yields from new policy measures, notably in respect of Business Licence fees and departure taxes,” Mr Davis added. “The combination of these efforts
Gov’t uses 73% of Budget Reserve during first-half
another $861,980 needed for “settlement”.
Other payments made using Budget Reserve Appropriation funds included more than $827,000 that was needed to cover “climate change expenses for COP 29” in Baku, Azerbaijan. Elsewhere, some $150,000 was moved from other Budget line items and initiatives to cover travel expenses associated with the Government delegation’s attendance at the
conference, taking the total outlay close to $1m. Observers also suggested that the $1.026m paid for “development of solar energy services for the Government of The Bahamas” could have been the break-up fee paid to Burke Energy Services, the Florida company that sued for the payment only to abandon litigation when it was paid. The payment may have been approved before year-end 2024, but not issued until early 2025.
And questions were also raised as to whether the
PM pledges simpler tax filing via ‘OneTax’ portal
FROM PAGE B3
imperative that measures are put in place to enhance compliance and effectively monitor transactions regarding real estate.”
Elsewhere, Mr Davis said the Department of Inland Revenue had identified some $124.2m in outstanding taxes and fees from 60 field audits. And its Large Taxpayers Unit, which covers 118 entities and 53 affiliate companies generating 39 percent of VAT revenue, has seen those firms achieve 94
percent compliance on full payments and the timeliness of their filings.
“By the end of 2024, the Department of Inland Revenue completed 274 desk audits, which are detailed reviews of tax returns and financial records of taxpayers done remotely. This process has identified $3.5m in taxes to be settled,” the Prime Minister added.
“Additionally, at least 60 successful field audits have been completed, which involve on-site examinations of taxpayers’ financial
STAFF VACANCIES
Temple Christian School 2025 – 2026
Temple Christian School invites applications from qualified Christian persons for the following positions for the 2025-2026 school year:
has led to enhanced revenue collections, reflecting this administration’s push towards fiscal consolidation.
“The fiscal landscape of the nation is showing promising signs of sustainability, paving the way for further investments in public services and infrastructure as well as meeting our revenue and overall fiscal objectives.”
However, Michael Pintard, the Opposition’s leader, speaking after the mid-year Budget accused the Government of using “smoke and mirrors” to distract Bahamians from its “failure” to govern in a fiscally responsible manner.
“Unfortunately, we have come to expect from the Davis administration exactly what we got today, more smoke and mirrors as they attempt to spin the conversation away from the fact that they have actually failed,” said Mr Pintard.
“Failed to provide relief for the cost of living, failed to provide a pathway for sustainable economic growth and development,
Government’s use of the Budget Reserve Appropriation complies with the Public Finance Management Act’s section 41, which stipulates that any monies must be used for an “unforeseen need for expenditure for which no provision or insufficient provision has been made”, and for which payment cannot be delayed. Several sources argued many payments should have been foreseen.
Elsewhere, the Government’s total arrears and unpaid invoices of $122.415m at end-December 2024 represented a 26.2 percent or $43.5m year-overyear decline compared to the same point in the 20232024 fiscal year.
records and operations. As a result, a total assessment value of $124.2m in outstanding fees and taxes has been discovered, with VAT accounting for 95 percent of this amount. Mr deputy speaker, we are confident that this sum is fully collectable.
“As at December 31, 2024, the Large Taxpayers Unit, established within the Department of Inland Revenue in 2023, monitors a total of 118 large taxpayers and 53 of their related companies, which represents less than 1 percent of all taxpayers but accounts for 39 percent
and failed to show how they have governed in a fiscally responsible manner and how they have been transparent with what they do with your money. The truth of the matter is they have failed to manage the debt property, despite retaining world-renowned firms to help them.”
Mr Pintard said the Government has spent substantially more than it budgeted during the first half of the 2024-2025 fiscal year, noting that it projected a $69m deficit for the 12 months year but currently is at $400m.
“Today, the Prime Minister was forced to come clean with the fact that despite his boast of record revenues and record tourism numbers, the fiscal situation continues to get worse in the Commonwealth of the Bahamas, with the Government recording a whopping $400m or thereabouts in terms of deficit just at the mid-term point,” said Mr Pintard.
