10132022 BUSINESS

‘The

off’: Eliminate price controls

By NEIL HARTNELL

SUPER Value’s prin

cipal yesterday urged the Government to abolish the price control regime rather than expand it, arguing: “Consumers will be better off.”

Rupert Roberts, speak ing to Tribune Business after the Prime Minister pledged to extend price controls to 38 extra products and fur ther cut existing mark-ups allowed on food staples such as chicken and eggs, argued that the administration needs to move in the opposite direc tion by allowing retailers and wholesalers true freedom to compete.

Describing price controls as akin to “price fixing”, he explained that they elimi nated incentives for grocery retailers to seek out effi ciency savings and sell below what rivals charged since all

operators simply offer pricecontrolled goods at the same cost.

Voicing shock that the Gov ernment had not consulted the industry before Philip Davis KC’s national address on Tuesday night, Mr Rob erts told this newspaper: “It’s really better to let the compe tition in than control it. With price controls, everybody sells at the price controlled price, but if you allow competition the everybody tries to outdo one another.

“I think the public would be better off. Everybody will

try to outdo one another’s prices. That’s what happens in a non-price controlled envi ronment. Price controls are kind of price fixing. We can all sell for the price controlled price. We don’t have to try and outdo each other.

“The Bahamas is the only country in the world that I know has price controls. The other countries as far as I know didn’t initiate price con trols or, if they did, they gave it up 50 years ago.” The Davis administration, though, has chosen the reverse course by unveiling a major expansion

of the existing regime in a bid to further counter the cost of living crisis as well as show Bahamians it is acting on the pressures caused by soaring inflation.

Emphasising that the price control regime’s expansion is for a six-month trial period, Mr Davis said on Tuesday evening: “Tonight, I want to announce that we have added

Gov’t in $40m surplus despite 25% VAT drop

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE Government yester day unveiled a rare $40.2m Budget surplus for July 2022 despite VAT revenues declin ing by more than 25 percent or some $36.5m year-over-year.

The Ministry of Finance signalled that the 2022-2023 fiscal year had got off to a

positive start with the $40.2m showing by how much the Government’s tax revenues exceeded its spending for that month - the first in the current Budget period.

The performance, which represented a major improve ment over the narrow $500,000 surplus produced in July 2021 under the former Minnis administration, was driven by a combination

of revenue increases and spending reductions with the Government having wounddown its previous COVID-19 support for both individuals and businesses.;

“Revenue receipts of $259.1m represent a 7.9 percent ($19m) yearover-year increase,” the Ministry of Finance’s July report revealed. “Tax col lections totalled $230.9m,

supported by year-over-year improvements of 156.6 per cent in other taxes on goods and services to $49.1m; 82.7 percent in international trade and transactions taxes to $66.8m; 79.1 percent in other revenue to $0.6m; and 16 percent in property tax collec tions to $8.7m.

Price control expansion ‘last straw’ for grocers

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE Retail Grocers Association’s president yesterday warned that expanding the price con trol regime could be “the last straw” for small and medium-sized food stores, adding: “I’d like to know what the magic formula is.” Philip Beneby told Trib une Business that extending price controls to 38 extra products, as well as further cutting existing margins on food staples such as bread, eggs and chicken, meant the industry’s profits will be further eroded just as it faces major cost hikes due to Bahamas Power & Light (BPL), the minimum wage

increase, rising National Insurance Board (NIB) contributions and a multi tude of other expenses.

With price-controlled items, which are sold below cost and effectively act as loss leaders, accounting for between 60-70 percent of a typical food store’s inven tory, he added that some merchants may have no choice but to terminate staff or even close down their operations depending on the details surrounding the regime expansion which have yet to be announced by the Government.

Questioning what “magic formula” the Govern ment expected retailers to employ to stay profitable

Two-thirds of hotel staff in minimum wage boost

By NEIL HARTNELL

UP to two-thirds of the hotel industry’s workforce may benefit from the 24 percent minimum wage increase unveiled by the Prime Minister, it was revealed yesterday, amid hopes the sector’s rising business volumes will offset the extra cost.

Robert Sands, the Baha mas Hotel and Tourism Association’s president, told Tribune Business the $50 per week increase announced by Philip Davis KC was “long overdue” while the January

implementation date gives

the industry “sufficient time to prepare” and adjust cost structures.

He added, though, that the upcoming $260 per week minimum wage cannot be “viewed in isolation” but is part of a broader cost package that needs to be lowered to ensure the tour ism industry’s sustainable development and continued contribution to economic growth.

“We recognise that was long overdue.”

Mr Sands said of the minimum wage increase. “We anticipated some increase in the mini mum wage, so this does not come as a total shock. We

Unions not giving up $300 minimum wage

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE TRADES Union Con gress (TUC) president yes terday asserted that the labour movement will push for a fur ther minimum wage increase to $300 per week once the economy has rebounded “in a strong way”.

Obie Ferguson told Tribune Business he “sees no reason” why the unions should not advocate for such a rise once The Bahamas has fully recovered from the devastation inflicted by COVID-19 while affirming that achieving a “livable wage” remains the ultimate goal.

He conceded, though, that the latter is a long-term objective that will likely take many years to reach. And the TUC chief also agreed with the Bahamian private sector that, rather than increase the minimum wage by large increases at infrequent intervals as has been done to-date, it should instead be indexed to the cost of living and raised annually by an amount equal to local inflation.

These smaller increases would be more digestible, and easier for Bahamian businesses to swallow in their payroll expenses, with Mr Ferguson yesterday saying that increased

RUPERT ROBERTS

AVOIDING COMMON START-UP FAILURES

Starting a small business can be extremely reward ing. You are your own boss. You find your own clients, and set your own hours and rates. Sounds easy, right?

Sometimes the odds are stacked against you, with a surprisingly high small busi ness failure rate. According to a research company, 20 percent of small businesses fail in their first year, with this figure rising to a stun ning 70 percent failure rate by year ten.

Here are a few causes of some business failures: Preventable failure, which is caused by deviating from a known process; complex failure, a failure caused by a system breakdown; and an intelligent failure, which is caused by an unsuccessful trial.

Lack of Planning

One of the major rea sons why businesses fail is that owners often lack the foresight to anticipate challenges they may face.

You may consider yourself to be the best plumber or electrician in the world, but running a business requires a lot more than performing services or selling products.

Recognise that a small mar keting plan is an essential road map to guide your company and make you aware of both challenges and opportunities.

Lack of Research

Become extremely famil iar with both your target customers and the com petition. Identify what differentiates your business from your competition, and figure out how to turn that into a winning strategy.

Financial Problems

If you ask the average person on the street why

so many small businesses fail, financial woes would likely be among the most common responses. Many small business owners are not financially savvy, so failures run the gamut from simple errors in calculation to the inability to raise suf ficient capital. It is also a wise idea to add 20 percent to your budget as a contin gency fund, meaning that you raise more capital than you think you need and never assume the best-case scenario.

