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TUESDAY, AUGUST 10, 2021
$5.10 NAD plans $28 private aviation passenger fee By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net AVIATION operators yesterday described fees as “a dirty word” after Nassau’s main gateway unveiled plans to create equality between commercial and private plane passengers by levying a $28 charge on the latter. Anthony Hamilton, Southern Air’s director of administration, and president of the Bahamas Association of Air Transport Operators, told Tribune Business that it was “not a good time” for the Nassau Airport Development Company (NAD) to be eyeing fee increases given that the aviation and tourism sectors - as well as the wider economy - are battling to recover from the COVID-19 pandemic. “There’s an ongoing discussion right now regarding fees,” he explained. “Fees are a dirty word in the industry. You’re battling right now with revenue, and the margins are very thin. It’s not a good time.” However, Mr Hamilton and both international and Bahamian airlines will not be impacted by the latest fee, which is targeted only at passengers on general aviation or private planes arriving from international destinations. The Lynden Pindling International Airport (LPIA) operator, unveiling its plans in a public consultation document, said the so-called “airport improvement fee” would be used to help finance some $30m worth of “airside infrastructure” upgrades required at the airport. It added that the charge would bring more equality, with all private plane passengers now contributing more to LPIA’s upkeep like their commercial airline counterparts, while arguing that the fee - which is inclusive of VAT - was competitive, and in many cases lower, than what was levied at rival US and Caribbean airports. “NAD proposes to implement an airport improvement fee (AIF) for all passengers arriving via general aviation flights to the Lynden Pindling International Airport,” NAD said. “General aviation passengers, unlike commercial passengers, currently pay no direct airport improvement fees to NAD for their use of the airport. “The fee will be $28 (VAT inclusive) for passengers arriving to Nassau via
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$5.13
Water Corp ‘author of own demise’ on supply cut-off By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
T
HE Water & Sewerage Corporation has been blasted as “the author of its own demise” over $644,000 in unpaid bills that resulted in water supply to central Eleuthera residents being cut-off for several days last October. Justice Indra Charles, in a scathing August 6, 2021, verdict found that the state-owned water supplier’s “silence and/ or evasiveness” on how it planned to pay these debts gave Aqua Design little choice but to cease supplying the Water & Sewerage Corporation’s customers from its reverse osmosis plant at the former US naval base. Suggesting that the Water & Sewerage Corporation’s inaction had “broken the camel’s back”, Justice Charles said the sums owed to Aqua Design would likely have continued to soar if the latter had not taken “such a drastic step” of shutting off water supply. She added that the utility “continues to be delinquent”, requiring the Supreme Court to order that it pay a further
• Unpaid $644k bill let to Eleuthera woes • Verdict places PM at centre of events • Judge slams utility’s debt ‘evasiveness’
ADRIAN GIBSON
DR HUBERT MINNIS
$454,195 to Aqua Design while the parties awaited her ruling. The Supreme Court verdict provides a completely different perspective on a saga in which both the government and Water & Sewerage Corporation accused Aqua Design of “endangering the lives of Bahamians”. Desmond Bannister, deputy prime minister, said the company’s behaviour was “the nastiest, most callous conduct I’ve ever seen” in deciding to cease water production at the height of the COVID-19 pandemic. However, Justice Charles
dismissed the Water & Sewerage Corporation’s case in its entirety and found completely in favour of Aqua Design’s contention that it had “properly executed” the termination of the water supply agreement between the two parties for Central Eleuthera. She also awarded costs to Aqua Design, which has potentially saddled Corporation customers (and Bahamian taxpayers) with a $221,265 legal bill. And Justice Charles’ verdict has also embroiled the prime minister in the chain of events that led up to the Central Eleuthera cut-off. With Aqua Design
BAHAMAS First has issued Colina General Insurance Company with 90 days’ notice that it plans to terminate their agency relationship because of the latter’s parent re-entering the underwriting business. Both insurance businesses were tight-lipped when contacted on the issue yesterday, but wellplaced sources - speaking on condition of anonymity - confirmed that Bahamas First had been prompted to act at least in part because Colina General’s parent group has now become a direct competitor. Patrick Ward, Bahamas First’s president and chief executive, told Tribune Business that the two parties’ “relationship is effectively going to change” but declined to go into
becoming increasingly frustrated over “fruitless” efforts to address the arrears owed to it, it wrote to Dr Hubert Minnis on September 29, 2020, to warn of “the backlash that the termination” of its contract and supply agreement would have for Central Eleuthera communities. However, despite receiving acknowledgement that its letter had been received and a response was imminent, no reply from Dr Minnis was received by October 9. This, and further inaction by the Water & Sewerage Corporation, resulted in Aqua Design cutting-off supply some ten days later on Monday, October 19. Adrian Gibson MP, the Water & Sewerage Corporation’s executive chairman, could not be reached by phone for comment yesterday while this newspaper’s What’s App message was not returned before press time. However, the content
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Ministerial ‘intervention’ call as Morton Salt releases 24
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
