THE Government is losing “massive amounts” of revenue on 75 percent of used vehicles imported into The Bahamas, one auto dealer is arguing, as he urged: “Go after the meat, not the potatoes.”
Brent Fox, Montague Motors’ principal, told Tribune Business that unlicensed used car salesmen/ importers and Internet sales are causing the Public Treasury to miss out on potentially lucrative tax earnings as he urged Customs to enforce the two-vehicle per year limit above which auto buyers are considered dealers.
Suggesting that lack of regulation is helping to facilitate the used Japanese vehicle scam highlighted earlier this week by the Consumer Protection Commission, he added that his previous pleas for
• Dealers: Treasury losing ‘massive amounts’ of revenue
• Urge Customs to enforce two vehicle per year limitation
• ‘Blind eye’ turned to unlicensed operators ‘in plain sight’
action from Ministry of Finance and Department of Inland Revenue (DIR) officials have produced no response.
Mr Fox told this newspaper: “I’ve already been down to numerous people explaining what’s going on. I went down to the Department of Inland Revenue and spoke to Shunda Strachan [the acting comptroller]. I’m telling her: ‘We’re struggling here. I’m paying bills off from years ago and trying to stay current with
everything, and threequarters of the cars coming are for people not paying Business Licence or VAT’. “It’s crazy what’s going on. I can say about threequarters of the cars coming in are for people doing that sort of importation. There’s maybe two dozen players bringing in five to ten cars each in addition to a lot of fraud going on. The Government is not collecting their dues on these cars. They are not collecting VAT on the sale and Business Licence fees.”
THURSDAY, JULY 4, 2024
Mr Fox reiterated longstanding auto dealer concerns that they are being forced to compete on an uneven playing field against unlicensed roadside dealers, who pop-up at different locations offering multiple vehicles for sale at the same time, but paying no Business Licence fees, National Insurance Board contributions and real property taxes, or VAT on the sales transaction.
He argued that the Government is also losing VAT on online used auto purchases by Bahamians and only collecting the tax when they arrive at the border. “These people in Japan or around the world are selling cars into our market and they’re not paying any Business Licence fees in selling direct to consumers here,” Mr Fox added.
DPM: Bahamasair’s $24m loss really ‘an investment’
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
THE deputy prime minister yesterday said he views Bahamasair’s multimillion dollar ‘red ink’ as “an investment, not a loss” because of the airline’s importance to tourism and the wider economy.
Chester Cooper, also minister of tourism, investments and aviation, in addressing the House of Assembly on legislative reforms to maintain The Bahamas’ top-tier status with US aviation regulators, disclosed that the national flag carrier had been able
to slash its annual loss by 20 percent year-over-year to $24m for 2023. Hailing Bahamasair’s chief financial officer and his team for bringing the
‘Victims of own success’: LPIA needs $200m spend
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
NASSAU’S major airport requires a $200m expansion to support “phenomenal growth” in tourist and passenger traffic, the deputy prime minister revealed yesterday, adding:
Aviation fee hikes threat to ‘competitive advantage’
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
A SENIOR tourism executive yesterday warned The Bahamas is “eliminating our competitive advantage” every time it raises fees on a private aviation industry that brings in one out of every six stopover visitors.
Kerry Fountain, the Bahama Out Island Promotion Board’s executive director, told Tribune Business that private pilots will “fly beyond us if they feel slighted” as he lamented the failure to consult, and provide advance warning, to the sector on the increased Customs fees that took effect on Monday.
Asserting that better collaboration would “make for a good partnership” with an industry responsible for bringing more stopover visitors to The Bahamas than Canada, Europe and Latin America combined, he added that the manner in which the increases have been implemented is no reward for private aviation’s loyal support for this nation.
Mr Fountain, noting that the Aircraft Owners and Pilots Association’s president had earlier this year encouraged all his members to continue flying to The Bahamas when the media frenzy over the US crime alert was at its height, told this newspaper that it “blew my mind” that this nation continues to repeat past mistakes.
Referring to a July 2, 2013, report headlined ‘Pilots caught off-guard by new Customs fee’, he added that history now seems to be repeating itself given that the new aircraft inbound and outbound fee
“We are victims of our own success.” Chester Cooper, also minister of tourism, investments and aviation, told the House of Assembly in leading-off a debate on legislative reforms to ensure The Bahamas retains its top-tier status with US aviation regulators that he frequently has to “wait for a gate” to become available when arriving at Lynden Pindling International Airport (LPIA) due to heavy aircraft volumes. “NAD saw approximately 3.5m arriving and departing passengers at Lynden Pindling International Airport between July 2023 and April 2024, representing a 10 percent increase over the same period in the prior fiscal year,” he said. “The ongoing airside infrastructure improvements and international parking lot equipment upgrades will enhance passenger experiences.
“But, frankly Madam Speaker, at LPIA we are victims of our success in tourism. As a result of overwhelming traffic and increased airlift, we are
KERRY FOUNTAIN
CHESTER COOPER
90 percent demolition done at Royal Beach Club project
By FAY SIMMONS Tribune Business Reporter
PHIL Simon, president of the Royal Beach Club, said the project has completed 90 percent of the structure demolition with the process targeted for completion by September.