“The truth is, he had projected that for the entire year, their target in terms
Referring to these outstanding obligations, Philip Davis KC said yesterday: “At the end of the half-way point in the fiscal year, the Government’s obligations totaled $122.4m, which accounts for 3.4 percent of the expenditure budget, and the average Government arrears payment is less than one month.
“These obligations mainly comprised the following: $82.6m in invoices for recurrent expenditure; $9.9m and $4.8m in invoices for state-owned enterprises and capital expenditure, respectively; and $25m in arrears mainly for office rent.”
Meanwhile, the mid-year Budget also showed the Government is expanding
of our VAT revenue,” he added.
“We can report that since establishing the Large Taxpayers Unit, the compliance ratio of these large taxpayers has averaged 94 percent for on-time filings and remittance, which is higher than the remaining businesses.
“Establishing the Large Taxpayers Unit has enhanced the efficiency of our tax administration through providing specialised services and ensuring that large businesses contribute fairly and transparently in payment of all taxes.”
of the deficit, would have been $69m. So, whether you want to pick a low number of $400m or a high number of $500m, they have gone substantially over what they have projected for the entire year at the mid-term point, despite the Prime Minister’s idle talk and reassurances.”
Mr Pintard said Mr Davis explained his administration “front-loaded” capital expenditure during the first half of the 20242025 fiscal year, leading to record expenditure early in the Budget cycle, but questioned why recurrent spending increased by $192m over the same period.
“The greater question for us is: What was the reason and justification for a $192 m increase in the recurrent expenses? he asked. “We are concerned, and there is no explanation for why they continue to carry out this practice without justifying why they are doing it. If there’s a reasonable explanation, by all means they should share it.”
Mr Pintard also called for a strategy to increase
its travel budget and spending by more than 25 percent, increasing this from $12.458m in the original 2024-2025 projections to $16.065m - a jump of some $3.607m - as it bids to reduce its borrowing costs by greater reliance on export credit guarantee financing and concessional loans from multilateral lenders like the Inter-American Development Bank (IDB).
“Our debt strategy also includes leveraging policybased guarantees from multilateral institutions to reduce the cost of external financing,” Mr Davis said. “A part of our borrowing strategy will be greater use of export credit facilities, which are loan funding
Mr Davis said the Maritime TaskForce has contributed $20m in revenue through the “inspection of vessels, recovering outstanding commercial dock fees and reassessing coastal properties” as well as Immigration-related enforcement. And import duties and processing fees collected by Bahamas Customs increased by $6.5m year-over-year during the 2024-2025 firsthalf due to improved enforcement and collection.
“We have seen an increase of just over 5,000 declarations processed, with import declarations accounting for
stopover visitors, noting that spending from cruise passengers is substantially less.
“They continue to talk about record numbers in cruise passengers, and they don’t seem to fully appreciate that the increase in cruise passengers who spend substantially less than stopover visitors has not advanced the economic growth and development of Bahamians along the value chain,” said Mr Pintard.
“It hasn’t advanced to straw vendors in Grand Bahama or in New Providence. It hasn’t advanced the taxi drivers and others. They have not figured out something their own statistics have told them; that the increase in cruise passengers, particularly from the state of Florida, comes at a time when the stopover visitors from the same location have dropped off.
“So, it almost suggests that stopover visitors from parts of the eastern seaboard, but Florida in particular, have converted into being cruise passengers who spend substantially less, more than $1,800 less, and so again, it is important for us to develop a strategy on how to increase stopover visitors.”
guaranteed by export credit agencies to fund the purchase of goods or services from the countries which provide those goods or services.
“The Government, through a guarantee provided by Altradius, the Dutch export credit agency, was able to finance the purchase of nine Royal Bahamas Defence Force vessels at concessional rates some 11 years ago. We are now proposing to finance the construction of a new Glass Window Bridge, through the use of a similar facility from the UK. This project would commence in the new fiscal period.”
82 percent of the increase this current period compared to last year. To improve even more, we’ll use technology like artificial intelligence (AI) and automation to make our processes faster and more efficient,” Mr Davis said.
“AI will help us spot fraud, detect under-reporting and fight smuggling. We’ll also use a risk-based approach, focusing inspections on higher-risk imports to ensure better compliance and a stronger Customs system.”