Lack of Business Expertise

An unsuccessful busi ness is often headed by someone who tries to do it on their own. Expertise, and an understanding of marketing, sales, account ing and many other fields is required. It is rare for one person to be an expert in all the different aspects of

running a business, espe cially when that person is an expert in a “non-busi ness” related field. To arrest this concern, hire employ ees who are strong in the areas where your skills are weaker.

Neglecting the Essentials

Some small business owners end up forgoing items that are essential to success. Examples include a Business License and legal paperwork, regular health inspections or continu ing education courses and annual recertification.

Insufficient Insurance

Let us not forget that business interruption insur ance will be your protection against a wide range of potential issues. Whether a client trips over a power cord or a mistake is made that caused damage to your property, your business insurance can protect you from an expensive claim.

Overhauling the situation

Avoid emotional decision-making. Take measures to avoid similar losses in future by exercising coping skills, acknowledg ing realistic beliefs about failure, reinstating respon sibilities, trimming the fat, accepting responsibility and not forgetting what you have learnt from your misfortune.

To stay afloat, find some time to sit down and ana lyse your company. Hire a business consultant if pos sible, and dissect the issues.

Be proactive in identifying the problem and its solu tion, as remaining in denial is not the best remedy. It will not make the problem go away.

Remember that everyone fails at some point. How ever, this one failure does not mean it is the end. Until we meet again, fill your life with memories rather than regrets. Enjoy life and stay on top of your game.

BTC donates 400 tablets for Family Island learning

THE BAHAMAS Tel ecommunications Company (BTC) has donated 400 tab lets worth some $70,000 to the Ministry of Education to assist Family Island students with their learning.

Sameer Bhatti, BTC’s chief executive, said in a statement: “Today’s substan tive investment is part of our commitment to connecting communities and transform ing lives. Many children are disadvantaged because of their socioeconomic status, and we believe that we have a huge role to play to help close the gap, bridge the dig ital divide and do our part to provide greater access to technology.”

The tablets have been dis tributed to schools in Grand Bahama, Abaco, Exuma, Andros, Eleuthera, Cat Island, San Salvador, Long Island, Acklins, Ragged Island, Mayaguana, Rum Cay, Inagua and Crooked Island.

Glenys Hanna Martin, minister of education, said: “I want to thank BTC, who has been a partner with the Ministry of Education on so many important criti cal undertakings, including connectivity to over 100 schools. Also, the learning management system, and the education management information system, which allowed the delivery of edu cation after the shutdown due to the pandemic, when it looked as though our chil dren would be in no man’s land.

“We appreciate this col laboration greatly, and we appreciate this donation. It is indicative of an under standing that no man is an island and a nation unto

himself. Every man is a piece of a continent or a part of a whole. We are mutually dependent on how we fare as a human society, and this donation to allow our young people, brilliant young people who may have not had access to have access to information, to creativity, is an incredible input and we thank you so greatly.”

BTC has partnered with the Ministry of Edu cation to provide fibre connectivity to more than 100 public schools in New Providence and the Family Islands. Following Hurri cane Dorian, the Cable & Wireless Communications (CWC) Foundation run by its parent donated $100,000 to One-on-One Educa tional Services to provide online learning and national examination preparation for students in Grand Bahama and Abaco.

At the outset of the pan demic, BTC also teamed up with the Ministry of Edu cation and One-on-One to expand this digital platform to provide online learning for all public school students in a fully virtual environ ment for two years.

• NB: Columnist welcomes feedback at dee dee21bastian@gmail.com ABOUT COLUMNIST: Deidre M. Bastian is a pro fessionally-trained Graphic Designer/Brand Marketing Analyst, Author and Certi fied Life Coach

In addition to the tablet donation, BTC has also sup ported a number of schools and organisations through its back-to-school initiatives, including the donation of school supplies and uniforms to more than ten schools and organisations including the Grand Bahama Chil dren’s Home, the Old Bight Mission Home in Cat Island, Elizabeth Estates Children’s Home and Great Commis sion Ministries.

THE BAHAMAS Telecommunications Company (BTC) has donated 400 tablets, valued at over $70,000, to the Ministry of Education. Seen from L to R are: Peter Cartwright, BTC board member; Sharon Poitier, deputy director of education - curriculum and instruction; Lorraine Armbrister, Ministry of Education’s permanent secretary; Zane Lightbourne, minister of state for education; Sameer Bhatti, BTC chief executive; Glenys Hanna Martin, minister of education and technical and vocational training; Valentine Grimes, BTC deputy chairman; Andre Knowles, BTC’s head of busi ness to business (b2b); Najah Finlayson, BTC government relations manager; and Parcko Deal, BTC board member.

MINIMUM WAGE RISE TO HIT FIRMS WITH 'TIGHT MARGINS'

because everyone gets paid more than that.

MERCHANTS

yes terday said that, while a minimum wage increase is necessary to help ease the cost of living crisis, the increase in payroll expense may force some companies operating on tight margins to lay-off staff.

Andrew Higgs, WHIM Automotive's general man ager, told Tribune Business the new minimum wage is “better than it was before at $210 per week". He added: "Everything is going up so people did need an increase in the minimum wage. It wouldn't affect us here,

"But I think a lot of people need to realise that a minimum wage job is an entry level job, and it's not something that you work your career at that level.”

And he warned that some firms may see already “razor-thin margins” cut even more as a result of the 34 percent minimum wage increase that will take effect from January 2023.

The Prime Minister, in Tuesday night's national address, said the near three-month delay in the minimum wage increase's implementation is designed to enable impacted busi nesses to adjust their cost structures.

“The last time the mini mum wage was raised in our country was 2015,” the Prime Minister told Baha mians. “A new increase has long been overdue. Tonight, I’m announcing that the country’s new mini mum wage will be $260 a week.

“For minimum wage earners in the public ser vice, the change will be retroactive going back to July of this year. For mini mum wage earners in the private sector, the increase will begin in a little less than three months in January of the coming year, allowing employers time to prepare for the increased expense.

“The higher minimum wage will benefit tens of thousands of Bahamians.

Will the increase help? Yes, it will. It was long awaited, long overdue, and the extra money every week will make a difference.” The $50 per week rise translates into a $200 increase in take home pay for a minimum wage worker every four weeks.

Mr Higgs, though, said yesterday: “Government doesn't look out for any body except themselves and how they can get more income. But if a business is working on those really small margins, and now you tell them their salary expense is going to go up by 25 percent to 30 percent, they may have to start let ting some people go.