He said of the project, which is still in the site preparation and demolition stage: “We are probably 90 percent complete with the demolition of those structures. However, that’s not the completion of the demolition process. It’s also tree relocations, there’s site prep. There are other things that will probably take us to the end of August, I would say, for the completion of that process, end of August, September.” Appearing on Guardian Radio yesterday, Mr Simon said the construction phase is expected to begin during the third quarter.
The heads of agreement for the 17-acre project on
the western end of Paradise Island was signed in April, with work beginning shortly after.
During the signing, Prime Minister Philip “Brave” Davis said the $165m project will help further to enhance the vitality of the country’s tourism project. He said that not only would the project create 200 jobs, but Bahamians would also have ownership of the multimillion-dollar project. “Bahamians will not just work there,” he said. “People of this nation will also share ownership in this development as well. It is anticipated that PDI Paradise Limited will hold at least 51 per cent of the shares in the Royal Beach Club, with the remaining shares allocated to the National Investment Fund for the benefit of the Bahamian people. Through this partnership, we will provide new employment and economic opportunities for this nation.”
Mr Simon said yesterday there are a “couple more
steps” to finalise the offering that he expects to be made available by the third quarter of this year.
He said: “In a nutshell, it’s a partnership. So it’s a joint venture between the people of The Bahamas and Royal Caribbean, the split is 49/51, 51 percent Royal Caribbean 49 percent Bahamians.
“I know, everybody’s been asking, but you know, just a couple more steps required to get to the offering. But not the full 49 percent because the government does have a percentage share already, based on obviously the crown. But we want to get to that offering again later this year, hopefully by Q3. And so once that happens, Bahamians have the opportunity to buy into the project.”
He added that he expects formal requests for proposals (RFP) for vendors and services at the Royal Beach Club to be sent out by the last quarter of this year or the first quarter of 2025.
‘Victims of own success’: LPIA needs $200m spend
approaching full capacity and will need to invest an additional $200m to support this phenomenal growth trend.” Mr Cooper did not give timelines or specifics for the planned LPIA expansion, describing this as “a story for another day”.
However, he added: “But we want an airport for all Bahamians that all Bahamians can be very proud of; that can continue to be the best airport in the Caribbean without question and generate economic growth and activity. This is what we will continue to do...
“But suffice to say, Madam Speaker, I routinely, when I arrive at LPIA, routinely as the minister responsible for aviation have to wait for a gate. I don’t get mad, I don’t get salty. I am grateful to God that I have to wait for a gate because we are victims of our own success, Madam Speaker, which I celebrate.”
Dr Kenneth Romer, the Government’s aviation director, said in November 2023 that there are plans for a new runway and taxi ways at LPIA. He added that the airport’s operator, the Nassau Airport Development Company (NAD), was developing a comprehensive plan to address all of the concerns about necessary upgrades.
“I’ve met with the chairman and the president of NAD, Vernice Walkine, and NAD has unveiled a plan that speaks to the expansion of the taxi ways and additional runways. So,
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I am certain that very soon we would invite the media to see those plans. But there is a plan to address the air side concerns and components at the LPIA,” Dr Romer said.
When asked if the plans include a new runway, Dr Romer said: “The short answer is yes. The plans do include a new runway. The plans also include addressing the concerns with the control towers. The concerns speak to the problem with the runway, speak about a comprehensive way that we can address the congestion between the FBOs and the commercial legacy side of LPIA. The president of NAD, I’m certain, will be unveiling plans very soon to the general public.”
Mr Cooper, meanwhile, yesterday hailed the increased airlift and route connectivity that The Bahamas is now attracting. “Our efforts to increase airlift and connectivity have yielded impressive results,” he said.
“By the end of 2023, overall airlift grew by 17 percent over the previous year, surpassing pre-pandemic levels by 4 percent.
“This expansion has been driven by the introduction of new airlift routes and charter operations from various international destinations. We have direct non-stop service from an impressive 25 North American cities and a total of 31 international destinations. We expect future new and expanded routes from Africa, the Middle East and Central and South America.”
Noting that The Bahamas plans to launch its digital
Immigration card “within the next six months”, Mr Cooper accused the Opposition of “talking fool” over the country’s tourism numbers and added: “I am troubled by their need to talk down our number one industry and it’s impact on the economy.”
Opposition MPs denied that they had “talked down” Grand Bahama, but the deputy prime minister retorted: There has been a consistent talking down of Grand Bahama over the last three years. It’s pitiful; it’s absolutely pitiful.”
He asserted that stopover visitor arrivals for the entire Bahamas were up 5.8 percent year-over-year for the five months to end-May 2024 and Grand Bahama “one of the fastest growing in The Bahamas” at 14 percent.
Noting that stopover visitors typically spend $2,800 during their Bahamas vacation, compared to just $100 by cruise passengers, Mr Cooper said this nation is “constrained” in attracting more of the former at present “by our limited capacity in hotel rooms” which is why he has set the goal to double this by 15,000 within ten years.