Applicants must:
Be a practicing born again Christian who is willing to subscribe to the statement of faith of Temple Christian School.
www.templechristianbahamas.com and at the
Applications are to be submitted to:
Dr. Samuel L. Rutherford Administrator
Temple Christian School 4th Terrace East, Collins Avenue
P.O. Box N-1566
Nassau, Bahamas Ph: 325-1095 / 322-5157
The deadline for receipt of applications is Friday, March 14, 2025 at 3:00 p.m.
Egg prices could jump 41% this year, USDA says, as Trump's bird flu plan is unveiled
By JOSH FUNK and JOSH BOAK Associated Press
THE U.S. Agriculture Department predicts record egg prices could soar more than 40% in 2025, as the Trump administration offered the first new details Wednesday about its plan to battle bird flu and ease costs.
With an emphasis on farms tightening their measures to prevent bird flu's spread, Agriculture
Secretary Brooke Rollins said the USDA will invest another $1 billion on top of the roughly $2 billion it has already spent since the outbreak began in 2022.
The main reason egg prices have climbed — hitting an all-time average high of $4.95 per dozen this month — is that more than 166 million birds have been slaughtered to limit the virus' spread when cases are found. Most were egg-laying chickens. Just since the start of the year, more than 30 million egg layers have been killed.
What more can farmers do to stop bird flu?
to the packaging side at a farm in Cortland, Ind.
up to 75% of the needed biosecurity improvements.
Egg prices will get much worse this year
The USDA now predicts the cost of eggs will go up 41.1% this year. Just last month, the increase was predicted to be 20%.
And the average prices conceal just how bad the situation is, with consumers paying more than a dollar per egg — over $12 a dozen — in some places.
Prices have more than doubled since before the outbreak began, costing consumers at least $1.4 billion last year, according to an estimate by agricultural economists at the University of Arkansas.
before consumers see an effect at the checkout counter. It takes infected farms months to dispose of the carcasses, sanitize their farms and raise new birds. But she expressed optimism that the plan will help prices.
"It's going to take a while to get through, I think in the next month or two, but hopefully by summer," Rollins said.
CoBank analyst Brian Earnest said he appreciates the Trump administration's fresh look at the problem, but "I don't see a whole lot here that is a big change here from the current plan of action."
The USDA is working on identifying the most effective measures farmers can take and helping spot any weaknesses in their plans.
The department has already done biosecurity reviews on about 150 farms and only one had an
Egg and poultry farmers have already been working since the bird flu outbreak of 2015 to protect their birds by making workers change clothes and shower before entering barns, using separate sets of tools, and sanitizing any vehicles that enter farms. The challenge is that wild birds easily spread the virus.
TRUMP CUTS FINANCIAL LIFELINE FOR VENEZUELA'S GOVERNMENT BY ENDING PERMIT TO EXPORT OIL TO US
By REGINA GARCIA CANO Associated Press
A PERMIT issued by the United States government allowing energy giant Chevron Corp. to pump and export Venezuelan oil will be terminated this week, President Donald Trump announced Wednesday, ending what became
a financial lifeline for the South American country. Trump's announcement in his Truth Social network accused the government of President Nicolás Maduro of not meeting democratic conditions for last year's July presidential election as well as of not moving fast enough to transport back to Venezuela immigrants set for deportation.
"We are hereby reversing the concessions that Crooked Joe Biden gave to Nicolás Maduro, of Venezuela, on the oil transaction agreement," Trump wrote. Trump's post did not specifically mention California-based Chevron nor the permit, formally known as a general license, that exempts the company from economic sanctions and allows it to export and sale Venezuelan
outbreak afterward, the USDA said, so officials believe more can be done to protect birds and they are going to make those reviews available to more farms.
Any farm that has an outbreak now has to undergo a biosecurity audit. And the government will help pay
Restaurants like Denny's and Waffle House started adding surcharges to egg dishes. Egg prices also normally increase every spring heading into Easter when demand is high.
Will the Trump plan bring down prices?
Rollins acknowledged that it will take some time
Major trade groups in the egg, chicken, turkey and dairy industries largely praised the plan. American Egg Board President Emily Metz said she is encouraged the administration wants to find the best response through a combination of biosecurity and exploring vaccine development.
oil in the U.S. But it is the only Venezuela-related license whose issuance and renewal information match the dates Trump did mention in his social media post.