'Because what they take in and what they put out,

KANOO Innovation Hub’s co-founder, Davinia Bain; Draper University’s head of partner ships and busi ness development, Khadija Ghazi; Kanoo Pays chief financial officer, Herbert Cash, are pictured at the launch for the Kanoo Innovation Hub.

they're left with a such a small margin and now you're telling them they have to increase salaries. That may put them in the red, and why should they operate to make a loss?

“So, for those businesses who operate under very tight profit margins, this probably will affect them and they'll have to decide if they want to stay in busi ness or do they want to either let some people go or maybe put some people on part time? Fortunately we wouldn't have that issue, but there are businesses that will have to make decisions."

Leonard Sands, the Bahamian Contractors Association (BCA) presi dent, said the construction

industry will see little impact from the minimum wage increase as none make less than $250 per week now - not even entry-level site cleaners. “Right now, people at the lowest end on the site start at $250 mini mum, and minimum wage is $210, so it never really mat tered to them because they were already getting more than that," he added.

Peter Bridgewater, Open Systems Technologies' pres ident, said the minimum wage rise is a “great oppor tunity” for people entering the job market - and those currently at this level - to invest in more education and save more money.

Innovation hub seeking to boost technology funding

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net

A NEWLYLAUNCHED innovation hub aims to give Bahamian digital assets and technol ogy entrepreneurs direct access to international financing by forging links with California's Silicon Valley.

Davinia Bain, co-founder of Crypto-Isle and the Kanoo Innovation Hub, told Tribune Business that the latter’s website will be soliciting individuals to participate in the “start-up innovation programme".

She added: “This is a two-week long programme that will start on November 28. Those who are success ful from that programme, the top 30 persons, will matriculate into our preaccelerator. That's a four-week programme in conjunction with Draper University.

"Then the final leg is the Silicon Valley programme, where we ship the top ten innovative founders to Sili con Valley for five weeks for an immersion programme with Draper University. The first level of the pro gramme, the innovation start-up programme, that's a maximum of 200 persons. The second level is a maxi mum of 30. And then the third level is a maximum of ten persons or less.”

This “funnel system” will allow more persons to spread the word about the Kanoo Innovation Hub and bring more people into the initiative, thus broadening the pool of entrepreneurs.

The Kanoo Innovation Hub

is a joint venture between Crypto Isle and Kanoo Pays, who have partnered with Draper University, a Silicon Valley venture capi tal network known for its investment in more than 34 unicorn companies and at least six rhino companies.

Nicholas Rees, the hub's co-founder and Kanoo's chairman, said the first stage of the process is to find 200 innovators with the best ideas to enroll in the Start-Up Innovation Pro gramme. Applications are open until November 15.

Each stage of the process will become more competi tive, culminating with the ten Caribbean entrepre neurs gaining spots at the Draper University immer sion experience.

There, they will pitch to a global network of inves tors, and gain access to seed capital averaging between $250,000 and $3m. “Our goal is to find innovative Caribbean founders, devel opers and corporations and set them up for success. We want to provide funding and mentorship through out their business evolution from seed round to exit,” said Mr Rees.

After five weeks in Silicon Valley, the entre preneurs are expected to compete for the seed capital and “take it global. Ms Bain said: “There are only ten guaranteed seats into the accelerator, and those ten persons when they reach to Silicon Valley, they're going to be with 70 other global innovators."

Participation is not lim ited to individuals wishing to become involved in the crypto currency or blockchain space, but any

technology entrepreneur who can deliver on “broadbased innovation” and demonstrate they have an “investable idea” to take to the next level.

Khadija Ghazi, head of partnerships at Draper University, said: “We are extremely excited about partnering with the Kanoo Innovation Hub. It's our first partnership in the region, and the whole idea that we are going with is that we want to build a bridge between the Carib bean region and Draper University.

“We don't want the ven ture capital money to be restricted by the region; we want to go after wherever the great ideas are. Block chain is an area where we have been working quite heavily in the past few years… Kanoo Innova tion Hub is where we want to bring the value through acceleration, pre-accelera tion and education, giving the aspiring entrepreneurs and existing entrepreneurs access to a much larger ecosystem.

"Entrepreneurship is not something that comes to all of us naturally....We want to do a mass reach out, bringing in people teaching them about the fundamen tals of entrepreneurship, innovation and blockchain, specifically in this particular programme.”

BAHAMAS Development Bank's managing director, Nicho las Higgs, and Kanoo Pays chief marketing officer, Khalil Braithwaite, at the Kanoo Innovation Hub launch.

TOURISM CRIME THREAT ‘BOGGLES THE MIND’

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net

THE Deputy Prime Min ister yesterday downplayed the impact of the most recent US travel advisory while saying “it boggles the mind” to believe that crimi nals would deliberately hurt or target the tourism industry.

Chester Cooper, also minister for tourism, investments and aviation (MOTIA), speaking ahead of the weekly Cabinet meeting denied that the US State Department had “downgraded” The Baha mas in advising its citizens to “exercise increased cau tion... due to crime”.

Refuting suggestions that The Bahamas had been moved by the US from ‘Level one’ to ‘Level two’ when it came to the destination’s safety, Mr Cooper said: “Let me firstly clear up what seemed to

be a misconception. The US Embassy released a statement from their State Department, which basi cally updated the travel advisory.

“The travel advisory means a ‘Level two’; it has been a ‘Level two’ for quite some time. There has been no downgrade per se as it relates to the travel advisory. In fact, the travel advisory removed some of the health concerns as it relates to COVID. The report basically says exercise common sense precautions; the same pre cautions you would exercise at all. It is not a more severe advisory, it does not say do not travel. It simply says exercise your usual sensible precautions.”

Robert Sands, the Baha mas Hotel and Tourism Association’s president, had told Tribune Business this nation that “we will pay the price” unless rising crime is brought under control while branding the US advisory

as “a warning sign we must heed”. He added that The Bahamas needs to focus on “the big picture” and realise that “everybody is a victim” of criminal activi ties - not just tourists, but Bahamians and residents as well as local businesses.

The US State Depart ment’s latest travel advisory to The Bahamas warns that New Providence and Grand Bahama are suffering from a high homicide rate as a result of gang violence, and urges travellers to exer cise “increase vigilance” in these areas. It added: “Violent crime, such as bur glaries, armed robberies, and sexual assaults, occur in both tourist and non-tour ist areas. Be vigilant when staying at short-term vaca tion rental properties where private security companies do not have a presence.”

Mr Cooper conceded that “any crime in The Bahamas is bad for The Bahamas. It’s bad for tourism and we must do all we can as

Bahamians to manage this issue. If we see something, we say something and, of course, we find a way to settle our grievances and our differences in a har monious matter. A crime against a Bahamian is hor rific. A crime against a tourist is simply a stupid thing to do.

“In effect, what we would be doing is biting the hand that feeds us. We have maintained a high quality and standard of living, and therefore it boggles the mind that anyone would seek to kill the goose or hurt the goose that lays the golden eggs.