“You don’t have to be a genius to figure out which one we want more of,” the deputy prime minister added of the comparison between stopover and cruise visitors. “Yes, we need more, we encourage more, we want more, they spend more and therefore we will welcome more every day of the week.”
Bahamasair opens up new route to Jamaica
By FAY SIMMONS Tribune Business Reporter
DR Kenneth Romer, Director of Aviation announced yesterday Bahamasair will be launching a new route to Montego Bay, Jamaica, on July 25.
Speaking to reporters, Mr Romer said the new route will expand the flag carrier’s Caribbean offerings and is expected to be a relationship that brings “reciprocity”.
He said: “The 25th of July, Bahamasair is actually launching into Montego Bay, Jamaica. There has always been a very close relationship ally between the Bahamas and Jamaica. We’ve been extending our conversation as they’re releasing into Caribbean travel.
“So Jamaica continues to be a very good hub, and also The Bahamas for visitors. Obviously, students are in Jamaica. Jamaica is a vacation hot spot. But at the same time, there is reciprocity, we have commonalities as it relates to our sense of culture, being an authentic destination, so demand is certainly there.”
DR KENNETH ROMER
Mr Romer also gave update on the concerns raised about conditions at Cat Island’s New Bight airport after Western Air suspended flights to the destination last week due to the “hazardous state” of a runway that has previously damaged aircraft and prevented a scheduled take-off.
The airline resumed flights to Cat Island on Monday, after the airport received temporary repairs.
Mr Romer said a team was “immediately mobilised” to address the issue and that the department understands the importance airlift in the country.
He said: “There were some repairs as it relates to potholes. It was a fix. We understand the importance of airlift not just to Cat Island, but to all of the islands of the Bahamas including our Family Islands, so we mobilised the team.
“The work, first of all was an ongoing work so when Western Air raised the concerns, we immediately mobilised a team that to address it. After a safety inspection Western Air felt comfortable to deploy their service again. It’s an ongoing exercise to give Cat Island not just a new terminal, but significant improvements to the air side as well.”
Western Air’s decision to suspend flights to Cat Island comes amid a planned $18m overhaul of New Bight’s airport that includes runway upgrades, will - temporarily at least - threaten to undermine the flow of tourists, commerce and freight to Prime Minister Philip Davis KC’s constituency as well as impact travel for residents.
It is unclear if any other airlines are set to follow Western Air’s lead, but the destination has previously
struggled to attract major airlift.
Western Air’s decision to suspend flights to New Bight, and the concerns over Andros runways, highlight why the Government is urgently moving to upgrade, overhaul and transform airports throughout The Bahamas using private capital and partners. It simply does not have the means to finance itself the $263m needs of just 14 of the 29 airports it holds via the Airport Authority.
Dr Romer in May 2023 pledged that Cat Island was “going to get the whole hog” when it comes to airport, roads and utilities upgrades and investments.
He added that the New Bight International Airport’s runway will be moved further south and extended in an $18m overhaul as part of the 14 Family Island airport private-public partnerships (PPPs).
Revealing that the proposed 12,000 square foot terminal facility will also get a new control tower, fire station and maintenance facilities, as well as a 102-space parking lot, he reiterated previous assertions that New Bight will become “the regional model and trend setter when it comes to sustainable airports”.
Dr Romer said: “Cat Island, you’re going to get,
like mama says, you’re going to get the whole hog in Cat Island. It’s coming sooner rather than later.
As we like to say in The Bahamas, it’s coming soon directly... it’s for the future generations. Cat Island, for a long time, has been crying for airport infrastructure in Arthur’s Town and New Bight.” However, he also acknowledged the poor condition of the existing runway. “We landed yesterday and I prayed for the plane,” Dr Romer revealed, adding that the improvements to both airports will address “the risk of breaking up those planes every time they land”.
Aviation fee hikes threat to ‘competitive advantage’
structure was prompting similar complaints that the private aviation industry has been “blindsided” and caught unawares by the changes.
And, given that Florida provided 95,000 private aviation visitors to The Bahamas in 2023 to cement its status as the leading US source market, Mr Fountain warned that every time fees increase it threatens to undermine this nation’s main competitive advantage of proximity.
To soften the blow, he urged the Bahamas to adopt the same approach to private aviation as it has done with the boating/ yachting industry. Mr Fountain suggested that pilots and companies who fly regularly to The Bahamas be able to purchase annual and semi-annual permits at discounted rates, similar to annual and semi-annual boat cruising permits, to soften the financial impact.
The fee increases, unveiled as part of the Customs Management (Amendment) Regulations 2024, represent a threefold and six-fold increase, respectively, on the previous Customs fee structure
for private aviation which was $50 “inbound” and zero “outbound”. Now, with the changes, commercial jets will have to pay a $50 “inbound” and $50 “outbound” fee for a total of $100. However, a private plane with four seats or less “including all seats in the cabin” is now faced with paying $75 each way for a total of $150. That is slightly more than the $100 fee for a commercial jet, but private aircraft with more than four seats “including all seats in the cabin” now face having to pay $150 “inbound” and “outbound” fees to Customs for a total $300. So-called “recreational” flights will only pay $150 “inbound”, but it is unclear what this definition means and how it will be applied in the absence of any guidance notes.
