06212024 BUSINESS

Up to 70% of SMEs brace for light bill rise

By NEIL HARTNELL

UP to 70 percent of small and medium-sized businesses (SMEs) were yesterday said to be bracing for increased electricity bills because they use more than the Government’s chosen threshold.

Mark A Turnquest, the 242 Small Business Association and Resource Centre’s (SBARC) founder, told Tribune Business that the Government appeared not to understand that “the majority” of SMEs - especially those in the retail sector or who sell product from a physical location - easily consume more than 800 kilowatt hours (kWh) per month.

From next month, all energy consumed above that benchmark will attract an extra 1.5 cents per kWh on top of the monthly fuel charge rate calculated by Bahamas Power & Light (BPL). The fuel charge typically accounts for 50-60 percent of the total light bill and Mr Turnquest, a leading small business advocate, said this extra charge will more than offset the discount on the first 800 kWh and lead to higher light bills. “The majority of members, and this is what the Government doesn’t realise, use more than 800 kWh per

month,” he told this newspaper. “It’s those who have retail stores - clothing, electronics, convenience stores - and products to sell.

“The services members like myself and small consulting firms don’t use that amount, but that’s only 30 percent of our members. Seventy percent of my clients and our members use over 800 kWh per month. That’s what they don’t understand.

“We need more clarification. The minister of energy [Jobeth Coleby-Davis] indicated we’d get some type of leniency based on our usage. We need more clarification that we are not going to be significantly disadvantaged.”

The concerns voiced by Mr Turnquest and his members were sparked by BPL’s

Sebas says casinos must ‘pay fair share’

By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net

ISLAND Luck’s co-founder yesterday called for hotelbased casinos to “pay their fair share” and an end to the rate disparity that sees web shops paying two-thirds of the gaming sector’s total tax contribution.

Sebas Bastian argued that “it’s about time” casinos such as those at Baha Mar and Atlantis pay the same rates, and amount, of tax to the Government as web shop gaming houses. Speaking during a round table discussion featuring web shop principals, held at the Caribbean Gaming and Regulators Conference, Mr Bastian said that during negotiations with the Government over the industry’s legalisation, regulation and taxation, it was

initially suggested the sector would pay a tax rate equal to 25 percent of EBITDA (earnings before interest, taxation, depreciation or amortisation) or 11 percent of GGR (gross gaming revenue).

After talks with the thenChristie administration were completed, it was determined gaming houses would pay 11 percent of gross gaming

Minister reveals BPL losing $60m annually

By NEIL HARTNELL Tribune Business Editor

A CABINET minister yesterday revealed that Bahamas Power & Light (BPL) is losing $60m annually amid an increasingly acrimonious political battle over the Government’s energy sector reforms.

Land reform ‘something we desperately need’

• AG unveils Bills for Land Registry

• Hails them as ‘revolutionary change’

• Present system ‘totally anachronistic’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

A SENIOR Bahamian attorney yesterday hailed the Government’s newly-launched land reform drive as “something we desperately need” to boost commerce, development and title security for citizens.

Terence Gape, senior partner at Dupuch & Turnquest, told Tribune Business that “the present system is totally anachronistic” and fails to provide “perfect”, or absolute, title to any property or real estate parcel in The Bahamas.

Speaking after Ryan Pinder KC, the attorney general, unveiled legislative reforms designed to create a Land Registry and shift The Bahamas to a registered land system, he added that such a move will lower the costs and time taken to conclude real estate transactions which stands to improve the ease of doing business.

“I think it’s something we desperately need, and it will facilitate commerce and land acquisitions going forward,” Mr Gape told this newspaper, after the Land Adjudication Bill

Jobeth Coleby-Davis, minister of energy and transport, disclosed further evidence of BPL’s grim financial position as she blasted Michael Pintard, the Opposition leader, for what she branded as “a glaring lack of understanding regarding the necessary reforms required to “modernise and stabilise” the state-owned energy monopoly.

By NEIL HARTNELL

obtain hurricane coverage for those unable to afford it, the Attorney General revealed yesterday. Ryan Pinder KC, addressing the Senate during the 2024-2025 Budget debate, said the Government is hoping to soon sign a Memorandum of Understanding (MoU) with the Bahamas Insurance Association (BIA) and international participants to start formalising an arrangement

She hit back after Mr Pintard labelled the Davis administration’s reform package a series of “bad deal giveaways”, which

that will protect the most vulnerable and boost the country’s resilience to climate change. He added that it will focus on homeowners who are Bahamian citizens, living in their own homes and residing in this nation, but who are either uninsured or “lacking adequate coverage”, plus pensioners receiving their benefits. Only homes valued under $300,000 will be considered. “Additionally, the programme will extend coverage to registered farmers and fishermen, recognising the need to ensure that we build resilience in

SEBAS BASTIAN

Web shop impact surpasses casinos

By FAY SIMMONS Tribune Business

THE Gaming Board’s chairman yesterday confirmed that web shops have now far surpassed hotel casinos in their contribution to the industry's overall employment and $60m-plus in annual tax revenues.

Dr Daniel Johnson, speaking at the Caribbean Gaming and Regulators Conference, explained that the new "era" of Bahamian gaming was created by the decision to "level the playing field" and legalise, tax and regulate the web shop industry.