The administration of President Joe Biden authorized the license in 2022 after Maduro agreed to work with Venezuela's political opposition toward a democratic
election. But the election, which took place in July 2024, was neither fair nor free, and Maduro was sworn in last month for a third sixyear term despite credible evidence that his opponent got more votes.
Biden's government for months then resisted calls from Venezuela's opposition and others to rescind the license, whose goal the U.S. initially said was "to support the restoration of democracy." The opposition has estimated that Maduro's government has received about $4 billion through the permit, which was set to be renewed Saturday.
Over time, the license has become responsible for roughly a quarter of Venezuela's oil production.
"We are aware of today's announcement and are considering its implications," Chevron spokesman Bill Turenne said in a statement. "Chevron conducts its business in Venezuela in compliance with all laws and regulations, including the sanctions framework provided by U.S. government."
Venezuela sits atop the world's largest proven oil reserves and once used them to power Latin America's strongest economy. But corruption, mismanagement and eventual U.S. economic sanctions saw production decline steadily.
More than 7.7 million Venezuelans have left their homeland since 2013, when the oil-dependent economy came undone and Maduro became president. Most settled in Latin America and the Caribbean, but after the pandemic, they increasingly set their sights on the U.S. Wednesday's announcement, which Venezuela's Vice President Delcy Rodriguez characterized as "harmful and inexplicable," put a quick end to what Maduro's government had hoped would be an improved relation with the White House following the Feb. 1 visit of a Trump envoy to Caracas, the capital. Shortly after that visit, Venezuela's government began taking back migrants deported from the U.S. Rodriguez in a statement warned that decisions similar to Wednesday's "drove migration from 2017 to 2021 with the widely known consequences."
The U.S. government does not recognize Maduro as Venezuela's president. Under Biden and then Trump, the U.S. considers retired diplomat Edmundo González the winner of the July 28 election.
IN this July 28, 2012 file photo, chicken eggs are transported by conveyor belt from the production side
Photo:Aaron Piper/AP
CHEVRON President in Venezuela, Javier La Rosa, left, attends a signing agreement ceremony between Venezuela and the California-based Chevron, in Caracas, Venezuela, Dec. 2, 2022.
Photo:Matias Delacroix/AP
AMERICAN AIRLINES FLIGHT DISCONTINUES LANDING TO AVOID DEPARTING PLANE AT WASHINGTON NATIONAL
ARLINGTON, Va.
Associated Press
AN American Airlines plane arriving at Ronald Reagan Washington National Airport discontinued its landing, performing a go-around at an air traffic controller's instruction to avoid getting too close to another aircraft departing from the same runway, the Federal Aviation Administration said.
The maneuver involving American Flight 2246 from Boston happened about 8:20 a.m. Tuesday, less than two hours before Southwest Flight 2504 from Omaha, Nebraska, attempting to land at Chicago's Midway Airport, was forced to climb back into the sky to avoid another aircraft crossing the runway. Southwest and American airlines both issued statements saying that their flights landed safely after their crews made precautionary go-around maneuvers. The Southwest pilots had to act quickly themselves to avoid the other plane while the incident at Reagan was more routine with pilots following the tower's instructions.
Aviation experts said these kinds of moves are not entirely uncommon on commercial flights for various reasons, from bad weather to a deer walking on the runway. Pilots can execute a go-around maneuver without much notice from passengers if the plane is still flying high enough on its approach.
"It probably happens more than you and I
realize," said Robert Joslin, a professor of practice at Embry-Riddle Aeronautical University's College of Aviation in Daytona Beach, Florida. "It's not always just because (the plane) is getting ready to hit somebody."
Joslin pointed to recent data from the Federal Aviation Administration. Nearly 4 out of every 1,000 arrivals at the nation's 30 busiest airports involved go-arounds in fiscal year 2023, according to a recent FAA report. For context, the FAA handles about 45,000 flights a day.
The National Transportation Safety Board published two reports Wednesday about close calls that happened last year when planes came close to colliding at airports in Honolulu and Sarasota, Florida.
In Hawaii, several factors contributed, including the poor outdated design of the airport with several crossing runways, according to the reports. That design, combined with one pilot's mistake of continuing past where he was supposed to stop, allowed the two planes to come within 1,173 feet (358 meters) of each other, but the controller was able to direct the Cessna to turn off on a taxiway before it reached the giant Boeing 777 crossing the runway.