“So I’m calling on Baha mians everywhere to assist the police, assist the Minis try of National Security in terms of managing, curtail ing and reporting criminal elements in our commu nity. I am satisfied, though, that in relation to the travel advisory itself, that it does not escalate the alarm, so to speak, for travellers to the Bahamas.”

Referring to his minis try’s promotional efforts, Mr Cooper said: “The missions have been over subscribed in every way. They have been oversub scribed in every way. We

are very enthusiastic about the response; the brand is very strong.

“Brand Bahamas, wher ever I go in the world, people want to come back with me to The Bahamas. This is a good thing. It demonstrates that we have done an exceptional job over the years in promoting and building the brand of The Bahamas. We continue to do this.”

Mr Cooper and his team have visited Florida, New Jersey and New York in recent months, and next week will head to North Carolina in an effort to continue promoting The Bahamas.

“We will see significant new flight traffic from

Charlotte. American Air lines is returning and, of course, the same week will see from Raleigh, North Carolina, Bahamasair pro viding an inaugural flight to Freeport and we are very excited about that,” the deputy prime minister added.

“Also, we anticipate that from Charlotte there will be additional airlift to George town, Exuma. There will be additional airlift to New Providence as well for the winter season. So these markets are important. We’re going to be develop ing more partnerships in the Charlotte area. We have some exciting meetings with some of the stakehold ers there.”

Tourism numbers are also returning to 2019 levels with July arrivals less than 10 percent below the “banner year” of 2019. “We expect by the end of this year we will be very close to the 7.2m we achieved in 2019, or we will exceed it. We will definitely exceed it in 2023 based on what we’re seeing in terms of our forward bookings,” Mr Cooper said.

CHESTER COOPER

Job fair targeting 2,000 attendees

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net

THE Department of Labour is aiming to attract 2,000 employ ment seekers to its latest ‘Labour on the Blocks 2.0’ job fair this Saturday, with 45 companies ready to vet and hire as many as possible that same day.

Robert Farquharson, the Government’s labour direc tor, said multiple businesses from key sectors of the Bahamian economy will be present at the job fair, which is being held at the Anatol Rodgers High School and targeted primarily at the South Beach and South ern Shores constituencies.

Nine hotels and tourismrelated businesses will be present, including Atlantis, Baha Mar, the Four Sea sons Ocean Club and Blue Lagoon. “In the construction industry, SMG Construc tion, Osprey Construction.

We have businesses from the cruise ships, Disney Cruise Line, and we have a number of banks to come,” Mr Farquharson added. “We also have Sbarro. We have Common wealth Brewery. We have John Bull, we have Wendy’s, Kentucky, Bamboo Shack and a number of companies from all sectors across the Bahamas.”

The Department of Labour is hoping that this latest job fair will draw double the number

ROBERT FARQUHARSON

of persons who attended the last such event, where some 1,200 Bahamians were present. “We are prepared to serve 2,000 people. The team at the Department of Labour is ready,” said Mr Farquharson.

Leroy Major, South ern Shores MP, added: “Another feature of ‘Labour on the Blocks 2.0’ is that this event will be held in Anatol Rodg ers High School on Faith Avenue. It will enable the

staff of the Department of Labour to bring the public employment service unit directly to the citizens and residents of south-west New Providence, with more than 45 employers seeking to interview job seekers and hire on the spot.

“This exciting initiative program in the Ministry of Labour and Immigration promises to be the largest job fair ever.”

Keith Bell, minister for labour and immigration, added: “The team from the Department of Labour has also planned a number of other options for per sons seeking employment opportunities, as well as those job seekers wishing to be better prepared to enter the labour market, including but not limited

to training opportunities facilitated by the National Training Agency, BTVI (Bahamas Technical and Vocational Institute), Cybertech and the National Maritime Academy…

“The job readiness pro grammes, dual enrolment at BTVI and access for job seekers wishing to be inter viewed at the job fair.” The programme is expected to be rolled out in other areas of New Providence, and also in Grand Bahama in the near future.

Mr Farquharson said the Department of Labour wants to focus on stu dents in grades 10 and 11 in high school so that they do not wait until their final year to decide which skills or trades to pursue.

NIB unemployed payout drops to $610k monthly

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net

A CABINET minister yesterday said the collective $610,000 per month that the National Insurance Board (NIB) is paying in unemployment benefit is “considerably less” than during the COVID-19 pandemic.

that go to a maximum of 13 weeks.

“NIB is paying out about $610,000 per month,” he said. “If we do the figures, over the past few years it’s around $12 million. So at this pace, between $7m and $8m would be the figure, so that’s considerably less than in the past.”

CLAY SWEETING

Some 126 apply for $1m in food grants

SOME 126 persons have applied for a collective $1m in grant funding that the Small Business Devel opment Centre (SBDC) is offering budding entre preneurs to stimulate local food production.

Clay Sweeting, minis ter of agriculture, marine resources and Family Island affairs, said in a statement of the interest: “We are turning a corner towards progress for food produc tion in our country. With so many applicants inter ested in receiving the grant, we are looking forward to seeing more food produc tion businesses flourish and the creation of numer ous jobs. I am excited to see what new products and services will come from suc cessful applicants.”

The Sustainable Food Growth Grant is intended to incentivise farmers, fish ermen and agribusiness practitioners to bolster food production in The Baha mas. The grant, which was launched through the SBDC’s Access Accelerator last month, gives applicants access to up to $50,000 towards their planned or existing businesses.

The grant may be used to purchase land, construc tion services, or renovate equipment, furniture, fix tures, vehicles, boats, supplies and more. The

Ministry of Agriculture, Marine Resources and Family Island Affairs has allocated more than $1m for the grant.

Samantha Rolle, the SBDC’s interim executive director, said: “There is an overwhelming interest in the agribusiness industry as business owners have rec ognised the integral role sustainability plays in food production.

“I strongly believe that we also need to take into consideration the various stages of the food value chain (processing and packaging, transport and logistics, retail and food service) as these businesses will breed increased produc tion, market accessibility and higher incomes in the years.

“We are hopeful that there will be additional funding opportunities and programme interventions in collaboration with the Min istry of Agriculture, Marine Resources and Family Islands Affairs to continu ously aid the growth of our agribusiness sector and sup port our entrepreneurs in this industry.”

After passing the initial screening, successful appli cants must undergo training in food security, emerging trends, post-harvest man agement, financial reporting and exporting.

Myles Laroda, min ister of state in the Prime Minister’s Office with responsibility for NIB, said ahead of the weekly Cabinet meeting that the social security system is presently on track to payout just over $7.2m in unemployment benefits

NIB paid out more than $100m in unemployment benefits at COVID-19’s peak in 2020 as much of the country’s workforce was either temporarily furloughed or terminated. Given the pandemic’s dura tion, and the fact NIB’s payouts were capped at 13 weeks, the Government was forced to provide its own unemployment ben efit to the long-term jobless that totalled some $237m.