Providing an insight into what is at stake, Mr Fountain told Tribune Business: “I don’t think a lot of us understand the importance of private and general aviation. If you were to look at the number of people that are coming into our country by private plane as air arrival stopover visitors it’s actually more than we are getting from Latin America,
Europe and Canada combined. That’s how big it is.
“In 2023, we had just over 323,000 air stopovers that arrived by private plane...... If we were to break the numbers down by the top five states, there’s approximately 95,000 arriving just from the state of Florida by private plane. The others are Texas, Georgia, New York and North Carolina.”
Mr Fountain said Florida’s proximity means it is this nation’s major private aviation source market because The Bahamas is easier and relatively cheaper to access. However, he echoed the concerns of Rick Gardner, a Bahamas Flying Ambassador, in warning that this proximity advantage is eroded every time this nation raises the cost of accessing the destination.
“What we are doing as we continue to increase these fees is really doing away with our major competitive advantage, which is proximity,” the Out Island Promotion Board chief told this newspaper. “We’re doing that by increasing fees without consulting our partners.
“It’s not that they cannot afford to pay the difference. It’s just that they need to
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be consulted, and because they feel slighted they will fly beyond us. Every time we increase fees, whether it is Customs or aviation fees, what we are doing is eliminating our competitive advantage.”
Mr Gardner expressed similar sentiments to Tribune Business earlier this week, describing the private aviation market as “fickle”. He warned that, if pilots and their guests feel The Bahamas is trying to take advantage of or exploit them with fee increases because of their perceived wealth, they have the ability to fly to other Caribbean destinations based on “the principle not the monetary value”.
“It has to do with partnership, consultation and collaboration,” Mr Fountain said yesterday. “Yes, Bahamas Customs do have every right to do what they feel they must do, but consultation before implementation makes for a good partnership. Any time you are talking about aviation, consultation should involve the Ministry of Tourism, the Flying Ambassadors and AOPA.”
Pointing out that AOPA should always be consulted, given that it represents 400,000 private pilots and aircraft owners from 75 countries, the Promotion Board head said the group came to The Bahamas aid earlier this year by telling its members to continue flying to and visit this nation amid the furore sparked by the US and Canadian crime alerts.
“Yes, do what you have to do, but consult with a partner that has helped us in the past and can help
us moving forward,” Mr Fountain said. Emphasising that he is not blaming or criticising any government, he added that his research showed similar private aviation fall-out over Customs fee increases occurred more than one decade ago.
“You know what blew my mind away?” he said of those events in 2013.
“To me, it tells me some alarming things. It tells me we have not learned from our past mistakes or we have failed from one leadership team to the next to share information and process requests for future guidance.
“Earlier this year we had the deputy prime minister, who is minister of tourism, saying that tourism is everyone’s business. It’s not just my business, it’s not just your business, it’s Bahamas Customs’ business, it’s Bahamas Immigration’s business, it’s Bahamas civil aviation’s business, so communication and collaboration are the key backdrop to fiscal responsibility.
“We cannot be making these decisions like this that impact such a huge sector of our business without consultation.” To soften the financial impact, Mr Fountain suggested The Bahamas “transition” what it is doing with annual/semiannual cruising permits for visiting boaters to the private aviation industry so that someone regularly flying to their home in Treasure Cay, for example, does not have to pay $300 every time for the privilege.
Besides offering discounted long-term fees, Mr Fountain added: “The benefit of that is that it requires
less manpower. People forget that time is money. If you are selling me an annual pass, Customs does not always have to come and check me and can do something else.”
The economic impact generated by private pilots and their guests is especially significant in the Family Islands where they help to spread and diversify the wealth. Their spending boosts the likes of hotels, vacation rentals, tour operators, ground transportation providers and restaurants.
The inbound/outbound fee increases associated with aircraft declarations tie-in with the Government’s Budget position that certain fees were to be increased to cover the costs associated with providing public services. They also align with the Davis administration’s policy, unveiled in the 2023-2024 Budget, of seeking to increase fees on foreign visitors to The Bahamas while minimising those on Bahamians.
The Government likely perceives the private pilot/ aviation industry as having deep pockets, viewing private plane ownership and use as a sign of wealth, and able to easily absorb the fee increases laid out in the Customs Management (Amendment) Regulations 2024. They also include a $2,500 fee that will be levied if an aircraft declaration is submitted less than one hour before the plane arrives in The Bahamas.
‘Meat, not potatoes’: Gov’t loses on 75% of used autos
FROM PAGE B1
“I’m a Bahamian, and I have a right to have rights like everyone else. These people should not be allowed to operate in our territory without paying some sort of fee. I could be doing a whole lot better than I am doing now. I’m doing OK but could be far busier if the Government would address this. The amount of revenue the Government is missing out on, they really need to pay attention to.”
Getting online auto dealers, based outside this nation, to levy VAT on sales to Bahamian consumers and then remit the correct amount of tax to the Government is likely to be extremely challenging. Mr Fox, though, compared the situation to the agreements struck with the likes
of Facebook and Amazon to collect VAT on purchases and advertising by Bahamians.