THE minister of labour was yesterday urged to “intervene” in the planned termination of 24 Morton Salt workers amid union complaints that the company had failed to follow the law or their industrial agreement. Obie Ferguson, the Trades Union Congress (TUC) president who acts as the legal representative for the Morton Salt line staff union, told Tribune Business that Dion Foulkes, his ministry and the Department of Labour needed to involve themselves in a situation where the salt harvester had failed to follow the redundancy provisions set out in the Employment Act. He also raised fears that the company may not honour provisions in the two sides’ recently-signed industrial agreement where it agreed to offer termination/redundancy pay up to
• Union complains law not followed • Says industrial deal not registered • Most affected staff there 35+ years
OBIE FERGUSON
DION FOULKES
a maximum of 40 weeks for line staff, which is significantly in excess of the Employment Act’s statutory minimum of 24 weeks or six months’ pay. A Morton Salt spokesman did not return Tribune Business calls and messages seeking comment before press time. However, Mr Ferguson argued that Mr Foulkes and his officials have an extra obligation to
intervene in this particular situation as the minister presided over certain aspects of the two sides’ industrial agreement negotiations. And he further asserted that then-registrar of trade unions/director of labour, John Pinder, had failed to issue the certification confirming that Morton Salt’s industrial agreement with the Bahamas Industrial Manufacturers & Allied
Bahamas First severs Colina General tie-up
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
$5.17
• Move comes as Colina re-enters underwriting • Both parties tight-lipped on developments • Concerns raised over implications for Act specifics other than to say the move did not reflect anything untoward by either party. “It’s not something I can officially comment on,” he replied, when asked if Bahamas First had given 90 days’ notice of its intent to terminate a relationship that saw Colina General write several million dollars worth of business for it annually. “We don’t comment in public about contractual issues between Bahamas First and other entities. “While the relationship is effectively going to change, I cannot comment one way or another about the rationale behind it except to say there was nothing untoward
about this development on either side.” It is understood that the official date of termination is at the end of October 2021. However, Tribune Business was told that a key factor behind Bahamas First’s move is that Colina and its parent, A.F. Holdings, have re-entered the property and casualty underwriting business that they exited more than a decade ago. Sources said Indigo Insurance (Bahamas), which was licensed on May 5, 2021, by the Insurance Commission, is the name of their new carrier. Colina was even more tight-lipped than Bahamas First when approached by this newspaper for
comment, not even referring to the agency termination of Indigo Insurance (Bahamas). A spokesperson said via e-mail: “Colina General Insurance Agents & Brokers (Colina General) is a significant broker in the property and casual market. “The company has grown considerably over the years and has expanded its partnerships with several reputable AM Best-rated general insurers...... As leading brokers within the industry, Colina General continues to prioritise the insurance needs and service expectations of its clients as a core commitment.”
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Workers Union (BIMAWU) was properly registered with the Department of Labour. Morton Salt informed Mr Foulkes of the imminent redundancies in an August 6, 2021, letter that has been obtained by Tribune Business. Vivian Moultrie, the Inagua-based salt harvester’s operations manager, confirmed that 18 line staff and six managerial staff will be impacted, eight of whom have been with the company for 40 years or more. Another five have been employed for between 35-39 years, with the longest serving racking up 46 years. The redundancies were justified on the basis that available work had “diminished” while there were no other roles the impacted
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$5.18 Pearl Island happy to have ‘survived’
By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net A BAHAMIAN destination provider yesterday said it is preparing to receive its first post-COVID cruise ship guests this Thursday after hotel clients kept it afloat over the past several months. Peter Rebmann, Pearl Island’s managing partner, told Tribune Business it will finally welcome passengers from Royal Caribbean after 17 months of cruise ship inactivity with no business from that sector at all. He said: “To be honest, we didn’t have the cruise ship business so far because we just installed a new reverse osmosis system on our island. So I need first to have fresh water, which I put in place yesterday. So we are hoping that we can welcome the cruise lines on Thursday. “So we are starting with the cruise ship business, but Royal Caribbean has been here for the past three weeks. I’m not sure about Carnival. We don’t have Carnival Cruise Line in our contract, but Royal Caribbean and Celebrity Cruises are already coming here. So that will be interesting.” Having survived with hotel guests since the tourism industry reopened in November, Mr Rebmann said: “Before coronavirus we had three or four cruise lines a day, but now we maybe get three cruise lines a week. So we are still a long way to go in getting back in shape. “I know the hotels are doing very well. I myself was at Baha Mar and Atlantis, and they were crowded. So I’m happy for the hotels and they certainly are the largest employers outside of the government, so that’s a huge help for me certainly. We have been getting lots of business from the hotels for the last four weeks we have been open, and we have seen tons of online bookings all from hotel guests.” Optimistic that business will pick up throughout the remainder of 2021 despite the rise in COVID-19 case numbers, Mr Rebmann said: “It’s not only Royal Caribbean. Don’t forget we have the holiday season in the US and Canada. “We have many tourists that will be coming in for two or three-week holidays, so it’s not just the thousands of people coming in a day before the Navigator of the Seas is leaving, but that helps on top of it for sure,
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