COVID-19’s easing has thus significantly reduced both the rate of unemploy ment and benefit payouts, and Mr Laroda said: “If we continue on this trend, we may see a reduction. I don’t want to be presumptuous, because things could turn on a hurricane or some cat astrophic financial situation that could create a down turn. So we just hope that this trend continues.”

Amid concerns that the imminent hike in Bahamas Power and Light (BPL) fuel charges and over all electricity bills may spark more lay-offs, Mr Laroda shrugged off the possibility on the basis that the country is moving into the fall and winter season when energy consump tion is less. “So usually the

TWO-THIRDS OF HOTEL STAFF IN MINIMUM WAGE BOOST

will have sufficient time to prepare for it. It is mostly the line staff, entry level service staff for the most part, that will be impacted.

“I think you can say mostly the service area, which represents two-thirds of a hotel’s workforce. Anywhere up to two-thirds of a workforce in a particu lar hotel and casino will be impacted by this.” Work ers in areas such as food and beverage, housekeep ing and pool attendants typically receive the mini mum wage as their base pay, but earn the majority of their income via tips and the 15 percent gratuity.

“Companies will still take a hit on this particular issue, although it was not unanticipated,” Mr Sands added. “The real answer is you don’t anticipate this level of increase, but we have always been resil ient and it is a testament to our tenacity that we have weathered seemingly insurmountable challenges in the past.

“We hope business levels continue to grow, we continue to grow our business, and that we are able to generate incre mental business that helps us to navigate the adverse

effects of this increase at this point in time.”

Pointing to the bigger picture, Mr Sands added: “We recognise the rising costs everybody is facing, but this cannot be viewed in isolation. We have to work towards ensuring the cost of doing business in The Bahamas is at a level that is sus tainable, and contributes to economic growth and development for the coun try. We must work towards items that contribute to that.”

Again identifying renew able energy as a priority item, the BHTA president also reiterated previous calls for vacation rentals to pay their fair share in taxes and infrastructure upkeep to ensure the financial burden does not fall solely on the resort sector.

Darrin Woods, the Baha mas Hotel, Catering and Allied Workers Union’s (BHCAWU) president, told this newspaper that many resort industry staff impacted by the minimum wage rise will not enjoy the full $260 per week increase because they are not work ing a full 40 hours. Yet, even at 37.5 hours, some impact will be felt.

Suggesting that the increase will help more workers qualify for bank

loans, he added: “I agree with the Prime Minister that the increase is long overdue. When we talk about from 2015 to 2022, that’s a long time in terms of having to wait.”

The BHTA, in a state ment on the minimum wage increase, said: “The tourism industry, as key private sector partners with the Government and employers of similar scale, has been aligned with the Government’s perspec tive that an increase to minimum wage is due. The topic has been on the table for collective discussion between the public and private sector for some time.

“We are equally aligned with the Government’s acknowledgement and concerns regarding the myriad of unprecedented challenges we are facing due to forces outside of our control. We concur with and support the Govern ment’s efforts to mitigate the adverse effects on our economy. Supply chain issues, ensuing product shortages and price hikes attributed to the pan demic, global inflation, post economic devastation exacerbated by past hurri canes is our harsh reality.”

It continued: “The tourism industry from

trend is electricity costs would go down, people using less air conditioning and stuff, and we just hope that until relief comes that there is no need to lay-off,” he said.

Mr Laroda indicated that the Government has yet to heed calls, made in the most recent actuarial report, which said NIB contribution rates should have been increased by two percentage points in July and continue at intervals of every two years until 2036 to ensure the scheme’s financial sustainability.

“It’s a fluid situation. And that time will come when a decision on that matter will be revealed,” he added.

bonefish lodges to local Bahamian restaurants, home-grown boutique bed and breakfast accommo dations to mammoth-sized resorts recognise the importance of curtailing the rising cost of living and doing business in The Bahamas as an essential element to our ability to survive, and eventually thrive as a key driver of our tourism economy.

“The topic of minimum wage is only one compo nent of a holistic strategy that must be designed and deployed to achieve all that we collectively seek to accomplish a thriving, resilient, sustain able, diverse economy that befittingly supports a population comprised of a diverse range of micro, small, medium and largesized business owners, operators and employ ees, the public sector and quasi-public sector agen cies and their employees.

“However, we encour age the Government to meaningfully pursue struc tural reform needed for the growth of our tour ism industry and economy in general, such as the diversification in power generation, and to swiftly deploy initiatives designed to address long-standing issues that contribute to the high cost of doing busi ness in The Bahamas.

Unions not giving up $300 minimum wage

employment and the wider economy’s welfare remain the union movement’s immediate priority.

Trade unions had pushed for a $300 weekly mini mum wage, representing a 42.9 percent increase to the private sector’s $210, in negotiations over the latest increase but the Gov ernment opted for $260 - as Tribune Business exclu sively revealed it would back in late August.

Signalling that organ ised labour, at least for now, is satisfied with the $50 per week or 24 per cent increase, Mr Ferguson told this newspaper: “We recognise that the state of the economy is such where there is only so much it can take, and we’re going to work with the Government in that regard.

“When the economy begins to turn around, and turn around in a strong way, we’d seek to have those figures revised. Our con cern principally is to have

as many workers employed as possible. We know how many of our workers and members have been employed, unemployed and are still unemployed.

“As the economy moves, we expect that figure to be enhanced and brought to a level that’s acceptable.”

The TUC president indi cated the union movement will begin agitating for an increase, which will take the minimum wage to $300 per week or $1,200 per month, once 90 percent of the Bahamian workforce is gainfully employed - mean ing that the jobless rate is around 10 percent, which is close to official figures just prior to the COVID pan demic’s start.

“I see no reason why, once the economy is up and going, and once the workers play a major role in making that happen, I think it is reasonable to expect they will be asking for and seek ing an adjustment to the minimum wage,” Mr Fergu son told Tribune Business

“That’s a reasonable expectation. That’s how we’re looking forward for the labour movement. We have to make sure the economy is up, things are running progressively, and that I think will form the basis for the unions to make demands.”

However, he backed pre vious private sector calls for minimum wage increases to be indexed to, and match, annual inflation as meas ured by the Consumer Price Index to ensure future rises keep pace with the cost of living and better protect the workforce’s lowest earners.

The increase to $260 unveiled by the Prime Min ister on Tuesday night is only the second such rise since the minimum wage was introduced in 2001 by the then-Ingraham admin istration at $150 per week. It was last raised by $60 per week, or 40 percent, in 2015 to coincide with the intro duction of VAT at then-7.5 percent.