Describing the amount of tax earned from these arrangements as “minuscule” compared to what was being lost via online auto purchases, he added: “It’s amazing what they’re missing out on. Why would you not go after the meat of the situation rather than the potatoes?
“The biggest amount of money spent on imports here is auto imports. If the Government was getting their fair share of that, there could be no telling what it may do for the deficit. There’s all kinds of things going on.”
As for unlicensed dealers and importers, the Montague Motors chief told this newspaper that some were likely involved in the scam
DPM: BAHAMASAIR’S $24M LOSS
REALLY ‘AN INVESTMENT’
FROM PAGE B1
airline’s audits current, he argued that the airline’s importance to enhancing connectivity and access to the destination by opening up new tourism markets and routes was often “under-estimated” by Bahamians.
“Madam Speaker, let me be clear that while I applaud the good work with completing the financial statements, I should also point out that in 2022 Bahamasair lost upwards of $30m,” Mr Cooper revealed. “But I must point out that there’s been a significant improvement. The 203 audit revealed they only lost $24m. That’s a 20 percent improvement. I commend them for their great work.”
The figures disclosed by the deputy prime minister indicate that Bahamasair, which has always relied heavily on taxpayer subsidies to pay bills, make ends meet and keep flying, cut its losses by $6m year-overyear for 2023 compared to the prior year.
Given that the airline’s financial year close is endJune, it aligns with the Government’s Budget cycle. Based on the numbers revealed by Mr Cooper, it would appear that Bahamasair’s 2023 loss was slightly less than the $26.269m subvention budgeted for the 2023 financial year.
The deputy prime minister, meanwhile, signalled that making a profit is not Bahamasair’s primary goal but, rather, helping to grow tourism and the wider economy by providing increased access to this nation while also providing air transportation connectivity to sparsely populated Family Islands that otherwise would not be serviced by commercial airlines.
“Sometimes we underestimate the importance of Bahamasair to the Commonwealth of The Bahamas,” Mr Cooper said. “I personally don’t look at the $24m as a loss. I look at it as an investment. It’s an investment in the economy of The Bahamas, in the tourism industry.
“Bahamasair is important for the economic benefit, it’s important for the community, it’s important for the regional aspirations. It’s important for us to be able to diversify into new markets and lead new routes to The Bahamas and, of course, it’s in the national interest that we continue to keep a strong national carrier.”
Acknowledging that Bahamasair was often the subject of jokes, Mr Cooper countered that the national flag carrier is “providing such a great national service with a great safety record that we hold them on a pedestal”.
identified by the Government’s consumer watchdog where persons were paying 50 percent of the purchase price upfront for a used Japanese vehicle only for the same auto to be sold to multiple other buyers while being shipped to The Bahamas.
“Those very people doing these frauds are already getting the lion’s share of the market,” Mr Fox argued to Tribune Business “Seven hundred used cars came in last month. How many were there for Montague Motors? Maybe 20. Tell me who all those other cars are going to, and who’s collecting VAT? There’s a massive amount of money changing hands.
“They are bringing in multiple units, selling them on the side of the road and not paying their dues. Foreigners are also
He added that the airline is also likely to play a key role in providing greater air connectivity throughout the region as the Caribbean seeks to develop multi-destination tourism. “It’s our imperative to use the asset of Bahamasair for the good of the entire region,” Mr Cooper said.
“We’re continuing to have those discussions as it relates to multi-destination tourism; how we can create more connectivity to the Caribbean to support our brothers and sisters and their families, and generating more activity in their economies. Bahamasair will be critical to these regional aspirations.”
As for completing outstanding audits, and bringing the carrier’s financials up-to-date, Mr Cooper said: “When we came to office in 2021, Bahamasair was still working on their 2018 financial statements. Over the course of the last three years, they have completed the audits for 2019, 2020, 2021 and 2022, and when I arrived at my office at 7.02 this morning I had the pleasure, the pleasure of seeing the audited financial statements for 2023. This is phenomenal work, Madam Speaker.”
Mr Cooper added that Bahamasair increased its seat capacity with the addition of a fourth Boeing 737 jet in December 2023 - a move that will also aid further expansion of the airline’s route network. And the May 2024 restructuring of its aircraft loan with CIBC Caribbean (Bahamas) has reduced both interest and principal payments, “resulting in significant cost savings” although no sum was mentioned.
Noting that the national flag carrier has completed its International Air Transport Association (IATA) operational safety audit, the deputy prime minister said: “The airline’s new cargo services to Haiti and Cuba, as well as the reopening of mail services to the US, have expanded services and the ability to meet customer needs while driving revenue
“Bahamasair’s new interline agreements with Alaska Airlines and Virgin Atlantic, and the forthcoming agreement with Turkish Airlines, have expanded the airline’s reach and connectivity.” Mr Cooper added that an “extensive report” on Bahamasair has been provided by a team from Qatar Airways, which examined all technical issues at the national flag carrier.