He said: "We started out with a tale of two cities. One where it's legal for one group of people to game, and illegal for another group of people to game. One of them getting locked up and police running behind them, and one where police may be protecting their money going into the bank.

figure more than double, or 106.7 percent higher, than their hotel counterparts. The pattern was repeated during the first nine months of the current 2023-2024 fiscal year, as $24.985m in web shop taxes dwarfed the $11.284m collected from casinos.

Dr Johnson, meanwhile, said both hotel casinos and gaming houses are current with their taxes and the industry is stable. He added: “The regulators should be congratulated for efficiency and effectiveness in this industry. The operators should be congratulated, too, for good business practices. Everyone is doing extremely well with compliance. The industry is stable and they’re contributing to society.”

through The Bahamas, and those cruise ships have casinos on board. Now cruise ships are owning private islands. So we have to now look at a class of maritime licence.

“What is to say that young Bahamians may not want to get into the maritime licence authority of casinos. We have Louisiana's representatives here with us, and most of their casinos are on the river. They're on the water. We have a lot of water and no water licence yet, so those are the kinds of things you have to look at in the modern era.”

Dr Johnson added that changes are needed to ensure the Gaming Act keeps pace with global industry standards and best practices, and potential reforms are expected to be presented later this year.

"That's unfair, that’s noncompetitive. So the purpose of the Gaming Act 2013 was to level the playing field on access to the industry and your economy. So now, having levelled the field, we see that, initially, of course the big casinos were the major player in the industry. They had more revenue and employed more people on the casino side.

employ and the amount of tax revenue that they return to the treasurer, that's significant.”

"And now we see in this era now, where the local gaming operators now have surpassed them in the amount of people they

Dr Johnson said that while he is unaware of the exact amount of tax revenue collected from the web shop gaming houses it has ‘surpassed’ the contributions of hotel-based casinos. Revenue figures

AG: New companies portal goes live today

By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net

THE Attorney General yesterday confirmed that the Registrar General's new corporate digital portal will officially launch today. Addressing the Senate during the 2024-2025 Budget debate, Mr Pinder said the Corporate Administrative Registry Services (C.A.R.S) platform will be a digital corporate

registry allowing users to incorporate a new company, file corporate documents, pay annual fees and obtain certified copies of documents without having to physically visit the Registrar General’s Office.

He said: “For the past few months, a few financial corporate service providers have been participating in a pilot testing of the new platform to ensure a satisfactory user experience. C.A.R.S. will officially launch tomorrow, June 21.

We are very excited, as is the industry, to introduce this platform as an important, modernising step forward for our business sector.”

In addition to the launch of C.A.R.S, the Registrar General will also begin the digitisation of the civil registry, allowing users to obtain certified copies of birth, death and marriage records as well as certified copies of recorded documents without having to make a physical visit.

released with the 20242025 Budget show the web shops, or gaming houses, generate more than double the annual tax revenue collected from casinos.

In the 2022-2023 fiscal year, for example, while casinos paid a collective $20.829m to the Public Treasury, the web shops generated $43.058m - a

Mr Pinder said: “The development work has already begun on this project, and we look forward to launching the new civil registry platform for new registrations by the end of this calendar year. Gone will be the days of having to line up outside in the elements to file registrations and get documents.”

He added that, as part of the civil registry "modernisation", the Movable Property Security Interests Bill will be tabled in Parliament prior to its summer recess. This Bill will allow automatic perfection of a security interest in moveable assets such as inventory, vehicles and accounts receivables

He said: “The moveable asset collateral registry will revolutionise access to capital for small and medium-size businesses, unlocking entrepreneurial success for Bahamians. This new collateral registry will allow automatic perfection of a security

Dr Johnson revealed the Gaming Board is considering implementing new classes of gaming licences, such as those for maritime casinos, which would allow cruise passengers to game while docked in port in The Bahamas. He added that this might also create opportunities for Bahamian entrepreneurs. He said: “We have hundreds of cruise ships passing

interest in moveable assets such as inventory, vehicles, accounts receivables, etc.

“Banks and financial institutions will have a secure lending regime for small businesses secured by these assets. We are excited as to what this can mean for small businesses in The Bahamas.” Mr Pinder also revealed legislation will be tabled "in the coming months" to divide the Registrar General into a registrar of companies and a registrar of records. He said: “There will be two distinct operations with two distinct registrars and staff trained in the specific areas. This is important to ensure dedicated and trained service in both distinct registries. This is a long time coming and certainly upends the status quo.”

Mr Pinder said amendments to the Business Licence Act will provide "clean up and clarification", and define which residential rental operations are

He said: “I think we do have to make some amendments to the present Gaming Act to update it. There are things happening in this industry, moving so fast. We have to update some things to keep up with industry standards and I'm expecting that later this year."

exempted from obtaining a Business LIcence and the type of residential property eligible for exemption. The amendment will also provide concessionary taxation to businesses in the agriculture sector providing a "significant change" for local farmers.

Mr Pinder said: “The amendment also clarifies International Business Companies that do not have operations in the domestic market are excluded from having to obtain the approval of the Minister to be granted a licence. This will help greatly with the ease of doing business in the international markets.