“Quite frankly we’d like to see a gradual increase

as opposed to going with a big hike again,” Mr Fergu son said. “Let’s see it every three years or six years that we expect something to happen. Indexing it to infla tion, as opposed to having to come and renegotiate, would be a good basis to tie it to.”

The Prime Minister, on Tuesday night, confirmed the private sector minimum wage will increase by 34 percent to $260 per week come January 2023 while admitting it will “not elimi nate the hardship of trying to make ends meet”. The $50 per week rise translates into a $200 increase in take home pay for a minimum wage worker every four weeks.

“We are aware that this will not eliminate the hard ship of trying to make ends meet in today’s economy,” he said. “Instead, it repre sents progress on the way to a livable wage.

“The raise was negotiated by the National Tripartite Council, which includes the Government and repre sentatives from the private sector and unions. Our shared goal was to raise the minimum wage without having a negative impact on employment or job growth, and we believe that has been achieved.”

Peter Goudie, the Bahamas Chamber of Commerce and Employers Confederation’s (BCCEC) labour division chair, told Tribune Business that the private sector had already been “bracing” for a $250 per week minimum wage so the extra $10 was unlikely to create much difficulty in meeting the extra cost.

“I think the best thing to say is that businesses in The

Bahamas were bracing for $250, so $260 is not going to be a major difficulty,” he said. “They were brac ing for it because we knew it was coming. The Prime Minister had said it, and it was in his Memorandum of Understanding with the trade unions.

“It’s not a surprise. When you expect something like that it’s not much of a shock. We’ll see what hap pens and what the reaction of other business people is, but I don’t think it’s anything people weren’t expecting. There’s not a huge amount of people on minimum wage; I think it’s less than 25 percent of the workforce. I don’t think it’s going to be a huge impact. Since business is back, and the economy is coming back, I don’t think it’s going to be as major as if it was done nine months ago.”

The Prime Minister on Tuesday night promised that achieving a so-called livable wage remains the Government’s ultimate goal but, like Mr Ferguson, acknowledged this will take time given the economy’s continued fragility. “I’m all for a livable wage, but even though that’s where we want to go we live in the

real world,” the TUC presi dent told Tribune Business

“We’ll try to work towards it. That would be the thinking of any sensi ble, rationale thinking and visionary leader, but not to the detriment of the econ omy. It’s reasonable that we should work towards that but, particularly in light of what’s happening now and what’s likely to happen in the future, we have to be flexible. We have to be real istic, we have to appreciate the state of the economy.

“These are realities. Nothing from nothing means nothing. We need to get something in the pot so that when we stir it we have something in there. This is our country, and we need to make sure we pre serve our country for future generations to come,” he continued.

“A livable wage is where we want to be, but we real ise the state of the economy is not amenable to that at the moment. It doesn’t mean we will not work with the minister of labour, the Prime Minister as we’re having discussions. The time will be right to achieve that. That’s truly where we want to be.”

A University of The Bahamas (UoB) study, dated September 30, 2020, and authored by Lesvie Archer, Olivia Saun ders, Bridget Hogg, Vijaya Permual and Brittney Johnson, concluded that a living wage in New Provi dence and Grand Bahama is $2,625 and $3,550 per month respectively.

PETER GOUDIE

PUBLIC IS BETTER OFF’: ELIMINATE PRICE CONTROLS

38 new items to be subject to price controls in our country.

“We are limiting the wholesale and retail markup of everyday items like diapers, and food like chicken, eggs, bread, bananas, apples, oranges, broccoli, onions and pota toes. These items are being added for at least a sixmonth period, at which point we will review and evaluate the impact on businesses and consumers.

“We are also reduc ing the profit margin on price-controlled drugs, providing additional relief to Bahamians. During an inflation emergency it’s important to take the steps we can to improve afford ability.” The price control regime’s expansion, which also involves an increase in the number of inspec tors, is designed to work in tandem with the minimum wage increase to help fur ther offset inflation’s impact on vulnerable, low income Bahamians.

The 38 extra items to be covered by price con trols were not identified, and nor were the extent of the further cuts to retail and wholesale margins on products already overseen by the regime. No men tion was made of when the changes will take effect, and Clint Watson, the Prime Minister’s press secretary, did not respond to a mes sage seeking clarification on these issues before press deadline.

Price controls have always been a controver sial instrument among the private sector - especially those companies and busi nesses impacted by them. They were imposed by the Government decades ago to prevent what it viewed as an unscrupulous mer chant class from exploiting lower income Bahamians by unreasonably hiking the price of food staples and other essential products, thus placing them out of reach while undermining living standards.

However, opponents argue they are an anachro nism that have no place in a modern 21st century econ omy. The private sector views price controls as an inefficient, distortionary

mechanism that creates more unintended conse quences than the supposed problems they solve.

They can result in product shortages, while retailers and wholesalers have to increase prices and margins on non-price controlled items to compensate for selling these goods as effec tive “loss leaders”.

Mr Roberts, meanwhile, said the Government ought to save the outlay on additional price con trol inspectors by putting those hires “to better use”.

He added: “They could inspect until the cows come home. Merchants will make mistakes, but no sensible person will see for more than price-controlled prices when you have a $5,000 fine per item.

“That used to happen in the old days; they would fine you for mistakes, but they stopped doing that because it was increasing the cost of living. I don’t know if there’s been a price control violation since the days of E J Bowe, when he brought cameras into our stores. I think both parties indulged in that. It didn’t do any good; it just led to bad blood between the Government and the merchants. I don’t know of a single case that was inten tional where a merchant sold above price control. That wouldn’t be smart.”

The Super Value chief said it was impossible to determine the impact of the price control regime’s expansion without know ing what extra products are included, the extent of cuts to existing margins and when these will take effect in an initial six-month trial period. He warned against “squeezing us too tightly” as food stores may then have to reconsider whether they continue to stock staples such as eggs and bananas.

“Write a question mark until we know,” Mr Rob erts said. “That [mark-ups] must be a political term. We don’t recognise that. The industry goes by gross margins. They haven’t said what the new mark-ups will be, so it’s hard to comment. Give us a mark-up like they do on dry groceries because we have at least a 5 percent loss on perishables, which go into refrigeration.

“Electricity is going to double, and the same gov ernment is asking us to employ more persons and pay higher salaries, but they are cutting our margins and expecting us to do it. If bananas come in ripe we have to sell them at halfprice. It has to be flexible.

“We were not consulted. Before they announce the mark-ups we’d like to con sult the Government and

let them know our position because if they squeeze us too tight, those items like bananas are not worth car rying. Eggs are already price controlled, and I hope they’re giving us a better mark-up because we’ve been fighting for that a long time and have been consid ering giving up eggs due to the gross margins, refrig eration and breakages. We can’t afford to carry them.”