In the Sarasota incident last February, one plane had to abort its landing and go around because another plane that was taking off from the same runway hadn't left the ground yet. The NTSB blamed the controller's error in that case for assuming the first plane
would clear the runway in time and failing to properly monitor the situation.
But just like on Tuesday, a go-around the pilots initiated prevented those planes from getting within a half mile of each other.
Pilots are trained to conduct go-around maneuvers, Joslin said. And when they are relying on instruments to fly an approach to a runway in weather with low clouds, they are required to plan for the possibility of a missed approach.
There are many reasons why pilots could abort a landing, including flying too high and too fast or not being lined up with the runway, Joslin said. Another aircraft could be taxiing on the runway when it's not supposed to or air traffic controllers could have mistakenly cleared a plane to cross a runway.
"Is it a pilot issue? An air traffic control issue? A weather issue? A wildlife issue? You name it. There are a wide variety of reasons for it," said Joslin, who previously served as the FAA's chief scientific and technical adviser for flight deck technology.
In the past month, there have been four major aviation disasters in North America. They include the Feb. 6 crash of a commuter plane in Alaska that killed all 10 people on board and the Jan. 26 midair collision between an Army helicopter and an American Airlines flight at National Airport that killed all 67 aboard the two aircraft.
Trial begins in $300M lawsuit against Greenpeace over North Dakota pipeline protests
By JACK DURA Associated Press
AN attorney for a Texas pipeline company said Wednesday at trial that he will prove various Greenpeace entities coordinated delays and disruptions of a controversial oil pipeline's construction in North Dakota, and defamed the company to its lenders.
Attorneys for the Greenpeace defendants told a jury there is no evidence to back up the claims by Dallas-based Energy Transfer, which seeks potentially hundreds of millions of dollars in damages from Greenpeace.
The case is tied to protests in 2016 and 2017 of the Dakota Access Pipeline and its controversial Missouri River crossing upstream of the Standing
Rock Sioux Tribe's reservation. The tribe has long opposed the pipeline as a risk to its water supply. The pipeline was completed in 2017.
Energy Transfer and its subsidiary Dakota Access allege trespass, nuisance, defamation and other offenses by Netherlands-based Greenpeace International and its American branch, Greenpeace USA. The lawsuit also names the group's funding arm, Greenpeace Fund Inc.
Greenpeace paid professional protesters to come to the area, sent blockade supplies, organized or led protester trainings, passed "critical intel" to the protesters and told untrue things to stop the pipeline from being built, the plaintiffs' attorney, Trey Cox,
told the jury in his opening statement.
"They didn't think that there would ever be a day of reckoning, but that day of reckoning begins today," Cox said in opening statements.
Attorneys for the defendants emphasized what they said are distinctions between the various Greenpeace entities, such as what they do and how they're organized.
They said Greenpeace International and Greenpeace Fund Inc. had zero involvement in the protests, while Greenpeace USA had six employees at Standing Rock for five to 51 days. Greenpeace is committed to nonviolence, and only got involved at Standing Rock because of tribal outreach, the attorneys said.
THE AIR traffic control tower at Ronald Reagan Washington National Airport is seen at sunset, Saturday, Feb. 1, 2025, in Arlington, Va..
Photo:Jose Luis Magana/AP
Nvidia sales surge in the fourth quarter on demand for AI chips
By SARAH PARVINI AP Technology Writer
NVIDIA on Wednesday reported a surge in fourthquarter profit and sales as demand for its specialized Blackwell chips, which power artificial intelligence systems, continued to grow, sending the company's stock higher after hours.
For the three months that ended Jan. 26, the tech giant based in Santa Clara, California, posted revenue of $39.3 billion, up 12% from the previous quarter and 78% from one year ago. Adjusted for one-time items, it earned 89 cents a share.
"Demand for Blackwell is amazing as reasoning AI adds another scaling law — increasing compute for training makes models smarter and increasing compute for long thinking makes the answer smarter," Nvidia Founder Jensen Huang said in a statement.
Nvidia has ramped up the massive-scale production of Blackwell AI supercomputers, Huang said, "achieving billions of dollars in sales in its first quarter."