“One key amendment provides concessionary taxation to the agriculture sector: The amendment changes from a flat rate to a progressive rate of tax for agricultural businesses with a maximum rate of 0.75 percent. This is a significant change for our farmers.”

DR DANIEL JOHNSON

Why a college degree matters

In recognition of another high school graduation season, we express again the value of companies who make tertiary education a priority in advancing business success. The age-old question remains: Is a college degree really necessary?

Yes, it is true that Steve Jobs, Mark Zuckerberg, Bill Gates and many others - even in the Bahamian context - have been wildly successful without one, but research bears out that most executives and hiring managers still place a high premium on university credentials.

While it is true that there still exists a skills gap among recent college graduates, there is a clear and stark difference in performance and critical thinking between those who have matriculated through some

IAN

FERGUSON

tertiary programme and those who have opted out.

This two-part column focuses attention on the benefits of a higher education for the employee and the employer. This week,

FOCOL: 50% OF STAFF NOW SHAREHOLDERS IN COMPANY

FOCOL Holdings says

225 employees, representing around half its total workforce, have enrolled in its employee stock ownership programme (ESOP) to become shareholders in the company.

Dexter Adderley, president and chief executive of the BISX-listed petroleum products and energy supplier, said in a statement:

"Today marks a truly significant milestone in the journey of FOCOL Holdings. We are gathered here to announce and celebrate the launch of the FOCOL Employee Stock Ownership Programme.

we focus on benefits to the employee:

1. Higher Earning Potential

Simply put, earning a college degree opens the door to better income potential.

2. Better Employability

Having a college degree increases the likelihood you will also have a job as more companies are sourcing talent with degree status.

3. Preparation for a Specialised Career

You can get a job without a college degree, but you may not be able to launch a career. Accountants, teachers, medical professionals, electricians and thousands of other careers require specific tertiary level certifications.

4. Increased Productivity

communities and building an infrastructure that can support the ambitious growth we envision.

When you earn a college degree, you develop more skills in your chosen field. More skills means a greater level of productivity, which benefits everyone in the workforce - from the employee to the employer.

5. Better Communication Skills

Higher education brings with it skills to communicate both verbally and in writing. You will be able to interact with your coworkers clearly, and learn how to communicate with your management team effectively.

6. Improved Self-Confidence

Finishing college is a huge accomplishment. When you graduate, you gain confidence knowing you have done the hard work and it has paid off.

7. Development of Critical Thinking Skills

High school classes are usually focused on imparting knowledge and building basic skills, leaving little room for developing critical thinking. A sound college education places greater emphasis on ensuring that you become a critical thinker.

8. Creating Networking Opportunities

When it comes to landing a job, it is often all about who you know. A professional network is a place where new job opportunities are found. Going to college automatically expands your professional network.

9. Creates Pathways to Career Advancement Opportunities

Your college education not only grows your network, but it also starts you on the path towards career advancement opportunities. You may learn about conferences and events in your field that add to your knowledge base and your professional connections. You may also be able to receive a certification that opens the door to greater career advancement.

• NB: Ian R Ferguson is a talent management and organisational development consultant, having completed graduate studies with regional and international universities. He has served organisations, both locally and globally, providing relevant solutions to their business growth and development issues. He may be contacted at tcconsultants@ coralwave.com

"This brings our shareholder count to over 2,000. Your decision to participate in this offering not only strengthens our company but also underscores a deep commitment to our collective future of fueling growth for people."

Clinton Rolle, managing director and general manager of Sun Oil, a FOCOKL subsidiary, added: “Our journey has always been about more than energy solutions. It's about empowering Bahamians and Turks Islanders, fostering resilient

"I am delighted to announce that more than 225 employees across the FOCOL group of companies are now shareholders. This represents approximately 50 percent of the total staff complement of the group. Today, we are here to recognise and congratulate them all as some of the newest shareholders of FOCOL.

"As managing director and general manager, I see this commitment from our team as a cornerstone for our future initiatives. This is a testament to your belief in FOCOL as not just a place of work but as a force for good.”

Jeridet Etienne, a Shell employee, said: “FOCOL has been a growing company and I decided to invest in my future. I hope that my future will be bright and I hope that my shares double in a few years."

Mr Adderley added: "As we move forward, let us all, whether shareholders or not, take pride in knowing that our work contributes to a greater vision. One that promises not only economic returns but also a better quality of life for the people of The Bahamas and Turks & Caicos Islands.”

PwC creates award for UoB’s main performer

PRICEWATER-

HOUSECOOPERS (PwC) Bahamas has established an award to honour the top-performing accounting student in the University of The Bahamas’ (UoB) MBA graduate degree programme. The PricewaterhouseCoopers Academic Award for Excellence in Accounting recognises the MBA student with the highest grade point average (GPA) above 3.5, and a cumulative GPA above 3.0. In addition to this recognition, the top student receives a monetary award donated by the firm.

The first award recipient was Donae Duncombe, an accounting professional selected for her outstanding academic achievements. After completing her undergraduate studies at Acadia University, she joined PwC Bahamas in 2015 as a firstyear assurance associate and remained with the firm until 2018.

At UoB’s Spring 2024 awards ceremony, Myra Lundy-Mortimer, PwC Bahamas territory assurance leader and human capital partner, presented the award on behalf of the firm: “The PwC Bahamas Award solidifies our

ongoing commitment to partnering with the University of The Bahamas in recognising academic excellence among outstanding graduates who are blazing trails in academia and their careers," she said.