He said one of the key findings is that the national flag carrier “needs more equipment in order to be an effective, profitable regional carrier that meets the national interest of creating connectivity and expanding tourism”.
selling direct to retail and not paying any dues here. I do know that three-quarters of the cars coming into this country are coming in by what appears to be a single buyer.
“You’re not supposed to bring in more than two cars per year. Customs is supposed to be alert for that. How do 700 cars come in without raising a red flag with Customs? Two hundred to 250 probably went to established dealers. That leaves 500 other cars for the month. How many cars is that per person? Customs is letting that happen or not doing their job,” he added.
“If you bring in more than two cars you should be paying NIB, Business Licence, VAT. Government is not getting their revenue from unlicensed dealers. It’s flagrant and very widespread. I have nothing to
hide. I’m paying all my taxes and Consumer Affairs comes down and checks my prices every six months.”
Ben Albury, the Bahamas Motor Dealers Association’s (BMDA) president, told Tribune Business that the authorities have “turned a blind eye” to unlicensed and rogue dealers operating “in plain sight” for “years and years”.
“All you have to do is drive around Nassau and see vehicles lined up on the side of the road,” he added, recalling one such location on Prince Charles Drive that was bedecked with flags to signal the presence of autos for sale. “You can go to any roundabout, any shopping plaza where these guys have vehicles lined up and are operating on the side of the road.
“I don’t know why a blind eye is being turned,
but until we look at it and take it seriously it’s not going to change. There’s no sense going over and over. It’s years and years behind where it should be. I know the Government wants revenue and and wants people to be compliant. We’ve seen that through the exercises the Government has taken. But there’s things happening in plain sight and this is one of them. It’s very mind boggling.”
Reforms ‘critical’ to Bahamas airlines’ ability to access US
FROM PAGE B3
resolved. The audit occurs every five to seven years.
Mr Cooper, meanwhile, reiterated: “The passage of the Civil Aviation Amendment Bill 2024 and the Civil Aviation Authority Amendment Bill 2024 is crucial for the future of aviation in The Bahamas. These amendments will not only address the FAA IASA findings, ensuring that we maintain our Category One rating, but also pave the way for continued growth and innovation in our aviation sector.”
The FAA IASA audit was announced on July 17, 2023, with the actual assessment taking place last year from October 16-20. Mr Cooper said the audit identified 46 findings across the eight critical elements, and the primary focus was to increase the autonomy of
the Civil Aviation Authority Bahamas (CAAB) He said: “The FAA’s assessment indicated that in certain technical scenarios the CAAB did not have the relevant powers, or decision-making powers were vested in the Board or the minister rather than being confined to policy and corporate administration. To address these concerns, we have brought these amendments.”
Mr Cooper added that most of the amendments “simply rephrase the content of the section to give CAAB or the directorgeneral autonomy in its technical decision-making processes”. He said the amendments will also expand CAAB’s authority to inspect personnel, aircraft, operating facilities and certification records of operators, as well as conduct continued surveillance
and address safety concerns.
The minister responsible for aviation has also been empowered to make regulations on issues such as public health, space flight and environment concerns in consultation with CAAB.
Mr Cooper said: “The amendment to Section 58 empowers the minister, in consultation with the Authority, to make regulations on various issues, including environmental concerns, space flight, public health and international agreements.
“This broad regulatory power ensures that our aviation laws remain comprehensive and adaptable to evolving challenges and opportunities in the aviation sector.”
Mr Cooper said the amendments strive to “strengthen the autonomy and effectiveness” of
CAAB and its director-general, who will now have the power to authorise individuals outside The Bahamas to perform regulatory oversight responsibilities and to “carry out powers and functions” on behalf of CAAB.
He added: “The amendments grant the director-general the authority to authorise individuals or entities outside The Bahamas to perform specified regulatory oversight responsibilities, enhancing our capacity to leverage international expertise and resources in maintaining high standards of aviation safety and oversight.
“Additionally, the Bill grants the director-general the power to delegate, designate or authorise individuals or entities to carry out powers and functions on behalf of the Authority.”
How
FROM PAGE B3
attitudes. This is not a “gotcha” moment; the employee needs to understand that while they may be a good worker, their entitled behaviour weighs negatively on the company. By and large, entitled employees can become a pain, tend to lose loyalty to a company and have a greater likelihood to go elsewhere. Ultimately, they become such a headache that you may be happy to see them go. Managers should not allow them to hold the company hostage.
Therefore, if this situation persists, a company may have to make a decision in its overall best interests. Until we meet again, live life for memories as opposed to regrets. Enjoy life and stay on top of your game.
• NB: Columnist welcomes feedback at deedee21bastian@gmail.com About columnist: Deidre M. Bastian is a trained graphic designer/brand
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Revised air space fees targeted for third quarter
actual expenses The Bahamas incurs for providing air navigation services.
The US Department of Transportation also raised concern over whether the level of charges is compliant with the Air Transport Agreement treaty agreed between The Bahamas and US, sparking discussions at the diplomatic level between the two countries resulting in the revised BANSA fee structure.
The air navigation services fees and origin/ destination fees are split between the Bahamas Civil Aviation Authority (BCAA) and BANSA, while the former is the sole recipient of the passenger levy.