"AI is advancing at light speed as agentic AI and physical AI set the stage for the next wave of AI to revolutionize the largest industries," he said.
Wednesday's earnings report topped Wall Street expectations. Analysts had been expecting adjusted earnings of 85 cents a share on revenue of $38.1 billion, according to FactSet. Nvidia reported net income of $22.06 billion in the fourth quarter, beating analysts' predictions of $19.57 billion. The tech giant expected sales to continue to grow, forecasting revenue of around $43 billion for the first quarter of fiscal 2026.
Data center sales, which account for much of Nvidia's revenues, were a core part of that uptick — fourth-quarter revenue was $35.6 billion, up 93% from one year ago.
The growth in the data center market comes as President Donald Trump
has talked up a joint venture investing up to $500 billion for infrastructure tied to AI through a new partnership formed by OpenAI, Oracle and SoftBank. The Stargate project will start building out data centers and the energy generation needed for the further development of AI, according to the White House. Nvidia is a partner in that project.
On an earnings call Wednesday afternoon, Nvidia Chief Financial Officer Colette Kress said that fourth-quarter Blackwell sales exceeded the company's expectations.
"We delivered $11 billion of Blackwell architecture revenue in the fourth quarter of fiscal 2025, the fastest product ramp in our company's history," Kress said. "Blackwell sales were led by large cloud service providers which represented approximately 50% of our data center revenue."
The poster child of the AI boom, Nvidia has grown into the second-largest company on Wall Street — it is now worth over $3 trillion — and the stock's movement carries more weight on the S&P 500 and other indexes than every company except Apple.
Two years ago, Nvidia's market value was below $600 billion.
Nvidia and other companies benefiting from the AI boom have been a major reason the S&P 500 has climbed to record after record recently, with the latest coming last week. Their explosion of profits has helped to propel the market despite worries about stubbornly high inflation and possible pain coming for the U.S. economy from tariffs and other policies of President Donald Trump. But those tariffs are still "an unknown," Kress said, until Nvidia can better understand what the Trump administration's plan is.
"We are awaiting," she said, adding that the company would follow any export controls or tariff rules.
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The fourth-quarter earnings are the company's first report since Chinese company DeepSeek boasted it had developed a large language model that could compete with ChatGPT and other U.S. rivals, but was more cost-effective in its use of Nvidia chips to train the system on troves of data.
The frenzy over DeepSeek caused $595 billion in Nvidia's wealth to vanish briefly. But the company in a statement commended DeepSeek's work as "an excellent AI advancement" that leveraged "widelyavailable models and compute that is fully export control compliant."
"DeepSeek R1 has ignited global enthusiasm," Huang said on Wednesday's earnings call. "It's an excellent innovation, but even more importantly, it has open-sourced a worldclass reasoning AI model.
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Nearly every AI developer is applying R1, or chain of thought and reinforcement learning techniques like R1, to scale their models' performance."
Speaking to investors, Huang said the "next wave" of AI is coming with "agentic AI for enterprise, physical AI for robotics and sovereign AI as the different regions build out their AI for their own ecosystems."
"We're in the center of much of this development," Huang said.
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NVIDIA founder and CEO Jensen Huang speaks during a Nvidia news conference ahead of the CES tech show Monday, Jan. 6, 2025, in Las Vegas.
Photo:Abbie Parr/AP
A slide for Walmart pulls Wall Street from its record, and Dow drops 450
By STAN CHOE AP Business Writer
A SHARP slide for Walmart on Thursday helped pull Wall Street off of its record.
The S&P 500 slipped 0.4% for its first drop after setting all-time highs in each of the last two days. The Dow Jones Industrial Average lost 450 points, or 1%, and the Nasdaq composite sank 0.5%.
Walmart drove the market lower after falling 6.5%, even though the retailer reported stronger profit for the latest quarter than analysts expected.
The Bentonville, Arkansasbased giant gave a forecast for upcoming profit that fell short of analysts' expectations as shoppers across the country deal with still-high inflation and the threat of tariffs from President Donald Trump.
Walmart is still forecasting growth in revenue for this upcoming year and said it has experience in navigating
the effects of tariffs, but its profit outlook helped pull stocks lower across the retail industry. Costco fell 2.6%,Target dropped 2% and Amazon lost 1.7%.