While the minimum wage increase will “not bother us” since Super Value pays staff at or above that level, Mr Roberts said: “It’s really surprising they didn’t consult us. We’d like to get to the Government before they make it public and adjust it. We should be able to work out some thing that’s reasonable for ourselves, the Government and the public. We’d like

to consult the Government. We’re supposed to be work ing on that as we speak.”

He added that food stores “can’t survive” if the price-controlled mark-up on perishable products is less than 30 percent, since an automatic five percent age point discount has to be factored in immediately for spoilage, wastage and loss.

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AURORA BLUE INVESTMENT LIMITED

NOTICE IS HEREBY GIVEN as follows:

(a) Aurora Blue Investment Limited is in voluntary dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000.

(b) The dissolution of the said Company commenced on the 11th day of October 2022.

(c) The Liquidator of the said Company is Baird One Limited of Deltec House, Lyford Cay, P.O. Box N-3229, Nassau, Bahamas.

Dated this 13th day of October A.D. 2022

Baird One Limited Liquidator

is hereby given that WIDNEL SAINTIL of Fort Fincastle, North Street, New Providence, Bahamas is applying to the Minister responsible for Nationality and Citizenship, for registration/ naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 13th day of October, 2022 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

NOTICE

NOTICE is hereby given that DEANIKA PIERRE of Dignity Gardens, Nassau, 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 why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 13th day of October, 2022 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

NOTICE IS HEREBY GIVEN as follows:

(a) RAND BROTHERS LTD. is in dissolution under the provisions of the International Business Companies Act 2000.

(b) The Dissolution of said Company commenced on October 6, 2022 when its Articles of Dissolution were submitted and registered by the Registrar General.

(c) The Liquidator of the said company is Zakrit Services Ltd. of 2nd Terrace West, Centreville, Nassau, Bahamas.

(d) All persons having Claims against the above-named Company are required on or before November 6, 2022 to send their names and addresses and particulars of their debts or claims to the Liquidator of the company or, in default thereof, they may be excluded from the benefit of any distribution made before such debts are proved.

October 6, 2022

ZAKRIT SERVICES LTD. LIQUIDATOR OF THE ABOVE-NAMED COMPANY

Price control

amid these challenges, Mr Beneby said of the con sequences following the Prime Minister’s national address: “They’re cer tainly not going to be good. That’s not good news for us because that’s going to create even more chal lenges and difficulties.

“To give the Prime Minis ter the benefit of the doubt, he said 38 items. The ones listed from the grocery stores’ perspective, and what the [margin] reduc tions are, we don’t know for sure. When it happens, it’s going to cut even more into the already-challenged profit margins for the stores.

“They are going to cut into the profit margins and, on the other hand, they are asking grocers to increase the minimum wage, which has to be paid from those profits. On the other hand, we also have BPL receiving a fuel charge increase and have to pay BPL. All of that comes from the profit mar gins, and with the minimum wage and salary increase that calls for an increase in NIB contributions,” he continued.

“It’s going to have a very negative impact on the

business. It’s not adding up. I don’t know what the magic formula has to be, but we are chipping at the profit margin of the business yet still asking them to pay more. On top of that, busi nesses have to pay Business Licence fees, property taxes. The insurance indus try is hinting that there’s going to be an increase in premiums coming up. It doesn’t look like it’s paint ing a good picture.”

Mr Beneby said the price control regime’s expan sion, as well as the further cuts to existing restricted gross margins on “bread basket” items, will result in food stores selling more products at a loss and to a greater extent. The indus try operates on already-thin margins, and this is occur ring at a time when it is experiencing significant cost and inflation pressures - with BPL set to exacer bate such woes for a sector that is among its leading consumers.

“The cost increase is hit ting you from all sides,” the Association chief told Tribune Business. “Then the Government is taking away from your profit mar gins. How are you going to strike the balance? I don’t know. The thing is it has always been said that small

businesses are the engine that drives the economy of any country, and if you are going to try and dimin ish the small businesses, what is going to happen to that engine? Eventually, it’s going to die.

“They have to be careful with their decision-making when it comes to that. The small and medium-sized businesses will definitely be impacted to the extent that you are going to have to consider lay-offs or going to have closures of busi nesses. I think that is the last straw.”

Mr Beneby said econo mies of scale will enable larger food stores to betterspread out the price control expansion and margin cuts because they have bigger inventories, whereas his Courtesy Supermarket on Carmichael Road does not enjoy the same advantage because of its smaller size.

Price-controlled margins range from a low of 10 per cent on eggs to 23 percent for most other breadbasket items.

“They must have a magic formula, and I hope they give it to us,” he added of the Government. The $50 per week increase in the minimum wage, unveiled by the Prime Minister at the same time as the price

‘last straw’ for grocers

control expansion, will

largely impact entry-level food store staff that lack experience and training.

Warning the Govern ment to be careful of the unintended consequences of well-intentioned poli cies, as it seeks to ease the cost of living crisis for the poor and most vulner able, Mr Beneby said the proposed six-month trial period for the changes is “a long time in business” espe cially if companies have to “rob Peter to pay Paul” or are unable to pay their suppliers.

“I don’t know if this is the end of the conversation, or it is a conversation that has to be fleshed out more,” he added of the Prime Minister’s announcement.

Mr Davis, in his national address, pledged that the Government is doing more to tackle the country’s cost of living “crisis” as he acknowledged that prices have risen “across the board faster than they have for many decades”.

Emphasising that the price control regime’s expansion is for a sixmonth trial period, he told

Bahamians: “Tonight, I want to announce that we have added 38 new items to be subject to price controls in our country.

“We are limiting the wholesale and retail markup of everyday items like diapers, and food like chicken, eggs, bread, bananas, apples, oranges, broccoli, onions and pota toes. These items are being added for at least a

six-month period, at which point we will review and evaluate the impact on businesses and consumers.

“We are also reducing the profit margin on pricecontrolled drugs, providing additional relief to Baha mians. During an inflation emergency it’s important to take the steps we can to improve affordability.”

tiDes For nassau

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Gov’t in $40m surplus despite 25% VAT drop

“Aggregate expenditure equated $218.9m, an 8.6 percent ($20.7m) decrease compared to the same period of the prior year. Recur rent expenditures declined 6.5 percent ($15m) com pared to the prior year and totaled $216.2m..... Capi tal expenditures declined 67.3 percent ($5.7m) to $2.7m, and included $1.8m to acquire non-financial assets and $1m in capital transfers.”

The improvement, though, was achieved in the face of a significant reduction in the VAT collections that repre sent the Government’s main revenue source. These fell by $25.7 percent, or $36.5m, to $105.5m compared to the $142m collected in July 2021. What is especially significant is that July’s VAT intake represents one of the four months annually when quar terly registrants - as well as their monthly counterparts - file and pay this tax.

Michael Halkitis, minis ter of economic affairs, and Simon Wilson, the Ministry of Finance’s financial sec retary, are both understood to be attending the Interna tional Monetary Fund (IMF) and World Bank meetings in Washington D. C. and could not be reached for comment before press deadline.