"With Donae being the first recipient of the award, it was a proud moment for the firm and also came as a surprise. As a former colleague, watching her excel professionally while continually upskilling academically makes me proud. The future of the accounting profession is bright."

PwC Bahamas has actively been engaged with Remelda Moxey, dean of graduate studies and research at the University of The Bahamas, to explore ways to collaborate with the institution to honour the top achiever.

Denise Knowles, human capital senior manager at PwC Bahamas, said: “Having partnered with the University of The Bahamas for many years, in 2019 Remelda Moxey and I discussed ways to reward exceptional academic achievements of award recipients.

"Over the past five years, PwC has reaffirmed its commitment to honouring high achievers, ensuring that our dedication to fostering academic excellence remains unwavering.”

Up to 70% of SMEs brace for light bill rise

new rate structure, branded the Equity Rate Adjustment, that was unveiled last week as part of the Government’s wide-ranging energy sector reforms. The revised tariffs, which take effect from July 1, seek to provide light bill relief for vulnerable households and low usage consumers that is subsidised primarily by the business community.

The changes will give all consumers - both households and businesses - a 2.5 cent per kWh hour discount to BPL’s actual fuel charge on the first 800 kWh they consume. But, above that threshold, BPL customers will have to pay an extra 1.5 cent charge over and above BPL’s actual cost of fuel for every kWh used.

The Prime Minister’s Office, giving an example of how this would work, said:

“If the [actual fuel charge] is 20 cents per unit (kWh), then the customer will be 17.5 cents per kWh for the first 800 units (kWh). The remaining units (kWh) will be billed at 21.5 cents.”

The Bahamas Chamber of Commerce and Employers Confederation (BCCEC) has already voiced fears that BPL’s new rate structure will raise energy costs for “most

businesses” in the shortterm (likely two to three years) until the full benefits of the Government’s energy reforms, namely the switch to cheaper liquefied natural gas (LNG) fuel and the incorporation of solar and renewables into the mix, are felt.

However, Mrs ColebyDavis previously challenged fears of increased energy costs for most Bahamian businesses as a result of the revised BPL tariff structure by asserting that “56 percent of regular commercial consumers always consume less than 800 kWh”.

This, she implied, would place most companiesespecially SMEs - below this consumption threshold and into a space where they will enjoy discounts on both BPL’s base rate and calculated fuel charge. And the Prime Minister’s Office, in declaring a “new energy era”, said only “300 general service customers representing about 500 accounts, who are less than 1 percent of the total customer base”, will see bills rise.

Dionisio D’Aguilar, Superwash’s principal, yesterday told Tribune Business that he calculated the revised BPL tariff structure will increase his laundromat chain’s annual light bill

by around $30,000. This, he added, follows swiftly behind last year’s 47.5 percent year-over-year increase in energy costs as a result of BPL’s fuel recovery ‘glide path’ and numerous other additional cost pressures imposed on businesses.

Describing the business climate in The Bahamas as “increasingly uncomfortable”, the former FNM Cabinet minister said of the Equity Rate Adjustment: “That will probably add another $30,000 to our electricity bill annually, which is coming off the back of a 47.5 percent increase from 2022 to 2023.

“It went up by 47.5 percent in 2023 compared to 2022 and this, assuming usage is the same, that would then add another $30,000. I always say there are three problems with our energy. One, it is very costly. Two, it’s very unreliable, and three, it’s dirty. It’s not consistent power; it’s surging and spiking and dipping.

“The plan they [the Government] have will hopefully address that problem but that will be years in the making.” The Prime Minister’s Office, seeking to ease the short-term pain of higher energy costs for large consumers such as Superwash, promised that “bills will still

be lower than during the same months of the prior year”.

That, though, will not be difficult since last summer’s energy bills contained fuel charges that were 163 percent higher than October 2022 - just eight months prior - as BPL sought to reclaim under-recovered fuel costs.

Still, the Prime Minister’s Office said of BPL’s largest consumers: “They will gain enormously from new energy reforms, as transmission and distribution upgrades will increase efficiencies and improve reliability which, along with the integration of solar power and natural gas, will produce meaningfully lower prices in the coming years.”

Asked whether the anticipated BPL cost increases will force Superwash to increase prices for its consumers, Mr D’Aguilar replied: “Probably not because we, by and large, raise our prices at the beginning of the year. We’ll hunker down and eat it, but this is yet another to add to the list of expenses that businesses are experiencing.

“You have the increase in power costs and the increase in National Insurance Board (NIB) contributions. Then you have the Business Licence fiasco, where

SEBAS SAYS CASINOS MUST ‘PAY FAIR SHARE’

FROM PAGE A24

revenue to the Government plus a 2 percent for community and charitable causes, which he considered a “deal”. However, the casinos pay a tax rate equal to 5 percent.

Now, Mr Bastian is calling out what he branded as the “disparity” between the tax rates paid by participants in the web shop gaming sector and those paid by the casinos. He suggested those levied on the latter should be increased.

“Now, 10 years later, I still have issue with this disparity in the tax between the land-based and the domestic gaming house operators. And I’m not sitting here suggesting that we should go down to 5 percent because I think that would be grossly unfair to my country,” Mr Bastian said.