Palantir Technologies was another weight on the market. It fell 5.2% to follow its 10.1% drop from the day before, after U.S. Defense Secretary Pete Hegseth said he wants to cut $50 billion in spending next year. The software company got 55% of its $2.9 billion in revenue last year from government customers. They helped offset an 8.5% jump for Baxter International, which reported better profit for the latest quarter than analysts expected. It credited strength for its pharmaceuticals business, as well as for its medical products and therapies.
Burger chain Shake Shack rallied 11.1% after likewise reporting a stronger profit than expected. CEO Rob Lynch said sales trends remained solid during the
quarter, even though bad weather around the country and wildfires in the Los Angeles area kept some customers away.
Chinese e-commerce giant Alibaba saw its stock that trades in the United States climb 8.1% after reporting stronger profit for the latest quarter than analysts expected. It also talked
up its artificial-intelligence developments.
All told, the S&P 500 fell 26.63 points to 6,117.52. The Dow Jones Industrial Average dropped 450.94 to 44,176.65, and the Nasdaq composite sank 93.89 to 19,962.36.
In the bond market, Treasury yields edged lower after a report showed more U.S. workers applied for
unemployment benefits last week than economists expected. It's an indication the pace of layoffs could be worsening, but the number still remains relatively low compared with history.
A separate report said growth for manufacturing in the mid-Atlantic region is still growing, but not as strongly as economists expected.
Such numbers are likely to keep the Federal Reserve on hold when it comes to interest rates. Last month, the Fed refrained from cutting its main interest rate for the first time at a policy meeting since it began doing so in September.
While lower rates can boost the economy and prices for investments, they can also give inflation more fuel. And Fed officials were discussing at their last meeting how Trump's proposed tariffs and mass deportations of migrants, as well as strong consumer spending, could push inflation higher this year.
The yield on the 10-year Treasury fell to 4.50% from 4.54% late Wednesday. The yield on the two-year Treasury, which more closely tracks expectations for upcoming Fed moves, held steadier. It remained at 4.27%, where it was late Wednesday.
Traders have been paring back their expectations for how many cuts to interest rates the Fed may deliver this year, with some predicting zero. Many are pointing the potential effects of tariffs, but much of Wall Street is also banking on their ultimate impact being smaller than they initially seemed.
"Given the high political costs of elevated inflation, we continue to believe that the Trump administration will not want to jeopardize US economic growth or risk higher inflation through broad and sustained tariffs," said Solita Marcelli, chief investment officer, Americas, at UBS Global Wealth Management.
MARINE FORECAST
Photo:Peter Morgan/AP
AFTER A MONTH OF TRUMP’S PRO-OIL AND GAS MOVES, DEMS TARGET HIS ENERGY EMERGENCY
By MICHAEL PHILLIS and JENNIFER McDERMOTT Associated Press
PRESIDENT Donald Trump began dismantling his predecessor's climate change and renewable energy policies on his first day in office, declaring a national energy emergency to speed up fossil fuel development – a policy he has summed up as "drill, baby, drill."
The declaration calls on the federal government to make it easier for companies to build oil and gas projects, in part by weakening environmental reviews, with the goal of lowering prices and selling to international markets.
Democrats say that's a sham. They point out that the U.S. is producing more oil and natural gas than any other country and the Biden administration's Inflation Reduction Act boosted renewable energy at a critical time, creating jobs and addressing the climate change threat – 2024 was Earth's hottest year on record amid the hottest 10-year stretch on record.
"It would also set a horrible precedent, that a president of either party can invent a sham emergency and then grab away from Congress powers that Congress has" in the Constitution, said Democratic Sen. Tim Kaine of Virginia.
Kaine spoke Wednesday in support of a Senate resolution from Democrats to terminate Trump's declaration that later failed on a 52-47 vote. Meanwhile, the Trump administration has already made the U.S. an even friendlier environment for fossil fuels. Congress is helping, too, with the House and Senate voting to repeal a Biden administration-era methane fee on oil and gas producers. It now heads to the president's desk.
In addition, the head of the Environmental Protection Agency has urged the White House to reconsider a finding that greenhouse gases endanger the public, a fundamental Obama-era document that underpins the agency's power to regulate planet-warming emissions, according to four people who were briefed on the matter but spoke to The Associated Press on condition of anonymity because the recommendation is not public.