However, Kwasi Thomp son, ex-minister of state for finance in the former Minnis administration, last night said he and the Opposition were “extremely concerned” that the Government’s VAT revenues have declined against 2021 comparatives for two consecutive months.

“According to the Gov ernment’s 12-month Fiscal Snapshot, VAT revenue for the month of June 2022 was $13.7m or 14 percent less than what was collected in June 2021,” he said in a statement. “In the Gov ernment’s monthly budget report released today, for July 2022 VAT collections were some $36.5m or 25 per cent less than they were in July 2021.

“This is in spite of the fact that the economy has rebounded substantially compared to last year with tourism and employment numbers almost reach ing pre-pandemic and pre-Dorian levels....The

fall-off in VAT revenue is even more concerning given this government’s increased spending when we in the FNM have consistently called on them to exercise prudence and restraint.

“The Government must explain why, for two con secutive months, the VAT receipts are significantly down even though the econ omy is significantly stronger and the Government has in place an announced Rev enue Enhancement team.” Mr Thompson called for “immediate answers”, espe cially in the wake of the latest downgrade to The Bahamas’ sovereign credit worthiness by Moody’s last week.

VAT has been something of a political battlefield following the Davis admin istration’s decision to cut the rate from 12 percent to 10 percent, eliminate the multiple zero ratings and exemptions introduced by its predecessor, and revert to the initial low rate, broad-based model. Many observers have been keenly watching to see if the new structure will yield the same revenues as previously.

VAT is projected to generate some $1.412bn in revenues for the Gov ernment during the 2022-2023 fiscal year, rep resenting a $300m increase upon the $1.1bn collected in 2021-2022 - itself a 53 per cent jump from $741m in 2020-2021.

“The improved perfor mance is largely attributed to an increase in revenue collection from international trade and transaction taxes ($30.2m), other taxes on goods and services ($30m), and other non-tax revenue ($11.4m),” the Ministry of Finance said of the July results.

“Similarly, July 2022 month-over-month reve nues increased 17.1 percent ($37.8m), largely attributed to a 72.4 percent ($20.6 m) rise in other taxes on goods and services and 23.9 per cent ($20.4m) increase in VAT receipts.” The latter will have been aided by the fact that July’s VAT filings included quarterly regis trants, who did not have to pay such taxes in June.

VAT’s July reduction came after Mr Wilson

previously indicated that collections related to real estate sales would likely increase for the month as many buyers held back from bringing their conveyances forward for stamping in a bid to attract the 2022-2023 Budget’s lower rates.

And, given that 10 per cent VAT is also levied on border imports, it follows that there should have been a proportionate increase that matched the jump in international trade and transaction taxes.

However, tourist stopover and cruise passenger departure taxes also fall under this heading, and given that the latter was still virtually non-existent in July 2021 is is unclear how much of the international trade increase it drove.

The Ministry of Finance’s July performance report was released just hours after Michael Pintard, the Opposition’s leader, sent a formal letter to the Prime Minister complaining about the “tardy” publication of fiscal reports that breaches legally-mandated deadlines set by the Public Financial Management Act.

Mr Pintard argued there was no good excuse for missing these deadlines, given that the July report was supposed to have been released by early September 2022 - one month ago. How ever, Mr Wilson previously told this newspaper that the Ministry of Finance’s dec ades-old reporting systems mean it is simply impossible to produce accurate reports within this timeframe.;

“Section 69 (2 and 3) of the Public Financial Man agement Act provide the statutory deadlines for the submission and publication of monthly budget reports, which must be provided to Cabinet no later than four weeks after the end of the reporting period, and then to be made public no later than one week following that. The exception is the final month of the fiscal year where an eight-week time line is provided,” Mr Pintard wrote.

“Presently, the monthly reports for July 2022 and August 2022 have yet to be published consistent with the legal deadlines. These reports are thus past due. The Ministry of Finance

Royal Caribbean hails $300m port overhaul

ROYAL Caribbean exec utives have hailed Nassau Cruise Port’s $300m trans formation as “one of the finest in the world, compa rable to any cruise port in any destination we visit”.

The praise from the cruise line’s president and chief executive, Michael Bayley, came as Prince George Wharf’s over haul nears completion with a planned grand opening in May 2023. It was the second time in less than a month that executives from Royal Car ibbean, which brings nearly two million guests a year to The Bahamas, visited the site. But this was the first time they were able to get a view from atop the new port’s three-story centre piece – a 30,000 square foot structure of steel and glass that will serve as a welcome centre, and house Immigra tion, Customs, security and administrative offices.

Michael Maura, Nassau Cruise Port’s chief executive and director, said: “Royal Caribbean has been an outstanding

partner throughout this process as we have under taken the development of this port, and doing it right through COVID, the lock down, then the re-opening of the destination where we needed to accommodate ships even as construction was continuing.” Nassau Cruise Port will feature a marketplace designed for all-Bahamian crafts and products, exten sive concrete finger piers and 600-foot long covered walkways where electric vehicles will help disabled guests move easily from the ship to a reception area. There will be dining options, a large amphi theatre and well-organised transient docking for tour boats and ferries. Parking for taxis and other vehicles is being accommodated on adjacent property.

“It’s fantastic to see firsthand the progress the port has made under Michael Maura’s leadership,” said Mr Bayley. “Our guests love cruising to The Baha mas and experiencing the islands’ inviting atmosphere

and culture, and now with the new Nassau Cruise Port their experience will be even greater.”

Royal Caribbean’s Oasisclass Wonder of the Seas will resume voyages to Nassau this December with sailing from Port Canaveral to The Bahamas.

has been habitually late over the last several months in the publication of the monthly and the quarterly reports. We cannot imagine that there is any accepta ble reason for this chronic tardiness.

“When the Govern ment is tardy with these reports, it undermines the credibility of the admin istration and it limits the ability of taxpayers and all interested stakeholders to assess the fiscal perfor mance of the Government

and hold the Government to account.”

The Ministry of Finance, in its statement, added: “Total expenditure contracted by 8.6 percent ($20.7m) com pared to the prior year as activities continued to normalise to pre-COVID trends. COVID-19 extraor dinary spend was reduced on goods and services ($11.8m) and COVID-19 specific social assistance ($14.4m).

“Capital spending declined by $5.7m as several COVID-19 stimulus projects completed. Compared to

the month prior, July 2022 total expenditure decreased 59.5 percent ($321.1m) to $218.9m, largely owing to supplementary budget expenditures for fiscal year 2021-2022 posted in the prior month.

“As a result of the above, government’s fiscal position for July 2022 resulted in a $40.2 million surplus and a modest widening in the net debt position of $4.8m as Government took advantage of continued improvements in fiscal performance to reduce its financing needs.”

ROYAL