“What I am saying is it’s about time that they come up and pay their fair share as well to the taxes. But, nonetheless, we are today, we’re at 15 percent and 17.5 percent of gross gaming revenue because it went up by 36 percent back in 2019. So, we’re still paying taxes, and we just hope that the taxes are being spent wisely and well to the betterment of the country.” Revenue figures released with the 2024-2025 Budget

show the web shops, or gaming houses, generate more than double the annual tax revenue collected from casinos. In the 2022-2023 fiscal year, for example, while casinos paid a collective $20.829m to the Public Treasury, the web shops generated $43.058m - a figure more than double, or 106.7 percent higher, than their hotel counterparts.

The pattern was repeated during the first nine months of the current 2023-2024 fiscal year, as $24.985m in web shop taxes dwarfed the $11.284m collected from casinos.

For the 2023-2024 fullyear, domestic gaming houses or web shops were forecast to generate the majority of gaming-related taxes at $36.02m or 57 percent of the $63.264m total. Casinos were to pick up the balance at $27.244m. A similar split is predicted for the upcoming 2024-2025 fiscal year, with web shops forecast to generate $39.459m in taxes compared to $22.885m coming from casinos.

Hotel-based casinos typically attract tax breaks and other concessions as a result of the Heads of Agreements that the mega resorts, of which they are part, agree with the Government.

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL

The Public is hereby advised that I, MARGURITE SANDS, of Nassau, The Bahamas, intend to change my name to MARGUERITTA SANDS If there are any objections to this change of name by Deed Poll, you may write such objections to the Chief Passport Officer, P.O.Box N-742, Nassau, The Bahamas no later than thirty (30) days after the date of publication of this notice.

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL

The Public is hereby advised that I, ANTONIQUE ETORA LEARY of P.O. Box N-10467 #16 Rocky Pine Road, Carmichael Subdivision, Nassau, Bahamas, Mother of ANIJAH JUSTICE BROOMFIELD A minor intend to change my child’s name to ANIJAH JUSTICE LEARY If there are any objections to this change of name by Deed Poll, you may write such objections to the Deputy Chief Passport Officer, P.O. Box N-742, Nassau, Bahamas no later than thirty (30) days after the date of publication of this notice.

NOTICE is hereby given that EDER TOUSSAINT of Harbour Island, Eleuthera, The Bahamas applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 14th day of June, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

This is at least a partial explanation for the seemingly more favourable tax treatment they obtain when compared to the web shops, especially since the casinos are seen as a key part of the tourism product and in helping to attract a particular visitor segment to The Bahamas, thereby boosting foreign exchange earnings.

Meanwhile, Craig Flowers, the FML Group’s principal, said the domestic

gaming industry was operating “at warp speed” when compared to banks at the time it was legalised in 2014. The Government. he added, “inherited” a fully functioning industry build by gaming house operators. He said: “I’ve had a rollercoaster with this tax thing… Keep in mind, we had an industry operating as efficient, as smooth, as fast, as vibrant as any bank. We have mobile devices,

NOTICE

NOTICE is hereby given that KELLY DUBIQUE of Yellow Elder Gardens, Nassau, The Bahamas applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 21st day of June, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE

NOTICE is hereby given that NATASHA VERONICA THOMPSON of #13 Braemar Drive, Bahamia West P.O. Box. F.44796 Freeport, Grand Bahama, The Bahamas applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 21st day of June, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

basically you had to pay the Business Licence in the first quarter of this year for 2023 and 2024. On top of that, you had to get an audit or independent review done by an accountant. This is an incredibly uncomfortable business environment.

“Power is up, NIB is up, Business Licence fee is up. Corporate income tax is on the horizon. I can tell you that businesses are not happy. This additional BPL charge is just another increased cost on a business in The Bahamas.”

Mr Turnquest, meanwhile, said his small business members plan to analyse and compare their energy costs for July, August and September with prior years to determine exactly how the Equity Rate Adjustment will impact their operations.

“What we will do is an analysis so we can get empirical data and determine how significantly we are affected; if the cost is going up, staying the same or reducing,” he explained. “We are not expecting a reduction; we are expecting an increase, but we don’t want to make a judgment call or assumption.

“All of our members have exhausted their strategies for reducing energy costs relative to energy efficient light bulbs, air conditioners,

we have technology, we have developers, we have ATMs, we have everything tied to our platform. We were moving at almost warp speed comparative to banks.

“So when the regulations came, they came in and offered an industry already designed for most part by us. There were no developments to be made by the Gaming Board. The Gaming Board and the Government inherited us with all the hard work and the ingenuity and the amount of day, nights, evenings sacrificed.”

Mr Flowers conceded that having to pay taxes

coolers, timers on their lights. We already cover all the relevant energy saving initiatives. A few members who have the capacity can afford a $5,000-$10,000 generator.

“But the majority of our members are not allowed, because we rent and the landlords do not allow us to set up a generator at the back, so we have to absorb any type of outage or load shedding. There could be other challenges we incur because outages and load shedding damage equipment, and it’s very inconvenient for customers to come into a dark place with melted ice cream and hot drinks.”