Mr Cooper maintained yesterday that within less than a year of the fees’ implementation, BANSA was facing ‘“several challenges” over fees that were created to provide a financing mechanism for civil aviation regulation and oversight in The Bahamas so that the sector no longer has to rely on the taxpayer.
He said: “You may be aware that, since December 2022, the Bahamas Air Navigation Services Authority has faced several challenges to the air navigation services charging scheme that
was implemented in May 2021. This scheme provided for BANSA to be an independent and sustainable air navigation services provider through the introduction of a schedule of fees.
“First there is an overflight fee, which is applicable to flights transiting The Bahamas’ administered air space but neither landing in nor departing from any airport in The Bahamas, and then there is the origin and destination charge which is applicable to those flights landing in and/or departing from an airport in The Bahamas.”
Mr Cooper said since the US Department of Transportation’s dismissal of the complaint there has been “considerable effort” put into revising the fee schedule so that it is ‘fair, equitable, and sufficient” to cover BANSA’s operational and capital investment costs.
He said: “Since that time, considerable effort has been expended towards ensuring that our ANS charging scheme is compliant with the principles of cost-relatedness, and that it is fair, equitable and sufficient to support BANSA’s detailed operational and capital investment costs.”
Last year, Mr Cooper revealed that The Bahamas was forecast to generate $42.93m from its air space fees during the 2022-2023 fiscal year, although the outcome is “expected to be higher based on the fasterthan-expected recovery in air traffic movements” post-COVID.
“Between May 2021 and November 2022, fees invoiced under the air space scheme totaled $49.693m, of which $44.69m represented air navigation
services fees; $4.45m origin/ destination fees, and $1.3m was for the passenger levy,” he added. “Total fees collected through November 2022 are $42.68m, with receivables at $6.46m.”
The Bahamas, in 2021, signed a 10-year deal that outsourced management of 75 percent of its air space above 6,000 feet to the Federal Aviation Administration (FAA), with the US agency agreeing to waive the air navigation fees it
previously levied for using this country’s air space. However, arguing that these fees should only cover the cost of providing the service, the US airlines alleged there was no justification for “the tens of millions of dollars” that The Bahamas is collecting given that it is just paying, at most, $80,000-$100,000 to the FAA - sum equivalent to 1 percent of the charges. They claim this “runs afoul” of global best practice and agreements, plus the US
International Air Transport Fair Competitive Practices Act 1974.
The Bahamas had established a sliding scale for its air navigation services fees that ranges from $8.50 to $51.60 per 100 nautical miles based on the aircraft’s weight. Several observers have privately suggested to Tribune Business that the US airlines are seeking to bully The Bahamas by placing no value on the worth of this country’s sovereign air space.
PUBLIC NOTICE
The Public is hereby advised that I, JOHN HALL JR AND VIRGEN HALL of P.O. Box CB 11910 #16 Nassau, Bahamas, Parents of JOHN ANTHONY HALL MATOS A minor intend to change my child’s name to JOHN ANTHONY HALL IV 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. INTENT TO CHANGE NAME BY DEED POLL
NOTICE
NOTICE is hereby given that JEAN CELA of Kemp Road, 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 27th 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 DENO GEFFRARD of St. Vincent Road, New Providence, The Bahamas is applying to the Minister responsible for Nationality and Citizenship, for registration/naturalization as a citizen of The Bahamas and that any person who knows any reason whyregistration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 4th day of July, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
NOTICE
NOTICE is hereby given that LUDE BOCAGE of Bernard Road, 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 27th 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 CHARMADORA CAMELUS of Marsh Harbour, 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 27th 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 MESADIEU of Cowpen Road, Faith Avenue, 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 4th day of July, 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 NATACHA TELUSMA of Marsh Harbour, 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 27th day of June, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
Wall Street hits records as a slowing economy boosts hopes for lower rates
By STAN CHOE AP Business Writer
WALL Street’s recordbreaking rally kept going Wednesday after weak reports on the U.S. economy kept the door open for possible cuts to interest rates.
The S&P 500 rose 0.5% to set an all-time high for a second straight day and for the 33rd time this year. The Dow Jones Industrial Average slipped 23 points, or 0.1%, while the Nasdaq composite added 0.9% to its record set the day before. Trading ended early for the day ahead of the Fourth of July holiday.
Tesla again helped boost the market and rose 6.5% a day after reporting a milder drop in sales for the spring than analysts feared. It was one of the strongest forces pushing upward on the S&P 500, along with Nvidia. The darling of Wall Street’s rush into artificialintelligence technology climbed 4.6% to bring the chip company’s gain for the
year so far to 159%. The action was stronger in the bond market, where Treasury yields slid following a flurry of reports that came in weaker than expected on both the job market and U.S. services companies.
The data could keep the Federal Reserve on course to deliver the cuts to interest rates later this year that Wall Street desires.
One report said activity for businesses in the real estate, retail trade and other U.S. services industries contracted in June
for just the third time in 49 months. The reading was weaker than economists’ forecasts, which called for just a slowing of growth.
Perhaps more importantly for Wall Street, the report from the Institute Supply Management also said prices were increasing at a slower pace.