Here are some ways the Trump administration has moved to advance fossil fuels:
Lifting a pause on LNG exports
The Biden administration last year paused evaluations of new liquefied natural gas (LNG) export terminals. That pleased environmentalists concerned that a big surge in exports would contribute to planet-warming emissions. The pause didn't stop projects already under construction, but it delayed consideration of new projects.
Trump reversed that pause.
On Tuesday, oil and gas giant Shell said global LNG demand is forecast to rise by around 60% by 2040.
The United States is expected to play a major role in meeting that demand, with its export
capacity expected to double before 2030, according to the U.S. Energy Information Administration.
"I think investors have become much more comfortable that they can move towards final investment decisions without the concerns that they had over the last four years about potential roadblocks," said Christopher Treanor, an energy and environmental attorney at the law firm Akin.
Drilling expansion
Trump has opened more land for oil and gas lease sales, shifting away from Biden's efforts to protect environmentally sensitive areas like Alaska's National Wildlife Refuge and to prevent large swaths of ocean from being available for offshore drilling, including major areas off coasts in the Pacific, Atlantic and parts of Alaska.
Environmental groups are suing to stop Trump's moves.
Expanding the area available for companies to lease and drill doesn't necessarily mean that more oil and gas will be produced. When leases were made available in the Artic National Wildlife Refuge, for example, only smaller companies bid and there were no buyers for a second lease sale.
Army Corps appears ready to help projects sidestep the Clean Water Act
The Army Corps of Engineers marked hundreds of Clean Water Act permits for fast-tracking, citing Trump's order on energy, then removed that notation in its database. The agency said it needed to review active permit applications before publishing which ones will be fast-tracked.
"They don't seem to be backing off," said Tom Pelton, spokesman with the Environmental Integrity Project. "They are just going to refine the list."
Many of the permit applications that had been listed for expediting are for fossil fuel projects, but some others have nothing to do with energy, including a housing subdivision proposed by Chevron in southern California, according to the Environmental Integrity Project.
David Bookbinder, the organization's director of law and policy, said the Trump administration is using the "pretext of a national energy emergency" to ask a federal agency to circumvent environmental protections to justify building more fossil fuel power plants. Bookbinder said there's no shortage of energy.
Slashing the federal workforce
Pat Parenteau, professor emeritus at Vermont Law & Graduate School, said Trump's policy changes aren't nearly as important as the deep cuts to the federal government that eliminate vital expertise.
At a cabinet meeting on Wednesday, for example, Trump said the head of the EPA should axe roughly two-thirds of its employees.
"I think they are going to accomplish what no other administration has been able to do in terms of crippling the institutional capacity of the federal government to protect public
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health, to conserve national resources to save endangered species," he said. "That is where we are going to see long-term, permanent damage."
Trump's energy emergency calls, for example, for undermining Endangered Species Act protections to ensure fast energy development, even assembling a rarely used committee — the so-called "God Squad" — that could have authority to dismiss significant threats to species. That move was coupled with recent deep cuts to the Fish & Wildlife Service, which administers the law.
Parenteau said some species are likely to go extinct.
Executive orders take aim at renewables
Trump also targeted wind energy with an order to temporarily halt offshore wind lease sales in federal waters and pause federal approvals, permits and loans for projects both onshore and offshore.
In another order, he listed domestic energy resources that could help ensure a reliable, diversified and affordable supply of energy. Solar, wind and battery storage were omitted, though solar is the fastest-growing source of electricity generation in the United States. Trump has vowed to end tax credits for renewables as well, which would push up prices.
Substantially slowing renewables could leave the U.S. wedded to coal and gas for far longer as coal plants are extended and new gas plants are built, said David Shepheard, partner and energy expert at the global consultant Baringa.
Shepheard said the U.S. is facing unprecedented growth in electricity demand largely to meet needs from data centers and artificial intelligence, and increasingly the deck is stacked against renewables to meet it.
A Baringa analysis found Trump's policies will drive up emissions and put the agreed-upon international climate threshold further out of reach.
AN OIL pumping unit works in the foreground while wind turbines at the Buckeye Wind Energy wind farm rise in the distance Sept. 30, 2024, near Hays, Kan. (AP Photo/Charlie Riedel, File)