For that very reason, Mr Turnquest said convenience stores that lack generator power do not typically stock ice cream, popsicles and other perishables during summer for fear of the losses they will incur during power outages.

“My clients and members in the majority do our homework,” he added, “but we cannot do anything about the charges we are billed monthly. It’s going to be a wait and see.”

was a “struggle” for domestic gaming houses, and the issues surrounding it will likely exist “for some time”. He said: “The taxes were a struggle for us, but understand that we were in a whirlwind with policymakers, with an industry which we built from scratch to where it was, and we were quite proud of what we had produced. So yeah, taxes were certainly a major issue for us in this journey, and like Sebastian says, it probably will be around for quite some time.”

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL

The Public is hereby advised that I, ROSHONDA LAKERAH THOMPSON, of P.O. Box F42084 Freeport, Grand Bahama, The Bahamas, intend to change my name to ROSHONDA LAKERAH McINTOSH If there are any objections to this change of name by Deed Poll, you may write such objections to the Chief Passport Officer, P.O.Box N-742, Nassau, The Bahamas no later than thirty (30) days after the date of publication of this notice.

Land reform ‘something we desperately need’

and Land Registration Bill were released for public consultation with the ambition of having Parliament pass them into statute law by fall 2024.

“The present system is totally anachronistic and places a burden on the lawyers and the public,” he added. “I hate to say it, but there’s no such thing as a perfect, absolute title in The Bahamas. You can search a title for days and pronounce it clean and then, if you look at it again, you find something wrong.

“With all the permits, certificates, real property taxes and tax compliance certificates required now, you need that register to be sure everything is in compliance. It’s long overdue. The public will have certainty as to their title. And it’ll shorten the time it takes to do a real estate transaction.

“Our job as attorneys has doubled over the years with the red tape requirements of the Government. The job has doubled and the fee has gone down resoundingly. Lawyers have to currently inspect every document from 30 years going back. That takes time,” Mr Gape added.

“This will modernise real estate transactions and simplify the job of determining title and provide certainty to the title that exists. It will do away with what we have now. Sometimes you have two titles going down the same timeline, and it’s impossible to tell. That happens in the Out Islandsdual histories of title.”

Mr Pinder, unveiling the two Bills during the Senate’s 2024-2025 Budget debate, pledged that they mark “a revolutionary change that will be felt by all Bahamians” in establishing “the framework for registered land and the creation of a land registry run by a standalone Land Registrar”. He added: “We look to pass this legislation in the fall and, by the beginning of 2025, have active land adjudication panels processing title to be registered on the newly-established land registry. We will have to initially run a dual system, with the current system, with the establishment of the land registry.

“We will constitute land adjudication panels throughout the country who will verify title to property and, once verified as good title, the property will be put on the registry. Once the property is on the land registry the title will be deemed good and marketable title, without the need to do extensive and expensive title verification exercises.

“A properly-constituted land registry will be a fundamental change to the approach, cost and ease of doing business when it comes to property transactions. This is a fundamental shift in the status quo we experience today, a revolutionary change that will be felt by all Bahamians, and lift the country. As they say, all boats float in a rising tide.”

The reforms proposed by the Davis administration have been on the drawing

board for at least 14 years. The last Ingraham administration led a similar effort to that foreshadowed by Mr Pinder by developing a three-strong package of Bills that would have overhauled the existing system.

These Bills - the Land Adjudication Bill, the Registered Land Bill and the Law of Property Bill - would have created a land registry in The Bahamas, and given commercial and residential real estate buyers greater certainty that they had good title to their properties. However, they were ultimately shelved and no subsequent administration has seen fit to revive them until this one.

Many have referred to the present system as “a lawyer’s dream”, with attorneys earning a set fee - often equal to 2.5 percent of the purchase price - for conducting title searches and providing “opinion on titles”. Those not employed in the legal profession find it virtually impossible to navigate the system as structured and perform their own title searches, and Parliament tends to be dominated by the number of attorneys who are MPs and Senators by profession.

A presentation by the Davis administration’s Land Reform Committee, cochaired by Leon Lundy, minister of state in the Prime Minister’s Office, and attorney Sharlyn Smith, argued that land registration - or a system of registered landwill give all property owners in The Bahamas “security of tenure” as well as more

marketable land titles and improved access to credit.

The Committee also predicted it would reduce the number of land disputes given that the current system is plagued by “overlapping claims and rights to land where two or more people claim to own the same land”.

This has also resulted in “uncertainty regarding ownership”, helping to create “high transaction costs and mortgage-backed financing in the formal sale of land and slow process”. Further complicating the situation are “outdated policies for Crown Land divestment and administration which do not promote efficient and equitable use of the lands” plus the existence of commonage land and generational property.

Real property tax and collection of VAT on real estate sales would also improve under the reforms. Ms Smith told the Cat Island Business Outlook conference in 2022 that an Inter-American Development Bank (IDB) study conducted earlier this century had estimated half the privately-owned land parcels in The Bahamas were embroiled in some kind of dispute.

“The project found that 15 percent of the parcels in the country were in dispute,” she said then. “This is particularly significant given the observation that, by and large, 70 percent of the land is controlled by the Government. That leaves only 15 percent of the land, which is in private hands, not in dispute. Expressed differently, an IDB study in the

MINISTER REVEALS BPL LOSING $60M ANNUALLY

he argued “will place the Bahamian people in a worsening financial bind in the years to come, with very little flexibility to get out of what we believe to be nonindustry standard deals, which essentially amount to giveaways to selected private interests”.