That followed reports from earlier in the morning showing a slowing job market. One said slightly more U.S. workers applied for unemployment benefits last week
than economists expected, though the number remains low compared with history. Another from ADP indicated employers outside the government slowed their hiring last month, when economists were forecasting an acceleration.
The hope on Wall Street is that the economy will soften by just the right amount: enough to keep a lid on upward pressure on inflation, but not so much that it throws workers out of their jobs and triggers a recession. A much more anticipated report will arrive on Friday, when the U.S. government will give its comprehensive update about how many workers employers added to their payrolls during June.
The yield on the 10-year Treasury dropped to 4.35% from 4.44% late Tuesday, a notable move for the bond market, and much of the
slide came after the report on U.S. services businesses. It’s been generally sinking since April on hopes that inflation is slowing enough to get the Federal Reserve to lower its main interest rate from the highest level in more than two decades.
Wednesday’s move erased some of a recent recovery for yields. Last week’s debate between President Joe Biden and former President Donald Trump pushed some traders to make moves in anticipation of a Republican sweep in November, which would raise the possibility of tax cuts and other policies that could cause the U.S. government’s debt to swell.
The two-year Treasury yield, which more closely tracks expectations for Fed actions, fell to 4.70% from 4.75% late Tuesday. Traders are now betting on a nearly three-in-four chance that
the Federal Reserve will cut its main interest rate as soon as September, according to data from CME Group.
On Wall Street, Constellation Brands sank 3.3% after swinging between gains and losses during the day. The company behind Modelo beer and Robert Mondavi wines reported stronger profit for the latest quarter than expected, but its revenue came up just shy of financial analysts’ forecasts.
All told, the S&P 500 rose 28.01 points to 5,537.02. The Dow dipped 23.85 to 39,308.00, and the Nasdaq composite gained 159.54 to 18,188.30.
This is a traditionally strong time of year for Wall Street, according to Mark Hackett, Nationwide’s chief of investment research. He said the first half of July has been the best two-week stretch for stocks on the calendar since 1928, and the S&P 500 has risen in July for nine straight years.
THE NEW York Stock Exchange is seen on Wednesday, July 3, 2024, in New York. Wall Street is leaning toward minuscule gains before the bell ahead of the Fourth of July holiday. Photo:Peter Morgan/AP
A GENERAL Motors logo is seen on a building, April 24, 2024, in Detroit. GM will pay nearly $146 million in penalties to the federal government because 5.9 million of its older vehicles don’t comply with emissions and fuel economy standards.
Photo:Paul Sancya/AP
GM will pay $146 million in penalties because 5.9 million older vehicles emit excess carbon dioxide
By TOM KRISHER and MATTHEW DALY Associated Press
GENERAL Motors will pay nearly $146 million in penalties to the federal government because 5.9 million of its older vehicles do not comply with emissions and fuel economy standards.
The National Highway Traffic Safety Administration said in a statement Wednesday that certain GM vehicles from the 2012 through 2018 model years did not comply with federal fuel economy requirements.
The penalty comes after the Environmental Protection Agency said its testing showed the GM pickup trucks and SUVs emit over 10% more carbon dioxide on average than GM's initial compliance testing claimed.
The EPA says the vehicles will remain on the road and cannot be repaired. The GM vehicles on average consume at least 10% more fuel than the window sticker numbers say, but the company won't be required to reduce the miles per gallon on the stickers, the EPA said.
"Our investigation has achieved accountability
and upholds an important program that's reducing air pollution and protecting communities across the country," EPA Administrator Michael Regan said. GM said in a statement that it complied with all regulations in pollution and mileage certification of its vehicles. The company said it is not admitting to any wrongdoing nor that it failed to comply with the Clean Air Act. The problem stems from a change in testing procedures that the EPA put in place in 2016, GM spokesman Bill Grotz said.
Owners don't have to take any action because there is no defect in the vehicles, Grotz said.
"We believe this voluntary action is the best course of action to resolve the outstanding issues with the federal government," he said. The enforcement action involves about 4.6 million full-size pickups and SUVs and about 1.3 million midsize SUVs, the EPA said. The affected models include the Chevy Tahoe, Cadillac Escalade and Chevy Silverado. About 40 variations of GM vehicles are covered. GM will be forced to give up credits used to ensure that manufacturers'
greenhouse gas emissions are below the fleet standard for emissions that applies for that model year, the EPA said. In a quarterly filing with the Securities and Exchange Commission, GM said it expects the total cost to resolve the matter will be $490 million.
Because GM agreed to address the excess emissions, EPA said it was not necessary to make a formal determination regarding the reasons for the excess pollution.
But David Cooke, senior vehicles analyst for the Union of Concerned Scientists, questioned how GM could not know that pollution exceeded initial test by more than 10% because the problem was so widespread on so many different vehicles. "You don't just make a more than 10% rounding error," he said.
Dan Becker, director of the Safe Climate Transport Campaign for the environmental group Center for Biological Diversity, said the violations by GM "show why automakers can't be trusted to protect our air and health, and why we need strong pollution rules. Supreme Court, take notice!"