Ryan Pinder KC, the attorney general, during his

contribution to the Senate’s 2024-2025 Budget debate, disclosed that the Government and BPL have the ability to terminate the agreement with Bahamas Grid Company, the entity that will take possession of and upgrade New Providence’s electricity grid, by acquiring the 60 percent majority private interest in the company “at fair market value”.

“The value of BPL’s interest in the SPV (Bahamas Grid Company) will likely increase after the infrastructure is upgraded,” Mr Pinder said, referring to the initial 40 percent minority stake that BPL/the Government will gain in the company by contributing grid assets with “a book value of $100m”.

“BPL has the right to purchase, at fair market value,

9 percent of the SPV and have 2 percent contributed to a foundation, adopting the Aliv and BTC model,” the Attorney General added. “If BPL wishes to terminate the arrangement, it can do so and acquire the rest of the shares of the SPV at fair market value.”

However, the ability to acquire an extra 9 percent equity interest, which would take the BPL/government

early 2000s found half the land in private hands was in dispute.”

Ms Smith last year told Tribune Business that enacting the proposed Bills, and the reforms they contain, will bring The Bahamas into line with almost all other English-speaking countries on land administration.

Besides giving all Bahamians “more certainty” when it comes to land ownership, she added that such a system will also create a land registry that will serve as the only place where persons can research and inquiry as to who a specific parcel of land belongs to, and if there are any liens or other charges secured on it.

Mrs Smith said the need for such reforms had been acknowledged going back to the pre-independence era, and added: “Ever since every administration has made some sort of mention of it, and that in itself is an indication of the good it stands to do for the country because of all the areas and people impacted.

“I think it’s something that’s critical. When we take that step we will further be following pretty much all of the English-speaking Caribbean countries. We’re one of the few that has not yet implemented land registration; a system of land registration.”

Prior to being registered, the ownership of all land parcels in The Bahamas will have to be determined and adjudicated. “The adjudication process itself will clarify a lot of land ownership issues, and establish

stake to a total 49 percent stake, only kicks-in once the agreement with Bahamas Grid has been in existence for seven years.

And, given that Bahamas Grid Company and its management company, Island Grid/Pike Electrical, will likely enhance the value of BPL’s New Providence grid via the upgrades it carries out, the Government and BPL will likely have to come up with a significant sum - likely hundreds of millions of dollars - to buy out the 60 percent majority interest should they so decide. Such a sum could be unaffordable.

Mr Pintard yesterday challenged why the Government was transferring transmission and distribution network assets, with a $100m book value, to the control of a company majority-owned by private investors rather than employing a build, own, operate, transfer (BOOT) model that would see these assets returned to BPL at no cost once the 25-year deal (which has a 10-year extension option) expires.

“Why would they not build into this arrangement that, at the end, it’s pretty much automatic that the asset returns to the sovereign?” he told Tribune Business. “As a second dimension, there should always be in the midst of this operation a clause that enables the Government to return the asset, that it’s pretty much on loan to them, and if there is nonperformance or lack of optimal performance, the Government can regain its asset from the care of the partner and the Government can find another partner. Why are you transferring it?”

Mr Pintard said Island Grid/Pike, and the investors putting up $30m of their own equity capital into Bahamas Grid Company, will be leveraging both the electrical grid assets transferred to the latter by BPL/ the Government and the 25-year contract they have to raise up to $100m in debt financing to fund the upgrades.

“I am not sure who the Government had negotiating on its behalf but they have worked out an agreement that is to the benefit of the investors,” the Opposition leader argued to this newspaper. He had earlier pointed to the imbalance between the $100m worth of grid assets contributed by BPL and the $30m equity injection by private investors, noting that the latter had gained the majority interest while putting in less.

“This significant difference in the equity ownership is not beneficial to the Bahamian people

ownership and rights to each parcel of land in the country,” Mrs Smith told Tribune Business.

“To do it in the context of adjudication, it will be more accessible to most Bahamians because the system will come to people as opposed to people going to the system. The cost can be very expensive. Once a land adjudication system is set up, it makes it more accessible to more Bahamians to establish land ownership rights.

“And once in the registry, it makes ownership more certain. It establishes only one place where you go to look at ownership of a parcel of land, which is the land registry. The system today requires doing a title search that goes back 30 years or to a Crown grant. This eliminates that,” she added.

“The Privy Council has told us ownership of land in The Bahamas is not absolute because we’ve not adopted a system of land registration. It will make it less costly to transfer land and make land ownership more certain and make it faster to transfer an interest in land. I think it’s brilliant.”

While transitioning to a land registration system, and determining the ownership of all parcels in The Bahamas, will likely take years, Mrs Smith said some areassuch as those that have been subdivided into lots and sold to buyers - could move more quickly. She added that persons would also have better notice of Quieting Titles actions, and whether their property is affected, under a registered land system.

when considering the value of the assets given to the new SPV by the Davis administration,” Mr Pintard said of Bahamas Grid Company.

“Additionally, the Davis administration also indicated that the new entity would go out and raise an additional $100m in debt to fund the upgrade of the transmission and distribution system. Imagine being able to get $20m per year for an investment of only $30m. What a sweetheart deal, and the deal even allows you to go out and borrow $100m.”

The $20m figure refers to the anticipated annual profits that Bahamas Grid Company will generate. Mr Pinder, though, yesterday seemed to include the debt that Bahamas Grid Company will raise in the private investors’ capital contribution to the company.

“It will cost $130m to sufficiently upgrade the grid to allow for efficient and reliable transmission of electricity to avoid collapse. The arrangement to upgrade the transmission and distribution is for BPL to contribute transmission and distribution assets to an SPV as a capital contribution for 40 percent equity ownership, those assets having a book value of $100m,” Mr Pinder said.

“The strategic partner, Island Grid, who is backed by one of the largest transmission and distribution companies in the US, contributes $130m as a capital contribution for 60 percent equity in the SPV. The $130m is then invested in the transmission and distribution network.” Tribune Business understands that the $100m balance of the $130m is due to come from a mixture of debt and equity raises.

Mrs Coleby-Davis, in her statement yesterday, largely sought to turn the tables on the Opposition by blaming the former Minnis administration for BPL’s woes.

“An outdated transformer critical to 25 percent of New Providence’s power supply remained unaddressed by the FNM. We are now forced to rectify this and other legacy issues they neglected,” she asserted.

“The illplanned Voluntary Separation Employment Package (VSEP) implemented by the FNM cost BPL over $70m and left a significant technical gap within the organisation$30m from Bahamas Power & Light and $40m from the pension fund. Many key personnel who were let go under the VSEP are still on contract with BPL, which is exacerbating operational costs.” The pension fund deficit was pegged at $122m.

Gov’t moves to close ‘the protection gap’

this sector as we move to strengthen food security,”

Mr Pinder told the Senate.

“The parametric nature of the insurance policy will ensure prompt and efficient upon the occurrence of specified natural events, streamlining the recovery process. We propose to have the private sector manage the administration of this programme, leveraging their expertise and resources for the issuance of cover and the payment of claims, the intricacies of which will be finalised in consultation with the Bahamas Insurance Association.”

Explaining the rationale for the move, Mr Pinder said: “The Office of the Attorney General has been tasked with changing the status quo on the availability of catastrophic property insurance for the most vulnerable in our country.

“We can all agree that given climate change, and the increase in frequency and severity of hurricanes, that catastrophic property insurance has been priced at a point that is out of reach for many Bahamians and most of the vulnerable in our society.

“The Government of The Bahamas is pleased to announce a collaborative initiative with private sector stakeholders in the insurance industry to address the protection gap in the country. This initiative is being developed in partnership with the Bahamas Insurance Association and a global insurance leader, and aims to provide vital insurance solutions, particularly for the vulnerable uninsured population, in the wake of natural disasters,”

Mr Pinder added.

“The aim is to significantly mitigate the strain on public finances following natural disasters, allowing for more efficient and effective disaster relief efforts. The Government, in collaboration with local private sector partners, has been engaging in discussions to expedite the development and roll- out of a new parametric insurance product.”

The Attorney General continued: “A Memorandum of Understanding (MOU) is expected to be signed shortly, outlining the key terms and commitments of the participating parties. The Government is committed to finalising the concept and determining the optimal funding model

for this programme to ensure its sustainability and effectiveness.

“This initiative represents a significant stride towards building a more resilient and protected Bahamas. By working collaboratively with the private sector, the Government aims to create a robust insurance framework that safeguards the vulnerable population and strengthens the nation’s resilience to future challenges.”

Mr Pinder then confirmed the Government is seeking to next month pass into law a series of reforms designed to overhaul The Bahamas’ outdated intellectual property (IP) protection regime.

“We are also on the cusp on intellectual property reform in The Bahamas, ensuring a modern legislative and registry framework to empower the Orange economy,” he added.

“This is fundamental to policy priorities of the Brave Davis administration, ensuring the ‘orange economy’ represents a significant component of our economic growth. Next month we will pass a suite of legislative amendments to enhance intellectual property protection in the jurisdiction.

“The new legislation and regulations will provide increased protection for trademarks, copyrights, patents, geographic indications and industrial designs. We have concluded our public consultation exercise on the proposed legislative framework and received comments from the IP section of the Bar, as well as detailed comments from the World Intellectual Property Organisation (WIPO).”

Reiterating the expected benefits of the reform package, Mr Pinder said: “The legislation will create a new Intellectual Property Office which will be responsible for a stand-alone IP registry and an IP registrar. Thus, the responsibility of managing intellectual property in The Bahamas will be removed from the Registrar General office and be put in a dedicated IP Office to manage the registry and industry development.

“The IP Office will be located within the Office of the Attorney General. This is a model adopted by many of our regional colleagues and proven to be a success. WIPO has also committed to provide a technical consultant and general expert advice on the establishment of the office, as well as incorporating the new

IP regime with the creative industry of The Bahamas. “On the launch of the IP Office, we also want to launch, with the partnership of WIPO, a special project on IP and Junkanoo. This would provide focused

consultation and a project plan to leverage the creative aspects of Junkanoo, to protect their interests and create additional opportunities for economic benefit from our national festival.”